SUMMARIZED CONDENSED CONSOLIDATING INFORMATION (Tables)

9 Months Ended

Sep. 30, 2016

SUMMARIZED CONDENSED CONSOLIDATING INFORMATION [Abstract]

Schedule of Condensed Consolidating Balance Sheet (unaudited)

CONDENSED CONSOLIDATING BALANCE SHEET

September 30, 2016

(in thousands)

(unaudited)



	Parent Company			Issuers		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Assets
Real estate investments, net of accumulated depreciation	$	156		$	—	$	1,781,095	$	218,527	$	—		$	1,999,778
Loans receivable and other investments, net	(400		)	—		97,167		—		(2,301		)	94,466
Cash and cash equivalents	14,258			—		2,487		2,929		—			19,674
Restricted cash	—			—		152		8,998		—			9,150
Prepaid expenses, deferred financing costs and other assets, net	403			12,372		95,296		11,399		(3,117		)	116,353
Intercompany	407,320			669,338		—		—		(1,076,658		)	—
Investment in subsidiaries	607,204			867,360		67,262		—		(1,541,826		)	—
Total assets	$	1,028,941		$	1,549,070	$	2,043,459	$	241,853	$	(2,623,902	)	$	2,239,421

Liabilities
Mortgage notes, net	$	—		$	—	$	—	$	162,130	$	—		$	162,130
Term loans, net	—			243,540		94,101		—		—			337,641
Senior unsecured notes, net	—			687,607		—		—		—			687,607
Accounts payable and accrued liabilities	15,094			10,719		12,945		1,515		(2,117		)	38,156
Intercompany	—			—		1,032,675		43,983		(1,076,658		)	—
Total liabilities	15,094			941,866		1,139,721		207,628		(1,078,775		)	1,225,534

Total Sabra Health Care REIT, Inc. stockholders' equity	1,013,847			607,204		903,738		34,185		(1,545,127		)	1,013,847
Noncontrolling interests	—			—		—		40		—			40
Total equity	1,013,847			607,204		903,738		34,225		(1,545,127		)	1,013,887
Total liabilities and equity	$	1,028,941		$	1,549,070	$	2,043,459	$	241,853	$	(2,623,902	)	$	2,239,421

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2015

(in thousands)



	Parent Company		Issuers		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Elimination			Consolidated
Assets
Real estate investments, net of accumulated depreciation	$	48	$	—	$	1,816,813	$	222,755	$	—		$	2,039,616
Loans receivable and other investments, net	—		—		302,282		—		(2,105		)	300,177
Cash and cash equivalents	2,548		—		1,008		3,878		—			7,434
Restricted cash	—		—		1,618		8,195		—			9,813
Prepaid expenses, deferred financing costs and other assets, net	2,047		13,384		89,590		9,522		(2,746		)	111,797
Intercompany	489,763		918,209		—		—		(1,407,972		)	—
Investment in subsidiaries	568,841		792,065		55,439		—		(1,416,345		)	—
Total assets	$	1,063,247	$	1,723,658	$	2,266,750	$	244,350	$	(2,829,168	)	$	2,468,837

Liabilities
Mortgage notes, net	$	—	$	—	$	—	$	174,846	$	—		$	174,846
Revolving credit facility	—		255,000		—		—		—			255,000
Term loans, net	—		200,000		64,229		—		—			264,229
Senior unsecured notes, net	—		685,704		—		—		—			685,704
Accounts payable and accrued liabilities	9,477		14,113		11,254		2,084		(1,746		)	35,182
Intercompany	—		—		1,391,115		16,857		(1,407,972		)	—
Total liabilities	9,477		1,154,817		1,466,598		193,787		(1,409,718		)	1,414,961

Total Sabra Health Care REIT, Inc. stockholders' equity	1,053,770		568,841		800,152		50,457		(1,419,450		)	1,053,770
Noncontrolling interests	—		—		—		106		—			106
Total equity	1,053,770		568,841		800,152		50,563		(1,419,450		)	1,053,876
Total liabilities and equity	$	1,063,247	$	1,723,658	$	2,266,750	$	244,350	$	(2,829,168	)	$	2,468,837

