Sabra Health Care REIT's Quarterly Results and 2024 Outlook
Sabra Health Care REIT, Inc. Reports Third Quarter Results
Sabra Health Care REIT, Inc. (NASDAQ: SBRA) recently released its operational results for the third quarter of 2024, highlighting significant growth and strategic acquisitions in the healthcare real estate sector.
Key Financial Highlights
The company's performance metrics over the third quarter are noteworthy, demonstrating a solid financial foundation. The net income amounted to $0.13 per diluted common share, while funds from operations (FFO) reached $0.34, indicating a robust operational output. The normalized FFO stood at $0.35, further underscoring the company's fiscal strength.
EBITDARM Coverage
Sabra's EBITDARM coverage ratio paints a positive outlook for its skilled nursing and transitional care facilities, reaching 1.94x. This ratio reflects the solid financial health of these operations, allowing for sustained growth and stability.
Recent Investments and Growth
In an exciting development, Sabra has successfully completed the acquisition of two managed senior housing communities from the Leo Brown Group for $75.8 million at an anticipated cash yield of 8.1%. Following this, another acquisition for $24 million was finalized post-quarter-end, maintaining a strong yield of 8.6%.
Cash NOI and Portfolio Performance
The company's same-store managed senior housing cash net operating income (NOI) reflected a year-over-year increase of 17.8%, signaling significant operational efficiency and growth within its portfolio.
Debt Management and Liquidity
As of September 30, 2024, Sabra recorded net debt to adjusted EBITDA at 5.30x, a testament to its careful management of financial leverage. With approximately $947.8 million in liquidity available, which includes cash and credit facilities, the company is well-positioned to support its ongoing and future investment initiatives.
2024 Guidance Update
In light of their Q3 performance, Sabra updated its earnings guidance for 2024, adjusting the estimates for net income, FFO, and AFFO. The updated guidance reflects expectations of net income ranging between $0.48 and $0.49 per share and FFO in the range of $1.35 to $1.36. This proactive adjustment aims to account for expected ongoing market conditions and growth in the senior housing sector.
Future Outlook
Rick Matros, CEO and Chairman of the company, expressed optimism regarding the trajectory of Sabra's operational performance, emphasizing the sustained demand for skilled nursing and managed senior housing services. The company's focus on improving occupancy rates and operational margins is anticipated to foster further growth in the forthcoming quarters.
Conference Call and Company Overview
Sabra is set to host a conference call to discuss its third quarter results comprehensively, providing insights into its strategic direction and operational performance. Investors are encouraged to stay updated through the company’s communications.
Frequently Asked Questions
1. What were Sabra's net income results for Q3 2024?
In Q3 2024, Sabra reported a net income of $0.13 per diluted common share.
2. How did Sabra's cash NOI perform year-over-year?
Sabra's same-store managed senior housing cash NOI increased by 17.8% compared to the previous year.
3. What is the company's expected FFO range for 2024?
The updated FFO guidance for 2024 is projected to be between $1.35 and $1.36 per diluted common share.
4. How much liquidity does Sabra currently have?
As of September 30, 2024, Sabra had approximately $947.8 million of liquidity, including cash and available borrowings.
5. What are the key acquisitions made by Sabra recently?
Sabra has acquired two managed senior housing communities totaling $75.8 million and another community for $24 million, both yielding strong initial cash returns.
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