Core Viewpoint - The merger between Regional Health Properties, Inc. and SunLink Health Systems, Inc. is a transformative step aimed at creating a vertically integrated company that enhances growth, efficiency, and long-term value creation [2]. Merger Details - The merger was completed on August 14, 2025, with Regional surviving as the merged entity [1]. - Each five shares of SunLink common stock were converted into 1.1330 shares of Regional common stock and one share of Regional Series D 8% Cumulative Convertible Redeemable Participating Preferred Shares [3]. - The total consideration for the merger included approximately 1,595,400 shares of Regional common stock and about 1,408,120 shares of Regional Series D preferred stock [3]. Leadership Structure - Brent S. Morrison will continue as President and CEO of the combined company, with Mark J. Stockslager as CFO and Robert M. Thornton, Jr. as Executive Vice President – Corporate Strategy [5]. - The Board of Directors will include members from both Regional and SunLink, ensuring continuity and integration of leadership [6]. Company Overview - Regional Health Properties, Inc. is a self-managed healthcare real estate investment company focused on senior living and long-term care properties [7].

Portfolio Overview - The company's total annualized cash NOI is $437892 thousand, with ISHC contributing 613% ($268592 thousand), OM contributing 170% ($74256 thousand), SHOP contributing 136% ($59760 thousand), Triple-Net Leased Properties contributing 70% ($30632 thousand), and Debt Security Investment contributing 11% ($4652 thousand)[10] - The weighted average lease term for Outpatient Medical (OM) properties is 49 years, and for Triple-Net Leased Properties, it is 133 years[10] Same-Store NOI Performance - Total Same-Store NOI increased by 139% from $86835 thousand in Q2 2024 to $98911 thousand in Q2 2025[11] - Total Year-to-Date Same-Store NOI increased by 145% from $168902 thousand on 6/30/2024 to $193387 thousand on 6/30/2025[11] - SHOP Same-Store NOI increased by 230% in Q2 and 266% YTD[11] Earnings Highlights - NAREIT FFO per share - diluted increased by 281% from $032 in Q2 2024 to $041 in Q2 2025[12] - Normalized FFO per share - diluted increased by 273% from $033 in Q2 2024 to $042 in Q2 2025[12] ISHC Performance - ISHC Same-Store NOI increased by 183% in Q2 and 190% YTD[11, 17] - ISHC average occupancy increased from 867% to 889% in Q2 2025 compared to Q2 2024[17] Outpatient Medical Performance - Outpatient Medical Same-Store NOI increased by 14% in Q2 and 17% YTD[11, 22] - Outpatient Medical ending occupancy decreased slightly from 919% to 917% in Q2 2025 compared to Q2 2024[22] Triple-Net Leased Properties - Triple-Net Leased Properties Same-Store NOI increased by 14% in Q2, remaining flat YTD[11, 31] - Triple-Net Leased Properties average operator occupancy increased slightly from 880% to 889% in Q2 2025 compared to Q2 2024[31] 2025 Guidance - The company projects a FY 2025 Total Portfolio Same-Store NOI Growth of 110% - 140%[49]

Core Insights - American Healthcare REIT, Inc. reported strong second quarter results for 2025, leading to an increase in full-year guidance for Same-Store NOI growth and NFFO [1][3][12] Financial Performance - The Company achieved Same-Store NOI growth of 13.9% for Q2 2025 compared to Q2 2024, with significant contributions from the ISHC and SHOP segments, which grew by 18.3% and 23.0% respectively [4][5][6] - Reported GAAP net income attributable to controlling interest was $9.9 million, translating to $0.06 per diluted share for Q2 2025 [6][30] - Normalized Funds from Operations (NFFO) for Q2 2025 was reported at $0.42 per diluted share [6][32] Operational Highlights - The Company has seen a broad-based increase in demand across its operating portfolio, with occupancy rates improving significantly, particularly in independent and assisted living units [5][11] - The total portfolio Same-Store NOI growth guidance for the year ending December 31, 2025, has been increased to a range of 11.0% to 14.0% [6][12] Capital Markets Activity - During Q2 2025, the Company issued 5,451,577 shares of common stock through its ATM program, raising approximately $188.6 million [10][11] - The Company has closed on approximately $255 million of new investments year-to-date 2025 [6][10] Balance Sheet and Liquidity - As of June 30, 2025, the Company reported total consolidated indebtedness of $1.55 billion and total liquidity of approximately $733.5 million [9][28] - The Net Debt-to-Annualized Adjusted EBITDA improved to 3.7x from 4.5x as of March 31, 2025 [6][9] Future Outlook - The Company anticipates continued strong performance in the second half of 2025, driven by ongoing occupancy improvements and effective asset management strategies [5][11] - Full-year guidance for NFFO has been increased to a range of $1.64 to $1.68 per diluted share, reflecting improved expectations for NOI growth [6][12]

