Reconciliations of Non-GAAP Financial Measures
December 31, 2019
(Unaudited)
SABRA HEALTH CARE REIT, INC.
2020 OUTLOOK
The table below sets forth our 2020 full year guidance (per diluted common share):
|
| | | | | | | |
| | Low | | High |
| Net income attributable to common stockholders | $ | 0.81 |
| | $ | 0.91 |
|
| Add: | | | |
| Depreciation and amortization of real estate assets | 0.84 |
| | 0.84 |
|
| Depreciation and amortization of real estate assets related to unconsolidated joint venture | 0.10 |
| | 0.10 |
|
| Net gain on sales of real estate and impairment of real estate | (0.06 | ) | | (0.06 | ) |
| FFO attributable to common stockholders | $ | 1.69 |
| | $ | 1.79 |
|
| | | | |
Normalizing items (1) | 0.02 |
| | 0.02 |
|
| Normalized FFO attributable to common stockholders | $ | 1.71 |
| | $ | 1.81 |
|
| | | | |
| FFO attributable to common stockholders | 1.69 |
| | 1.79 |
|
| Stock-based compensation expense | 0.05 |
| | 0.05 |
|
| Non-cash rental and related revenues | (0.10 | ) | | (0.10 | ) |
| Non-cash interest expense | 0.04 |
| | 0.04 |
|
| Other non-cash adjustments | 0.02 |
| | 0.02 |
|
| AFFO attributable to common stockholders | $ | 1.70 |
| | $ | 1.80 |
|
| | | | |
| Normalizing items | — |
| | — |
|
| Normalized AFFO attributable to common stockholders | $ | 1.70 |
| | $ | 1.80 |
|
| | | | |
Except as otherwise noted above, the foregoing projections reflect management’s view of current and future market conditions. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above. Except as otherwise required by law, the Company assumes no, and hereby disclaims any, obligation to update any of the foregoing projections as a result of new information or new or future developments.
(1) Normalizing items primarily reflect straight-line rent receivable write-offs.
SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
FFO, Normalized FFO, AFFO and Normalized AFFO
(dollars in thousands, except per share data)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended December 31, | | Year Ended December 31, |
| | 2019 | | 2018 | | 2019 | | 2018 |
| Net income (loss) attributable to common stockholders | $ | 39,741 |
| | $ | (19,394 | ) | | $ | 68,996 |
| | $ | 269,314 |
|
| Add: | | | | | | | |
| Depreciation and amortization of real estate assets | 44,032 |
| | 48,078 |
| | 181,549 |
| | 191,379 |
|
| Depreciation and amortization of real estate assets related to noncontrolling interests | — |
| | (40 | ) | | (93 | ) | | (159 | ) |
| Depreciation and amortization of real estate assets related to unconsolidated joint venture | 5,547 |
| | 5,324 |
| | 21,649 |
| | 21,253 |
|
| Net (gain) loss on sales of real estate | (1,084 | ) | | 14,247 |
| | (2,300 | ) | | (128,198 | ) |
| Net loss on sales of real estate related to unconsolidated joint venture | — |
| | — |
| | 1,690 |
| | — |
|
| Impairment of real estate | 2,717 |
| | — |
| | 121,819 |
| | 1,413 |
|
| FFO attributable to common stockholders | $ | 90,953 |
| | $ | 48,215 |
| | $ | 393,310 |
| | $ | 355,002 |
|
| Lease termination income | (854 | ) | | — |
| | (67,802 | ) | | — |
|
| Loss on extinguishment of debt | 5,577 |
| | 2,917 |
| | 16,340 |
| | 2,917 |
|
| (Recovery of) provision for doubtful accounts and loan losses, net | (219 | ) | | 28,848 |
| | 1,238 |
| | 30,243 |
|
Other normalizing items (1) | 115 |
| | 10,263 |
| | 12,656 |
| | 21,385 |
|
| Normalized FFO attributable to common stockholders | $ | 95,572 |
| | $ | 90,243 |
| | $ | 355,742 |
| | $ | 409,547 |
|
| FFO attributable to common stockholders | $ | 90,953 |
| | $ | 48,215 |
| | $ | 393,310 |
| | $ | 355,002 |
|
| Merger and acquisition costs | 232 |
| | 43 |
| | 424 |
| | 636 |
|
| Stock-based compensation expense | 990 |
| | 1,373 |
| | 9,819 |
| | 7,648 |
|
| Non-cash rental and related revenues | (6,484 | ) | | (6,232 | ) | | (19,449 | ) | | (36,443 | ) |
| Non-cash interest income | (532 | ) | | (578 | ) | | (2,212 | ) | | (2,300 | ) |
| Non-cash interest expense | 2,234 |
| | 2,589 |
| | 10,080 |
| | 10,137 |
|
| Non-cash portion of loss on extinguishment of debt | 1,972 |
| | 874 |
| | 5,838 |
| | 874 |
|
| (Recovery of) provision for doubtful straight-line rental income, loan losses and other reserves | (219 | ) | | 29,513 |
| | 1,238 |
| | 40,806 |
|
| Non-cash lease termination income | (854 | ) | | — |
| | (10,579 | ) | | — |
|
| Other non-cash adjustments related to unconsolidated joint venture | 1,212 |
| | 1,520 |
| | 4,135 |
| | 2,652 |
|
| Other non-cash adjustments | 76 |
| | (30 | ) | | 171 |
| | 25 |
|
| AFFO attributable to common stockholders | $ | 89,580 |
| | $ | 77,287 |
| | $ | 392,775 |
| | $ | 379,037 |
|
| Cash portion of lease termination income | — |
| | — |
| | (57,223 | ) | | — |
|
| Cash portion of loss on extinguishment of debt | 3,605 |
| | 2,043 |
| | 10,502 |
| | 2,043 |
|
| Recovery of doubtful cash income | — |
