SUMMARIZED CONDENSED CONSOLIDATING INFORMATION (Tables)

3 Months Ended

Mar. 31, 2014

SUMMARIZED CONDENSED CONSOLIDATING INFORMATION [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEET

March 31, 2014

(dollars in thousands, except per share amounts)

(unaudited)



	Parent Company			Issuers		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries			Elimination			Consolidated
Assets
Real estate investments, net of accumulated depreciation	$	88		$	—	$	850,923	$	170,693		$	—		$	1,021,704
Loans receivable and other investments, net	—			—		199,603		—			—			199,603
Cash and cash equivalents	2,301			—		—		1,985			—			4,286
Restricted cash	—			—		142		6,222			—			6,364
Deferred tax assets	24,212			—		—		—			—			24,212
Prepaid expenses, deferred financing costs and other assets	1,235			13,864		52,618		7,470			—			75,187
Intercompany	55,099			375,082		—		9,977			(440,158		)	—
Investment in subsidiaries	385,248			553,523		9,070		—			(947,841		)	—
Total assets	$	468,183		$	942,469	$	1,112,356	$	196,347		$	(1,387,999	)	$	1,331,356
Liabilities
Mortgage notes	$	—		$	—	$	—	$	130,106		$	—		$	130,106
Secured revolving credit facility	—			—		162,000		—			—			162,000
Senior unsecured notes	—			550,000		—		—			—			550,000
Accounts payable and accrued liabilities	5,230			7,221		12,892		972			—			26,315
Tax liability	24,212			—		—		—			—			24,212
Intercompany	—			—		440,158		—			(440,158		)	—
Total liabilities	29,442			557,221		615,050		131,078			(440,158		)	892,633
Equity
Preferred stock, $.01 par value; 10,000,000 shares authorized, 5,750,000 shares issued and outstanding as of March 31, 2014	58			—		—		—			—			58
Common stock, $.01 par value; 125,000,000 shares authorized, 39,143,251 shares issued and outstanding as of March 31, 2014	391			—		—		—			—			391
Additional paid-in capital	537,288			280,437		309,490		34,325			(624,252		)	537,288
Cumulative distributions in excess of net income	(98,996		)	104,811		187,816		30,962			(323,589		)	(98,996		)
Total Sabra Health Care REIT, Inc. stockholders' equity	438,741			385,248		497,306		65,287			(947,841		)	438,741
Noncontrolling interests	—			—		—		(18		)	—			(18		)
Total equity	438,741			385,248		497,306		65,269			(947,841		)	438,723
Total liabilities and equity	$	468,183		$	942,469	$	1,112,356	$	196,347		$	(1,387,999	)	$	1,331,356

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2013

(dollars in thousands, except per share amounts)



	Parent Company			Issuers		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Assets
Real estate investments, net of accumulated depreciation	$	101		$	—	$	751,771	$	163,546	$	—		$	915,418
Loans receivable, net	—			—		185,293		—		—			185,293
Cash and cash equivalents	3,551			—		—		757		—			4,308
Restricted cash	—			—		121		5,231		—			5,352
Deferred tax assets	24,212			—		—		—		—			24,212
Prepaid expenses, deferred financing costs and other assets	1,217			9,207		46,694		6,134		—			63,252
Intercompany	63,125			270,194		—		42,637		(375,956		)	—
Investment in subsidiaries	398,640			537,505		25,205		—		(961,350		)	—
Total assets	$	490,846		$	816,906	$	1,009,084	$	218,305	$	(1,337,306	)	$	1,197,835
Liabilities
Mortgage notes	$	—		$	—	$	—	$	141,328	$	—		$	141,328
Secured revolving credit facility	—			—		135,500		—		—			135,500
Senior unsecured notes	—			414,402		—		—		—			414,402
Accounts payable and accrued liabilities	6,470			3,864		11,008		887		—			22,229
Tax liability	24,212			—		—		—		—			24,212
Intercompany	—			—		375,956		—		(375,956		)	—
Total liabilities	30,682			418,266		522,464		142,215		(375,956		)	737,671
Equity
Preferred stock, $.01 par value; 10,000,000 shares authorized, 5,750,000 shares issued and outstanding as of December 31, 2013	58			—		—		—		—			58
Common stock, $.01 par value; 125,000,000 shares authorized, 38,788,745 shares issued and outstanding as of December 31, 2013	388			—		—		—		—			388
Additional paid-in capital	534,639			291,226		323,574		48,507		(663,307		)	534,639
Cumulative distributions in excess of net income	(74,921		)	107,414		163,046		27,583		(298,043		)	(74,921		)
Total Sabra Health Care REIT, Inc. stockholders' equity	460,164			398,640		486,620		76,090		(961,350		)	460,164
Total liabilities and equity	$	490,846		$	816,906	$	1,009,084	$	218,305	$	(1,337,306	)	$	1,197,835

