Financial Data and Key Metrics Changes - The normalized FFO per share for Q1 2025 was $0.35, up from $0.34 in Q1 2024, representing a year-over-year increase of 2.9% [13] - The normalized AFFO per share for Q1 2025 was $0.37, compared to $0.35 in Q1 2024, indicating a year-over-year increase of 5.7% [13] - Cash rental income from the triple net portfolio totaled $90 million for the quarter, up from $89 million in Q1 2024 [13] - Cash NOI from the managed senior housing portfolio increased to $24.1 million in Q1 2025 from $19.1 million in Q1 2024, a year-over-year increase of 26.3% [14] Business Line Data and Key Metrics Changes - Skilled nursing and triple net senior housing EBITDARM rent coverage reached 2.19 and 1.41, respectively, with behavioral health coverage at 3.77, marking the highest levels since year-end 2023 [5] - Skilled occupancy increased by 80 basis points sequentially, while the skilled mix improved by 10 basis points [6] - Triple net senior housing occupancy rose by 50 basis points sequentially [7] - The same store managed senior housing portfolio's revenue grew by 6.3% year-over-year, with occupancy increasing from 82.6% in Q1 2024 to 85.4% in Q1 2025 [10] Market Data and Key Metrics Changes - The domestic portfolio occupancy was 83%, gaining 340 basis points year-over-year, while the Canadian portfolio occupancy was 90.9%, adding 140 basis points [10] - RevPAR in the same store portfolio increased by 2.8% year-over-year, with Canadian RevPAR growing by 4.9% [10] - Cash NOI growth in US communities was 14.4% year-over-year, while Canadian communities saw a 24.7% increase [11] Company Strategy and Development Direction - The company is focusing on a busy deal pipeline primarily in senior housing, with over $200 million in awarded deals expected to close this quarter, surpassing the total for all of 2024 [7][8] - The strategy includes entering new relationships with proven operators and maintaining a selective approach to acquisitions [33][56] - The company aims to balance its portfolio between senior housing and skilled nursing, emphasizing the importance of operational recovery and predictable earnings [80][86] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued occupancy growth and potential Medicaid rate increases in the summer, which could enhance coverage [90] - The company remains cautious about the skilled nursing facility (SNF) market due to ongoing uncertainties regarding Medicaid reimbursement [70] - Management believes that the current operating environment will support improved coverage for the foreseeable future, despite potential challenges [90] Other Important Information - The company declared a quarterly dividend of $0.30 per share, representing a payout of 81% of the first quarter normalized AFFO per share [18] - The net debt to adjusted EBITDA ratio improved to 5.19 times as of March 31, 2025, down from 5.27 times at the end of 2024 [16] Q&A Session Summary Question: Update on skilled nursing facility sale - Management confirmed that the expected $50 million skilled nursing facility sale is still on track, although regulatory hurdles have delayed the process [20] Question: Trajectory of RevPOR and expense growth - Management indicated that as occupancy increases, pricing power is expected to improve, leading to potential revenue growth [22][23] Question: Guidance and deal flow - Management reiterated that current acquisitions are not included in guidance until closed, maintaining a conservative approach to projections [28][29] Question: Competition in the transaction market - Management noted a robust pipeline of deals, primarily in senior housing, with private equity firms as frequent sellers [34][37] Question: Genesis exposure and NOI - Management reported that the impact of Genesis on NOI is negligible, with no missed payments and improved operations since subleasing to a trusted operator [50] Question: SNF acquisition attractiveness - Management highlighted challenges in acquiring SNFs, particularly those with financial difficulties, making them less attractive for investment [68] Question: SHOP portfolio occupancy trends - Management expects occupancy to pick up in the second quarter, particularly in Canadian assets, as seasonal factors improve [72] Question: Interest in large portfolios - Management emphasized a commitment to maintaining a simple and predictable strategy, focusing on smaller, manageable deals rather than large portfolios [80][81]

