Sabra Posts Net Income of $2.1 Million in 2Q Earnings Report

Sabra (NYSE:SBRA) recently released its second quarter results, showing a net income of $2.1 million for the quarter ending on June 30, 2011, and $171.5 million in acquisitions.

Total equity investments totaled $643.4 million, with 9.8 million total licensed beds/units. During the second quarter, Sabra closed acquisitions on Texas Regional Medical Center for $62.7 million, Oak Brook Health Care Center for $11.3 million, and the SNF Portfolio of Broadmeadow, Capitol, Pike Creek, and Renaissance Healthcare skilled nursing facilities in Delaware for $97.5 million, for a total of $171.5 million.

The SNF Portfolio purchase was funded through an underwritten public offering of more than 11.7 million shares of common stocks, which was closed after netting, before expenses, $163.9 million.


“This acquisition created the need to replenish our available capital, which we accomplished with our recent equity offering,” says Rick Matros, Sabra’s Chairman and CEO. “We used this capital to fund the SNF Portfolio Acquisition and to accommodate our pipeline, which currently stands at approximately $500.0 million. In our first eight months, we have deployed just under $180.0 million in capital on assets that are relatively new, thereby enhancing the overall quality of assets in our portfolio.”

Matros also mentioned developments resulting from Sabra’s formation after Sun Healthcare Group split into two companies.

“Further, we have quickly reduced our exposure to Sun Healthcare to 79% and improved key credit stats,” he says. “All of these steps should aid our push to lower our cost of capital, which will allow us to be even more competitive on future deals as we look to further grow and diversify the Sabra portfolio.”


Quarterly revenue was at $18.8 million, making up just more than half of the the REIT’s $36.4 million revenue for the first half of the year. Funds from operations (FFO), at $8.3 million, and $0.33 per share, are also slightly more than half of the $15.7 million, and $0.62 per share, in FFO for the past six months.

Sabra expects its net income to range between $0.31 and $0.35 per share for its 2011 outlook, and FFO to range between $1.17 and $1.21 per share.

Written by Alyssa Gerace

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