Attached files
| file | filename |
|---|---|
| EX-99.3 - Q4 2020 NON-GAAP RECONCILIATIONS - Sabra Health Care REIT, Inc. | sbraex9932020q4.htm |
| EX-99.1 - Q4 2020 EARNINGS RELEASE - Sabra Health Care REIT, Inc. | sbraex9912020q4.htm |
| 8-K - 8-K - Sabra Health Care REIT, Inc. | sbra-20210222.htm |
Exhibit 99.2
2 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 03 COMPANY INFORMATION 04 OVERVIEW 05 PORTFOLIO Triple-Net Portfolio Same Store Triple-Net Portfolio Top 10 Relationships and COVID-19 Mitigation Summary Senior Housing - Managed Portfolio Same Store Senior Housing - Managed Portfolio Loans and Other Investments | Development Pipeline NOI Concentrations Geographic Concentrations Lease Expirations 15 INVESTMENT ACTIVITY Summary 16 CAPITALIZATION Overview Indebtedness Debt Maturity Credit Metrics and Ratings 20 FINANCIAL INFORMATION 1Q 2021 Outlook Consolidated Financial Statements - Statements of Income Consolidated Financial Statements - Balance Sheets Consolidated Financial Statements - Statements of Cash Flows FFO, Normalized FFO, AFFO and Normalized AFFO Components of Net Asset Value (NAV) 26 APPENDIX Disclaimer Reporting Definitions Discussion and Reconciliation of Certain Non-GAAP Financial Measures: http://www.sabrahealth.com/investors/financials/reports-presentations/non-gaap CONTENT
3 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 SENIOR MANAGEMENT Rick Matros Harold Andrews Jr. Talya Nevo-Hacohen Chairman of the Board, President Executive Vice President, Chief Executive Vice President, Chief and Chief Executive Officer Financial Officer and Secretary Investment Officer and Treasurer Michael Costa Executive Vice President - Finance, Chief Accounting Officer BOARD OF DIRECTORS Rick Matros Ronald Geary Jeffrey Malehorn Chairman of the Board, President Director Director and Chief Executive Officer Craig Barbarosh Lynne Katzmann Clifton Porter II Director Director Director Katie Cusack Ann Kono Milton Walters Director Director Director Michael Foster Raymond Lewis Lead Independent Director Director CONTACT INFORMATION Sabra Health Care REIT, Inc. Transfer Agent 18500 Von Karman Avenue American Stock Transfer Suite 550 and Trust Company Irvine, CA 92612 6201 15th Avenue 888.393.8248 Brooklyn, NY 11219 sabrahealth.com COMPANY INFORMATION
4 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 Financial Metrics Dollars in thousands, except per share data December 31, 2020 Three Months Ended Year Ended Revenues $ 152,054 $ 598,569 Net operating income (1) 124,012 495,779 Cash net operating income (1) 117,635 489,084 Diluted per share data attributable to common stockholders: EPS $ 0.18 $ 0.67 FFO 0.42 1.67 Normalized FFO 0.42 1.78 AFFO 0.42 1.74 Normalized AFFO 0.41 1.73 Dividends per common share 0.30 1.35 Capitalization and Market Facts Key Credit Metrics (3) December 31, 2020 December 31, 2020 Common shares outstanding 210.6 million Net Debt to Adjusted EBITDA 4.88x Common equity Market Capitalization $3.7 billion Including unconsolidated joint venture 5.49x Total Debt (2) $2.8 billion Interest Coverage 5.32x Total Enterprise Value (2) $6.4 billion Fixed Charge Coverage Ratio 5.14x Total Debt/Asset Value 35 % Common stock closing price $17.37 Secured Debt/Asset Value 1 % Common stock 52-week range $5.55 - $22.55 Unencumbered Assets/Unsecured Debt 282 % Common stock ticker symbol SBRA Portfolio Dollars in thousands As of December 31, 2020 Property Count Investment Beds/Units Occupancy Percentage (4) Investment in Real Estate Properties, gross Triple-Net Portfolio: Skilled Nursing / Transitional Care 287 $ 3,644,470 31,761 77.3 % Senior Housing - Leased 65 707,634 4,282 83.1 Specialty Hospitals and Other 27 670,793 1,092 75.3 Total Triple-Net Portfolio 379 5,022,897 37,135 Senior Housing - Managed 47 942,996 4,924 80.0 Consolidated Equity Investments 426 5,965,893 42,059 Unconsolidated Joint Venture Senior Housing - Managed 158 732,236 7,056 71.6 Total Equity Investments 584 6,698,129 49,115 Investment in Sales-Type Lease, net 1 24,205 Investments in Loans Receivable, gross (5) 18 58,992 Preferred Equity Investments, gross (6) 6 43,940 Includes 72 relationships in 43 U.S. states and CanadaTotal Investments 609 $ 6,825,266 (1) Balance includes (i) $1.1 million and $5.3 million of government grant income for the three months and year ended December 31, 2020, respectively, and (ii) $3.0 million and $10.4 million of expenses related to increased supplies and labor needs related to the COVID-19 pandemic for the three months and year ended December 31, 2020, respectively. (2) Includes Sabra’s 49% pro rata share of the debt of its unconsolidated joint venture. (3) See page 19 of this supplement for important information about these credit metrics. (4) Occupancy Percentage is presented for the trailing twelve month period and one quarter in arrears, except for Senior Housing - Managed, which is presented for the current period on a trailing three month basis. (5) One of our investments in loans receivable contains a purchase option on one Senior Housing development with 21 units. (6) Our preferred equity investments include investments in entities owning five Senior Housing developments with an aggregate of 662 units and one Skilled Nursing/Transitional Care development with 120 beds. OVERVIEW
5 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 Triple-Net Portfolio — EBITDARM Coverage (1) 4Q 2020 3Q 2020 2Q 2020 1Q 2020 4Q 2019 Skilled Nursing/Transitional Care 1.93x 1.84x 1.66x 1.65x 1.63x Specialty Hospitals and Other 3.55x 3.38x 3.31x 3.36x 3.29x Aggregate Acute/Post Acute and Other 2.17x 2.07x 1.91x 1.91x 1.88x Senior Housing - Leased 1.25x 1.31x 1.38x 1.38x 1.37x (1) Occupancy Percentage and Skilled Mix (together, “Operating Statistics”) and EBITDARM Coverage for each period presented include only Stabilized Facilities owned by the Company as of the end of such period and only for the duration such facilities were owned by the Company and classified as Stabilized Facilities. In addition, EBITDARM Coverage and Operating Statistics are presented for the twelve months ended at the end of the respective period and one quarter in arrears, and therefore, EBITDARM Coverage and Operating Statistics exclude assets acquired after September 30, 2020. PORTFOLIO Triple-Net Portfolio Triple-Net Portfolio Dollars in thousands As of December 31, 2020 Skilled Nursing/ Transitional Care Senior Housing - Leased Specialty Hospitals and Other Total Number of Properties 287 65 27 379 Number of Beds/Units 31,761 4,282 1,092 37,135 Investment $ 3,644,470 $ 707,634 $ 670,793 $ 5,022,897 Triple-Net Portfolio — Operating Statistics (1) Dollars in thousands 4Q 2020 3Q 2020 2Q 2020 1Q 2020 4Q 2019 Skilled Nursing/Transitional Care Number of Properties 287 287 290 291 296 Number of Units 31,761 32,019 32,516 32,660 33,290 Cash NOI $ 74,571 $ 78,047 $ 75,011 $ 76,236 $ 77,589 Occupancy 77.3 % 80.0 % 82.1 % 82.3 % 82.1 % Skilled Mix 39.5 % 39.0 % 39.0 % 38.6 % 38.0 % Senior Housing - Leased Number of Properties 65 64 65 64 62 Number of Units 4,282 4,242 4,290 4,119 3,820 Cash NOI $ 11,966 $ 11,975 $ 13,046 $ 11,971 $ 10,471 Occupancy 83.1 % 85.1 % 86.3 % 86.8 % 87.0 % Specialty Hospitals and Other Number of Properties 27 27 25 25 25 Number of Beds 1,092 1,193 1,193 1,193 1,193 Cash NOI $ 13,317 $ 13,277 $ 13,164 $ 13,069 $ 13,256 Occupancy 75.3 % 72.7 % 70.7 % 71.4 % 71.0 %
