SUMMARIZED CONDENSED CONSOLIDATING INFORMATION (Tables)

6 Months Ended

Jun. 30, 2014

SUMMARIZED CONDENSED CONSOLIDATING INFORMATION [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEET

June 30, 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	$	75		$	—	$	844,136	$	192,101		$	—		$	1,036,312
Loans receivable and other investments, net	—			—		225,787		—			—			225,787
Cash and cash equivalents	12,209			—		—		2,876			—			15,085
Restricted cash	—			—		160		5,965			—			6,125
Deferred tax assets	24,212			—		—		—			—			24,212
Prepaid expenses, deferred financing costs and other assets	985			13,466		45,875		8,664			—			68,990
Intercompany	243,557			369,569		—		—			(613,126		)	—
Investment in subsidiaries	403,710			580,020		9,326		—			(993,056		)	—
Total assets	$	684,748		$	963,055	$	1,125,284	$	209,606		$	(1,606,182	)	$	1,376,511
Liabilities
Mortgage notes	$	—		$	—	$	—	$	125,400		$	—		$	125,400
Secured revolving credit facility	—			—		—		—			—			—
Senior unsecured notes	—			550,000		—		—			—			550,000
Accounts payable and accrued liabilities	4,698			9,345		5,691		1,350			—			21,084
Tax liability	24,212			—		—		—			—			24,212
Intercompany	—			—		598,992		14,134			(613,126		)	—
Total liabilities	28,910			559,345		604,683		140,884			(613,126		)	720,696
Equity
Preferred stock, $.01 par value; 10,000,000 shares authorized, 5,750,000 shares issued and outstanding as of June 30, 2014	58			—		—		—			—			58
Common stock, $.01 par value; 125,000,000 shares authorized, 47,263,151 shares issued and outstanding as of June 30, 2014	473			—		—		—			—			473
Additional paid-in capital	760,258			280,220		309,266		33,509			(622,995		)	760,258
Cumulative distributions in excess of net income	(104,951		)	123,490		211,335		35,236			(370,061		)	(104,951		)
Total Sabra Health Care REIT, Inc. stockholders' equity	655,838			403,710		520,601		68,745			(993,056		)	655,838
Noncontrolling interests	—			—		—		(23		)	—			(23		)
Total equity	655,838			403,710		520,601		68,722			(993,056		)	655,815
Total liabilities and equity	$	684,748		$	963,055	$	1,125,284	$	209,606		$	(1,606,182	)	$	1,376,511

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 and other investments, 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 INCOME

For the Three Months Ended June 30, 2014

(dollars in thousands, except per share amounts)

(unaudited)



	Parent Company			Issuers			Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries			Elimination			Consolidated
Revenues:
Rental income	$	—		$	—		$	29,795	$	7,690		$	—		$	37,485
Interest and other income	3			—			4,806		679			—			5,488
Total revenues	3			—			34,601		8,369			—			42,973
Expenses:
Depreciation and amortization	13			—			7,725		2,017			—			9,755
Interest	—			7,964			1,613		1,417			—			10,994
General and administrative	3,869			1			3,483		573			—			7,926
Total expenses	3,882			7,965			12,821		4,007			—			28,675

Other (expense) income:
Loss on extinguishment of debt	—			(70		)	—		(92		)	—			(162		)
Other income (expense)	—			—			660		—			—			660

Total other (expense) income	—			(70		)	660		(92		)	—			498

Income in subsidiary	18,680			26,715			1,078		—			(46,473		)	—

Net income	14,801			18,680			23,518		4,270			(46,473		)	14,796

Net loss attributable to noncontrolling interests	—			—			—		5			—			5

Net income attributable to Sabra Health Care REIT, Inc.	14,801			18,680			23,518		4,275			(46,473		)	14,801

Preferred stock dividends	(2,560		)	—			—		—			—			(2,560		)

Net income attributable to common stockholders	$	12,241		$	18,680		$	23,518	$	4,275		$	(46,473	)	$	12,241

Net income attributable to common stockholders, per:
Basic common share															$	0.28
Diluted common share															$	0.28
Weighted-average number of common shares outstanding, basic															43,655,292
Weighted-average number of common shares outstanding, diluted															44,096,297

CONDENSED CONSOLIDATING STATEMENT OF (LOSS) INCOME

For the Three Months Ended June 30, 2013

(dollars in thousands, except per share amounts)

(unaudited)