Schedule of Condensed Consolidating Statement of Income (unaudited)

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Three Months Ended September 30, 2016

(dollars in thousands, except per share amounts)

(unaudited)



	Parent Company			Issuers		Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—		$	—	$	50,346		$	6,726	$	(239	)	$	56,833
Interest and other income	1			—		3,224			—		(68		)	3,157
Resident fees and services	—			—		1,411			526		—			1,937
Total revenues	1			—		54,981			7,252		(307		)	61,927
Expenses:
Depreciation and amortization	211			—		14,838			2,053		—			17,102
Interest	—			13,215		778			1,801		—			15,794
Operating expenses	—			—		993			650		(239		)	1,404
General and administrative	4,528			21		1,579			43		—			6,171
Provision for (recovery of) doubtful accounts and loan losses	566			—		(26		)	—		—			540
Total expenses	5,305			13,236		18,162			4,547		(239		)	41,011

Other income (expense):
Other income (loss)	2,636			400		(91		)	—		—			2,945
Net loss on sales of real estate	—			—		1,451			—		—			1,451

Total other income (expense)	2,636			400		1,360			—		—			4,396

Income in subsidiary	28,073			40,909		2,742			—		(71,724		)	—

Net income	25,405			28,073		40,921			2,705		(71,792		)	25,312

Net loss attributable to noncontrolling interests	—			—		—			25		—			25

Net income attributable to Sabra Health Care REIT, Inc.	25,405			28,073		40,921			2,730		(71,792		)	25,337

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

Net income attributable to common stockholders	$	22,844		$	28,073	$	40,921		$	2,730	$	(71,792	)	$	22,776

Net loss attributable to common stockholders, per:
Basic common share														$	0.35
Diluted common share														$	0.35
Weighted-average number of common shares outstanding, basic														65,312,288
Weighted-average number of common shares outstanding, diluted														65,591,428

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Three Months Ended September 30, 2015

(dollars in thousands, except per share amounts)

(unaudited)



	Parent Company			Issuers		Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—		$	—	$	47,760		$	5,413	$	—		$	53,173
Interest and other income	—			129		6,211			—		(129		)	6,211
Resident fees and services	—			—		—			550		—			550
Total revenues	—			129		53,971			5,963		(129		)	59,934
Expenses:
Depreciation and amortization	14			—		14,674			1,618		—			16,306
Interest	—			13,211		676			1,418		(129		)	15,176
Operating expenses	—			—		—			444		—			444
General and administrative	2,759			18		731			39		—			3,547
Provision for doubtful accounts	113			—		2,376			—		—			2,489
Total expenses	2,886			13,229		18,457			3,519		(129		)	37,962

Other income (expense):
Other income (expense)	—			502		(602		)	—		—			(100		)
Net loss on sales of real estate	—			—		(3,838		)	—		—			(3,838		)

Total other income (expense)	—			502		(4,440		)	—		—			(3,938		)

Income in subsidiary	20,947			33,545		2,282			—		(56,774		)	—

Net income	18,061			20,947		33,356			2,444		(56,774		)	18,034

Net loss attributable to noncontrolling interests	—			—		—			27		—			27

Net income attributable to Sabra Health Care REIT, Inc.	18,061			20,947		33,356			2,471		(56,774		)	18,061

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

Net income attributable to common stockholders	$	15,500		$	20,947	$	33,356		$	2,471	$	(56,774	)	$	15,500

Net income attributable to common stockholders, per:
Basic common share														$	0.24
Diluted common share														$	0.24
Weighted-average number of common shares outstanding, basic														65,160,290
Weighted-average number of common shares outstanding, diluted														65,398,175

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Nine Months Ended September 30, 2016

(dollars in thousands, except per share amounts)

(unaudited)



