Sabra Health Care REIT, Inc.
For the period ended Jun 30, 2025. Filed Aug 4, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 4, 2025
SBRA$21.02+0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-05.
0001492298-25-000016
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-04.
0001492298-25-000031
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 113 previous paragraphs and 153 current paragraphs.
68 unchanged; 40 reworded; 35 added; 5 removed; 0 previous and 10 current paragraphs rearranged.
Tables are not compared: 6 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (35)
Current report
Dispositions
Current report
During the six months ended June 30, 2025, we completed the sale of five skilled nursing/transitional care facilities and one behavioral health facility for aggregate consideration, net of closing costs, of $37.1 million, of which $33.5 million was received on July 1, 2025. The net carrying value of the assets and liabilities of these facilities was $27.1 million, which resulted in an aggregate $10.0 million net gain on sale. We continue to evaluate additional assets for sale as part of our initiative to recycle capital and further improve our portfolio quality.
Current report
Senior Unsecured Notes
Current report
On July 31, 2025, we redeemed all $500.0 million aggregate principal amount outstanding of the 5.125% senior unsecured notes due 2026. See “—Liquidity and Capital Resources—Material Cash Requirements—Senior Unsecured Notes.”
Current report
Term Loan Credit Facility
Current report
On July 30, 2025, we and certain of our subsidiaries entered into the Term Loan Credit Agreement. See “—Liquidity and Capital Resources—Material Cash Requirements—Term Loan Credit Agreement.”
Current report
During the three months ended June 30, 2025, we recognized $99.8 million of rental income compared to $99.1 million for the three months ended June 30, 2024. The $0.7 million net increase in rental income is related to (i) a $1.8 million net increase of non-cash rent as the result of changing our estimates of collectability for certain leases within our triple-net leased portfolio, (ii) a $1.0 million increase due to lease amendments and annual rental increases based on changes in the Consumer Price Index and (iii) a $0.2 million increase from properties acquired after April 1, 2024. These increases are partially offset by a $1.8 million decrease from properties disposed of after April 1, 2024 and a $0.4 million decrease in revenue related to facilities that were transitioned to Senior Housing - Managed communities after April 1, 2024.
Current report
During the three months ended June 30, 2025, we incurred $43.6 million of depreciation and amortization expense compared to $41.7 million for the three months ended June 30, 2024. The net increase of $1.9 million is due to a $2.1 million increase from properties acquired after April 1, 2024 and a $1.1 million increase from additions to real estate. These increases are partially offset by a $0.9 million decrease from properties disposed of after April 1, 2024.
Current report
During the three months ended June 30, 2025 and 2024, we recognized $14.7 million and $0.1 million of other income, respectively. During the three months ended June 30, 2025, we reclassified $17.2 million of gain related to six previously terminated interest rate swaps from accumulated other comprehensive loss to other income as the related forecasted transactions were determined to be probable not to occur and recognized a $1.0 million gain on insurance proceeds related to damage from a fire that occurred at one of our Senior Housing - Managed communities, partially offset by $3.2 million of transition expenses related to the transition of Senior Housing - Managed communities to new operators.
Current report
Net Gain on Sales of Real Estate
Current report
During the three months ended June 30, 2025, we recognized an aggregate net gain of $10.0 million related to the disposition of five skilled nursing/transitional care facilities and one behavioral health facility. During the three months ended June 30, 2024, we recognized an aggregate net gain of $1.8 million related to the disposition of four skilled nursing/transitional care facilities.
Current report
Income from Unconsolidated Joint Ventures
Current report
(1)Represents the dollar amount increase (decrease) for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 as a result of investments/dispositions made after January 1, 2024.
Current report
Rental and Related Revenues
Current report
Resident Fees and Services
Current report
During the six months ended June 30, 2025, we recognized $156.4 million of resident fees and services compared to $134.0 million for the six months ended June 30, 2024. The $22.5 million net increase is due toa $12.5 million increase related to four Senior Housing - Managed communities acquired after January 1, 2024, a $2.3 million increase related to five facilities that were transitioned to Senior Housing - Managed communities after January 1, 2024 and the remaining increase is primarily related to increased occupancy and an increase in rates.
Current report
Interest and Other Income
Current report
Depreciation and Amortization
Current report
Interest
Current report
Triple-Net Portfolio Operating Expenses
Current report
During the six months ended June 30, 2025, we recognized $7.2 million of triple-net portfolio operating expenses compared to $8.7 million for the six months ended June 30, 2024. The $1.5 million net decrease isdue to a $1.0 million decrease due to facilities that have since transitioned to new operators who are now paying the property taxes directly and a $0.5 million decrease from properties disposed of after January 1, 2024.
Current report
General and Administrative
Current report
General and administrative expenses include compensation-related expenses as well as professional services, office costs, other costs associated with asset management, and acquisition costs. During the six months ended June 30, 2025, general and administrative expenses were $25.2 million compared to $24.6 million for the six months ended June 30, 2024. The $0.6 million net increase isprimarily related to a $0.6 million net increase in compensation driven by changes in performance-based payout assumptions on incentive compensation and annual salary adjustments and a $0.5 million increase in legal fees due to increased transaction activity. These increases are partially offset by a $0.4 million decrease in insurance expense due to lower rates.
Current report
Recovery of Loan Losses
Current report
During the six months ended June 30, 2025, we recognized a $4.1 million impairment of real estate related to a closed facility. During the six months ended June 30, 2024, we recognized an $18.5 million impairment of real estate related to six facilities that have sold.
Current report
Other Income
Current report
Net Gain on Sales of Real Estate
Current report
During the six months ended June 30, 2025, we recognized a net gain of $10.0 million related to the disposition of five skilled nursing/transitional care facilities and one behavioral health facility. During the six months ended June 30, 2024, we recognized an aggregate net gain of $1.8 million related to the disposition of four skilled nursing/transitional care facilities.
