NASDAQ$SBRA

Sabra Health Care REIT Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Sabra Health Care REIT's Q3 2022 results were announced, featuring a net loss, but also highlighting normalized FFO and AFFO. The company also provided a business update.

Sabra Health Care REIT reported a net loss for Q3 2022, but also reported positive normalized FFO and AFFO. The company is transitioning the North American portfolio to Ensign and Avamere, and is making progress on additional dispositions.

  • Net Loss: $(0.22) per share
  • FFO: $0.28 per share
  • Normalized FFO: $0.36 per share
  • AFFO: $0.34 per share

Headline financials

Total Revenue

$141M

Previous: $129M+9.5%
EPS (adj)

$0.36

Previous: $0.38-5.3%
FFO per diluted common share

$0.28

No prior period
Normalized FFO per share

$0.36

Previous: $0.38-5.3%
AFFO per diluted common share

$0.34

No prior period
Normalized AFFO per share

$0.35

Previous: $0.38-7.9%
Net Debt to Adjusted EBITDA

5.5

Previous: 4.81+14.3%
Capital Expenditures

-$118M

Previous: -$91.4M-28.9%
Free Cash Flow

-$168M

Previous: -$81.2M-106.8%
Net Income

-$50.1M

Previous: $10.2M-589.7%
Operating Income

$63.4M

Previous: -$44.4M+242.9%
Gross Profit

$141M

Previous: $129M+9.5%
Cash & Equivalents

$26.3M

Previous: $546M-95.2%
Total Assets

$5.84B

Previous: $6.21B-5.9%
Stock-Based Comp

$2.12M

Previous: $2.43M-12.8%

Revenue & EPS history

Sabra Health Care REIT · Revenue · Quarterly

$141M

Q3 2022+9.5%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Sabra Health Care REIT · $141M total across 3 segments · Q3 2022

  • Rental and related revenues
    $84.2M-1.4%
  • Resident fees and services
    $47.6M+19.6%
  • Interest and other income
    $8.94M+162.6%

Forward guidance

Sabra expects to reduce leverage closer to its 5.0x long-term leverage target by the end of the year with proceeds from disposition activity. The transition of facilities to Ensign and Avamere is expected to be completed by February 1, 2023.

Tailwinds

  • The transition of the North American portfolio should enhance the durability of Sabra’s earnings stream going forward.
  • Sabra appreciates the extension of the Public Health Emergency.
  • The company is heartened by the continued, albeit slow, improvement in the labor market.
  • The asset sales are proceeding as expected.
  • The company continues to receive interest in acquiring additional skilled nursing assets.

Headwinds

  • The recovery in both the skilled and senior housing asset classes has been slower than expected.
  • The healthcare industry continues to navigate the challenging operating environment.
  • The labor market has been a major barrier to a quicker recovery.
  • Net Loss: $(0.22) per share
  • The transition of these facilities to Ensign operating companies and Avamere is expected to be completed by February 1, 2023 and remains subject to the completion of certain regulatory approvals and other closing conditions.

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 Q3 2022

Historical avgQ3 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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