Sabra Health Care REIT (SBRA) FY15 FFO Guidance Falls Short

Sabra Health Care REIT, Inc. ("Sabra," the "Company" or "we") (Nasdaq:SBRA) announced its outlook for the year ending December 31, 2015, provided an update on its deleveraging efforts and use of its At-the-Market common equity offering ("ATM") program and announced that its board of directors declared quarterly cash dividends of $0.39 per share of common stock and $0.4453125 per share of Series A Preferred Stock.

2015 Outlook

The Company expects FFO to range between $2.19 and $2.24 per diluted common share and expects AFFO to range between $2.05 and $2.10 per diluted common share. The Company expects net income attributable to common stockholders to range between $1.19 and $1.24 per diluted common share. The Company's guidance excludes the impact of investments that may be made during 2015 and reflects 59,047,001 shares of common stock outstanding as of December 31, 2014.

(Street sees FY15 FFO of $2.47).

The table below sets forth Sabra's 2015 full year guidance:

Except as otherwise noted above, the foregoing projections reflect management's view of current and future market conditions. There can be no assurance that the Company's actual results will not differ materially from the estimates set forth above. Except as otherwise required by law, the Company assumes no, and hereby disclaims any, obligation to update any of the foregoing projections as a result of new information or new or future developments.

Update on Deleveraging Efforts

During the quarter ended December 31, 2014, the Company issued 4.4 million shares of common stock at an average price of $28.20 through its ATM program, resulting in net proceeds of $121.0 million. The Company used a portion of these proceeds to repay borrowings under its revolving credit facility. As a result, the Company's pro forma September 30, 2014 Net Debt to Adjusted EBITDA decreased from 5.50x to 5.10x, and pro forma September 30, 2014 liquidity increased from $312.9 million to $433.9 million, consisting of unrestricted cash and cash equivalents of $2.8 million (excluding cash and cash equivalents associated with the Company's RIDEA-compliant joint venture) and available borrowings under the revolving credit facility of $431.1 million.

Net Debt, Adjusted EBITDA and liquidity are each pro forma for (i) the investment activity during the quarter ended September 30, 2014 or subsequent to September 30, 2014, (ii) the financing activity during the quarter ended September 30, 2014, (iii) the October 2014 equity and debt offerings, (iv) the conversion of $200.0 million of the revolving credit facility to a term loan, and (v) the issuance in December 2014 of 4.4 million shares of common stock through the ATM program and use of a portion of the net proceeds to repay borrowings under the revolving credit facility.

Commenting on Sabra's deleveraging efforts, Rick Matros, CEO and Chairman, said, "Strong demand under our ATM program allowed us to lower our leverage more quickly than we had anticipated. Accordingly we have suspended issuing equity under the ATM until our investment activity warrants re-engaging. We are pleased with the progress we made in our business in 2014 and look forward to a successful 2015."

Dividend Declaration

On January 12, 2015, Sabra's board of directors declared a quarterly cash dividend of $0.39 per share of common stock. The dividend will be paid on February 27, 2015 to common stockholders of record as of the close of business on February 13, 2015.

Also on January 12, 2015, Sabra's board of directors declared a quarterly cash dividend of $0.4453125 per share of Series A Preferred Stock. The dividend will be paid on February 27, 2015 to preferred stockholders of record as of the close of business on February 13, 2015.

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