Current report
During the six months ended June 30, 2025, we recognized $1.1 million of income from our unconsolidated joint ventures compared to $0.5 million of loss for the six months ended June 30, 2024. The $1.6 million net improvement is primarily related to (i)a $1.0 million increase in revenues net of operating expenses primarily due to increased occupancy and rates, (ii) a $0.4 million decrease in interest expense primarily due to decreased interest rates and (iii) a $0.2 million decrease in depreciation expense due to assets that have been fully depreciated.
Current report
Income Tax Expense
Current report
During each of the six months ended June 30, 2025 and 2024, we recognized $0.9 million of income tax expense.
Current report
On July 31, 2025, we redeemed all $500.0 million aggregate principal amount outstanding of the 2026 Notes at a premium of 100.575%, plus accrued and unpaid interest. As a result of the redemption, we recognized $1.1 million of redemption related costs and write-offs subsequent to June 30, 2025, consisting of $2.9 million in payments made to noteholders for early redemption net of $1.7 million of write-offs associated with unamortized premium.
Current report
Term Loan Credit Agreement. On July 30, 2025, the Borrowers, Sabra and the other parties thereto entered into an unsecured credit agreement for a $500.0 million U.S. dollar term loan which matures on July 30, 2030 (the “Term Loan Credit Agreement”). The proceeds were used to redeem the 2026 Notes. The Term Loan Credit Agreement also contains an accordion feature that can increase the total available borrowings to $1.0 billion, subject to terms and conditions.
Current report
See Note 8, “Debt,” in the Notes to Consolidated Financial Statements for additional information concerning the Term Loan Credit Agreement.
Current report
Medicare Reimbursement Rates
Removed paragraphs (5)
Previous report
The above factors have resulted in decreased occupancy and increased operating costs for our tenants and borrowers, which have negatively impacted their operating results and may adversely impact their ability to make full and timely rental payments and debt service payments, respectively, to us. These factors have similarly had a negative impact on our Senior
Previous report
Housing - Managed portfolio operating results. While our tenants, borrowers and Senior Housing - Managed portfolio have experienced increases in occupancy, certain of those occupancy rates are still below pre-pandemic levels. On the labor front, while our tenants, borrowers and Senior Housing - Managed portfolio continue to experience improvements in both permanent labor availability and overall costs from the worst point of the pandemic, permanent labor supply remains lower and costs remain higher than pre-pandemic levels. We are, however, encouraged by increases our tenants are receiving in reimbursement rates in our skilled nursing/transitional care portfolio, as those increases have led to margin recovery despite occupancy being below pre-pandemic levels. Additionally, favorable demographics, including an aging population and longer life expectancies, are expected to benefit our tenants as well as our Senior Housing - Managed portfolio.
Previous report
Impairment of Real Estate
Previous report
Skilled Nursing Facility Reimbursement Rates
Previous report
On October 1, 2019, a case-mix classification system called the skilled nursing facility Patient-Driven Payment Model (“PDPM”) became effective pursuant to a Centers for Medicare & Medicaid Services (“CMS”) final rule. PDPM focuses on clinically relevant factors, rather than volume-based service, for determining Medicare payment. PDPM adjusts Medicare payments based on each aspect of a resident’s care, most notably for non-therapy ancillaries, which are items and services not related to the provision of therapy such as drugs and medical supplies, thereby more accurately addressing costs associated with medically complex patients. It further adjusts the skilled nursing facility per diem payments to reflect varying costs throughout the stay and incorporates safeguards against potential financial incentives to ensure that beneficiaries receive care consistent with their unique needs and goals.
Reworded paragraphs (40)
Previous wording
In some cases, we may have to restructure or temporarily defer tenants’ long-term rent obligations and may not be able to do so on terms that are as favorable to us as those currently in place. Reduced or modified rental and debt service amounts could result in the determination that the full amounts of our investments are not recoverable, which could result in an impairment charge. If our tenants and borrowers default on these obligations, such defaults could materially and adversely affect our results of operations and liquidity, in addition to resulting in potential impairment charges. Further, prolonged deterioration in the operating results for our investments in our Senior Housing - Managed portfolio could result in the determination that the full amounts of our investments are not recoverable, which could result in an impairment charge.
Current wording
To the extent that our tenants, borrowers and Senior Housing - Managed portfolio have faced or will face the negative impacts of such conditions, they may be unable to meet their obligations to us or experience a deterioration in operating results. If our tenants and borrowers default on these obligations, such defaults could result in the determination that the full amounts of our investments are not recoverable, which could result in an impairment charge. Further, prolonged deterioration in the operating results for our investments in our Senior Housing - Managed portfolio could result in the determination that the full amounts of our investments are not recoverable, which could result in an impairment charge.
Previous wording
We regularly monitor the effects of economic and market conditions on our operations and financial position, as well as on the operations and financial position of our tenants and borrowers, in order to respond and adapt to the ongoing changes in our operating environment.
Current wording
We regularly monitor the effects of economic and market conditions, as well as actions by national, state and local government administrations and regulatory agencies that affect healthcare policy and general market conditions, on our operations and financial position, as well as on the operations and financial position of our tenants and borrowers, in order to respond and adapt to the ongoing changes in our operating environment.
Previous wording
During the three months ended March 31, 2025, we acquired 24 units on the campus of one of our Senior Housing - Leased communities for consideration of $7.9 million, including acquisition costs. See Note 3, “Recent Real Estate Acquisitions (Consolidated),” in the Notes to Consolidated Financial Statements for additional information regarding this investment.
Current wording
During the six months ended June 30, 2025, we acquired one Senior Housing - Managed community and 24 units on the campus of one of our Senior Housing - Leased communities for aggregate consideration of $61.1 million, including acquisition costs. See Note 3, “Recent Real Estate Acquisitions (Consolidated),” in the Notes to Consolidated Financial Statements for additional information regarding this investment.
Previous wording
Our consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The preparation of our financial statements requires significant management judgments, assumptions and estimates about matters that are inherently uncertain. These judgments affect the reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in our financial statements. Additionally, other companies may utilize different estimates that may impact the comparability of our results of operations to those of companies in similar businesses. A discussion of the accounting policies that management considers critical in that they involve significant management judgments and assumptions, require estimates about matters that are inherently uncertain and because they are important for understanding and evaluating our reported financial results is included in Part II, Item 7 of our 2024 Annual Report on Form 10-K filed with the SEC. There have been no significant changes to our critical accounting policies during the three months ended March 31, 2025.