Financial Data and Key Metrics Changes - The company reported cash NOI of $41.9 million for Q2 2025, a 1.7% increase from Q2 2024, primarily driven by acquisitions [12] - AFFO was $0.54 per diluted share for Q2 2025, reflecting a 1.7% increase from Q2 2024, despite a 2.7% decrease year-over-year due to higher interest expenses [13][15] - The liquidity position at the end of the quarter was $568.8 million, with a net debt to EBITDAre ratio of 3.6 times [17] Business Line Data and Key Metrics Changes - The average EBITDARM coverage ratio improved to 5.31 times, up from 4.64 times in the previous year, indicating stronger tenant performance [16] - The company maintained a strong tenant base, with 40% associated with investment-grade rated tenants, up from 36.4% year-over-year [16] Market Data and Key Metrics Changes - The company closed on a two-property medical outpatient building portfolio for approximately $16.2 million, enhancing its operational synergies [20] - Year-to-date acquisitions totaled approximately $75 million, with over $70 million of properties under exclusive LOI [21] Company Strategy and Development Direction - The company focuses on necessity-based healthcare solutions, aiming to capitalize on the aging population and limited competition in its markets [5][19] - A strategic decision was made to demolish the Stoughton asset to halt expense leakage and maximize future land value [10][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow despite macroeconomic uncertainties, emphasizing a prudent capital allocation strategy [4][11] - The company aims to maintain a healthy dividend while pursuing growth through acquisitions and share repurchases [17] Other Important Information - The board approved a three-year share repurchase program for up to $75 million, with a cap of $25 million per year [15] - The company is currently under exclusive LOI for additional acquisitions, indicating a robust pipeline for future growth [21] Q&A Session Summary Question: What types of assets are included in the $70 million LOIs? - Management confirmed that the properties under LOI are consistent with their current portfolio and have long lease durations [25][26] Question: What is the current status of the Stoughton facility? - Management indicated that the demolition process is underway and will significantly reduce carrying costs [39][57] Question: How does the company evaluate share repurchases versus acquisitions? - Management stated that share repurchases are viewed as a tool, and decisions are based on the perceived disconnect between share price and intrinsic value [30][41] Question: What are the expectations for lease expirations in the near term? - Management is optimistic about renewing nearly all leases expiring in 2025 and 2026, with only minor exposures expected [42][46]

Core Insights - National Healthcare Properties, Inc. reported strong second quarter results, highlighting significant growth in same store cash net operating income across both Senior Housing Operating Property and Outpatient Medical Facility segments [2][3] Financial Performance and Other Highlights - The company achieved a net loss of $(0.85) per basic and diluted share, with Nareit defined Funds from Operations (FFO) of $0.19 per diluted share, and Adjusted Funds from Operations (AFFO) of $0.32 per diluted share [8] - FFO per share increased by 35.7% quarter-over-quarter, while AFFO per share saw a 3.2% increase [8] - Same Store Cash Net Operating Income (NOI) growth was 8.5% year-over-year, with the SHOP segment experiencing a 17.3% increase and the OMF segment a 4.4% increase [8] - The company completed dispositions totaling $21.4 million, resulting in a net gain of $2.7 million [4][8] Operating Update - The company disposed of three non-core Outpatient Medical Facilities (OMFs) and three non-core Senior Housing Operating Properties (SHOPs) during the quarter [4] - Year-to-date, the company has paid down $83.1 million of debt using proceeds from these dispositions [5] Balance Sheet and Capital - As of June 30, 2025, total debt outstanding was $1.0 billion with a weighted average interest rate of 5.1% and an average remaining term of 3.7 years [5] - Net Leverage (Net Debt to Annualized Adjusted EBITDA) improved to 9.3x, a 0.4x improvement from March 31, 2025 [6] Preferred Stock - The company repurchased $1.8 million of previously outstanding shares of preferred stock at a weighted average yield of 12.8%, reducing leverage by $1.3 million on a "Net Debt + Preferred" basis [9][14]

