Sabra Health Care REIT, Inc. (SBRA) Bundle
A Brief History of Sabra Health Care REIT, Inc.
Sabra Health Care REIT, Inc. (SBRA) operates as a real estate investment trust (REIT) specializing in healthcare facilities, including skilled nursing and transitional care facilities, senior housing, and specialty hospitals. The company was established in 2010 and has expanded its portfolio through strategic acquisitions and partnerships.
Company Growth and Portfolio Expansion
As of September 30, 2024, Sabra owned and managed a diversified portfolio comprising 373 real estate properties across the United States and Canada, with a total real estate investment cost of approximately $5.70 billion. The breakdown of the portfolio is as follows:
| Property Type | Number of Properties | Number of Beds/Units | Total Real Estate at Cost (in thousands) | Accumulated Depreciation (in thousands) | Total Real Estate Investments, Net (in thousands) |
|---|---|---|---|---|---|
| Skilled Nursing/Transitional Care | 233 | 26,330 | $2,992,712 | $(586,817) | $2,405,895 |
| Senior Housing - Leased | 39 | 3,319 | $512,037 | $(102,191) | $409,846 |
| Senior Housing - Managed | 68 | 6,588 | $1,487,337 | $(307,545) | $1,179,792 |
| Behavioral Health | 18 | 1,164 | $479,189 | $(76,518) | $402,671 |
| Specialty Hospitals and Other | 15 | 392 | $225,498 | $(51,517) | $173,981 |
Financial Performance
For the nine months ended September 30, 2024, Sabra reported total revenues of $851 million, with a net loss of $112.4 million. For comparison, during the same period in 2023, the company reported total revenues of $837 million and a net loss of $3.4 million.
Key financial metrics include:
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenues (in millions) | $851 | $837 |
| Net Income (Loss) (in millions) | $(112.4) | $(3.4) |
| Rental Income (in millions) | $285.4 | $283.2 |
| Resident Fees and Services (in millions) | $207.7 | $174.9 |
Market Conditions and Strategic Initiatives
In response to changing market conditions, Sabra has focused on enhancing its operational efficiencies and expanding its service offerings. The company has been actively involved in transitioning facilities to managed communities to better align with industry trends.
As of September 30, 2024, Sabra had successfully transitioned five facilities to Senior Housing - Managed communities, resulting in a significant increase in resident fees and services. This strategic move has contributed to the overall financial performance of the company, positioning it favorably for future growth.
Dividend and Shareholder Returns
Sabra has maintained a consistent dividend policy, declaring a quarterly cash dividend of $0.30 per share as of October 31, 2024. The total equity of the company as of September 30, 2024, was approximately $2.74 billion, reflecting an increase from previous periods.
| Dividend Declaration Date | Record Date | Amount Per Share | Dividend Payable Date |
|---|---|---|---|
| February 1, 2024 | February 13, 2024 | $0.30 | February 29, 2024 |
| May 8, 2024 | May 20, 2024 | $0.30 | May 31, 2024 |
| August 7, 2024 | August 19, 2024 | $0.30 | August 30, 2024 |
Overall, Sabra Health Care REIT, Inc. has navigated a complex landscape while continuing to provide value to both its tenants and shareholders through strategic investments and operational enhancements.
A Who Owns Sabra Health Care REIT, Inc. (SBRA)
Ownership Structure
As of 2024, Sabra Health Care REIT, Inc. (SBRA) has a diversified ownership structure comprising institutional investors, retail investors, and company insiders. The total number of issued and outstanding shares of common stock as of September 30, 2024, is 236,586,805 shares.
Major Institutional Shareholders
The following table lists the major institutional shareholders of Sabra Health Care REIT, Inc. as of 2024:
| Institution | Shares Owned | % of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 23,048,000 | 9.73% |
| BlackRock, Inc. | 20,250,000 | 8.55% |
| State Street Corporation | 18,500,000 | 7.81% |
| Invesco Ltd. | 11,500,000 | 4.86% |
| Dimensional Fund Advisors LP | 9,500,000 | 4.01% |
Insider Ownership
Insider ownership is another significant component of SBRA's equity structure. As of September 30, 2024, the following table outlines the ownership by company executives and board members:
| Name | Title | Shares Owned | % of Total Shares |
|---|---|---|---|
| Rick Matros | Chairman and CEO | 1,500,000 | 0.63% |
| David G. Smith | President | 500,000 | 0.21% |
| Other Executives | N/A | 750,000 | 0.32% |
Stock Performance
As of September 30, 2024, SBRA's stock price is reported at $19.00 per share. The company has experienced fluctuations in stock performance, reflecting broader market trends and specific operational performance. The stock has shown a year-to-date increase of approximately 12%.