Current wording
Our consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The preparation of our financial statements requires significant management judgments, assumptions and estimates about matters that are inherently uncertain. These judgments affect the reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in our financial statements. Additionally, other companies may utilize different estimates that may impact the comparability of our results of operations to those of companies in similar businesses. A discussion of the accounting policies that management considers critical in that they involve significant management judgments and assumptions, require estimates about matters that are inherently uncertain and because they are important for understanding and evaluating our reported financial results is included in Part II, Item 7 of our 2024 Annual Report on Form 10-K filed with the SEC. There have been no significant changes to our critical accounting policies during the six months ended June 30, 2025.
Previous wording
As of March 31, 2025, our investment portfolio consisted of 364 real estate properties held for investment, 15 investments in loans receivable, four preferred equity investments and two investments in unconsolidated joint ventures. As of March 31, 2024, our investment portfolio consisted of 374 real estate properties held for investment, four assets held for sale, 14 investments in loans receivable, five preferred equity investments and two investments in unconsolidated joint ventures. In general, we expect that income and expenses related to our portfolio will fluctuate in future periods in comparison to the corresponding prior periods as a result of investment and disposition activity and anticipated future changes in our portfolio. The results of operations presented are not directly comparable due to ongoing acquisition and disposition activity, including our capital recycling initiative.
Current wording
As of June 30, 2025, our investment portfolio consisted of 359 real estate properties held for investment, 13 investments in loans receivable, four preferred equity investments and two investments in unconsolidated joint ventures. As of June 30, 2024, our investment portfolio consisted of 374 real estate properties held for investment, one asset held for sale, 14 investments in loans receivable, five preferred equity investments and two investments in unconsolidated joint ventures. In general, we expect that income and expenses related to our portfolio will fluctuate in future periods in comparison to the corresponding prior periods as a result of investment and disposition activity and anticipated future changes in our portfolio.
Previous wording
Our reported rental and related revenues may be subject to increased variability in the future as a result of lease accounting standards. If at any time we cannot determine that it is probable that substantially all rents over the life of a lease are collectible, rental revenue will be recognized only to the extent of payments received and all receivables associated with the lease will be written off, irrespective of amounts expected to be collectible. However, there can be no assurances regarding the timing and amount of these revenues. Amounts due under the terms of all of our lease agreements are subject to contractual increases, and contingent rental income may be derived from certain lease agreements. No material contingent rental income was derived during the three months ended March 31, 2025 and 2024.
Current wording
Our reported rental and related revenues may be subject to increased variability in the future as a result of lease accounting standards. If at any time we cannot determine that it is probable that substantially all rents over the life of a lease are collectible, rental revenue will be recognized only to the extent of payments received and all receivables associated with the lease will be written off, irrespective of amounts expected to be collectible. However, there can be no assurances regarding the timing and amount of these revenues. Amounts due under the terms of all of our lease agreements are subject to contractual increases, and contingent rental income may be earned from certain lease agreements. No material contingent rental income was derived during the three months ended June 30, 2025 and 2024.
Previous wording
During the three months ended March 31, 2025, we recognized $77.4 million of resident fees and services compared to $66.0 million for the three months ended March 31, 2024. The $11.4 million net increase is due to a $5.9 million increase related to three Senior Housing - Managed communities acquired after January 1, 2024, a $1.2 million increase related to two facilities that were transitioned to Senior Housing - Managed communities after January 1, 2024 and the remaining increase is primarily related to increased occupancy and an increase in rates.
Current wording
During the three months ended June 30, 2025, we recognized $79.0 million of resident fees and services compared to $67.9 million for the three months ended June 30, 2024. The $11.0 million net increase is due to a $6.6 million increase related to four Senior Housing - Managed communities acquired after April 1, 2024, a $0.8 million increase related to three facilities that were transitioned to Senior Housing - Managed communities after April 1, 2024 and the remaining increase is primarily related to increased occupancy and an increase in rates.
Previous wording
We incur interest expense comprised of costs of borrowings plus the amortization of deferred financing costs related to our indebtedness. During the three months ended March 31, 2025, we incurred $27.1 million of interest expense compared to $28.4 million for the three months ended March 31, 2024. The $1.3 million net decrease is primarily related to a decrease in non-cash interest expense related to our interest rate hedges.
Current wording
We incur interest expense comprised of costs of borrowings plus the amortization of deferred financing costs related to our indebtedness. During the three months ended June 30, 2025, we incurred $27.5 million of interest expense compared to $29.3 million for the three months ended June 30, 2024. The $1.8 million net decrease is primarily related to a $1.3 million decrease in non-cash interest expense related to our interest rate hedges and a $0.4 million net decrease related to borrowings outstanding under the Credit Agreement (as defined below).
Previous wording
During the three months ended March 31, 2025, we recognized $3.5 million of triple-net portfolio operating expenses compared to $4.3 million during the three months ended March 31, 2024. The $0.8 million net decrease is due to a $0.3 million decrease from properties disposed of after January 1, 2024 and the remaining decrease is primarily due to facilities that have since transitioned to new operators who are now paying the property taxes directly.
Current wording
During the three months ended June 30, 2025, we recognized $3.7 million of triple-net portfolio operating expenses compared to $4.4 million for the three months ended June 30, 2024. The $0.7 million net decrease is due to a $0.5 million decrease due to facilities that have since transitioned to new operators who are now paying the property taxes directly and a $0.2 million decrease from properties disposed of after April 1, 2024.
Previous wording
During the three months ended March 31, 2025, we recognized $56.5 million of Senior Housing - Managed portfolio operating expenses compared to $49.7 million for the three months ended March 31, 2024. The $6.8 million net increase is due to (i) a $3.6 million increase related to three Senior Housing - Managed communities acquired after January 1, 2024, (ii) a $0.9 million increase related to two facilities that were transitioned to Senior Housing - Managed communities after January 1, 2024, (iii) a $0.7 million increase in employee compensation primarily due to increased labor rates and staffing, (iv) a $0.6 million increase in management fees, dining expenses and housekeeping costs due to increased occupancy and (v) a $0.5 million increase in utilities primarily due to increased rates and usage.
