Sabra Health Care REIT (SBRA) 10-Q 2014 Q1 Quarterly report

SABRA HEALTH CARE REIT, INC. AND SUBSIDIARIES

COMPUTATION OF RATIOS OF EARNINGS TO COMBINED FIXED CHARGES

AND PREFERRED STOCK DIVIDENDS

(dollars in thousands)

		Three Months Ended March 31,
		2014			2013
Earnings
	Pre-tax net income	$	(7,321	)	$	9,557
	Add:
	Fixed charges	11,142			10,010
	Noncontrolling interest	18			—
Earnings, as adjusted		$	3,839		$	19,567
Fixed charges
	Interest expensed and capitalized	$	10,222		$	9,435
	Amortized premiums, discounts and capitalized expenses related to indebtedness	912			567
	Estimate of interest within rental expense	8			8
Fixed charges, as adjusted		11,142			10,010
Preferred stock dividends		2,561			304
Combined fixed charges and preferred stock dividends		$	13,703		$	10,314
Ratio of earnings to combined fixed charges and preferred stock dividends (1)		0.28		x	1.90		x

⁽¹⁾ The ratio coverage during the three months ended March 31, 2014 was less than 1:1. The registrant would have needed to generate additional earnings of $9.9 million to achieve a coverage of 1:1 during the three months ended March 31, 2014.