Sabra Health Care REIT, Inc. (NASDAQ:SBRA) Q2 2016 Earnings Conference Call - Final Transcript

Aug 02, 2016 • 10:00 am ET


Sabra Health Care REIT, Inc. (NASDAQ:SBRA) Q2 2016 Earnings Conference Call - Final Transcript


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Good day ladies and gentlemen and welcome to the Sabre Healthcare REIT Second Quarter 2016 Earnings Conference Call. This call is being recorded. I would now like to turn the call over to Talya Nevo-Hacohen, Chief Investment Officer. Please go ahead.

Talya Nevo-Hacohen

Thank you. Good morning. Before we begin, I want to remind you that we will be making forward-looking statements in our comments and in response to your questions concerning our expectations regarding our acquisition and investment plans, our expectations regarding our financing plans, our expectations regarding our tenant relationships, and our expectations regarding our future results of operations.

These forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially, including the risks listed in our form 10-K for the year ended December 31, 2015 that is on filed with the SEC, as well as in our earnings press release included as Exhibit 99.1 to the Form 8-K we furnished to the SEC yesterday.

We undertake no obligation to update our forward-looking statements to reflect subsequent events or circumstances and you should not assume later in the quarter that the comments we make today are still valid. In addition, references will be made during this call to non-GAAP financial results. Investors are encouraged to review those non-GAAP financial measures as well as the explanation and reconciliation of these measures to the comparable GAAP results included at the end of our earnings press release and the supplemental information materials included as Exhibits 99.1 and 99.2, respectively, to the Form 8-K we furnished to the SEC yesterday. These materials can also be accessed in the Investor Relations section of our website at

And with that, let me turn the call over to Rick Matros, Chairman and CEO, of Sabra Health Care REIT.

Richard Matros

Thanks, Talya. Thanks for joining us today everybody. So, we reported another strong quarter last night, we had solid operational results and lower leverage. We've updated our guidance, which Harold will provide specifics on. We also announced the planned disposition of a significant number of Genesis facilities. These dispositions will reduce our exposure to our largest tenant and it will leave us with 43 Genesis facilities, which is half the number we started with at the time of the split and leaving us with stronger assets that will see increased rent coverage over time as Genesis will be able to focus on their best performing assets rather than have a disc portion to the management times spent on more challenging assets, which is a trap that operators always get caught it.

Our lease expirations will now occur ratably rather than be front loaded. Harold will provide the specifics on that as well. I'd also note that this is just one piece of a number of larger strategic initiatives that I'm sure Genesis will be talking about on their call going forward and I think those initiatives will give the market great comfort relative to what Genesis is