Core Insights - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1][2] - The investment strategy emphasizes dividend value stocks, which are characterized by strong recurring cash flows that can support dividends even in challenging market conditions [2] Investment Strategy - The investment group targets high-yield, dividend growth opportunities across various asset classes, including REITs, ETFs, closed-end funds, preferred stocks, and dividend champions [2] - Portfolios are designed to achieve dividend yields of up to 10%, catering to investors seeking dependable monthly income [2]

分组1 - Sabra Health Care REIT, Inc. has a dividend yield of 6.3% and is supported by favorable demographics, with no threat from AI [1] - Wells Fargo analyst John Kilichowski maintained an Overweight rating on Sabra Health Care and raised the price target from $20 to $21 [1] - Apollo Global Management, Inc. was upgraded from Equal-Weight to Overweight by Morgan Stanley analyst Michael Cyprys, with a price target increase from $151 to $180 [2] 分组2 - Spotify Technology S.A. reported third-quarter 2025 earnings of $3.83 per share, exceeding the analyst consensus estimate of $1.87 [3] - Spotify's revenue reached $4.99 billion, a 7% year-over-year increase, surpassing projections of $4.92 billion [3] 分组3 - Sabra Health Care shares fell 1.6% to close at $19.00 [5] - Apollo Global Management gained 3.6% to settle at $149.08 [5] - iShares Russell 1000 Value ETF gained 1.4% [5] - Spotify jumped 3.4% to settle at $609.41 [5]

Financial Data and Key Metrics Changes - For Q3 2025, normalized FFO per share was $0.36 and normalized AFFO per share was $0.38, representing a year-to-date increase of 5% and 4% respectively over the same period in 2024 [13][17] - Cash rental income from the triple-net portfolio decreased by $3.5 million from the previous quarter, while cash NOI from the managed senior housing portfolio increased by $4.7 million, resulting in a net sequential increase of $1.3 million [14][15] - The net debt-to-adjusted EBITDA ratio was 4.96 times as of September 30, 2025, a decrease of 0.04 times from June 30, 2025 [19][20] Business Line Data and Key Metrics Changes - The managed senior housing portfolio contributed nearly 26% of total annualized cash NOI, with cash NOI growth of 15.9% excluding 16 ex-Holiday properties [6][8] - The same store managed senior housing portfolio saw revenue grow by 5.4% year over year, with occupancy increasing by 110 basis points to 86% [11][12] - Cash and NOI for the same-store managed senior housing portfolio increased by 13.3% year over year, with Canadian communities showing a 20.2% increase [12][18] Market Data and Key Metrics Changes - Occupancy in the Canadian portfolio was up 150 basis points to 93.1%, marking the sixth consecutive quarter where occupancy has been above 90% [11] - The overall managed portfolio's occupancy increased by 60 basis points to 86.8%, with RevPAR rising 4.3% sequentially [10][11] - The regulatory environment for skilled nursing remains stable, with skilled exposure dropping below 50% for the first time [7][8] Company Strategy and Development Direction - The company aims to increase its SHOP exposure from 26% to 40%, reflecting a strategic shift towards senior housing as a stronger driver of earnings growth [6][7] - The investment target was originally set at $400 million-$500 million but is now expected to exceed $500 million, indicating a robust acquisition pipeline [7][9] - The company is focused on maintaining a balanced portfolio between skilled nursing and senior housing, with a preference for newer assets that are geared towards future demand [8][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability and contribution of the SHOP portfolio, with expectations for continued positive momentum in the coming quarters [9][28] - The company anticipates that the current supply-demand equation in senior housing will remain favorable for some time due to a lull in new development [10][73] - Management noted that the dynamics of the market are different from previous years, with strong demographic trends supporting growth in senior housing [65][68] Other Important Information - The company declared a quarterly cash dividend of $0.30 per share, representing a payout of 79% of the third-quarter normalized AFFO per share [21][22] - The company has ample liquidity of approximately $1.1 billion, consisting of unrestricted cash and available borrowings [21][20] Q&A Session Summary Question: Guidance maintenance despite strong core performance - Management indicated that most investments closing this year will have a muted impact on 2025 performance, with expectations for their contribution to 2026 [24][25] Question: Core SHOP portfolio metrics excluding Holiday - Management noted that same store NOI was impacted by Holiday, but other metrics remained positive, with occupancy for non-Holiday assets performing better [26][29] Question: Total portfolio occupancy and recent SHOP acquisitions - Management did not disclose total portfolio occupancy but indicated that non-same store assets are largely in line with the same store pool [32][33] Question: Pricing power in targeted markets - Management highlighted that Canadian assets above 90% occupancy have seen rate growth over 5%, suggesting potential for similar trends in the domestic portfolio [34][35] Question: Holiday portfolio improvement and future growth - Management confirmed that operators have stabilized labor in the Holiday portfolio, which is expected to contribute positively to overall growth [39][41] Question: Underwriting and cap rates - Management stated that current investments are yielding between 7% and 8%, with expected mid-single digit annual earnings growth [42][43] Question: SHOP pipeline skew between IL and AL - Management noted a heavier weighting towards AL memory care than IL in the current pipeline [76] Question: Appetite for single idea or opco investments - Management expressed no appetite for pursuing single idea or opco investments, focusing instead on senior housing and skilled nursing [55][56] Question: U.S. versus Canada split for SHOP - The current split is 70 total same-store assets, with 25 in Canada, and management sees growth potential in Canada despite pricing challenges [61][58]