	Parent Company			Issuers			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Elimination			Consolidated
Revenues:
Rental income	$	—		$	—		$	147,989		$	20,169		$	(716	)	$	167,442
Interest and other income	3			—			25,711			(25		)	(207		)	25,482
Resident fees and services	—			—			4,169			1,642			—			5,811
Total revenues	3			—			177,869			21,786			(923		)	198,735
Expenses:
Depreciation and amortization	595			—			44,485			6,193			—			51,273
Interest	—			41,238			2,372			5,529			—			49,139
Operating expenses	—			—			2,977			2,006			(727		)	4,256
General and administrative	12,715			43			2,607			156			—			15,521
(Recovery of) provision for doubtful accounts and loan losses	(89		)	—			3,375			—			—			3,286
Impairment of real estate	—			—			29,811			—			—			29,811
Total expenses	13,221			41,281			85,627			13,884			(727		)	153,286

Other income (expense):
Loss on extinguishment of debt	—			(468		)	(88		)	—			—			(556		)
Other income (expense)	4,732			916			(230		)	(73		)	—			5,345
Net loss on sales of real estate	—			—			(3,203		)	—			—			(3,203		)

Total other income (expense)	4,732			448			(3,521		)	(73		)	—			1,586

Income in subsidiary	55,783			96,616			8,046			—			(160,445		)	—

Net income	47,297			55,783			96,767			7,829			(160,641		)	47,035

Net loss attributable to noncontrolling interests	—			—			—			66			—			66

Net income attributable to Sabra Health Care REIT, Inc.	47,297			55,783			96,767			7,895			(160,641		)	47,101

Preferred stock dividends	(7,682		)	—			—			—			—			(7,682		)

Net income attributable to common stockholders	$	39,615		$	55,783		$	96,767		$	7,895		$	(160,641	)	$	39,419

Net income attributable to common stockholders, per:
Basic common share																$	0.60
Diluted common share																$	0.60
Weighted-average number of common shares outstanding, basic																65,285,591
Weighted-average number of common shares outstanding, diluted																65,470,589

CONDENSED CONSOLIDATING STATEMENT OF INCOME

For the Nine Months Ended September 30, 2015

(dollars in thousands, except per share amounts)

(unaudited)



	Parent Company			Issuers		Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries		Elimination			Consolidated
Revenues:
Rental income	$	—		$	—	$	137,249		$	15,325	$	—		$	152,574
Interest and other income	1			226		17,521			—		(154		)	17,594
Resident fees and services	—			—		—			1,924		—			1,924
Total revenues	1			226		154,770			17,249		(154		)	172,092
Expenses:
Depreciation and amortization	41			—		40,357			4,555		—			44,953
Interest	—			38,427		836			3,999		(154		)	43,108
Operating expenses	—			—		—			1,442		—			1,442
General and administrative	12,251			21		6,858			140		—			19,270
Provision for doubtful accounts and write-offs	(488		)	—		7,093			—		—			6,605
Total expenses	11,804			38,448		55,144			10,136		(154		)	115,378

Other income (expense):
Other income (expense)	—			1,671		(1,971		)	—		—			(300		)
Net loss on sales of real estate	—			—		(2,115		)	—		—			(2,115		)

Total other income (expense)	—			1,671		(4,086		)	—		—			(2,415		)

Income in subsidiary	66,149			102,700		6,697			—		(175,546		)	—

Net income	54,346			66,149		102,237			7,113		(175,546		)	54,299

Net loss attributable to noncontrolling interests	—			—		—			47		—			47

Net income attributable to Sabra Health Care REIT, Inc.	54,346			66,149		102,237			7,160		(175,546		)	54,346

Preferred stock dividends	(7,682		)	—		—			—		—			(7,682		)

Net income attributable to common stockholders	$	46,664		$	66,149	$	102,237		$	7,160	$	(175,546	)	$	46,664

Net income attributable to common stockholders, per:
Basic common share														$	0.76
Diluted common share														$	0.76
Weighted-average number of common shares outstanding, basic														61,244,991
Weighted-average number of common shares outstanding, diluted														61,468,603

Schedule of Condensed Consolidating Statement of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Three Months Ended September 30, 2016

(dollars in thousands, except per share amounts)

(unaudited)



	Parent Company		Issuers		Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Elimination			Consolidated

Net income	$	25,405	$	28,073	$	40,921		$	2,705		$	(71,792	)	$	25,312
Other comprehensive income (loss):
Foreign currency translation	—		153		(514		)	(139		)	—			(500		)
Unrealized loss on cash flow hedge	—		398		—			—			—			398

