Sabra Health Care REIT (SBRA) 28 Feb 242023 Q4 Earnings call transcript

Company Profile

Participants

Lukas Hartwich	executive
Juan Sanabria	analyst
Talya Nevo-Hacohen	executive
Michael Costa	executive
Farrell Granath	analyst
Elmer Chang	analyst
Austin Wurschmidt	analyst
Rick Matros	executive
Michael Griffin	analyst
Vikram Malhotra	analyst
Richard Anderson	analyst
Michael Stroyeck	analyst
Connor Siversky	analyst

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone. My name is Mandeep and I will be your conference operator today. At this time, I'd like to welcome everyone to the Sabra Fourth Quarter 2023 Earnings Call. [Operator Instructions]. I would now like to turn the call over to Lukas Hartwich, SVP Finance. Please go ahead, Mr. Hartwich.

Lukas Hartwich

morning. good and you, Thank

press to our Before we will and you we earnings expectations to response the cause our Form update make of included and operations. to including circumstances, I making forward-looking later obligation want XX.X our comments Form regarding that materially our be concerning XX-K guidance comments yesterday. forward-looking events We differ you the and based XX, statements disposition your remind in should as including X-K and our and plans. and risks to year the financial we undertake statements the or listed and for earnings no valid. These position to results that expectations ended December subsequent are in on assume expectations as are our actual forward-looking tenants and still release results not our questions our are begin, for well management's investment quarter expectations current and XXXX, regarding future reflect in in to Exhibit SEC subject XXXX the statements could that the to regarding as operators our our today uncertainties furnished risks our acquisition, to we in

as of our Investors In the the addition, well on references and these at encouraged section explanation the to are to results. GAAP these will Investors of this review financial Financials comparable financial during included measures be as the sabrahealth.com. made reconciliation non-GAAP results non-GAAP measures page website call to of

Care section our CEO, call to be let with earnings accessed website. And Health Chair XX-K, REIT. release Matros, can me Form and turn in the and Rick Sabra also Investors of of Our the President over that, supplement

Juan Sanabria

sequentially basis stability occupancy Good organic In up report XX skilled everybody. us. year-over-year. points in portfolio, our pleased XXX you is I basis our and growth joining appreciate Thanks, points continuing We're and Lukas. day, portfolio. to

the Our improvement sequentially is in with aggregate. EBITDARM XX top coverage similar rent up in our

tough, revenue our aggregate, that the in combination a is labor basis are the put is labor the been per just basis. margins patient in where day year the And that at and our where While over us down it's portfolio's on patient all-in the rate they and coming XX% up is a portfolio, nursing of improvement day X.X% a last patient-day growing the skilled position pretty growing at in on Contract pre-pandemic. were much is material. has down

there a the we're so really occupancy. even news is pre-pandemic not good And

a improving really us So we terms on margins in see terrific a were they pre-pandemic. of opportunity ahead where of

will see lease points to basis in portfolio. in Talya our portfolio. rent sequentially the SHOP is coverage up talk ] jumped continue improvement also X.XX. and about Occupancy detail XXX Senior DARM [ We Housing

For Senior different different both I as portfolios, said. expect two skilled classes. But is the the exceed we levels, reason each and of Housing for pre-pandemic occupancy the asset to

supply for that optimistic for demographic this fiscal Housing, new rates, foreseeable we'll We and continue CMS CMS. and increases XXXX with So year the the for the and demographic reimbursement numerous for product. at with state and skilled, Senior the been coupled that it's capturing for states level declining future. the we're appreciated a combined have And cost negligible it's summer

performance. behavioral Our portfolio specialty hospital stable and has had

over turn that, starting We're before X% with yet. And I AFFO, midpoint and to investment as respectively, full first call the time since X% increases Talya. provided and more no pandemic guidance. for see guidance also the in of opportunities, of at trends normalized normalized FFO have but to We the year the with will clear

