NASDAQ$SBRA

Sabra Health Care REIT Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Sabra Health Care REIT's Q2 2021 results were announced, highlighting the intent to exit the Enlivant Joint Venture investment and providing a business update with 2021 guidance.

Sabra Health Care REIT reported a net loss of $(0.61) per diluted common share for the second quarter of 2021. The company announced its intention to exit the Enlivant Joint Venture and provided full-year 2021 guidance. The company's Net Debt to Adjusted EBITDA ratio improved to 4.75x.

  • Net loss per diluted common share was $(0.61).
  • EBITDARM Coverage for Aggregate Acute/Post Acute and Other facilities reported 2.27x, which represents an increase of 0.36x over the second quarter of 2020 and an increase of 0.02x over the first quarter of 2021.
  • Collected 99.8% of forecasted rents from the beginning of the COVID-19 pandemic through July 2021.
  • The company issued 4.9 million shares of common stock under our at-the-market offering program (“ATM Program”) for net proceeds of $85.0 million.

Headline financials

Total Revenue

$153M

Previous: $154M-0.6%
EPS (adj)

$0.41

Previous: $0.45-8.9%
Normalized FFO per share

$0.41

No prior period
AFFO per diluted common share

$0.39

Previous: $0.42-7.1%
Net Debt to Adjusted EBITDA

4.75

Previous: 5-5.0%
Capital Expenditures

-$83.8M

Previous: -$113M+25.7%
Free Cash Flow

-$216M

Previous: -$83.2M-160.1%
Net Income

-$133M

Previous: $29.6M-547.5%
Operating Income

-$19.9M

Previous: $145M-113.7%
Gross Profit

$153M

Previous: $154M-0.6%
Cash & Equivalents

$69.3M

Previous: $28.3M+145.5%
Total Assets

$5.82B

Previous: $6.02B-3.3%
Stock-Based Comp

$2.27M

Previous: $2.38M-4.4%

Revenue & EPS history

Sabra Health Care REIT · Revenue · Quarterly

$153M

Q2 2021-0.6%vs Q2 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Sabra Health Care REIT · $153M total across 3 segments · Q2 2021

  • Rental and related revenues
    $111M-1.7%
  • Resident fees and services
    $39.1M+1.4%
  • Interest and other income
    $3.03M+16.3%

Forward guidance

Sabra expects the following amounts per diluted common share for the year ending December 31, 2021: Net loss: $(0.15) - $(0.13), FFO: $1.53 - $1.55, NFFO: $1.56 - $1.58, AFFO: $1.51 - $1.53, NAFFO: $1.53 - $1.55

Tailwinds

  • Investments of $111.0 million with a weighted average initial cash yield of 8.2%.
  • Normalization of the living and operating environment as vaccines are holding up well against the Delta variant.
  • Balance sheet optionality Sabra has not had before.
  • Operators continue to adhere to health and safety protocols regardless of the abandonment of those protocols in the outside communities.
  • Exiting from Enlivant investment is accretive and de-levering.

Headwinds

  • Senior Housing - Managed average quarterly occupancy: 76.8% - 78.9%.
  • The estimated amounts above do not include any anticipated funds from the Provider Relief Fund for our Senior Housing - Managed communities.
  • The estimated amounts above do not assume a sale of our 49% interest in the Enlivant Joint Venture in 2021.
  • Dispositions and loan repayments of $95.6 million, with associated Annualized Cash NOI of $6.4 million.
  • Capital expenditures in our Senior Housing- Managed portfolio of $11.7 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.5%

Avg return

Earnings day

-0.2%

Avg return

5 days after

-0.4%

Avg return

30 days after

45%

27 / 60 earnings

Positive

+10.4%

Q1 2022

Best reaction

-13.1%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%+0.1%-2.3%
Q3 2025+2.3%+4.2%+11.7%
Q1 2025+1.2%+0.1%-0.2%
Q4 2024-1.0%-0.8%+4.3%
Q3 2024-4.8%-4.1%-4.3%
Q2 2024-0.1%-1.1%+4.7%
Q1 2024-1.7%-1.7%-5.1%
Q4 2023+0.4%+0.4%+6.0%
Q3 2023+0.7%+2.0%+1.6%
Q2 2023+0.8%-0.9%-1.2%
Q1 2023-0.5%+1.7%+1.7%
Q4 2022-4.2%-6.3%-22.0%
Q3 2022-13.1%-3.5%-7.1%
Q2 2022+0.0%+2.9%-4.0%
Q1 2022+10.4%+6.0%+10.4%
Q4 2021-3.9%-0.7%+5.6%
Q3 2021-2.1%-0.1%-11.2%
Q2 2021-3.7%-4.7%-8.7%
Q1 2021-2.2%+0.0%-1.3%
Q4 2020+1.7%-3.6%-0.8%
Q3 2020-4.0%+15.7%+27.6%
Q2 2020+4.4%+7.7%+5.9%
Q1 2020-5.7%-1.6%+35.6%
Q4 2019-3.5%-11.1%-50.1%
Q3 2019+3.3%+0.6%-6.4%
Q2 2019+5.5%+4.5%+8.5%
Q1 2019-1.6%+0.5%-0.5%
Q4 2018-2.7%-9.6%-2.0%
Q3 2018-0.6%-1.4%-12.9%
Q2 2018-0.3%-0.3%+3.4%
Q1 2018+3.3%+2.9%+7.6%
Q4 2017+2.8%+4.8%+0.2%
Q3 2017-1.5%-2.7%-2.7%
Q2 2017+1.6%+0.9%-4.1%
Q1 2017-10.2%-8.8%-14.2%
Q4 2016+0.6%+5.4%+6.7%
Q3 2016-8.9%-7.2%-0.4%
Q2 2016+1.6%+2.4%+6.6%
Q1 2016+4.4%
Q4 2015+8.3%
Q3 2015-2.9%
Q2 2015-4.6%
Q1 2015-6.0%
Q4 2014-0.9%
Q3 2014-0.9%
Q2 2014-2.0%
Q1 2014-2.6%
Q4 2013+0.8%
Q3 2013+4.1%
Q2 2013-7.3%
Q1 2013+2.4%
Q4 2012+0.0%
Q3 2012+2.6%
Q2 2012+3.0%
Q1 2011-4.6%
Q1 2012+2.4%
Q4 2011+5.1%
Q3 2011+7.5%
Q2 2011+3.9%
Q4 2010-6.5%

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