Total other comprehensive income(loss)	—		551		(514		)	(139		)	—			(102		)

Comprehensive income	25,405		28,624		40,407			2,566			(71,792		)	25,210

Comprehensive loss attributable to noncontrolling interest	—		—		—			25			—			25

Comprehensive income attributable to Sabra Health Care REIT, Inc.	$	25,405	$	28,624	$	40,407		$	2,591		$	(71,792	)	$	25,235

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Three Months Ended September 30, 2015

(dollars in thousands, except per share amounts)

(unaudited)



	Parent Company		Issuers			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Elimination			Consolidated

Net income	$	18,061	$	20,947		$	33,356		$	2,444		$	(56,774	)	$	18,034
Other comprehensive income (loss):
Foreign currency translation	—		4,609			(2,765		)	(874		)	—			970
Unrealized loss on cash flow hedge	—		(1,781		)	—			—			—			(1,781		)

Total other comprehensive income (loss)	—		2,828			(2,765		)	(874		)	—			(811		)

Comprehensive income	18,061		23,775			30,591			1,570			(56,774		)	17,223

Comprehensive loss attributable to noncontrolling interest	—		—			—			27			—			27

Comprehensive income attributable to Sabra Health Care REIT, Inc.	$	18,061	$	23,775		$	30,591		$	1,597		$	(56,774	)	$	17,250

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Nine Months Ended September 30, 2016

(dollars in thousands, except per share amounts)

(unaudited)



	Parent Company		Issuers			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Elimination			Consolidated

Net income	$	47,297	$	55,783		$	96,767	$	7,829	$	(160,641	)	$	47,035
Other comprehensive (loss) income:
Foreign currency translation	—		(2,204		)	1,148		307		—			(749		)
Unrealized loss on cash flow hedge	—		(1,300		)	—		—		—			(1,300		)

Total other comprehensive (loss) income	—		(3,504		)	1,148		307		—			(2,049		)

Comprehensive income	47,297		52,279			97,915		8,136		(160,641		)	44,986

Comprehensive loss attributable to noncontrolling interest	—		—			—		66		—			66

Comprehensive income attributable to Sabra Health Care REIT, Inc.	$	47,297	$	52,279		$	97,915	$	8,202	$	(160,641	)	$	45,052

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Nine Months Ended September 30, 2015

(dollars in thousands, except per share amounts)

(unaudited)



	Parent Company		Issuers			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Elimination			Consolidated

Net income	$	54,346	$	66,149		$	102,237		$	7,113		$	(175,546	)	$	54,299
Other comprehensive (loss) income:
Foreign currency translation	—		4,445			(3,091		)	(979		)	—			375
Unrealized loss on cash flow hedge	—		(4,470		)	—			—			—			(4,470		)

Total other comprehensive loss	—		(25		)	(3,091		)	(979		)	—			(4,095		)

Comprehensive income	54,346		66,124			99,146			6,134			(175,546		)	50,204

Comprehensive loss attributable to noncontrolling interest	—		—			—			47			—			47

Comprehensive income attributable to Sabra Health Care REIT, Inc.	$	54,346	$	66,124		$	99,146		$	6,181		$	(175,546	)	$	50,251

Schedule of Condensed Consolidating Statement of Cash Flows (unaudited)

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended September 30, 2016

(in thousands)

(unaudited)



