Sabra Sells ‘Sizable’ SNF Portfolio at $200K Per Bed, Discloses $185M in Recent Proceeds 

Sabra Health Care REIT (Nasdaq: SBRA) on Thursday announced about $185 million has been received in gross proceeds since Sept. 30, 2022, including through a “sizable portfolio” of skilled nursing assets that fetched $200,000 a bed.

The previously disclosed sales were “almost entirely comprised of skilled nursing investments,” Sabra said in a statement. 

The $200,000-per bed price is almost double the national average for cost per bed. The deal also had a cash yield in the mid-single digit range for the 12-month period ending Sept. 30.

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“We are pleased to announce the proceeds from this disposition activity as part of our previously communicated capital recycling strategy,” Sabra CEO Rick Matros said in a statement. “We remain committed to thoughtfully allocating capital and prudently managing our balance sheet in this uncertain macro environment.”

Net proceeds from the disposition activity were used to repay borrowings under Sabra’s revolving credit facility.

Matros added he was pleased to expand Sabra’s relationship with the Ensign Group (Nasdaq; ENSG) and Avamere through the transition of 24 properties formerly leased to North American.

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Ensign put out more details on the deal just yesterday.

The high valuations commanded by nursing care has received much attention. Nursing care ended the fourth financial quarter of 2022 at $97,700 price per bed. That’s a 9.5% increase from a year ago, according to data compiled by the National Investment Center for Seniors Housing & Care (NIC).

Bill Kauffman, senior principal for senior housing and care at NIC, presented the data during a Skilled Nursing News webinar on Tuesday.

“Pricing has generated lots of discussion. [It could] continue to be strong in 2022, but many wonder, will we be able to hold if the private market valuations started to come down, in terms of cost of capital increasing,” Kauffman said.

Panelists during the webinar were puzzled by high valuations for nursing home properties in the past year. Pricing “defies logic,” said Phil Fogg Jr., president and CEO of Marquis Companies and chairman of the American Health Care Association.

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