Talya Nevo-Hacohen

transitioned anticipated. Cash fourth in increased are prior renewals X% quarter by the growth was quarter fourth cash with portfolio since excluding of of government to living has for by strong over asking high-teen year-over-year. net Sabra's the maintained same-store in ]. XXXX. consists operators nearly one Current of in XXX fourth every occupancy NOI this assisted the X% the XXXX as assisted this for are set from increases memory moderating was X coupled of numbers operating quarter X% independent which rents and range more REVPOR independent our past than of momentum the Enlivant Sabra's of Quarterly our quarter to while the care revenue stabilized care recently, and positive moderate XXXX. years assisted portfolio occupancy XX.X% More Rick. made cash was highest able in a portfolio year-over-year This stimulus XXXX. of same-store cash the to the is was The follows: foundation sequentially [ a second Occupancy nearly managing NOI a of gains for than our this XX.X% of portfolio, portfolio, for with of assisted an portfolio by while non the portfolio and ENSPIRIT drive January every growth quarter NOI basis which operator to quarter XX XX living, spirit Housing The the the REVPOR it and Senior grew experienced of in fourth the January ExPOR as fourth on of living and attributable and properties, and entire XXXX. over wholly XXXX in XX.X%, points, you, been income over about of same-store are these performance RevPOR year-over-year quarters. gains half highest expenses. communities. The Sabra's compared owned posted mid- basis. in function XXXX, managed Thank occupancy headline in more wholly living continued increase living memory portfolio's managing owned are communities, managed XX% portfolio XX percentage to assets for XX% currently was living mid-XXXX, portfolio, increase is

a our with Sienna, cultural in in quarter and stabilized assets same-store of non X.X% in improvement on financial government and these occupancy higher unconsolidated communities operational, properties venture transition. The the see to continue stimulus had the joint since a excluding higher in We in fourth with to of pool fourth the periods. coupled cash occupancy margin a the NOI drivers were increase basis and cash XX.X% The leading in RevPOR ExPOR XXX% on NOI quarter year-over-year lower year-over-year with expansion X.X% X.X% increases same basis.

of rate changes Monroeville the including coverage. and currently of properties Monroeville occupancy downward the occupancy prior quarter pool to At of Our in total Health approximately to a largely Michael for will quarter, occupancy the its Housing Financial This the turn quarter rent a behavioral pool, stabilized in improving a coverage. over for remained operates over in our fourth portfolio second with the end pool Sabra's Costa, in Senior investment Officer. well rest steadily the $XXX want to one our the to arrears stabilized portfolio continues call now lower function leased treatment continues at residential quarter, shows addition trend Sabra's perform point Behavioral the cover the with that, out to but both levels rent above of than of and million. is the Chief pre-pandemic the the I in I statistics rent slight trailing supplemental payment. And XX-month center that health well

Michael Costa

Talya. Thanks,

$X.XX. share we recognized normalized of For and the $X.XX per normalized share quarter AFFO FFO fourth XXXX, of of per

rates which the to compensation, our nursing we AFFO. third amounts the an $X.X general assets of AFFO by quarter, which we of estimates quarter, three decrease million of saw normalized $XXX,XXX first during updated result $X.X Also normalized a partially to a quarters increase an offset is compared occupancy. and administrative cash of XX our of normalized third two relates and the of increase Senior performance-based fourth expense during quarter out in to in XXXX rents totaling the sale were a as fourth normalized and due Housing Housing resulted managed $XXX,XXX portfolio the and primarily of to million Senior the During portfolio skilled quarter. quarter, from our and in FFO These improved

operational are portfolio of the financial pleased of and transitions in our high expected a pandemic, industry XXXX did a our uncertain improved behind the enters much introduce of Sabra made the full with for repositioning the This performance to sight of earnings project as it Sabra since of and performance specifically the year. majority many for the we difficult the conviction not industry environment as with clearer of full and pandemic. the the have level line expected quarter, portfolio coming because our guidance year start operating the Throughout with first much we us, to XXXX enters year a time issue guidance into peers landscape