| | (508 | ) | | — |
| | (2,668 | ) |
Other normalizing items (1) | (10 | ) | | 5,002 |
| | 5,056 |
| | 9,374 |
|
| Normalized AFFO attributable to common stockholders | $ | 93,175 |
| | $ | 83,824 |
| | $ | 351,110 |
| | $ | 387,786 |
|
| Amounts per diluted common share attributable to common stockholders: | | | | | | |
| Net income (loss) | $ | 0.20 |
| | $ | (0.11 | ) | | $ | 0.37 |
| | $ | 1.51 |
|
| FFO | $ | 0.46 |
| | $ | 0.27 |
| | $ | 2.09 |
| | $ | 1.99 |
|
| Normalized FFO | $ | 0.48 |
| | $ | 0.50 |
| | $ | 1.89 |
| | $ | 2.29 |
|
| AFFO | $ | 0.45 |
| | $ | 0.43 |
| | $ | 2.08 |
| | $ | 2.11 |
|
| Normalized AFFO | $ | 0.47 |
| | $ | 0.47 |
| | $ | 1.86 |
| | $ | 2.16 |
|
| Weighted average number of common shares outstanding, diluted: | | | | | | | |
| Net income (loss) | 199,048,481 |
| | 178,314,638 |
| | 188,127,092 |
| | 178,721,744 |
|
| FFO and Normalized FFO | 199,048,481 |
| | 178,932,966 |
| | 188,127,092 |
| | 178,721,744 |
|
| AFFO and Normalized AFFO | 199,496,049 |
| | 179,394,677 |
| | 188,775,872 |
| | 179,338,881 |
|
| |
(1) | For FFO and AFFO, the three months and year ended December 31, 2019 include a $1.7 million settlement payment received related to a legacy Care Capital Properties, Inc. (“CCP”) investment, and $0.6 million and $1.6 million, respectively, of incremental interest expense related to the redemption of the 2021 Notes and 2023 Notes. For AFFO, the year ended December 31, 2019 includes $1.4 million of write-offs related to straight-line rent receivables and $5.9 million of write-offs related to above/below market rent intangibles. For FFO, the three months and year ended December 31, 2018 include $5.2 million and $11.5 million, respectively, of acceleration of above market lease intangible amortization. For FFO and AFFO, the year ended December 31, 2018 also includes $5.5 million of capitalized issuance costs written off as a result of the preferred stock redemption and $3.2 million earned during the period related to a legacy CCP investment. In addition, other normalizing items for FFO include un-reimbursed triple-net operating expenses and CCP merger and transition costs, and other normalizing items for AFFO include un-reimbursed triple-net operating expenses and CCP transition costs. |
|
| | |
| See reporting definitions. | 3 |
SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
EBITDA, Adjusted EBITDA, Annualized Adjusted EBITDA and Annualized Adjusted EBITDA, As Adjusted
(in thousands)
|
| | | | | | | |
| | Year Ended December 31, |
| | 2019 | | 2018 |
| Net income attributable to Sabra Health Care REIT, Inc. | $ | 68,996 |
| | $ | 279,082 |
|
| Interest | 126,610 |
| | 147,106 |
|
| Income tax expense | 3,402 |
| | 3,011 |
|
| Depreciation and amortization | 181,549 |
| | 191,379 |
|
| EBITDA | $ | 380,557 |
| | $ | 620,578 |
|
| | | | |
| Loss from unconsolidated joint venture | 6,796 |
| | 5,431 |
|
| Distributions from unconsolidated joint venture | 13,865 |
| | 8,910 |
|
| Stock-based compensation expense | 9,819 |
| | 7,648 |
|
| Merger and acquisition costs | 424 |
| | 636 |
|
| CCP transition costs | 197 |
| | 1,461 |
|
| Provision for doubtful straight-line rental income, loan losses and other reserves | 1,238 |
| | 33,281 |
|
| Impairment of real estate | 121,819 |
| | 1,413 |
|
| Loss on extinguishment of debt | 16,340 |
| | 2,917 |
|
| Other income | 2,482 |
| | 239 |
|
| Lease termination income | (67,802 | ) | | — |
|
| Net gain on sales of real estate | (2,300 | ) | | (128,198 | ) |
Adjusted EBITDA (1) | $ | 483,435 |
| | $ | 554,316 |
|
| | | | |
Annualizing adjustments (2) | 2,640 |
| | (354 | ) |
Annualized Adjusted EBITDA (3) | $ | 486,075 |
| | $ | 553,962 |
|
| | | | |
| Adjustment for: | | | |
| Distributions from unconsolidated joint venture | (13,865 | ) | | (8,910 | ) |
EBITDA from unconsolidated joint venture (4) | 39,132 |
| | 35,960 |
|
Annualized Adjusted EBITDA, as adjusted (5) | $ | 511,342 |
| | $ | 581,012 |
|
| |
(1) | Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation and amortization (“EBITDA”) excluding the impact of merger-related costs, stock-based compensation expense under the Company’s long-term equity award program and loan loss reserves. |
| |
(2) | Annualizing adjustments give effect to the acquisitions and dispositions completed during the twelve months ended for the respective period as though such acquisitions and dispositions were completed as of the beginning of the period. |
| |
(3) | Annualized Adjusted EBITDA is calculated as Adjusted EBITDA as adjusted to give effect to the adjustments described in footnote 2 above. |
(4) Represents Sabra’s pro rata share of unconsolidated joint venture EBITDA.
(5) Annualized Adjusted EBITDA, as adjusted is used in the calculation of Net Debt to Adjusted EBITDA - Including Unconsolidated Joint Venture.