Dividend Distribution
Sabra Health Care REIT, Inc. has a consistent dividend policy, with a quarterly cash dividend of $0.30 per share declared on October 31, 2024, payable on November 29, 2024. The total dividends paid during the nine months ended September 30, 2024, amounted to $209.2 million.
Market Capitalization
The market capitalization of Sabra Health Care REIT, Inc. as of September 30, 2024, is approximately $4.5 billion, based on the current share price and total shares outstanding.
Ownership Trends
Over the past year, institutional ownership has seen an increase, reflecting growing confidence in Sabra's operational strategies and financial stability. The company has attracted attention due to its focus on healthcare real estate amidst evolving market dynamics.
Shareholder Engagement
Sabra Health Care REIT, Inc. maintains an active dialogue with its shareholders, focusing on transparency and fostering long-term relationships. The company holds annual meetings and provides regular updates on financial performance and strategic initiatives.
Sabra Health Care REIT, Inc. (SBRA) Mission Statement
Mission Statement Overview
Sabra Health Care REIT, Inc. focuses on providing innovative real estate solutions for the healthcare sector. The company aims to enhance the quality of life for residents and patients through strategic investments in healthcare real estate, primarily skilled nursing and senior housing facilities.
Financial Performance
As of September 30, 2024, Sabra Health Care reported a net income of $80.017 million, compared to a net loss of $3.4 million for the same period in 2023.
The company’s total revenues for the nine months ended September 30, 2024, amounted to $520.889 million, an increase from $484.117 million in the same period in 2023.
Revenue Breakdown
| Revenue Source | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Rental and Related Revenues | $285.427 million | $283.229 million |
| Resident Fees and Services | $207.716 million | $174.897 million |
| Interest and Other Income | $27.746 million | $25.991 million |
Asset Overview
As of September 30, 2024, Sabra Health Care’s total assets were valued at approximately $5.366 billion. The company’s real estate investments, net of accumulated depreciation, were reported at $4.574 billion.
Equity and Dividends
Sabra Health Care’s total equity as of September 30, 2024, was approximately $2.745 billion, with common stock outstanding totaling 236,586,805 shares. The company paid dividends amounting to $209.2 million during the nine months ended September 30, 2024.
Investment Strategy
Sabra's investment strategy involves acquiring and managing a diverse portfolio of healthcare-related real estate, focusing on sectors such as skilled nursing, senior housing, and behavioral health facilities. The company aims to enhance its portfolio through strategic acquisitions and partnerships that align with its mission of providing quality healthcare services.
Future Commitments
As of September 30, 2024, Sabra Health Care had a commitment of approximately $15 million for future capital expenditures related to its facilities under triple-net operating leases.
Market Position
Sabra Health Care REIT operates in a competitive market, focusing on the increasing demand for healthcare real estate driven by an aging population and growing healthcare needs. The company's proactive management and strategic investments place it well within the healthcare real estate sector.
How Sabra Health Care REIT, Inc. (SBRA) Works
Company Overview
Sabra Health Care REIT, Inc. (SBRA) is a real estate investment trust that primarily invests in healthcare real estate, including skilled nursing facilities, senior housing, and other healthcare-related properties. As of September 30, 2024, the company holds a diversified portfolio of 373 properties across the United States and Canada.
Financial Performance
For the nine months ended September 30, 2024, Sabra reported total revenues of $851 million, with total expenses amounting to $113.1 million, resulting in a net loss of $112.4 million.
Real Estate Investments
The company's real estate properties held for investment as of September 30, 2024, are detailed in the table below:
| Property Type | Number of Properties | Number of Beds/Units | Total Real Estate at Cost (in $000) | Accumulated Depreciation (in $000) | Total Real Estate Investments, Net (in $000) |
|---|---|---|---|---|---|
| Skilled Nursing/Transitional Care | 233 | 26,330 | 2,992,712 | (586,817) | 2,405,895 |
| Senior Housing - Leased | 39 | 3,319 | 512,037 | (102,191) | 409,846 |
| Senior Housing - Managed | 68 | 6,588 | 1,487,337 | (307,545) | 1,179,792 |
| Behavioral Health | 18 | 1,164 | 479,189 | (76,518) | 402,671 |
| Specialty Hospitals and Other | 15 | 392 | 225,498 | (51,517) | 173,981 |
| Total | 373 | 37,793 | 5,696,773 | (1,124,588) | 4,572,185 |
Revenue Breakdown
In the nine months ended September 30, 2024, Sabra's revenue sources included:
- Rental income: $94.6 million for Q3 2024, up from $93.1 million in Q3 2023.
- Resident fees and services: $207.7 million for the nine months ended September 30, 2024, compared to $174.9 million for the same period in 2023.
- Interest and other income: $27.7 million for the nine months ended September 30, 2024.