$X.XX, as $X.XX FFO $X.XX normalized the for per follows: Our $X.XX, diluted adjusted to to $X.XX FFO income, $X.XX $X.XX $X.XX, $X.XX. normalized to to XXXX are net $X.XX full FFO estimated share performance year on ranges of FFO to and normalized a basis

approximately we first the of not I X%, respectively, of normalized AFFO the of of growth or be to pandemic. X% assume the acquisition Sabra As XXXX disposition point things to year realize our a for guidance. At reminder, would any guidance and our FFO year-over-year growth activity. the our also normalized a midpoint out on ranges, which expect few and earnings want does since start

return cash XXXX. of million to a of compared in Our more XXXX $XX.X to guidance normalized a rate also approximately assumes $XX.X million run G&A in

Therefore, outside we coming of floating balances earnings cash expect outstanding interest XXXX calls, XXXX variability previous remain expense our of on As credit. from in on line rate our to discussed on changes consistent no of any with we with borrowings in line credit. debt have

midpoint normalized AFFO share dividend the quarterly $X.XX would payout XX% current per our of guidance. of represent Our using an

our leverage would reduce levels Our from expected average closer also our and target. throughout earnings to long-term current growth guidance our range

Now to balance briefly sheet. the turning

of leverage portfolio and the EBITDA debt target pandemic. committed Xx are we average performance XXXX, its in naturally the can we previous over earlier ratio calls, leverage target access the net long-term We to markets. X.XXx from continues as our to Our and that to on adjusted XX, without of recovery expect and was to as capital decrease noted December confident achieve needing a time remain as

debt XXXX, of credit cash and revolving compliance of under $XXX XX, borrowings of we December ample million $XXX our in all our of facility. cash of of have million As equivalents consisting and available and liquidity are million covenants unrestricted with $XX

dividend XX, payout the of of $X.XX open X, XXXX. lines normalized common with is covered for will adequately we'll that, payout February this in a The record of of dividend and February of declared quarter fourth is share. Board on stockholders of as quarterly earlier, XX, of And our a And close common expected percentage be XXXX. up The Sabra's per represents on on of cash noted the as stock. XXXX, XX% paid Finally, February improve Q&A. share Directors business to dividend to AFFO per XXXX,

Operator

comes with from question first the line Your Dennerlein [Operator America. of of Instructions] Joshua Bank

Farrell Granath

This expanding opportunities in to with forward expand Granath if behalf Dennerlein. is you other first Josh on hoping touch I terms question, My Ignite. going or on? you're the can with What of either of relationship Farrell any relationships about seeing wanted this you to on deepening relationship? Or ask are

Talya Nevo-Hacohen

to happy take I'm Sure, that.

been with them. working nursing We pandemic, several have several have Oklahoma since to we interested in and home properties before the with working always them been Ignite -- transitioned in

we a tack-on We've to at -- have buildings. deal looked We did deals. several our small other Oklahoma

Now look the last on, we with we deal them. closed opportunities continue announced for year. we that And to

they with We REIT have the only whom not a relationship. are

we to -- negotiate, balance as endeavoring to like more and for look get, and the tremendous us are but terms they can they their but best -- think I all they respect do for them. it with capabilities operators they out have So

Farrell Granath

-- just XXXX, how you're or little And in was seeing I But a I business. if terms Great. few margins made bit of the out occupancy. that on play a comments into wondering know you on you could expand SHOP either

Talya Nevo-Hacohen

breakeven and all top and we really I starting occupancy increases I growth. expense get which growth I see, really it line occupied being export now per is benefit point starting of is this expenses over To think rapid no What side. are side And on is metric, both that on we operating leverage. key see starting I think signals increases that why think we the declining. we're me, morning. wish that's moved importantly, to my -- on talking however, a I through And the the the to the really room think so are that see or revenue we're we points could RevPOR what to consistent decreases is to that added

Operator

Your line Nick Bank. next Yulico Scotiabank with question of comes from the

Elmer Chang

whether that assume This the on transaction portfolio. operator fairly you Could just Ignite is to Elmer so this acquiring needing Nick. And different was on about expand? debt Chang any credit-driven maybe a mortgage capital again talk did you with transaction you way, Touching had quarter in a process? active a versus the more but in

Talya Nevo-Hacohen

not operations at So we that look opened newer assume were very driven. on debt. can employer. building one. credit any actually with and at really they their mortgage are That's did conservative These their are what It's buildings. buildings. Two, it's prior when do team not forward Ignite the they based had on these They

amount close is to buildings The So a very of there familiarity. tremendous one two another. are

So good Does there's there. you? really coverage help that geographic

Elmer Chang

Got And as it. in mentioned Yes, range. well. X% you I on the you're know Housing X% that increased to business seeing the rent helps. just guess I managed Senior growth

X- guidance? a Or Is to that that objective? seeing that You -- target was XXXX so 'XX embedded for X-year more talked about occupancy pre-pandemic like in is a to hopefully gains, levels.

