Document

Reconciliations of Non-GAAP Financial Measures

March 31, 2025

(Unaudited)

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 March 31,
	2025		2024
Net income	$	40,304	$	26,254
Add:
Depreciation and amortization of real estate assets	43,494		42,914

Depreciation and amortization of real estate assets related to unconsolidated joint ventures	2,180		2,229


Impairment of real estate	—		3,137

FFO	$	85,978	$	74,534

Write-offs of cash and straight-line rental income receivable and lease intangibles	(566)		2,921


Recovery of loan losses	(173)		(137)


Other normalizing items (1)	2		1,121
Normalized FFO	$	85,241	$	78,439
FFO	$	85,978	$	74,534
Stock-based compensation expense	2,711		2,521
Non-cash rental and related revenues	(2,428)		591

Non-cash interest expense	1,729		3,071

Recovery of loan losses	(173)		(137)


Other adjustments related to unconsolidated joint ventures	(109)		153
Other adjustments	446		417
AFFO	$	88,154	$	81,150




Other normalizing items (1)	84		1,106
Normalized AFFO	$	88,238	$	82,256
Amounts per diluted common share:
Net income	$	0.17	$	0.11
FFO	$	0.36	$	0.32
Normalized FFO	$	0.35	$	0.34
AFFO	$	0.37	$	0.35
Normalized AFFO	$	0.37	$	0.35
Weighted average number of common shares outstanding, diluted:
Net income, FFO and Normalized FFO	240,295,817		233,365,031

AFFO and Normalized AFFO	241,513,735		234,671,379

(1) Other normalizing items for FFO and AFFO primarily include triple-net operating expenses, net of recoveries.

See reporting definitions. 2

SABRA HEALTH CARE REIT, INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

EBITDA, Adjusted EBITDA, Adjusted EBITDA, as adjusted and Annualized Adjusted EBITDA, as adjusted

Net Debt and Net Debt to Adjusted EBITDA

(in thousands)


	Three Months Ended
	March 31, 2025


Net income	$	40,304
Interest	27,100
Income tax expense	413
Depreciation and amortization	43,494
EBITDA	$	111,311
Income from unconsolidated joint ventures	(218)

Distributions from unconsolidated joint ventures	2,388
Stock-based compensation expense	2,711
Acquisition and transaction costs	573

Non-cash revenue write-offs and recovery of loan losses	(738)


Other income	(193)


Adjusted EBITDA (1)	$	115,834
Adjustments for current period activity (2)	(736)
Adjusted EBITDA, as adjusted	$	115,098

Adjusted EBITDA, as adjusted, annualized	$	460,392








	March 31, 2025
Secured debt	$	45,593
Revolving credit facility	82,684
Term loans	534,505
Senior unsecured notes	1,750,000
Consolidated Debt	2,412,782
Cash and cash equivalents	(22,653)
Net Debt	$	2,390,129



	March 31, 2025
Net Debt	$	2,390,129
Annualized Adjusted EBITDA, as adjusted	$	460,392
Net Debt to Adjusted EBITDA	5.19x

(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) Adjustments for current period activity give effect to the acquisitions and dispositions completed during the period as though such acquisitions and dispositions were completed as of the beginning of the period and adjust for certain income and expense items that the Company does not believe are indicative of its operating results for the current period.

See reporting definitions. 3

SABRA HEALTH CARE REIT, INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

Consolidated Statements of Income

Supplemental Information

(in thousands)


	Three Months Ended March 31,
	2025		2024
Cash rental income	$	90,071	$	89,036
Straight-line rental income	723		1,119
Write-offs of cash and straight-line rental income receivable and lease intangibles	566		(2,921)
Above/below market lease amortization	1,139		1,211
Operating expense recoveries	3,538		3,331
Rental and related revenues	$	96,037	$	91,776

See reporting definitions. 4

SABRA HEALTH CARE REIT, INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

Senior Housing - Managed Revenues and Cash NOI

(in thousands)


	Three Months Ended
	March 31, 2024		June 30, 2024		September 30, 2024		December 31, 2024		March 31, 2025
Revenues:
Resident fees and services	$	66,031	$	67,939	$	73,746	$	76,865	$	77,447
Income (loss) from unconsolidated joint ventures:
Resident fees and services	10,362		10,453		10,772		10,646		10,192
Resident fees and services not included in same store (1)	(12,002)		(12,807)		(17,591)		(19,353)		(19,212)
Same store resident fees and services	$	64,391	$	65,585	$	66,927	$	68,158	$	68,427


Net income	$	26,254	$	23,975	$	29,788	$	46,695	$	40,304
Adjustments:
Net income not related to Senior Housing - Managed	(21,673)		(17,589)		(22,789)		(36,888)		(32,747)
Depreciation and amortization	12,084		11,278		12,727		12,538		13,654
Other income	(898)		—		—		(1,334)		—

Loss (income) from unconsolidated joint ventures	595		(80)		(214)		96		(218)
Sabra's share of unconsolidated joint ventures' Net Operating Income	2,690		3,236		3,408		3,131		3,202
Net Operating Income	$	19,052	$	20,820	$	22,920	$	24,238	$	24,195
Non-cash revenue adjustments	—		—		—		(90)		(137)
Cash Net Operating Income	$	19,052	$	20,820	$	22,920	$	24,148	$	24,058
Cash Net Operating Income not included in same store (1)	(1,376)		(1,229)		(2,803)		(3,510)		(3,390)
Same store Cash Net Operating Income	$	17,676	$	19,591	$	20,117	$	20,638	$	20,668

(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.