|
| | |
| See reporting definitions. | 4 |
SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Consolidated Statements of Income
Supplemental Information
(in thousands)
|
| | | | | | | | | | | | | | | |
| | Three Months Ended December 31, | | Year Ended December 31, |
| | 2019 | | 2018 | | 2019 | | 2018 |
| Cash rental income | $ | 101,709 |
| | $ | 111,423 |
| | $ | 415,050 |
| | $ | 500,162 |
|
| Straight-line rental income | 4,874 |
| | 9,740 |
| | 20,401 |
| | 44,144 |
|
| Straight-line rental income receivable write-offs | — |
| | — |
| | (1,460 | ) | | — |
|
| Above/below market lease amortization | 1,610 |
| | 1,719 |
| | 6,413 |
| | 3,777 |
|
| Above/below market lease intangible write-offs | — |
| | (5,228 | ) | | (5,905 | ) | | (11,478 | ) |
| Recoveries | 4,654 |
| | — |
| | 17,639 |
| | — |
|
| Rental and related revenues | $ | 112,847 |
| | $ | 117,654 |
| | $ | 452,138 |
| | $ | 536,605 |
|
| | | | | | | | |
|
| | |
| See reporting definitions. | 5 |
SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Cash NOI by Facility Type
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended December 31, 2019 |
| | Skilled Nursing/ Transitional Care | | Senior Housing | | Specialty Hospitals and Other | | | | | | |
| | | Senior Housing - Leased | | Senior Housing - Managed (Wholly-Owned) | | Senior Housing - Managed (Unconsolidated JV) | | Total Senior Housing | | | Interest and Other Income | | Corporate | | Total |
| Net income (loss) | $ | 52,311 |
| | $ | 5,649 |
| | $ | 5,515 |
| | $ | (1,161 | ) | | $ | 10,003 |
| | $ | 10,059 |
| | $ | 4,395 |
| | $ | (37,027 | ) | | $ | 39,741 |
|
| Adjustments: | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | 27,725 |
| | 4,901 |
| | 7,007 |
| | — |
| | 11,908 |
| | 4,384 |
| | — |
| | 15 |
| | 44,032 |
|
| Interest | 665 |
| | 445 |
| | — |
| | — |
| | 445 |
| | — |
| | — |
| | 26,319 |
| | 27,429 |
|
| General and administrative | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 5,702 |
| | 5,702 |
|
| Merger and acquisition costs | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 232 |
| | 232 |
|
| Recovery of doubtful accounts, straight-line rental income and loan losses | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (219 | ) | | (219 | ) |
| Impairment of real estate | 2,717 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 2,717 |
|
| Loss on extinguishment of debt | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 5,577 |
| | 5,577 |
|
| Other income | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (1,709 | ) | | (1,709 | ) |
| Net gain on sales of real estate | (1,084 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (1,084 | ) |
| Loss from unconsolidated JV | — |
| | — |
| | — |
| | 1,161 |
| | 1,161 |
| | — |
| | — |
| | — |
| | 1,161 |
|
| Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 1,110 |
| | 1,110 |
|
| Sabra’s share of unconsolidated JV Net Operating Income | — |
| | — |
| | — |
| | 10,089 |
| | 10,089 |
| | — |
| | — |
| | — |
| | 10,089 |
|
| | | | | | | | | | | | | | | | | | |
| Net Operating Income | $ | 82,334 |
| | $ | 10,995 |
| | $ | 12,522 |
| | $ | 10,089 |
| | $ | 33,606 |
| | $ | 14,443 |
| | $ | 4,395 |
| | $ | — |
| | $ | 134,778 |
|
| | | | | | | | | | | | | | | | | | |
| Non-cash revenue and expense adjustments | (4,745 | ) | | (524 | ) | | — |
| | — |
| | (524 | ) | | (1,187 | ) | | (1,386 | ) | | — |
| | (7,842 | ) |
| | | | | | | | | | | | | | | | | | |
| Cash Net Operating Income | $ | 77,589 |
| | $ | 10,471 |
| | $ | 12,522 |
| | $ | 10,089 |
| | $ | 33,082 |
| | $ | 13,256 |
| | $ | 3,009 |
| | $ | — |
| | $ | 126,936 |
|
| | | | | | | | | | | | | | | | | | |
| Cash Net Operating Income not included in same store | (146 | ) | | (134 | ) | | (7,051 | ) | | — |
| | (7,185 | ) | | (700 | ) | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Same store Cash Net Operating Income | $ | 77,443 |
| | $ | 10,337 |
| | $ | 5,471 |
| | $ | 10,089 |
| | $ | 25,897 |
| | $ | 12,556 |
| | | | | | |
|
| | |
| See reporting definitions. | 6 |
SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Cash NOI by Facility Type
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2019 |
| | Skilled Nursing/ Transitional Care | | Senior Housing | | Specialty Hospitals and Other | | | | | | |
| | | Senior Housing - Leased | | Senior Housing - Managed (Wholly-Owned) | | Senior Housing - Managed (Unconsolidated JV) | | Total Senior Housing | | | Interest and Other Income | | Corporate | | Total |
| Net income (loss) | $ | 48,511 |
| | $ | (5,139 | ) | | $ | 5,719 |
| | $ | (605 | ) | | $ | (25 | ) | | $ | 9,648 |
| | $ | 3,325 |
| | $ | (38,173 | ) | | $ | 23,286 |
|
| Adjustments: | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | 27,332 |
| | 4,717 |
| | 6,707 |
| | — |
| | 11,424 |
| | 4,325 |
| | — |
| | 11 |
| | 43,092 |
|
| Interest | 669 |
| | 445 |
| | — |
| | — |
| | 445 |
| | — |
| | — |
| | 28,141 |
| | 29,255 |
|
| General and administrative | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 8,579 |
| | 8,579 |
|
| Merger and acquisition costs | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 130 |
| | 130 |
|
| Provision for doubtful accounts, straight-line rental income and loan losses | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 57 |
| | 57 |
|
| Impairment of real estate | 3,131 |
| | 10,835 |
| | — |
| | — |
| | 10,835 |
| | — |
| | — |
| | — |
| | 13,966 |
|
| Loss on extinguishment of debt | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 644 |
| | 644 |
|
| Other income | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (215 | ) | | (215 | ) |
| Net loss on sales of real estate | 19 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 19 |
|
| Loss from unconsolidated JV | — |
