Sabra Reports First Quarter 2013 Results and Declares Quarterly Dividend; Revenues and Per Common Share Net Income, FFO and AFFO Increased 35%, 108%, 44% and 13%, Respectively, Over the First Quarter 2012
Wednesday, May 01, 2013 18:18ET
Sabra Health Care REIT, Inc. Logo
IRVINE, Calif., May 1, 2013 (GLOBE NEWSWIRE) -- Sabra Health Care REIT, Inc. ("Sabra," the "Company" or "we") (Nasdaq:SBRA) today announced results of operations for the first quarter of 2013.
RECENT HIGHLIGHTS
For the first quarter of 2013, FFO, AFFO and net income attributable to common stockholders per diluted common share were $0.46, $0.43 and $0.25, respectively, up from $0.32, $0.38 and $0.12, respectively, for the first quarter of 2012.
During the first quarter, we made a $12.8 million mortgage loan investment with an option to purchase upon stabilization the 48-unit memory care facility located in Arizona used as collateral for the note.
During the first quarter, we entered into two preferred equity investments to fund up to $7.2 million (of which $4.6 million was funded as of March 31, 2013) with an option to purchase upon stabilization a 141-bed skilled nursing facility located in Texas.
During the first quarter, we implemented a $100.0 million At-The-Market stock offering program (the "ATM Program") with respect to shares of our common stock.
During the first quarter, we completed a public offering of 5.8 million shares of 7.125% Series A Cumulative Redeemable Preferred Stock (the "Series A Preferred Stock") at a price of $25.00 per share, providing net proceeds of $138.4 million, after deducting underwriting discounts and other offering expenses.
Subsequent to March 31, 2013, we repaid in full one mortgage note totaling $7.3 million with available cash, which will result in annual interest savings of approximately $0.7 million.
On May 1, 2013, our board of directors declared a quarterly cash dividend of $0.34 per share of common stock. The dividend will be paid on May 31, 2013 to common stockholders of record as of the close of business on May 15, 2013.
Also on May 1, 2013, our board of directors declared an initial quarterly cash dividend of $0.346354 per share of Series A Preferred Stock (reflecting a pro rata dividend from and including the original issue date of the Series A Preferred Stock to and including May 31, 2013). The dividend will be paid on May 31, 2013 to preferred stockholders of record as of the close of business on May 15, 2013.
Commenting on the first quarter results, Rick Matros, CEO and Chairman, said, "While the first quarter is typically slow, we were pleased that both announced investments reflect new development deals with existing tenants. We expect new development, with particular focus on assisted living and memory care to be a continued focus for the remainder of the year." Matros continued, "The success of our preferred equity offering reflects our desire to be opportunistic with the capital markets while keeping the best interests of our stockholders in mind. We would not expect to activate our recently announced ATM program, given our current liquidity, until acquisition activity justifies it. We reaffirm our 2013 guidance as well as our expected investment range of $150 to $200 million."
Performance for the First Quarter of 2013
During the first quarter of 2013, we recognized FFO of $17.5 million ($0.46 per diluted common share) and AFFO of $16.6 million ($0.43 per diluted common share), compared to FFO of $11.7 million ($0.32 per diluted common share) and AFFO of $14.0 million ($0.38 per diluted common share) for the same period in 2012. AFFO represents FFO excluding non-cash revenues (including, but not limited to, straight-line rental income adjustments and non-cash interest income adjustments), non-cash expenses (including, but not limited to, stock-based compensation expense, amortization of deferred financing costs and amortization of debt discounts and premiums) and acquisition pursuit costs, which aggregated to a net adjustment of 0.4 million, ($0.03 per diluted common share) for the period. During the first quarter of 2013, net income attributable to common stockholders was $9.3 million ($0.25 per diluted common share), compared to net income attributable to common stockholders of $4.4 million ($0.12 per diluted common share) for the same period in 2012. We recognized revenues of $32.0 million during the first quarter of 2013 compared to $23.7 million during the first quarter of 2012. In addition, during the first quarter of 2013, we generated $21.6 million of cash from operating activities, up from $16.5 million during the same period of 2012. Finally, EBITDARM Coverage and EBITDAR Coverage for our portfolio were 1.73x and 1.30x, respectively, for the three months ended March 31, 2013 after adjusting to eliminate the impact of facilities identified as strategic disposition candidates.
LIQUIDITY
As of March 31, 2013, we had approximately $247.6 million in liquidity, consisting of unrestricted cash and cash equivalents of $53.6 million and available borrowings of $194.0 million under our secured revolving credit facility. As of March 31, 2013, we also had $100.0 million in available capacity under our ATM Program.
