Sabra Reports Third Quarter 2016 Results; Reports Earnings Per Share And FFO Per Share Growth Of 46% And 7%, Respectively, Over Third Quarter 2015

IRVINE, Calif., Nov. 02, 2016 (GLOBE NEWSWIRE) -- Sabra Health Care REIT, Inc. ("Sabra," the "Company" or "we") (NASDAQ:SBRA) (NASDAQ:SBRAP) today announced results of operations for the third quarter of 2016.

RECENT HIGHLIGHTS
  • For the third quarter of 2016, net income attributable to common stockholders, FFO, Normalized FFO, AFFO and Normalized AFFO per diluted common share were $0.35, $0.59, $0.54, $0.58 and $0.53, respectively, compared to $0.24, $0.55, $0.58, $0.53 and $0.53, respectively, for the third quarter of 2015.
  • During the third quarter of 2016, revenues increased 3% over the same period in 2015, from $59.9 million to $61.9 million.
  • During the third quarter of 2016, we made investments of $113.5 million with a weighted average initial cash yield of 7.9%.  These investments consisted of: (i) $109.6 million for one skilled nursing facility and three senior housing facilities; (ii) $0.7 million of preferred equity investments; and (iii) $3.2 million of investments in loans receivable.
  • During the third quarter of 2016, we sold a 135 bed skilled nursing facility for $10.0 million and recognized a gain on sale of $1.5 million. Also during the third quarter of 2016, we were repaid in full on two construction loans and a land loan totaling $17.3 million.
  • During the third quarter of 2016, we entered into three interest rate swap agreements to fix the LIBOR portion of the interest rate for our $245.0 million U.S. dollar term loan at 0.90% and to fix the CDOR portion on CAD $35.0 million of our Canadian dollar term loan at 0.93%. In addition, we terminated our five-year interest rate cap contract that capped LIBOR at 2.0% and received $0.3 million in connection with this termination.
  • On October 19, 2016, Moody's Investors Service affirmed all of Sabra's ratings, including the senior unsecured debt rating at Ba3, and revised our outlook to positive from stable, reflecting a significant reduction in our Genesis tenant concentration over the past two years as well as balance sheet improvement through a reduction in leverage.
  • On November 2, 2016, our board of directors declared a quarterly cash dividend of $0.42 per share of common stock. The dividend will be paid on November 30, 2016 to common stockholders of record as of the close of business on November 15, 2016.
  • On November 2, 2016, 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 November 30, 2016 to preferred stockholders of record as of the close of business on November 15, 2016.

Commenting on the third quarter results and recent investments, Rick Matros, CEO and Chairman, said, "Sabra posted another solid quarter with a particularly strong showing in its Skilled Nursing/Transitional Care portfolio. Occupancy in that portfolio was slightly up, while skilled mix hit a new high of 43.7%. EBITDAR Coverage increased to 1.49x from 1.28x in the third quarter of 2015, while Genesis's Fixed Charge Coverage Ratio was steady at 1.24x as expected. We expect Genesis's Fixed Charge Coverage Ratio to be in that range for the foreseeable future and start ticking up in the latter part of 2017. Senior Housing coverage was down at 1.13x as it has been the last couple of quarters, which is primarily due to the incorporation of more recently acquired independent living facility (ILF) beds into our statistics as ILFs are underwritten at a lower coverage than assisted living or memory care. Same store coverage, which does not include ILF beds, was up at 1.36x. Senior Housing occupancy was down at 89.5% from 90.7% specifically due to two portfolios we acquired since mid-2015 whose performance was not included in our third quarter 2015 Facility Statistics as they had just been acquired. In the absence of these two portfolios, occupancy would have been 90.6%.

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