Financial Data and Key Metrics Changes - For Q1 2025, normalized FFO per share was $0.35 and normalized AFFO per share was $0.37, compared to $0.34 and $0.35 in Q1 2024, representing a year-over-year increase of 79% for both metrics [14][15] - Cash rental income from the triple net portfolio totaled $90 million, up from $89 million in Q1 2024, despite the disposal of $115 million of real estate from the portfolio last year [15] - Cash NOI from the managed senior housing portfolio totaled $24.1 million, compared to $19.1 million in Q1 2024, driven by strong occupancy and margin gains [15][12] Business Line Data and Key Metrics Changes - Skilled nursing and triple net senior housing EBITDARM rent coverage reached new highs at 2.19 and 1.41, respectively, with behavioral health coverage at 3.77 [5] - Skilled occupancy increased by 80 basis points sequentially, while triple net senior housing occupancy rose by 50 basis points [6] - Revenue for the same store managed senior housing portfolio grew 6.3% year-over-year, with occupancy at 85.4% compared to 82.6% in Q1 2024 [11] Market Data and Key Metrics Changes - The domestic portfolio occupancy was 83%, gaining 340 basis points year-over-year, while the Canadian portfolio occupancy was 90.9%, adding 140 basis points [11] - RevPAR in the same store portfolio increased by 2.8% year-over-year, with Canadian RevPAR growing by 4.9% [11] - The company noted a robust deal pipeline, with over $200 million in awarded deals, which is more than the total for all of 2024 [7][8] Company Strategy and Development Direction - The company is focusing on internal and external growth opportunities in senior housing, with little new supply expected in the coming years [10] - Management emphasized a commitment to maintaining a balanced portfolio between senior housing and skilled nursing, avoiding large portfolio acquisitions to keep operations predictable [78] - The company is actively using its ATM program to raise equity for funding growth, with a focus on accretive capital [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued occupancy growth and potential Medicaid rate increases in the summer, which could enhance coverage [86] - The company is cautious about the skilled nursing facility (SNF) market due to challenges in structuring leases around underperforming assets [66][68] - Management believes that the current operating environment will allow for improved coverage and revenue growth, despite potential headwinds from provider taxes [85] Other Important Information - The Board of Directors declared a quarterly dividend of $0.30 per share, representing a payout of 81% of the first quarter normalized AFFO per share [19] - The company has ample liquidity of over $1 billion, consisting of unrestricted cash and available borrowings [18] Q&A Session Summary Question: Update on skilled nursing facility sale - Management confirmed that the expected $50 million skilled nursing facility sale is still on track, though regulatory hurdles have delayed the process [21] Question: Trajectory of RevPOR and expense growth - Management expects occupancy to rise, which will allow for increased pricing power, while expenses are anticipated to remain stable [22][23] Question: Guidance on acquisitions and SHOP performance - Management reiterated that acquisitions are not included in current guidance until closed, and reaffirmed expectations for low to mid-teens cash NOI growth [27][28] Question: Insights on transaction market and deal flow - Management noted a robust pipeline of deals, primarily in senior housing, with private equity firms as frequent sellers [31][33] Question: Details on $200 million of awarded deals - All awarded deals are domestic, primarily in the Eastern U.S., with growth potential embedded in the assets [40][41] Question: Changes in underwriting criteria - Management stated that underwriting criteria remain unchanged, focusing on cost of capital and accretive deals [60] Question: Concerns regarding SNF acquisitions - Management highlighted challenges in acquiring SNFs due to financial instability and the difficulty in structuring leases [66][68] Question: Expectations for SHOP occupancy cadence - Management anticipates an increase in occupancy as seasonal factors improve, particularly in Canadian assets [70] Question: Interest in large portfolio acquisitions - Management confirmed a commitment to smaller, more manageable deals to maintain operational simplicity and predictability [78] Question: Medicare reimbursement impacts - Management expressed confidence that Medicare will not be significantly impacted by current government budget discussions [97]

Strategic. Disciplined. Opportunistic. Investor Presentation | May 5, 2025 Disclaimers Forward-Looking Statements This presentation contains "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Any statements that do not relate to historical or current facts or matters are forward-looking statements. These statements may be identified, without limitation, by the use of "expects," "believes," "intends," "should" or comparable terms or the negative thereof. Examples ...