See reporting definitions. 5

SABRA HEALTH CARE REIT, INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

Cash NOI, Annualized Cash NOI and Annualized Cash NOI, as adjusted by Property Type

(in thousands)


	Three Months Ended March 31, 2025
	Skilled Nursing/ Transitional Care		Senior Housing								Behavioral Health		Specialty Hospitals and Other
			Senior Housing - Leased		Senior Housing - Managed Consolidated		Senior Housing - Managed Unconsolidated		Total Senior Housing						Other		Corporate		Total
Net income (loss)	$	44,156	$	7,753	$	7,339	$	218	$	15,310	$	7,169	$	3,331	$	10,059	$	(39,721)	$	40,304
Adjustments:
Depreciation and amortization	20,871		3,867		13,654		—		17,521		3,543		1,462		—		97		43,494
Interest	197		209		—		—		209		—		—		—		26,694		27,100
General and administrative	—		—		—		—		—		—		—		—		12,728		12,728
Recovery of loan losses	—		—		—		—		—		—		—		—		(173)		(173)


Other income	—		—		—		—		—		—		—		—		(38)		(38)

Income from unconsolidated joint ventures	—		—		—		(218)		(218)		—		—		—		—		(218)
Income tax expense	—		—		—		—		—		—		—		—		413		413
Sabra’s share of unconsolidated joint ventures’ Net Operating Income	—		—		—		3,202		3,202		—		—		—		—		3,202
Net Operating Income	$	65,224	$	11,829	$	20,993	$	3,202	$	36,024	$	10,712	$	4,793	$	10,059	$	—	$	126,812
Non-cash revenue and expense adjustments	(1,492)		(812)		—		(137)		(949)		(151)		32		4		—		(2,556)
Cash Net Operating Income	$	63,732	$	11,017	$	20,993	$	3,065	$	35,075	$	10,561	$	4,825	$	10,063	$	—	$	124,256




Annualizing adjustments (1)	188,449		34,429		62,978		9,196		106,603		31,282		14,486		26,783		—		367,603
Annualized Cash Net Operating Income	$	252,181	$	45,446	$	83,971	$	12,261	$	141,678	$	41,843	$	19,311	$	36,846	$	—	$	491,859
Reallocation adjustments (2)	1,772		6,611		—		—		6,611		24,426		—		(32,809)		—		—
Annualized Cash Net Operating Income, as adjusted	$	253,953	$	52,057	$	83,971	$	12,261	$	148,289	$	66,269	$	19,311	$	4,037	$	—	$	491,859

(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.

See reporting definitions. 6

SABRA HEALTH CARE REIT, INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

Annualized Cash NOI by Payor Source

(in thousands)


	Three Months Ended March 31, 2025
	Private Payors		Non-Private Payors		Other		Corporate		Total
Net income (loss)	$	26,098	$	43,868	$	10,059	$	(39,721)	$	40,304
Adjustments:
Depreciation and amortization	22,922		20,475		—		97		43,494
Interest	213		193		—		26,694		27,100
General and administrative	—		—		—		12,728		12,728
Recovery of loan losses	—		—		—		(173)		(173)


Other income	—		—		—		(38)		(38)

Income from unconsolidated joint ventures	(218)		—		—		—		(218)
Income tax expense	—		—		—		413		413
Sabra’s share of unconsolidated joint ventures’ Net Operating Income	3,202		—		—		—		3,202
Net Operating Income	$	52,217	$	64,536	$	10,059	$	—	$	126,812
Non-cash revenue and expense adjustments	(1,207)		(1,353)		4		—		(2,556)
Cash Net Operating Income	$	51,010	$	63,183	$	10,063	$	—	$	124,256




Annualizing adjustments (1)	155,020		185,800		26,783		—		367,603
Annualized Cash Net Operating Income	$	206,030	$	248,983	$	36,846	$	—	$	491,859

See reporting definitions. 7

SABRA HEALTH CARE REIT, INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

Annualized Cash NOI by Relationship

(in thousands)


	Three Months Ended March 31, 2025
	Ensign Group		Signature Healthcare		Avamere Family of Companies		Signature Behavioral		Recovery Centers of America		The McGuire Group		All Other Relationships		Corporate		Total
Net income (loss)	$	7,072	$	7,250	$	6,962	$	6,081	$	6,352	$	3,594	$	42,714	$	(39,721)	$	40,304
Adjustments:
Depreciation and amortization	3,247		3,012		2,828		2,239		541		1,782		29,748		97		43,494
Interest	—		—		—		—		—		—		406		26,694		27,100
General and administrative	—		—		—		—		—		—		—		12,728		12,728
Recovery of loan losses	—		—		—		—		—		—		—		(173)		(173)


Other income	—		—		—		—		—		—		—		(38)		(38)

Income from unconsolidated joint ventures	—		—		—		—		—		—		(218)		—		(218)
Income tax expense	—		—		—		—		—		—		—		413		413
Sabra’s share of unconsolidated joint ventures’ Net Operating Income	—		—		—		—		—		—		3,202		—		3,202
Net Operating Income	$	10,319	$	10,262	$	9,790	$	8,320	$	6,893	$	5,376	$	75,852	$	—	$	126,812
Non-cash revenue and expense adjustments	15		4		—		(95)		(27)		(902)		(1,551)		—		(2,556)
Cash Net Operating Income	$	10,334	$	10,266	$	9,790	$	8,225	$	6,866	$	4,474	$	74,301	$	—	$	124,256




Annualizing adjustments (1)	31,262		30,167		30,574		24,675		20,599		13,535		216,791		—		367,603
Annualized Cash Net Operating Income	$	41,596	$	40,433	$	40,364	$	32,900	$	27,465	$	18,009	$	291,092	$	—	$	491,859

See reporting definitions. 8

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 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 (recovery of) 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 noncapitalizable acquisition costs, transaction costs related to operator transitions and organizational or other restructuring activities, 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.

See reporting definitions. 9

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.

See reporting definitions. 10