Sabra Health Care REIT Inc (SBRA) Reports Q3 2023 Earnings
Sabra Health Care REIT Inc (NASDAQ:SBRA) reported a net loss of $0.07 per share for Q3 2023.
The company's Funds from Operations (FFO) stood at $0.33 per share.
Sabra generated $80 million from the disposition of 15 facilities, which was used to reduce the outstanding balance on the companys revolving credit facility.
The Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock.
On November 6, 2023, Sabra Health Care REIT Inc (NASDAQ:SBRA) released its Q3 2023 earnings report. The company reported a net loss of $0.07 per diluted common share. The Funds from Operations (FFO), Normalized FFO, and Adjusted FFO (AFFO) per share were $0.33, $0.33, and $0.35 respectively. The company also declared a quarterly cash dividend of $0.30 per share of common stock.
Financial Highlights
During Q3 2023, Sabra generated $80 million of gross proceeds from the disposition of 13 skilled nursing and two senior housing facilities. The net proceeds were used to reduce the outstanding balance on the companys revolving credit facility. As of September 30, 2023, Sabra had approximately $1.0 billion of liquidity, consisting of unrestricted cash and cash equivalents of $33.3 million and available borrowings of $967.4 million under its revolving credit facility.
Operational Performance
Sabra's same-store senior housing managed portfolio performed well, with a 170 bps sequential increase in quarterly occupancy to 81.9%. On a year-over-year basis, third quarter revenue grew by 6.5%, primarily driven by higher REVPOR. This, combined with roughly flat operating expenses, resulted in a 28.2% year-over-year increase in quarterly Cash NOI for this portfolio.
CEO Commentary
We believe our business is moving further and further away from the pandemic-induced bottom. While we expect labor issues to persist, we do see continued improvement. Despite this challenge, occupancy and rent coverage in our skilled and senior housing NNN portfolios remain on an upward trajectory. During the quarter, our senior housing managed portfolio showed strong improvement in all critical metrics. Our balance sheet continues to be exemplary and that, together with our strategy of focusing on our internal growth, has led to improvements in our cost of capital. With an improved cost of capital, the door to external growth has started to open in some cases. To the extent we execute on these opportunities, we are focused on conservatively underwriting lower risk singles and doubles. - Rick Matros, CEO and Chair
Financial Statements Summary
As of September 30, 2023, Sabra's real estate investments, net of accumulated depreciation, stood at $4.6 billion. The company's total assets were $5.38 billion, while total liabilities were $2.51 billion. The total equity was $2.87 billion.
For the nine months ended September 30, 2023, the net cash provided by operating activities was $221.8 million. The net cash provided by investing activities was $164.9 million, while the net cash used in financing activities was $400.9 million.
The company's FFO for the three months ended September 30, 2023, was $76.9 million, while the Normalized FFO was $77.2 million. The AFFO for the same period was $81.5 million, with the Normalized AFFO standing at $80.5 million.
Explore the complete 8-K earnings release (here) from Sabra Health Care REIT Inc for further details.
This article first appeared on GuruFocus.