Group 1 - Sabra Healthcare reported revenue of $183.54 million for the quarter ended March 2025, reflecting a 10.1% increase year-over-year [1] - The company's EPS for the quarter was $0.37, significantly up from $0.11 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $181.82 million, resulting in a surprise of +0.95% [1] Group 2 - The company delivered an EPS surprise of +2.78%, with the consensus EPS estimate being $0.36 [1] - Sabra's shares returned +0.8% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3] Group 3 - Interest and other income for the quarter was reported at $10.06 million, exceeding the average estimate of $9.43 million by analysts, representing a +12.5% change year-over-year [4] - Resident fees and services revenue was $77.45 million, slightly below the estimated $77.98 million, but still showing a +17.3% increase compared to the previous year [4] - Rental and related revenues were reported at $96.04 million, compared to the average estimate of $97.02 million, marking a +4.6% year-over-year change [4]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section details the company's financial performance, including statements, management's analysis, market risks, and internal controls [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Total assets slightly decreased to **$5.23 billion** as of March 31, 2025, with Q1 2025 net income rising to **$40.3 million** and operating cash flow increasing to **$80.3 million** [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Real estate investments, net | $4,488,111 | $4,513,734 | | Cash and cash equivalents | $22,653 | $60,468 | | **Total Assets** | **$5,233,198** | **$5,303,679** | | **Liabilities & Equity** | | | | Total liabilities | $2,530,966 | $2,562,391 | | Total equity | $2,702,232 | $2,741,288 | | **Total Liabilities and Equity** | **$5,233,198** | **$5,303,679** | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Income Statement Highlights (in thousands, except per share data) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenues | $183,543 | $166,747 | | Total expenses | $143,082 | $140,205 | | Impairment of real estate | $0 | $3,137 | | **Net income** | **$40,304** | **$26,254** | | **Diluted EPS** | **$0.17** | **$0.11** | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Highlights (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $80,263 | $52,795 | | Net cash used in investing activities | ($16,444) | ($13,224) | | Net cash used in financing activities | ($101,242) | ($20,229) | | **Net (decrease) increase in cash** | **($37,423)** | **$19,342** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies, real estate portfolio composition, debt structure, and equity activities. Key details include a real estate portfolio valued at $4.49 billion, total debt of $2.39 billion, and an active at-the-market (ATM) equity offering program. The company's primary business is owning and financing healthcare real estate, including skilled nursing facilities and senior housing - The company's primary business is acquiring, financing, and owning healthcare-related real estate, which is leased to third-party tenants or operated by third-party managers. The portfolio is mainly comprised of skilled nursing/transitional care facilities and senior housing communities[26](index=26&type=chunk) Real Estate Portfolio by Property Type (as of March 31, 2025) | Property Type | Number of Properties | Net Real Estate Investments (in thousands) | | :--- | :--- | :--- | | Skilled Nursing/Transitional Care | 224 | $2,318,918 | | Senior Housing - Managed | 69 | $1,189,907 | | Senior Housing - Leased | 39 | $411,033 | | Behavioral Health | 17 | $395,122 | | Specialty Hospitals and Other | 15 | $171,271 | | **Total** | **364** | **$4,486,251** | - As of March 31, 2025, future minimum rental payments under non-cancelable operating leases total approximately **$2.79 billion**[52](index=52&type=chunk) Debt Summary (as of March 31, 2025, in thousands) | Debt Type | Net Book Value | | :--- | :--- | | Senior Unsecured