00014922982020FYFALSEsbra:ResidentFeesAndServicesMembersbra:ResidentFeesAndServicesMembersbra:ResidentFeesAndServicesMemberus-gaap:AccountingStandardsUpdate201712Memberus-gaap:AccountingStandardsUpdate201602Memberus-gaap:AccountingStandardsUpdate201613MemberP5YP5YP3YP3Y00014922982020-01-012020-12-31iso4217:USD00014922982020-06-30xbrli:shares00014922982021-02-1700014922982020-12-3100014922982019-12-31iso4217:USDxbrli:shares00014922982019-01-012019-12-3100014922982018-01-012018-12-310001492298sbra:TripleNetPortfolioMember2020-01-012020-12-310001492298sbra:TripleNetPortfolioMember2019-01-012019-12-310001492298sbra:TripleNetPortfolioMember2018-01-012018-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMember2019-01-012019-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMember2018-01-012018-12-310001492298us-gaap:PreferredStockMember2017-12-310001492298us-gaap:CommonStockMember2017-12-310001492298us-gaap:AdditionalPaidInCapitalMember2017-12-310001492298us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2017-12-310001492298us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-12-310001492298us-gaap:ParentMember2017-12-310001492298us-gaap:NoncontrollingInterestMember2017-12-3100014922982017-12-3100014922982017-01-012017-12-310001492298us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2017-12-310001492298us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2017-12-310001492298srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2017-12-310001492298us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2018-01-012018-12-310001492298us-gaap:ParentMember2018-01-012018-12-310001492298us-gaap:NoncontrollingInterestMember2018-01-012018-12-310001492298us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-12-310001492298us-gaap:AdditionalPaidInCapitalMember2018-01-012018-12-310001492298us-gaap:PreferredStockMember2018-01-012018-12-310001492298us-gaap:CommonStockMember2018-01-012018-12-310001492298us-gaap:PreferredStockMember2018-12-310001492298us-gaap:CommonStockMember2018-12-310001492298us-gaap:AdditionalPaidInCapitalMember2018-12-310001492298us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2018-12-310001492298us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001492298us-gaap:ParentMember2018-12-310001492298us-gaap:NoncontrollingInterestMember2018-12-3100014922982018-12-310001492298us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310001492298us-gaap:ParentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310001492298srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310001492298us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2019-01-012019-12-310001492298us-gaap:ParentMember2019-01-012019-12-310001492298us-gaap:NoncontrollingInterestMember2019-01-012019-12-310001492298us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-12-310001492298us-gaap:AdditionalPaidInCapitalMember2019-01-012019-12-310001492298us-gaap:CommonStockMember2019-01-012019-12-310001492298us-gaap:PreferredStockMember2019-12-310001492298us-gaap:CommonStockMember2019-12-310001492298us-gaap:AdditionalPaidInCapitalMember2019-12-310001492298us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2019-12-310001492298us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001492298us-gaap:ParentMember2019-12-310001492298us-gaap:NoncontrollingInterestMember2019-12-310001492298us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001492298us-gaap:ParentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001492298srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001492298us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2020-01-012020-12-310001492298us-gaap:ParentMember2020-01-012020-12-310001492298us-gaap:NoncontrollingInterestMember2020-01-012020-12-310001492298us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-12-310001492298us-gaap:AdditionalPaidInCapitalMember2020-01-012020-12-310001492298us-gaap:CommonStockMember2020-01-012020-12-310001492298us-gaap:PreferredStockMember2020-12-310001492298us-gaap:CommonStockMember2020-12-310001492298us-gaap:AdditionalPaidInCapitalMember2020-12-310001492298us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2020-12-310001492298us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001492298us-gaap:ParentMember2020-12-310001492298us-gaap:NoncontrollingInterestMember2020-12-31xbrli:pure0001492298sbra:EnlivantJointVentureMember2020-12-31sbra:variableInterestEntity0001492298us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-12-31sbra:Investment0001492298srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMembersbra:CorrectionOfDepreciationAndAmortizationExpenseErrorsMember2019-01-012019-12-310001492298srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMembersbra:CorrectionOfDepreciationAndAmortizationExpenseErrorsMember2018-01-012018-12-310001492298srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMembersbra:CorrectionOfDepreciationAndAmortizationExpenseErrorsMember2020-01-012020-12-310001492298us-gaap:LandImprovementsMembersrt:MinimumMember2020-01-012020-12-310001492298us-gaap:LandImprovementsMembersrt:MaximumMember2020-01-012020-12-310001492298us-gaap:BuildingAndBuildingImprovementsMembersrt:MinimumMember2020-01-012020-12-310001492298us-gaap:BuildingAndBuildingImprovementsMembersrt:MaximumMember2020-01-012020-12-310001492298sbra:FurnitureAndEquipmentMembersrt:MinimumMember2020-01-012020-12-310001492298sbra:FurnitureAndEquipmentMembersrt:MaximumMember2020-01-012020-12-310001492298sbra:RevenueFromContractWithCustomerExcludingAssessedTaxMember2020-01-012020-12-310001492298sbra:IncomeLossFromEquityMethodInvestmentsMember2020-01-012020-12-310001492298sbra:CashObligationsMember2020-12-310001492298sbra:CashObligationsMember2019-12-31sbra:Segment0001492298srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-01-010001492298us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-01-010001492298srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-01-010001492298us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-01-01sbra:property0001492298us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMembersbra:SeniorHousingFacilitiesLeasedMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMemberus-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesMemberus-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2020-01-012020-12-31sbra:Property0001492298us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMembersbra:SeniorHousingFacilitiesLeasedMember2019-01-012019-12-310001492298sbra:SpecialtyHospitalsAndOtherMemberus-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2019-01-012019-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMemberus-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2019-01-012019-12-310001492298us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2020-12-310001492298us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2019-12-310001492298sbra:TenantOriginationAndAbsorptionCostsMemberus-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2020-12-310001492298sbra:TenantOriginationAndAbsorptionCostsMemberus-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2019-12-310001492298us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMembersbra:TenantRelationshipMember2020-12-310001492298us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMembersbra:TenantRelationshipMember2019-12-310001492298sbra:TenantOriginationAndAbsorptionCostsMemberus-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2020-01-012020-12-310001492298us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMembersbra:TenantRelationshipMember2020-01-012020-12-310001492298sbra:TenantOriginationAndAbsorptionCostsMemberus-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2019-01-012019-12-310001492298us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMembersbra:TenantRelationshipMember2019-01-012019-12-310001492298us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2020-01-012020-12-310001492298us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2019-01-012019-12-31sbra:facility0001492298us-gaap:OperatingSegmentsMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-31sbra:Bed0001492298sbra:SeniorHousingFacilitiesLeasedMemberus-gaap:OperatingSegmentsMember2020-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMemberus-gaap:OperatingSegmentsMember2020-12-310001492298sbra:SpecialtyHospitalsAndOtherMemberus-gaap:OperatingSegmentsMember2020-12-310001492298us-gaap:OperatingSegmentsMember2020-12-310001492298us-gaap:CorporateMember2020-12-310001492298us-gaap:OperatingSegmentsMembersbra:SkilledNursingTransitionalCareFacilitiesMember2019-12-310001492298sbra:SeniorHousingFacilitiesLeasedMemberus-gaap:OperatingSegmentsMember2019-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMemberus-gaap:OperatingSegmentsMember2019-12-310001492298sbra:SpecialtyHospitalsAndOtherMemberus-gaap:OperatingSegmentsMember2019-12-310001492298us-gaap:OperatingSegmentsMember2019-12-310001492298us-gaap:CorporateMember2019-12-310001492298srt:MinimumMember2020-12-310001492298srt:MaximumMember2020-12-310001492298sbra:AncillaryServicesMember2020-01-012020-12-310001492298sbra:AncillaryServicesMember2019-01-012019-12-310001492298sbra:AncillaryServicesMember2018-01-012018-12-310001492298sbra:EnlivantJointVentureMembersbra:SeniorHousingFacilitiesMember2020-01-012020-12-310001492298sbra:EnlivantJointVentureMembersbra:SeniorHousingFacilitiesMember2020-01-012020-12-310001492298sbra:EnlivantJointVentureMembersbra:SeniorHousingFacilitiesMember2019-01-012019-12-310001492298sbra:EnlivantJointVentureMembersbra:SeniorHousingFacilitiesMember2020-12-310001492298sbra:EnlivantJointVentureMember2020-12-310001492298sbra:EnlivantJointVentureMember2019-12-310001492298sbra:EnlivantJointVentureMember2020-01-012020-12-310001492298sbra:EnlivantJointVentureMember2019-01-012019-12-310001492298sbra:EnlivantJointVentureMember2018-01-012018-12-310001492298sbra:EnlivantJointVentureMember2020-01-012020-12-310001492298sbra:EnlivantJointVentureMember2019-01-012019-12-310001492298sbra:EnlivantJointVentureMember2018-01-012018-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMember2019-01-012019-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMember2018-01-012018-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SalesTypeLeaseMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-01-010001492298sbra:SeniorHousingFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:A2020DispositionsMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:A2020DispositionsMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:A2020DispositionsMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2019-01-012019-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:A2020DispositionsMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2018-01-012018-12-310001492298sbra:SeniorCareCentersFacilitiesMember2019-01-012019-12-310001492298sbra:SeniorCareCentersFacilitiesSubsequentlySoldMember2019-01-012019-12-310001492298sbra:SeniorCareCentersFacilitiesRetainedMember2019-01-012019-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesAndSeniorHousingFacilitiesMember2019-01-012019-12-310001492298sbra:SeniorHousingFacilitiesMember2019-01-012019-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:A2019DispositionsMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2019-01-012019-12-310001492298sbra:A2019DispositionsMembersbra:SeniorHousingFacilitiesMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2019-01-012019-12-310001492298sbra:A2019DispositionsMembersbra:SkilledNursingTransitionalCareFacilitiesAndSeniorHousingFacilitiesMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2019-12-310001492298sbra:A2019DispositionsMembersbra:SkilledNursingTransitionalCareFacilitiesAndSeniorHousingFacilitiesMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2019-01-012019-12-310001492298sbra:A2019DispositionsMembersbra:SkilledNursingTransitionalCareFacilitiesAndSeniorHousingFacilitiesMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2018-01-012018-12-310001492298sbra:SeniorHousingFacilitiesMember2018-01-012018-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:A2018DispositionsMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2018-01-012018-12-310001492298sbra:A2018DispositionsMembersbra:SeniorHousingFacilitiesMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2018-01-012018-12-310001492298sbra:A2018DispositionsMembersbra:SeniorHousingFacilitiesManagedPortfolioMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2018-01-012018-12-310001492298sbra:A2018DispositionsMembersbra:SkilledNursingTransitionalCareFacilitiesSeniorHousingFacilitiesAndSeniorHousingManagedPortfolioMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2018-12-310001492298sbra:A2018DispositionsMembersbra:SkilledNursingTransitionalCareFacilitiesSeniorHousingFacilitiesAndSeniorHousingManagedPortfolioMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2018-01-012018-12-310001492298us-gaap:AboveMarketLeasesMember2020-12-310001492298us-gaap:AboveMarketLeasesMember2019-12-310001492298sbra:TenantOriginationAndAbsorptionCostsMember2020-12-310001492298sbra:TenantOriginationAndAbsorptionCostsMember2019-12-310001492298sbra:TenantRelationshipMember2020-12-310001492298sbra:TenantRelationshipMember2019-12-310001492298sbra:RentalIncomeMember2020-01-012020-12-310001492298sbra:RentalIncomeMember2019-01-012019-12-310001492298sbra:RentalIncomeMember2018-01-012018-12-310001492298sbra:DepreciationandAmortizationMember2020-01-012020-12-310001492298sbra:DepreciationandAmortizationMember2019-01-012019-12-310001492298sbra:DepreciationandAmortizationMember2018-01-012018-12-310001492298sbra:LeaseIntangiblesMember2020-12-310001492298sbra:IntangibleLeaseLiabilitiesMember2020-12-310001492298srt:WeightedAverageMembersbra:LeaseIntangiblesMember2020-01-012020-12-310001492298srt:WeightedAverageMembersbra:IntangibleLeaseLiabilitiesMember2020-01-012020-12-31sbra:loan0001492298sbra:MortgageLoansReceivableMember2020-12-310001492298sbra:MortgageLoansReceivableMember2019-12-310001492298sbra:ConstructionMortgageLoansMember2020-12-310001492298sbra:ConstructionMortgageLoansMember2019-12-310001492298sbra:OtherMember2020-12-310001492298sbra:OtherMember2019-12-31sbra:preferredEquityInvestmentsbra:investment0001492298us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2020-12-310001492298us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2019-12-310001492298us-gaap:NonperformingFinancingReceivableMember2020-12-310001492298us-gaap:NonperformingFinancingReceivableMembersbra:SpecificLoansMember2019-01-012019-12-310001492298sbra:PortfolioBasedLoanReceivableMember2019-01-012019-12-310001492298us-gaap:NonperformingFinancingReceivableMembersbra:SpecificLoansMember2019-12-310001492298sbra:PortfolioBasedLoanReceivableMember2019-12-310001492298us-gaap:NonperformingFinancingReceivableMember2019-12-310001492298us-gaap:SecuredDebtMembersbra:FixedRateMortgagesMember2020-12-310001492298us-gaap:SecuredDebtMembersbra:FixedRateMortgagesMember2019-12-310001492298us-gaap:SecuredDebtMember2020-12-310001492298us-gaap:SecuredDebtMember2019-12-310001492298us-gaap:SecuredDebtMembersbra:VariableRateTermLoanMember2018-12-310001492298us-gaap:SecuredDebtMembersbra:VariableRateTermLoanMember2018-01-012018-12-310001492298us-gaap:SecuredDebtMember2018-01-012018-12-310001492298us-gaap:SeniorNotesMembersbra:A4.80SeniorUnsecuredNotesDue2024Member2019-05-290001492298us-gaap:SeniorNotesMembersbra:A4.80SeniorUnsecuredNotesDue2024Member2020-12-310001492298us-gaap:SeniorNotesMembersbra:A4.80SeniorUnsecuredNotesDue2024Member2019-12-310001492298us-gaap:SeniorNotesMembersbra:A5.125SeniorUnsecuredNotesDue2026Member2017-08-170001492298us-gaap:SeniorNotesMembersbra:A5.125SeniorUnsecuredNotesDue2026Member2020-12-310001492298us-gaap:SeniorNotesMembersbra:A5.125SeniorUnsecuredNotesDue2026Member2019-12-310001492298us-gaap:SeniorNotesMembersbra:A538SeniorUnsecuredNotesDue2027Member2017-08-170001492298us-gaap:SeniorNotesMembersbra:A538SeniorUnsecuredNotesDue2027Member2020-12-310001492298us-gaap:SeniorNotesMembersbra:A538SeniorUnsecuredNotesDue2027Member2019-12-310001492298us-gaap:SeniorNotesMembersbra:A3.90SeniorUnsecuredNotesDue2029Member2019-10-070001492298us-gaap:SeniorNotesMembersbra:A3.90SeniorUnsecuredNotesDue2029Member2020-12-310001492298us-gaap:SeniorNotesMembersbra:A3.90SeniorUnsecuredNotesDue2029Member2019-12-310001492298us-gaap:SeniorNotesMember2020-12-310001492298us-gaap:SeniorNotesMember2019-12-310001492298us-gaap:SeniorNotesMembersbra:A5.5SeniorUnsecuredNotesDue2021Member2014-01-230001492298us-gaap:SeniorNotesMembersbra:A5.5SeniorUnsecuredNotesDue2021IssuedJanuary2014Member2014-01-230001492298us-gaap:SeniorNotesMembersbra:A5.5SeniorUnsecuredNotesDue2021IssuedOctober2014Member2014-10-100001492298us-gaap:SeniorNotesMembersbra:A5.5SeniorUnsecuredNotesDue2021Member2019-06-290001492298us-gaap:SeniorNotesMembersbra:A5.5SeniorUnsecuredNotesDue2021Member2019-06-292019-06-290001492298us-gaap:SeniorNotesMembersbra:A5.5SeniorUnsecuredNotesDue2021Member2019-01-012019-12-310001492298sbra:A5.375SeniorUnsecuredNotesDue2023Memberus-gaap:SeniorNotesMember2013-05-230001492298sbra:A5.375SeniorUnsecuredNotesDue2023Memberus-gaap:SeniorNotesMember2019-10-270001492298sbra:A5.375SeniorUnsecuredNotesDue2023Memberus-gaap:SeniorNotesMember2019-10-272019-10-270001492298sbra:A5.375SeniorUnsecuredNotesDue2023Memberus-gaap:SeniorNotesMember2019-01-012019-12-310001492298us-gaap:SeniorNotesMembersbra:A4.80SeniorUnsecuredNotesDue2024Member2019-05-292019-05-290001492298us-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodOneMembersbra:A4.80SeniorUnsecuredNotesDue2024Member2019-05-292019-05-290001492298us-gaap:DebtInstrumentRedemptionPeriodTwoMemberus-gaap:SeniorNotesMembersbra:A4.80SeniorUnsecuredNotesDue2024Member2019-05-292019-05-290001492298us-gaap:SeniorNotesMembersbra:A5.125SeniorUnsecuredNotesDue2026Member2017-08-172017-08-170001492298us-gaap:SeniorNotesMembersbra:A538SeniorUnsecuredNotesDue2027Member2017-08-172017-08-170001492298us-gaap:SeniorNotesMembersbra:A3.90SeniorUnsecuredNotesDue2029Member2019-10-072019-10-070001492298us-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodOneMembersbra:A3.90SeniorUnsecuredNotesDue2029Member2019-10-072019-10-070001492298us-gaap:DebtInstrumentRedemptionPeriodTwoMemberus-gaap:SeniorNotesMembersbra:A3.90SeniorUnsecuredNotesDue2029Member2019-10-072019-10-070001492298sbra:A4.80SeniorUnsecuredNotesDue2024Member2020-01-012020-12-310001492298sbra:A5.125SeniorUnsecuredNotesDue2026Member2020-01-012020-12-310001492298sbra:A3.90SeniorUnsecuredNotesDue2029Member2020-01-012020-12-310001492298sbra:FifthAmendedandRestatedCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2019-09-090001492298sbra:U.S.DollarTermLoanMembersbra:FifthAmendedandRestatedCreditAgreementMember2019-09-09iso4217:CAD0001492298sbra:FifthAmendedandRestatedCreditAgreementMembersbra:CanadianDollarTermLoanMember2019-09-090001492298us-gaap:LineOfCreditMembersbra:FifthAmendedandRestatedCreditAgreementMember2019-09-09sbra:extension_option0001492298sbra:FifthAmendedandRestatedCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2019-09-092019-09-090001492298us-gaap:DebtInstrumentRedemptionPeriodOneMembersbra:U.S.DollarTermLoanMembersbra:FifthAmendedandRestatedCreditAgreementMember2019-09-090001492298us-gaap:DebtInstrumentRedemptionPeriodTwoMembersbra:U.S.DollarTermLoanMembersbra:FifthAmendedandRestatedCreditAgreementMember2019-09-090001492298sbra:FifthAmendedandRestatedCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2020-12-310001492298us-gaap:PrimeRateMembersbra:FifthAmendedandRestatedCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2019-09-092019-09-090001492298sbra:FifthAmendedandRestatedCreditAgreementMemberus-gaap:BaseRateMemberus-gaap:RevolvingCreditFacilityMember2019-09-092019-09-090001492298sbra:FifthAmendedandRestatedCreditAgreementMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:MinimumMemberus-gaap:RevolvingCreditFacilityMember2019-09-092019-09-090001492298srt:MaximumMembersbra:FifthAmendedandRestatedCreditAgreementMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMember2019-09-092019-09-090001492298sbra:FifthAmendedandRestatedCreditAgreementMemberus-gaap:BaseRateMembersrt:MinimumMemberus-gaap:RevolvingCreditFacilityMember2019-09-092019-09-090001492298srt:MaximumMembersbra:FifthAmendedandRestatedCreditAgreementMemberus-gaap:BaseRateMemberus-gaap:RevolvingCreditFacilityMember2019-09-092019-09-090001492298sbra:FifthAmendedandRestatedCreditAgreementMembersrt:MinimumMemberus-gaap:RevolvingCreditFacilityMember2019-09-092019-09-090001492298srt:MaximumMembersbra:FifthAmendedandRestatedCreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2019-09-092019-09-090001492298sbra:U.S.DollarTermLoanMembersbra:FifthAmendedandRestatedCreditAgreementMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:MinimumMember2019-09-092019-09-090001492298srt:MaximumMembersbra:U.S.DollarTermLoanMembersbra:FifthAmendedandRestatedCreditAgreementMemberus-gaap:LondonInterbankOfferedRateLIBORMember2019-09-092019-09-090001492298sbra:U.S.DollarTermLoanMembersbra:FifthAmendedandRestatedCreditAgreementMemberus-gaap:BaseRateMembersrt:MinimumMember2019-09-092019-09-090001492298srt:MaximumMembersbra:U.S.DollarTermLoanMembersbra:FifthAmendedandRestatedCreditAgreementMemberus-gaap:BaseRateMember2019-09-092019-09-090001492298sbra:U.S.DollarTermLoanMembersbra:FifthAmendedandRestatedCreditAgreementMember2020-12-310001492298sbra:CanadianDollarOfferRateCDORMembersbra:FifthAmendedandRestatedCreditAgreementMembersrt:MinimumMembersbra:CanadianDollarTermLoanMember2019-09-092019-09-090001492298sbra:CanadianDollarOfferRateCDORMembersrt:MaximumMembersbra:FifthAmendedandRestatedCreditAgreementMembersbra:CanadianDollarTermLoanMember2019-09-092019-09-090001492298sbra:FifthAmendedandRestatedCreditAgreementMembersbra:CanadianDollarTermLoanMember2020-12-310001492298us-gaap:InterestRateSwapMembersbra:U.S.DollarTermLoanMembersbra:FifthAmendedandRestatedCreditAgreementMember2019-09-090001492298us-gaap:LoansPayableMember2020-12-31sbra:derivative0001492298sbra:ForwardStartingInterestRateSwapsMember2019-05-012019-05-310001492298us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-01-012020-12-310001492298us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001492298us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001492298us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001492298us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001492298us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001492298us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001492298us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001492298us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001492298us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:NondesignatedMember2020-12-310001492298us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NetInvestmentHedgingMemberus-gaap:NondesignatedMember2019-12-310001492298sbra:CrossCurrencyInterestRateContractSubjectToAccretionMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001492298sbra:CrossCurrencyInterestRateContractSubjectToAccretionMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMembersrt:ScenarioForecastMember2023-01-310001492298sbra:ForwardStartingInterestRateSwapsEffectiveJanuary2021Memberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001492298sbra:ForwardStartingInterestRateCollarEffectiveJanuary2021Memberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001492298us-gaap:CashFlowHedgingMembersbra:ForwardStartingInterestRateSwapsAndForwardStartingInterestRateCollarsMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001492298us-gaap:CashFlowHedgingMembersbra:ForwardStartingInterestRateSwapEffectiveMay2024Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-31sbra:instrument0001492298us-gaap:CashFlowHedgingMembersbra:AccountsReceivablePrepaidExpensesDeferredFinancingCostsAndOtherAssetsNetMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001492298us-gaap:CashFlowHedgingMembersbra:AccountsReceivablePrepaidExpensesDeferredFinancingCostsAndOtherAssetsNetMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001492298sbra:ForwardStartingInterestRateSwapsMemberus-gaap:CashFlowHedgingMembersbra:AccountsReceivablePrepaidExpensesDeferredFinancingCostsAndOtherAssetsNetMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001492298sbra:ForwardStartingInterestRateSwapsMemberus-gaap:CashFlowHedgingMembersbra:AccountsReceivablePrepaidExpensesDeferredFinancingCostsAndOtherAssetsNetMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001492298us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NetInvestmentHedgingMembersbra:AccountsReceivablePrepaidExpensesDeferredFinancingCostsAndOtherAssetsNetMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001492298us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NetInvestmentHedgingMembersbra:AccountsReceivablePrepaidExpensesDeferredFinancingCostsAndOtherAssetsNetMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001492298us-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001492298us-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001492298us-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001492298us-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001492298us-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:CashFlowHedgingMembersbra:InterestRateCollarMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001492298us-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:CashFlowHedgingMembersbra:InterestRateCollarMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001492298sbra:ForwardStartingInterestRateSwapsMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001492298sbra:ForwardStartingInterestRateSwapsMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001492298us-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMembersbra:ForwardStartingInterestRateCollarMember2020-12-310001492298us-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMembersbra:ForwardStartingInterestRateCollarMember2019-12-310001492298sbra:LoansPayableToBankMemberus-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMember2020-12-310001492298sbra:LoansPayableToBankMemberus-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMember2019-12-310001492298us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2020-01-012020-12-310001492298us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2019-01-012019-12-310001492298us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2018-01-012018-12-310001492298us-gaap:ForeignExchangeContractMember2020-01-012020-12-310001492298us-gaap:ForeignExchangeContractMember2019-01-012019-12-310001492298us-gaap:ForeignExchangeContractMember2018-01-012018-12-310001492298us-gaap:CurrencySwapMember2020-01-012020-12-310001492298us-gaap:CurrencySwapMember2019-01-012019-12-310001492298us-gaap:CurrencySwapMember2018-01-012018-12-310001492298us-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMember2019-01-012019-12-310001492298us-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMember2018-01-012018-12-310001492298us-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMember2020-01-012020-12-310001492298us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NondesignatedMember2020-12-310001492298us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NondesignatedMember2020-01-012020-12-310001492298us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NondesignatedMember2019-01-012019-12-310001492298us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:NondesignatedMember2018-01-012018-12-310001492298us-gaap:CreditRiskContractMember2020-12-310001492298us-gaap:MeasurementInputDiscountRateMembersrt:MinimumMember2020-12-310001492298us-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2020-12-310001492298us-gaap:MeasurementInputDiscountRateMembersrt:WeightedAverageMember2020-12-310001492298us-gaap:SecuredDebtMemberus-gaap:MeasurementInputDiscountRateMembersrt:MinimumMember2020-12-310001492298us-gaap:SecuredDebtMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2020-12-310001492298us-gaap:SecuredDebtMemberus-gaap:MeasurementInputDiscountRateMembersrt:WeightedAverageMember2020-12-310001492298us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001492298us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001492298us-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-310001492298us-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001492298us-gaap:SeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001492298us-gaap:SeniorNotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001492298us-gaap:SeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-310001492298us-gaap:SeniorNotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001492298us-gaap:SecuredDebtMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001492298us-gaap:SecuredDebtMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001492298us-gaap:SecuredDebtMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-310001492298us-gaap:SecuredDebtMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001492298us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001492298us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001492298us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001492298us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001492298us-gaap:SeniorNotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001492298us-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001492298us-gaap:SeniorNotesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001492298us-gaap:SeniorNotesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001492298us-gaap:SecuredDebtMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001492298us-gaap:SecuredDebtMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001492298us-gaap:SecuredDebtMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001492298us-gaap:SecuredDebtMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001492298us-gaap:EstimateOfFairValueFairValueDisclosureMembersbra:ForwardStartingInterestRateSwapsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001492298sbra:ForwardStartingInterestRateSwapsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001492298sbra:ForwardStartingInterestRateSwapsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001492298sbra:ForwardStartingInterestRateSwapsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001492298us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001492298us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001492298us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001492298us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001492298us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001492298us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001492298us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001492298us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001492298us-gaap:EstimateOfFairValueFairValueDisclosureMembersbra:InterestRateCollarMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001492298sbra:InterestRateCollarMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001492298sbra:InterestRateCollarMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001492298sbra:InterestRateCollarMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001492298us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMembersbra:ForwardStartingInterestRateCollarMember2020-12-310001492298us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMembersbra:ForwardStartingInterestRateCollarMember2020-12-310001492298us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Membersbra:ForwardStartingInterestRateCollarMember2020-12-310001492298us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Membersbra:ForwardStartingInterestRateCollarMember2020-12-310001492298us-gaap:PreferredStockMember2018-06-012018-06-0100014922982013-03-212013-03-2100014922982018-06-0100014922982018-06-012018-06-010001492298sbra:PreferredStockDividendsIncomeStatementImpactMember2018-01-012018-12-310001492298sbra:EquityDistributionAgreementPriorATMProgramMember2019-02-252019-02-250001492298sbra:EquityDistributionAgreementATMProgramMember2019-12-112019-12-110001492298sbra:EquityDistributionAgreementATMProgramMember2020-01-012020-12-310001492298sbra:EquityDistributionAgreementATMProgramMembersrt:WeightedAverageMember2020-12-310001492298sbra:EquityDistributionAgreementATMProgramAndPriorATMProgramMember2019-01-012019-12-310001492298srt:WeightedAverageMembersbra:EquityDistributionAgreementATMProgramAndPriorATMProgramMember2019-12-310001492298sbra:EquityDistributionAgreementATMProgramForwardFeatureMember2020-01-012020-12-310001492298sbra:EquityDistributionAgreementATMProgramForwardFeatureMember2020-12-310001492298sbra:EquityDistributionAgreementATMProgramForwardFeatureMembersrt:WeightedAverageMember2020-12-310001492298sbra:EquityDistributionAgreementATMProgramMember2020-12-310001492298us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310001492298us-gaap:AccumulatedTranslationAdjustmentMember2019-12-310001492298us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2020-12-310001492298us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMember2019-12-310001492298us-gaap:RestrictedStockUnitsRSUMembersrt:MinimumMember2020-01-012020-12-310001492298srt:MaximumMemberus-gaap:RestrictedStockUnitsRSUMember2020-01-012020-12-310001492298us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-12-310001492298sbra:FundsFromOperationsUnitsMembersrt:MinimumMember2020-01-012020-12-310001492298sbra:FundsFromOperationsUnitsMembersrt:MaximumMember2020-01-012020-12-310001492298sbra:TotalShareholderReturnUnitsMembersrt:MinimumMember2020-01-012020-12-310001492298sbra:TotalShareholderReturnUnitsMembersrt:MaximumMember2020-01-012020-12-310001492298us-gaap:RestrictedStockUnitsRSUMember2019-12-310001492298us-gaap:RestrictedStockUnitsRSUMember2020-12-310001492298us-gaap:RestrictedStockUnitsRSUMember2019-01-012019-12-310001492298us-gaap:RestrictedStockUnitsRSUMember2018-01-012018-12-310001492298sbra:TotalShareholderReturnUnitsMember2020-01-012020-12-310001492298sbra:TotalShareholderReturnUnitsMembersrt:MinimumMember2019-01-012019-12-310001492298sbra:TotalShareholderReturnUnitsMembersrt:MaximumMember2019-01-012019-12-310001492298sbra:TotalShareholderReturnUnitsMembersrt:MinimumMember2018-01-012018-12-310001492298sbra:TotalShareholderReturnUnitsMembersrt:MaximumMember2018-01-012018-12-310001492298sbra:TotalShareholderReturnUnitsMember2019-01-012019-12-310001492298sbra:TotalShareholderReturnUnitsMember2018-01-012018-12-310001492298us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-12-310001492298us-gaap:GeneralAndAdministrativeExpenseMember2019-01-012019-12-310001492298us-gaap:GeneralAndAdministrativeExpenseMember2018-01-012018-12-310001492298sbra:CanadaAcquisitionsMemberus-gaap:CanadaRevenueAgencyMemberus-gaap:ForeignCountryMember2020-01-012020-12-310001492298sbra:CanadaAcquisitionsMemberus-gaap:CanadaRevenueAgencyMemberus-gaap:ForeignCountryMember2019-01-012019-12-310001492298sbra:CanadaAcquisitionsMemberus-gaap:CanadaRevenueAgencyMemberus-gaap:ForeignCountryMember2018-01-012018-12-310001492298sbra:CanadaAcquisitionsMemberus-gaap:CanadaRevenueAgencyMemberus-gaap:ForeignCountryMember2020-12-310001492298sbra:CanadaAcquisitionsMemberus-gaap:CanadaRevenueAgencyMemberus-gaap:ForeignCountryMember2019-12-310001492298sbra:CanadaAcquisitionsMemberus-gaap:CanadaRevenueAgencyMemberus-gaap:ForeignCountryMember2018-12-310001492298us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-12-310001492298us-gaap:RestrictedStockUnitsRSUMember2019-01-012019-12-310001492298us-gaap:RestrictedStockUnitsRSUMember2018-01-012018-12-310001492298us-gaap:EmployeeStockOptionMember2018-01-012018-12-310001492298us-gaap:SubsequentEventMemberus-gaap:DividendDeclaredMember2021-02-022021-02-020001492298us-gaap:AllowanceForLoanAndLeaseLossesMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2019-12-310001492298us-gaap:AllowanceForLoanAndLeaseLossesMember2020-01-012020-12-310001492298us-gaap:AllowanceForLoanAndLeaseLossesMember2020-12-310001492298srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMembersbra:SECSchedule1209AllowanceCreditLossSalesTypeLeaseMember2019-12-310001492298sbra:SECSchedule1209AllowanceCreditLossSalesTypeLeaseMember2020-01-012020-12-310001492298sbra:SECSchedule1209AllowanceCreditLossSalesTypeLeaseMember2020-12-310001492298srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2019-12-310001492298us-gaap:AllowanceForCreditLossMember2018-12-310001492298us-gaap:AllowanceForCreditLossMember2019-01-012019-12-310001492298us-gaap:AllowanceForCreditLossMember2019-12-310001492298us-gaap:AllowanceForLoanAndLeaseLossesRealEstateMember2018-12-310001492298us-gaap:AllowanceForLoanAndLeaseLossesRealEstateMember2019-01-012019-12-310001492298us-gaap:AllowanceForLoanAndLeaseLossesRealEstateMember2019-12-310001492298us-gaap:AllowanceForLoanAndLeaseLossesMember2018-12-310001492298us-gaap:AllowanceForLoanAndLeaseLossesMember2019-01-012019-12-310001492298us-gaap:AllowanceForLoanAndLeaseLossesMember2019-12-310001492298us-gaap:AllowanceForCreditLossMember2017-12-310001492298us-gaap:AllowanceForCreditLossMember2018-01-012018-12-310001492298us-gaap:AllowanceForLoanAndLeaseLossesRealEstateMember2017-12-310001492298us-gaap:AllowanceForLoanAndLeaseLossesRealEstateMember2018-01-012018-12-310001492298us-gaap:AllowanceForLoanAndLeaseLossesMember2017-12-310001492298us-gaap:AllowanceForLoanAndLeaseLossesMember2018-01-012018-12-310001492298us-gaap:AllowanceForLoanAndLeaseLossesMemberus-gaap:AccumulatedDistributionsInExcessOfNetIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-01-010001492298us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMembersbra:SECSchedule1209AllowanceCreditLossSalesTypeLeaseMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-01-010001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ForestHillsSkilledNursingFacilityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ForestHillsSkilledNursingFacilityMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SeminoleEstatesMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SeminoleEstatesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BedfordHillsMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BedfordHillsMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ElmsCareMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ElmsCareMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:LakeDriveMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:LakeDriveMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:MineralSpringsMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:MineralSpringsMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WolfeboroMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WolfeboroMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BroadmeadowHealthcareMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BroadmeadowHealthcareMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CapitolHealthcareMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CapitolHealthcareMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PikeCreekHealthcareMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PikeCreekHealthcareMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RenaissanceHealthcareMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RenaissanceHealthcareMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ClaraBurkeMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ClaraBurkeMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WarringtonMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WarringtonMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RidgecrestMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RidgecrestMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ArbrookPlazaMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ArbrookPlazaMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:NorthgatePlazaMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:NorthgatePlazaMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GulfPointePlazaMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GulfPointePlazaMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GatewaySeniorLivingMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GatewaySeniorLivingMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:NYELegacyMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:NYELegacyMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PointeMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PointeMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RegencyMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RegencyMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkmoorVillageMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkmoorVillageMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AdamsPARCMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AdamsPARCMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PARCwayMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PARCwayMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BrookhavenExtensiveCareMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BrookhavenExtensiveCareMember2020-01-012020-12-310001492298sbra:CadiaHealthcareOfHyattsvilleMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:CadiaHealthcareOfHyattsvilleMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CadiaHealthcareOfAnnapolisMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CadiaHealthcareOfAnnapolisMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CadiaHealthcareOfWheatonMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CadiaHealthcareOfWheatonMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CadiaHealthcareOfHagerstownMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CadiaHealthcareOfHagerstownMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CadiaHealthcareofSpringbrookMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CadiaHealthcareofSpringbrookMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AndrewResidenceMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AndrewResidenceMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRiverparkofEugeneMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRiverparkofEugeneMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabofLebanonMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabofLebanonMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereCrestviewofPortlandMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereCrestviewofPortlandMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabilitationofKingCityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabilitationofKingCityMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabilitationofHillsboroMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabilitationofHillsboroMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabofJunctionCityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabofJunctionCityMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabofEugeneMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabofEugeneMember2020-01-012020-12-310001492298sbra:AvamereRehabofCoosBayMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:AvamereRehabofCoosBayMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabofClackamasMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabofClackamasMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabofNewportMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabofNewportMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabofOregonCityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabofOregonCityMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereTransitionalCareofPugetSoundMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereTransitionalCareofPugetSoundMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RichmondBeachRehabMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RichmondBeachRehabMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:St.FrancisofBellinghamMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:St.FrancisofBellinghamMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereOlympicRehabilitationofSequimMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereOlympicRehabilitationofSequimMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereHeritageRehabilitationofTacomaMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereHeritageRehabilitationofTacomaMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereatPacificRidgeMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereatPacificRidgeMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabilitationofCascadeParkMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereRehabilitationofCascadeParkMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ThePearlatKruseWayMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ThePearlatKruseWayMember2020-01-012020-12-310001492298sbra:AvamereatMedfordMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:AvamereatMedfordMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereBellinghamHealthcareandRehabServicesMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereBellinghamHealthcareandRehabServicesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:QueenAnneHealthcareMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:QueenAnneHealthcareMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereTransitionalCareandRehabBoiseMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereTransitionalCareandRehabBoiseMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereTransitionalCareatSunnysideMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereTransitionalCareatSunnysideMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereHealthServicesofRogueValleyMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereHealthServicesofRogueValleyMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereTransitionalCareandRehabMalleyMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereTransitionalCareandRehabMalleyMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereTransitionalCareandRehabBrightonMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvamereTransitionalCareandRehabBrightonMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PhoenixRehabilitationServicesMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PhoenixRehabilitationServicesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:TustinSubacuteCareFacilityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:TustinSubacuteCareFacilityMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:LaMesaInpatientRehabilitationFacilityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:LaMesaInpatientRehabilitationFacilityMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterWestminsterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterWestminsterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:MapleWoodCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:MapleWoodCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GardenValleyNursingRehabMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GardenValleyNursingRehabMember2020-01-012020-12-310001492298sbra:WorthingtonNursingRehabMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:WorthingtonNursingRehabMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BurlingtonHouseRehabilitativeandAlzheimersCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BurlingtonHouseRehabilitativeandAlzheimersCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterCharlottesvilleMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterCharlottesvilleMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterSleepyHollowMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterSleepyHollowMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterPetersburgVAMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterPetersburgVAMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterBattlefieldParkMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterBattlefieldParkMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterHagerstownMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterHagerstownMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterCumberlandMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterCumberlandMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GilroyHealthcareandRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GilroyHealthcareandRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:NorthCascadesHealthandRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:NorthCascadesHealthandRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GraniteRehabilitationWellnessMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GraniteRehabilitationWellnessMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RawlinsRehabilitationWellnessMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RawlinsRehabilitationWellnessMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WindRiverRehabilitationWellnessMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WindRiverRehabilitationWellnessMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SageViewCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SageViewCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SheltonHealthandRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SheltonHealthandRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:DundeeNursingHomeMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:DundeeNursingHomeMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:Mt.PleasantNursingCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:Mt.PleasantNursingCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:TriStateCompCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:TriStateCompCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:EpicConwayMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:EpicConwayMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:EpicBayviewMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:EpicBayviewMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GreenAcresofBaytownMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GreenAcresofBaytownMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AllenbrookHealthcareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AllenbrookHealthcareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GreenAcresofHuntsvilleMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GreenAcresofHuntsvilleMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GreenAcresofCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GreenAcresofCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:HumbleHealthcareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:HumbleHealthcareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BeechnutManorMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BeechnutManorMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:LindenHealthcareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:LindenHealthcareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ShermanHealthcareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ShermanHealthcareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:MountPleasantHealthcareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:MountPleasantHealthcareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RenfroHealthcareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RenfroHealthcareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:UpshurManorNursingHomeMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:UpshurManorNursingHomeMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:HearthstoneofNorthernNevadaMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:HearthstoneofNorthernNevadaMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterRichmondMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterRichmondMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterPetersburgINMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterPetersburgINMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BeverlyHealthFt.PierceMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BeverlyHealthFt.PierceMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:MaryvilleMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:MaryvilleMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AshlandHealthcareMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AshlandHealthcareMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BellefontaineGardensMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BellefontaineGardensMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CurrentRiverNursingCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CurrentRiverNursingCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:DixonNursingRehabMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:DixonNursingRehabMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ForsythNursingRehabMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ForsythNursingRehabMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GlenwoodHealthcareMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GlenwoodHealthcareMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SilexCommunityCareMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SilexCommunityCareMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SouthHamptonPlaceMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SouthHamptonPlaceMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:StraffordCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:StraffordCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WindsorHealthcareRehabMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WindsorHealthcareRehabMember2020-01-012020-12-310001492298sbra:ParkManorofConroeMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:ParkManorofConroeMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkManorofCypressStationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkManorofCypressStationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkManorofHumbleMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkManorofHumbleMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkManorofQuailValleyMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkManorofQuailValleyMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkManorofWestchaseMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkManorofWestchaseMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkManorofCyFairMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkManorofCyFairMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkManorofMcKinneyMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkManorofMcKinneyMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:TanglewoodHealthandRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:TanglewoodHealthandRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SmokyHillHealthandRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SmokyHillHealthandRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BellevilleHealthCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BellevilleHealthCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WestridgeHealthcareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WestridgeHealthcareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WillowBendLivingCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WillowBendLivingCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:TwinCityHealthcareMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:TwinCityHealthcareMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PineKnollRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PineKnollRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WillowCrossingHealthRehabCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WillowCrossingHealthRehabCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PermissionRidgeCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PermissionRidgeCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:VermillionConvalescentCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:VermillionConvalescentCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:LasVegasPostAcuteRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:LasVegasPostAcuteRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ToreyPinesRehabilitationHospitalMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ToreyPinesRehabilitationHospitalMember2020-01-012020-12-310001492298sbra:VillaCampanaRehabilitationHospitalMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:VillaCampanaRehabilitationHospitalMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:KachinaPointRehabilitationHospitalMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:KachinaPointRehabilitationHospitalMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BayViewRehabilitationHospitalMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BayViewRehabilitationHospitalMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:DoverCenterforHealthRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:DoverCenterforHealthRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AugustaCenterforHealthRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AugustaCenterforHealthRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:EastsideCenterforHealthRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:EastsideCenterforHealthRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WinshipGreenCenterforHealthRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WinshipGreenCenterforHealthRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BrewerCenterforHealthRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BrewerCenterforHealthRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:KennebunkCenterforHealthRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:KennebunkCenterforHealthRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:NorwayCenterforHealthRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:NorwayCenterforHealthRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BrentwoodCenterforHealthRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BrentwoodCenterforHealthRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CountryCenterforHealthRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CountryCenterforHealthRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SachemCenterforHealthRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SachemCenterforHealthRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:EliotCenterforHealthRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:EliotCenterforHealthRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:TheReservoirCenterforHealthRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:TheReservoirCenterforHealthRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:NewtonWellesleyCenterforAlzheimersCareMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:NewtonWellesleyCenterforAlzheimersCareMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ColonyCenterforHealthRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ColonyCenterforHealthRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WestgateCenterforRehabAlzheimersCareMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WestgateCenterforRehabAlzheimersCareMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:NewOrangeHillsMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:NewOrangeHillsMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:MillbrookHealthcareRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:MillbrookHealthcareRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PleasantValleyHealthRehabMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PleasantValleyHealthRehabMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:FocusedCareAtClarksvilleMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:FocusedCareAtClarksvilleMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:McKinneyHealthcareRehabMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:McKinneyHealthcareRehabMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterHopkinsMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterHopkinsMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterFlorenceMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterFlorenceMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterSouthShoreMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterSouthShoreMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterRochesterEastMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterRochesterEastMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterWisconsinDellsMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterWisconsinDellsMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterSheboyganMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GoldenLivingCenterSheboyganMember2020-01-012020-12-310001492298sbra:GoldenLivingCenterHendersonvilleMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:GoldenLivingCenterHendersonvilleMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:TrisunCareCenterWestwoodMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:TrisunCareCenterWestwoodMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BaytoenNursingRehabCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BaytoenNursingRehabCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CedarBayouNursingRehabCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CedarBayouNursingRehabCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SeniorCareofWestwoodMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SeniorCareofWestwoodMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParamountSeniorCareCentersatPasadenaMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParamountSeniorCareCentersatPasadenaMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ThePointeNursingRehabCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ThePointeNursingRehabCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SummerPlaceNursingandRehabMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SummerPlaceNursingandRehabMember2020-01-012020-12-310001492298sbra:TheMeadowsNursingandRehabMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:TheMeadowsNursingandRehabMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofWhitesburgGardensMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofWhitesburgGardensMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofTerreHauteMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofTerreHauteMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareatLarkinSpringsMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareatLarkinSpringsMember2020-01-012020-12-310001492298sbra:SignatureHealthcareofSavannahMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:SignatureHealthcareofSavannahMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofBlufftonMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofBlufftonMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofBowlingGreenMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofBowlingGreenMember2020-01-012020-12-310001492298sbra:OakviewNursingandRehabilitationCenterMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:OakviewNursingandRehabilitationCenterMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:FountainCircleCareandRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:FountainCircleCareandRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RiversideCareRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RiversideCareRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SignatureHealthcareofBremenMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:SignatureHealthcareofBremenMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofMuncieMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofMuncieMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofParkwoodMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofParkwoodMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareatTowerRoadMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareatTowerRoadMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:DanvilleCentreforHealthandRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:DanvilleCentreforHealthandRehabilitationMember2020-01-012020-12-310001492298sbra:SignatureHealthcareatHillcrestMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:SignatureHealthcareatHillcrestMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SignatureHealthcareofElizabethtownMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:SignatureHealthcareofElizabethtownMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofPrimacyMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofPrimacyMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofHarbourPointeMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofHarbourPointeMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:HarrodsburgHealthRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:HarrodsburgHealthRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SignatureHealthcareofPutnamCountyMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:SignatureHealthcareofPutnamCountyMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofFayetteCountyMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofFayetteCountyMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofGalionMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofGalionMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofRoanokeRapidsMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofRoanokeRapidsMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofKinstonMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofKinstonMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofChapelHillMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofChapelHillMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofChillicotheMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofChillicotheMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofCoshoctonMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SignatureHealthcareofCoshoctonMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:McCrearyHealthRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:McCrearyHealthRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ColonialHealthRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ColonialHealthRehabilitationCenterMember2020-01-012020-12-310001492298sbra:GlasgowHealthRehabilitationCenterMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:GlasgowHealthRehabilitationCenterMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GreenValleyHealthRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GreenValleyHealthRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:HartCountyHealthRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:HartCountyHealthRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:HeritageHallHealthRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:HeritageHallHealthRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:JacksonManorMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:JacksonManorMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:JeffersonManorMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:JeffersonManorMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:JeffersonPlaceMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:JeffersonPlaceMember2020-01-012020-12-310001492298sbra:MonroeHealthRehabilitationCenterMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:MonroeHealthRehabilitationCenterMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:NorthHardinHealthRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:NorthHardinHealthRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ProfessionalCareHealthRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ProfessionalCareHealthRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RockfordHealthRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RockfordHealthRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SummerfieldHealthRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SummerfieldHealthRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:TanbarkSeniorLivingMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:TanbarkSeniorLivingMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SummitManorHealthRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SummitManorHealthRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BelleViewEstatesRehabilitationandCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BelleViewEstatesRehabilitationandCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RiverChaseRehabilitationandCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RiverChaseRehabilitationandCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:HeartlandRehabilitationandCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:HeartlandRehabilitationandCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RiverRidgeRehabilitationandCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RiverRidgeRehabilitationandCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BrookridgeCoveRehabilitationandCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BrookridgeCoveRehabilitationandCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SouthernTraceRehabilitationandCareCenterDomain2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SouthernTraceRehabilitationandCareCenterDomain2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:LakeVillageRehabilitationandCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:LakeVillageRehabilitationandCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SavannahSpecialtyCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SavannahSpecialtyCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PettigrewRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PettigrewRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SunnybrookRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SunnybrookRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RaleighRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RaleighRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CypressPointeRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CypressPointeRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SilasCreekRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SilasCreekRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:LincolntonRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:LincolntonRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RehabilitationandNursingCenterofMonroeMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RehabilitationandNursingCenterofMonroeMember2020-01-012020-12-310001492298sbra:GuardianCareofZebulonMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:GuardianCareofZebulonMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GuardianCareofRockyMountMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GuardianCareofRockyMountMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SanPedroManorMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SanPedroManorMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkManorHealthCareRehabilitationMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkManorHealthCareRehabilitationMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvalonPlaceTrinityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvalonPlaceTrinityMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvalonPlaceKirbyvilleMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AvalonPlaceKirbyvilleMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:HeritageHouseofMarshallMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:HeritageHouseofMarshallMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AutumnWoodsResidentialHealthCareFacilityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AutumnWoodsResidentialHealthCareFacilityMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AutumnViewHealthCareFacilityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AutumnViewHealthCareFacilityMember2020-01-012020-12-310001492298sbra:BrookhavenHealthCareFacilityMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:BrookhavenHealthCareFacilityMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:HarrisHillsNursingFacilityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:HarrisHillsNursingFacilityMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GardenGateHealthCareFacilityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GardenGateHealthCareFacilityMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:NorthgateHealthCareFacilityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:NorthgateHealthCareFacilityMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SenecaHealthCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:SenecaHealthCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BlueberryHillRehabandHealthcareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BlueberryHillRehabandHealthcareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RiverTerraceRehabilitationandHealthcareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RiverTerraceRehabilitationandHealthcareCenterMember2020-01-012020-12-310001492298sbra:TheCrossingsEastCampusMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:TheCrossingsEastCampusMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkwayPavilionHealthcareMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkwayPavilionHealthcareMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:QuincyHealthRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:QuincyHealthRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:DenMarHealthRehabilitationCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:DenMarHealthRehabilitationCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:FiresteelHealthcareCommunityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:FiresteelHealthcareCommunityMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:FountainSpringsHealthcareCommunityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:FountainSpringsHealthcareCommunityMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PalisadeHealthcareCommunityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PalisadeHealthcareCommunityMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ShepherdoftheValleyHealthcareCommunityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ShepherdoftheValleyHealthcareCommunityMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WheatcrestHillsHealthcareCommunityMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WheatcrestHillsHealthcareCommunityMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RiverviewHealthcareCommunityIndependentLivingMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RiverviewHealthcareCommunityIndependentLivingMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PrairieViewHealthcareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PrairieViewHealthcareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatDutchessFishkillMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatDutchessFishkillMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatUlsterHighlandMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatUlsterHighlandMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatBeaconMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatBeaconMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatSpringfieldMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatSpringfieldMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatAndoverMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatAndoverMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatReadingMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatReadingMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatSudburyMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatSudburyMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatBelvidereLowellMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatBelvidereLowellMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatWorcesterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatWorcesterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatWestSpringfieldMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatWestSpringfieldMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatEastLongmeadowMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WingateatEastLongmeadowMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BroadwaybytheSeaMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BroadwaybytheSeaMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CoventryCourthHealthCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CoventryCourthHealthCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:FairfieldPostAcuteRehabMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:FairfieldPostAcuteRehabMember2020-01-012020-12-310001492298sbra:GardenViewPostAcuteRehabMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-12-310001492298sbra:GardenViewPostAcuteRehabMembersbra:SkilledNursingTransitionalCareFacilitiesMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GrandTerraceHealthCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:GrandTerraceHealthCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PacficaNursingRehabCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PacficaNursingRehabCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BurienNursingRehabCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BurienNursingRehabCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkWestCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkWestCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BeachsideNursingCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:BeachsideNursingCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ChatsworthParkHealthCareMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ChatsworthParkHealthCareMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CottonwoodPostAcuteRehabMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:CottonwoodPostAcuteRehabMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:DanvillePostAcuteRehabMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:DanvillePostAcuteRehabMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:LakeBalboaCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:LakeBalboaCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:LomitaPostAcuteCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:LomitaPostAcuteCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:UniversityPostAcuteRehabMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:UniversityPostAcuteRehabMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:IssaquahNursingRehabCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:IssaquahNursingRehabCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AlamitosBelmontRehabHospitalMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:AlamitosBelmontRehabHospitalMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:EdgewaterSkilledNursingCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:EdgewaterSkilledNursingCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:FairmontRehabilitationHospitalMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:FairmontRehabilitationHospitalMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PalmTerraceCareCenterMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:PalmTerraceCareCenterMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WoodlandNursingRehabMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:WoodlandNursingRehabMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkManoratBeeCaveMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkManoratBeeCaveMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RamonaMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:RamonaMember2020-01-012020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkRidgeMember2020-12-310001492298sbra:SkilledNursingTransitionalCareFacilitiesMembersbra:ParkRidgeMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ForestHillsAlfMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ForestHillsAlfMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LangdonPlaceOfExeterMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LangdonPlaceOfExeterMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LangdonPlaceOfNashuaMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LangdonPlaceOfNashuaMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LangdonPlaceOfKeeneMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LangdonPlaceOfKeeneMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LangdonPlaceOfDoverMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LangdonPlaceOfDoverMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:CreeksideSeniorLivingMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:CreeksideSeniorLivingMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:GulfePointeVillageMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:GulfePointeVillageMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:AspenRidgeRetirementVillageMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:AspenRidgeRetirementVillageMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:GreenAcresOfCadillacMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:GreenAcresOfCadillacMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:GreenAcresOfGreenvilleMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:GreenAcresOfGreenvilleMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:GreenAcresOfManisteeMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:GreenAcresOfManisteeMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:GreenAcresOfMasonMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:GreenAcresOfMasonMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:NottinghamPlaceMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:NottinghamPlaceMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:RoyalViewMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:RoyalViewMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TawasVillageMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TawasVillageMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TurningBrookMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TurningBrookMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:GreenfieldofWoodstockMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:GreenfieldofWoodstockMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:NyeSquareMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:NyeSquareMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TheMeadowsMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TheMeadowsMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ParkPlaceMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ParkPlaceMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:AvalonMCBoatClubMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:AvalonMCBoatClubMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:AvalonMC7200Member2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:AvalonMC7200Member2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:AvalonMC7204Member2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:AvalonMC7204Member2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:AvalonMC7140Member2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:AvalonMC7140Member2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:DelaneyCreekLodgeMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:DelaneyCreekLodgeMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:NatureCoastLodgeMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:NatureCoastLodgeMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:WestWindsMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:WestWindsMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TudorHeightsMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TudorHeightsMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LifesJourneyOfMattoonMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LifesJourneyOfMattoonMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LifesJourneyOfPanaMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LifesJourneyOfPanaMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LifesJourneyOfTaylorvilleMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LifesJourneyOfTaylorvilleMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LifesJourneyOfParisMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LifesJourneyOfParisMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:AshleyPointeMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:AshleyPointeMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:FarmingtonSquareEugeneMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:FarmingtonSquareEugeneMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:FarmingtonSquareTualatinMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:FarmingtonSquareTualatinMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:FarmingtonSquareOfSalemMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:FarmingtonSquareOfSalemMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ColoradoSpringsMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ColoradoSpringsMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:SunCityWestMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:SunCityWestMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:PoetsWalkatFredericksburgMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:PoetsWalkatFredericksburgMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:PoetsWalkatChandlerOaksMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:PoetsWalkatChandlerOaksMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TheMontecitoSantaFeMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TheMontecitoSantaFeMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:MontecitoMCMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:MontecitoMCMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TheGoldenCrestMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TheGoldenCrestMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:PoetsWalkatHendersonMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:PoetsWalkatHendersonMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:KruseVillageMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:KruseVillageMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:PoetsWalkofCedarParksMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:PoetsWalkofCedarParksMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:AvamereCourtatKeizerMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:AvamereCourtatKeizerMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ArborCourtRetirementCommunityatAlvamarMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ArborCourtRetirementCommunityatAlvamarMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ArborCourtRetirementCommunityatSalinaMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ArborCourtRetirementCommunityatSalinaMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ArborCourtRetirementCommunityatTopekaMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ArborCourtRetirementCommunityatTopekaMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:AspenGroveAssistedLivingMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:AspenGroveAssistedLivingMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:MauriceGriffithManorLivingCenterMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:MauriceGriffithManorLivingCenterMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ThePeaksatOldLaramieTrailLafayetteMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ThePeaksatOldLaramieTrailLafayetteMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:PrairieViewMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:PrairieViewMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ArborViewAssistedLivingMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ArborViewAssistedLivingMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LegacyAssistedLivingMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:LegacyAssistedLivingMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:GreenfieldOfStrasburgMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:GreenfieldOfStrasburgMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:PoetsWalkOfSarasotaMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:PoetsWalkOfSarasotaMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ThePointAtLifespringMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ThePointAtLifespringMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ShavanoParkSeniorLivingMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:ShavanoParkSeniorLivingMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TraditionsOfBeaverCreekMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TraditionsOfBeaverCreekMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:CadenceAtPowayGardensMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:CadenceAtPowayGardensMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TraditionsOfBrooksideMcCordsvilleMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TraditionsOfBrooksideMcCordsvilleMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TraditionsOfBeaumontMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:TraditionsOfBeaumontMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:SunshineCareMember2020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMembersbra:SunshineCareMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesLeasedMember2020-12-310001492298sbra:WinterVillageMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:WinterVillageMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:StoneyRiverMarshfieldMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:StoneyRiverMarshfieldMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:KensingtonCourtMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:KensingtonCourtMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:MasonvilleManorMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:MasonvilleManorMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:OkanaganChateauMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:OkanaganChateauMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMembersbra:CourtAtLaurelwoodMember2020-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMembersbra:CourtAtLaurelwoodMember2020-01-012020-12-310001492298sbra:FairwindsLodgeMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:FairwindsLodgeMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:TheShoresMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:TheShoresMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:OrchardValleyMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:OrchardValleyMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:CherryParkMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:CherryParkMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:MaisonSeniorLivingMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:MaisonSeniorLivingMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:RamseyMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:RamseyMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:MarshfieldIIMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:MarshfieldIIMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMembersbra:DoverPlaceMember2020-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMembersbra:DoverPlaceMember2020-01-012020-12-310001492298sbra:KanawhaPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:KanawhaPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:LeightonPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:LeightonPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:MaidenscreekPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:MaidenscreekPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:RollingMeadowsPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:RollingMeadowsPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:WillowbrookPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:WillowbrookPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMembersbra:WyncotePlaceMember2020-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMembersbra:WyncotePlaceMember2020-01-012020-12-310001492298sbra:AmityPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:AmityPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:MilfordPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:MilfordPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:OakHillPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:OakHillPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:SeasonsPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:SeasonsPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:ParkviewInAllenMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:ParkviewInAllenMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:TheAtriumatGainesvilleMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:TheAtriumatGainesvilleMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:TheChateauMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:TheChateauMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:GardensAtWakefieldPlantationMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:GardensAtWakefieldPlantationMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:LasBrisasMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:LasBrisasMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:CreeksideTerraceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:CreeksideTerraceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMembersbra:ColonialVillageMember2020-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMembersbra:ColonialVillageMember2020-01-012020-12-310001492298sbra:GardenVillageMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:GardenVillageMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMembersbra:DesertRoseMember2020-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMembersbra:DesertRoseMember2020-01-012020-12-310001492298sbra:WindlandSouthMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:WindlandSouthMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:CedarWoodsMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:CedarWoodsMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:VirginianMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:VirginianMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:MonarchEstatesMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:MonarchEstatesMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:VillageAtTheFallsMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:VillageAtTheFallsMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:HolidayAtTheAtriumMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:HolidayAtTheAtriumMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:LakeRidgeVillageMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:LakeRidgeVillageMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:HeritageVillageMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:HeritageVillageMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:MadisonMeadowsMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:MadisonMeadowsMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:SouthWindHeightsMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:SouthWindHeightsMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:HarrisonRegentMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:HarrisonRegentMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:CapitalPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:CapitalPlaceMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:TheMonarchatRichardsonMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:TheMonarchatRichardsonMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:ElanWestpointeMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:ElanWestpointeMembersbra:SeniorHousingFacilitiesManagedPortfolioMember2020-01-012020-12-310001492298sbra:SeniorHousingFacilitiesManagedPortfolioMember2020-12-310001492298sbra:TexasRegionalMedicalCenterMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:TexasRegionalMedicalCenterMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:LandmarkAuroraMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:LandmarkAuroraMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:BaylorOrthopedicSpineHospitalatArlingtonMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:BaylorOrthopedicSpineHospitalatArlingtonMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:TouchstoneNeurorecoveryCenterMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:TouchstoneNeurorecoveryCenterMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:HealthBridgeChildrensHospitalHoustonMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:HealthBridgeChildrensHospitalHoustonMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:NexusSpecialityHospitalWoodlandsCampusMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:NexusSpecialityHospitalWoodlandsCampusMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:HealthBridgeChildrensHospitalOrangeMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:HealthBridgeChildrensHospitalOrangeMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:ResCareTangramTexasHillCountrySchoolMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:ResCareTangramTexasHillCountrySchoolMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:ResCareTangramChaparralMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:ResCareTangramChaparralMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:ResCareTangramSierraVerdeRocaVistaMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:ResCareTangramSierraVerdeRocaVistaMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:ResCareTangram618W.HutchinsonMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:ResCareTangram618W.HutchinsonMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:ResCareTangramRanchMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:ResCareTangramRanchMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:ResCareTangramMesquiteMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:ResCareTangramMesquiteMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:ResCareTangramHaciendaMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:ResCareTangramHaciendaMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:ResCareTangramLomaLindaMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:ResCareTangramLomaLindaMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:AuroraChicagoLakeshoreHospitalMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:AuroraChicagoLakeshoreHospitalMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:AuroraArizonaWestMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:AuroraArizonaWestMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:AuroraArizonaEastMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:AuroraArizonaEastMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:AuroraCharterOakHospitalMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:AuroraCharterOakHospitalMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:AuroraVistadelMarHospitalMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:AuroraVistadelMarHospitalMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:AuroraSanDiegoHospitalMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:AuroraSanDiegoHospitalMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:GatewayRehabilitationHospitalatFlorenceMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:GatewayRehabilitationHospitalatFlorenceMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:HighlandsRegionalRehabilitationHospitalMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:HighlandsRegionalRehabilitationHospitalMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:LandmarkNewLondonMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:LandmarkNewLondonMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:LandmarkCarmelMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:LandmarkCarmelMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:LandmarkLouisvilleMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:LandmarkLouisvilleMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:RecoveryCentersofAmericaatMonroevilleMembersbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:RecoveryCentersofAmericaatMonroevilleMembersbra:SpecialtyHospitalsAndOtherMember2020-01-012020-12-310001492298sbra:SpecialtyHospitalsAndOtherMember2020-12-310001492298sbra:MultiPropertyIndebtednessMember2020-12-310001492298us-gaap:OperatingSegmentsMember2020-12-310001492298us-gaap:CorporateNonSegmentMember2020-12-310001492298sbra:VariousSkilledNursingTransitionalCareAndSeniorHousingFacilitiesMemberus-gaap:RealEstateMemberus-gaap:MortgagesMember2020-12-310001492298sbra:SouthTampaMemberus-gaap:MortgagesMember2020-01-012020-12-310001492298sbra:SouthTampaMemberus-gaap:MortgagesMember2020-12-310001492298sbra:ArlingtonMemberus-gaap:ConstructionLoansMember2020-01-012020-12-310001492298sbra:ArlingtonMemberus-gaap:ConstructionLoansMember2020-12-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 FORM 10-K
 