6 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 PORTFOLIO Same Store Triple-Net Portfolio (1) Same store triple-net portfolio includes all facilities owned for the full period in both comparison periods. (2) Same store EBITDARM Coverage and Operating Statistics are presented for the twelve months ended at the end of the respective period and one quarter in arrears for Stabilized Facilities owned for the full period in both comparison periods. Same Store Triple-Net Portfolio (1) Dollars in thousands Number of Properties Number of Beds/Units Cash NOI 4Q 2020 3Q 2020 4Q 2020 3Q 2020 Skilled Nursing/Transitional Care 287 31,761 32,019 $ 74,529 $ 77,392 Senior Housing - Leased 64 4,242 4,242 $ 11,776 $ 11,980 Specialty Hospitals and Other 25 1,092 1,193 $ 13,213 $ 13,171 Same Store Triple-Net Portfolio — EBTIDARM Coverage (2) 4Q 2020 3Q 2020 Skilled Nursing/Transitional Care 1.90x 1.81x Specialty Hospitals and Other 3.89x 3.80x Aggregate Acute/Post Acute and Other 2.19x 2.09x Senior Housing - Leased 1.26x 1.32x Same Store Triple-Net Portfolio — Operating Statistics (2) Occupancy Skilled Mix 4Q 2020 3Q 2020 4Q 2020 3Q 2020 Skilled Nursing/Transitional Care 77.2 % 79.7 % 38.9 % 38.5 % Senior Housing - Leased 83.9 % 85.6 % N/A N/A Specialty Hospitals and Other 79.0 % 78.6 % N/A N/A
7 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 PORTFOLIO Top 10 Relationships and COVID-19 Mitigation Summary (1) Top 10 Relationships Tenant/Borrower Credit Exposure Senior Housing - Managed Operator Exposure As of December 31, 2020 (1) EBITDARM Coverage Twelve Months Ended (2) As of December 31, 2020 (1) COVID-19 Mitigation Sources Relationship Primary Facility Type Number of Sabra Investments % of Annualized Cash NOI December 31, 2020 September 30, 2020 Number of Sabra Investments % of Annualized Cash NOI PRF Suspension of Medicare Sequestration FMAP AAMP Employer Payroll Tax Delay PPP Avamere Family of Companies Skilled Nursing 28 8.6 % 1.37x 1.31x — — ü ü ü ü ü North American Healthcare Skilled Nursing 24 7.6 % 1.84x 1.76x — — ü ü ü ü ü N/A Signature Healthcare Skilled Nursing 45 7.5 % 1.79x 1.68x — — ü ü ü ü ü N/A Cadia Healthcare (3) Skilled Nursing 10 7.2 % 1.84x 1.87x — — ü ü ü N/A Signature Behavioral (4) Behavioral Hospitals 6 6.6 % 1.66x 1.53x — — ü ü ü ü N/A Enlivant Assisted Living — — N/A N/A 169 6.6 % ü ü N/A Holiday AL Holdings LP Independent Living — — N/A N/A 22 5.1 % ü N/A Genesis Healthcare, Inc. (5) Skilled Nursing 8 4.4 % 1.46x 1.62x — — ü ü ü ü ü N/A Healthmark Group Skilled Nursing 21 3.4 % 1.91x 1.70x — — ü ü ü ü ü The McGuire Group Skilled Nursing 7 3.1 % 2.40x 2.53x — — ü ü ü ü ü N/A 149 48.4 % 1.73x 1.67x 191 11.7 % Remaining 62 relationships 255 38.0 % 2.48x 2.37x 14 1.9 % 404 86.4 % 2.06x 1.98x 205 13.6 % (1) Consists of our direct investments as well as properties owned through our joint venture with Enlivant. (2) EBITDARM Coverage is presented for Stabilized Facilities operated by the applicable tenant and is presented one quarter in arrears. (3) EBITDARM Coverage excludes five non-stabilized facilities representing 4.9% of Annualized Cash NOI. (4) EBITDARM Coverage excludes one non-stabilized facility representing 0.8% of Annualized Cash NOI. (5) EBITDARM Coverage excludes a prorated portion of the residual rents due to Sabra from prior asset sales under our 2017 memorandum of understanding with Genesis representing 2.1% of Annualized Cash NOI. COVID-19 Mitigation Summary (6) Mitigation Source Mitigates EBITDARM Reductions Description Estimated Available (All Sabra Relationships) PRF Yes The CARES Act has, to date, appropriated $175 billion to the Provider Relief Fund (“PRF”) for hospitals and other health care providers nationwide to prevent, prepare for and respond to COVID-19, with such amount to be distributed through grants and other payment mechanisms. Thus far, approximately $145 billion of such appropriated amount has been, or is in the process of being funded through three phases of general distributions, various targeted distributions and certain performance-based incentive payments. $230 million (8) $1 Suspension of Medicare sequestration Yes The CARES Act initially suspending the Medicare sequester (2% of all Medicare fee-for-service payments) from May 1–December 31, 2020 has since been extended to March 31, 2021. $10 million FMAP Yes The Families First Coronavirus Response Act provides a temporary 6.2% increase in Federal Medical Assistance Percentages (“FMAP”) retroactive to January 1, 2020 with anticipated continuation through June 30, 2021. States have discretion regarding the distribution of these funds to various healthcare providers. $60 million AAMP (7) $1 The CARES Act expanded the existing program to allow acute, cancer and children’s hospitals to request accelerated and advance Medicare payment (“AAMP”) of up to 100% of their Medicare payments for a six-month period, while critical access hospitals may request up to 125%. Other Medicare providers and suppliers (including physicians) may request up to three months advance payment. Repayment will not begin for one year from when the first loan disbursement was made and will be interest-free for up to 29 months. $140 million (9) $1 Employer payroll tax delay (7) $1 Under the CARES Act, employers can defer payment of the 6.2% FICA tax on wages paid from March 27–December 31, 2020. 50% of the deferred payment is due by December 31, 2021, and the remaining 50% is due by December 31, 2022. All employers are eligible unless they have had a loan forgiven through the Paycheck Protection Program (see PPP below). $30 million PPP Potentially The Paycheck Protection Program (“PPP”) established by the CARES Act has thus far been authorized to provide a total of up to $943 billion to fund special new loans to small businesses with fewer than 500 employees that have been affected by COVID-19. Through the PPP, the Small Business Association can provide businesses a maximum loan equal to 2.5x times its average monthly payroll costs, capped at $10 million with an aggregate corporate cap of $20 million. Loan amounts spent on payroll and certain other costs for eight weeks following loan origination would be forgiven. The $943 billion authorized includes the recently approved $285 billion second round of PPP funding, the portal for which opened on January 15, 2021. $70 million (6) The following summarizes the aggregate amounts reported as being received by or made available to our operators from funding sources provided under the CARES Act. (7) Provides additional near-term liquidity for our operators. (8) Amount includes estimated distribution to eligible senior housing operators equal to 2% of annual patient care revenue. (9) Benefit may be limited depending on reserve requirements under any working capital or other loans utilized by our operators.