Michael Costa

would I say X- I Yes. it objective. a wouldn't to be X-year mean

I you XXXX the the in our look the bridge in Housing of couple that where run and remaining it, rate. last think is over upside business, particularly a managed think captured back in the the portfolio. year-end of best we if upside Senior to for about healthy specifically quarters way amount that put our to guidance illustrate

XXXX, by to a in with and the get the time bit of captured to little So we left is upside majority that capture end of the already beyond. vast 'XX

Operator

KeyBanc question Your online next Austin from Capital comes Wurschmidt of with Markets.

Austin Wurschmidt

Great.

the are within back hit that and assuming NOI maybe a same-store Housing of year of to finer on managed point growth wanted for for the sort what Just segment business? put portfolio Senior the on you

Michael Costa

Yes.

So think even industry our sentiment at didn't I think double teens, disclose you in And our growth. call we of in digit, I just mid-teens release. lot of, look obviously if our peers mean a that low put I it, what general out, have

feels a you're I that our our when about assumption it's to portfolio? looking probably good think and at portfolio, Sabra-specific for I right use think

Austin Wurschmidt

you've couple That's I seen that point now year. helpful. certainly the sort guess in And good jumping-off given does a last the quarters, the into of acceleration heading of

more the seasonality seasonality So from think the seeing consistent with something strength levels? transitions here, kind I mean last year. outperform some that happened and assume can of of you historic you just maybe you're should the from we operator Or given do historical that catch-up

Talya Nevo-Hacohen

I you're you're -- to think that going always seasonality. going to have

about supply. at the of of top call the new lack one think of points the was I Rick's

pre-pandemic. had larger So a what you have is you it, denominator, call

cohort You now have and people denominator people have and more in. that more in moving the same

of up -- -- relatively your and number audience at of but be So what about leverage to more remains about you buildings the the other NOI occupancy increasing. fill completely And your the a and it's In part words, is your leads to and pool, what more I with moment. referenced numbers of it's pool remaining that not the static operating was is are talking moving it's resident beds is really -- available but the Mike respect going to growth. story static

to the that resident the to bottom because line. benefit going get incremental much a higher has leverage pull-through You're of operating

Rick Matros

is, year I guidance point we've classes exactly quickly you've are continue in how had to improve. make or that to other would but improve how impossible how much that things it's we to obviously, -- The guidance, trends been to much as still provide predict felt asset our enough going hearing full about

assumptions. we've in if conservative aired we've our hopefully, So been

Austin Wurschmidt

sense. for kind was I last overall And trending has coverage you of group It lot one a makes that share certainly the all of to Healthmark when positively as does and if that now even you could is hit just that of you wanted see across like expect on reversal. to That quarters continued look just a sort seen or And any XX to stabilize driving portfolio. one on several detail since lower trend referenced what's might top to wondering been they've list?

Rick Matros

Yes. PRF, from completely. They dropped really had and off benefiting been that's

in been tough They're good that's environment a really operator actually Texas. So really factor. a big in a

and that any concerns will then for improving level out have So again. forward, we them we start and don't going them about things think

Operator

from Your Griffin Michael the line with question Citi. next comes of

Michael Griffin

past, I heading ahead, in any you talked acquirer expectations year environment XXXX. about about include a Just net in the but know ask acquisition potentially acquisition you the being in your guidance. wanted to into the you've didn't

Just the and pipeline deep you how of wanted on to of for skilled the side see is a on where then get sense both anything sort yields and Senior Housing.

