IRVINE, CA—“We had an amazing quarter, with 26% revenue growthand 23% FFO growth—we're ahead of schedule.” So says RickMatros, CEO of Sabra Healthcare REIT, whotells GlobeSt.com that the firm's Q1 results “exceeded ourexpectations. 2013 was our best year yet from an investmentperspective, and 2014 is set up to be the best year we've had.”
In a report, analyst firm RBC Capital MarketsLLC echoes that Sabra's earnings were superior in somecases, but points out some areas where it missed the mark.According to the firm, Sabra's reported FFO of $0.55 per share “metour expectation and surpassed consensus of $0.54 per share. Thecompany's property-level income and mortgage income exceeded ourexpectation, but was offset by higher than expected G&Aexpenses. Including $0.56 per share of debt charges andstraight-line rent write-offs, Q1 2014 NAREIT FFO was negative$0.01 per share, which missed our expectation of positive $0.01 pershare.”
In addition, RBC reports that the company's trailing 12-monthSNF EBITDARM coverage ratio trended lower during the quarter to1.66x from 1.72x in the previous quarter, “likely related to theinclusion of another quarter of Genesis'implementing its operational synergies from the SunHealthcare merger. The trailing 12-month senior-housingEBITDARM coverage ratio improved modestly to 1.41x compared to1.40x. Additionally, Genesis' underlying fixed charge coverageratio was 1.25x.”
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