| | — |
| | — |
| | 605 |
| | 605 |
| | — |
| | — |
| | — |
| | 605 |
|
| Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 826 |
| | 826 |
|
| Sabra’s share of unconsolidated JV Net Operating Income | — |
| | — |
| | — |
| | 10,115 |
| | 10,115 |
| | — |
| | — |
| | — |
| | 10,115 |
|
| | | | | | | | | | | | | | | | | | |
| Net Operating Income | $ | 79,662 |
| | $ | 10,858 |
| | $ | 12,426 |
| | $ | 10,115 |
| | $ | 33,399 |
| | $ | 13,973 |
| | $ | 3,325 |
| | $ | — |
| | $ | 130,359 |
|
| | | | | | | | | | | | | | | | | | |
| Non-cash revenue and expense adjustments | (3,137 | ) | | (614 | ) | | — |
| | — |
| | (614 | ) | | (1,175 | ) | | (555 | ) | | — |
| | (5,481 | ) |
| Foreign exchange rate adjustment | — |
| | — |
| | 1 |
| | — |
| | 1 |
| | — |
| | — |
| | — |
| | 1 |
|
| | | | | | | | | | | | | | | | | | |
| Cash Net Operating Income | $ | 76,525 |
| | $ | 10,244 |
| | $ | 12,427 |
| | $ | 10,115 |
| | $ | 32,786 |
| | $ | 12,798 |
| | $ | 2,770 |
| | $ | — |
| | $ | 124,879 |
|
| | | | | | | | | | | | | | | | | | |
| Cash Net Operating Income not included in same store | (664 | ) | | (208 | ) | | (7,284 | ) | | — |
| | (7,492 | ) | | (267 | ) | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Same store Cash Net Operating Income | $ | 75,861 |
| | $ | 10,036 |
| | $ | 5,143 |
| | $ | 10,115 |
| | $ | 25,294 |
| | $ | 12,531 |
| | | | | | |
|
| | |
| See reporting definitions. | 7 |
SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Cash NOI by Facility Type
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, 2019 |
| | Skilled Nursing/ Transitional Care | | Senior Housing | | Specialty Hospitals and Other | | | | | | |
| | | Senior Housing - Leased | | Senior Housing - Managed (Wholly-Owned) | | Senior Housing - Managed (Unconsolidated JV) | | Total Senior Housing | | | Interest and Other Income | | Corporate | | Total |
| Net income (loss) | $ | 52,008 |
| | $ | 7,072 |
| | $ | (312 | ) | | $ | (3,647 | ) | | $ | 3,113 |
| | $ | 9,787 |
| | $ | 70,495 |
| | $ | (51,720 | ) | | $ | 83,683 |
|
| Adjustments: | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | 28,224 |
| | 4,672 |
| | 12,332 |
| | — |
| | 17,004 |
| | 4,236 |
| | — |
| | 12 |
| | 49,476 |
|
| Interest | 676 |
| | 450 |
| | — |
| | — |
| | 450 |
| | — |
| | — |
| | 32,482 |
| | 33,608 |
|
| General and administrative | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 8,004 |
| | 8,004 |
|
| Merger and acquisition costs | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 55 |
| | 55 |
|
| Provision for doubtful accounts, straight-line rental income and loan losses | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 193 |
| | 193 |
|
| Impairment of real estate | 2,002 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 2,002 |
|
| Loss on extinguishment of debt | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 10,119 |
| | 10,119 |
|
| Other loss | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 1 |
| | 1 |
|
| Net gain on sales of real estate | (2,262 | ) | | (305 | ) | | (188 | ) | | — |
| | (493 | ) | | — |
| | — |
| | — |
| | (2,755 | ) |
| Loss from unconsolidated JV | — |
| | — |
| | — |
| | 3,647 |
| | 3,647 |
| | — |
| | — |
| | — |
| | 3,647 |
|
| Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 854 |
| | 854 |
|
| Sabra’s share of unconsolidated JV Net Operating Income | — |
| | — |
| | — |
| | 9,361 |
| | 9,361 |
| | — |
| | — |
| | — |
| | 9,361 |
|
| | | | | | | | | | | | | | | | | | |
| Net Operating Income | $ | 80,648 |
| | $ | 11,889 |
| | $ | 11,832 |
| | $ | 9,361 |
| | $ | 33,082 |
| | $ | 14,023 |
| | $ | 70,495 |
| | $ | — |
| | $ | 198,248 |
|
| | | | | | | | | | | | | | | | | | |
| Non-cash revenue and expense adjustments | (4,945 | ) | | (643 | ) | | — |
| | — |
| | (643 | ) | | (1,227 | ) | | (10,288 | ) | | — |
| | (17,103 | ) |
| Foreign exchange rate adjustment | — |
| | — |
| | 31 |
| | — |
| | 31 |
| | — |
| | — |
| | — |
| | 31 |
|
| | | | | | | | | | | | | | | | | | |
| Cash Net Operating Income | $ | 75,703 |
| | $ | 11,246 |
| | $ | 11,863 |
| | $ | 9,361 |
| | $ | 32,470 |
| | $ | 12,796 |
| | $ | 60,207 |
| | $ | — |
| | $ | 181,176 |
|
| | | | | | | | | | | | | | | | | | |
| Cash Net Operating Income not included in same store | | | | | (6,952 | ) | | 20 |
| |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Same store Cash Net Operating Income |
| |
| | $ | 4,911 |
| | $ | 9,381 |
| |
| |
| | | | | | |
|
| | |
| See reporting definitions. | 8 |
SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Cash NOI by Facility Type
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, 2019 |
| | Skilled Nursing/ Transitional Care | | Senior Housing | | Specialty Hospitals and Other | | | | | | |
| | | Senior Housing - Leased | | Senior Housing - Managed (Wholly-Owned) | | Senior Housing - Managed (Unconsolidated JV) | | Total Senior Housing | | | Interest and Other Income | | Corporate | | Total |
| Net (loss) income | $ | (56,728 | ) | | $ | 9,626 |
| | $ | 2,644 |
| | $ | (1,383 | ) | | $ | 10,887 |
| | $ | 9,845 |
| | $ | 3,325 |
| | $ | (45,021 | ) | | $ | (77,692 | ) |
| Adjustments: | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | 29,601 |
| | 8,803 |
| | 2,377 |
| | — |
| | 11,180 |
| | 4,156 |
| | — |
| | 12 |
| | 44,949 |
|
| Interest | 687 |
| | 454 |
| | — |
| | — |
| | 454 |
| | — |
| | — |
| | 35,177 |
| | 36,318 |
|
| General and administrative | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 8,178 |
| | 8,178 |
|
| Merger and acquisition costs | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 6 |
| | 6 |
|
| Provision for doubtful accounts, straight-line rental income and loan losses | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 1,207 |
| | 1,207 |
|
