EX-99.3 4 sbraex9932023q4.htm Q4 2023 NON-GAAP RECONCILIATIONS Document

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Reconciliations of Non-GAAP Financial Measures

December 31, 2023

(Unaudited)



SABRA HEALTH CARE REIT, INC.
2024 OUTLOOK

The table below sets forth our 2024 guidance (per diluted common share):
 LowHigh
Net income$0.53 $0.57 
Add:
Depreciation and amortization of real estate assets0.76 0.76 
Depreciation and amortization of real estate assets related to unconsolidated joint ventures0.04 0.04 
FFO$1.33 $1.37 
Normalizing items0.01 0.01 
Normalized FFO attributable to common stockholders$1.34 $1.38 
FFO attributable to common stockholders$1.33 $1.37 
Stock-based compensation expense0.04 0.04 
Non-cash rental and related revenues(0.03)(0.03)
Non-cash interest expense0.04 0.04 
AFFO$1.38 $1.42 
Normalizing items0.01 0.01 
Normalized AFFO attributable to common stockholders$1.39 $1.43 

The foregoing projections reflect management's view of current and future market conditions. There can be no assurance that the Company's actual results will not differ materially from the estimates set forth above. Except as otherwise required by law, the Company assumes no, and hereby disclaims any, obligation to update any of the foregoing projections as a result of new information or new or future developments.

logo.jpg See reporting definitions.                        2


SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
FFO, Normalized FFO, AFFO and Normalized AFFO
(dollars in thousands, except per share data)
Three Months Ended December 31,Year Ended December 31,
 2023202220232022
Net income (loss)$17,156 $(84,948)$13,756 $(77,605)
Add:
Depreciation and amortization of real estate assets42,876 49,927 183,087 187,782 
Depreciation, amortization and impairment of real estate assets related to unconsolidated joint ventures2,192 6,239 8,697 22,095 
Net loss on sales of real estate732 7,430 76,625 12,011 
Net gain on sales of real estate related to unconsolidated joint ventures— — — (220)
Impairment of real estate7,268 21,440 14,332 94,042 
Other-than-temporary impairment of unconsolidated joint ventures— 57,778 — 57,778 
FFO$70,224 $57,866 $296,497 $295,883 
Write-offs of cash and straight-line rental income receivable and lease intangibles1,030 — 2,519 15,831 
Lease termination income— (139)— (2,477)
Loss on extinguishment of debt— — 1,541 411 
(Recovery of) provision for loan losses and other reserves(358)153 191 141 
Deferred tax valuation allowance related to unconsolidated joint ventures— 19,613 — 19,613 
Support payments paid to joint venture manager (1)
— 6,370 — 12,250 
Other normalizing items (2)
4,551 842 1,546 3,428 
Normalized FFO$75,447 $84,705 $302,294 $345,080 
FFO$70,224 $57,866 $296,497 $295,883 
Stock-based compensation expense2,449 2,086 7,917 7,453 
Non-cash rental and related revenues(1,918)(2,787)(8,699)2,183 
Non-cash interest income8 (602)(372)(2,285)
Non-cash interest expense3,086 2,794 12,265 11,094 
Non-cash portion of loss on extinguishment of debt— — 1,541 411 
(Recovery of) provision for loan losses and other reserves(358)153 191 141 
Deferred tax valuation allowance related to unconsolidated joint ventures— 19,613 — 19,613 
Other adjustments related to unconsolidated joint ventures131 (1,099)502 (5,155)
Other adjustments (3)
141 44 365 2,474 
AFFO$73,763 $78,068 $310,207 $331,812 
Cash portion of lease termination income— (139)— (2,477)
Write-off of cash rental income— — — 71 
Support payments paid to joint venture manager (1)
— 6,370 — 12,250 
Other normalizing items (2)
4,536 827 1,485 1,077 
Normalized AFFO$78,299 $85,126 $311,692 $342,733 
Amounts per diluted common share:
Net income (loss)$0.07 $(0.37)$0.06 $(0.34)
FFO$0.30 $0.25 $1.27 $1.28 
Normalized FFO$0.32 $0.37 $1.30 $1.49 
AFFO$0.32 $0.34 $1.33 $1.43 
Normalized AFFO$0.33 $0.37 $1.33 $1.47 
Weighted average number of common shares outstanding, diluted:
Net income (loss)233,200,180 230,986,260 232,792,778 230,947,895 
FFO and Normalized FFO 233,200,180 232,059,703 232,792,778 231,851,542 
AFFO and Normalized AFFO 234,021,772 232,868,137 233,883,279 232,784,543 
(1)    Funding for support payments did not require capital contributions from Sabra but rather were funded with proceeds received by our Enlivant unconsolidated joint venture from TPG for the issuance of senior preferred interests.
(2)     Other normalizing items for FFO and AFFO for the three months ended December 31, 2023 include a $3.8 million catch-up adjustment related to changes in performance-based assumptions on management's compensation. Other normalizing items for FFO and AFFO for the year ended December 31, 2023 include $3.7 million of gain on insurance proceeds and $1.6 million of transition expenses related to the transition of 14 Senior Housing - Managed communities to new operators. Other normalizing items for FFO for the year ended December 31, 2022 include $2.2 million of foreign currency transaction loss related to our Canadian borrowings. In addition, other normalizing items for FFO and AFFO include triple-net operating expenses, net of recoveries and certain adjustments for amounts recorded in the current period that relate to a prior period.
(3)    Other adjustments for the year ended December 31, 2022 includes $2.2 million of foreign currency transaction loss related to our Canadian borrowings.
logo.jpg See reporting definitions.                        3



SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
EBITDA, Adjusted EBITDA and Annualized Adjusted EBITDA
Net Debt and Net Debt to Adjusted EBITDA
(in thousands) 
Twelve Months Ended
December 31, 2023
Net income$13,756 
Interest112,964 
Income tax expense2,002 
Depreciation and amortization183,087 
EBITDA$311,809 
Loss from unconsolidated joint ventures2,897 
Distributions from unconsolidated joint venture3,543 
Stock-based compensation expense 7,917 
Provision for loan losses and other reserves and non-cash revenue write-offs2,692 
Impairment of real estate14,332 
Loss on extinguishment of debt1,541 
Other expense81 
Net loss on sales of real estate76,625 
Adjusted EBITDA (1)
$421,437 
Annualizing adjustments (2)
(3,963)
Annualized Adjusted EBITDA (3)
$417,474 
December 31, 2023
Secured debt$48,143 
Revolving credit facility94,429 
Term loans543,190 
Senior unsecured notes1,750,000 
Consolidated Debt2,435,762 
Cash and cash equivalents(41,285)
Net Debt$2,394,477 
December 31, 2023
Net Debt$2,394,477 
Annualized Adjusted EBITDA$417,474 
Net Debt to Adjusted EBITDA5.74x












(1)    Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation and amortization (“EBITDA”) excluding the impact of merger-related costs, stock-based compensation expense under the Company’s long-term equity award program and loan loss reserves.
(2)    Annualizing adjustments give effect to the acquisitions and dispositions completed during the twelve months ended for the period as though such acquisitions and dispositions were completed as of the beginning of the period.
(3)    Annualized Adjusted EBITDA is calculated as Adjusted EBITDA as adjusted to give effect to the adjustments described in footnote 2 above.
logo.jpg See reporting definitions.                        4



SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Consolidated Statements of Income (Loss)
Supplemental Information
(in thousands)

Three Months Ended December 31,Year Ended December 31,
 2023202220232022
Cash rental income$87,233 $96,501 $352,277 $385,033 
Straight-line rental income1,693 1,219 5,392 8,261 
Straight-line rental income receivable write-offs(1,004)— (2,514)(17,068)
Above/below market lease amortization1,229 1,569 5,821 6,299 
Above/below market lease intangible write-offs— — — 326 
Operating expense recoveries3,886 4,029 15,290 17,735 
Rental and related revenues$93,037 $103,318 $376,266 $400,586 


logo.jpg See reporting definitions.                        5



SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Senior Housing - Managed Revenues and Cash NOI
(in thousands)