(Mark One)
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 001-34950
 SABRA HEALTH CARE REIT, INC.
(Exact Name of Registrant as Specified in Its Charter)
 
Maryland   27-2560479
(State of Incorporation)   (I.R.S. Employer Identification No.)
18500 Von Karman Avenue, Suite 550
Irvine, CA 92612
(888) 393-8248
(Address, zip code and telephone number of Registrant)
 
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol Name of Each Exchange on Which Registered
Common Stock, $0.01 par value SBRA The Nasdaq Stock Market LLC
Securities registered pursuant to Section 12(g) of the Act: None
 
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes     No  
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes     No  
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer   x    Accelerated filer  
Non-accelerated filer      Smaller reporting company  
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter: $2.9 billion
As of February 17, 2021, there were 210,719,844 shares of the registrant’s $0.01 par value Common Stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Proxy Statement for the registrant’s 2021 Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission not later than 120 days after December 31, 2020, are incorporated by reference in Part III herein.



SABRA HEALTH CARE REIT, INC. AND SUBSIDIARIES
Index
 
4
4
14
26
26
27
27
28
28
30
32
52
53
53
53
54
54
54
54
54
54
54
55
55
57
F-1
 


1


References throughout this document to “Sabra,” “we,” “our,” “ours” and “us” refer to Sabra Health Care REIT, Inc. and its direct and indirect consolidated subsidiaries and not any other person.
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this Annual Report on Form 10-K (this “10-K”) contain “forward-looking” information as that term is defined by the Private Securities Litigation Reform Act of 1995. Any statements that do not relate to historical or current facts or matters are forward-looking statements. Examples of forward-looking statements include all statements regarding our expected future financial position, results of operations, cash flows, liquidity, financing plans, business strategy, tenants, the expected amounts and timing of dividends and other distributions, projected expenses and capital expenditures, competitive position, growth opportunities, potential investments, potential dispositions, plans and objectives for future operations, and compliance with and changes in governmental regulations. You can identify some of the forward-looking statements by the use of forward-looking words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend,” “should,” “may” and other similar expressions, although not all forward-looking statements contain these identifying words.
Our actual results may differ materially from those projected or contemplated by our forward-looking statements as a result of various factors, including, among others, the following:
the ongoing COVID-19 pandemic and measures intended to prevent its spread, including the impact on our tenants, operators and Senior Housing - Managed communities (as defined below);
our dependence on the operating success of our tenants;
the potential variability of our reported rental and related revenues following the adoption of Topic 842 (as defined below) on January 1, 2019;
operational risks with respect to our Senior Housing - Managed communities;
the effect of our tenants declaring bankruptcy or becoming insolvent;
our ability to find replacement tenants and the impact of unforeseen costs in acquiring new properties;
the impact of litigation and rising insurance costs on the business of our tenants;
the possibility that Sabra may not acquire the remaining majority interest in the Enlivant Joint Venture (as defined below);
risks associated with our investment in the Enlivant Joint Venture;
changes in healthcare regulation and political or economic conditions;
the impact of required regulatory approvals of transfers of healthcare properties;
competitive conditions in our industry;
our concentration in the healthcare property sector, particularly in skilled nursing/transitional care facilities and senior housing communities, which makes our profitability more vulnerable to a downturn in a specific sector than if we were investing in multiple industries;
the significant amount of and our ability to service our indebtedness;
covenants in our debt agreements that may restrict our ability to pay dividends, make investments, incur additional indebtedness and refinance indebtedness on favorable terms;
increases in market interest rates;
the phasing out of the London Interbank Offered Rate (“LIBOR”) benchmark beginning after 2021;
our ability to raise capital through equity and debt financings;
changes in foreign currency exchange rates;
the relatively illiquid nature of real estate investments;
the loss of key management personnel;
uninsured or underinsured losses affecting our properties and the possibility of environmental compliance costs and liabilities;
the impact of a failure or security breach of information technology in our operations;
our ability to maintain our status as a real estate investment trust (“REIT”) under the federal tax laws;
changes in tax laws and regulations affecting REITs (including the potential effects of the Tax Cuts and Jobs Act);
compliance with REIT requirements and certain tax and tax regulatory matters related to our status as a REIT; and
the ownership limits and takeover defenses in our governing documents and under Maryland law, which may restrict change of control or business combination opportunities.
We urge you to carefully consider these risks and review the additional disclosures we make concerning risks and other factors that may materially affect the outcome of our forward-looking statements and our future business and operating results, including those made in Part I, Item 1A, “Risk Factors” in this 10-K, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the Securities and Exchange Commission (“SEC”), including subsequent Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. We caution you that any forward-looking
2


statements made in this 10-K are not guarantees of future performance, events or results, and you should not place undue reliance on these forward-looking statements, which speak only as of the date of this report. We do not intend, and we undertake no obligation, to update any forward-looking information to reflect events or circumstances after the date of this 10-K or to reflect the occurrence of unanticipated events, unless required by law to do so.
TENANT AND BORROWER INFORMATION

This 10-K includes information regarding certain of our tenants that lease properties from us and our borrowers, most of which are not subject to SEC reporting requirements. The information related to our tenants and borrowers that is provided in this 10-K has been provided by, or derived from information provided by, such tenants and borrowers. We have not independently verified this information. We have no reason to believe that such information is inaccurate in any material respect. We are providing this data for informational purposes only.
3



PART I
 
ITEM 1. BUSINESS
Overview
We operate as a self-administered, self-managed REIT that, through our subsidiaries, owns and invests in real estate serving the healthcare industry. Our primary business consists of acquiring, financing and owning real estate property to be leased to third party tenants in the healthcare sector. We primarily generate revenues by leasing properties to tenants and owning properties operated by third-party property managers throughout the United States (“U.S.”) and Canada.
Our investment portfolio is primarily comprised of skilled nursing/transitional care facilities, senior housing communities (“Senior Housing - Leased”) and specialty hospitals and other facilities, in each case leased to third-party operators; senior housing communities operated by third-party property managers pursuant to property management agreements (“Senior Housing - Managed”); investments in loans receivable; preferred equity investments; and a 49% equity interest in a joint venture with affiliates of Enlivant and TPG Real Estate, the real estate platform of TPG, that owns senior housing communities managed by Enlivant (the “Enlivant Joint Venture”).
We expect to grow our investment portfolio while diversifying our portfolio by tenant, facility type and geography within the healthcare sector. We plan to achieve these objectives primarily through making investments directly or indirectly in healthcare real estate, including the development of purpose-built healthcare facilities with select developers. We also intend to achieve our objective of diversifying our portfolio by tenant and facility type through select asset sales and other arrangements with our tenants.
We employ a disciplined, opportunistic approach in our healthcare real estate investment strategy by investing in assets that provide attractive opportunities for dividend growth and appreciation of asset values, while maintaining balance sheet strength and liquidity, thereby creating long-term stockholder value.
We commenced operations on November 15, 2010, and we elected to be treated as a REIT with the filing of our U.S. federal income tax return for the taxable year beginning January 1, 2011. We believe that we have been organized and have operated, and we intend to continue to operate, in a manner to qualify as a REIT.
Our principal executive offices are located at 18500 Von Karman Avenue, Suite 550, Irvine, CA 92612, and our telephone number is (888) 393-8248. We maintain a website at www.sabrahealth.com. Sabra Health Care REIT, Inc. files reports with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We make such filings available free of charge on our website as soon as reasonably practicable after such information has been filed or furnished with the SEC.
Our Industry
We operate as a REIT that holds investments in income-producing healthcare facilities located in the U.S. and Canada. We invest primarily in the U.S. nursing home industry, including skilled nursing and transitional care facilities, the U.S. and Canadian senior housing industry, which includes independent living, assisted living, memory care and continuing care retirement communities and select behavioral, acute care and other hospitals. The primary growth drivers of these industries – an aging population and longer life expectancies – present attractive investment opportunities for us. According to the 2017 National Population Projections published by the U.S. Census Bureau, the number of Americans age 75 and older is projected to grow at a compounded annual growth rate of 3.7% between 2016 and 2025. Further, life expectancy is expected to increase to 81.7 years in 2030 from 79.7 years in 2017. In addition, the National Investment Center for Seniors Housing and Care, a leading industry data provider, estimates that as of the fourth quarter of 2019, only 10.3% of nursing home and senior housing properties were owned by publicly traded REITs. The highly-fragmented nature of the skilled nursing and senior housing industries presents additional investment opportunities.
Demand for senior housing is expected to increase as a result of an aging population and an increase in acuity across the post-acute landscape. Cost containment measures adopted by the federal government have encouraged patient treatment in more cost-effective settings, such as skilled nursing facilities. As a result, high acuity patients that previously would have been treated in long-term acute care hospitals and inpatient rehabilitation facilities are increasingly being treated in skilled nursing facilities. According to the National Health Expenditure Projections for 2019-2028 published by the Centers for Medicare & Medicaid Services (“CMS”), nursing home expenditures are projected to grow from approximately $175 billion in 2019 to approximately $266 billion in 2028, representing a compounded annual growth rate of 4.8%. This focus on high acuity patients in skilled
4


nursing facilities has resulted in the typical senior housing resident requiring more assistance with activities for daily living, such as assistance with bathing, grooming, dressing, eating, and medication management; however, many older senior housing communities were not built to accommodate a resident who has more needs as well as increased mobility and cognitive issues than in the past. We believe that these trends will create an emphasis on operators who can effectively adapt their operating model to accommodate the changing nursing home patient and senior housing resident and will result in increased demand for purpose-built properties that are complementary to this new system of healthcare delivery.
The hospital industry is broadly defined to include acute care, long-term acute care, rehabilitation and behavioral hospitals. Hospital services comprise one of the largest categories of healthcare expenditures. According to the CMS National Health Expenditure Projections for 2019-2028, hospital care expenditures are projected to grow from approximately $1.3 trillion in 2019 to approximately $2.1 trillion in 2028, representing a compounded annual growth rate of 5.8%. Hospitals offer a wide range of services, both inpatient and outpatient, in a variety of settings. We believe that demand will increase for innovative means of delivering those services and present additional investment opportunities.
While the factors described above indicate projected growth for our industry, the COVID-19 pandemic has negatively impacted operators and generally resulted in decreased occupancy. It is difficult to predict the duration of the ongoing pandemic and its effects on the industry.
We compete for real property investments with other REITs, investment companies, private equity and hedge fund investors, sovereign funds, healthcare operators, lenders and other investors. Some of our competitors are significantly larger and have greater financial resources and lower costs of capital than we do. Increased competition makes it more challenging to identify and successfully capitalize on acquisition opportunities that meet our investment objectives. Our ability to compete is also impacted by national and local economic trends, availability of investment alternatives, availability and cost of capital, construction and renovation costs, existing laws and regulations, new legislation and population trends.
In addition, revenues from our properties are dependent on the ability of our tenants and operators to compete with other healthcare operators. These operators compete on a local and regional basis for residents and patients, and the operators’ ability to successfully attract and retain residents and patients depends on key factors such as the number of facilities in the local market, the types of services available, the quality of care, reputation, age and appearance of each facility, and the cost of care in each locality. Private, federal and state payment programs and the effect of other laws and regulations may also have a significant impact on the ability of our tenants and operators to compete successfully for residents and patients at the properties.
Portfolio of Healthcare Investments
We have a geographically diverse portfolio of healthcare investments across the U.S. and Canada that offer a range of services including skilled nursing/transitional care, assisted and independent living, mental health and acute care. As of December 31, 2020, our investment portfolio consisted of 426 real estate properties held for investment, one investment in a sales-type lease, 18 investments in loans receivable, six preferred equity investments and our 49% equity interest in the Enlivant Joint Venture. Of our 426 properties held for investment as of December 31, 2020, we owned fee title to 420 properties and title under ground leases for six properties.
Our portfolio consisted of the following types of healthcare facilities as of December 31, 2020:
Skilled Nursing/Transitional Care Facilities
Skilled nursing facilities. Skilled nursing facilities provide services that include daily nursing, therapeutic rehabilitation, social services, activities, housekeeping, nutrition, medication management and administrative services for individuals requiring certain assistance for activities in daily living. A typical skilled nursing facility includes mostly one and two bed units, each equipped with a private or shared bathroom and community dining facilities.
Mental health facilities. Mental health facilities provide a range of inpatient and outpatient behavioral health services for adults and children through specialized treatment programs.
Transitional care facilities/units. Transitional care facilities/units are licensed nursing facilities or distinct units within a licensed nursing facility that provide short term, intensive, high acuity nursing and medical services. These facilities tend to focus on delivering specialized treatment to patients with cardiac, neurological, pulmonary, orthopedic, and renal conditions. Length of service is typically 30 days or less with the majority of patients returning to prior living arrangements and functional abilities. Generally, transitional care facilities/units provide services to Medicare, managed care and commercial insurance patients.
Senior Housing Communities
 
5


Independent living communities. Independent living communities are age-restricted multi-family properties with central dining facilities that provide services that include security, housekeeping, activities, nutrition and limited laundry services. Our independent living communities are designed specifically for independent seniors who are able to live on their own, but desire the security and conveniences of community living. Independent living communities typically offer several services covered under a regular monthly fee.
Assisted living communities. Assisted living communities provide services that include assistance for activities in daily living and permit residents to maintain some of their privacy and independence as they do not require constant supervision and assistance. Services bundled within one regular monthly fee usually include three meals per day in a central dining room, daily housekeeping, laundry, medical reminders and 24-hour availability of assistance with the activities of daily living, such as eating, dressing and bathing. Professional nursing and healthcare services are usually available at the community on call or at regularly scheduled times. Assisted living communities typically are comprised of studios and one- and two-bedroom suites equipped with private bathrooms and efficiency kitchens.
Memory care communities. Memory care communities offer specialized options, services and clinical programs for individuals with Alzheimer’s disease and other forms of dementia. Purpose-built memory care communities offer a more residential environment than offered in a secured unit of a nursing facility. These communities offer dedicated care and specialized programming from specially trained staff for various conditions relating to memory loss in a secured environment that is typically smaller in scale and more residential in nature than traditional assisted living communities. Residents require a higher level of care, a secure environment, customized therapeutic recreation programs and more assistance with activities of daily living than in assisted living communities. Therefore, these communities have staff available 24 hours a day to respond to the unique needs of their residents.
Continuing care retirement communities. Continuing care retirement communities, or CCRCs, provide, as a continuum of care, the services described above for independent living communities, assisted living communities, memory care communities and skilled nursing facilities in an integrated campus.
Specialty Hospitals and Other Facilities
Acute care hospitals. Acute care hospitals provide emergency room, inpatient and outpatient medical care and other related services for surgery, acute medical conditions or injuries (usually for a short-term illness or condition).
Long-term acute care hospitals. Long-term acute care hospitals provide care for patients with complex medical conditions that require longer stays and more intensive care, monitoring or emergency back-up than that available in most skilled nursing facilities.
Rehabilitation hospitals. Rehabilitation hospitals provide inpatient and outpatient care for patients who have sustained traumatic injuries or illnesses, such as spinal cord injuries, strokes, head injuries, orthopedic problems, work-related disabilities and neurological diseases.
Behavioral hospitals. Behavioral hospitals provide inpatient and outpatient care for patients with mental health conditions, chemical dependence or substance addictions.
Addiction treatment centers. Addiction treatment centers provide treatment services for chemical dependence and substance addictions, which may include inpatient care, outpatient care, medical detoxification, therapy and counseling.
Residential services facilities. Residential services facilities provide services in home and community-based settings, which may include assistance with activities of daily living.
Other facilities. Other facilities include facilities other than those described above that are not classified as skilled nursing/transitional care or senior housing.
6


