Sabra Health Care reports Q3 FFO 33c, consensus 34c

Reports Q3 revenue $161.6M, consensus $159M. The company states: “Sabra’s same-store senior housing managed portfolio performed well as it continues to recover from the pandemic, highlighted by a 170 bps sequential increase in quarterly occupancy, to 81.9%. On a year-over-year basis, third quarter revenue grew by 6.5% driven primarily by higher REVPOR. Healthy top-line growth combined with roughly flat operating expenses resulted in a 28.2% year-over-year increase in quarterly Cash NOI for this portfolio.” CEO Rick Matros said, “We believe our business is moving further and further away from the pandemic-induced bottom. While we expect labor issues to persist, we do see continued improvement. Despite this challenge, occupancy and rent coverage in our skilled and senior housing NNN portfolios remain on an upward trajectory. During the quarter, our senior housing managed portfolio showed strong improvement in all critical metrics. Our balance sheet continues to be exemplary and that, together with our strategy of focusing on our internal growth, has led to improvements in our cost of capital. With an improved cost of capital, the door to external growth has started to open in some cases. To the extent we execute on these opportunities, we are focused on conservatively underwriting lower risk singles and doubles.”