67 WALL STREET, New York - January 3, 2013 - The Wall Street Transcript has just published its 2012 Best Biotech and Health Care Executive Officer Interviews Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and other senior executive officers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Biotechnology and Pharmaceuticals - Health Care - Executive Officer Interviews
Companies include: Omega Healthcare Investors Inc. (OHI), Sabra Health Care REIT (SBRA)
In the following excerpt from the 2012 Best Biotech and Health Care Executive Officer Interviews Report, the CEO of Sabra Health Care discusses the outlook for his company for investors:
TWST: Please tell us more about the portfolio currently in terms of size and geographic reach, and tell us what opportunities and prospects you see for growth and diversification.
Mr. Matros: Currently, we have 100 investments over 24 states, so we've grown pretty nicely. Most of those investments are skilled nursing facilities. We did acquire a hospital last year, and we did an assisted living deal as well.
On a go-forward basis, what you're going to see from us is a little bit different. You're going to see a much stronger focus on diversifying from skilled nursing into the senior housing sector, specifically assisted living and memory care. And over some period of years - it's going to take some time - we look forward to having more of a 50/50 balance, so you get a better balance between private pay and government-reimbursed business. And part of that is, I think, any time you build a company, no matter what kind of a company it is, you want to spread your risk.
But another component is Sabra is not very big at this point, and so we can build Sabra and define what Sabra is going to be. We don't want Sabra to be a pure SNF REIT, because whether we agree with it or not, it doesn't matter, but the market does not value skilled nursing facilities as highly as they do senior housing. If you look at a REIT like Omega [Omega Healthcare Investors Inc. (OHI)]- which by the way does a great job of generating completely dependable returns for their shareholders, but because they are a pure SNF REIT - they trade several turns lower than the rest of the health care REIT space, and their ratings can only go so far because of that.
From our perspective, as much as we like the skilled nursing facility sector, why build a REIT that has some sort of artificial cap on it, both from a multiple and a ratings perspective? But that's going to happen more down the road than it is today, because today there's still nothing more important than...
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