Three Months Ended
 December 31, 2023September 30, 2023June 30, 2023March 31, 2023December 31, 2022
Revenues:
Resident fees and services$61,256 $59,748 $58,428 $56,721 $52,699 
Resident fees and services not included in same store (1)
(9,569)(8,944)(8,548)(7,353)(3,821)
Same store resident fees and services$51,687 $50,804 $49,880 $49,368 $48,878 
Net income (loss)$17,156 $(15,101)$21,188 $(9,487)$(84,948)
Adjustments:
Net (income) loss not related to Senior Housing - Managed Consolidated(12,801)18,920 (18,985)956 87,968 
Depreciation and amortization11,707 11,885 12,279 11,131 10,524 
Other income— (470)— — — 
Net loss (gain) on sale of real estate5 (9)(18)10,484 — 
Cash Net Operating Income$16,067 $15,225 $14,464 $13,084 $13,544 
Cash Net Operating Income not included in same store (1)
(1,702)(1,087)(1,092)216 (735)
Same store Cash Net Operating Income$14,365 $14,138 $13,372 $13,300 $12,809 























(1)    Includes adjustments for changes in the foreign currency exchange rate where applicable by applying the average exchange rate for the current period to prior period results.
logo.jpg See reporting definitions.                        6



SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Cash NOI by Property Type
(in thousands)
Three Months Ended December 31, 2023
Skilled Nursing/ Transitional CareSenior HousingBehavioral HealthSpecialty Hospitals and Other
Senior Housing - LeasedSenior Housing - Managed ConsolidatedSenior Housing - Managed UnconsolidatedTotal Senior HousingOtherCorporateTotal
Net income (loss)$32,828 $5,806 $4,355 $(761)$9,400 $6,870 $3,283 $9,104 $(44,329)$17,156 
Adjustments:
Depreciation and amortization21,626 4,597 11,707 — 16,304 3,456 1,461 — 29 42,876 
Interest205 221 — — 221 — — — 27,514 27,940 
General and administrative— — — — — — — — 16,679 16,679 
Recovery of loan losses and other reserves— — — — — — — — (358)(358)
Impairment of real estate7,268 — — — — — — — — 7,268 
Other income— — — — — — — — (28)(28)
Net loss on sales of real estate727 — 5 — 5 — — — — 732 
Loss from unconsolidated joint ventures— — — 761 761 — — — — 761 
Income tax expense— — — — — — — — 493 493 
Sabra’s share of unconsolidated joint ventures’ Net Operating Income— — — 2,425 2,425 — — — — 2,425 
Net Operating Income$62,654 $10,624 $16,067 $2,425 $29,116 $10,326 $4,744 $9,104 $— $115,944 
Non-cash revenue and expense adjustments(1,795)(405)— — (405)427 (94)8 — (1,859)
Cash Net Operating Income$60,859 $10,219 $16,067 $2,425 $28,711 $10,753 $4,650 $9,112 $— $114,085 













logo.jpg         See reporting definitions.                                  7

SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Annualized Cash NOI by Property Type
(in thousands)
Year Ended December 31, 2023
Skilled Nursing/ Transitional CareSenior HousingBehavioral HealthSpecialty Hospitals and Other
Senior Housing - LeasedSenior Housing - Managed ConsolidatedSenior Housing - Managed UnconsolidatedTotal Senior HousingOtherCorporateTotal
Net income (loss)$81,027 $20,030 $1,846 $(2,897)$18,979 $26,003 $13,072 $35,095 $(160,420)$13,756 
Adjustments:
Depreciation and amortization99,246 17,613 47,002 — 64,615 13,275 5,843 — 108 183,087 
Interest832 898 — — 898 — — — 111,234 112,964 
General and administrative— — — — — — — — 47,472 47,472 
Provision for loan losses and other reserves— — — — — — — — 191 191 
Impairment of real estate14,332 — — — — — — — — 14,332 
Loss on extinguishment of debt— — — — — — — — 1,541 1,541 
Other income— — (470)— (470)— — — (2,128)(2,598)
Net loss on sales of real estate62,419 3,744 10,462 — 14,206 — — — — 76,625 
Loss from unconsolidated joint ventures— — — 2,897 2,897 — — — — 2,897 
Income tax expense— — — — — — — — 2,002 2,002 
Sabra’s share of unconsolidated joint ventures’ Net Operating Income— — — 9,744 9,744 — — — — 9,744 
Net Operating Income$257,856 $42,285 $58,840 $9,744 $110,869 $39,278 $18,915 $35,095 $— $462,013 
Non-cash revenue and expense adjustments(6,290)(1,820)— — (1,820)128 (496)(372)— (8,850)
Cash Net Operating Income$251,566 $40,465 $58,840 $9,744 $109,049 $39,406 $18,419 $34,723 $— $453,163 
Annualizing adjustments (1)
(2,451)1,396 5,642 (42)6,996 3,355 357 (220)— 8,037 
Annualized Cash Net Operating Income$249,115 $41,861 $64,482 $9,702 $116,045 $42,761 $18,776 $34,503 $— $461,200 
Reallocation adjustments (2)
629 5,683 — — 5,683 24,426 — (30,738)— — 
Annualized Cash Net Operating Income, as adjusted$249,744 $47,544 $64,482 $9,702 $121,728 $67,187 $18,776 $3,765 $— $461,200 