Rick Matros

I'll So start.

behavioral So being and those classes a is and this of in all and the in Senior year acquirer present terms Housing our and themselves. asset net that goal opportunities for as skilled

lot So the is lowest in plus continue our point year I history exposure drop. obviously and been at and will we past to to want diversifying our the even though it's skilled reiterate on a focused portfolio that the over

So deals we've skilled exposure, low much we're still we're looking actively deals. We're not and on able to skilled before. because had skilled than going more really to and ever do bypass for so doing more a dropping REIT our diversified we're skilled deals have

So everything earnings growth this really year. is about

going or currently sort And the guardrails boundaries we're not we're false to classes any around put that of so asset in.

Talya Nevo-Hacohen

in market. things their bid-ask XXXX, reengaged because -- But the there -- now very different it spread -- refinance perspective everyone a that a that it There with assets are it groups has of of mid I'd to One, are have are say. couple start on pricing of to active -- last there since market situation a with lot because the sell everything like really of their feels lender. come are that a was made halt. a of on has depth And acquisition the is active terms there year. pipeline, it's It Senior is was very of -- Housing the or

those little we that lot upon Housing. have insert see the the I'd on to But the are different. in new a so nursing. -- we order are We front. Skilled market it's assets found don't see into it's is dynamic say Senior as Senior much incumbent the by they firms. Housing competitive they're we're nursing, happening ourselves those on And that's and us fairly marketed that to quality market seeing product newer -- skilled is in opportunities been more on And brokerage What actively of capture transactions off relationships a active.

Michael Griffin

still points And prepared realize just in your about pre-COVID. Great. being and you maybe, point back were XXX Rick, levels. helpful. think basis your then margins pre-pandemic I back at where remarks skilled you're about to That's occupancy below I

given, occupancy uplift expectation medium So I here the near mean, that for guess the we where could in I to think, margins more I in business? and term, just get see

Rick Matros

as past year. has in again increases this catching now of and got October fact the nursing I that the skilled were a see hard of they that time few to points realm mean certainly points summer, process few has rate -- get really it's basket question but this the been it's lag, time they predict possibilities. to take matter the a pre-pandemic. over because a to, space. But out X, basis XX% great state where the these it's can up an There's we're federal lag how of is past and focus level get past certainly And The cost the then pay, there. and where right, at it's the through level advantage and interesting, at report above process this long private but we there's it's percentage the to is, so the of going because going pushing saw how really you're to and been the Housing Senior on couple market years, much just over not it's

to rate have least outsized increase states you're trends, not year fiscal CMS. based lot parity year's at a And basket will some -- this the getting increases some remember, and adjustment. in the market with nice So compared really of historical

to that's help going even So more.

really our And very, It's I in been as per revenue labor year. all mentioned, the inflation. very X.X% we're past the our years. And So flat. modest now been last non-nursing grown patient relatively over our couple nursing seeing, over inflation nicely day just under has really of has

helped So the that's compensate for occupancy. really to

can levels, of markets number far different to how at it again, least -- believe a see beyond starting pre-pandemic So but in can We go. issues. we're where occupancy access go

think points. I there, greater So even few the percentage than uplift a margin be will

Operator

from Your the Malhotra comes of Vikram next line Mizuho. question with

Vikram Malhotra

Maybe time I just first guidance. obviously understand first post this the COVID. is on the

end? the about give So I'm just some is you what potential teens us a else You the in the into specifics specifically what's and same-store issue credit talked not? high or low baked reach growth. high is wondering And -- can into end? baked low either on But baked lower

Michael Costa

I issue Yes, any not. there's baked credit or in wouldn't say

the the which we'd If call, some dictated Rick of what going said where number, up where with to is earlier to is going hard think end course there I of So by there on put uncertainty remainder this it's over out. knew out certainty largely shake is to range we predict baked the the in this we're X right? of just year.