Notes | $1,736,213 | | Term Loans, net | $530,194 | | Revolving Credit Facility | $82,684 | | Secured Debt, net | $44,811 | | **Total Debt, Net** | **$2,393,902** | - The company utilizes an at-the-market (ATM) equity offering program. During Q1 2025, it used the forward feature for up to **4.9 million shares** at an initial weighted average price of **$17.32 per share**. As of March 31, 2025, **$297.7 million** remained available under the program[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) - Subsequent to the quarter's end, on May 5, 2025, the board of directors declared a quarterly cash dividend of **$0.30 per share** of common stock[103](index=103&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management highlights a **10% increase** in Q1 2025 total revenues to **$183.5 million**, strong **$1.1 billion** liquidity, and improved AFFO per share despite market challenges [Overview and Market Trends](index=27&type=section&id=Overview%20and%20Market%20Trends) - The company's strategy is to grow and diversify its healthcare real estate portfolio through direct investments, development, and selective asset sales[108](index=108&type=chunk) - Operations are impacted by adverse market conditions, including increased interest rates, labor shortages, and inflation, which negatively affect tenant operating results. However, improvements in occupancy and increased reimbursement rates for the skilled nursing portfolio are encouraging trends[111](index=111&type=chunk)[113](index=113&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Comparison of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | Variance | % Change | | :--- | :--- | :--- | :--- | :--- | | Rental and related revenues | $96,037 | $91,776 | $4,261 | 5% | | Resident fees and services | $77,447 | $66,031 | $11,416 | 17% | | Total Revenues | $183,543 | $166,747 | $16,796 | 10% | | Net Income | $40,304 | $26,254 | $14,050 | 53% | - The **$4.3 million** increase in rental income was driven by a net decrease in non-cash rent write-offs, increased cash revenue from certain leases, and rent escalators, partially offset by property dispositions[121](index=121&type=chunk) - The **$11.4 million** increase in resident fees and services was primarily due to acquisitions and transitions of Senior Housing - Managed communities, as well as increased occupancy and rates[124](index=124&type=chunk) - No real estate impairment was recognized in Q1 2025, compared to a **$3.1 million** impairment in Q1 2024[132](index=132&type=chunk) FFO and AFFO Reconciliation (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $40,304 | $26,254 | | FFO | $85,978 | $74,534 | | AFFO | $88,154 | $81,150 | | FFO per diluted share | $0.36 | $0.32 | | AFFO per diluted share | $0.37 | $0.35 | [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2025, the company had approximately **$1.1 billion** in liquidity, comprising **$22.7 million** in cash, **$917.3 million** available under its Revolving Credit Facility, and **$110.5 million** related to shares outstanding under forward sale agreements[139](index=139&type=chunk) - Net cash from operating activities was **$80.3 million** in Q1 2025, a significant increase from **$52.8 million** in Q1 2024, primarily due to completed investment activity and timing of collections[146](index=146&type=chunk)[24](index=24&type=chunk) - Net cash used in financing activities was **$101.2 million**, mainly consisting of **$71.4 million** in dividend payments and **$23.9 million** in net repayments on the Revolving Credit Facility[148](index=148&type=chunk) - As of March 31, 2025, the company has a commitment for future capital expenditures of approximately **$14 million** related to its triple-net leased facilities[155](index=155&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's quantitative and qualitative market risk disclosures from the 2024 Annual Report on Form 10-K - There have been no material changes to the market risk disclosures previously reported in the 2024 Annual Report on Form 