Yesterday, 4:10 PM
Wed, Jul. 15, 8:23 AM
Wed, Jul. 8, 12:30 PM
- "With interest rate fears driving the sector down 21% from its January [level], fundamental drivers remain strong and we see healthcare REIT valuations at their best entry point in 18 months," says Canaccord, initiating coverage on a number of sector names.
- Started at Buy are Caretrust REIT (CTRE -2.7%), Health Care REIT (HCN +0.6%), New Senior Investment (SNR -1%), and Physicians Realty Trust (DOC +0.3%).
- Started at Hold are Sabra Health Care REIT (SBRA +0.5%), and BioMed Realty (BMR -0.1%).
Thu, Jul. 2, 3:01 PM
- Even as public market valuations have pulled back, says Citi's Michael Bilerman, private market pricing has remained strong, widening the gap between price and value.
- While fund flows are a negative, Bilerman notes an uptick in interest from market generalists, suggesting they're beginning to spot value in the sector.
- Healthcare: The REITs here are particularly sensitive to rising rates given high external growth expectations and accretive "spread" investing. Bilerman has Overweights in large-cap Ventas (NYSE:VTR) and small-cap Sabra Health Care (NASDAQ:SBRA).
- Lodging: Supply is largely intact and demand continues to improve, hopefully setting up a strong H2. He continues to favor C-corps like Hilton Worldwide (NYSE:HLT), but also has Overweight positions on Host Hotels (NYSE:HST) and LaSalle Hotel (NYSE:LHO).
- Office/Industrial: This sector offers particular opportunity for outperformance, and he prefers urban names, Boston Property (NYSE:BXP), SL Green (NYSE:SLG), and Vornado (NYSE:VNO), and only select suburban names Parkway (NYSE:PKY) and Mack Cali (NYSE:CLI). In industrial, he's Overweight EastGroup (NYSE:EGP), Prologis (NYSE:PLD), and DCT Industrial (NYSE:DCT).
- Apartments: Growth remains strong and valuations attractive. He's Overweight large caps AvalonBay (NYSE:AVB), Equity Residential (NYSE:EQR), and UDR, as well as value name Camden Property Trust (NYSE:CPT).
- Retail: He's still Overweight Class A mall REITs, but is getting more bullish on strip mall names, with Kimco (NYSE:KIM), Acadia (NYSE:AKR), and Weingarten (NYSE:WRI) upgraded to Buy. Other top picks are General Growth (NYSE:GGP), Simon Property (NYSE:SPG), Kite Realty (NYSE:KRG), and Forest City (NYSE:FCE.A).
- Previously: Citi spots value in beaten-up REIT sector (July 2)
Thu, Jun. 25, 7:30 AM
- The 5.9M share offering (upsized from 5M) resulted in expected gross proceeds of roughly $149M, suggesting a price of $25.24. The offering comes alongside the acquisition of four SNFs for $234M.
- Source: Press Release
- SBRA -3.8% premarket to $25.30.
- Previously: Sabra buying nursing facilities for $234M, launching 5M-share offering (June 24)
Wed, Jun. 24, 5:36 PM
Wed, Jun. 24, 5:16 PM
- Sabra Health Care REIT (NASDAQ:SBRA) is buying "four skilled nursing facilities that specialize in transitional care and medically complex post-surgical, ventilator and dialysis patients with a total of 678 licensed beds" for $234M.
- The company will enter into lease agreements with the current operator of the facilities that sport "an initial term of 15 years with two 10-year renewal options and annual rent escalators equal to the greater of 2.50% or CPI, but not to exceed 2.75%."
- CEO Rick Matros: "The Canadian acquisition we recently announced reduced our skilled nursing exposure to approximately 50%, opening up the opportunity for us to look more seriously at skilled nursing acquisitions. The NMS Portfolio will only increase that exposure to 55.9%, and our intent is to maintain our skilled nursing exposure at or around 50%."
- Concurrently, Sabra has announced a 5M-share stock offering. Proceeds will be used to repay credit facility borrowings, fund acquisitions, and/or for "general corporate purposes."
Tue, Jun. 9, 7:40 AM
- The portfolio includes eight independent living facilities and one assisted living facility located in British Columbia and Ontario. Upon closing, SBRA will enter into a triple-net master lease agreement with Senior Lifestyle Corporation expected to have an initial term of 10 years with annual rent increases baked in. The initial yield on cash rent should be 6%.