Financial Performance & Guidance - Sabra is updating its 2025 Net Income guidance to a range of $0.77 to $0.79 per diluted common share[18] - The company projects 2025 FFO (Funds From Operations) to be in the range of $1.52 to $1.54 per diluted common share[18] - Normalized FFO for 2025 is guided between $1.45 and $1.47 per diluted common share[18] - Sabra anticipates 2025 AFFO (Adjusted Funds From Operations) to range from $1.47 to $1.49 per diluted common share[18] - Normalized AFFO for 2025 is expected to be between $1.49 and $1.51 per diluted common share, implying a 4% year-over-year growth[18, 19] Portfolio Metrics - As of June 30, 2025, the weighted average remaining lease term for the portfolio is 7 years[43] - The company has 392 investments and 58 relationships[43] - Skilled Nursing facilities represent 38% of the portfolio mix[43] - The average occupancy percentage is 83% for SNF/TC (Skilled Nursing/Transitional Care) Leased, 90% for SH (Senior Housing) - Leased, and 78% for BH/Hosp/Oth (Behavioral Health/Hospital/Other)[43] - SNF/TC EBITDARM coverage is 2.27x, and SH EBITDARM coverage is 1.49x[43] Balance Sheet & Capitalization - As of June 30, 2025, the company's consolidated enterprise value is $6.7 billion[67] - Common equity represents 64% of the capital structure[67] - Secured debt accounts for 1% of the capital structure[67]

Core Insights - Sabra Healthcare reported revenue of $189.15 million for the quarter ended June 2025, reflecting a 7.4% increase year-over-year and a surprise of +1.98% over the Zacks Consensus Estimate of $185.47 million [1] - The company's EPS for the quarter was $0.38, significantly higher than $0.10 in the same quarter last year, with an EPS surprise of +2.7% compared to the consensus estimate of $0.37 [1] Financial Performance Metrics - Interest and other income reached $10.34 million, exceeding the estimated $10.03 million, marking a +13.6% change year-over-year [4] - Rental and related revenues were reported at $99.82 million, surpassing the estimated $95.9 million, with a +0.7% change compared to the previous year [4] - Resident fees and services generated $78.99 million, slightly above the $78.6 million estimate, representing a +16.3% year-over-year increase [4] - Net Earnings Per Share (Diluted) was $0.27, compared to the average estimate of $0.17, indicating a positive performance [4] Stock Performance - Over the past month, Sabra's shares have returned -1.8%, contrasting with the Zacks S&P 500 composite's +0.6% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

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].