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Financial Performance & Guidance - The company provides 2025 guidance for Net Income between $0.655 and $0.665 per diluted common share[18] - The company provides 2025 guidance for Normalized AFFO between $1.495 and $1.505 per diluted common share[18] - The midpoint of NAFFO guidance implies a 4% year-over-year growth[19] Portfolio & Operations - As of September 30, 2025, the company has 397 investments and 60 relationships[43] - As of September 30, 2025, the weighted average remaining lease term is 7 years[43] - As of September 30, 2025, Skilled Nursing/Transitional Care represents 48.9% of the asset class concentration[47] - As of September 30, 2025, Senior Housing - Managed represents 25.9% of the asset class concentration[47] - As of September 30, 2025, Behavioral Health represents 13.1% of the asset class concentration[47] Capital Structure & Valuation - As of September 30, 2025, the company's consolidated enterprise value is $6.9 billion[66] - As of September 30, 2025, common equity value represents 65% of the consolidated enterprise value[66] - As of September 30, 2025, secured debt represents 1% of the consolidated enterprise value[66]

Core Insights - Sabra Healthcare (SBRA) reported revenue of $190.04 million for Q3 2025, marking a year-over-year increase of 6.8% and an EPS of $0.38, up from $0.13 a year ago, but fell short of the Zacks Consensus Estimate of $192.12 million by -1.08% [1] Financial Performance - Rental and related revenues were reported at $85.35 million, which is -9.7% lower than the estimated $97.66 million [4] - Resident fees and services generated $92.02 million, exceeding the average estimate of $81.13 million, reflecting a year-over-year increase of +24.8% [4] - Interest and other income amounted to $12.67 million, surpassing the estimated $10.21 million, with a year-over-year change of +30.6% [4] - Net Earnings Per Share (Diluted) were reported at $0.09, below the average estimate of $0.19 [4] Market Performance - Over the past month, Sabra's shares returned -0.2%, while the Zacks S&P 500 composite increased by +1% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Financial Performance - Sabra Healthcare reported quarterly funds from operations (FFO) of $0.38 per share, matching the Zacks Consensus Estimate and showing an increase from $0.37 per share a year ago [1] - The company posted revenues of $190.04 million for the quarter ended September 2025, which was 1.08% below the Zacks Consensus Estimate, compared to $178 million in the same quarter last year [2] - Over the last four quarters, Sabra has surpassed consensus FFO estimates two times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Sabra shares have increased by approximately 3.8% since the beginning of the year, while the S&P 500 has gained 15.1% [3] - The future stock price movement will largely depend on management's commentary during the earnings call and the company's FFO outlook [3][4] - The current consensus FFO estimate for the upcoming quarter is $0.38 on revenues of $195.79 million, and for the current fiscal year, it is $1.50 on revenues of $760.6 million [7] Industry Context - The REIT and Equity Trust - Other industry, to which Sabra belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which can impact Sabra's stock performance [5][6]