Geographic and Property Type Diversification
The following tables display the geographic concentration by property type and by investment and the distribution of beds/units for our real estate held for investment as of December 31, 2020 (dollars in thousands):
Geographic Concentration — Property Type
Location Skilled Nursing / Transitional Care    Senior Housing - Leased    Senior Housing - Managed Specialty Hospitals and Other Consolidated Total % of Consolidated Total Unconsolidated JV Senior Housing - Managed Total % of Total
Texas 39  14  68  16.0  % 28  96  16.4  %
Indiana 14  —  18  4.2  21  39  6.7 
California 24  30  7.0  —  30  5.1 
Washington 15  —  17  4.0  12  29  5.0 
Kentucky 24  —  27  6.3  28  4.8 
Oregon 15  —  —  19  4.5  25  4.3 
Ohio —  —  1.4  15  21  3.6 
Wisconsin —  10  2.4  10  20  3.4 
Pennsylvania —  1.9  11  19  3.3 
Massachusetts 18  —  —  —  18  4.2  —  18  3.1 
Other (33 states & Canada) 127  42  31  205  48.1  54  259  44.3 
Total 287  65  47  27  426  100.0  % 158  584  100.0  %
               
% of Consolidated Total 67.4  % 15.3  % 11.0  % 6.3  % 100.0  %
% of Total 49.1  % 11.1  % 8.1  % 4.6  % 72.9  % 27.1  % 100.0  %
Distribution of Beds/Units
  Property Type
Location Total Number of Properties Skilled Nursing / Transitional Care Senior Housing - Leased Senior Housing - Managed Specialty Hospitals and Other Consolidated Total % of Consolidated Total Unconsolidated JV Senior Housing - Managed Total % of Total
Texas 96  4,816  577  856  366  6,615  15.7  % 1,092  7,707  15.7  %
Kentucky 28  2,598  142  —  100  2,840  6.8  55  2,895  5.9 
Indiana 39  1,439  432  —  48  1,919  4.6  963  2,882  5.9 
California 30  2,058  58  102  340  2,558  6.1  —  2,558  5.2 
Washington 29  1,591  52  113  —  1,756  4.2  504  2,260  4.6 
Massachusetts 18  2,209  —  —  —  2,209  5.2  —  2,209  4.5 
Oregon 25  1,520  377  —  —  1,897  4.5  207  2,104  4.3 
North Carolina 15  1,454  —  237  —  1,691  4.0  —  1,691  3.4 
New York 10  1,566  —  107  —  1,673  4.0  —  1,673  3.4 
Missouri 14  1,075  —  184  —  1,259  3.0  —  1,259  2.6 
Other (33 states & Canada) 280  11,435  2,644  3,325  238  17,642  41.9  4,235  21,877  44.5 
Total 584  31,761  4,282  4,924  1,092  42,059  100.0  % 7,056  49,115  100.0  %
% of Consolidated Total 75.5  % 10.2  % 11.7  % 2.6  % 100.0  %
% of Total 64.7  % 8.7  % 10.0  % 2.2  % 85.6  % 14.4  % 100.0  %

7


Geographic Concentration — Investment (1)
Property Type
Location Total Number of Properties Skilled Nursing / Transitional Care Senior Housing - Leased Senior Housing - Managed Specialty Hospitals and Other Total % of Total
Texas 68  $ 385,040  $ 81,305  $ 182,316  $ 196,035  $ 844,696  14.2  %
California 30  435,612  18,160  36,479  225,361  715,612  12.0 
Oregon 19  261,316  86,860  —  —  348,176  5.9 
Maryland 325,887  3,250  —  —  329,137  5.5 
New York 10  297,573  —  20,014  —  317,587  5.3 
Kentucky 27  228,773  23,669  —  39,696  292,138  4.9 
Indiana 18  174,581  88,824  —  5,310  268,715  4.5 
Washington 17  188,551  10,686  27,752  —  226,989  3.8 
Arizona 33,822  10,348  38,218  121,757  204,145  3.4 
North Carolina 15  123,462  —  68,395  —  191,857  3.2 
Other (30 states & Canada) (2)
205  1,189,853  384,532  569,822  82,634  2,226,841  37.3 
Total 426  $ 3,644,470  $ 707,634  $ 942,996  $ 670,793  $ 5,965,893  100.0  %
% of Total     61.1  % 11.9  % 15.8  % 11.2  % 100.0  %    
(1)    Represents the undepreciated book value of our real estate held for investment as of December 31, 2020. Excludes unconsolidated joint venture.
(2)    Investment balance in Canada is based on the exchange rate as of December 31, 2020 of $0.7848 per CAD $1.00.

Loans Receivable and Other Investments
As of December 31, 2020 and 2019, our loans receivable and other investments consisted of the following (dollars in thousands):
December 31, 2020
Investment Quantity
as of
December 31, 2020
Property Type
Principal Balance as of December 31, 2020 (1)
Book Value
as of
December 31, 2020
Book Value
as of
December 31, 2019
Weighted Average Contractual Interest Rate / Rate of Return Weighted Average Annualized Effective Interest Rate / Rate of Return Maturity Date
as of
December 31, 2020
Loans Receivable:
Mortgage Specialty Hospital $ 19,000  $ 19,000  $ 19,000  10.0  % 10.0  % 01/31/27
Construction Senior Housing 3,343  3,352  2,487  8.0  % 7.8  % 09/30/22
Other 16  Multiple 42,977  39,005  42,147  6.8  % 6.9  % 03/01/21- 08/31/28
18  65,320  61,357  63,634  7.8  % 7.9  %
Allowance for loan losses —  (2,458) (564)
65,320  58,899  63,070 
Other Investments:
Preferred Equity Skilled Nursing / Senior Housing 43,724  43,940  44,304  11.3  % 11.3  % N/A
Total 24  $ 109,044  $ 102,839  $ 107,374  9.2  % 9.3  %
(1)    Principal balance includes amounts funded and accrued unpaid interest / preferred return and excludes capitalizable fees.
Significant Credit Concentrations
For the year ended December 31, 2020, no tenant relationship represented 10% or more of our total revenues.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Concentration of Credit Risk” in Part II, Item 7 for additional information, including risks and uncertainties, regarding tenant concentration.
8


Investment Financing Strategy
We expect that future investments in properties, including any improvements or renovations of current or newly-acquired properties, will depend on and will be financed, in whole or in part, by our existing cash, borrowings available to us under our Revolving Credit Facility (as defined below) and proceeds from issuances of common stock (including through our ATM Program, as defined below), preferred stock, debt or other securities. In addition, we may seek financing from U.S. government agencies, including through Fannie Mae, Freddie Mac and the U.S. Department of Housing and Urban Development (“HUD”), in appropriate circumstances in connection with acquisitions. We also use derivative instruments in the normal course of business to mitigate interest rate and foreign currency risk.
Competitive Strengths
We believe the following competitive strengths contribute significantly to our success:
Diverse Property Portfolio
Our portfolio of 426 properties held for investment as of December 31, 2020 is broadly diversified by location across the U.S. and Canada. Our properties in any one state or province did not account for more than 16% of our total beds/units as of December 31, 2020. Our geographic diversification will limit the effect of a decline in any one regional market on our overall performance. We have also been able to diversify, through acquisitions and dispositions, the extent to which our revenues are dependent on our tenants’, borrowers’ and equity investees’ revenues from federal, state and local government reimbursement programs. Based on the information provided to us by our tenants and borrowers, which information is provided quarterly in arrears, on an annualized basis as of December 31, 2020, 59.0% of our tenants’, borrowers’ and equity investees’ revenue was from federal, state and local government reimbursement programs.
Long-Term, Triple-Net Lease Structure
As of December 31, 2020, the substantial majority of our real estate properties held for investment (excluding 47 Senior Housing - Managed communities) were leased under triple-net operating leases with expirations ranging from less than one year to 16 years, pursuant to which the tenants are responsible for all facility maintenance, insurance required in connection with the leased properties and the business conducted on the leased properties, taxes levied on or with respect to the leased properties and all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties. As of December 31, 2020, the leases had a weighted-average remaining term of eight years. The leases generally include provisions to extend the lease terms and other negotiated terms and conditions. We, through our subsidiaries, retain substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. We may receive additional security under these operating leases in the form of letters of credit and security deposits from the lessee or guarantees from the parent of the lessee. In addition, certain of our tenants have deposited amounts with us for future real estate taxes, insurance expenditures and tenant improvements related to our properties and their operations.
Senior Housing - Managed Structure

As of December 31, 2020, our real estate properties held for investment included 47 Senior Housing - Managed communities operated by seven third-party property managers pursuant to property management agreements. In addition, as of December 31, 2020, the Enlivant Joint Venture owned 158 Senior Housing - Managed communities managed by Enlivant. The Senior Housing - Managed structure gives us direct exposure to the risks and benefits of the operations of the communities. We generally utilize the Senior Housing - Managed structure when properties present growth opportunities that may be achievable through capital investment and/or property managers providing scale, operating efficiencies and/or ancillary services. The third-party property managers manage our communities in exchange for the receipt of a management fee, and as such, we are not directly exposed to the credit risk of the property managers in the same manner or to the same extent as we are to our triple-net tenants. However, we rely on the property managers’ personnel, expertise, technical resources and information systems, proprietary information, good faith and judgment to manage our communities efficiently and effectively. We also rely on the property managers to set appropriate resident fees and otherwise operate our communities in compliance with the terms of our management agreements and all applicable laws and regulations.
9


Strong Relationships with Operators
The members of our management team have developed an extensive network of relationships with qualified local, regional and national operators of skilled nursing/transitional care facilities and senior housing communities across the U.S. and Canada. This extensive network has been built by our management team through more than 100 years of combined operating experience, involvement in industry trade organizations and the development of banking relationships and investor relations within the skilled nursing and senior housing industries. We believe these strong relationships with operators help us to source investment opportunities.
Our relationships with operators include pipeline agreements that we have entered into with certain operators that provide for the acquisition of, and interim capital commitments for, various healthcare facilities. These pipeline agreements, together with repeat transactions with other operators, help support our future growth potential by providing additional investment opportunities with lower acquisition costs than would be required for investments with new operators.
Ability to Identify Talented Operators
As a result of our management team’s operating experience, network of relationships and industry insight, we have been able and expect to continue to be able to identify qualified local, regional and national operators. We seek operators who possess local market knowledge, demonstrate hands-on management, have proven track records and emphasize patient care. These operators are often located in secondary markets, which generally have lower costs to build and favorable demographics as demonstrated by the fact that the percentage of the population over the age of 65 is greater in the markets where we have invested than in the U.S. as a whole. We believe our management team’s experience gives us a key competitive advantage in objectively evaluating an operator’s financial position, emphasis on care and operating efficiency.
Significant Experience in Proactive Asset Management
The members of our management team have significant experience developing systems to collect and evaluate data relating to the underlying operational and financial success of healthcare companies and healthcare-related real estate assets. We are able to utilize this experience and expertise to provide our operators, when requested, with assistance in the areas of marketing, development, facility expansion and strategic planning. We have also developed a proprietary information technology system that allows us to efficiently and effectively collect tenant, financial, asset management and acquisitions information. Leveraging this system allows us to be lean in our operations and proactive in sharing information with our tenants and operators where we can be helpful to them. We actively monitor the operating results of our tenants, and, when requested, we offer support to our operators to identify and capitalize on opportunities to improve the operations of our facilities and the overall financial and operating strength of our operators.
Business Strategies
We pursue business strategies focused on opportunistic acquisitions and property diversification where such acquisitions meet our investing and financing strategy. We also intend to further develop our relationships with tenants and healthcare providers with a goal to progressively expand the mixture of tenants managing and operating our properties.
The key components of our business strategies include:
Diversify Asset Portfolio
We expect to grow our investment portfolio while diversifying our portfolio by tenant, facility type and geography within the healthcare sector. We plan to achieve these objectives primarily through making investments directly or indirectly in healthcare real estate, including the development of purpose-built healthcare facilities with select developers. We also intend to achieve our objective of diversifying our portfolio by tenant and facility type through select asset sales and other arrangements with our tenants.
We expect to continue to grow our portfolio primarily through the acquisition of assisted living, independent living and memory care communities in the U.S. and Canada and through the acquisition of skilled nursing/transitional care and behavioral health facilities in the U.S. We have and expect to continue to opportunistically acquire other types of healthcare real estate, originate financing secured directly or indirectly by healthcare facilities and invest in the development of senior housing communities and skilled nursing/transitional care facilities. We also expect to expand our portfolio through the development of purpose-built healthcare facilities through pipeline agreements and other arrangements with select developers. We further expect to work with existing operators to identify strategic development opportunities. These opportunities may involve replacing, renovating or expanding facilities in our portfolio that may have become less competitive and new development opportunities that present attractive risk-adjusted returns. In addition to pursuing acquisitions with triple-net leases, we expect to continue to pursue other forms of investment, including investments in Senior Housing - Managed communities, mezzanine
10