10-K[170](index=170&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls and procedures as of March 31, 2025, with no material changes in internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[171](index=171&type=chunk) - No changes occurred in the internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, these controls[172](index=172&type=chunk) [PART II. OTHER INFORMATION](index=38&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section addresses legal proceedings, updated risk factors, additional disclosures, and filed exhibits [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company and its subsidiaries are not party to any material legal proceedings - The company is not a party to any material legal proceedings, although it may be involved in ordinary course of business litigation from time to time[174](index=174&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred in the company's risk factors from those disclosed in the 2024 Annual Report on Form 10-K - There have been no material changes in the company's risk factors from those previously disclosed in the 2024 Annual Report on Form 10-K[175](index=175&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - None[176](index=176&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, material contracts, and required certifications - The exhibits include certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, as well as XBRL data files[177](index=177&type=chunk)

[Reconciliations of Non-GAAP Financial Measures](index=1&type=section&id=Reconciliations%20of%20Non-GAAP%20Financial%20Measures) This section provides reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures [FFO, Normalized FFO, AFFO and Normalized AFFO](index=2&type=section&id=FFO%2C%20Normalized%20FFO%2C%20AFFO%20and%20Normalized%20AFFO) This section reconciles Net Income to key non-GAAP REIT metrics, showing significant year-over-year growth in FFO and AFFO per share Reconciliation of Net Income to FFO and AFFO (Q1 2025 vs Q1 2024) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | **Net income** | **$40,304** | **$26,254** | | Add: Depreciation and amortization | 45,674 | 45,143 | | Add: Impairment of real estate | — | 3,137 | | **FFO** | **$85,978** | **$74,534** | | Normalizing items | (737) | 3,905 | | **Normalized FFO** | **$85,241** | **$78,439** | | **AFFO** | **$88,154** | **$81,150** | | Normalizing items | 84 | 1,106 | | **Normalized AFFO** | **$88,238** | **$82,256** | Per Share Metrics (Q1 2025 vs Q1 2024) | Amounts per diluted common share: | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $0.17 | $0.11 | | FFO | $0.36 | $0.32 | | Normalized FFO | $0.35 | $0.34 | | AFFO | $0.37 | $0.35 | | Normalized AFFO | $0.37 | $0.35 | [EBITDA, Adjusted EBITDA, and Net Debt](index=4&type=section&id=EBITDA%2C%20Adjusted%20EBITDA%2C%20and%20Net%20Debt) This section details the calculation of EBITDA, Adjusted EBITDA, and Net Debt, reporting a Net Debt to Adjusted EBITDA ratio of **5.19x** as of March 31, 2025 - The Net Debt to Adjusted EBITDA ratio was **5.19x** as of March 31, 2025[6](index=6&type=chunk) EBITDA and Net Debt Calculation (as of March 31, 2025) | Metric | Amount (in thousands) | | :--- | :--- | | Net income | $40,304 | | EBITDA | $111,311 | | Adjusted EBITDA | $115,834 | | **Annualized Adjusted EBITDA, as adjusted** | **$460,392** | | Consolidated Debt | $2,412,782 | | Cash and cash equivalents | ($22,653) | | **Net Debt** | **$2,390,129** | [Consolidated Statements of Income - Supplemental Information](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20Supplemental%20Information) This section provides a supplemental breakdown of rental and related revenues, showing an increase to **$96.0 million** in Q1 2025 Rental and Related Revenues (in thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | Cash rental income | $90,071 | $89,036 | | Straight-line rental income | $723 | $1,119 | | **Rental and related revenues** | **$96,037** | **$91,776** | [Senior Housing - Managed Revenues and Cash