So of some ourselves cushion, we're and reasonable broad for cushion too nothing a but amount that. just providing there

So that's like anything issues at. any that. or It's where not credit it's

Vikram Malhotra

that on just or to updated thoughts then think Rick, you you about -- that then side, Medicare Any be minimum like X% component good shaking we I Should of as think regulatory the to if two alluded fair? how the a kind staffing see on X% bump. you it out wise ruling final And to year. could. going And timing-wise? Okay. things, Is decent there's fact the a this

Rick Matros

were On last X.X% bump, adjustment. with on don't want we the parity but I obviously, CMS, at Medicare the ahead anything, get of year to

So reasonable there I to because lot inflation of capture. that of a think something north still is was

are there. and maybe don't extent don't may particularly believe down they fact they But to given the that final nurses And order there's timing. order down. don't to the don't at an that minimum they XXXX, the this we do, point, it's on they'll no it think matter But how unreasonable assumption. I out or So rule. I we is no say any the mandate acceptable there said terms that staffing, think in think much update fair really in They have of staffing that's

strong So because it's necessary in support matter bipartisan it stand those cost the take very industry federal the funding though at if it ensure do a funding will up of got I whatever they're was and the fact -- and rates. not not think things even in to level the report defeat. We've the is, is in will let's upfront, costs, level, though place, assume capture and increased that process eventually at will they're the state even also show increased Congress

cost actually dollars it billions year even if because a government just of aren't upfront So they will works. of the funding cost it report of sort the how

think a big from that's perspective, issue. I So relative a

of for availability think no relative to the lack with would of some I that to the workers, us. even fairness it immigration and nurses be having helpful the on hill really of movement skilled controlled certainly

why they're factor support not mandate. much all being we're those from getting think of so Washington I a and staffing bipartisan into

Vikram Malhotra

Great.

just transition ones. -- had few a sorry, you one mentioned And last more may clarification. I smaller there In last the be call, remember

are you transition wondering planned? us have So what can been benefit I'm benefit any the in 'XX completed roughly the and additional And help 'XX? already the if that of transitions just there quantify is in

Michael Costa

of with million it's a not Yes. $X if similar total the get in totality, third the -- think of at in I small for you number that about to QX, million. dollars out we a put a bit in my end little was quarter, we the -- piece because large scheme like started the second see that. I $X by of in we then And year, grand that bit of and the the But the little with comments when saw that, you trend QX, we most out capturing look this I -- on pie it's upside we'll little number I at this in down We came our bridge and that captured. the of quarter, think like I a quarter of the we from the SHOP, things. think mean, for bit first captured it's put transitions think the again, I are last time think talked that in in terms

Operator

question next line Wedbush. of Anderson Rich the with Your comes from

Richard Anderson

Or Can to Rick, color but buy? mean, know assets mean you call, on that defined have that? there's hard but no by you pipeline that quantify. this So some of what you still you mentioned this I clear talk at? you're about kind curious like for opportunities, of of what you is been you a did trends. I'm more investment growth I might on you external -- talk just of types lend about year. do looking can front sort that what like sort the do

Rick Matros

Sure.

in we're points, Talya's there. of one quality, deals of not So nursing much seeing terms skilled out

X% So days. it's rates think hard the you handle XX% stay exactly going that range. and the will saw to don't to predict pre-pandemic we [indiscernible] we're in, where settle cap are see in rates to the volume I although stuff cap think going to

-- million housing much we able able we're say, be guidance, Talya of also and going bit we how the get quarter to volume amount but can we'll the granularity out more determine included color what would little investments we'll out seeing just do as the in are side bit things and three be we do get this may that had and of we'd we to in -- done bit to just from pandemic. Prior pandemic, or the think fourth because going we little all to have so we the asset at year, more even on into senior $XXX able get outside done a like share. data our think and we kind we go. year, this to a we're acquisition Hopefully, of think not And -- to a them classes, third might We'll be provide we given first we're this data x have assumptions have there the determine not most of $XXX than little far will hopefully, where somewhat just million we further of never in we -- said, now. trend be for seeing impossible that. more to call quarter as don't the But some pandemic, this year. haven't but we might point. So It's be year, data, of enough us have be earnings able enough to that obviously, and guidance,

Richard Anderson

Okay. Excellent.