(1)    Represents the annual effect of acquisitions, dispositions, lease modifications and scheduled rent increases completed during the period and mathematical adjustments needed to make Cash Net Operating Income for the period representative of Cash Net Operating Income for a full year.
(2)    Adjustments to reflect Annualized Cash Net Operating Income from mortgage and construction loans receivable and preferred equity investments in the related asset class of the underlying real estate.
logo.jpg         See reporting definitions.                                  8

SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Annualized Cash NOI by Payor Source
(in thousands)
Year Ended December 31, 2023
Private PayorsNon-Private PayorsOtherCorporateTotal
Net income (loss)$45,504 $93,577 $35,095 $(160,420)$13,756 
Adjustments:
Depreciation and amortization88,977 94,002 — 108 183,087 
Interest949 781 — 111,234 112,964 
General and administrative— — — 47,472 47,472 
Provision for loan losses and other reserves— — — 191 191 
Impairment of real estate2,560 11,772 — — 14,332 
Loss on extinguishment of debt— — — 1,541 1,541 
Other income(470)— — (2,128)(2,598)
Net loss on sales of real estate31,683 44,942 — — 76,625 
Loss from unconsolidated joint ventures2,897 — — — 2,897 
Income tax expense— — — 2,002 2,002 
Sabra’s share of unconsolidated joint ventures’ Net Operating Income9,744 — — — 9,744 
Net Operating Income$181,844 $245,074 $35,095 $— $462,013 
Non-cash revenue and expense adjustments(4,078)(4,400)(372)— (8,850)
Cash Net Operating Income$177,766 $240,674 $34,723 $— $453,163 
Annualizing adjustments (1)
8,717 (460)(220)— 8,037 
Annualized Cash Net Operating Income$186,483 $240,214 $34,503 $— $461,200 










(1)    Represents the annual effect of acquisitions, dispositions, lease modifications and scheduled rent increases completed during the period and mathematical adjustments needed to make Cash Net Operating Income for the period representative of Cash Net Operating Income for a full year.
logo.jpg         See reporting definitions.                                  9