NOI](index=7&type=section&id=Senior%20Housing%20-%20Managed%20Revenues%20and%20Cash%20NOI) This section presents a five-quarter trend for Senior Housing - Managed portfolio, showing strong year-over-year growth in Same Store Cash NOI Same Store Cash Net Operating Income Trend (in thousands) | Quarter Ended | Same store Cash Net Operating Income | | :--- | :--- | | March 31, 2024 | $17,676 | | June 30, 2024 | $19,591 | | September 30, 2024 | $20,117 | | December 31, 2024 | $20,638 | | March 31, 2025 | $20,668 | - Same store resident fees and services have shown consistent quarterly growth over the past five quarters, rising from **$64.4 million** in Q1 2024 to **$68.4 million** in Q1 2025[11](index=11&type=chunk) [Cash NOI by Property Type](index=9&type=section&id=Cash%20NOI%2C%20Annualized%20Cash%20NOI%20and%20Annualized%20Cash%20NOI%2C%20as%20adjusted%20by%20Property%20Type) This table breaks down Annualized Cash NOI by property type, with Skilled Nursing/Transitional Care as the largest contributor Annualized Cash NOI, as adjusted by Property Type (Q1 2025, in thousands) | Property Type | Annualized Cash NOI, as adjusted | | :--- | :--- | | Skilled Nursing/Transitional Care | $253,953 | | Senior Housing | $148,289 | | Behavioral Health | $66,269 | | Specialty Hospitals and Other | $23,348 | | **Total** | **$491,859** | [Annualized Cash NOI by Payor Source](index=10&type=section&id=Annualized%20Cash%20NOI%20by%20Payor%20Source) This section reconciles Net Income to Annualized Cash NOI by payor source, identifying Non-Private Payors as the largest contributor Annualized Cash NOI by Payor Source (Q1 2025, in thousands) | Payor Source | Cash Net Operating Income | Annualized Cash Net Operating Income | | :--- | :--- | :--- | | Private Payors | $51,010 | $206,030 | | Non-Private Payors | $63,183 | $248,983 | | Other | $10,063 | $36,846 | | **Total** | **$124,256** | **$491,859** | [Annualized Cash NOI by Relationship](index=11&type=section&id=Annualized%20Cash%20NOI%20by%20Relationship) This table details Annualized Cash NOI by major tenant and operator relationships, with 'All Other Relationships' as the largest category Top Relationships by Annualized Cash NOI (Q1 2025, in thousands) | Relationship | Annualized Cash Net Operating Income | | :--- | :--- | | Ensign Group | $41,596 | | Signature Healthcare | $40,433 | | Avamere Family of Companies | $40,364 | | Signature Behavioral | $32,900 | | Recovery Centers of America | $27,465 | | The McGuire Group | $18,009 | | All Other Relationships | $291,092 | | **Total** | **$491,859** | [Reporting Definitions](index=12&type=section&id=REPORTING%20DEFINITIONS) This section provides official definitions for non-GAAP financial measures and other key terms used in the report [Key Non-GAAP Definitions](index=12&type=section&id=Key%20Non-GAAP%20Definitions) This section defines primary non-GAAP metrics including FFO, AFFO, Adjusted EBITDA, and Cash NOI, outlining their calculation methodologies - Funds From Operations (FFO) is a Nareit-defined measure calculated as net income excluding gains/losses from real estate dispositions, plus real estate depreciation and amortization and impairment charges[29](index=29&type=chunk) - Adjusted Funds from Operations (AFFO) is FFO further adjusted for non-cash items such as stock-based compensation, non-cash rental revenues, non-cash interest, and provision for loan losses[29](index=29&type=chunk) - Adjusted EBITDA is defined as EBITDA excluding merger-related costs, stock-based compensation, and loan loss reserves[23](index=23&type=chunk) - Cash Net Operating Income (Cash NOI) is defined as total revenues less operating expenses and non-cash revenues and expenses, considered a key supplemental measure of an investment's operating performance[27](index=27&type=chunk)

Tariff uncertainty is still lingering over the stock market. As we speak, the Dow Jones Index ( DJI ) is down over 1,000 points, while the S&P ( SP500 ) is down more than 100 (points).Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran w ...

