Sabra Health Care REIT (SBRA) Q3 2024 earnings summary

Executive summary

• Several consecutive quarters of improvement across all primary asset classes, distancing from pandemic impacts.

• Reported net income of $29.8 million for Q3 2024, reversing a $15.1 million loss in Q3 2023; nine-month net income was $80.0 million, up from a $3.4 million loss year-over-year.

• The company aligns with skilled operators in skilled nursing, senior housing, and behavioral health, targeting needs-based, high-demand sectors with favorable demographic trends.

• Portfolio comprised 373–408 real estate properties, 14 loans receivable, five preferred equity investments, and two unconsolidated joint ventures as of September 30, 2024.

• Acquired three senior housing communities for $112.2 million and disposed of eight skilled nursing facilities for $40.5 million during the nine months ended September 30, 2024.

Financial highlights

• Q3 2024 total revenues were $178.0 million, up from $161.6 million in Q3 2023.

• Normalized FFO per share for Q3 2024 was $0.35; normalized AFFO per share was $0.37, up $0.01 sequentially and 9% year-over-year.

• FFO for Q3 2024 was $80.5 million ($0.34 per diluted share); AFFO was $85.6 million ($0.36 per diluted share).

• NOI from managed senior housing portfolio reached $22.9 million, up from $20.8 million last quarter; same store managed senior housing Cash NOI grew 17.8% year-over-year.

• Liquidity at quarter-end was $947.8 million, including $63.0 million in cash and $847.4 million in available revolver capacity.

Outlook and guidance

• Full-year 2024 guidance updated: net income $0.48–$0.49, FFO $1.35–$1.36, normalized FFO $1.39–$1.40, AFFO $1.41–$1.42, normalized AFFO $1.43–$1.44.

• Guidance assumes no additional investment or capital transactions beyond those disclosed.

• Midpoint guidance implies over 6% year-over-year growth, expected to continue into 2025.

• Management expects continued strong demand in senior housing and skilled nursing, supported by demographic trends and reimbursement increases.

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