Sabra(US:SBRA)2025-11-05 21:09Investment 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].