| Impairment of real estate | 99,353 |
| | 3,781 |
| | — |
| | — |
| | 3,781 |
| | — |
| | — |
| | — |
| | 103,134 |
|
| Other income | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (171 | ) | | (171 | ) |
| Net loss on sales of real estate | 1,520 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 1,520 |
|
| Loss from unconsolidated JV | — |
| | — |
| | — |
| | 1,383 |
| | 1,383 |
| | — |
| | — |
| | — |
| | 1,383 |
|
| Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 612 |
| | 612 |
|
| Sabra’s share of unconsolidated JV Net Operating Income | — |
| | — |
| | — |
| | 9,829 |
| | 9,829 |
| | — |
| | — |
| | — |
| | 9,829 |
|
| | | | | | | | | | | | | | | | | | |
| Net Operating Income | $ | 74,433 |
| | $ | 22,664 |
| | $ | 5,021 |
| | $ | 9,829 |
| | $ | 37,514 |
| | $ | 14,001 |
| | $ | 3,325 |
| | $ | — |
| | $ | 129,273 |
|
| | | | | | | | | | | | | | | | | | |
| Non-cash revenue and expense adjustments | 978 |
| | (716 | ) | | — |
| | — |
| | (716 | ) | | (1,393 | ) | | (562 | ) | | — |
| | (1,693 | ) |
| Foreign exchange rate adjustment | — |
| | — |
| | 17 |
| | — |
| | 17 |
| | — |
| | — |
| | — |
| | 17 |
|
| | | | | | | | | | | | | | | | | | |
| Cash Net Operating Income | $ | 75,411 |
| | $ | 21,948 |
| | $ | 5,038 |
| | $ | 9,829 |
| | $ | 36,815 |
| | $ | 12,608 |
| | $ | 2,763 |
| | $ | — |
| | $ | 127,597 |
|
| | | | | | | | | | | | | | | | | | |
| Cash Net Operating Income not included in same store | | | | | — |
| | 6 |
| |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Same store Cash Net Operating Income |
| |
| | $ | 5,038 |
| | $ | 9,835 |
| |
| |
| | | | | | |
|
| | |
| See reporting definitions. | 9 |
SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Cash NOI by Facility Type
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended December 31, 2018 |
| | Skilled Nursing/ Transitional Care | | Senior Housing | | Specialty Hospitals and Other | | | | | | |
| | | Senior Housing - Leased | | Senior Housing - Managed (Wholly-Owned) | | Senior Housing - Managed (Unconsolidated JV) | | Total Senior Housing | | | Interest and Other Income | | Corporate | | Total |
| Net income (loss) | $ | 33,892 |
| | $ | 12,435 |
| | $ | 2,776 |
| | $ | (1,805 | ) | | $ | 13,406 |
| | $ | 9,533 |
| | $ | 3,844 |
| | $ | (80,058 | ) | | $ | (19,383 | ) |
| Adjustments: | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | 32,440 |
| | 8,889 |
| | 2,371 |
| | — |
| | 11,260 |
| | 4,156 |
| | — |
| | 222 |
| | 48,078 |
|
| Interest | 1,656 |
| | 458 |
| | — |
| | — |
| | 458 |
| | — |
| | — |
| | 35,112 |
| | 37,226 |
|
| General and administrative | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 11,298 |
| | 11,298 |
|
| Merger and acquisition costs | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 43 |
| | 43 |
|
| Provision for doubtful accounts, straight-line rental income and loan losses | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 29,626 |
| | 29,626 |
|
| Loss on extinguishment of debt | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 2,917 |
| | 2,917 |
|
| Other income | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (324 | ) | | (324 | ) |
| Net loss on sales of real estate | 12,581 |
| | 1,614 |
| | 52 |
| | — |
| | 1,666 |
| | — |
| | — |
| | — |
| | 14,247 |
|
| Loss from unconsolidated JV | — |
| | — |
| | — |
| | 1,805 |
| | 1,805 |
| | — |
| | — |
| | — |
| | 1,805 |
|
| Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 1,164 |
| | 1,164 |
|
| Sabra’s share of unconsolidated JV Net Operating Income | — |
| | — |
| | — |
| | 9,918 |
| | 9,918 |
| | — |
| | — |
| | — |
| | 9,918 |
|
| | | | | | | | | | | | | | | | | | |
| Net Operating Income | $ | 80,569 |
| | $ | 23,396 |
| | $ | 5,199 |
| | $ | 9,918 |
| | $ | 38,513 |
| | $ | 13,689 |
| | $ | 3,844 |
| | $ | — |
| | $ | 136,615 |
|
| | | | | | | | | | | | | | | | | | |
| Non-cash revenue and expense adjustments | (3,196 | ) | | (1,521 | ) | | — |
| | — |
| | (1,521 | ) | | (1,512 | ) | | (578 | ) | | — |
| | (6,807 | ) |
| | | | | | | | | | | | | | | | | | |
| Cash Net Operating Income | $ | 77,373 |
| | $ | 21,875 |
| | $ | 5,199 |
| | $ | 9,918 |
| | $ | 36,992 |
| | $ | 12,177 |
| | $ | 3,266 |
| | $ | — |
| | $ | 129,808 |
|
| | | | | | | | | | | | | | | | | | |
| Cash Net Operating Income not included in same store | | | | | (28 | ) | | 34 |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Same store Cash Net Operating Income | | | | | $ | 5,171 |
| | $ | 9,952 |
| | | | | | | | | | |
|
| | |
| See reporting definitions. | 10 |
SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Annualized Cash NOI by Facility Type
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, 2019 |
| | Skilled Nursing/ Transitional Care | | Senior Housing | | Specialty Hospitals and Other | | | | | | |
| | | Senior Housing - Leased | | Senior Housing - Managed (Wholly-Owned) | | Senior Housing - Managed (Unconsolidated JV) | | Total Senior Housing | | | Interest and Other Income | | Corporate | | Total |
| Net income (loss) | $ | 96,102 |
| | $ | 17,208 |
| | $ | 13,566 |
| | $ | (6,796 | ) | | $ | 23,978 |
| | $ | 39,339 |
| | $ | 81,540 |
| | $ | (171,941 | ) | | $ | 69,018 |
|
| Adjustments: | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | 112,882 |
| | 23,093 |
| | 28,423 |
| | — |
| | 51,516 |
| | 17,101 |
| | — |
| | 50 |
| | 181,549 |
|
| Interest | 2,697 |
| | 1,794 |
| | — |
| | — |
| | 1,794 |
| | — |
| | — |
| | 122,119 |
| | 126,610 |
|
| General and administrative | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 30,462 |
| | 30,462 |
|
| Merger and acquisition costs | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 424 |
| | 424 |
|