8 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 PORTFOLIO Senior Housing - Managed Portfolio (1) REVPOR and Occupancy Percentage are presented for the three months ended at the end of the respective period and include only Stabilized Facilities owned by the Company as of the end of such period and only for the duration such facilities were owned by the Company and classified as Stabilized Facilities. In addition, revenues, Cash NOI and REVPOR have been adjusted for changes in the foreign currency exchange rate where applicable. (2) Reflects Sabra’s 49% pro rata share of applicable amounts related to its unconsolidated joint venture with Enlivant. (3) Balances related to properties in Canada are based on the exchange rate as of the end of the period presented. The exchange rate as of December 31, 2020 was $0.7848 per 1 CAD. (4) Wholly-owned properties: Revenues and Cash NOI balances include $0.6 million and $1.2 million of government grant income for 4Q 2020 and 3Q 2020, respectively; Cash NOI balances also include $1.0 million, $1.2 million, $1.7 million and $0.3 million of expenses for 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020, respectively, in each case related to increased supplies and labor needs related to the COVID-19 pandemic. Unconsolidated JV properties: Revenues and Cash NOI balances include $0.5 million and $3.0 million of government grant income for 4Q 2020 and 3Q 2020, respectively; Cash NOI balances also include $2.0 million, $1.3 million, $2.3 million and $0.5 million of expenses for 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020, respectively, in each case related to increased supplies and labor needs related to the COVID-19 pandemic. Senior Housing - Managed Portfolio by Operator (1) Dollars in thousands, except REVPOR 4Q 2020 4Q 2019 Enlivant Sabra’s Share of Unconsolidated JV (2) Wholly-Owned Total Enlivant Holiday Sienna Other Total Total Property Type AL AL AL IL IL AL AL / IL AL / IL Number of Properties 158 11 169 22 8 6 205 216 Number of Units 7,056 631 7,687 3,117 757 419 11,980 12,347 Investment (3) $ 732,236 $ 128,343 $ 860,579 $ 587,058 $ 133,742 $ 93,852 $ 1,675,231 $ 1,648,700 Capital Expenditures: (3) Recurring $ 1,949 $ 559 $ 2,508 $ 1,622 $ 764 $ 287 $ 5,181 $ 2,747 Non-recurring $ 331 $ 49 $ 380 $ — $ 258 $ 378 $ 1,016 $ 3,255 Revenues (4) $ 34,438 $ 9,334 $ 43,772 $ 18,573 $ 4,493 $ 5,737 $ 72,575 $ 77,844 Cash NOI (4) $ 5,054 $ 1,911 $ 6,965 $ 6,331 $ 1,080 $ 828 $ 15,204 $ 22,641 Cash NOI Margin % 14.7 % 20.5 % 15.9 % 34.1 % 24.0 % 14.4 % 20.9 % 29.1 % REVPOR $ 4,576 $ 6,029 $ 4,815 $ 2,518 $ 2,488 $ 6,055 $ 3,773 $ 3,687 Occupancy 71.6 % 77.0 % 72.5 % 80.8 % 79.5 % 79.6 % 76.4 % 85.3 % Senior Housing - Managed Portfolio — Wholly-Owned (1) Dollars in thousands, except REVPOR 4Q 2020 3Q 2020 2Q 2020 1Q 2020 4Q 2019 Number of Properties 47 47 47 47 46 Number of Units 4,924 4,924 4,922 4,922 4,809 Capital Expenditures: (3) Recurring $ 3,232 $ 1,440 $ 542 $ 736 $ 1,599 Non-recurring $ 685 $ 381 $ 70 $ 322 $ 901 Revenues (4) $ 38,137 $ 39,475 $ 38,954 $ 40,163 $ 38,603 Cash NOI (4) $ 10,150 $ 11,623 $ 10,704 $ 12,789 $ 12,552 Cash NOI Margin % 26.6 % 29.4 % 27.5 % 31.8 % 32.5 % REVPOR - AL $ 6,038 $ 5,938 $ 5,865 $ 6,052 $ 6,019 REVPOR - IL $ 2,511 $ 2,525 $ 2,510 $ 2,505 $ 2,498 Occupancy 80.0 % 81.6 % 83.9 % 86.6 % 87.7 % Senior Housing - Managed Portfolio — Sabra’s Share of Unconsolidated JV (1)(2) Dollars in thousands, except REVPOR 4Q 2020 3Q 2020 2Q 2020 1Q 2020 4Q 2019 Number of Properties 158 158 159 168 170 Number of Units 7,056 7,056 7,086 7,463 7,538 Capital Expenditures: Recurring $ 1,949 $ 1,006 $ 415 $ 724 $ 1,148 Non-recurring $ 331 $ 145 $ 680 $ 609 $ 2,354 Revenues (4) $ 34,438 $ 37,802 $ 36,150 $ 38,135 $ 39,241 Cash NOI (4) $ 5,054 $ 9,034 $ 6,305 $ 8,370 $ 10,089 Cash NOI Margin % 14.7 % 23.9 % 17.4 % 21.9 % 25.7 % REVPOR (all AL) $ 4,576 $ 4,411 $ 4,302 $ 4,340 $ 4,418 Occupancy 71.6 % 75.8 % 78.9 % 81.5 % 82.2 %
9 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 PORTFOLIO Same Store Senior Housing - Managed Portfolio (1) Same store Senior Housing - Managed portfolio includes all facilities owned for the full period in all comparison periods. Same store REVPOR and Occupancy Percentage are presented for the three months ended at the end of the respective period for Stabilized Facilities owned for the full period in all comparison periods. In addition, revenues, Cash NOI and REVPOR have been adjusted for changes in the foreign currency exchange rate where applicable. (2) Same store wholly-owned properties: Revenues and Cash NOI balances include $0.6 million and $1.0 million of government grant income for 4Q 2020 and 3Q 2020, respectively; Cash NOI balances also include $0.8 million, $1.1 million, $1.5 million and $0.3 million of expenses for 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020, respectively, in each case related to increased supplies and labor needs related to the COVID-19 pandemic. Same store unconsolidated JV properties: Revenues and Cash NOI balances include $0.5 million and $3.0 million of government grant income for 4Q 2020 and 3Q 2020; Cash NOI balances also include $2.0 million, $1.3 million, $2.2 million and $0.5 million of expenses for 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020, respectively, in each case related to increased supplies and labor needs related to the COVID-19 pandemic. (3) Reflects Sabra’s 49% pro rata share of applicable amounts related to its unconsolidated joint venture with Enlivant. Same Store Senior Housing - Managed Portfolio — Wholly-Owned (1) Dollars in thousands, except REVPOR 4Q 2020 3Q 2020 2Q 2020 1Q 2020 4Q 2019 Number of Properties 44 44 44 44 44 Revenues (2) $ 34,854 $ 35,900 $ 35,401 $ 36,641 $ 37,157 Cash NOI (2) $ 9,623 $ 10,635 $ 9,734 $ 11,721 $ 12,323 Cash NOI Margin % 27.6 % 29.6 % 27.5 % 32.0 % 33.2 % REVPOR - AL $ 6,157 $ 6,027 $ 5,970 $ 5,997 $ 6,019 REVPOR - IL $ 2,511 $ 2,525 $ 2,510 $ 2,505 $ 2,498 Occupancy 80.2 % 81.8 % 83.9 % 86.5 % 87.7 % Same Store Senior Housing - Managed Portfolio — Sabra’s Share of Unconsolidated JV (1)(3) Dollars in thousands, except REVPOR 4Q 2020 3Q 2020 2Q 2020 1Q 2020 4Q 2019 Number of Properties 158 158 158 158 158 Revenues (2) $ 34,455 $ 37,678 $ 35,198 $ 36,654 $ 37,647 Cash NOI (2) $ 5,163 $ 9,058 $ 6,597 $ 8,541 $ 10,279 Cash NOI Margin % 15.0 % 24.0 % 18.7 % 23.3 % 27.3 % REVPOR (all AL) $ 4,576 $ 4,411 $ 4,302 $ 4,340 $ 4,418 Occupancy 71.6 % 75.8 % 78.9 % 81.5 % 82.2 %
10 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 PORTFOLIO Loans and Other Investments | Development Pipeline Loans Receivable and Other Investments Dollars in thousands As of December 31, 2020 Loan Type Number of Loans Property Type Principal Balance Book Value Weighted Average Contractual Interest Rate Weighted Average Annualized Effective Interest Rate Interest Income Three Months Ended December 31, 2020 (1) Maturity Date Mortgage 1 Specialty Hospital $ 19,000 $ 19,000 10.0 % 10.0 % $ 486 01/31/27 Construction 1 Senior Housing 3,343 3,352 8.0 % 7.8 % 68 09/30/22 Other 16 Multiple 42,977 39,005 6.8 % 6.9 % 700 03/01/21- 08/31/28 18 65,320 61,357 7.8 % 7.9 % $ 1,254 Allowance for loan losses — (2,458) $ 65,320 $ 58,899 Other Investment Type Number of Investments Property Type Total Funding Commitments Total Amount Funded Book Value (2) Rate of Return Other Income Three Months Ended December 31, 2020 (1) Preferred Equity 6 Skilled Nursing / Senior Housing $ 37,493 $ 37,493 $ 43,940 11.3 % $ 1,211 (1) Includes income related to loans receivable and other investments held as of December 31, 2020. (2) Includes projects invested in or committed to as of December 31, 2020. (3) Investment amount excludes accrued and unpaid interest receivable. (4) Certificate of occupancy timing represents the period in which the certificate of occupancy has been received for a development project where construction has been completed or when the certificate of occupancy is expected to be received for a development project that is currently under construction. Proprietary Development Pipeline (2) Dollars in thousands Estimated Real Estate Value Upon Completion As of December 31, 2020 Investment Type Property Type Investment Amount (3) Weighted Average Initial Cash Lease Yield Certificate of Occupancy Timing (4)State Loan Preferred Equity Skilled Nursing/ Transitional Care Senior Housing Skilled Nursing/ Transitional Care Senior Housing Skilled Nursing/ Transitional Care Senior Housing Indiana — 1 — 1 $ — $ 7,169 $ — $ 38,000 7.6 % Q3 2017 Ohio — 2 — 2 — 10,674 — 67,000 7.3 % Q1 2018- Q4 2019 Texas 1 1 1 1 3,749 3,333 14,475 5,700 8.6 % Q3 2016- Q1 2020 1 4 1 4 $ 3,749 $ 21,176 $ 14,475 $ 110,700 7.6 %
