Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Looking ahead to 2025, what are your thoughts on the pacing of occupancy in the senior housing space? A: Talya Nevo-Hacohen, EVP, Chief Investment Officer, Treasurer, explained that operators are balancing rate increases versus occupancy. While Canadian portfolio growth is stabilizing, there is still room for occupancy growth in the domestic portfolio, particularly in Independent Living (IL) and Assisted Living (AL) sectors.
Q: Are you seeing any impacts in pricing for skilled nursing facilities (SNF) due to the current environment? A: Talya Nevo-Hacohen noted that the skilled nursing transaction market is robust, with strategic buyers valuing assets based on the revenue they generate for their entire business, leading to competitive pricing.
Q: What has changed in the acquisition pipeline that makes you confident in accelerating deals this year? A: Richard Matros, CEO, stated that unlike last year, there is now higher deal volume and improved cost of capital, allowing Sabra to pursue more acquisitions. Talya Nevo-Hacohen added that there are many deals coming to market, driven by private equity firms exiting investments and refinancing opportunities due to interest rate changes.
Q: Can you expand on the strategies operators have implemented to mitigate costs? A: Richard Matros highlighted that operators have embraced digital marketing for recruiting and revamped onboarding processes, including assigning mentors to new employees, which has helped improve employee retention and manage costs.
Q: What are your thoughts on potential Medicare and Medicaid cuts and their impact? A: Richard Matros expressed that while any cuts are concerning, the bipartisan support and lobbying efforts, along with the strength of Sabra's portfolio, provide some confidence that the impact will be manageable. He noted that other programs like Medicaid expansion might be targeted first.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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