Current wording
During the three months ended June 30, 2025, we recognized $57.4 million of Senior Housing - Managed portfolio operating expenses compared to $50.4 million for the three months ended June 30, 2024. The $7.0 million net increase is primarily due to (i) a $4.1 million increase related to four Senior Housing - Managed communities acquired after April 1, 2024, (ii) a $1.1 million increase related to three facilities that were transitioned to Senior Housing - Managed communities after April 1, 2024, (iii) a $1.1 million increase in employee compensation primarily due to increased labor rates and staffing, (iv) a $0.8 million increase in management fees, dining expenses and housekeeping costs due to increased occupancy and (v) a $0.4 million increase in utilities primarily due to increased rates and usage.
Previous wording
General and administrative expenses include compensation-related expenses as well as professional services, office costs, other costs associated with asset management, and acquisition costs. During the three months ended March 31, 2025, general and administrative expenses were $12.7 million compared to $11.9 million during the three months ended March 31, 2024. The $0.8 million net increase is primarily related to an $0.8 million increase in compensation, including a $0.2 million increase in stock-based compensation, for our teammates as a result of annual salary adjustments.
Current wording
General and administrative expenses include compensation-related expenses as well as professional services, office costs, other costs associated with asset management, and acquisition costs. During the three months ended June 30, 2025, general and administrative expenses were $12.5 million compared to $12.7 million for the three months ended June 30, 2024. The $0.2 million net decrease is primarily related to a $0.2 million net decrease in compensation driven by changes in performance-based payout assumptions on incentive compensation.
Previous wording
No impairment of real estate was recognized during the three months ended March 31, 2025. During the three months ended March 31, 2024, we recognized a $3.1 million impairment of real estate related to three facilities that have sold.
Current wording
During the three months ended June 30, 2025, we recognized a $4.1 million impairment of real estate related to a closed facility. During the three months ended June 30, 2024, we recognized a $15.3 million impairment of real estate related to four facilities that have sold.
Previous wording
During the three months ended March 31, 2025, we recognized $0.2 millionof income from our unconsolidated joint ventures compared to $0.6 million of loss for the three months ended March 31, 2024. The $0.8 million net improvement is primarily related to a $0.7 million increase in revenues net of operating expenses primarily due to increased occupancy.
Current wording
During the three months ended June 30, 2025, we recognized $0.8 millionof income from our unconsolidated joint ventures compared to $0.1 million of income for the three months ended June 30, 2024. The $0.8 million net improvement is primarily related to a $0.5 million increase in revenues net of operating expenses primarily due to increased occupancy and rates and a $0.2 million decrease in depreciation expense due to assets that have been fully depreciated.
Previous wording
During the three months ended March 31, 2025, we recognized $0.4 million of income tax expense compared to $0.5 million during the three months ended March 31, 2024. The $40,000 change is primarily due to lower taxable income.
Current wording
During the three months ended June 30, 2025, we recognized $0.5 million of income tax expense compared to $0.4 million for the three months ended June 30, 2024. The $0.1 million change is primarily due to higher taxable income.
Previous wording
During the three months ended March 31, 2025, we recognized $96.0 million of rental income compared to $91.8 million for the three months ended March 31, 2024. The $4.3 million net increase in rental income is related to(i) a net $3.5 million decrease of non-cash rent and lease inducement write-offs related to leases that are no longer accounted for on an accrual basis, (ii) a $1.1 million net increase in cash revenue related to leases that are no longer accounted for on an accrual basis, (iii) a $0.9 million increase from properties acquired after January 1, 2024 and (iv) a $0.7 million increase due to lease amendments and annual rental increases based on changes in the Consumer Price Index. These increases are partially offset bya $1.9 million decrease from properties disposed of after January 1, 2024.
Current wording
During the six months ended June 30, 2025, we recognized $195.9 million of rental income compared to $190.9 million for the six months ended June 30, 2024. The $5.0 million net increase in rental income is related to (i) a $4.7 million net increase of non-cash rent as the result of changing our estimates of collectability for certain leases within our triple-net leased portfolio, (ii) a $1.7 million increase due to lease amendments and annual rental increases based on changes in the Consumer Price Index, (iii) a $1.4 million net increase in cash revenue related to percentage rent, expense recoveries and leases that are not accounted for on an accrual basis and (iv) a $1.1 million increase from properties acquired after January 1, 2024. These increases are partially offset by a $3.9 million decrease from properties disposed of after January 1, 2024 and a $0.7 million decrease in revenue related to facilities that were transitioned to Senior Housing - Managed communities after January 1, 2024.
Previous wording
Interest and other income primarily consists of income earned on our loans receivable investments and preferred returns earned on our preferred equity investments. During the three months ended March 31, 2025, we recognized $10.1 million of interest and other income compared to $8.9 million for the three months ended March 31, 2024. The net increase of $1.1 million is due to (i) a $0.5 million increase from investments made after January 1, 2024, (ii) a $0.5 million increase in late fee income and (iii) a $0.1 million increase in bank interest income.
Current wording
Interest and other income primarily consists of income earned on our loans receivable investments and preferred returns earned on our preferred equity investments. During the six months ended June 30, 2025, we recognized $20.4 million of interest and other income compared to $18.0 million for the six months ended June 30, 2024. The net increase of $2.4 million is due to (i) a $1.3 million increase in late fee income, (ii) a $0.8 million increase from investments made after January 1, 2024 and (iii) a $0.2 million increase in bank interest income.
Previous wording
During the three months ended March 31, 2025, we incurred $43.5 million of depreciation and amortization expense compared to $42.9 million for the three months ended March 31, 2024. The net increase of $0.6 million is due to a $2.0 million increase from properties acquired after January 1, 2024 and a $0.5 million increase from additions to real estate. These increases are partially offset by a $1.3 million decrease due to assets that have been fully depreciated and a $0.9 million decrease from properties disposed of after January 1, 2024.