	Parent Company			Issuers			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—		$	—		$	24,219		$	7,299	$	—		$	31,518
Interest and other income	16			—			741			—		—			757
Total revenues	16			—			24,960			7,299		—			32,275
Expenses:
Depreciation and amortization	13			—			6,302			1,907		—			8,222
Interest	—			7,722			639			1,782		—			10,143
General and administrative	3,091			2			299			30		—			3,422
Total expenses	3,104			7,724			7,240			3,719		—			21,787

Other (expense) income:
Loss on extinguishment of debt	—			(9,750		)	—			—		—			(9,750		)
Other income (expense)	—			—			(1,400		)	—		—			(1,400		)

Total other (expense) income	—			(9,750		)	(1,400		)	—		—			(11,150		)

Income in subsidiary	2,426			19,900			930			—		(23,256		)	—

Net (loss) income	(662		)	2,426			17,250			3,580		(23,256		)	(662		)

Preferred dividends	(2,523		)	—			—			—		—			(2,523		)

Net (loss) income attributable to common stockholders	$	(3,185	)	$	2,426		$	17,250		$	3,580	$	(23,256	)	$	(3,185	)

Net loss attributable to common stockholders, per:
Basic common share															$	(0.09	)
Diluted common share															$	(0.09	)
Weighted-average number of common shares outstanding, basic															37,357,112
Weighted-average number of common shares outstanding, diluted															37,357,112

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Six Months Ended June 30, 2014

(dollars in thousands, except per share amounts)

(unaudited)



	Parent Company				Issuers			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Elimination			Consolidated
Revenues:
Rental income	$	—			$	—		$	58,572		$	15,006		$	—		$	73,578
Interest and other income	7				—			8,898			1,340			—			10,245
Total revenues	7				—			67,470			16,346			—			83,823
Expenses:
Depreciation and amortization	25				—			15,146			3,934			—			19,105
Interest	—				15,754			3,488			2,886			—			22,128
General and administrative	8,559				2			3,928			1,290			—			13,779
Total expenses	8,584				15,756			22,562			8,110			—			55,012

Other (expense) income:
Loss on extinguishment of debt	—				(21,689		)	—			(607		)	—			(22,296		)
Other income (expense)	—				—			960			—			—			960

Total other (expense) income	—				(21,689		)	960			(607		)	—			(21,336		)

Income in subsidiary	16,075				53,520			2,419			—			(72,014		)	—

Net income	7,498				16,075			48,287			7,629			(72,014		)	7,475

Net loss attributable to noncontrolling interests	—				—			—			23			—			23

Net income attributable to Sabra Health Care REIT, Inc.	7,498				16,075			48,287			7,652			(72,014		)	7,498

Preferred dividends	(5,121		)		—			—			—			—			(5,121		)

Net income attributable to common stockholders	$	2,377		—	$	16,075		$	48,287	—	$	7,652		$	(72,014	)	$	2,377

Net income attributable to common stockholders, per:
Basic common share																	$	0.06
Diluted common share																	$	0.06
Weighted-average number of common shares outstanding, basic																	41,324,795
Weighted-average number of common shares outstanding, diluted																	41,791,470

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Six Months Ended June 30, 2013

(dollars in thousands, except per share amounts)

(unaudited)



	Parent Company			Issuers			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—		$	—		$	48,353		$	14,640	$	—		$	62,993
Interest and other income	69			—			1,235			—		—			1,304
Total revenues	69			—			49,588			14,640		—			64,297
Expenses:
Depreciation and amortization	25			—			12,617			3,826		—			16,468
Interest	—			14,438			1,979			3,728		—			20,145
General and administrative	7,675			4			412			48		—			8,139
Total expenses	7,700			14,442			15,008			7,602		—			44,752

Other (expense) income:
Loss on extinguishment of debt	—			(9,750		)	—			—		—			(9,750		)
Other income (expense)	—			—			(900		)	—		—			(900		)

Total other (expense) income	—			(9,750		)	(900		)	—		—			(10,650		)

Income in subsidiary	16,526			40,718			1,909			—		(59,153		)	—

Net income	8,895			16,526			35,589			7,038		(59,153		)	8,895

Preferred dividends	(2,827		)	—			—			—		—			(2,827		)

Net income attributable to common stockholders	$	6,068		$	16,526		$	35,589		$	7,038	$	(59,153	)	$	6,068

Net income attributable to common stockholders, per:
Basic common share															$	0.16
Diluted common share															$	0.16
Weighted-average number of common shares outstanding, basic															37,321,813
Weighted-average number of common shares outstanding, diluted															37,789,804