11 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 North American Healthcare: 7.6% Signature Healthcare: 7.5% Cadia Healthcare: 7.2% Signature Behavioral: 6.6% Managed (No Operator Credit Exposure): 13.6% Other: 48.9% Avamere Family of Companies: 8.6% RELATIONSHIP CONCENTRATION ASSET CLASS CONCENTRATION PAYOR SOURCE CONCENTRATION (2) PORTFOLIO NOI Concentrations (1) As of December 31, 2020 (1) Concentrations are calculated using Annualized Cash NOI. Relationship and asset class concentrations use Annualized Cash NOI for real estate investments, investments in loans receivable and other investments, and investment in unconsolidated joint venture. Payor source concentration excludes Annualized Cash NOI from investments in loans receivable and other investments. (2) Tenant and borrower revenue presented one quarter in arrears. Enlivant 6.6% Holiday 5.1%Other 1.9% Senior Housing - Managed: 13.6% Specialty Hospital and Other: 10.8% Senior Housing - Leased: 9.8% Interest and Other Income: 2.0% Skilled Nursing/ Transitional Care: 63.8% Private Pay: 41.0% Non-Private: 59.0%
12 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 PORTFOLIO Geographic Concentrations Property Type As of December 31, 2020 Location Skilled Nursing/ Transitional Care Senior Housing - Leased Senior Housing - Managed Specialty Hospitals and Other Consolidated Total % of Consolidated Total Unconsolidated JV Senior Housing - Managed Total % of Total Texas 39 9 6 14 68 16.0 % 28 96 16.4 % Indiana 14 3 — 1 18 4.2 21 39 6.7 California 24 1 1 4 30 7.0 — 30 5.1 Washington 15 1 1 — 17 4.0 12 29 5.0 Kentucky 24 1 — 2 27 6.3 1 28 4.8 Oregon 15 4 — — 19 4.5 6 25 4.3 Ohio 5 1 — — 6 1.4 15 21 3.6 Wisconsin 4 3 3 — 10 2.4 10 20 3.4 Pennsylvania 2 — 5 1 8 1.9 11 19 3.3 Massachusetts 18 — — — 18 4.2 — 18 3.1 Other (33 states & Canada) 127 42 31 5 205 48.1 54 259 44.3 Total 287 65 47 27 426 100.0 % 158 584 100.0 % % of Consolidated Total 67.4 % 15.3 % 11.0 % 6.3 % 100.0 % % of Total 49.1 % 11.1 % 8.1 % 4.6 % 72.9 % 27.1 % 100.0 % Distribution of Beds/Units As of December 31, 2020 Property Type Location Total Number of Properties Skilled Nursing/ Transitional Care Senior Housing - Leased Senior Housing - Managed Specialty Hospitals and Other Consolidated Total % of Consolidated Total Unconsolidated JV Senior Housing - Managed Total % of Total Texas 96 4,816 577 856 366 6,615 15.7 % 1,092 7,707 15.7 % Kentucky 28 2,598 142 — 100 2,840 6.8 55 2,895 5.9 Indiana 39 1,439 432 — 48 1,919 4.6 963 2,882 5.9 California 30 2,058 58 102 340 2,558 6.1 — 2,558 5.2 Washington 29 1,591 52 113 — 1,756 4.2 504 2,260 4.6 Massachusetts 18 2,209 — — — 2,209 5.2 — 2,209 4.5 Oregon 25 1,520 377 — — 1,897 4.5 207 2,104 4.3 North Carolina 15 1,454 — 237 — 1,691 4.0 — 1,691 3.4 New York 10 1,566 — 107 — 1,673 4.0 — 1,673 3.4 Missouri 14 1,075 — 184 — 1,259 3.0 — 1,259 2.6 Other (33 states & Canada) 280 11,435 2,644 3,325 238 17,642 41.9 4,235 21,877 44.5 Total 584 31,761 4,282 4,924 1,092 42,059 100.0 % 7,056 49,115 100.0 % % of Consolidated Total 75.5 % 10.2 % 11.7 % 2.6 % 100.0 % % of Total 64.7 % 8.7 % 10.0 % 2.2 % 85.6 % 14.4 % 100.0 %
13 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 PORTFOLIO Geographic Concentrations Continued Investment (1) Dollars in thousands As of December 31, 2020 Property Type Location Total Number of Properties Skilled Nursing/ Transitional Care Senior Housing - Leased Senior Housing - Managed Specialty Hospitals and Other Total % of Total Texas 68 $ 385,040 $ 81,305 $ 182,316 $ 196,035 $ 844,696 14.2 % California 30 435,612 18,160 36,479 225,361 715,612 12.0 Oregon 19 261,316 86,860 — — 348,176 5.9 Maryland 9 325,887 3,250 — — 329,137 5.5 New York 10 297,573 — 20,014 — 317,587 5.3 Kentucky 27 228,773 23,669 — 39,696 292,138 4.9 Indiana 18 174,581 88,824 — 5,310 268,715 4.5 Washington 17 188,551 10,686 27,752 — 226,989 3.8 Arizona 8 33,822 10,348 38,218 121,757 204,145 3.4 North Carolina 15 123,462 — 68,395 — 191,857 3.2 Other (30 states & Canada) (2) 205 1,189,853 384,532 569,822 82,634 2,226,841 37.3 Total 426 $ 3,644,470 $ 707,634 $ 942,996 $ 670,793 $ 5,965,893 100.0 % % of Total investment 61.1 % 11.9 % 15.8 % 11.2 % 100.0 % (1) Excludes our unconsolidated joint venture. (2) Investment balance in Canada is based on the exchange rate as of December 31, 2020 of $0.7848 per 1 CAD.
14 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 PORTFOLIO Lease Expirations Lease Expirations (1) Dollars in thousands Skilled Nursing/ Transitional Care Senior Housing - Leased Specialty Hospitals and Other Total Annualized RevenuesAs of December 31, 2020 % of Total 2021 (2) $ — $ 501 $ — $ 501 0.1 % 2022 24,724 5,140 — 29,864 7.0 % 2023 9,074 — — 9,074 2.1 % 2024 21,586 2,397 — 23,983 5.6 % 2025 15,294 3,202 1,308 19,804 4.6 % 2026 28,768 1,317 — 30,085 7.1 % 2027 41,444 — 33,538 74,982 17.6 % 2028 15,086 8,113 4,037 27,236 6.4 % 2029 58,891 5,739 5,691 70,321 16.5 % 2030 13,903 — 2,976 16,879 4.0 % Thereafter 93,228 23,152 7,007 123,387 29.0 % Total Annualized Revenues $ 321,998 $ 49,561 $ 54,557 $ 426,116 100.0 % (1) Annualized Revenues are net of repositioning reserves, if applicable. (2) All 2021 lease expirations are in the fourth quarter.
15 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 INVESTMENT ACTIVITY Summary Investment Activity Dollars in thousands Location Initial Investment Date Property Type Number of Properties Beds/Units 2020 Amounts Invested (1) Rate of Return/Initial Cash Yield Real Estate Traditions of Brookside (2) 01/07/20 Senior Housing- Leased 1 157 $ 33,363 7.24 % Elan Westpointe (3) 01/15/20 Senior Housing - Managed 1 113 25,000 8.00 % Traditions of Beaumont (4) 01/31/20 Senior Housing - Leased 1 142 24,000 7.38 % Traditions at Hunter Station (5) 04/01/20 Senior Housing - Leased 1 135 30,223 7.28 % Additions to Real Estate (6) Various Multiple N/A N/A 34,197 8.52 % Total Real Estate Investments 146,783 7.70 % Preferred Equity Wellmore of Daniel Island 07/31/20 Senior Housing 1 186 20,000 10.00 % Total Preferred Equity Investments 20,000 10.00 % Loans Receivable Ignite Promissory Note (7) 01/07/20 Skilled Nursing/ Transitional Care N/A N/A 865 7.00 % Additional Loans Receivable Fundings (8) Various Multiple N/A N/A 772 8.00 % Total Loans Receivable 1,637 7.47 % All Investments in 2020 $ 168,420 7.97 % (1) Excludes capitalized acquisition costs and origination fees. (2) Amount invested reflects the gross investment, of which $7.1 million was used to repay our preferred equity investment in this property that had a 12% yield. (3) Amount invested reflects the gross investment, of which $6.4 million was used to repay our preferred equity investment in this property that had a 10% yield. (4) Amount invested reflects the gross investment, of which $2.5 million was used to repay our preferred equity investment in this property that had a 12% yield. (5) Amount invested reflects the gross investment, of which $4.6 million was used to repay our preferred equity investment in this property that had a 12% yield. (6) Excludes capital expenditures for the Senior Housing - Managed portfolio and recurring capital expenditures for the Triple-Net portfolio. (7) Loan repaid in full October 2020. (8) Initial investment occurred prior to 2020. Amount invested reflects incremental fundings during the year ended December 31, 2020.