Investment Portfolio - As of September 30, 2025, the investment portfolio consisted of 363 real estate properties held for investment, down from 373 properties as of September 30, 2024[133]. - The company expects to continue diversifying its investment portfolio by tenant, facility type, and geography within the healthcare sector[121]. - The company’s portfolio consisted of 363 real estate properties held for investment, diversified across the U.S. and Canada[203]. Revenue and Income - Rental and related revenues for the three months ended September 30, 2025, were $85.4 million, a decrease of 10% compared to $94.6 million for the same period in 2024[134]. - Resident fees and services increased by 25% to $92.0 million for the three months ended September 30, 2025, compared to $73.7 million for the same period in 2024[138]. - Interest and other income rose by 31% to $12.7 million for the three months ended September 30, 2025, compared to $9.7 million for the same period in 2024[139]. - Rental and related revenues for the nine months ended September 30, 2025, were $281.2 million, down from $285.4 million in 2024, reflecting a $4.2 million decrease attributed to revenue write-offs and property disposals[154]. - Resident fees and services increased to $248.4 million for the nine months ended September 30, 2025, compared to $207.7 million in 2024, marking a $40.7 million increase due to new acquisitions and increased occupancy[156]. - Interest and other income rose to $33.1 million for the nine months ended September 30, 2025, up from $27.7 million in 2024, reflecting a $5.3 million increase driven by lease termination income and late fees[157]. Expenses - Depreciation and amortization expense increased to $48.5 million for the three months ended September 30, 2025, up from $42.7 million in the same period of 2024, reflecting a net increase of $5.8 million[140]. - Senior Housing - Managed portfolio operating expenses rose to $65.9 million for the three months ended September 30, 2025, an increase of $11.7 million from $54.2 million in 2024, driven by acquisitions and increased occupancy[143]. - General and administrative expenses were $12.6 million for the three months ended September 30, 2025, slightly up from $12.4 million in 2024, mainly due to increased legal and professional fees[145]. - Senior Housing - Managed portfolio operating expenses increased by $25.5 million to $179.8 million for the nine months ended September 30, 2025, compared to $154.3 million for the same period in 2024[161]. - General and administrative expenses rose by $0.8 million to $37.8 million for the nine months ended September 30, 2025, from $37.0 million in 2024, primarily due to increased compensation and legal fees[162]. Impairment and Gains - Impairment of real estate recognized was $6.7 million for the nine months ended September 30, 2025, down from $18.5 million in 2024, indicating a $11.8 million decrease[158]. - A net gain of $5.5 million was recognized from the sale of real estate during the nine months ended September 30, 2025, in contrast to a net loss of $4.0 million in 2024[167]. - The company reported a net loss of $4.4 million on sales of real estate for the three months ended September 30, 2025, compared to a net loss of $5.7 million in the same period of 2024[150]. Debt and Financing - The company redeemed all $500.0 million of 5.125% senior unsecured notes due 2026 on July 31, 2025[130]. - The company recognized a $1.2 million loss on extinguishment of debt during the nine months ended September 30, 2025, while no loss was recorded in the same period of 2024[165]. - The company established an At-The-Market Common Stock Offering Program with a gross sales price of up to $750.0 million on August 5, 2025[131]. - The company expects to finance future investments in properties using proceeds from the ATM Program, among other sources[181]. Cash Flow and Liquidity - As of September 30, 2025, the company had approximately $1.1 billion in liquidity, including $200.6 million in cash and cash equivalents and $717.8 million available under its Revolving Credit Facility[174]. - The company utilized the forward feature of the Prior ATM Program to sell 15.3 million shares at an initial weighted average price of $17.69 per share, resulting in net proceeds of $194.9 million for the nine months ended September 30, 2025[177]. - Net cash used in investing activities was $261.4 million, including $301.6 million for the acquisition of seven facilities and $24.2 million for additions to real estate[185]. - The company paid dividends of $214.7 million during the nine months ended September 30, 2025, with a quarterly cash dividend of $0.30 per share declared on November 5, 2025[199]. - As of September 30, 2025, the company had net cash provided by operating activities of $261.2 million, primarily from rental payments and resident fees[184]. Market Conditions and Regulations - Economic conditions, including increases in interest rates and inflation, are expected to impact the company's operations and financial position[124]. - On July 31, 2025, CMS announced a 3.2% estimated net increase in Medicare rates for skilled nursing facilities for fiscal year 2026, effective October 1, 2025[208]. - The estimated net increase in Medicare rates for skilled nursing facilities for fiscal year 2025 was 4.2%, effective October 1, 2024[207]. - The Minimum Staffing Standards were vacated by a federal judge on April 7, 2025, and a 10-year moratorium on enforcement was signed into law on July 4, 2025[206]. - The Assessment Requirements for long-term care facilities remain in effect, which may exacerbate staffing challenges[206]. - No tenant relationship represented 10% or more of the company's total revenues for the three and nine months ended September 30, 2025[204]. - There have been no material changes to the quantitative and qualitative disclosures about market risk since the 2024 Annual Report[209].