Schedule of Condensed Cash Flow Statement

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2014

(in thousands)

(unaudited)



	Parent Company			Issuers			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries				Elimination			Consolidated
Net cash (used in) provided by operating activities	$	(1,746	)	$	—		$	—		$	30,667			$	—		$	28,921
Cash flows from investing activities:
Acquisitions of real estate	—			—			(108,650		)	(9,739		)		—			(118,389		)
Origination of note receivable	—			—			(38,373		)	—				—			(38,373		)
Preferred equity investment	—			—			(6,458		)	—				—			(6,458		)
Additions to real estate	—			—			(783		)	—				—			(783		)
Investment in Subsidiary	(12,122		)	(12,122		)	—			—				24,244			—
Intercompany financing	(160,248		)	(289,776		)	—			—				450,024			—
Net cash used in investing activities	(172,370		)	(301,898		)	(154,264		)	(9,739		)		474,268			(164,003		)
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	—			—			80,000			—				—			80,000
Payments on secured revolving credit facility	—			—			(215,500		)	—				—			(215,500		)
Proceeds from mortgage notes	—			—			—			57,703				—			57,703
Principal payments on mortgage notes	—			—			—			(87,733		)		—			(87,733		)
Payments of deferred financing costs	—			(9,222		)	(12		)	(901		)		—			(10,135		)
Issuance of common stock	219,899			—			—			—				—			219,899
Dividends paid on common and preferred stock	(37,125		)	—			—			—				—			(37,125		)
Contribution from Parent	—			12,122			—			12,122				(24,244		)	—
Intercompany financing	—			160,248			289,776			—				(450,024		)	—
Net cash provided by (used in) financing activities	182,774			301,898			154,264			(18,809		)		(474,268		)	145,859
Net increase in cash and cash equivalents	8,658			—			—			2,119				—			10,777
Cash and cash equivalents, beginning of period	3,551			—			—			757				—			4,308
Cash and cash equivalents, end of period	$	12,209		$	—		$	—		$	2,876			$	—		$	15,085

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2013

(in thousands)

(unaudited)



	Parent Company			Issuers			Combined Guarantor Subsidiaries			Combined Non- Guarantor Subsidiaries			Elimination			Consolidated
Net cash provided by operating activities	$	12,200		$	—		$	—		$	10,786		$	—		$	22,986
Cash flows from investing activities:
Acquisitions of real estate	—			—			(6,175		)	—			—			(6,175		)
Origination of note receivable	—			—			(25,244		)	—			—			(25,244		)
Preferred equity investment	—			—			(5,144		)	—			—			(5,144		)
Additions to real estate	—			—			(226		)	—			—			(226		)
Net proceeds from the sale of real estate	—			—			—			2,208			—			2,208
Investment in Subsidiary	—			—			—			—			—			—
Distribution from Subsidiary	1,920			1,920			—			—			(3,840		)	—
Intercompany financing	(46,072		)	(127,163		)	—			—			173,235			—
Net cash (used in) provided by investing activities	(44,152		)	(125,243		)	(36,789		)	2,208			169,395			(34,581		)
Cash flows from financing activities:
Proceeds from issuance of senior unsecured notes	—			200,000			—			—			—			200,000
Principal payments on senior unsecured notes	—			(113,750		)	—			—			—			(113,750		)
Payments on secured revolving credit facility	—			—			(92,500		)	—			—			(92,500		)
Principal payments on mortgage notes	—			—			—			(9,193		)	—			(9,193		)
Payments of deferred financing costs	—			(5,159		)	(82		)	(137		)	—			(5,378		)
Issuance of common stock	(2,851		)	—			—			—			—			(2,851		)
Issuance of preferred stock	138,345			—			—			—			—			138,345
Dividends paid	(27,409		)	—			—			—			—			(27,409		)
Distribution to Parent	—			(1,920		)	—			(1,920		)	3,840			—
Intercompany financing	—			46,072			129,371			(2,208		)	(173,235		)	—
Net cash provided by (used in) financing activities	108,085			125,243			36,789			(13,458		)	(169,395		)	87,264
Net increase (decrease) in cash and cash equivalents	76,133			—			—			(464		)	—			75,669
Cash and cash equivalents, beginning of period	15,075			—			—			2,026			—			17,101
Cash and cash equivalents, end of period	$	91,208		$	—		$	—		$	1,562		$	—		$	92,770