Orange County Business Journal

Sabra Gets Lifts on Q3 Results

Vita Reed Thursday, October 24, 2013

Shares of Irvine-based Sabra Health Care REIT Inc. notched another modest gain after it posted a strong third-quarter reporter and trimmed guidance for the full year.

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.

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, below analysts’ expectations of $69.2 million.

Shares of Sabra rose 2% yesterday and another 1% or so in early trading today, to a market value of about $989 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.