Sabra(US:SBRA)2020-08-07 03:31Financial Data and Key Metrics Changes - For the quarter ended June 30, 2020, the company recorded revenues of $153.9 million and NOI of $126.9 million, representing increases of $4.6 million and $1.3 million respectively compared to the first quarter of 2020 [97] - FFO for the quarter was $88.1 million, with a normalized FFO of $93.3 million or $0.45 per share, which is comparable to the normalized FFO of $92.1 million or $0.45 per share in the first quarter of 2020 [99] - AFFO was $87.3 million, with a normalized AFFO of $91.5 million or $0.44 per share, similar to the normalized AFFO of $90.5 million or $0.44 per share in the first quarter of 2020 [100] Business Line Data and Key Metrics Changes - The skilled nursing portfolio experienced a decline of 811 basis points in occupancy but showed signs of stabilization since the end of May [13] - The triple net senior housing portfolio was only down 136 basis points, indicating resilience compared to peers [18] - Managed portfolio occupancy decreased by 393 basis points, with specific geographic areas significantly impacting performance [19][60] Market Data and Key Metrics Changes - The company noted that occupancy trends varied significantly by market, with some areas experiencing spikes in COVID-19 cases affecting occupancy [27] - The managed portfolio's revenue decreased by 3.7% in the second quarter compared to the first quarter of 2020, while revenue per occupied room (RevPOR) declined by only 0.6% [63] - The occupancy for the Enlivant joint venture portfolio averaged 78.9%, reflecting a 2.6% decrease on a stabilized same-store basis [65] Company Strategy and Development Direction - The company is focusing on maintaining its financial health by avoiding significant acquisitions and managing leverage carefully during the pandemic [31] - The strategic emphasis is on enhancing the skilled mix of operators to improve occupancy and revenue, particularly in the context of COVID-19 [23] - The company is optimistic about future growth opportunities as it continues to adapt to the changing landscape of senior housing and healthcare [56] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the ongoing impact of COVID-19 on occupancy and operational costs, but noted improvements in occupancy trends in certain markets [10][24] - The company highlighted the importance of testing and PPE availability as critical factors in managing the pandemic's impact on operations [28] - Management remains cautious about providing future performance outlooks due to uncertainties surrounding the pandemic [96] Other Important Information - The company has not needed to provide COVID-19 related rent relief to any tenants to date, indicating strong rent collection performance [94] - The company has a strong liquidity position with over $950 million in cash and availability, allowing it to navigate challenges effectively [109] - The Board of Directors declared a quarterly cash dividend of $0.30 per share, representing a payout of 68% on normalized AFFO per share [108] Q&A Session Summary Question: How much government support or loans need to be repaid versus how much is grant? - Management indicated that very little government support is expected to impact operators' balance sheets, with most operators not taking advantage of advanced Medicare payments [113]