Financial Performance - The company reported a net income attributable to Sabra Health Care REIT, Inc. of $22.538 million for the three months ended September 30, 2025, compared to $29.788 million in the same period of 2024[7]. - Net income for the three months ended September 30, 2025, was $22,517, a decrease from $65,542 in the previous quarter, reflecting a decline of 65.6%[14]. - Net income for the nine months ended September 30, 2025, was $128.363 million, with a loss of $109.972 million attributed to corporate expenses[20]. - Net income for the nine months ended September 30, 2025, was $128.363 million, with a loss of $109.972 million in corporate adjustments[25]. Cash Flow and Income Metrics - FFO attributable to Sabra Health Care REIT, Inc. for the nine months ended September 30, 2025, was $271.010 million, an increase from $236.453 million in the same period of 2024[7]. - Cash rental income for the three months ended September 30, 2025, was $88.946 million, a decrease from $91.829 million in the same period of 2024[12]. - Cash Net Operating Income - pro rata for the three months ended September 30, 2025, was $22,271, a decrease from $22,806 in the previous quarter, showing a decline of 2.3%[14]. - Cash Net Operating Income - pro rata reached $383.709 million, reflecting adjustments for non-cash revenue and expenses[22]. - Cash Net Operating Income (Cash NOI) for the nine months was $383.709 million, reflecting a pro rata Cash NOI of $229.601 million[25]. - Annualized Cash Net Operating Income (Annualized Cash NOI) reached $521.999 million, with annualizing adjustments totaling $138.290 million[25]. Operational Metrics - The company’s Adjusted EBITDA for the three months ended September 30, 2025, was $121.672 million, with an annualized figure of $486.688 million[9]. - Total Net Operating Income (NOI) consolidated was $382.990 million, with $154.444 million from private payors and $195.479 million from non-private payors[22]. - Net Operating Income - consolidated for the three months ended September 30, 2025, was $30,105, an increase from $25,294 in the previous quarter, representing a growth of 19.0%[14]. - Total Net Operating Income (NOI) for the period was $382.990 million, with a pro rata NOI of $382.951 million[25]. Expenses and Costs - The company anticipates general and administrative expenses of approximately $50 million for 2025, which includes $11 million of stock-based compensation expense[5]. - Depreciation and amortization for the three months ended September 30, 2025, was $19,989, an increase from $14,372 in the previous quarter, representing a growth of 39.4%[14]. - Depreciation and amortization expenses totaled $135.591 million, impacting overall net income[20]. - Interest expenses totaled $83.549 million, contributing to the overall financial burden[20]. - General and administrative expenses were reported at $37.802 million, highlighting operational costs[20]. Future Projections - The company expects 2025 net income per diluted common share to be between $0.655 and $0.665, with normalized FFO attributable to common stockholders projected between $1.455 and $1.465[3]. - The company anticipates full-year average same-store Cash NOI growth in the mid-teens percentage range for the Senior Housing - Managed portfolio[5]. - The weighted average share count for Normalized FFO is expected to be approximately 244.7 million shares[5]. Joint Ventures and Other Income - Income from unconsolidated joint ventures for the three months ended September 30, 2025, was $4,034, an increase from $3,713 in the previous quarter, reflecting a growth of 8.6%[17]. - The company’s share of unconsolidated joint ventures' net operating income was $10.949 million, contributing to overall performance metrics[20]. - The company’s share of unconsolidated joint ventures' Net Operating Income was $10.949 million, contributing to overall performance[25]. Real Estate and Market Challenges - The company recorded a net gain on sales of real estate amounting to $(5.544) million, reflecting challenges in the real estate market[20]. - Impairment of real estate was noted at $6.674 million, indicating potential asset value concerns[20]. - Adjustments for net income not related to Senior Housing - Managed for the three months ended September 30, 2025, totaled $(14,590), a decrease from $(56,463) in the previous quarter, indicating an improvement of 74.1%[14].

Core Insights - The analysis emphasizes a bottom-up investment approach focusing on operational fundamentals, execution history, and sustainable growth drivers in the Consumer Discretionary and Consumer Staples sectors [1]. Group 1: Investment Strategy - The investment philosophy combines income and value investing strategies, highlighting the importance of a margin of safety in multiples and projected cash flow [1]. - Dividend yield is considered a fundamental component for generating returns and mitigating risks, especially in low coverage stocks [1]. - The analyst prioritizes companies with smaller capitalization and low institutional coverage, identifying greater potential for asymmetries and alpha generation [1]. Group 2: Analytical Approach - The analysis employs triangulation between valuation by multiples, discounted cash flow (DCF), and dividend yield to assess investment opportunities [1]. - In-depth, rational, data-driven analyses are produced to support informed investment decisions [1]. - Suggestions involving options may be included when they align with the main thesis and offer an asymmetric advantage [1].