| Provision for doubtful accounts, straight-line rental income and loan losses | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 1,238 |
| | 1,238 |
|
| Impairment of real estate | 107,203 |
| | 14,616 |
| | — |
| | — |
| | 14,616 |
| | — |
| | — |
| | — |
| | 121,819 |
|
| Loss on extinguishment of debt | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 16,340 |
| | 16,340 |
|
| Other income | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (2,094 | ) | | (2,094 | ) |
| Net gain on sales of real estate | (1,807 | ) | | (305 | ) | | (188 | ) | | — |
| | (493 | ) | | — |
| | — |
| | — |
| | (2,300 | ) |
| Loss from unconsolidated JV | — |
| | — |
| | — |
| | 6,796 |
| | 6,796 |
| | — |
| | — |
| | — |
| | 6,796 |
|
| Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 3,402 |
| | 3,402 |
|
| Sabra’s share of unconsolidated JV Net Operating Income | — |
| | — |
| | — |
| | 39,394 |
| | 39,394 |
| | — |
| | — |
| | — |
| | 39,394 |
|
| | | | | | | | | | | | | | | | | | |
| Net Operating Income | $ | 317,077 |
| | $ | 56,406 |
| | $ | 41,801 |
| | $ | 39,394 |
| | $ | 137,601 |
| | $ | 56,440 |
| | $ | 81,540 |
| | $ | — |
| | $ | 592,658 |
|
| | | | | | | | | | | | | | | | | | |
| Non-cash revenue and expense adjustments | (11,849 | ) | | (2,497 | ) | | — |
| | — |
| | (2,497 | ) | | (4,982 | ) | | (12,791 | ) | | — |
| | (32,119 | ) |
| | | | | | | | | | | | | | | | | | |
| Cash Net Operating Income | $ | 305,228 |
| | $ | 53,909 |
| | $ | 41,801 |
| | $ | 39,394 |
| | $ | 135,104 |
| | $ | 51,458 |
| | $ | 68,749 |
| | $ | — |
| | $ | 560,539 |
|
| | | | | | | | | | | | | | | | | | |
| Annualizing adjustments | 16,249 |
| | (2,597 | ) | | 8,748 |
| | 961 |
| | 7,112 |
| | 275 |
| | (757 | ) | | — |
| | 22,879 |
|
| Cash portion of lease termination income | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (57,223 | ) | | — |
| | (57,223 | ) |
| | | | | | | | | | | | | | | | | | |
| Annualized Cash Net Operating Income | $ | 321,477 |
| | $ | 51,312 |
| | $ | 50,549 |
| | $ | 40,355 |
| | $ | 142,216 |
| | $ | 51,733 |
| | $ | 10,769 |
| | $ | — |
| | $ | 526,195 |
|
| | | | | | | | | | | | | | | | | | |
| Annualized Cash Net Operating Income not included in same store | | | | | (29,985 | ) | | (935 | ) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Same store Cash Net Operating Income | | | | | $ | 20,564 |
| | $ | 39,420 |
| | | | | | | | | | |
|
| | |
| See reporting definitions. | 11 |
SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Cash NOI by Facility Type
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, 2018 |
| | Skilled Nursing/ Transitional Care | | Senior Housing | | Specialty Hospitals and Other | | | | | | |
| | | Senior Housing - Leased | | Senior Housing - Managed (Wholly-Owned) | | Senior Housing - Managed (Unconsolidated JV) | | Total Senior Housing | | | Interest and Other Income | | Corporate | | Total |
| Net income (loss) | $ | 360,256 |
| | $ | 75,838 |
| | $ | 9,827 |
| | $ | (5,431 | ) | | $ | 80,234 |
| | $ | 37,893 |
| | $ | 16,667 |
| | $ | (215,935 | ) | | $ | 279,115 |
|
| Adjustments: | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | 128,391 |
| | 34,759 |
| | 10,712 |
| | — |
| | 45,471 |
| | 16,630 |
| | — |
| | 887 |
| | 191,379 |
|
| Interest | 7,811 |
| | 1,864 |
| | — |
| | — |
| | 1,864 |
| | — |
| | — |
| | 137,431 |
| | 147,106 |
|
| General and administrative | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 36,458 |
| | 36,458 |
|
| Merger and acquisition costs | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 636 |
| | 636 |
|
| Provision for doubtful accounts, straight-line rental income and loan losses | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 39,075 |
| | 39,075 |
|
| Impairment of real estate | 881 |
| | 532 |
| | — |
| | — |
| | 532 |
| | — |
| | — |
| | — |
| | 1,413 |
|
| Loss on extinguishment of debt | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 2,917 |
| | 2,917 |
|
| Other income | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (4,480 | ) | | (4,480 | ) |
| Net loss on sales of real estate | (111,951 | ) | | (16,299 | ) | | 52 |
| | — |
| | (16,247 | ) | | — |
| | — |
| | — |
| | (128,198 | ) |
| Loss from unconsolidated JV | — |
| | — |
| | — |
| | 5,431 |
| | 5,431 |
| | — |
| | — |
| | — |
| | 5,431 |
|
| Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 3,011 |
| | 3,011 |
|
| Sabra’s share of unconsolidated JV Net Operating Income | — |
| | — |
| | — |
| | 36,763 |
| | 36,763 |
| | — |
| | — |
| | — |
| | 36,763 |
|
| | | | | | | | | | | | | | | | | | |
| Net Operating Income | $ | 385,388 |
| | $ | 96,694 |
| | $ | 20,591 |
| | $ | 36,763 |
| | $ | 154,048 |
| | $ | 54,523 |
| | $ | 16,667 |
| | $ | — |
| | $ | 610,626 |
|
| | | | | | | | | | | | | | | | | | |
| Non-cash revenue and expense adjustments | (20,040 | ) | | (9,987 | ) | | — |
| | — |
| | (9,987 | ) | | (6,414 | ) | | (2,300 | ) | | — |
| | (38,741 | ) |
| Foreign exchange rate adjustment | — |
| | — |
| | (238 | ) | | — |
| | (238 | ) | | — |
| | — |
| | — |
| | (238 | ) |
| | | | | | | | | | | | | | | | | | |
| Cash Net Operating Income | $ | 365,348 |
| | $ | 86,707 |
| | $ | 20,353 |
| | $ | 36,763 |
| | $ | 143,823 |
| | $ | 48,109 |
| | $ | 14,367 |
| | $ | — |
| | $ | 571,647 |
|
| | | | | | | | | | | | | | | | | | |
| Cash Net Operating Income not included in same store | | | | | (271 | ) | | 82 |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Same store Cash Net Operating Income | | | | | $ | 20,082 |
| | $ | 36,845 |
| | | | | | | | | | |
|
| | |
| See reporting definitions. | 12 |
SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Annualized Cash NOI by Payor Type
(in thousands)
|
| | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, 2019 |
| | Private Payors | | Non-Private Payors | | Interest and