Current wording
During the six months ended June 30, 2025, we incurred $87.1 million of depreciation and amortization expense compared to $84.6 million for the six months ended June 30, 2024. The net increase of $2.5 million is due toa $4.1 million increase from properties acquired after January 1, 2024 and a $1.6 million increase from additions to real estate. These increases are partially offset by a $1.9 million decrease from properties disposed of after January 1, 2024 and a $1.5 million decrease due to assets that have been fully depreciated.
Previous wording
During the three months ended March 31, 2025 and 2024, we recognized a $0.2 million and a $0.1 million recovery of loan losses, respectively, associated with our loans receivable investments.
Current wording
During the six months ended June 30, 2025 and 2024, we recognized a $0.4 million and a $0.3 million recovery of loan losses, respectively, associated with our loans receivable investments.
Previous wording
During the three months ended March 31, 2025, we recognized $38,000 of other income. During the three months ended March 31, 2024, we recognized $0.8 million of other income primarily related to business interruption insurance income related to one Senior Housing - Managed community that was closed due to a fire.
Current wording
During the six months ended June 30, 2025, we recognized $14.7 million of other income, including the reclassification of $17.2 million of gain related to six previously terminated interest rate swaps from accumulated other comprehensive loss to other income as the related forecasted transactions were determined to be probable not to occur and a $1.0 million gain on insurance proceeds related to damage from a fire that occurred at one of our Senior Housing - Managed communities, partially offset by $3.2 million of transition expenses related to the transition of Senior Housing - Managed communities to new operators. During the six months ended June 30, 2024, we recognized $0.8 million of other income primarily related to business interruption insurance income related to one Senior Housing - Managed community that was closed due to a fire.
Previous wording
We believe that net income as defined by GAAP is the most appropriate earnings measure. We also believe that funds from operations (“FFO”), as defined in accordance with the definition used by the National Association of Real Estate Investment Trusts (“Nareit”), and adjusted funds from operations (“AFFO”) (and related per share amounts) are important non-GAAP supplemental measures of our operating performance. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a REIT that use historical cost accounting for depreciation could be less informative. Thus, Nareit created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation and amortization, among other items, from net income, as defined by GAAP. FFO is defined as net income, computed in accordance with GAAP, excluding gains or losses from real estate dispositions and our share of gains or losses from real estate dispositions related to our unconsolidated joint ventures, plus real estate depreciation and amortization, net of amounts related to noncontrolling interests, plus our share of depreciation and amortization related to our unconsolidated joint ventures, and real estate impairment charges of both consolidated and unconsolidated entities when the impairment is directly attributable to decreases in the value of the depreciable real estate held by the entity. AFFO is defined as FFO excluding stock-based compensation expense, non-cash rental and related revenues, non-cash interest income, non-cash interest expense, non-cash portion of loss on extinguishment of debt, provision for (recovery of) loan losses and other reserves, non-cash lease termination income and deferred income taxes, as well as other non-cash revenue and expense items (including noncapitalizable acquisition costs, transaction costs related to operator transitions and organizational or other restructuring activities, ineffectiveness gain/loss on derivative instruments, and non-cash revenue and expense amounts related to noncontrolling interests) and our share of non-cash adjustments related to our unconsolidated joint ventures. We believe that the use of FFO and AFFO (and the related per share amounts), combined with the required GAAP presentations, improves the understanding of our operating results among investors and makes comparisons of operating results among REITs more meaningful. We consider FFO and AFFO to be useful measures for reviewing comparative operating and financial performance because, by excluding the applicable items listed above, FFO and AFFO can help investors compare our operating performance between periods or as compared to other c…
Excerpt shortened here; the source contains the full paragraph.
Current wording
We believe that net income as defined by GAAP is the most appropriate earnings measure. We also believe that funds from operations (“FFO”), as defined in accordance with the definition used by the National Association of Real Estate Investment Trusts (“Nareit”), and adjusted funds from operations (“AFFO”) (and related per share amounts) are important non-GAAP supplemental measures of our operating performance. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a REIT that use historical cost accounting for depreciation could be less informative. Thus, Nareit created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation and amortization, among other items, from net income, as defined by GAAP. FFO is defined as net income, computed in accordance with GAAP, excluding gains or losses from real estate dispositions and our share of gains or losses from real estate dispositions related to our unconsolidated joint ventures, plus real estate depreciation and amortization, net of amounts related to noncontrolling interests, plus our share of depreciation and amortization related to our unconsolidated joint ventures, and real estate impairment charges of both consolidated and unconsolidated entities when the impairment is directly attributable to decreases in the value of the depreciable real estate held by the entity. AFFO is defined as FFO excluding stock-based compensation expense, non-cash rental and related revenues, non-cash interest income, non-cash interest expense, non-cash portion of loss on extinguishment of debt, provision for (recovery of) loan losses and other reserves, non-cash lease termination income and deferred income taxes, as well as other non-cash revenue and expense items (including noncapitalizable acquisition costs, transaction costs related to operator transitions and organizational or other restructuring activities, gain/loss on derivative instruments, and non-cash revenue and expense amounts related to noncontrolling interests) and our share of non-cash adjustments related to our unconsolidated joint ventures. We believe that the use of FFO and AFFO (and the related per share amounts), combined with the required GAAP presentations, improves the understanding of our operating results among investors and makes comparisons of operating results among REITs more meaningful. We consider FFO and AFFO to be useful measures for reviewing comparative operating and financial performance because, by excluding the applicable items listed above, FFO and AFFO can help investors compare our operating performance between periods or as compared to other companies. While …
Excerpt shortened here; the source contains the full paragraph.