than to of like of if spread say you spread SNFs you should be, spread of plus lower too senior basis terms that to asking in on required your nature terms -- X opportunity, be capital But to is what external or should think have the curious accretive where of at of say, it Does is that the on cost XXX your like? handle In will range mind the the for just growth? pull investing the points? do return I'm Or it to -- I something Is on you housing. much? something be? that your you trigger

Rick Matros

Yes.

don't we of a are at So have capital. cost The seeing to our deals current number set us. we're accretive

as to in this the look And just out think course still So amazing. that's want year, them everybody recovery. we be over accretive. of We I is

though know spread. biggest there's well. a as the time over want just recover. And can of like to side, there's continues on you if did we the get lot do spread So Don't the to upside might in more a We're skilled to range, even the still out shop deal with side, you start going we there like industry bigger say, as to XX% with upside, hey, and X% we on Ignite the

kind we to the we there. Day bit be the it us growth. we back what But a and the because home, long on as as We it was the see little get just operator, we So upside then hammering X. know know, as performance see tighter market, can we know may of we strong keep worth you earnings -- need it's to pre-pandemic, to as

Richard Anderson

question Last Yes. me. for

number? You quarter an release excluding X.XXx that a mentioned third is in coverage funds, relief fourth in that space, provider the a arrears or your Is quarter dorm number? skilled at

Michael Costa

It's a as number XX-month XX. of September

Richard Anderson

Okay.

point in fact October third annualized. benefit note that number that's an Medicare took if the release, quarter in of doesn't third the for get the equivalent quite So X.Xx I X, starts starting was And quarter it of that, improvement. your the it same

you any we know pop would in Is reason that there that what big about? say in coverage? the parts there moving So for should

Rick Matros

are there July August. our larger experience Medicaid than in of lot things. of a A couple and operators rates Well, average

has it. a again, of starts a but that there. and we would really bit it, more out I to this, labor think, have expected. still impact we So than tough light has little moderated, keep bit moderated make always it's And saying quite don't want to it I really

on of is side the growth revenue patient and the think particularly labor I So what to slower Medicaid growth, per day combination contributed it. stronger

Richard Anderson

Xx -- you to number be could starting go things if a That the tease continue in direction? right to

Rick Matros

Rich? your lips, From

Operator

Green line Your Stroyeck with next question Michael from comes Street. of the

Michael Stroyeck

the on [ SHIN portfolio. one ] Maybe

trailing this levels captured mostly coverage business? So spot levels meaningful improvement in point? back are are in now if XX-month we that to any that in figure not, should XXXX at coverages And expect more

Michael Costa

Sorry, for which portfolio?

Michael Stroyeck

For Housing SHIN or portfolio? the [ the ] lease Senior portfolio

Michael Costa

Got it.

Talya Nevo-Hacohen

I it know that and repeat question? be in Because you response. probably more could the what I'm about you're talking my now portfolio constructed sorry,

Michael Stroyeck

Yes.

about back portfolio. Coverage in they're Senior Sorry Housing XXXX to that. lease the levels

mostly And levels trailing that figure? improvement more Our should not, that if XX-month we in any in business? coverages captured expect meaningful spot in

Talya Nevo-Hacohen

will optimistic improve I continue to think leverage to we're to think coverage drop the continues as NOI that more bottom line. I operating

Michael Stroyeck

I mentioned to But aggregate. months? portfolio in in seen And Good one it's you agency meaningfully on that see then recent your down up labor Okay. to utilization know know. have in pockets pretty back maybe maybe any you have contract started come labor.

Rick Matros

coming up. increases few seeing a and We seeing months still the there. be we're past where facility over really not certainly operator, not here mean, it's markets or I But temporary there may labor. But by hand all anecdotally, bad. increases. Not have we're

a I it -- holidays, the down. back little came of but that's there it think bit not was that's over might holidays, but spike, atypical the for not a right

Talya Nevo-Hacohen

some hires years few the is retain vacant ability we're have We're and to which to housing that unaffected least hires permanent positions time, out net better employees. of front, overall that more compensate seeing also on and what retention, just hire, or been at time, been have agency really the for last normal net down zeroing is levels because by very filling or -- of stronger senior seeing about. at the sort almost back same the so-called

Operator

the Wells comes of with question [Operator line Your from Siversky next Instructions] Connor Fargo.

