That's right. And if you also think about it these were triple net assets before that we transitioned. They weren't performing a triple net assets. They weren't contributing anything to our NOI in 2023. Yes. It was just a timing issue really. It was just a timing issue in the first quarter. Since we're on a cash basis we recorded revenues when the cash comes in the door. And part of the March payment came in shortly after March 31 that simply as. Yes, got it. Thank you. Rick just wanted to kind of get your ...

May 8, 2024 Investor Presentation 2 "We know what happens inside our buildings matters most. That's why we align ourselves with operators who skillfully and compassionately care for the residents and patients in the buildings we own." Creatively Financed Development - Pursue strategic development opportunities and long-term partnerships with leading developers. May 8, 2024 Investor Presentation We understand that good governance underpins sustainability, strengthens the accountability of our Board and manag ...

Great. That's it for me. Thanks for the time. Rick Matros Thank you. Operator [Operator Instructions]. Your next question comes from the line of Vikram Malhotra with Mizuho. Your line is open. Vikram Malhotra Afternoon. Thanks for taking the question. Maybe just first on the guidance. I understand this is obviously the first time post-COVID. So I'm just wondering -- can you give us some specifics on what's baked into the low and the high end? You talked about low teens same-store growth. But what else is sp ...

Financial Data and Key Metrics Changes - For Q3 2023, normalized FFO per share was $0.33 and normalized AFFO per share was $0.34, consistent with previous quarters [16] - Annualized cash NOI was $453.5 million, with SNF exposure at 54.3%, down 140 basis points from Q2 and down 570 basis points year-over-year [39] - Cash NOI grew 5.3% sequentially and over 28% compared to Q3 2022, driven by revenue growth and controlled expenses [12] Business Line Data and Key Metrics Changes - Occupancy for the wholly owned managed portfolio was 81.9%, a sequential increase of 170 basis points, the highest in five quarters [6] - The independent living portfolio saw a significant occupancy improvement of 240 basis points sequentially [6] - The Holiday same-store portfolio experienced a 7.9% cash net operating income growth sequentially, with occupancy gains starting in June [13] Market Data and Key Metrics Changes - Inquiry volume and conversion to move-in rates increased significantly quarter-over-quarter, while move-outs declined to their lowest level in a year [13] - The skilled nursing concentration has decreased to its lowest point since inception, enhancing portfolio diversity [33] Company Strategy and Development Direction - The company plans to be a net acquirer in 2024, focusing on smaller acquisitions rather than large transformative deals [10][52] - The strategy includes leveraging a strong balance sheet with no near-term maturities and a commitment to maintaining a long-term average leverage target of 5x [18] - The company is optimistic about continued improvement in operations and cash NOI from its managed senior housing portfolio [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's strength post-pandemic, with improved credit quality and EBITDARM coverage across asset classes [9] - The company anticipates that rent increases will be more tempered in the 5% to 7% range compared to previous years [12] - Management noted that the impact of regulatory changes from CMS will take several years to materialize, allowing time for the industry to adapt [5][58] Other Important Information - The Board of Directors declared a quarterly cash dividend of $0.30 per share, representing a payout of 88% of normalized AFFO per share [19] - The company has ample liquidity of $1 billion, consisting of unrestricted cash and available borrowings under its revolving credit facility [41] Q&A Session Summary Question: Can you walk us through the changes in timing of the long-term NOI growth opportunity? - Management indicated that the bottom-line number decreased due to asset sales during the quarter, impacting annualized NOI [51] Question: Can you comment on any potential small tenants that could be at risk? - Management stated that tenants under 1x remain at 5% to 6%, and Landmark represents less than 1% of NOI, with no current issues [68] Question: Would you be willing to temporarily lever up to do acquisitions in the current environment? - Management emphasized that they will pursue opportunities where they see fit, focusing on earnings growth while maintaining low leverage [72] Question: What are the expectations for Medicaid and Medicare rate increases next year? - Management expects Medicaid rates to be higher than the current 5% aggregate and Medicare to exceed 4%, anticipating robust rate increases for at least another year [108]

We have no material near-term debt maturities. Our next material debt maturity is in the second half of 2026 and our weighted average debt maturity is currently at six years. Excluding our revolving credit facility, which makes up just 4.1% of our total debt, we have no floating rate debt exposure and our cost of permanent debt is 3.94% as at June 30, 2023. Talya Nevo-Hacohen Yeah. I mean the $0.33 to $0.34 run rate is still a good run rate to use, I would say for the next quarter and then we'll have to rea ...

Thank you. Yeah. Just one quick follow-up for me. Can you guys remind us what percent of your operators are on a cash basis and what the plan is for those tenants overtime, whether you're maybe looking to sell some of those assets or enter into long-term contractual leases with either the current operator or potentially a new operator? before, the activities we're doing on the portfolio, whether it would be sales or transition, that's going to address a large component of that. And there are no further ques ...

