Sabra's Q1 2025 Earnings Call: Contradictions in Occupancy, Transactions, and Capital Availability

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Strong Financial Performance and Growth:
- Sabra Health Care REIT reported normalized FFO per share of $0.35 and normalized AFFO per share of $0.37 for Q1 2025, up 7% and 9% respectively year-over-year.
- The growth was driven by increased cash rental income from the triple net portfolio and strong performance in the managed senior housing portfolio.

Senior Housing Occupancy and Revenue:
- The occupancy in Sabra's same-store managed senior housing portfolio reached 85.4% for Q1 2025, up from 82.6% in Q1 2024.
- Revenue for the quarter grew by 6.3% year-over-year, supported by strong operational recovery and tactical deployment of occupancy and rate levers.

Deal Pipeline and Investment Activity:
- Sabra was awarded over $200 million worth of senior housing and skilled nursing deals, more than the total awarded in 2024.
- The robust deal pipeline, primarily in SHOP, reflects the company's strategic focus on entering new relationships with proven operators and expanding its domestic footprint.

Leverage Reduction and Financial Health:
- Sabra's net debt to adjusted EBITDA ratio decreased to 5.19x as of March 31, 2025, down from 5.27x in December 2024, and 5.55x in March 2024.
- The reduction was driven by NOI growth in the managed senior housing portfolio, accretive capital recycling, and prudent use of its ATM to fund growth.