Sabra Health Care REIT (NASDAQ: SBRA) reported Q1 EPS of $0.34, $0.03 worse than the analyst estimate of $0.37. Revenue for the quarter came in at $166.08 million versus the consensus estimate of $160.99 million.

RECENT HIGHLIGHTS

• For the first quarter of 2018, net income attributable to common stockholders, FFO, Normalized FFO, AFFO and Normalized AFFO per diluted common share were $0.34, $0.64, $0.63, $0.59 and $0.58, respectively, compared to $0.25, $0.54, $0.55, $0.55 and $0.53, respectively, for the first quarter of 2017.
• For the first quarter of 2018, Normalized AFFO per diluted common share increased 9.4% over the same quarter in 2017 primarily as a result of the completion of the Care Capital Properties, Inc. (CCP) merger in the third quarter of 2017.
• During the first quarter of 2018, we received $13.0 million in payments from Senior Care Centers for the repayment in full of one loan receivable and partial payment of a second loan receivable leaving a balance of $5.0 million.
• Subsequent to March 31, 2018, we completed the sale of six facilities leased to Genesis for gross sales proceeds of $20.5 million. Of the remaining 40 facilities leased to Genesis that we plan to sell, 25 are currently under contract for sale with expected total sales proceeds of $254.0 million, and 15 are under letter of intent with expected total sales proceeds of $79.8 million. All sales are expected to be completed by the end of 2018, with the majority closing by the early part of the third quarter. Annual cash rents expected to be eliminated from the sales of the 46 facilities total $30.5 million, triggering residual rents to be paid to Sabra of $10.2 million per year for the following 4.28 years as provided for in our agreement with Genesis. We expect to retain eight facilities leased to Genesis, which generate annual cash rents of $10.4 million.
• On May 2, 2018, we announced that we will redeem all 5,750,000 outstanding shares of our 7.125% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”) on June 1, 2018 (the “Redemption Date”). The shares of Series A Preferred Stock will be redeemed at a redemption price of $25.00 per share, plus any accrued and unpaid dividends to, but not including, the Redemption Date, without interest, in the amount of $0.4453125 per share of Series A Preferred Stock, for a total redemption price per share of Series A Preferred Stock equal to $25.4453125 and an aggregate payment of $146.3 million.

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