Sabra Health Care REIT Inc (SBRA)

[eastunder]

Sabra Reports Second Quarter 2014 Results

July 30, 2014 4:30 PM EDT

http://www.streetinsider.com/Press+Releases/Sabra+Reports+Second+Quarter+2014+Results%3B+Reports+Increases+in+Normalized+FFO+and+Normalized+AFFO+Per+Share+of+39%25+and+29%25%2C+Respectively%2C+Over+Second+Quarter+2013%3B+Announces+Over+%24500.0+Million+of+Co/9704512.html

Sabra Health Care REIT, Inc. (Nasdaq: SBRA) today announced results of operations for the second quarter of 2014 and over $500.0 million of commitments for new unsecured revolving credit facility.

RECENT HIGHLIGHTS

For the second quarter of 2014, Normalized FFO, Normalized AFFO and net income (loss) attributable to common stockholders per diluted common share were $0.57, $0.53 and $0.28, respectively, compared to $0.41, $0.41 and $(0.09), respectively, for the second quarter of 2013.

During the second quarter of 2014, revenues increased 33% over the same period in 2013, from $32.3 million to $43.0 million.

During the second quarter of 2014, we purchased an assisted living facility with a total of 140 beds/units for a total of $23.8 million, which included the assumption of $14.1 million of HUD-insured mortgage indebtedness.

During the second quarter of 2014, we funded three preferred equity investments for a total of $6.4 million. These investments are for the development and completion of two memory care facilities and one senior housing facility with a total of 267 beds/units.

During the second quarter of 2014, we repaid $29.8 million of existing variable rate mortgage indebtedness, having an interest rate of 5.0% per annum, with borrowings on our revolving credit facility.

During the second quarter of 2014, we completed an underwritten public offering of 8.1 million newly issued shares of common stock at a price to the public of $28.35 per share, providing net proceeds, before expenses, of $219.1 million. The proceeds of this offering were used to repay outstanding borrowings on our revolving credit facility and for general corporate purposes.

On July 7, 2014, we funded a preferred equity investment for the completion of a memory care facility located outside of San Antonio, Texas for $4.5 million.

On July 11, 2014, we agreed to terms on a $15.5 million mezzanine loan with affiliates of Meridian ALZ Investors, LLC ("Meridian") in connection with our previously announced pipeline agreement with Meridian. The proceeds of the mezzanine loan will be used to repay our existing preferred equity investment in an affiliate of Meridian totaling $8.3 million (including accrued and unpaid preferred returns), resulting in a net investment by us of $7.2 million.

On July 17, 2014, we funded an additional $2.2 million under the Forest Park Medical Center-Fort Worth construction loan, bringing our total investment for calendar year 2014 for this construction loan to $49.9 million.

As of July 30, 2014 we have received lender commitments totaling over $500.0 million for a new unsecured revolving credit facility. The total availability under the agreement is expected to be $500.0 million with an accordion feature for up to $250.0 million of additional capacity. The terms will include a four year term with a 1 year extension option and improvements in pricing across the pricing matrix including an improvement of 90 basis points based on our leverage as of June 30, 2014.

On July 30, 2014, our board of directors declared a quarterly cash dividend of $0.38 per share of common stock. The dividend will be paid on August 29, 2014 to common stockholders of record as of the close of business on August 15, 2014.

Also on July 30, 2014, 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 August 29, 2014 to preferred stockholders of record as of the close of business on August 15, 2014.

Commenting on the second quarter results and recent acquisitions, Rick Matros, CEO and Chairman, said, "We saw strong quarter over quarter growth which we expect to continue given our investment activity to date. Investment activity projected for the year is on target and we reaffirm guidance for 2014. We remain focused on improving our private pay percentage pushing toward 50% over time. Rent coverage, occupancy, and skilled mix for our skilled portfolio was negatively impacted in the first quarter by weather, with the primary impact being on therapy services, as difficulty in getting to the centers disrupted therapist schedules. Despite weather issues, Genesis fixed charge coverage was stable at 1.24x. Our senior housing portfolio experienced good occupancy improvement with stable rent coverage."

Performance for the Second Quarter of 2014

During the second quarter of 2014:

We recognized revenues of $43.0 million compared to $32.3 million during the second quarter of 2013.

We recognized Normalized FFO of $25.1 million ($0.57 per diluted common share), FFO of $22.0 million ($0.50 per diluted common share), Normalized AFFO of $23.6 million ($0.53 per diluted common share) and AFFO of $23.5 million ($0.53 per diluted common share), compared to Normalized FFO of $15.6 million ($0.41 per diluted common share), FFO of $5.0 million ($0.13 per diluted common share), Normalized AFFO of $15.7 million ($0.41 per diluted common share) and AFFO of $5.6 million ($0.15 per diluted common share) for the same period in 2013

We recognized EBITDA of $35.5 million and Adjusted EBITDA of $35.0 million compared to $17.7 million and $28.9 million, respectively, during the second quarter of 2013.

Net income attributable to common stockholders was $12.2 million ($0.28 per diluted common share), compared to net loss attributable to common stockholders of $(3.2) million ($(0.09) per diluted common share) for the same period in 2013.

We generated $27.7 million of cash from operating activities compared to $1.4 million during the same period of 2013.
EBITDARM Coverage and EBITDAR Coverage for our consolidated portfolio were 1.63x and 1.24x, respectively, for the trailing twelve months ended June 30, 2014.

LIQUIDITY

As of June 30, 2014, we had approximately $304.5 million of liquidity, consisting of unrestricted cash and cash equivalents of $15.0 million (excluding cash and cash equivalents associated with a consolidated joint venture) and available borrowings of $289.5 million under our revolving credit facility.