Sabra Health Care REIT, Inc. Q1 FY2025 earnings call

• Skilled nursing and triple-net senior housing EBITDA and rent coverage set new highs; behavioral EBITDA at highest since 2023.
• Contract labor improving; skilled and triple-net senior housing occupancy up.
• Deal pipeline busy with over $200 million awarded, more than 2024; mix of deals with existing and new operators.
• Managed senior housing portfolio held up despite seasonality; same-store portfolio had strong performance with revenue, occupancy, RevPOR growth.
• Balance sheet: net debt to adjusted EBITDA ratio improved; used ATM to raise equity; declared quarterly cash dividend of $0.30 per share.

Skilled nursing and triple-net senior housing EBITDA was 2.19 and rent coverage was 1.41, respectively; behavioral EBITDA hit its highest level since year-end 2023 at 3.77. Sabra's managed senior housing portfolio had flat sequential revenue, cash NOI, and margin for the total managed portfolio. The same-store managed senior housing portfolio (excluding non-stabilized assets) had revenue growth of 6.3% YOY, occupancy 85.4% (83% domestic, 90.9% Canadian), RevPOR up 2.8% YOY, cash NOI grew 16.9% YOY. Cash rental income from triple-net portfolio was $90 million for the quarter, up from $89 million in Q1 2024.

• Reaffirmed 2025 earnings guidance, Q1 results in line with assumptions.
• Acquisitions awarded not included in current guidance; will be included when closed.
• Same-store cash NOI growth guidance of low to mid-teens remains unchanged.

• Forward-looking statements subject to risks in Form 10-K and 8-K.
• Medicaid rate increases and provider taxes could impact financial results.
• Behavioral health segment is dynamic with occupancy fluctuations.

Q: On dispositions, is the $50 million skilled nursing facility sale still on track?

A: Still expected to close, just more regulatory hoops; proceeds unchanged.

Q: Are acquisitions awarded included in guidance?

A: No, not included; will be incorporated when closed.

Q: Thoughts on competition in deal flow for SHOP?

A: Private equity buyers largely out; public REITs active; pricing tight on bid deals.

Q: Details on Genesis exposure?

A: Sold most Genesis assets, subleased 8, Genesis guarantees stub, not material.

Q: Changes to underwriting criteria for deals?

A: No changes to underwriting, focused on accretive deals and strategic relationships.