Sabra(SBRA)2025-02-19 21:05Financial Performance - For the three months ended December 31, 2024, net income was $46.7 million, compared to $17.2 million for the same period in 2023, representing a 172% increase [7]. - The company reported FFO of $85.2 million for Q4 2024, up from $70.2 million in Q4 2023, indicating a 21% year-over-year growth [7]. - The company recorded an AFFO of $87.6 million for Q4 2024, compared to $74.2 million in Q4 2023, marking a 17.5% increase [7]. - Net income rose significantly from $17,156 million in December 2023 to $46,695 million in December 2024, marking an increase of about 172.5% [14]. - Total Net Operating Income (NOI) reached $488.612 million, with contributions from various segments including $261.289 million from skilled nursing and $74.565 million from senior housing [20]. - Cash Net Operating Income for the year was $484.773 million, reflecting adjustments for non-cash revenues and expenses [20]. - Annualized Cash Net Operating Income was reported at $489.591 million, indicating a strong operational performance [22]. Revenue Growth - Cash rental income for the year ended December 31, 2024, was $363.9 million, an increase from $352.3 million in 2023, reflecting a growth of 3.7% [12]. - Resident fees and services revenue increased from $61,256 million in December 2023 to $76,865 million by December 2024, representing a growth of approximately 25.5% [14]. - Same store resident fees and services showed a steady increase, reaching $68,600 million by December 2024, up from $63,890 million in December 2023, which is an increase of approximately 7.5% [14]. Guidance and Projections - The company provided 2025 guidance for net income per diluted common share ranging from $0.67 to $0.70, with normalized FFO expected between $1.43 and $1.46 [3]. - The company anticipates low-single-digit Cash NOI growth for the triple-net portfolio and low-to-mid teens Cash NOI growth for the same store Senior Housing - Managed portfolio [5]. - The weighted average share count for Normalized FFO is projected to be approximately 240 million shares [5]. Debt and Financial Ratios - The company reported a net debt of $2.38 billion with a net debt to adjusted EBITDA ratio of 5.27x as of December 31, 2024 [9]. - Net Debt is calculated as the principal balances of the Company's credit facilities and loans, net of cash and cash equivalents [35]. - Net Debt to Adjusted EBITDA is calculated as Net Debt divided by Annualized Adjusted EBITDA, reflecting the Company's leverage relative to its earnings [36]. Operational Metrics - Adjusted EBITDA for the three months ended December 31, 2024, was $112.8 million, with an annualized figure of $451.2 million [9]. - Cash Net Operating Income for the three months ended December 31, 2024, was $123,931 million, up from $18,492 million in December 2023, demonstrating strong operational performance [17]. - The company reported a net operating income of $125,639 million for the three months ended December 31, 2024, compared to $18,492 million in December 2023, indicating substantial growth [17]. Expenses and Impairments - The company expects general and administrative expenses to be around $50 million, which includes $11 million of stock-based compensation expense [5]. - Interest expenses amounted to $115.272 million, highlighting the cost of financing [20]. - Impairment of real estate was noted at $18.472 million, impacting overall profitability [20]. - The company experienced a net gain on sales of real estate amounting to $(6,064) million, indicating challenges in this area [17]. - The company reported a net gain on sales of real estate totaling $(2.095) million, indicating challenges in asset disposals [20]. Definitions and Metrics - Funds From Operations (FFO) is defined as net income excluding gains or losses from real estate dispositions, plus real estate depreciation and amortization, and is considered a useful measure for comparing operating performance [34]. - Adjusted Funds from Operations (AFFO) excludes stock-based compensation and other non-cash items, providing a clearer view of the Company's operating results [34]. - Cash Net Operating Income (NOI) is projected to grow from $18,492 million in December 2023 to $24,148 million by December 2024, reflecting an increase of around 30.6% [14]. - Net Operating Income (NOI) is defined as total revenues less operating expenses, serving as a key measure for evaluating investment performance [37]. - Normalized FFO and Normalized AFFO adjust for certain income and expense items not indicative of ongoing results, aiding in performance comparison [40]. Business Segments - Senior Housing includes various community types such as independent living and assisted living, indicating the Company's focus on diverse healthcare services [41]. - Skilled Nursing/Transitional Care facilities encompass skilled nursing and mental health services, highlighting the Company's service offerings in healthcare [42].