Schedule of Condensed Income Statement

CONDENSED CONSOLIDATING STATEMENT OF (LOSS) INCOME

For the Three Months Ended March 31, 2014

(dollars in thousands, except per share amounts)

(unaudited)



	Parent Company			Issuers			Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries			Elimination			Consolidated
Revenues:
Rental income	$	—		$	—		$	28,777	$	7,316		$	—		$	36,093
Interest and other income	4			—			4,092		661			—			4,757
Total revenues	4			—			32,869		7,977			—			40,850
Expenses:
Depreciation and amortization	13			—			7,420		1,917			—			9,350
Interest	—			7,790			1,874		1,470			—			11,134
General and administrative	4,692			1			444		716			—			5,853
Total expenses	4,705			7,791			9,738		4,103			—			26,337

Other (expense) income:
Loss on extinguishment of debt	—			(21,619		)	—		(515		)	—			(22,134		)
Other income	—			—			300		—			—			300

Total other (expense) income	—			(21,619		)	300		(515		)	—			(21,834		)

(Loss) income in subsidiary	(2,602		)	26,808			1,341		—			(25,547		)	—

Net (loss) income	(7,303		)	(2,602		)	24,772		3,359			(25,547		)	(7,321		)

Net loss attributable to noncontrolling interests	—			—			—		18			—			18

Net (loss) income attributable to Sabra Health Care REIT, Inc.	(7,303		)	(2,602		)	24,772		3,377			(25,547		)	(7,303		)

Preferred stock dividends	(2,561		)	—			—		—			—			(2,561		)

Net (loss) income attributable to common stockholders	$	(9,864	)	$	(2,602	)	$	24,772	$	3,377		$	(25,547	)	$	(9,864	)

Net (loss) attributable to common stockholders, per:
Basic common share															$	(0.25	)
Diluted common share															$	(0.25	)
Weighted-average number of common shares outstanding, basic															38,968,403
Weighted-average number of common shares outstanding, diluted															38,968,403

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Three Months Ended March 31, 2013

(dollars in thousands, except per share amounts)

(unaudited)



	Parent Company			Issuers		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—		$	—	$	24,134	$	7,341	$	—		$	31,475
Interest and other income	54			—		493		—		—			547
Total revenues	54			—		24,627		7,341		—			32,022
Expenses:
Depreciation and amortization	13			—		6,314		1,919		—			8,246
Interest	—			6,716		1,340		1,946		—			10,002
General and administrative	4,584			1		114		18		—			4,717
Total expenses	4,597			6,717		7,768		3,883		—			22,965

Other income (expense):
Other income	—			—		500		—		—			500

Total other income (expense)	—			—		500		—		—			500

Income in subsidiary	14,100			20,817		980		—		(35,897		)	—

Net income	9,557			14,100		18,339		3,458		(35,897		)	9,557

Preferred dividends	(304		)	—		—		—		—			(304		)

Net income attributable to common stockholders	$	9,253		$	14,100	$	18,339	$	3,458	$	(35,897	)	$	9,253

Net income attributable to common stockholders, per:
Basic common share													$	0.25
Diluted common share													$	0.25
Weighted-average number of common shares outstanding, basic													37,286,121
Weighted-average number of common shares outstanding, diluted													37,739,964

Schedule of Condensed Cash Flow Statement

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Three Months Ended March 31, 2014