Other Income | | Corporate | | Total |
| Net income (loss) | $ | 31,590 |
| | $ | 127,829 |
| | $ | 81,540 |
| | $ | (171,941 | ) | | $ | 69,018 |
|
| Adjustments: | | | | | | | | | |
| Depreciation and amortization | 79,743 |
| | 101,756 |
| | — |
| | 50 |
| | 181,549 |
|
| Interest | 2,092 |
| | 2,399 |
| | — |
| | 122,119 |
| | 126,610 |
|
| General and administrative | — |
| | — |
| | — |
| | 30,462 |
| | 30,462 |
|
| Merger and acquisition costs | — |
| | — |
| | — |
| | 424 |
| | 424 |
|
| Provision for doubtful accounts, straight-line rental income and loan losses | — |
| | — |
| | — |
| | 1,238 |
| | 1,238 |
|
| Impairment of real estate | 56,099 |
| | 65,720 |
| | — |
| | — |
| | 121,819 |
|
| Loss on extinguishment of debt | — |
| | — |
| | — |
| | 16,340 |
| | 16,340 |
|
| Other income | — |
| | — |
| | — |
| | (2,094 | ) | | (2,094 | ) |
| Net loss (gain) on sales of real estate | 3,232 |
| | (5,532 | ) | | — |
| | — |
| | (2,300 | ) |
| Loss from unconsolidated JV | 6,796 |
| | — |
| | — |
| | — |
| | 6,796 |
|
| Income tax expense | — |
| | — |
| | — |
| | 3,402 |
| | 3,402 |
|
| Sabra’s share of unconsolidated JV Net Operating Income | 39,394 |
| | — |
| | — |
| | — |
| | 39,394 |
|
| | | | | | | | | | |
| Net Operating Income | $ | 218,946 |
| | $ | 292,172 |
| | $ | 81,540 |
| | $ | — |
| | $ | 592,658 |
|
| | | | | | | | | | |
| Non-cash revenue adjustments | (8,700 | ) | | (10,628 | ) | | (12,791 | ) | | — |
| | (32,119 | ) |
| | | | | | | | | | |
| Cash Net Operating Income | $ | 210,246 |
| | $ | 281,544 |
| | $ | 68,749 |
| | $ | — |
| | $ | 560,539 |
|
| | | | | | | | | | |
| Annualizing adjustments | 7,692 |
| | 15,944 |
| | (757 | ) | | — |
| | 22,879 |
|
| Cash portion of lease termination income | — |
| | — |
| | (57,223 | ) | | — |
| | (57,223 | ) |
| | | | | | | | | | |
| Annualized Cash Net Operating Income | $ | 217,938 |
| | $ | 297,488 |
| | $ | 10,769 |
| | $ | — |
| | $ | 526,195 |
|
|
| | |
| See reporting definitions. | 13 |
SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Annualized Cash NOI by Relationship
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, 2019 |
| | Enlivant | | Avamere Family of Companies | | North American Healthcare | | Signature Healthcare | | Cadia Healthcare | | Signature Behavioral | | Holiday AL Holdings LP | | Genesis Healthcare, Inc. | | Healthmark Group | | The McGuire Group | | All Other Relationships | | Corporate | | Total |
| Net income (loss) | $ | 88 |
| | $ | 30,743 |
| | $ | 29,489 |
| | $ | 23,837 |
| | $ | 10,164 |
| | $ | 23,490 |
| | $ | 9,968 |
| | $ | 14,349 |
| | $ | 11,637 |
| | $ | 13,816 |
| | $ | 73,378 |
| | $ | (171,941 | ) | | $ | 69,018 |
|
| Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | 3,927 |
| | 12,267 |
| | 11,213 |
| | 14,654 |
| | 10,368 |
| | 9,969 |
| | 21,549 |
| | 2,865 |
| | 4,825 |
| | 7,127 |
| | 82,735 |
| | 50 |
| | 181,549 |
|
| Interest | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 2,920 |
| | — |
| | — |
| | 1,571 |
| | 122,119 |
| | 126,610 |
|
| General and administrative | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 30,462 |
| | 30,462 |
|
| Merger and acquisition costs | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 424 |
| | 424 |
|
| Provision for doubtful accounts, straight-line rental income and loan losses | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 1,238 |
| | 1,238 |
|
| Impairment of real estate | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 121,819 |
| | — |
| | 121,819 |
|
| Loss on extinguishment of debt | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 16,340 |
| | 16,340 |
|
| Other income | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (2,094 | ) | | (2,094 | ) |
| Net loss (gain) on sales of real estate | — |
| | 3,102 |
| | — |
| | 1,211 |
| | — |
| | — |
| | — |
| | 17 |
| | — |
| | — |
| | (6,630 | ) | | — |
| | (2,300 | ) |
| Loss from unconsolidated JV | 6,796 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 6,796 |
|
| Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 3,402 |
| | 3,402 |
|
| Sabra’s share of unconsolidated JV Net Operating Income | 39,394 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 39,394 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Operating Income | $ | 50,205 |
| | $ | 46,112 |
| | $ | 40,702 |
| | $ | 39,702 |
| | $ | 20,532 |
| | $ | 33,459 |
| | $ | 31,517 |
| | $ | 20,151 |
| | $ | 16,462 |
| | $ | 20,943 |
| | $ | 272,873 |
| | $ | — |
| | $ | 592,658 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-cash revenue adjustments | — |
| | (4,261 | ) | | (3,791 | ) | | (3,091 | ) | | 49 |
| | (1,050 | ) | | — |
| | 4,080 |
| | 8 |
| | (5,476 | ) | | (18,587 | ) | | — |
| | (32,119 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash Net Operating Income | $ | 50,205 |
| | $ | 41,851 |
| | $ | 36,911 |
| | $ | 36,611 |
| | $ | 20,581 |
| | $ | 32,409 |
| | $ | 31,517 |
| | $ | 24,231 |
| | $ | 16,470 |
| | $ | 15,467 |
| | $ | 254,286 |
| | $ | — |
| | $ | 560,539 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Annualizing adjustments | 1,916 |
| | 442 |
| | 687 |
| | 845 |
| | 14,921 |
| | 318 |
| | (2,884 | ) | | 327 |
| | 628 |
| | 25 |
| | 5,654 |
| | — |
| | 22,879 |
|
| Cash portion of lease termination income | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | (57,223 | ) | | — |
| | (57,223 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Annualized Cash Net Operating Income | $ | 52,121 |
| | $ | 42,293 |
| | $ | 37,598 |
| | $ | 37,456 |
| | $ | 35,502 |
| | $ | 32,727 |
| | $ | 28,633 |
| | $ | 24,558 |
| | $ | 17,098 |
| | $ | 15,492 |
| | $ | 202,717 |
| | $ | — |
| | $ | 526,195 |
|
|
| | |
| See reporting definitions. | 14 |
SABRA HEALTH CARE REIT, INC.