16 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 CAPITALIZATION Overview Debt Dollars in thousands Sabra's Share of Unconsolidated JV DebtAs of December 31, 2020 Consolidated Debt Total Debt Secured debt $ 80,199 $ 380,524 $ 460,723 Revolving credit facility — — — Term loans 1,053,100 — 1,053,100 Senior unsecured notes 1,250,000 — 1,250,000 Total Debt 2,383,299 380,524 2,763,823 Deferred financing costs and premiums/discounts, net (10,925) (3,732) (14,657) Total Debt, Net $ 2,372,374 $ 376,792 $ 2,749,166 Revolving Credit Facility Dollars in thousands As of December 31, 2020 Credit facility availability $ 1,000,000 Credit facility capacity 1,000,000 Enterprise Value Dollars in thousands, except per share amounts As of December 31, 2020 Shares Outstanding Price Value Common stock 210,560,815 $ 17.37 $ 3,657,441 Consolidated Debt 2,383,299 Cash and cash equivalents (59,076) Consolidated Enterprise Value 5,981,664 Sabra’s share of unconsolidated joint venture debt 380,524 Sabra's share of unconsolidated joint venture cash and cash equivalents (6,710) Total Enterprise Value $ 6,355,478 Common Stock and Equivalents Weighted Average Common Shares Three Months Ended December 31, 2020 Year Ended December 31, 2020 EPS, FFO and Normalized FFO AFFO and Normalized AFFO EPS, FFO and Normalized FFO AFFO and Normalized AFFO Common stock 208,069,163 208,069,163 206,190,783 206,190,783 Common equivalents 32,720 32,720 32,720 32,720 Basic common and common equivalents 208,101,883 208,101,883 206,223,503 206,223,503 Dilutive securities: Restricted stock and units 1,220,249 1,881,362 1,029,327 1,816,027 Diluted common and common equivalents 209,322,132 209,983,245 207,252,830 208,039,530 At-The-Market Common Stock Offering Program Dollars in thousands, except per share amounts Three Months Ended December 31, 2020 Shares issued 3,573,645 Net proceeds $ 59,174 Weighted average price per share $ 16.81 Availability as of December 31, 2020 $ 234,674 Forward sales agreements as of December 31, 2020: Shares outstanding 1,126,262 Weighted average price per share, net of commissions $ 17.44
17 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 CAPITALIZATION Indebtedness Fixed | Variable Rate Debt Dollars in thousands Weighted Average Effective Rate (1)As of December 31, 2020 Principal % of Total Fixed Rate Debt Secured debt $ 80,199 3.39 % 2.9 % Unsecured senior notes 1,250,000 4.76 % 45.2 % Total fixed rate debt 1,330,199 4.68 % 48.1 % Variable Rate Debt (2) Term loans 1,053,100 2.35 % 38.1 % Sabra’s share of unconsolidated joint venture variable rate debt 380,524 2.68 % 13.8 % Total variable rate debt 1,433,624 2.43 % 51.9 % Total Debt $ 2,763,823 3.52 % 100.0 % Secured | Unsecured Debt Dollars in thousands Weighted Average Effective Rate (1)As of December 31, 2020 Principal % of Total Secured Debt Secured debt $ 80,199 3.39 % 2.9 % Sabra’s share of unconsolidated joint venture secured debt 380,524 2.68 % 13.8 % Total secured debt 460,723 2.80 % 16.7 % Unsecured Debt Unsecured senior notes 1,250,000 4.76 % 45.2 % Term loans 1,053,100 2.35 % 38.1 % Total unsecured debt 2,303,100 3.66 % 83.3 % Total Debt $ 2,763,823 3.52 % 100.0 % (1) Weighted average effective interest rate includes private mortgage insurance and impact of interest rate derivative agreements. (2) Term loans include $845.0 million subject to swap agreements that fix LIBOR at a weighted average rate of 1.24%, and $98.1 million (CAD $125.0 million) subject to a swap agreement that fixes CDOR at 0.93%. Excluding these amounts, variable rate debt was 17.7% of Total Debt as of December 31, 2020. Additionally, unconsolidated joint venture debt includes $375.5 million subject to interest rate cap agreements that cap LIBOR at a weighted average rate of 2.88%.
18 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 CAPITALIZATION Debt Maturity Debt Maturity Schedule Dollars in thousands Secured Debt Unsecured Senior Notes Term Loans Revolving Credit Facility (1) Consolidated Debt Sabra's Share of Unconsolidated JV Debt Total Debt As of December 31, 2020 Principal Rate (2) Principal Rate (2) Principal Rate (2) Principal Rate (2) Principal Rate (2) Principal Rate (2) Principal Rate (2) 2021 $ 18,419 3.04 % $ — — $ — — $ — — $ 18,419 3.04 % $ 4,726 2.66 % $ 23,145 2.97 % 2022 2,412 2.88 % — — 105,000 1.39 % — — 107,412 1.43 % 14,971 2.66 % 122,383 1.58 % 2023 2,478 2.89 % — — 350,000 1.39 % — — 352,478 1.40 % 6,774 2.66 % 359,252 1.43 % 2024 2,545 2.90 % 300,000 4.80 % 598,100 1.45 % — — 900,645 2.57 % 6,826 2.66 % 907,471 2.57 % 2025 2,615 2.91 % — — — — — — 2,615 2.91 % 189,031 2.66 % 191,646 2.66 % 2026 2,687 2.92 % 500,000 5.13 % — — — — 502,687 5.11 % 81,662 2.84 % 584,349 4.80 % 2027 2,761 2.93 % 100,000 5.88 % — — — — 102,761 5.80 % 70,602 2.57 % 173,363 4.48 % 2028 2,837 2.94 % — — — — — — 2,837 2.94 % 165 2.43 % 3,002 2.91 % 2029 2,914 2.96 % 350,000 3.90 % — — — — 352,914 3.89 % 165 2.43 % 353,079 3.89 % 2030 2,994 2.98 % — — — — — — 2,994 2.98 % 165 2.43 % 3,159 2.95 % Thereafter 37,537 3.27 % — — — — — — 37,537 3.27 % 5,437 2.43 % 42,974 3.17 % Total Debt 80,199 1,250,000 1,053,100 — 2,383,299 380,524 2,763,823 Premium, net — 6,442 — — 6,442 — 6,442 Deferred financing costs, net (1,134) (8,049) (8,184) — (17,367) (3,732) (21,099) Total Debt, Net $ 79,065 $ 1,248,393 $ 1,044,916 $ — $ 2,372,374 $ 376,792 $ 2,749,166 Wtd. avg. maturity/years 18.2 6.0 3.2 2.7 5.2 4.9 5.1 Wtd. avg. interest rate (3) 3.39 % 4.76 % 2.35 % 1.24 % 3.65 % 2.68 % 3.52 % (1) Revolving Credit Facility is subject to two six-month extension options. (2) Represents actual contractual interest rates excluding private mortgage insurance and impact of interest rate derivative agreements. (3) Weighted average interest rate includes private mortgage insurance and impact of interest rate derivative agreements.
19 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 Key Credit Metrics (1) December 31, 2019 December 31, 2020 Net Debt to Adjusted EBITDA (2)(3) 4.89x 4.88x Net Debt to Adjusted EBITDA - Including Unconsolidated Joint Venture (2)(3) 5.38x 5.49x Interest Coverage (2) 5.28x 5.32x Fixed Charge Coverage Ratio (2) 5.08x 5.14x Total Debt/Asset Value 36 % 35 % Secured Debt/Asset Value 2 % 1 % Unencumbered Assets/Unsecured Debt 275 % 282 % Cost of Permanent Debt (4) 3.79 % 3.52 % Unsecured Notes Ratings S&P (Stable outlook) BBB- Fitch (Stable outlook) BBB- Moody’s (Negative outlook) Ba1 CAPITALIZATION Credit Metrics and Ratings (1) Key credit statistics (except net debt to adjusted EBITDA) are calculated in accordance with the credit agreement relating to the revolving credit facility and the indentures relating to our unsecured senior notes. (2) Based on the trailing twelve month period ended as of the date indicated. (3) Net Debt to Adjusted EBITDA is calculated based on Pro Forma Annualized Adjusted EBITDA, which is Adjusted EBITDA, as adjusted for annualizing adjustments that give effect to the acquisitions and dispositions completed during the respective period as though such acquisitions and dispositions were completed as of the beginning of the period presented. Net Debt to Adjusted EBITDA - Including Unconsolidated Joint Venture is calculated based on Annualized Adjusted EBITDA, as adjusted, which includes Annualized Adjusted EBITDA and is further adjusted to include the Company's share of the unconsolidated joint venture interest expense. See “Reconciliations of Non-GAAP Financial Measures” on our website at http://www.sabrahealth.com/investors/financials/reports-presentations/non-gaap for additional information. (4) Excludes revolving credit facility balance that had an interest rate of 1.24% and 2.91% as of December 31, 2020 and 2019, respectively.