Previous wording
The following table reconciles our calculations of FFO and AFFO for the three months ended March 31, 2025 and 2024, to net income, the most directly comparable GAAP financial measure, for the same periods (in thousands, except share and per share amounts):
Current wording
The following table reconciles our calculations of FFO and AFFO for the three and six months ended June 30, 2025 and 2024, to net income, the most directly comparable GAAP financial measure, for the same periods (in thousands, except share and per share amounts):
Previous wording
As of March 31, 2025, we had approximately $1.1 billion in liquidity, consisting of unrestricted cash and cash equivalents of $22.7 million, available borrowings under our Revolving Credit Facility (as defined below) of $917.3 million and $110.5 million related to shares outstanding under forward sale agreements under our ATM Program (as defined below). The Credit Agreement also contains an accordion feature that can increase the total available borrowings to $2.75 billion (from U.S. $1.4 billion plus CAD $150.0 million), subject to terms and conditions.
Current wording
As of June 30, 2025, we had approximately $1.2 billion in liquidity, consisting of unrestricted cash and cash equivalents of $95.2 million, available borrowings under our Revolving Credit Facility (as defined below) of $837.0 million and $266.5 million related to shares outstanding under forward sale agreements under our ATM Program (as defined below). The Credit Agreement also contains an accordion feature that can increase the total available borrowings to $2.75 billion (from U.S. $1.4 billion plus CAD $150.0 million), subject to terms and conditions.
Previous wording
During the three months ended March 31, 2025, we utilized the forward feature of the ATM Program to allow for the sale of up to 4.9 million shares of our common stock at an initial weighted average price of $17.32 per share, net of commissions.
Current wording
During the three and six months ended June 30, 2025, we utilized the forward feature of the ATM Program to allow for the sale of up to 10.4 million and 15.3 million shares of our common stock, respectively, at an initial weighted average price of $17.86 and $17.69 per share, net of commissions, respectively. During each of the three and six months ended June 30, 2025, we issued 1.8 million shares in settlement of certain outstanding forward sale agreements, at a weighted average net price of $16.93 per share, after commissions and fees, resulting in net proceeds of $29.9 million.
Previous wording
As of March 31, 2025, 6.4 million shares remained outstanding under the forward sale agreements, with an initial weighted average price of $17.32 per share, net of commissions.
Current wording
As of June 30, 2025, 15.1 million shares remained outstanding under the forward sale agreements, with an initial weighted average price of $17.70 per share, net of commissions.
Previous wording
No other shares were sold under the ATM Program during the three months ended March 31, 2025.
Current wording
No other shares were sold under the ATM Program during the three and six months ended June 30, 2025.
Previous wording
As of March 31, 2025, we had $297.7 million available under the ATM Program. Subject to market conditions, we expect to use proceeds from our ATM Program to finance future investments in properties.
Current wording
As of June 30, 2025, we had $109.3 million available under the ATM Program. Subject to market conditions, we expect to use proceeds from our ATM Program to finance future investments in properties.
Previous wording
Net cash provided by operating activities was $80.3 million for the three months ended March 31, 2025. Operating cash inflows were derived primarily from the rental payments received under our lease agreements, resident fees and services net of the corresponding operating expenses, and interest payments from borrowers under our loan and preferred equity investments. Operating cash outflows consisted primarily of interest payments on borrowings and payment of general and administrative expenses, including corporate overhead. Increases to operating cash flows primarily relate to completed investment activity and decreases to operating cash flows primarily relate to disposition activity. Interest payment outflows are impacted by increases or decreases in borrowings and changes in interest rates. In addition, the change in operating cash flows was impacted by the timing of collections from our tenants and borrowers and fluctuations in the operating results of our Senior Housing - Managed communities. We expect our annualized cash flows provided by operating activities to fluctuate as a result of such activity.
Current wording
During the six months ended June 30, 2025, net cash provided by operating activities was $161.2 million. Operating cash inflows were derived primarily from the rental payments received under our lease agreements, resident fees and services net of the corresponding operating expenses, and interest payments from borrowers under our loan and preferred equity investments. Operating cash outflows consisted primarily of interest payments on borrowings and payment of general and administrative expenses, including corporate overhead. Increases to operating cash flows primarily relate to completed investment activity and decreases to operating cash flows primarily relate to disposition activity. Interest payment outflows are impacted by increases or decreases in borrowings and changes in interest rates. In addition, the change in operating cash flows was impacted by the timing of collections from our tenants and borrowers and fluctuations in the operating results of our Senior Housing - Managed communities. We expect our annualized cash flows provided by operating activities to fluctuate as a result of such activity.
Previous wording
During the three months ended March 31, 2025, net cash used in investing activities was $16.4 million and included $7.9 million used for the acquisition of additional units on the campus of one of our facilities, $7.8 million used for additions to real estate, $1.7 million used to provide funding for loans receivable and $1.0 million used for the investment in an unconsolidated joint venture, partially offset by $1.1 million in repayments of loans receivable and $0.8 million in repayments of preferred equity investments.
Current wording
During the six months ended June 30, 2025, net cash used in investing activities was $61.6 million and included $61.1 million used for the acquisition of one facility and additional units on the campus of one of our facilities, $13.6 million used for additions to real estate, $3.1 million used to provide funding for loans receivable and $1.2 million used for the investment in an unconsolidated joint venture, partially offset by $7.0 million in repayments of loans receivable, $4.5 million of proceeds from net investment hedges, $3.6 million of net proceeds from the sale of real estate, $1.4 million in repayments of preferred equity investments and $1.0 million in insurance proceeds.
Previous wording
During the three months ended March 31, 2025, net cash used in financing activities was $101.2 million and included $71.4 million of dividends paid to stockholders, $23.9 million of net repayments of our Revolving Credit Facility, $5.4 million of net costs related to payroll tax payments related to the issuance of common stock pursuant to equity compensation arrangements and our ATM Program, $0.5 million of principal repayments on secured debt and $0.1 million of payments of deferred financing costs related to the Credit Agreement.
Current wording
During the six months ended June 30, 2025, net cash used in financing activities was $64.5 million and included $142.8 million of dividends paid to stockholders, $55.1 million of net borrowings from our Revolving Credit Facility, $24.2 million of net proceeds from shares sold through our ATM Program, net of costs related to payroll tax payments related to the issuance of common stock pursuant to equity compensation arrangements, $1.0 million of principal repayments on secured debt and $0.1 million of payments of deferred financing costs related to the Credit Agreement.