Connor Siversky

common Maybe Health others. It's prior. is XXXX earnings from, is just among more a years here context, in on a dramatic REIT investment to the say, been to theme improvement environment. it bit little Care conservative messaging bounce pretty invest that the propensity that than maybe back in a And like seems Sabra's

there the due is that's you feel nursing, a of of the coming high-quality skilled say buyers? desk. disconnect that competition in opportunities the space? less are more Do when just particular, and increased potential in to wondering, sellers across Or between you that function that I'm more in pricing So

Rick Matros

either. necessarily it's think don't I

more been have think for think I recovery. sell, as simple that really that to I that. for just don't as it's they've waiting those

opportunities. the for might expect haven't So sell, there well had in opportunities we if space top hung line as to fully improve better see and But more. to and have more you wait quality skilled in you to and margins

Talya Nevo-Hacohen

was I'd The debt we by saw provide of add to the the That, X is were has a slowing cheap X, when opportunity play. bridge debt lot has which in space of other is shifted really course, where And now reemerged, format unprecedented there sale-leaseback investors whatever, HUD in months. in REITs or last, that in equity was sometimes the provide the to can to rates the thing -- and skilled private to buying amounts.

stack on debt why sale cap you're leasebacks. think seen seeing of various other then and I us of in provide And why more so that REITs explains terms probably seeing levels the opportunities you're have

Rick Matros

guess, being been that the than the on we're never we've [indiscernible] than note, peers, conservative of our because I our our accused to impact pandemic more conservative more shows peers. you mentality for And of

Connor Siversky

needs maybe a see [ could high. I is to within ], knowing some seems bit kind And return it NCMA you're there certificate states the Understood. context certain example, I more. taking the of getting there. if the where occupancy carrying saying generate next one capacity. of the like release markets construction seen I'm several is color markets quite This outlook. a moment years that we and hitting prohibitive some are expect allow for a too wondering some for it's appreciate And forward some activity, long-term but And of have activity. more at of more of to where cost under that really construction

hear So you any on have thoughts just curious to that dynamic?

Rick Matros

Yes.

So it's -- are there there actually a what markets -- few I quite say, like are that. obviously, would

relative crisis of of there where already aggregate pre-pandemic. it their seeing Senior operators change I in to no problems right in the occupancy access or And markets. certain in country. talk to are close XX% the be think XX%. going portfolio in Obviously, there's terms closer But our in is to now in is Health. huge know, a you to we're was as the getting the States the

to perhaps at And facilities state level as there's so the of the cost going and be building given have to the regulation. skilled of exorbitant well. The federal nursing level is different something level

Some of states is obviously expensive. have even a of California more it that. it additional federal regulation on example so top regulation, makes great

well. and the got you've you've COA issue as issue, got -- that So

bad see bad occupancy. And is So there a run of maybe take see probably years, you So some really heard until anything skilled and really the which people have bad just just I in Connor, ever be get focused a keep proactive got of be think some it's there term. I then it's then it, people will occupancy. -- right? you I will on nice more get you've just don't the the things everything think for to I headlines bunch really and I access yes, because the it, short cycles haven't and can't so growing changes, don't And it's we hard government of just as than will level think -- just ahead said, think election the I at headlines on -- I to happening side don't really, care. on

Connor Siversky

all the increasing years ahead. Guess lead to roads I occupancy in

Rick Matros

number before Yes. projected current of there And has current since demographics remember that be obviously just different the the XXXX, is facilities And on it's pushed pandemic, is for rate So has mid-XXs. what right? in at point, effectively full the that except supply, little buildings, the but based effectively and to to industry XXXX. but which accelerated the and -- the the that a of sort actually of closed pandemic nothing's -- was low bit different increased, out, changed yes, decline was industry, full

Operator

to Matros. There will are Rick this further questions the turn no I at time. over now back call

Rick Matros

us for you joining Thank today.

conference you. going we're everybody in we next forward all are be Thank As to those look for follow-up the that for at usual, to week. available and Florida, seeing

Operator

This concludes today's call. conference

disconnect. You now may

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.