Financial Performance & Guidance - The company raised its NFFO guidance range by $0.01, to $1.57 - $1.61 per share for 2025[7] - NFFO per share sequentially improved by $0.02 to $0.41 per share, and FAD per share sequentially improved by $0.04 to $0.33 per share[8, 10] - Same-store cash NOI growth was 5.1%, a sequential increase of 2.8%[8] - The company completed or has under contract/LOI approximately $900 million in asset sales year-to-date[10] Strategic Plan & Portfolio Optimization - The company is implementing a strategic plan to improve operational performance, optimize the portfolio, and re-establish credibility[13] - The company has segmented its portfolio into three categories: Stabilized (approximately 75% of the total portfolio), Lease-Up (approximately 13%), and Disposition (approximately 12%)[15, 36] - The company plans to dispose of approximately $1.2 billion in assets[48] - The stabilized portfolio has approximately 95% occupancy and generates approximately $550 million in NOI[36, 37] - The lease-up portfolio has approximately 70% occupancy and approximately $90 million in NOI, with a potential to unlock up to $50 million in incremental NOI[36, 43, 45] Restructuring & Efficiencies - The company is restructuring its organizational platform to enhance focus and accountability, targeting over $10 million in annual savings[15] - The company identified G&A efficiencies to bring HR in line with peers, improve margins, and create long-term shareholder value, targeting $10 million of G&A reduction[35] Balance Sheet & Capital Allocation - The company is targeting a mid-5x Net Debt / EBITDA and a 5-year weighted average debt maturity[15] - The company reduced the dividend by 23% to $0.24 per share on a quarterly basis to fund high-return capital investments[77]

Financial Data and Key Metrics Changes - The company reported normalized FFO of $0.14 per share for Q2 2025, which reflects a significant increase in cash rents from tenants compared to previous quarters [20][21][25] - Cash revenue from newly added properties increased from approximately $3.4 million in Q1 to $11 million in Q2, with expectations to reach around $17 million by Q3 2025 [11][25] Business Line Data and Key Metrics Changes - The portfolio of new tenants is showing strong performance trends, with increasing EBITDARM coverage ratios across various asset types year over year [13][19] - The company increased its equity investment in the InfraCore joint venture by approximately CHF 50 million to facilitate acquisitions and debt repayment [15][46] Market Data and Key Metrics Changes - The joint venture in Germany successfully completed a refinancing transaction of €200 million at a fixed rate of 5.1%, indicating strong investor appetite for healthcare infrastructure in Europe [12][27] - In the U.S. market, LifePoint Health reported an 18% year-over-year increase in admissions at Conemaugh Memorial, contributing to significant EBITDARM coverage growth [16] Company Strategy and Development Direction - The company aims to provide permanent capital solutions to hospitals, enhancing their financial flexibility and operational agility in response to recent Medicaid funding changes [10] - The strategic focus includes increasing financial flexibility through asset sales, retenanting, and refinancing to support operational strategies that build equity value [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to reach total annualized cash rent of over $1 billion by the end of 2026, supported by steady contributions from stabilized portfolios and new operators [12][19] - The management team noted that operators are generally optimistic about potential revenue improvements from upcoming changes in Medicaid and ACA, although the exact impacts remain uncertain [54] Other Important Information - The company recorded approximately $111 million in net impairments and fair market value adjustments, primarily related to its investment in PHP [21][22] - The company has retained optionality for future strategies, including potential asset monetization and further debt refinancing opportunities [29] Q&A Session Summary Question: Can you provide some color on HSA's performance and rent ramp? - Management confirmed that HSA has been paying rent and is current on payments, expressing confidence in their ability to ramp up as expected [31][32] Question: What is the status of the bankruptcy filings with Stewart and HSA's credit? - Management clarified that the issues related to HSA's loan default have been resolved, and they are not currently in default on any operational matters [33][34] Question: Can you discuss the prospect recovery process and PHP proceeds? - Management explained that the PHP process has resulted in lower-than-expected proceeds, but they anticipate upcoming auctions for properties that will provide further clarity [35][36] Question: What is the status of the asset sales expected to close this year? - Management confirmed that the expected asset sales are anticipated to close before year-end, primarily involving leftover properties from Stewart [41][42] Question: How is the legacy Stewart asset ramp-up progressing? - Management indicated that operators are performing ahead of expectations, although they are cautious about ramping up rent too quickly [45] Question: What is the status of the California assets and potential leasing? - Management noted that there are ongoing discussions about leasing and selling the California properties, with a stalking horse expected to be announced soon [51][52] Question: How are operators preparing for changes in Medicaid and ACA? - Management stated that operators are generally optimistic about potential revenue increases from the changes, but the exact impacts will take time to materialize [54]