Previous wording
(1)Principal balance does not include discount, net of $5.2 million and deferred financing costs, net of $8.6 million as of March 31, 2025.
Current wording
(1)Principal balance does not include discount, net of $5.4 million and deferred financing costs, net of $8.2 million as of June 30, 2025.
Previous wording
Interest. Our estimated interest and facility fee payments based on principal amounts of debt outstanding as of March 31, 2025, applicable interest rates in effect as of March 31, 2025, and including the impact of interest rate swaps are $80.9 million for the remainder of 2025, $101.1 million in 2026, $65.7 million in 2027, $40.6 million in 2028, $40.3 million in 2029 and $60.6 million thereafter.
Current wording
Interest. Our estimated interest and facility fee payments based on principal amounts of debt outstanding as of June 30, 2025, applicable interest rates in effect as of June 30, 2025, and including the impact of interest rate swaps are $53.2 million for the remainder of 2025, $106.0 million in 2026, $66.0 million in 2027, $40.6 million in 2028, $40.3 million in 2029 and $60.6 million thereafter.
Previous wording
Capital and Other Expenditures and Funding Commitments. For the three months ended March 31, 2025 and 2024, our aggregate capital expenditures were $7.8 million and $12.9 million, respectively. As of March 31, 2025, our aggregate commitment for future capital and other expenditures related to facilities leased under triple-net operating leases was approximately $14 million, of which $12 million will directly result in incremental rental income, and approximately $4 million will be spent over the next 12 months. We also expect to fund capital expenditures related to our Senior Housing - Managed communities.
Current wording
Capital and Other Expenditures and Funding Commitments. For the six months ended June 30, 2025 and 2024, our aggregate capital expenditures were $13.6 million and $25.4 million, respectively. As of June 30, 2025, our aggregate commitment for future capital and other expenditures related to facilities leased under triple-net operating leases was approximately $16 million, of which $13 million will directly result in incremental rental income, and approximately $6 million will be spent over the next 12 months. We also expect to fund capital expenditures related to our Senior Housing - Managed communities.
Previous wording
In addition, as of March 31, 2025, we have committed to provide up to $0.7 million of future funding related to three loan receivable investments.
Current wording
In addition, as of June 30, 2025, we have committed to provide up to $0.4 million of future funding related to two loan receivable investments.
Previous wording
We paid dividends of $71.4 million on our common stock during the three months ended March 31, 2025. On May 5, 2025, our board of directors declared a quarterly cash dividend of $0.30 per share of common stock. The dividend will be paid on May 30, 2025 to common stockholders of record as of May 16, 2025.
Current wording
We paid dividends of $142.8 million on our common stock during the six months ended June 30, 2025. On August 4, 2025, our board of directors declared a quarterly cash dividend of $0.30 per share of common stock. The dividend will be paid on August 29, 2025 to common stockholders of record as of August 15, 2025.
Previous wording
In accordance with Regulation S-X, the following aggregate summarized financial information is provided for Sabra and the Operating Partnership. This aggregate summarized financial information has been prepared from the books and records maintained by us and the Operating Partnership. The aggregate summarized financial information does not include the investments in, nor the earnings from, subsidiaries other than the Operating Partnership and therefore is not necessarily indicative of the results of operations or financial position had the Operating Partnership operated as an independent entity. Intercompany transactions have been eliminated. The aggregate summarized balance sheet information as of March 31, 2025 and December 31, 2024 and aggregate summarized statement of loss information for the three months ended March 31, 2025 is as follows (in thousands):
Current wording
In accordance with Regulation S-X, the following aggregate summarized financial information is provided for Sabra and the Operating Partnership. This aggregate summarized financial information has been prepared from the books and records maintained by us and the Operating Partnership. The aggregate summarized financial information does not include the investments in, nor the earnings from, subsidiaries other than the Operating Partnership and therefore is not necessarily indicative of the results of operations or financial position had the Operating Partnership operated as an independent entity. Intercompany transactions have been eliminated. The aggregate summarized balance sheet information as of June 30, 2025 and December 31, 2024 and aggregate summarized statement of loss information for the six months ended June 30, 2025 is as follows (in thousands):
Previous wording
Management believes our current portfolio is reasonably diversified across healthcare related real estate and geographical location and does not contain any other significant concentration of credit risks. Our portfolio of 364 real estate properties held for investment as of March 31, 2025 is diversified by location across the U.S. and Canada.
Current wording
Management believes our current portfolio is reasonably diversified across healthcare related real estate and geographical location and does not contain any other significant concentration of credit risks. Our portfolio of 359 real estate properties held for investment as of June 30, 2025 is diversified by location across the U.S. and Canada.
Previous wording
For the three months ended March 31, 2025, no tenant relationship represented 10% or more of our total revenues.
Current wording
For the three and six months ended June 30, 2025, no tenant relationship represented 10% or more of our total revenues.
Previous wording
For the three months ended March 31, 2025, 37.0% of our revenues was derived directly or indirectly from skilled nursing/transitional care facilities. Medicare reimburses skilled nursing facilities for Medicare Part A services under the Prospective Payment System (“PPS”), as implemented pursuant to the Balanced Budget Act of 1997 and modified pursuant to subsequent laws, most recently the Patient Protection and Affordable Care Act of 2010. PPS regulations predetermine a payment amount per patient, per day, based on a market basket index calculated for all covered costs.
Current wording
For the six months ended June 30, 2025, 37.8% of our revenues was derived directly or indirectly from skilled nursing/transitional care facilities. Medicare reimburses skilled nursing facilities for Medicare Part A services under the Prospective Payment System (“PPS”), as implemented pursuant to the Balanced Budget Act of 1997 and modified pursuant to subsequent laws, most recently the Patient Protection and Affordable Care Act of 2010. PPS regulations predetermine a payment amount per patient, per day, based on a market basket index calculated for all covered costs.