20 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 FINANCIAL INFORMATION 1Q 2021 Outlook 1Q 2021 Guidance Diluted per share data attributable to common stockholders Net income $ 0.16 - $ 0.17 FFO $ 0.39 - $ 0.40 AFFO $ 0.38 - $ 0.39 Dividend per share $0.30 Senior Housing - Managed Portfolio Average Quarterly Occupancy • Wholly-owned: 75.4% - 77.4% • Unconsolidated Joint Venture: 66.0% - 68.0% Investments and Dispositions • Investments of $39.0 million with a weighted average initial cash yield of 8.2%. • Dispositions and loan repayments of $6.2 million, with associated annualized Cash NOI of $0.4 million. • Capital expenditures in our wholly-owned Senior Housing - Managed portfolio of $3.2 million. Financing and Leverage Management • Maintain Net Debt to Annualized Adjusted EBITDA (including unconsolidated joint venture) below 5.50x on expected Annualized Adjusted EBITDA between $479 million and $481 million as of March 31, 2021. • Utilize availability under the revolver and issue between $100 million and $110 million of equity under our ATM Program to fund acquisitions and manage leverage due to reduced earnings during the pandemic from our Senior Housing - Managed portfolio. Other Assumptions • Non-cash rental income: $5.7 million • Interest and other income: $3.2 million • Recurring, cash general and administrative expense: $6.9 million • Stock-based compensation expense: $2.3 million • Cash interest expense: $22.7 million • Non-cash interest expense: $2.7 million • Unconsolidated Joint Venture cash interest expense: $2.5 million • Unconsolidated Joint Venture non-cash interest expense: $0.1 million • The estimated amounts above do not include any anticipated funds from the Provider Relief Fund for our Senior Housing - Managed communities.
21 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 FINANCIAL INFORMATION Consolidated Financial Statements Consolidated Statements of Income Dollars in thousands, except per share data Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 Revenues: Rental and related revenues $ 110,733 $ 112,847 $ 430,584 $ 452,138 Interest and other income 3,184 4,395 11,940 81,540 Resident fees and services 38,137 38,521 156,045 128,058 Total revenues 152,054 155,763 598,569 661,736 Expenses: Depreciation and amortization 44,158 44,032 176,737 181,549 Interest 24,524 27,429 100,424 126,610 Triple-net portfolio operating expenses 5,109 5,075 20,590 22,215 Senior housing - managed portfolio operating expenses 27,987 25,999 110,963 86,257 General and administrative 8,105 5,934 32,755 30,886 Provision for (recovery of) loan losses and other reserves 1,149 (219) 1,855 1,238 Impairment of real estate 849 2,717 4,003 121,819 Total expenses 111,881 110,967 447,327 570,574 Other (expense) income: Loss on extinguishment of debt — (5,577) (531) (16,340) Other (expense) income (154) 1,709 2,154 2,094 Net gain on sales of real estate 33 1,084 2,861 2,300 Total other (expense) income (121) (2,784) 4,484 (11,946) Income before loss from unconsolidated joint venture and income tax benefit (expense) 40,052 42,012 155,726 79,216 Loss from unconsolidated joint venture (3,562) (1,161) (16,599) (6,796) Income tax benefit (expense) 627 (1,110) (710) (3,402) Net income 37,117 39,741 138,417 69,018 Net income attributable to noncontrolling interests — — — (22) Net income attributable to common stockholders $ 37,117 $ 39,741 $ 138,417 $ 68,996 Net income attributable to common stockholders, per: Basic common share $ 0.18 $ 0.20 $ 0.67 $ 0.37 Diluted common share $ 0.18 $ 0.20 $ 0.67 $ 0.37 Weighted-average number of common shares outstanding, basic 208,101,883 197,840,180 206,223,503 187,172,210 Weighted-average number of common shares outstanding, diluted 209,322,132 199,048,481 207,252,830 188,127,092
22 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 FINANCIAL INFORMATION Consolidated Financial Statements Consolidated Balance Sheets Dollars in thousands, except per share data December 31, 2020 2019 Assets Real estate investments, net of accumulated depreciation of $681,657 and $539,213 as of December 31, 2020 and 2019, respectively $ 5,285,038 $ 5,341,370 Loans receivable and other investments, net 102,839 107,374 Investment in unconsolidated joint venture 288,761 319,460 Cash and cash equivalents 59,076 39,097 Restricted cash 6,447 10,046 Lease intangible assets, net 82,796 101,509 Accounts receivable, prepaid expenses and other assets, net 160,646 150,443 Total assets $ 5,985,603 $ 6,069,299 Liabilities Secured debt, net $ 79,065 $ 113,070 Term loans, net 1,044,916 1,040,258 Senior unsecured notes, net 1,248,393 1,248,773 Accounts payable and accrued liabilities 146,276 108,792 Lease intangible liabilities, net 57,725 69,946 Total liabilities 2,576,375 2,580,839 Equity Preferred stock, $0.01 par value; 10,000,000 shares authorized, zero shares issued and outstanding as of December 31, 2020 and 2019 — — Common stock, $0.01 par value; 500,000,000 shares authorized, 210,560,815 and 205,208,018 shares issued and outstanding as of December 31, 2020 and 2019, respectively 2,106 2,052 Additional paid-in capital 4,163,228 4,072,079 Cumulative distributions in excess of net income (716,195) (573,283) Accumulated other comprehensive loss (39,911) (12,388) Total equity 3,409,228 3,488,460 Total liabilities and equity $ 5,985,603 $ 6,069,299
23 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 FINANCIAL INFORMATION Consolidated Financial Statements Consolidated Statements of Cash Flows Dollars in thousands Year Ended December 31, 2020 2019 Cash flows from operating activities: Net income $ 138,417 $ 69,018 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 176,737 181,549 Non-cash rental and related revenues (4,458) (19,449) Non-cash interest income (2,351) (2,212) Non-cash interest expense 8,418 10,080 Stock-based compensation expense 7,907 9,819 Non-cash lease termination income — (10,579) Loss on extinguishment of debt 531 16,340 Provision for loan losses and other reserves 1,855 1,238 Net gain on sales of real estate (2,861) (2,300) Impairment of real estate 4,003 121,819 Loss from unconsolidated joint venture 16,599 6,796 Distributions of earnings from unconsolidated joint venture 12,795 13,865 Changes in operating assets and liabilities: Accounts receivable, prepaid expenses and other assets, net (6,398) (9,639) Accounts payable and accrued liabilities 3,658 (13,870) Net cash provided by operating activities 354,852 372,475 Cash flows from investing activities: Acquisition of real estate (92,945) (51,136) Origination and fundings of loans receivable (1,651) (13,065) Origination and fundings of preferred equity investments (20,069) — Additions to real estate (47,354) (25,451) Repayments of loans receivable 4,093 18,367 Repayments of preferred equity investments 3,419 5,079 Net proceeds from sales of real estate 16,751 329,050 Distributions in excess of earnings from unconsolidated joint venture 1,305 — Net cash (used in) provided by investing activities (136,451) 262,844 Cash flows from financing activities: Net repayments of revolving credit facility — (624,000) Proceeds from issuance of senior unsecured notes — 638,779 Principal payments on senior unsecured notes — (700,000) Principal payments on term loans — (145,000) Principal payments on secured debt (3,072) (3,436) Payments of deferred financing costs (830) (15,598) Payments related to extinguishment of debt — (10,502) Distributions to noncontrolling interest — (316) Issuance of common stock, net 80,092 549,328 Dividends paid on common stock (278,299) (335,435) Net cash used in financing activities (202,109) (646,180) Net increase (decrease) in cash, cash equivalents and restricted cash 16,292 (10,861) Effect of foreign currency translation on cash, cash equivalents and restricted cash 88 346 Cash, cash equivalents and restricted cash, beginning of period 49,143 59,658 Cash, cash equivalents and restricted cash, end of period $ 65,523 $ 49,143 Supplemental disclosure of cash flow information: Interest paid $ 92,589 $ 123,854 Income taxes paid $ 2,439 $ 3,911 Supplemental disclosure of non-cash investing activities: Decrease in loans receivable and other investments due to acquisition of real estate $ 20,731 $ — Secured debt assumed by buyers in connection with sales of real estate $ 31,830 $ —
24 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 FINANCIAL INFORMATION FFO, Normalized FFO, AFFO and Normalized AFFO (1) For FFO and AFFO, the year ended December 31, 2020 includes $2.3 million earned during the period related to legacy Care Capital Properties, Inc. investments. In addition, other normalizing items for FFO and AFFO include triple-net operating expenses, net of recoveries. FFO, Normalized FFO, AFFO and Normalized AFFO Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 Net income attributable to common stockholders $ 37,117 $ 39,741 $ 138,417 $ 68,996 Add: Depreciation and amortization of real estate assets 44,158 44,032 176,737 181,549 Depreciation and amortization of real estate assets related to noncontrolling interest — — — (93) Depreciation and amortization of real estate assets related to unconsolidated joint venture 5,424 5,547 26,949 21,649 Net gain on sales of real estate (33) (1,084) (2,861) (2,300) Net loss on sales of real estate related to unconsolidated joint venture 10 — 3,281 1,690 Impairment of real estate 849 2,717 4,003 121,819 FFO attributable to common stockholders $ 87,525 $ 90,953 $ 346,526 $ 393,310 Write-offs of straight-line rental income receivable and lease intangibles — — 21,200 7,326 Lease termination income — (854) (300) (67,802) Loss on extinguishment of debt — 5,577 531 16,340 Provision for (recovery of) doubtful accounts and loan losses, net 1,149 (219) 1,855 1,238 Other normalizing items (1) (314) 115 (1,283) 5,330 Normalized FFO attributable to common stockholders $ 88,360 $ 95,572 $ 368,529 $ 355,742 FFO attributable to common stockholders $ 87,525 $ 90,953 $ 346,526 $ 393,310 Merger and acquisition costs 50 232 483 424 Stock-based compensation expense 2,256 990 7,907 9,819 Non-cash rental and related revenues (5,798) (6,484) (4,458) (19,449) Non-cash interest income (608) (532) (2,351) (2,212) Non-cash interest expense 1,891 2,234 8,418 10,080 Non-cash portion of loss on extinguishment of debt — 1,972 531 5,838 Provision for (recovery of) loan losses and other reserves 1,149 (219) 1,855 1,238 Non-cash lease termination income — (854) — (10,579) Other non-cash adjustments related to unconsolidated joint venture 576 1,212 1,913 4,135 Other non-cash adjustments 205 76 342 171 AFFO attributable to common stockholders $ 87,246 $ 89,580 $ 361,166 $ 392,775 Cash portion of lease termination income — — (300) (57,223) Cash portion of loss on extinguishment of debt — 3,605 — 10,502 Other normalizing items (1) (337) (10) (1,369) 5,056 Normalized AFFO attributable to common stockholders $ 86,909 $ 93,175 $ 359,497 $ 351,110 Amounts per diluted common share attributable to common stockholders: Net income $ 0.18 $ 0.20 $ 0.67 $ 0.37 FFO $ 0.42 $ 0.46 $ 1.67 $ 2.09 Normalized FFO $ 0.42 $ 0.48 $ 1.78 $ 1.89 AFFO $ 0.42 $ 0.45 $ 1.74 $ 2.08 Normalized AFFO $ 0.41 $ 0.47 $ 1.73 $ 1.86 Weighted average number of common shares outstanding, diluted: Net income, FFO and Normalized FFO 209,322,132 199,048,481 207,252,830 188,127,092 AFFO and Normalized AFFO 209,983,245 199,496,049 208,039,530 188,775,872
