NASDAQ$SBRA

Sabra Health Care REIT Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Sabra Health Care REIT's financial performance and business activities in the second quarter of 2022 were reported, including key metrics like net income, FFO, and strategic portfolio adjustments.

Sabra Health Care REIT reported a net income of $0.07 per diluted common share, FFO of $0.36, Normalized FFO of $0.39, AFFO of $0.36, and Normalized AFFO of $0.38 for the second quarter of 2022. The company focused on strategic portfolio adjustments, including acquisitions and dispositions, and is working towards its long-term leverage target.

  • Net Income was $0.07 per diluted common share.
  • FFO was $0.36 per diluted common share.
  • Completed $264.9 million in investment activity with a weighted average initial cash yield of 6.9%.
  • Net Debt to Adjusted EBITDA ratio was 5.44x as of June 30, 2022, with plans to reduce it to around 5.0x by year-end.

Headline financials

Total Revenue

$156M

Previous: $153M+2.0%
EPS (adj)

$0.39

Previous: $0.41-4.9%
FFO per diluted common share

$0.36

No prior period
Normalized FFO per share

$0.39

Previous: $0.41-4.9%
AFFO per diluted common share

$0.36

Previous: $0.39-7.7%
Normalized AFFO per share

$0.38

No prior period
Net Debt to Adjusted EBITDA

5.44

Previous: 4.75+14.5%
Capital Expenditures

-$40.1M

Previous: -$83.8M+52.2%
Free Cash Flow

-$23.3M

Previous: -$216M+89.3%
Net Income

$16.8M

Previous: -$133M+112.7%
Operating Income

$134M

Previous: -$19.9M+771.0%
Gross Profit

$156M

Previous: $153M+2.0%
Cash & Equivalents

$67.2M

Previous: $69.3M-3.2%
Total Assets

$5.96B

Previous: $5.82B+2.4%
Stock-Based Comp

$794K

Previous: $2.27M-65.0%

Revenue & EPS history

Sabra Health Care REIT · Revenue · Quarterly

$156M

Q2 2022+2%vs Q2 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Sabra Health Care REIT · $156M total across 3 segments · Q2 2022

  • Rental and related revenues
    $103M-6.9%
  • Resident fees and services
    $44.1M+12.8%
  • Interest and other income
    $8.65M+185.5%

Forward guidance

The company anticipates dispositions, primarily of skilled nursing facilities, which will result in a more diversified portfolio. They are comfortable with temporarily elevated leverage and do not foresee needing to access capital markets for the rest of 2022. The company is pleased with its behavioral health expansion and the adaptive reuse of existing assets.

Tailwinds

  • Occupancy is increasing as the company moves from pandemic to endemic phase.
  • Hiring has improved, and agency utilization is decreasing.
  • Portfolio continues to be resilient with cash collections remaining in line.
  • Anticipated dispositions will lead to a more diversified portfolio.
  • Expansion in behavioral health through adaptive reuse of existing assets is creating value.

Headwinds

  • Occupancy is still hampered by labor shortages.
  • Leverage is temporarily elevated.
  • Agency utilization is still high.
  • Skilled nursing facilities are being disposed.
  • Labor shortages still exist.

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 2022

Historical avgQ2 2022

-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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