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TheStreet Open House

Sabra Reports First Quarter 2014 Results And Increases Quarterly Common Dividend By 6%; Reports Increases In Normalized FFO And Normalized AFFO Per Share Of 20% And 23%, Respectively Over First Quarter 2013

Stock quotes in this article: SBRA

IRVINE, Calif., May 5, 2014 (GLOBE NEWSWIRE) -- Sabra Health Care REIT, Inc. ("Sabra," the "Company" or "we") (Nasdaq:SBRA) today announced results of operations for the first quarter of 2014.

RECENT HIGHLIGHTS

  • For the first quarter of 2014, Normalized FFO, Normalized AFFO and net (loss) income attributable to common stockholders per diluted common share were $0.55, $0.53 and $(0.25), respectively, compared to $0.46, $0.43 and $0.25, respectively, for the first quarter of 2013.  
  • During the first quarter, revenues increased 28% over the same period in 2013, from $32.0 million to $40.9 million.  
  • During the first quarter of 2014, we purchased eight facilities with a total of 927 beds/units for a total of $114.5 million, originated a $0.4 million pre-development loan for a 32-unit memory care facility and invested an additional $19.0 million in the construction of an acute care hospital and two memory care facilities.  
  • During the first quarter of 2014, we completed an underwritten public offering of $350.0 million aggregate principal amount of 5.5% senior unsecured notes due 2021 and completed a tender offer and redemption of $211.3 million aggregate principal amount of 8.125% senior unsecured notes due 2018. We also refinanced $44.8 million of existing variable rate mortgage indebtedness with mortgages guaranteed by the United Stated States Department of Housing and Urban Development ("HUD") at an interest rate of 4.25%.  
  • On April 8, 2014, we funded an additional $6.5 million under the Forest Park Medical Center-Fort Worth construction loan, bringing our total investment for the year for this construction loan to $24.8 million.  
  • On April 8, 2014, we completed the refinancing of $11.6 million of variable rate mortgage indebtedness with a mortgage loan, guaranteed by HUD, which has an interest rate of 4.10%.  
  • On April 25, 2014, we funded a preferred equity investment for the completion of a memory care facility located in Colorado Springs, Colorado for $1.7 million.  
  • On April 29, 2014, we purchased a senior housing campus in Fort Wayne, Indiana for $23.8 million. The campus contains 140 units (24 independent living units, 76 assisted living units and 40 memory care units) and opened in 2011. As part of this purchase, we assumed a $14.1 million HUD-insured mortgage obligation which bears interest at a rate of 4.84%.  
  • On May 1, 2014, we repaid $29.8 million of existing variable mortgage indebtedness with proceeds from our revolving credit facility. As a result of these recent financing activities, we have reduced our weighted-average effective interest rate, excluding borrowings under our revolving credit facility, to 5.18% per annum from 5.96% per annum as of December 31, 2013. Also, excluding borrowings under our revolving credit facility, all our borrowings are now at fixed interest rates and we have no significant debt maturities until 2021.  
  • On May 5, 2014, our board of directors declared a quarterly cash dividend of $0.38 per share of common stock, representing a 6% increase. The dividend will be paid on May 30, 2014 to common stockholders of record as of the close of business on May 15, 2014.  
  • Also on May 5, 2014, our board of directors declared a quarterly cash dividend of $0.4453125 per share of Series A Preferred Stock. The dividend will be paid on May 30, 2014 to preferred stockholders of record as of the close of business on May 15, 2014.

Commenting on the first quarter results and recent acquisitions, Rick Matros, CEO and Chairman, said, "We were pleased to deliver strong results again this quarter with normalized AFFO growing 23%. As expected, Genesis's fixed charged coverage was strong at 1.25x for the twelve months ended March 31, 2014. We are well on our way to meeting investment expectations for both the first half and full year 2014 with investments to date of $165.9 million. We continue to be opportunistic in the capital markets as evidenced by our successful high yield offering in the first quarter. Regarding guidance, our initial guidance excluded anticipated investments for 2014. We plan to update that guidance in the near term to reflect investments to date as well as pending activity."

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