25 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 FINANCIAL INFORMATION Components of Net Asset Value (NAV) (1) Amounts represent principal amounts due and exclude deferred financing costs, net and premiums/discounts, net. (2) Represents Sabra’s 49% share of unconsolidated Enlivant joint venture’s debt. (3) Represents Sabra’s 49% share of unconsolidated Enlivant joint venture’s cash and cash equivalents and restricted cash. (4) Includes balances that impact cash or NOI and excludes non-cash items. Annualized Cash NOI Dollars in thousands Skilled Nursing/Transitional Care $ 322,000 Senior Housing - Leased 49,561 Senior Housing - Managed — Wholly-Owned 42,315 Senior Housing - Managed — Sabra's share of unconsolidated joint venture 26,351 Specialty Hospitals and Other 54,556 Annualized Cash NOI (excluding loans receivable and other investments) $ 494,783 Obligations Dollars in thousands Secured debt (1) $ 80,199 Unsecured senior notes (1) 1,250,000 Revolving credit facility — Term loans (1) 1,053,100 Sabra’s share of unconsolidated JV debt (2) 380,524 Total Debt 2,763,823 Add (less): Cash and cash equivalents and restricted cash (65,523) Sabra’s share of unconsolidated JV cash and cash equivalents and restricted cash (3) (13,429) Accounts payable and accrued liabilities (4) 99,655 Net obligations $ 2,784,526 Other Assets Dollars in thousands Loans receivable and other investments, net $ 102,839 Accounts receivable, prepaid expenses and other assets, net (4) 43,743 Total other assets $ 146,582 Common Shares Outstanding Total shares 210,560,815 We disclose components of our business relevant to calculate NAV. We consider NAV to be a useful supplemental measure that assists both management and investors to estimate the fair value of our Company. The calculation of NAV involves significant estimates and can be calculated using various methods. Each individual investor must determine the specific methodology, assumptions and estimates to use to arrive at an estimated NAV of the Company. The components of NAV do not consider potential changes in our investment portfolio. The components include non-GAAP financial measures, such as Cash NOI. Although these measures are not presented in accordance with GAAP, investors can use these non-GAAP financial measures as supplemental information to evaluate our business.
26 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 APPENDIX Disclaimer Disclaimer This supplement contains “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified, without limitation, by the use of “expects,” “believes,” “intends,” “should” or comparable terms or the negative thereof. Examples of forward- looking statements include all statements regarding our expected future financial position, results of operations, cash flows, liquidity, business strategy, growth opportunities, potential investments, and plans and objectives for future operations. Our actual results may differ materially from those projected or contemplated by our forward-looking statements as a result of various factors, including, among others, the following: the ongoing COVID-19 pandemic and measures intended to prevent its spread, including the impact on our tenants, operators and Senior Housing - Managed communities; our dependence on the operating success of our tenants; the potential variability of our reported rental and related revenues following the adoption of Accounting Standards Update (“ASU”) 2016-02, Leases, as amended by subsequent ASUs, on January 1, 2019; operational risks with respect to our Senior Housing - Managed communities; the effect of our tenants declaring bankruptcy or becoming insolvent; our ability to find replacement tenants and the impact of unforeseen costs in acquiring new properties; the impact of litigation and rising insurance costs on the business of our tenants; the possibility that Sabra may not acquire the remaining majority interest in the Enlivant Joint Venture; risks associated with our investments in joint ventures; changes in healthcare regulation and political or economic conditions; the impact of required regulatory approvals of transfers of healthcare properties; competitive conditions in our industry; our concentration in the healthcare property sector, particularly in skilled nursing/ transitional care facilities and senior housing communities, which makes our profitability more vulnerable to a downturn in a specific sector than if we were investing in multiple industries; the significant amount of and our ability to service our indebtedness; covenants in our debt agreements that may restrict our ability to pay dividends, make investments, incur additional indebtedness and refinance indebtedness on favorable terms; increases in market interest rates; the phasing out of the London Interbank Offered Rate (“LIBOR”) benchmark beginning after 2021; our ability to raise capital through equity and debt financings; changes in foreign currency exchange rates; the relatively illiquid nature of real estate investments; the loss of key management personnel; uninsured or underinsured losses affecting our properties and the possibility of environmental compliance costs and liabilities; the impact of a failure or security breach of information technology in our operations; our ability to maintain our status as a real estate investment trust (“REIT”) under the federal tax laws; changes in tax laws and regulations affecting REITs (including the potential effects of the Tax Cuts and Jobs Act); compliance with REIT requirements and certain tax and tax regulatory matters related to our status as a REIT; and the ownership limits and takeover defenses in our governing documents and under Maryland law, which may restrict change of control or business combination opportunities. Additional information concerning risks and uncertainties that could affect our business can be found in our filings with the Securities and Exchange Commission (the “SEC”), including in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020. We do not intend, and we undertake no obligation, to update any forward-looking information to reflect events or circumstances after the date of this supplement or to reflect the occurrence of unanticipated events, unless required by law to do so. Note Regarding Non-GAAP Financial Measures This supplement includes the following financial measures defined as non-GAAP financial measures by the SEC: net operating income (“NOI”), Cash NOI, funds from operations attributable to common stockholders (“FFO”), Normalized FFO, Adjusted FFO (“AFFO”), Normalized AFFO, FFO per diluted common share, Normalized FFO per diluted common share, AFFO per diluted common share, Normalized AFFO per diluted common share and Adjusted EBITDA (defined below). These measures may be different than non-GAAP financial measures used by other companies, and the presentation of these measures is not intended to be considered in isolation or as a substitute for financial information prepared and presented in accordance with U.S. generally accepted accounting principles. An explanation of these non-GAAP financial measures is included under “Reporting Definitions” in this supplement and reconciliations of these non-GAAP financial measures to the GAAP financial measures we consider most comparable are included on the Investors section of our website at http://www.sabrahealth.com/investors/financials/reports-presentations/non-gaap. Tenant and Borrower Information This supplement includes information regarding certain of our tenants that lease properties from us and our borrowers, most of which are not subject to SEC reporting requirements. The information related to our tenants and borrowers that is provided in this supplement has been provided by, or derived from information provided by, such tenants and borrowers. We have not independently verified this information. We have no reason to believe that such information is inaccurate in any material respect. We are providing this data for informational purposes only. Sabra Information The information in this supplemental information package should be read in conjunction with the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other information filed with the SEC. The Reporting Definitions and Reconciliations of Non-GAAP Measures are an integral part of the information presented herein. On Sabra’s website, www.sabrahealth.com, you can access, free of charge, Sabra's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Sections 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after such material is filed with, or furnished to, the SEC. The information contained on Sabra’s website is not incorporated by reference into, and should not be considered a part of, this supplemental information package. All material filed with the SEC can also be accessed through its website, www.sec.gov. For more information, contact Investor Relations at (888) 393-8248 or investorrelations@sabrahealth.com.
