Financial Data and Key Metrics Changes - Total revenues for the second quarter were $37.3 million, down from $40.1 million in the same quarter of the prior year [14] - Core FFO for the quarter was $11.5 million or $0.20 per share, compared to $14.2 million or $0.25 per share in the same quarter of 2024 [14] - Adjusted EBITDA was $18 million versus $20.5 million in the same quarter of 2024 [15] - G&A expenses were $4.8 million, up from $4.5 million in the same quarter of 2024 [15] - CapEx and leasing costs increased to $15.6 million from $6.3 million in the same quarter of 2024, driven by accelerated leasing activity [15][16] Business Line Data and Key Metrics Changes - Leasing momentum continued with 639,000 square feet leased as of July 31, building on last year's total of 1,100,000 square feet [5] - The weighted average lease term increased to 5.5 years from 5.2 years last quarter and 4.2 years a year ago [7] - The operating property occupancy rate was 77.4%, an increase of 30 basis points sequentially, while the leased rate was 79.1%, up 170 basis points sequentially [7] Market Data and Key Metrics Changes - The company sold four vacant properties totaling 434,000 square feet for a gross sales price of $26.9 million, approximately $62 per square foot [9] - Agreements are in place to sell five traditional office properties totaling 540,000 square feet for $57 million, or $106 per square foot, expected to close in the second half of the year [9] Company Strategy and Development Direction - The company is shifting its portfolio focus from traditional suburban office properties to dedicated use assets (DUA), which include medical, lab, R&D flex, and non-CBD government properties [10][11] - Approximately 32.2% of the portfolio by annualized base rent and 25.3% by square footage were DUA properties at quarter end, with expectations for this percentage to increase over time [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about leasing activity and the potential for portfolio occupancy to rise after 2025 [8] - The company is committed to disciplined execution and portfolio stabilization, with a focus on enhancing asset value and maintaining liquidity [12][13] - The outlook for core FFO has been raised to a range of $0.67 to $0.71 per diluted share, up from $0.61 to $0.70 [18] Other Important Information - The company ended the quarter with total liquidity of $257.7 million, including $17.7 million in cash and $240 million available on the credit facility revolver [16] - The net debt to gross real estate assets was 32% at the end of the quarter [17] - A quarterly cash dividend of $0.02 per share was declared by the Board of Directors [18] Q&A Session Summary Question: Are there any questions at this time? - There were no questions during the Q&A session [20]

Core Viewpoint - Sabra Health Care REIT significantly outperformed market expectations in Q2 2025, with strong growth in both normalized FFO and revenue, indicating robust operational momentum and balance sheet improvement [1][2]. Financial Performance - Normalized FFO per diluted share was $0.37, exceeding the analyst forecast of $0.17, and up 5.7% from $0.35 in Q2 2024 [2]. - Revenue (GAAP) reached $189.15 million, surpassing estimates of $180.97 million, and reflecting a 7.4% increase compared to Q2 2024 [1][2]. - Net income per diluted common share (GAAP) was $0.27, a significant increase of 170.0% from $0.10 in Q2 2024 [2]. Operational Highlights - Managed senior housing was a key driver of performance, with a 17.1% year-over-year increase in same-store managed senior housing Cash NOI in Q2 2025 [5]. - The company aims to increase the share of managed senior housing in its portfolio from 20% to 30% [4]. - Operational disruptions from transitioning 21 senior housing properties to new operators were minimal, indicating effective management [5]. Investment Activity - Sabra closed $122.3 million in new senior housing investments year-to-date as of Q2 2025, with an additional $220 million in awarded deals pending [5][7]. - Expected cash yields on new investments are projected to be in the high-7% range [7]. Financial Management - The company refinanced $500 million in unsecured notes with a five-year unsecured term loan at a lower fixed rate, expected to reduce future interest expenses [8]. - Net debt to adjusted EBITDA improved to 5.00x as of June 30, 2025, down from 5.19x as of March 31, 2025 [9]. Future Outlook - Management provided updated guidance for FY2025, projecting net income between $0.77 and $0.79, FFO between $1.52 and $1.54, and normalized FFO between $1.45 and $1.47 [12]. - The outlook anticipates low single-digit growth in triple-net cash net operating income and low- to mid-teens growth in managed senior housing cash NOI for 2025 [12]. - The company is focused on executing over $350 million in senior housing investments and monitoring EBITDARM coverage as new Medicare and Medicaid rates take effect [13].

Core Insights - Alpine Income Property Trust reported Q2 2025 results with GAAP revenue of $14.86 million, exceeding analyst expectations of $14.42 million, but GAAP EPS was -$0.12, missing the consensus estimate of -$0.03 due to higher impairment charges and increased interest expenses [1][2][6] Financial Performance - Revenue increased by 19.1% year-over-year from $12.49 million in Q2 2024 to $14.86 million in Q2 2025 [2] - GAAP net income turned negative, primarily due to a $2.8 million impairment charge and increased interest costs of $4.32 million [6][10] - Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) per diluted share both rose to $0.44, up from $0.43 in the prior year [7][2] Business Overview - The company operates as a real estate investment trust (REIT), focusing on single-tenant commercial properties leased to retail and service businesses on a net lease basis [3] - As of June 30, 2025, 51% of annualized base rent comes from investment-grade tenants, with a high occupancy rate of 98.2% [4] Strategic Focus - The company is actively rebalancing its portfolio by selling lower-yield or higher-risk assets and investing in accretive acquisitions and commercial loans [4][8] - Interest income from loans increased significantly from $986,000 in Q2 2024 to $2,737,000 in Q2 2025 [9] Dividend and Guidance - Dividends declared and paid per share increased to $0.285, representing approximately 65% of FFO and AFFO, indicating good cash coverage [11] - Management reaffirmed full-year guidance for FFO and AFFO per diluted share in the range of $1.74 to $1.77, with planned investment activity of $100 million to $130 million [12]