REPORTING DEFINITIONS
Adjusted EBITDA. Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation and amortization (“EBITDA”) excluding the impact of merger-related costs, stock-based compensation expense under the Company’s long-term equity award program, and loan loss reserves. Adjusted EBITDA is an important non-GAAP supplemental measure of operating performance.
Annualized Cash Net Operating Income (“Annualized Cash NOI”). The Company believes that net income attributable to common stockholders as defined by GAAP is the most appropriate earnings measure. The Company considers Annualized Cash NOI an important supplemental measure because it allows investors, analysts and its management to evaluate the operating performance of its investments. The Company defines Annualized Cash NOI as Annualized Revenues less operating expenses and non-cash revenues. Annualized Cash NOI excludes all other financial statement amounts included in net income.
Annualized Revenues. The annual contractual rental revenues under leases and interest and other income generated by the Company’s loans receivable and other investments based on amounts invested and applicable terms as of the end of the period presented. Annualized Revenues do not include tenant recoveries or additional rents.
Cash Net Operating Income (“Cash NOI”). The Company believes that net income attributable to common stockholders as defined by GAAP is the most appropriate earnings measure. The Company considers Cash NOI an important supplemental measure because it allows investors, analysts and its management to evaluate the operating performance of its investments. The Company defines Cash NOI as total revenues less operating expenses and non-cash revenues. Cash NOI excludes all other financial statement amounts included in net income.
Funds From Operations Attributable to Common Stockholders (“FFO”) and Adjusted Funds from Operations Attributable to Common Stockholders (“AFFO”). The Company believes that net income attributable to common stockholders as defined by GAAP is the most appropriate earnings measure. The Company also believes that funds from operations attributable to common stockholders, or FFO, as defined in accordance with the definition used by the National Association of Real Estate Investment Trusts (“NAREIT”), and adjusted funds from operations attributable to common stockholders, or AFFO (and related per share amounts) are important non-GAAP supplemental measures of the Company’s operating performance. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a real estate investment trust that uses historical cost accounting for depreciation could be less informative. Thus, NAREIT created FFO as a supplemental measure of operating performance for real estate investment trusts that excludes historical cost depreciation and amortization, among other items, from net income attributable to common stockholders, as defined by GAAP. FFO is defined as net income attributable to common stockholders, computed in accordance with GAAP, excluding gains or losses from real estate dispositions, plus real estate depreciation and amortization, net of amounts related to noncontrolling interests, plus the Company’s share of depreciation and amortization related to its unconsolidated joint venture, and real estate impairment charges. AFFO is defined as FFO excluding merger and acquisition costs, stock-based compensation expense, non-cash rental and related revenues, non-cash interest income, non-cash interest expense, change in fair value of contingent consideration, non-cash portion of loss on extinguishment of debt, provision for doubtful straight-line rental income, loan losses and other reserves, non-cash lease termination income and deferred income taxes, as well as other non-cash revenue and expense items (including ineffectiveness gain/loss on derivative instruments, and non-cash revenue and expense amounts related to noncontrolling interests) and the Company’s share of non-cash adjustments related to its unconsolidated joint venture. The Company believes that the use of FFO and AFFO (and the related per share amounts), combined with the required GAAP presentations, improves the understanding of the Company’s operating results among investors and makes comparisons of operating results among real estate investment trusts more meaningful. The Company considers FFO and AFFO to be useful measures for reviewing comparative operating and financial performance because, by excluding the applicable items listed above, FFO and AFFO can help investors compare the operating performance of the Company between periods or as compared to other companies. While FFO and AFFO are relevant and widely used measures of operating performance of real estate investment trusts, they do not represent cash flows from operations or net income attributable to common stockholders as defined by GAAP and should not be considered an alternative to those measures in evaluating the Company’s liquidity or operating performance. FFO and AFFO also do not consider the costs associated with capital expenditures related to the Company’s real estate assets nor do they purport to be indicative of cash available to fund the Company’s future cash requirements. Further, the Company’s computation of FFO and AFFO may not be comparable to FFO and AFFO reported by other real estate investment trusts that do not define FFO in accordance with the current NAREIT definition or that interpret the current NAREIT definition or define AFFO differently than the Company does.
Net Operating Income (“NOI”). The Company believes that net income attributable to common stockholders as defined by GAAP is the most appropriate earnings measure. The Company considers NOI an important supplemental measure because it allows investors, analysts and its management to evaluate the operating performance of its investments. The Company defines NOI as total revenues less operating expenses. NOI excludes all other financial statement amounts included in net income.
Normalized FFO and Normalized AFFO. Normalized FFO and Normalized AFFO represent FFO and AFFO, respectively, adjusted for certain income and expense items that the Company does not believe are indicative of its ongoing operating results. The Company considers Normalized FFO and Normalized AFFO to be useful measures to evaluate the Company’s operating results excluding these income and expense items to help investors compare the operating performance of the Company between periods or as compared to other companies. Normalized FFO and Normalized AFFO do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating the Company’s liquidity or operating performance. Normalized FFO and Normalized AFFO also do not consider the costs associated with capital expenditures related to the Company’s real estate assets nor do they purport to be indicative of cash available to fund the Company’s future cash requirements. Further, the Company’s computation of Normalized FFO and Normalized AFFO may not be comparable to Normalized FFO and Normalized AFFO reported by other REITs that do not define FFO in accordance with the current NAREIT definition or that interpret the current NAREIT definition or define FFO and AFFO or Normalized FFO and Normalized AFFO differently than the Company does.