27 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 APPENDIX 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, excluding expenses related to the COVID-19 pandemic, and non-cash revenues and expenses. 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, additional rents or government grant income and are net of repositioning reserves, if applicable. 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 and expenses. Cash NOI excludes all other financial statement amounts included in net income. Consolidated Debt The principal balances of the Company’s revolving credit facility, term loans, senior unsecured notes, and secured indebtedness as reported in the Company’s consolidated financial statements. Consolidated Debt, Net The carrying amount of the Company’s revolving credit facility, term loans, senior unsecured notes, and secured indebtedness, as reported in the Company’s consolidated financial statements. Consolidated Enterprise Value The Company believes Consolidated Enterprise Value is an important measurement as it is a measure of a company’s value. The Company calculates Consolidated Enterprise Value as market equity capitalization plus Consolidated Debt. Market equity capitalization is calculated as (i) the number of shares of common stock multiplied by the closing price of the Company’s common stock on the last day of the period presented plus (ii) the number of shares of preferred stock multiplied by the closing price of the Company’s preferred stock on the last day of the period presented. Consolidated Enterprise Value includes the Company’s market equity capitalization and Consolidated Debt, less cash and cash equivalents. EBITDARM Earnings before interest, taxes, depreciation, amortization, rent and management fees (“EBITDARM”) for a particular facility accruing to the operator/tenant of the property (not the Company), for the period presented. The Company uses EBITDARM in determining EBITDARM Coverage. EBITDARM has limitations as an analytical tool. EBITDARM does not reflect historical cash expenditures or future cash requirements for facility capital expenditures or contractual commitments. In addition, EBITDARM does not represent a property’s net income or cash flows from operations and should not be considered an alternative to those indicators. The Company utilizes EBITDARM to evaluate the core operations of the properties by eliminating management fees, which may vary by operator/tenant and operating structure, and as a supplemental measure of the ability of the Company’s operators/tenants and relevant guarantors to generate sufficient liquidity to meet related obligations to the Company. EBITDARM Coverage Represents the ratio of EBITDARM to cash rent for owned facilities (excluding Senior Housing - Managed communities) for the period presented. EBITDARM Coverage is a supplemental measure of a property’s ability to generate cash flows for the operator/tenant (not the Company) to meet the operator’s/tenant’s related cash rent and other obligations to the Company. However, its usefulness is limited by, among other things, the same factors that limit the usefulness of EBITDARM. EBITDARM Coverage includes only Stabilized Facilities and excludes facilities for which data is not available or meaningful.
28 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 APPENDIX Reporting Definitions 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 and the Company’s share of gains or losses from real estate dispositions related to its unconsolidated joint venture, 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, non-cash portion of loss on extinguishment of debt, provision for 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. Investment Represents the carrying amount of real estate assets after adding back accumulated depreciation and amortization and excludes net intangible assets and liabilities. Investment also includes the Company’s pro rata share of the real estate assets held in the Company’s unconsolidated joint venture. Market Capitalization Total common shares of Sabra outstanding multiplied by the closing price per common share as of a given period. 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 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 FFO and AFFO or Normalized FFO and Normalized AFFO differently than the Company does. Occupancy Percentage Occupancy Percentage represents the facilities’ average operating occupancy for the period indicated. The percentages are calculated by dividing the actual census from the period presented by the available beds/units for the same period. Occupancy includes only Stabilized Facilities and excludes facilities for which data is not available or meaningful. Occupancy Percentage for the Company’s unconsolidated joint venture is weighted to reflect the Company’s pro rata share.
29 SABRA 4Q 2020 SUPPLEMENTAL INFORMATION December 31, 2020 APPENDIX Reporting Definitions REVPOR REVPOR represents the average revenues generated per occupied unit per month at Senior Housing - Managed communities for the period indicated. It is calculated as resident fees and services revenues, excluding government grant income, divided by average monthly occupied unit days. REVPOR includes only Stabilized Facilities. REVPOR for the Company’s unconsolidated joint venture is weighted to reflect the Company’s pro rata share. Senior Housing Senior Housing communities include independent living, assisted living, continuing care retirement and memory care communities. Senior Housing - Managed Senior Housing communities operated by third-party property managers pursuant to property management agreements. Skilled Mix Skilled Mix is defined as the total Medicare and non-Medicaid managed care patient revenue at Skilled Nursing/Transitional Care facilities divided by the total revenues at Skilled Nursing/Transitional Care facilities for the period indicated. Skilled Mix includes only Stabilized Facilities and excludes facilities for which data is not available or meaningful. Skilled Nursing/Transitional Care Skilled Nursing/Transitional Care facilities include skilled nursing, transitional care, multi-license designation and mental health facilities. Specialty Hospitals and Other Includes acute care, long-term acute care, rehabilitation and behavioral hospitals, facilities that provide residential services, which may include assistance with activities of daily living, and other facilities not classified as Skilled Nursing/Transitional Care or Senior Housing. Stabilized Facility At the time of acquisition, the Company classifies each facility as either stabilized or non-stabilized. In addition, the Company may classify a facility as non- stabilized after acquisition. Circumstances that could result in a facility being classified as non-stabilized include newly completed developments, facilities undergoing major renovations or additions, facilities being repositioned or transitioned to new operators, and significant transitions within the tenants’ business model. Such facilities are typically reclassified to stabilized upon the earlier of maintaining consistent occupancy (85% for Skilled Nursing/ Transitional Care facilities and 90% for Senior Housing communities) or 24 months after the date of classification as non-stabilized. Stabilized Facilities exclude (i) facilities held for sale, (ii) strategic disposition candidates, (iii) facilities being transitioned to a new operator, (iv) facilities being transitioned from being leased by the Company to being operated by the Company and (v) facilities acquired during the three months preceding the period presented. Total Debt Consolidated Debt plus the Company’s pro rata share of the principal balances of the debt of the Company’s unconsolidated joint venture. Total Debt, Net Consolidated Debt, Net plus the Company’s pro rata share of the carrying amount of the debt of the Company’s unconsolidated joint venture. Total Enterprise Value Consolidated Enterprise Value plus the Company’s pro rata share of the principal balances of the debt of the Company’s unconsolidated joint venture. *Non-GAAP Financial Measures Reconciliations, definitions and important discussions regarding the usefulness and limitations of the Non-GAAP Financial Measures used in this supplement can be found at http://www.sabrahealth.com/investors/financials/reports-presentations/non-gaap.