Sabra’s Q3 Results MixedWednesday, October 23, 2013
Irvine-based Sabra Health Care REIT Inc. today reported mixed third-quarter results.
Sabra owns nursing homes and other healthcare facilities.
The company’s funds from operations, which are considered a better gauge of performance than profits for real estate investment trusts, were up 38% from 2012’s third quarter to $17.5 million. Wall Street expected Sabra’s funds from operations to be $17.8 million.
Third-quarter revenue grew 27% to $32.9 million, in line with analysts’ estimate of $33 million.
Sabra said it closed on $211 million worth of real estate deals in the quarter, including a 119-bed hospital in the Dallas suburb of Frisco, Texas.
Sabra also said it continued to reduce its exposure to Kennett Square, Pa.-based nursing home operator Genesis HealthCare LLC but did not say how much of its portfolio is now leased by Genesis. Genesis bought Irvine-based Sun Healthcare Group Inc., which Sabra was spun out of nearly three years ago, in 2012.
The company issued full-year guidance on its funds from operations. Sabra expects funds from operations to be $58.6 million to $59.8 million, well below analysts’ expectations of $69.2 million.
Shares of Sabra closed today up 2% to a market value of $977.8 million.