Sabra Health Care REIT (SBRA) Q2 2024 earnings summary

Executive summary

• Second quarter 2024 net income was $24.0 million, up from $21.2 million in Q2 2023, with FFO and normalized FFO at $0.35 per share, and AFFO and normalized AFFO at $0.36 per share.

• SHOP (senior housing operating portfolio) cash NOI grew 17.7% year-over-year, with improved occupancy and margins in both senior housing and skilled nursing.

• The company leverages industry experience, a resilient balance sheet, and ESG initiatives to deliver long-term value and support operator expansion.

• Portfolio diversification and disciplined capital recycling remain key strategies amid labor, inflation, and regulatory challenges.

Financial highlights

• Q2 2024 revenues were $176.1 million, up from $161.2 million in Q2 2023; FFO per share was $0.35 and AFFO per share was $0.36, both up $0.01 sequentially.

• Year-over-year, normalized FFO and AFFO per share grew 6%.

• SHOP same-store cash NOI grew 17.7% year-over-year and 9.9% sequentially; Canadian senior housing cash NOI rose 23.9% year-over-year.

• Medicaid rate increases averaged 7% weighted, with a 4.2% Medicare market basket increase.

• Net Debt to Adjusted EBITDA was 5.45x as of June 30, 2024.

Outlook and guidance

• 2024 full-year guidance (per diluted share): net income $0.48–$0.55, FFO $1.33–$1.36, normalized FFO $1.36–$1.39, AFFO $1.39–$1.42, normalized AFFO $1.41–$1.44.

• Guidance assumes mid-to-high teens year-over-year same store cash NOI growth for managed senior housing.

• Guidance incorporates all announced investment, disposition, and ATM equity program activity.

• No additional investment, disposition, or capital transactions assumed beyond those disclosed.