- Sabra also enters a pipeline agreement with Leo Brown Group under which LBG will identify senior housing development projects and secure financing. Sabra will have the right to provide some equity financing.
- Source: Press Release
Tue, May 5, 4:50 PM
Wed, Feb. 18, 4:13 PM
- Q4 normalized adjusted FFO of $30.5M or $0.54 per share vs. $19.5M and $0.50 one year ago.
- Fixed charge coverage ratios: Genesis Healthcare 1.26x vs. 1.22x a year ago. Tenet Health Care 2.11x (N/A/ a year ago). Holiday AL Holdings 1.24x (N/A a year ago).
- Conference call tomorrow at 1 ET
- Previously: EPS in-line, beats on revenue (Feb. 18)
- SBRA flat after hours
Wed, Feb. 18, 4:03 PM
Tue, Feb. 17, 5:35 PM
- ABX, ACT, AMTG, ARII, ARRS, ASGN, AVG, AXLL, BGS, BJRI, CAR, CDE, CSLT, CVG, CW, CYNI, DENN, DTLK, ELNK, EOG, EQC, ETE, ETP, EXAM, FNF, HSTM, HT, IAG, IPI, KEG, KEYW, LHO, LOPE, MANT, MAR, MHLD, MIC, MRO, NVMI, OGS, OIS, PAAS, PCYC, PKD, REXX, RGP, SBRA, SCTY, SIX, SNPS, SSS, STR, SUN, SUNE, SXL, TERP, THRX, TILE, TRN, TS, UAM, WES, WGP, WMB, WPZ, XPO, YUME
Wed, Jan. 21, 3:14 PM
- Equity REITs had a nice run after bond yields peaked last year and began declining, but, says a now-cautious John Authers from the FT, that rally has turned into a stampede. And while the U.S. has led the way, U.K., European, and global REIT indexes have also had big gains.
- Since October, the S&P 500 REITs index is up 19% vs. 1.4% for the S&P 500, and a 22.5% loss for the Alerian index of MLPs.
- Valuation has now become a concern, with every REIT sector covered by SNL Securities trading at a premium to NAV (not the mortgage REITs though). Healthcare REITs - HCP, MPW, HTA, UHT, LTC, SBRA, OHI, HCN come to mind - are at a 25% premium.
- SNL's Jason Lail dismissed some concerns, noting REITs trade at a 12.% premium to NAV, well within the 20% above and below NAV they typically range between. Also, fundamentals remain sound, with supply still constricted in many areas.
- JPMorgan's Jason Ko notes pockets of value, particularly office REITs which trade a minimal premium. Boston Properties (BXP -0.1%) is a particular favorite. Others in the sector include: EQC, WRE, CSG, FPO, HIW.
- Simon Property (SPG +0.2%) is Ko's biggest holding as mall bankruptcies and chain closings should leave the survivors stronger. His 2nd-largest holding is industrial player ProLogis (PLD +0.2%).
- ETFs: IYR, VNQ, WPS, VNQI, DRN, RWX, URE, SRS, ICF, SCHH, RWR, RWO, IFGL, KBWY, DRV, DRW, REK, FRI, GRI, IFEU, FTY, FFR, RWXL, PSR, IFNA, WREI, REET
Wed, Jan. 14, 7:46 AM
- S&P boosts the corporate credit rating on Sabra Health Care REIT (NASDAQ:SBRA) to BB- from B+, with stable outlook. This move follows similar action from Fitch last month.
- CEO Rick Matros: "[This] provides continued validation of our strategy of diversification, reduced cost of capital, and deleveraging. We will continue to focus on our ultimate goal of an investment grade rating."
- Source: Press Release
Mon, Jan. 12, 4:11 PM
Mon, Jan. 12, 4:09 PM
- Adjusted FFO per share is expected at $2.05-$2.10. The current annual dividend run rate is $1.56 per share.
- In Q4, SBRA issued 4.4M shares through its ATM program, for net proceeds of $121M. Part of this was used to pay down the company credit line, bringing net debt to adjusted EBITDA to 5.1x from 5.5x.
- Source: Press Release
SBRA vs. ETF Alternatives
Sabra Health Care REIT Inc operates as a self-administered & self-managed REIT. The Company through its subsidiaries is engaged in acquiring, financing and owning real estate property to be leased to third party tenants in the healthcare sector.
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