And then just to clarify, so the AFFO run rate, given the $0.03 to $0.04 that you mentioned, I think you reported, if I'm not wrong, $0.34 and -- or $0.37 and adjusted $0.34. Without you redeploying the proceeds you have for new acquisitions is the right runway somewhere in the low-30s, is it like 31 in that range? Michael Costa Well, our normalized number is $0.37. So I think you would take that and make those adjustments as you didÂ… Vikram Malhotra And then just last one, any broader comments you can you ...

Sabra Health Care REIT, Inc. (NASDAQ:SBRA) Q3 2022 Results Conference Call November 8, 2022 1:00 PM ET Company Participants Lukas Hartwich - SVP, IR Rick Matros - Chair, President and CEO Talya Nevo-Hacohen - CIO, Treasurer and EVP Michael Costa - CFO Conference Call Participants Austin Wurschmidt - KeyBanc Capital Markets Juan Sanabria - BMO Capital Markets Steven Valiquette - Barclays Joshua Dennerlein - Bank of America Merrill Lynch Michael Griffin - Citi Research Vikram Malhotra - Mizuho Securities Tayo ...

Financial Data and Key Metrics Changes - For Q2 2022, normalized FFO per share was $0.39 and normalized AFFO per share was $0.38, with normalized FFO per share increasing by $0.01 compared to Q1 2022 due to higher NOI from the senior housing managed portfolio and a decrease in stock compensation expense [35][36][42] - Cash NOI for Q2 totaled $118 million, down from $123.5 million in Q1, primarily due to lower cash rent collections [38][42] - Annualized cash NOI as of June 30, 2022, was $450.3 million, with skilled nursing facility (SNF) exposure representing 60.7% of annualized cash NOI, down 100 basis points from Q1 and down 640 basis points year-over-year [42] Business Line Data and Key Metrics Changes - Occupancy for the senior housing portfolio improved to 80.7%, with a 290 basis point increase in assisted living communities and a 60 basis point rise in independent living communities compared to the prior quarter [22] - Cash NOI for the assisted living portfolio increased nearly 11% over the prior quarter and 44% year-over-year, largely due to higher revenue [25] - Cash NOI margin for assisted living expanded by four percentage points over the prior quarter, driven by revenue growth despite higher expenses [26] Market Data and Key Metrics Changes - The company noted a slowing down in occupancy improvements in July due to seasonality and ongoing labor pressures, although labor pressures have improved compared to their worst levels [14] - The company is optimistic about Medicaid funding, with many states extending FMAPs and providing larger-than-historical Medicaid rate increases, affecting approximately 60% of the skilled nursing portfolio [11][12] Company Strategy and Development Direction - The company is focusing on diversifying its portfolio, with an emphasis on behavioral health investments, which now include 14 properties and two mortgages totaling approximately $730 million [30] - The strategy includes selling poorly performing skilled nursing assets to enhance the quality and durability of earnings, while maintaining a significant portion of the portfolio in skilled nursing [33][49] - The company aims to improve its balance sheet without accessing capital markets, with a focus on capital recycling and selective new investments [48][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the recovery of occupancy and labor availability, although the pace remains slower than expected due to ongoing labor challenges [52] - The management highlighted the importance of state budgets and Medicaid funding in shaping future earnings, indicating a positive dialogue with states regarding funding [90][91] - The company is prepared to support operators with investments in technology to improve labor management and operational efficiency [99] Other Important Information - The Board of Directors declared a quarterly cash dividend of $0.30 per share, representing a payout of 79% of normalized AFFO per share [51] - The company has no material debt maturities until 2024, reducing refinancing risk in the near term [45] Q&A Session Summary Question: Earnings impact of transition assets - Management indicated that the assets being transitioned are not well-performing and are on a cash basis, with expectations of improved earnings from better operators over time [57][58] Question: Dispositions and cash flow - Management stated they cannot discuss specifics of the sales until closed but expect to replace NOI from sold assets with new investments [61][62] Question: Skilled nursing coverage decline - The decline was attributed to moving away from stimulus funding, with stable coverage metrics noted [68][69] Question: Capital markets strategy - Management prefers not to access equity markets currently due to unfavorable pricing and aims to improve portfolio durability through asset sales [70][72] Question: Medicaid funding outlook - Management believes state budgets will dictate future Medicaid funding, with positive momentum expected beyond 2023 [110] Question: Labor pressures and occupancy - Management acknowledged labor pressures impacting admissions but noted that operators are increasing wages and improving occupancy [95][96] Question: Diversification goals - Management aims to maintain skilled nursing as a significant portion of the portfolio while diversifying to mitigate risks associated with market sentiment [84][87]

| --- | --- | |---------------------------------------------------------------------------------------------------------------|-------| | | | | | | | | | | | | | What Happens Cost Inside Our Buildings Matters Most What Happens Cost Inside Our Buildings Matters Most | | | Investor Presentation \| May 4, 2022 Investor Presentation \| August 3, 2022 | | Disclaimers Forward-Looking Statements This presentation contains "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 19 ...