On this page of StockholderLetter.com we present the 4/24/2023 shareholder letter from Sabra Health Care REIT, Inc. — ticker symbol SBRA. Reading current and past SBRA letters to shareholders can bring important insights into the investment thesis.

 •  4/24/2023 Letter Continued (Full PDF)
 •  4/26/2024 SBRA Stockholder Letter
 •  More "REITs" Category Stockholder Letters
 •  SBRA Benford's Law Stock Score = 93

SBRA 4/24/2023 Shareholder/Stockholder Letter Transcript:

Focused on the
fundamentals





Rick Matros
President and Chair of
the Board

Strong, Diverse, Stable
Enterprise Value
Although we faced challenges, including high
interest rates, a tough real estate market, the
lack of availability and cost of labor as well
as in  ation, our dedicated team steadfastly
managed what was within our control to
preserve value for our stakeholders. We
emerged from 2022 with our corporate culture
of diversity, collaboration and discipline   rmly
in place. I am proud of the team we   ve built and
even prouder of how we   ve performed during a
challenging year.
Liquidity
We know what happens inside our buildings
matters most and work hard to support our
tenants, operators and borrowers so that they
can stay at the forefront of care delivery. They
know they can rely on us to support their capital
needs, deliver valuable insights, share best
practices, and provide opportunities to network
and collaborate with other industry participants.
In 2023, we expect to maintain stability by
remaining focused on the fundamentals while
looking for opportunities to increase earnings
growth and support our operators as they
continue to recover.
We are pleased to enter 2023 with a strong
balance sheet, enhanced by the renewal and
extension of our credit facility in January 2023,
which improved our debt maturity pro  le by
pushing our nearest material maturity to August
2026 while holding pricing in line with our prior
credit facility.
$5.3B
$0.9B
Investments
437
Relationships
73
Supporting what
matters
Max Relationship Concentration
8.8%
As of December 31, 2022
SABRA HEALTH CARE REIT, INC.
01

2022 Highlights
We continue to diversify our portfolio through
strategic dispositions, repurposing assets and
opportunistic acquisitions.
Investing in Behavioral Health and
Adaptive Reuse
We grew our behavioral health portfolio through
traditional acquisitions and adaptive reuse in
2022. By recycling assets that were underutilized
to a more productive use, we expect to improve
earnings by creating value out of assets we
already own while providing much-needed jobs
and services to local communities.
As of December 31, 2022, our portfolio of
owned addiction treatment centers is up to
12 properties, consisting of acquired addiction
treatment centers and properties that have
been converted or are in the process of being
converted to addiction treatment centers,
and we are negotiating several additional
conversion opportunities for existing wholly
owned assets.
02
ANNUAL REPORT 2022

Dispositions of Less Productive Assets
In addition to utilizing adaptive reuse to recycle
capital, we also recycle capital into moreproductive assets and further diversify our
portfolio with dispositions. In 2022, we generated
$89.3 million of gross proceeds primarily from
the sale of skilled nursing facilities. These
proceeds not only funded our capital recycling
program   they also provided the added bene  t
of reducing our skilled nursing exposure at
the end of 2022 to 58.1 percent of our total
Annualized Cash NOI, as adjusted, our lowest
exposure since 2017. Subsequent to year-end,
we engaged in additional dispositions and
repayments that further lowered our skilled
nursing exposure.
Behavioral health represents 13.4% of
our Annualized Cash NOI, as adjusted
Asset Class Concentration
Skilled Nursing/
Transitional Care: 58.1%
Behavioral Health: 13.4%
Senior Housing Managed: 13.4%
Senior Housing Leased: 10.4%
Specialty Hospital and Other: 4.0%
Other: 0.7%
As of December 31, 2022
SABRA HEALTH CARE REIT, INC.
03



 4/24/2023 Letter Continued (Full PDF)