SABRA HEALTH CARE REIT, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Annualized Cash NOI by Relationship
(in thousands)
Year Ended December 31, 2023
Signature HealthcareThe Ensign GroupAvamere Family of CompaniesSignature BehavioralRecovery Centers of AmericaHoliday AL Holdings LPLeo Brown GroupThe McGuire GroupCommuniCareHealthmark GroupAll Other RelationshipsCorporateTotal
Net income (loss)$28,608 $24,866 $20,842 $23,650 $24,402 $(6,764)$10,023 $14,331 $11,566 $12,884 $9,768 $(160,420)$13,756 
Adjustments:
Depreciation and amortization14,105 13,432 12,070 8,969 1,297 20,737 13,969 7,127 3,981 3,316 83,976 108 183,087 
Interest— — — — — — 488 — — — 1,242 111,234 112,964 
General and administrative— — — — — — — — — — — 47,472 47,472 
Provision for loan losses and other reserves— — — — — — — — — — — 191 191 
Impairment of real estate— — — — — — — — — — 14,332 — 14,332 
Loss on extinguishment of debt— — — — — — — — — — — 1,541 1,541 
Other income— — — — — — — — — — (470)(2,128)(2,598)
Net loss on sales of real estate— — 1,408 — — 10,462 — — — — 64,755 — 76,625 
Loss from unconsolidated joint ventures— — — — — — — — — — 2,897 — 2,897 
Income tax expense— — — — — — — — — — — 2,002 2,002 
Sabra’s share of unconsolidated joint ventures’ Net Operating Income— — — — — — — — — — 9,744 — 9,744 
Net Operating Income$42,713 $38,298 $34,320 $32,619 $25,699 $24,435 $24,480 $21,458 $15,547 $16,200 $186,244 $— $462,013 
Non-cash revenue and expense adjustments22 23 241 (782)157 — (1,231)(4,201)854 3 (3,936)— (8,850)
Cash Net Operating Income$42,735 $38,321 $34,561 $31,837 $25,856 $24,435 $23,249 $17,257 $16,401 $16,203 $182,308 $— $453,163 
Annualizing adjustments (1)
306 (491)1,749 261 1,528 406 1,596 75 206 147 2,254 — 8,037 
Annualized Cash Net Operating Income$43,041 $37,830 $36,310 $32,098 $27,384 $24,841 $24,845 $17,332 $16,607 $16,350 $184,562 $— $461,200 