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a free two-week trial for potential investors to explore top ideas across exclusive income-focused portfolios [1] Group 2 - The analyst has over 14 years of investment experience and an MBA in Finance, focusing on defensive stocks with a medium- to long-term investment horizon [2] - The analyst holds a beneficial long position in SBRA shares through stock ownership, options, or other derivatives [3]

Financial Data and Key Metrics Changes - For Q4 2024, normalized FFO per share was $0.35 and normalized AFFO per share was $0.36, with normalized AFFO totaling $86.9 million, consistent with Q3 [26][28] - Year-over-year normalized AFFO per share growth was 7%, with full-year 2024 normalized FFO per share at $1.39 and normalized AFFO per share at $1.44 [28][29] - The net debt to adjusted EBITDA ratio improved to 5.27% as of December 31, 2024, a decrease from the previous quarter and nearly half a turn from the previous year [33] Business Line Data and Key Metrics Changes - The senior housing and skilled portfolio showed strong performance, with SHOP same-store occupancy up 80 basis points sequentially and cash NOI at 17.9% for the quarter [9][10] - Managed senior housing portfolio revenue grew 3.5% sequentially, with cash NOI growth of 5.4% and margin expansion of 50 basis points [18] - Cash NOI from the managed senior housing portfolio increased to $24.1 million, driven by same-store growth and a new property acquisition [27] Market Data and Key Metrics Changes - The skilled occupancy rate increased by 60 basis points sequentially, with EBITDARM coverage reaching an all-time high of 2.09% [10] - The Canadian communities within the same-store portfolio saw revenue growth of 10.6% year-over-year, while domestic portfolio occupancy grew by 2.8% [20][21] - Total expenses for the same-store portfolio rose 3.4% year-over-year, with labor costs increasing by 2.1% [21][22] Company Strategy and Development Direction - The company plans to build upon its successful 2024 strategy, anticipating a higher volume of deals in 2025, particularly in the skilled nursing space [11][12] - The focus will be on acquiring newer, nearly stabilized senior housing communities that offer care to residents, with a strategic shift towards increasing SHOP exposure [24][74] - The company is optimistic about its ability to withstand potential Medicaid cuts due to strong portfolio performance and robust lobbying efforts [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the political environment's impact on business, noting historical protections for the elderly population regarding Medicaid [13][14] - The company expects revenue growth to continue outpacing expense growth, leading to ongoing cash NOI growth [23] - Management highlighted a robust acquisition pipeline, with many opportunities arising from private equity firms looking to exit investments [52][54] Other Important Information - A quarterly cash dividend of $0.30 per share was declared, representing a payout of 83% of the fourth quarter normalized AFFO per share [34] - The company has ample liquidity of $980 million, consisting of cash and available borrowings under its revolving credit facility [33] Q&A Session Summary Question: What are your thoughts on the pacing of occupancy in the senior housing space for 2025? - Management noted that operators are balancing rate increases with occupancy growth, making it difficult to predict exact occupancy trends [36][40] Question: Are you seeing any impacts in pricing for skilled nursing facilities due to the current environment? - The transaction market for skilled nursing is robust, with significant competition from strategic buyers [41][43] Question: What has changed in the acquisition pipeline that gives you confidence for 2025? - The company is seeing higher deal volume and improved cost of capital, allowing for more favorable acquisition opportunities [48][50] Question: How do you expect cash NOI growth to trend in 2025? - Cash NOI growth for the same-store managed senior housing portfolio is expected to be in the low to mid-teens, with a conservative approach to growth assumptions [31][58] Question: Can you elaborate on the strategies operators are implementing to mitigate costs? - Operators have embraced digital marketing for recruitment and revamped onboarding processes to improve employee retention [66] Question: What is the current size of the cash basis tenant base? - The cash basis tenant pool is less than 5% of total NOI, with some sales in the quarter related to cash basis tenants [138][140]

Core Insights - Sabra Healthcare (SBRA) reported revenue of $182.35 million for Q4 2024, marking an 11.6% year-over-year increase, with EPS of $0.36 compared to $0.07 a year ago [1] - The reported revenue fell slightly short of the Zacks Consensus Estimate of $183.22 million, resulting in a surprise of -0.48%, while the EPS met the consensus estimate [1] Revenue Breakdown - Interest and other income amounted to $9.41 million, slightly below the average estimate of $9.71 million, reflecting a year-over-year increase of 3.4% [4] - Resident fees and services generated $76.87 million, exceeding the estimated $75.05 million, representing a significant year-over-year increase of 25.5% [4] - Rental and related revenues were reported at $96.07 million, slightly below the average estimate of $96.34 million, with a year-over-year change of 3.3% [4] Stock Performance - Over the past month, Sabra's shares have returned -3.5%, contrasting with the Zacks S&P 500 composite's increase of 2.4% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]