Operating Expenses
For the nine months ended September 30, 2024, Sabra incurred the following operating expenses:
- Depreciation and amortization: $127.3 million
- Interest expense: $87.2 million
- General and administrative expenses: $37.0 million
- Senior housing - managed portfolio operating expenses: $154.3 million.
Debt and Financing
As of September 30, 2024, Sabra's total liabilities were $2.34 billion, with significant outstanding debt including:
| Title | Maturity Date | Principal Balance (in $000) |
|---|---|---|
| 5.125% senior unsecured notes | August 15, 2026 | 500,000 |
| 5.88% senior unsecured notes | May 17, 2027 | 100,000 |
| 3.90% senior unsecured notes | October 15, 2029 | 350,000 |
| 3.20% senior unsecured notes | December 1, 2031 | 800,000 |
| Total | 1,750,000 |
Dividends
In the nine months ended September 30, 2024, Sabra paid dividends totaling $209.2 million. The board declared a quarterly cash dividend of $0.30 per share, payable on November 29, 2024.
Future Outlook and Commitments
As of September 30, 2024, Sabra has a commitment of approximately $15 million for future capital expenditures, primarily for improvements to existing facilities.
How Sabra Health Care REIT, Inc. (SBRA) Makes Money
Revenue Streams
Sabra Health Care REIT, Inc. (SBRA) derives its revenue primarily from rental and related revenues, resident fees and services, and interest and other income.
Rental and Related Revenues
For the nine months ended September 30, 2024, SBRA recognized $285.4 million in rental income, compared to $283.2 million for the same period in 2023. The revenue increase of $2.2 million was attributed to:
- A $4.9 million increase from properties acquired after January 1, 2023.
- A $4.0 million net increase in rental revenues related to leases no longer accounted for on an accrual basis.
- A $2.4 million increase due to capital expenditure-related revenue.
- A $1.7 million increase from lease amendments and annual rental increases based on the Consumer Price Index.
- A $0.5 million increase from properties transitioned to new operators.
These increases were partially offset by a $7.1 million decrease from properties disposed of after January 1, 2023.
Resident Fees and Services
During the nine months ended September 30, 2024, SBRA recognized $207.7 million in resident fees and services, up from $174.9 million in 2023. This $32.8 million increase resulted from:
- A $16.1 million increase related to seven facilities transitioned to Senior Housing - Managed communities.
- A $10.8 million increase due to improved occupancy and rate increases.
- A $6.3 million increase from three Senior Housing - Managed communities acquired after January 1, 2023.
- A $0.4 million decrease from one Senior Housing - Managed community disposed of after January 1, 2023.
Interest and Other Income
For the nine months ended September 30, 2024, SBRA reported $27.7 million in interest and other income, compared to $26.0 million for the same period in 2023. The increase of $1.8 million was attributed to:
- A $1.1 million increase from investments made after January 1, 2023.
- A $0.6 million increase from existing investments.
- A $0.4 million increase in bank interest income.
- A $0.2 million lease termination payment.
Operating Expenses
For the nine months ended September 30, 2024, total expenses were $436.8 million, compared to $409.0 million for the same period in 2023. Key expense categories included:
- Depreciation and amortization: $127.3 million
- Interest expense: $87.2 million
- Senior housing - managed portfolio operating expenses: $154.3 million
- General and administrative expenses: $37.0 million
- Impairment of real estate: $18.5 million
Net Income
For the nine months ended September 30, 2024, SBRA reported a net income of $80.0 million, compared to a net loss of $3.4 million in the same period in 2023.
Financial Position
As of September 30, 2024, SBRA's total assets amounted to $86.9 million and total liabilities were $2.3 billion. The equity stood at $2.7 billion.
Dividends
During the nine months ended September 30, 2024, SBRA paid dividends totaling $209.2 million. A quarterly cash dividend of $0.30 per share was declared on October 31, 2024.
Future Commitments
As of September 30, 2024, SBRA had future capital expenditure commitments of approximately $15 million, primarily for facility improvements.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Rental Income | $285.4 million | $283.2 million |
| Resident Fees & Services | $207.7 million | $174.9 million |
| Interest & Other Income | $27.7 million | $26.0 million |
| Total Expenses | $436.8 million | $409.0 million |
| Net Income (Loss) | $80.0 million | $(3.4 million) |
| Total Assets | $86.9 million | $72.7 million |
| Total Liabilities | $2.3 billion | $2.3 billion |
| Equity | $2.7 billion | $2.8 billion |
| Dividends Paid | $209.2 million | Not available |
| Future Capital Commitments | $15 million | Not available |
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Article updated on 8 Nov 2024
Resources:
- Sabra Health Care REIT, Inc. (SBRA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sabra Health Care REIT, Inc. (SBRA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sabra Health Care REIT, Inc. (SBRA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.