(1)    Represents the annual effect of acquisitions, dispositions, lease modifications and scheduled rent increases completed during the period and mathematical adjustments needed to make Cash Net Operating Income for the period representative of Cash Net Operating Income for a full year.
logo.jpg         See reporting definitions.                                  10
SABRA HEALTH CARE REIT, INC.
REPORTING DEFINITIONS
Adjusted EBITDA. Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation and amortization (“EBITDA”) excluding the impact of merger-related costs, stock-based compensation expense under the Company's long-term equity award program, and loan loss reserves. Adjusted EBITDA is an important non-GAAP supplemental measure of operating performance.
Annualized Cash Net Operating Income (“Annualized Cash NOI”). The Company believes that net income as defined by GAAP is the most appropriate earnings measure. The Company considers Annualized Cash NOI an important supplemental measure because it allows investors, analysts and its management to evaluate the operating performance of its investments. The Company defines Annualized Cash NOI as Annualized Revenues less operating expenses and non-cash revenues and expenses. Annualized Cash NOI excludes all other financial statement amounts included in net income.
Annualized Revenues. The annual contractual rental revenues under leases and interest and other income generated by the Company’s loans receivable and other investments based on amounts invested and applicable terms as of the end of the period presented. Annualized Revenues do not include tenant recoveries or additional rents and are adjusted to reflect actual payments received related to the twelve months ended at the end of the respective period for leases no longer accounted for on an accrual basis.
Behavioral Health. Includes behavioral hospitals that provide inpatient and outpatient care for patients with mental health conditions, chemical dependence or substance addictions and addiction treatment centers that provide treatment services for chemical dependence and substance addictions, which may include inpatient care, outpatient care, medical detoxification, therapy and counseling.
Cash Net Operating Income (“Cash NOI”). The Company believes that net income as defined by GAAP is the most appropriate earnings measure. The Company considers Cash NOI an important supplemental measure because it allows investors, analysts and its management to evaluate the operating performance of its investments. The Company defines Cash NOI as total revenues less operating expenses and non-cash revenues and expenses. Cash NOI excludes all other financial statement amounts included in net income.
Consolidated Debt. The principal balances of the Company’s revolving credit facility, term loans, senior unsecured notes, and secured indebtedness as reported in the Company’s consolidated financial statements.
Funds From Operations (“FFO”) and Adjusted Funds from Operations (“AFFO”). The Company believes that net income as defined by GAAP is the most appropriate earnings measure. The Company also believes that funds from operations, or FFO, as defined in accordance with the definition used by the National Association of Real Estate Investment Trusts (“Nareit”), and adjusted funds from operations, or AFFO (and related per share amounts) are important non-GAAP supplemental measures of the Company’s 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 real estate investment trust that uses historical cost accounting for depreciation could be less informative. Thus, Nareit created FFO as a supplemental measure of operating performance for real estate investment trusts 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 the Company’s share of gains or losses from real estate dispositions related to its unconsolidated joint ventures, plus real estate depreciation and amortization, net of amounts related to noncontrolling interests, plus the Company’s share of depreciation and amortization related to its 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 depreciable real estate held by the entity. AFFO is defined as FFO excluding merger and acquisition costs, 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 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 ineffectiveness gain/loss on derivative instruments, and non-cash revenue and expense amounts related to noncontrolling interests) and the Company’s share of non-cash adjustments related to its unconsolidated joint ventures. The Company believes that the use of FFO and AFFO (and the related per share amounts), combined with the required GAAP presentations, improves the understanding of the Company’s operating results among investors and makes comparisons of operating results among real estate investment trusts more meaningful. The Company considers 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 the operating performance of the Company between periods or as compared to other companies. While FFO and AFFO are relevant and widely used measures of operating performance of real estate investment trusts, 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 the Company’s liquidity or operating performance. FFO and AFFO also do not consider the costs associated with capital expenditures related to the Company’s real estate assets nor do they purport to be indicative of cash available to fund the Company’s future cash requirements. Further, the Company’s computation of FFO and AFFO may not be comparable to FFO and AFFO reported by other real estate investment trusts that do not define FFO in accordance with the current Nareit definition or that interpret the current Nareit definition or define AFFO differently than the Company does.
Net Debt. The principal balances of the Company’s revolving credit facility, term loans, senior unsecured notes, and secured indebtedness as reported in the Company’s consolidated financial statements, net of cash and cash equivalents as reported in the Company’s consolidated financial statements.
Net Debt to Adjusted EBITDA. Net Debt to Adjusted EBITDA is calculated as Net Debt divided by Annualized Adjusted EBITDA, which is Adjusted EBITDA, as adjusted for annualizing adjustments that give effect to the acquisitions and dispositions completed during the respective period as though such acquisitions and dispositions were completed as of the beginning of the period presented.
Net Operating Income (“NOI”). The Company believes that net income as defined by GAAP is the most appropriate earnings measure. The Company considers NOI an important supplemental measure because it allows investors, analysts and its management to evaluate the operating performance of its investments. The Company defines NOI as total revenues less operating expenses. NOI excludes all other financial statement amounts included in net income.
logo.jpg         See reporting definitions.                                  11
SABRA HEALTH CARE REIT, INC.
REPORTING DEFINITIONS
Normalized FFO and Normalized AFFO. Normalized FFO and Normalized AFFO represent FFO and AFFO, respectively, adjusted for certain income and expense items that the Company does not believe are indicative of its ongoing operating results. The Company considers Normalized FFO and Normalized AFFO to be useful measures to evaluate the Company’s operating results excluding these income and expense items to help investors compare the operating performance of the Company between periods or as compared to other companies. Normalized FFO and Normalized AFFO 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 the Company’s liquidity or operating performance. Normalized FFO and Normalized AFFO also do not consider the costs associated with capital expenditures related to the Company’s real estate assets nor do they purport to be indicative of cash available to fund the Company’s future cash requirements. Further, the Company’s computation of Normalized FFO and Normalized AFFO may not be comparable to Normalized FFO and Normalized AFFO reported by other real estate investment trusts that do not define FFO in accordance with the current Nareit definition or that interpret the current Nareit definition or define FFO and AFFO or Normalized FFO and Normalized AFFO differently than the Company does.
Senior Housing. Senior Housing communities include independent living, assisted living, continuing care retirement and memory care communities.
Senior Housing - Managed. Senior Housing communities operated by third-party property managers pursuant to property management agreements.
Skilled Nursing/Transitional Care. Skilled Nursing/Transitional Care facilities include skilled nursing, transitional care, multi-license designation and mental health facilities.
Specialty Hospitals and Other. Includes acute care, long-term acute care and rehabilitation hospitals, facilities that provide residential services, which may include assistance with activities of daily living, and other facilities not classified as Skilled Nursing/Transitional Care, Senior Housing or Behavioral Health.
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