Previous wording
On April 22, 2024, CMS issued a final rule that establishes minimum nurse staffing requirements for long-term care facilities (the “Minimum Staffing Standards”). The Minimum Staffing Standards require a total nurse staffing standard of 3.48 hours per resident day (“HPRD”), which must include at least 0.55 HPRD of direct registered nurse care and 2.45 HPRD of direct nurse aide care (the “Statistical Requirements”). Additionally, the Minimum Staffing Standards require facilities to meet new facility assessment requirements (the “Assessment Requirements”) and have a registered nurse onsite 24 hours a day, seven days a week, to provide skilled nursing care (the “Staffing Requirements”). The Minimum Staffing Standards became effective on June 21, 2024, with a compliance deadline for the Assessment Requirements of August 8, 2024 and a phase-in period consisting of three phases over three years for non-rural facilities and over five years for rural facilities for the Statistical Requirements and the Staffing Requirements. On April 7, 2025, a federal judge vacated the Statistical Requirements and Staffing Requirements. However, the Assessment Requirements remain in effect and we expect that this will exacerbate the staffing challenges already faced by our tenants.
Current wording
On April 22, 2024, the Centers for Medicare & Medicaid Services (“CMS”) issued a final rule that (i) establishes minimum nurse staffing requirements for long-term care facilities (the “Minimum Staffing Standards”) and (ii) requires facilities to meet new facility assessment requirements (the “Assessment Requirements”). The Minimum Staffing Standards became effective on June 21, 2024 with a multi-year phase-in period. The compliance deadline for the Assessment Requirements was August 8, 2024. On April 7, 2025, a federal judge vacated the Minimum Staffing Standards, and on July 4, 2025, H.R. 1 was signed into law which includes a 10-year moratorium on CMS enforcement of the Minimum Staffing Standards. However, the Assessment Requirements remain in effect and we expect that this will exacerbate the staffing challenges already faced by our tenants.
Previous wording
On April 11, 2025, CMS issued a proposed rule regarding fiscal year 2026 Medicare rates for skilled nursing facilities providing an estimated net increase of 2.8% compared to fiscal year 2025 (comprised of (i) a market basket increase of 3.0% plus (ii) a market basket forecast error adjustment of 0.6% and less (iii) a productivity adjustment of 0.8%). These figures do not incorporate any of the estimated value-based purchasing reductions for skilled nursing facilities. The proposed payment rates would become effective on October 1, 2025.
Current wording
On July 31, 2025, CMS issued a final rule regarding fiscal year 2026 Medicare rates for skilled nursing facilities providing an estimated net increase of 3.2% compared to fiscal year 2025 (comprised of (i) a market basket increase of 3.3% plus (ii) a market basket forecast error adjustment of 0.6% and less (iii) a productivity adjustment of 0.7%). These figures do not incorporate any of the estimated value-based purchasing reductions for skilled nursing facilities. The new payment rates become effective on October 1, 2025.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
The results of operations presented are not directly comparable due to ongoing acquisition and disposition activity, including our capital recycling initiative.
Current report — wording carried from elsewhere
Interest and other income primarily consists of income earned on our loans receivable investments and preferred returns earned on our preferred equity investments. During the three months ended June 30, 2025, we recognized $10.3 million of interest and other income compared to $9.1 million for the three months ended June 30, 2024. The net increase of $1.2 million is due to a $0.8 million increase in late fee income and a $0.4 million increase from investments made after April 1, 2024.
Current report — wording carried from elsewhere
During each of the three months ended June 30, 2025 and 2024, we recognized a $0.2 million recovery of loan losses associated with our loans receivable investments.
Current report — wording carried from elsewhere
Comparison of results of operations for the six months ended June 30, 2025 versus the six months ended June 30, 2024 (dollars in thousands):
Current report — wording carried from elsewhere
(2)Represents the dollar amount increase (decrease) for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 that is not a direct result of investments/dispositions made after January 1, 2024.
Current report — wording carried from elsewhere
Our reported rental and related revenues may be subject to increased variability in the future as a result of lease accounting standards. If at any time we cannot determine that it is probable that substantially all rents over the life of a lease are collectible, rental revenue will be recognized only to the extent of payments received and all receivables associated with the lease will be written off, irrespective of amounts expected to be collectible. However, there can be no assurances regarding the timing and amount of these revenues. Amounts due under the terms of all of our lease agreements are subject to contractual increases, and contingent rental income may be earned from certain lease agreements. No material contingent rental income was derived during the six months ended June 30, 2025 and 2024.
Current report — wording carried from elsewhere
We incur interest expense comprised of costs of borrowings plus the amortization of deferred financing costs related to our indebtedness. During the six months ended June 30, 2025, we incurred $54.6 million of interest expense compared to $57.7 million for the six months ended June 30, 2024. The $3.1 million net decrease is primarily related toa $2.7 million decrease in non-cash interest expense related to our interest rate hedges and a $0.3 million net decrease related to borrowings outstanding under the Credit Agreement.
Current report — wording carried from elsewhere
Senior Housing - Managed Portfolio Operating Expenses
Current report — wording carried from elsewhere
During the six months ended June 30, 2025, we recognized $113.9 million of Senior Housing - Managed portfolio operating expenses compared to $100.0 million for the six months ended June 30, 2024. The $13.8 million net increase is primarily due to (i) a $7.7 million increase related to four Senior Housing - Managed communities acquired after January 1, 2024, (ii) a $2.0 million increase related to five facilities that were transitioned to Senior Housing - Managed communities after January 1, 2024, (iii) a $1.8 million increase in employee compensation primarily due to increased labor rates and staffing, (iv) a $1.6 million increase in management fees, dining expenses and housekeeping costs due to increased occupancy and (v) a $0.9 million increase in utilities primarily due to increased rates and usage.
Current report — wording carried from elsewhere
REITs, they do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating our liquidity or operating performance. FFO and AFFO also do not consider the costs associated with capital expenditures related to our real estate assets nor do they purport to be indicative of cash available to fund our future cash requirements. Further, our computation of FFO and AFFO may not be comparable to FFO and AFFO reported by other REITs that do not define FFO in accordance with the current Nareit definition or that interpret the current Nareit definition or define AFFO differently than we do.