	Parent Company			Issuers			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Elimination			Consolidated
Net cash provided by operating activities	$	113,886		$	—		$	555		$	19,375		$	—		$	133,816
Cash flows from investing activities:
Acquisitions of real estate	—			—			(109,619		)	—			—			(109,619		)
Origination and fundings of loans receivable	—			—			(9,478		)	—			—			(9,478		)
Origination and fundings of preferred equity investments	—			—			(6,845		)	—			—			(6,845		)
Additions to real estate	(124		)	—			(400		)	(377		)	—			(901		)
Repayment of loans receivable	—			—			214,947			—			—			214,947
Investment in subsidiary	(200		)	(200		)	—			—			400			—
Net proceeds from the sale of real estate	—			—			85,449			—			—			85,449
Distribution from subsidiary	6,404			6,404			—			—			(12,808		)	—
Intercompany financing	(17,684		)	197,638			—			—			(179,954		)	—
Net cash (used in) provided by investing activities	(11,604		)	203,842			174,054			(377		)	(192,362		)	173,553
Cash flows from financing activities:
Net repayments from revolving credit facility	—			(255,000		)	—			—			—			(255,000		)
Proceeds from term loan	—			45,000			24,360			—			—			69,360
Principal payments on mortgage notes	—			—			—			(13,756		)	—			(13,756		)
Payments of deferred financing costs	—			(5,322		)	(611		)	—			—			(5,933		)
Issuance of common stock	(1,289		)	—			—			—			—			(1,289		)
Dividends paid on common and preferred stock	(89,283		)	—			—			—			—			(89,283		)
Contribution from parent	—			200			—			200			(400		)	—
Distribution to parent	—			(6,404		)	—			(6,404		)	12,808			—
Intercompany financing	—			17,684			(197,638		)	—			179,954			—
Net cash used in financing activities	(90,572		)	(203,842		)	(173,889		)	(19,960		)	192,362			(295,901		)
Net increase (decrease) in cash and cash equivalents	11,710			—			720			(962		)	—			11,468
Effect of foreign currency translation on cash and cash equivalents	—			—			759			13			—			772
Cash and cash equivalents, beginning of period	2,548			—			1,008			3,878			—			7,434
Cash and cash equivalents, end of period	$	14,258		$	—		$	2,487		$	2,929		$	—		$	19,674

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended September 30, 2015

(in thousands)

(unaudited)



	Parent Company			Issuers			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Elimination			Consolidated
Net cash provided by operating activities	$	74,256		$	—		$	22		$	4,837		$	—		$	79,115
Cash flows from investing activities:
Acquisitions of real estate	—			—			(375,324		)	(11,248		)	—			(386,572		)
Origination and fundings of loans receivable	—			—			(26,207		)	—			—			(26,207		)
Preferred equity investments	—			—			(9,281		)	—			—			(9,281		)
Additions to real estate	(11		)	—			(1,100		)	(485		)	—			(1,596		)
DIP Financing	—			—			(3,302		)	—			—			(3,302		)
Repayment of loans receivable	—			—			3,285			—			—			3,285
Release of contingent consideration held in escrow	—			—			5,240			—			—			5,240
Investment in subsidiaries	(414		)	(414		)	—			—			828			—
Net proceeds from the sale of real estate	—			—			15,752			—			—			15,752
Distribution from subsidiaries	1,355			1,355			—			—			(2,710		)	—
Intercompany financing	(165,871		)	(301,642		)	—			—			467,513			—
Net cash used in investing activities	(164,941		)	(300,701		)	(390,937		)	(11,733		)	465,631			(402,681		)
Cash flows from financing activities:
Net repayments from revolving credit facility	—			136,000			—			—			—			136,000
Proceeds from term loan	—			—			73,242			—			—			73,242
Proceeds from mortgage notes	—			—			—			28,735			—			28,735
Principal payments on mortgage notes	—			—			—			(2,184		)	—			(2,184		)
Payments of deferred financing costs	—			(229		)	(714		)	(371		)	—			(1,314		)
Issuance of common stock	139,617			—			—			—			—			139,617
Dividends paid on common and preferred stock	(80,619		)	—			—			—			—			(80,619		)
Contribution from parent	—			414			—			414			(828		)	—
Distribution to parent	—			(1,355		)	—			(1,355		)	2,710			—
Intercompany financing	—			165,871			318,618			(16,976		)	(467,513		)	—
Net cash provided by financing activities	58,998			300,701			391,146			8,263			(465,631		)	293,477
Net (decrease) increase in cash and cash equivalents	(31,687		)	—			231			1,367			—			(30,089		)
Effect of foreign currency translation on cash and cash equivalents	(203		)	—			(20		)	(8		)	—			(231		)
Cash and cash equivalents, beginning of period	58,799			—			—			2,994			—			61,793
Cash and cash equivalents, end of period	$	26,909		$	—		$	211		$	4,353		$	—		$	31,473