Q2 2024 Sabra Health Care REIT Inc Earnings Call Transcript
Key Points
- Sabra Health Care REIT Inc (SBRA) reported a 17.7% growth in shop cash NOI, indicating strong operational performance.
- Senior housing and skilled nursing occupancy increased, with EBITDARM rent coverage improving for both asset classes.
- The company announced approximately $136 million in new investments, showcasing active growth and expansion efforts.
- Medicaid rate increases are estimated to be roughly 7%, with the top 5 SNF tenants experiencing a 10.6% increase, enhancing revenue potential.
- Labor costs, including contract labor, are at their lowest level since March 2021, with agency costs down 50% from a year ago, improving cost efficiency.
- Behavioral segment rent coverage was down, indicating volatility and unpredictability in this business line.
- Cash G&A expenses increased by $2 million due to performance-based compensation adjustments, impacting overall cost structure.
- Cash interest expense rose by $900,000 due to higher borrowings under the revolving credit facility, affecting financial leverage.
- The company recognized $900,000 of non-recurring business interruption insurance income last quarter, which did not recur this quarter.
- The investment impact on 2024 earnings is muted, with most benefits expected in 2025, delaying immediate financial gains.
Good day, everyone. My name is Christina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sabra second-quarter 2024 earnings call. (Operator Instructions)
I would now like to turn the call over to Lukas Hartwich, SVP of Finance. Please go ahead, Mr. Hartwich.
Thank you, and good morning. Before we begin, I want to remind you that we will be making forward-looking statements in our comments and in response to your questions concerning our expectations regarding our future financial position and results of operations, including our earnings guidance for 2024 and our expectations regarding our tenants and operators and our expectations regarding our acquisition, disposition, and investment plans.
These forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially, including the risks listed in our Form 10-K for the year ended
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