(in thousands)

(unaudited)



	Parent Company			Issuers			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries				Elimination			Consolidated
Net cash (used in) provided by operating activities	$	(10,795	)	$	—		$	—		$	12,002			$	—		$	1,207
Cash flows from investing activities:
Acquisitions of real estate	—			—			(108,650		)	—				—			(108,650		)
Origination of note receivable	—			—			(19,428		)	—				—			(19,428		)
Preferred equity investment	—			—			(5		)	—				—			(5		)
Additions to real estate	—			—			(56		)	—				—			(56		)
Investment in Subsidiary	(1,165		)	(1,165		)	—			—				2,330			—
Intercompany financing	27,955			(101,641		)	—			—				73,686			—
Net cash provided by (used in) investing activities	26,790			(102,806		)	(128,139		)	—				76,016			(128,139		)
Cash flows from financing activities:
Proceeds from issuance of senior unsecured notes	—			350,000			—			—			—	—			350,000
Principal payments on senior unsecured notes	—			(211,250		)	—			—				—			(211,250		)
Proceeds from secured revolving credit facility	—			—			50,000			—				—			50,000
Payments on secured revolving credit facility	—			—			(23,500		)	—				—			(23,500		)
Proceeds from mortgage notes	—			—			—			46,103				—			46,103
Principal payments on mortgage notes	—			—			—			(57,325		)		—			(57,325		)
Payments of deferred financing costs	—			(9,154		)	(2		)	(717		)		—			(9,873		)
Issuance of common stock	(648		)	—			—			—				—			(648		)
Dividends paid on common and preferred stock	(16,597		)	—			—			—				—			(16,597		)
Contribution from Parent	—			1,165			—			1,165				(2,330		)	—
Intercompany financing	—			(27,955		)	101,641			—				(73,686		)	—
Net cash (used in) provided by financing activities	(17,245		)	102,806			128,139			(10,774		)		(76,016		)	126,910
Net (decrease) increase in cash and cash equivalents	(1,250		)	—			—			1,228				—			(22		)
Cash and cash equivalents, beginning of period	3,551			—			—			757				—			4,308
Cash and cash equivalents, end of period	$	2,301		$	—		$	—		$	1,985			$	—		$	4,286

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Three Months Ended March 31, 2013

(in thousands)

(unaudited)



	Parent Company			Issuers			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Elimination			Consolidated
Net cash provided by operating activities	$	20,103		$	—		$	—		$	1,500		$	—		$	21,603
Cash flows from investing activities:
Origination of note receivable	—			—			(12,873		)	—			—			(12,873		)
Preferred equity investment	—			—			(4,646		)	—			—			(4,646		)
Net proceeds from the sale of real estate	—			—			—			2,208			—			2,208
Distribution from Subsidiary	1,851			1,851			—			—			(3,702		)	—
Intercompany financing	(107,901		)	(107,886		)	—			—			215,787			—
Net cash (used in) provided by investing activities	(106,050		)	(106,035		)	(17,519		)	2,208			212,085			(15,311		)
Cash flows from financing activities:
Principal payments on secured revolving credit facility	—			—			(92,500		)	—			—			(92,500		)
Principal payments on mortgage notes	—			—			—			(989		)	—			(989		)
Payments of deferred financing costs	—			(15		)	(75		)	18			—			(72		)
Issuance of common stock	(2,534		)	—			—			—			—			(2,534		)
Issuance of preferred stock	138,983			—			—			—			—			138,983
Dividends paid	(12,716		)	—			—			—			—			(12,716		)
Distribution to Parent	—			(1,851		)	—			(1,851		)	3,702			—
Intercompany financing	—			107,901			110,094			(2,208		)	(215,787		)	—
Net cash provided by (used in) financing activities	123,733			106,035			17,519			(5,030		)	(212,085		)	30,172
Net increase (decrease) in cash and cash equivalents	37,786			—			—			(1,322		)	—			36,464
Cash and cash equivalents, beginning of period	15,075			—			—			2,026			—			17,101
Cash and cash equivalents, end of period	$	52,861		$	—		$	—		$	704		$	—		$	53,565