Sabra(SBRA) - 2025 Q1 - Quarterly Results

Reconciliations of Non-GAAP Financial Measures This section provides reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures FFO, Normalized FFO, AFFO and Normalized AFFO 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 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] 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 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 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] Cash NOI by Property Type 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 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 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 This section provides official definitions for non-GAAP financial measures and other key terms used in the report Key Non-GAAP Definitions 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] - 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] - Adjusted EBITDA is defined as EBITDA excluding merger-related costs, stock-based compensation, and loan loss reserves[23] - 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]