and secured debt investments, and joint ventures for senior housing communities and skilled nursing/transitional care facilities. We also expect to continue to enhance the strength of our investment portfolio by selectively disposing of underperforming facilities or working with new or existing operators to transfer underperforming but promising properties to new operators.
With respect to our debt and preferred equity investments, in general, we originate loans and make preferred equity investments when an attractive investment opportunity is presented and (a) the property is in or near the development phase, (b) the development of the property is completed but the operations of the facility are not yet stabilized or (c) the loan investment will provide capital to existing relationships. A key component of our development strategy related to loan originations and preferred equity investments is having the option to purchase the underlying real estate that is owned by our borrowers (and that directly or indirectly secures our loan investments) or by the entity in which we have an investment. These options become exercisable upon the occurrence of various criteria, such as the passage of time or the achievement of certain operating goals, and the method to determine the purchase price upon exercise of the option is set in advance based on the same valuation methods we use to value our investments in healthcare real estate. This proprietary development pipeline strategy allows us to diversify our revenue streams and build relationships with operators and developers, and provides us with the option to add new properties to our existing real estate portfolio if we determine that those properties enhance our investment portfolio and stockholder value at the time the options are exercisable.
Maintain Balance Sheet Strength and Liquidity
We seek to maintain a capital structure that provides the resources and flexibility to support the growth of our business. As of December 31, 2020, we had approximately $1.1 billion in liquidity, consisting of unrestricted cash and cash equivalents of $59.1 million and available borrowings under our Revolving Credit Facility of $1.0 billion. The Credit Agreement (as defined below) also contains an accordion feature that can increase the total available borrowings to $2.75 billion (up from U.S. $2.0 billion plus CAD $125.0 million), subject to terms and conditions.
We have filed a shelf registration statement with the SEC that expires in December 2022, which allows us to offer and sell shares of common stock, preferred stock, warrants, rights, units, and certain of our subsidiaries to offer and sell debt securities, through underwriters, dealers or agents or directly to purchasers, on a continuous or delayed basis, in amounts, at prices and on terms we determine at the time of the offering, subject to market conditions.
We intend to maintain a mix of Revolving Credit Facility debt, term loan debt, secured debt and unsecured term debt, which, together with our anticipated ability to complete future equity financings (including through our ATM Program), we expect will fund the growth of our operations. Further, we may opportunistically seek access to U.S. government agency financing, including through Fannie Mae, Freddie Mac and HUD, in appropriate circumstances in connection with acquisitions.
Develop New Investment Relationships
We seek to cultivate our relationships with tenants and healthcare providers in order to expand the mix of tenants operating our properties and, in doing so, to reduce our dependence on any single tenant or operator. We have grown our investment relationships from one in 2010 to 72 as of December 31, 2020. We expect to continue to develop new investment relationships as part of our overall strategy to acquire new properties and further diversify our overall portfolio of healthcare properties.
Capital Source to Underserved Operators
We believe that there is a significant opportunity to be a capital source to healthcare operators through the acquisition of healthcare properties that are consistent with our investment and financing strategy, but that, due to size and other considerations, are not a focus for other healthcare REITs. We utilize our management team’s operating experience, network of relationships and industry insight to identify financially strong and growing operators in need of capital funding for future growth. In appropriate circumstances, we may negotiate with operators to acquire individual healthcare properties from those operators and then lease those properties back to the operators pursuant to long-term triple-net leases or refinance new projects.
Strategic Capital Improvements
We intend to continue to support operators by providing capital to them for a variety of purposes, including for capital expenditures and facility modernization. We expect to structure the majority of these investments as either lease amendments that produce additional rents or as loans that are repaid by operators during the applicable lease term.
Pursue Strategic Development Opportunities
We expect to work with existing operators to identify strategic development opportunities. These opportunities may involve replacing, renovating or expanding facilities in our portfolio that may have become less competitive and new
11


development opportunities that present attractive risk-adjusted returns. In addition to pursuing acquisitions with triple-net leases, we expect to continue to pursue other forms of investment, including investments in Senior Housing - Managed communities, mezzanine and secured debt investments, and joint ventures for senior housing and skilled nursing/transitional care facilities.
 Human Capital Matters
Experienced Management Team
Our management team has extensive healthcare and real estate experience. Richard K. Matros, Chairman, President and Chief Executive Officer of Sabra, has more than 30 years of experience in the acquisition, development and disposition of healthcare assets, including nine years at Sun Healthcare Group, Inc. Harold W. Andrews, Jr., Executive Vice President, Chief Financial Officer and Secretary of Sabra, is a finance professional with more than 20 years of experience in both the provision of healthcare services and healthcare real estate. Talya Nevo-Hacohen, Executive Vice President, Chief Investment Officer and Treasurer of Sabra, is a real estate finance executive with more than 25 years of experience in real estate finance, acquisition and development, including three years of experience managing and implementing the capital markets strategy of an S&P 500 healthcare REIT. Through years of public company experience, our management team also has extensive experience accessing both debt and equity capital markets to fund growth and maintain a flexible capital structure.
Team Members and Equal Opportunity
As of December 31, 2020, we employed 38 full-time employees (our team members), including our executive officers, none of whom is subject to a collective bargaining agreement. As of December 31, 2020, women comprised 55% of our workforce and 65% of our management level/leadership roles. As of December 31, 2020, 21% of our team members self-identified as being members of one or more ethnic minorities. We believe our ethnic diversity is higher than this reported percentage as another 21% of our team members did not respond to our survey requesting this information. We believe that a diverse workforce is essential to our continued success, and we strive to maintain a fair, healthy and safe workplace, while creating a work environment that promotes diversity, equality and inclusion for our team members. Our workforce reflects diverse gender, ethnicity, age and cultural backgrounds.
We recognize that attracting and retaining talent at all levels is vital to continuing our success and, in many ways, is our most critical asset. We ensure our team members receive competitive salaries and benefits, and we aim to attract professionals who will uphold our values of social and environmental stewardship. We promote the work-life balance of our team members, we invest in our team members through high-quality benefits and meaningful health and wellness initiatives, and we have created a healthy work environment in our office to incentivize and engage our team members. The health and safety of our team members is an important consideration for us, and in light of the COVID-19 pandemic, we have accommodated flexible work from home arrangements, extended hardship benefits and provided assistance for dependent care costs to preserve the health and well-being of our team members and their families.
We believe that when we create a workplace where our team members are engaged, committed and empowered for the long-term, we are better positioned to create value for our company, as well as for our stockholders. We gauge our team members’ level of engagement and satisfaction through annual surveys as well as subject-driven focus surveys regarding topics including company culture and the impact of the COVID-19 pandemic and working from home. Based on feedback received, we identify areas for improvement and action items to be implemented. Our performance management initiative helps us proactively plan for our team members’ evolving roles and address the current and future needs of our business. The initiative employs 360-degree assessments and focuses on aligning our talent strategy with our business strategy and identifies skills that may be required to meet our future business needs. We also seek to ensure that our team members have opportunities to interact with our accomplished board of directors and accordingly invite all of our team members to our quarterly board of directors dinner events.
We support volunteerism, organizing opportunities for our team members as a group to volunteer within the community. Our team members also donate to our tenants’ employees, patients and residents every holiday season. In order to support engagement and team building, various company events, including life event celebrations, dinners and other social outings, are held regularly throughout the year, as well as an annual all team member retreat. During the COVID-19 pandemic, these events were adapted to virtual platforms with a focus on company business, education and entertainment, including biweekly all-team member Zoom meetings in which our chief executive officer provides business and operational updates and then leads team-building activities.
12


Government Regulation
Our tenants are subject to extensive and complex federal, state and local healthcare laws and regulations, including anti-kickback, anti-fraud and abuse provisions codified under the Social Security Act. These provisions prohibit certain business practices and relationships that might affect the provision and cost of healthcare services reimbursable under Medicare and Medicaid. Sanctions for violating these anti-kickback, anti-fraud and abuse provisions include criminal penalties, civil sanctions, fines and possible exclusion from government programs such as Medicare and Medicaid. If a facility is decertified as a Medicare or Medicaid provider by CMS or a state, the facility will not thereafter be reimbursed for caring for residents that are covered by Medicare and Medicaid, and the facility would be forced to care for such residents without being reimbursed or to transfer such residents.
Most of our tenants’ skilled nursing/transitional care, assisted living and mental health facilities are licensed under applicable state law. Most of our skilled nursing/transitional care facilities and mental health facilities are certified or approved as providers under the Medicare and Medicaid programs. Some of our assisted living facilities are certified or approved as providers under various state Medicaid and/or Medicaid waiver programs. Similarly, the operators of our specialty hospitals must meet the applicable conditions of participation established by the U.S. Department of Health and Human Services and comply with state and local laws and regulations in order to receive Medicare and Medicaid reimbursement. State and local agencies survey all skilled nursing/transitional care facilities and some assisted living facilities on a regular basis to determine whether such facilities are in compliance with governmental operating and health standards and conditions for participation in government sponsored third party payor programs. Under certain circumstances, the federal and state agencies have the authority to take adverse actions against a facility or service provider, including the imposition of a monitor, the imposition of monetary penalties and the decertification of a facility or provider from participation in the Medicare and/or Medicaid/Medicaid waiver programs or licensure revocation. Challenging and appealing notices or allegations of noncompliance can require significant legal expenses and management attention.
Various states in which our tenants operate our facilities have established minimum staffing requirements or may establish minimum staffing requirements in the future. Failure to comply with such minimum staffing requirements may result in the imposition of fines or other sanctions. Most states in which our tenants operate have statutes requiring that prior to the addition or construction of new nursing home beds, to the addition of new services or to certain capital expenditures in excess of defined levels, the tenant first must obtain a certificate of need, which certifies that the state has made a determination that a need exists for such new or additional beds, new services or capital expenditures. The certification process is intended to promote quality healthcare at the lowest possible cost and to avoid the unnecessary duplication of services, equipment and centers. This certification process can restrict or prohibit the undertaking of a project or lengthen the period of time required to enlarge or renovate a facility or replace a tenant.
In addition to the above, those of our tenants who provide services that are paid for by Medicare and Medicaid are subject to federal and state budgetary cuts and constraints that limit the reimbursement levels available from these government programs. Changes to reimbursement or methods of payment from Medicare and Medicaid could result in a substantial reduction in our tenants’ revenues. Various healthcare reform measures became law upon the enactment of the Patient Protection and Affordable Care Act of 2010 (the “Affordable Care Act”) and the Tax Cuts and Jobs Act (the “2017 Tax Act”), which amends certain provisions of the Affordable Care Act. The recent Presidential and Congressional elections in the U.S. could result in further changes. Amendments to, repeal of or legal challenges to the Affordable Care Act and regulatory changes could impose further limitations on government payments to our tenants. On July 31, 2018, CMS issued a final rule, CMS-1696-F, which includes changes to the case-mix classification system used under the Prospective Payment System. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Skilled Nursing Facility Reimbursement Rates” in Part II, Item 7 for additional information.
As of December 31, 2020, our subsidiaries owned 10 healthcare facilities (six senior housing communities and four skilled nursing/transitional care facilities) with mortgage loans that are guaranteed by HUD. Those facilities are subject to the rules and regulations of HUD, including periodic inspections by HUD, although the tenants of those facilities have the primary responsibility for maintaining the facilities in compliance with HUD’s rules and regulations. The regulatory agreements entered into by each owner and each operator of the property restrict, among other things, any sale or other transfer of the property, modification of the lease between the owner and the operator, use of surplus cash from the property except upon certain conditions and renovations of the property, all without prior HUD approval.
In addition, as an owner of real property, we are subject to various federal, state and local environmental and health and safety laws and regulations. These laws and regulations address various matters, including asbestos, fuel oil management, wastewater discharges, air emissions, medical wastes and hazardous wastes. The costs of complying with these laws and regulations and the penalties for non-compliance can be substantial. For example, although we do not generally operate or actively manage our properties, we may be held primarily or jointly and severally liable for costs relating to the investigation
13


and cleanup of any property from which there has been a release or threatened release of a regulated material as well as other affected properties, regardless of whether we knew of or caused the release. In addition to these costs, which are typically not limited by law or regulation and could exceed the property’s value, we could be liable for certain other costs, including governmental fines and injuries to persons, property or natural resources. See “Risk Factors—Risks Relating to Our Business—Environmental compliance costs and liabilities associated with real estate properties owned by us may materially impair the value of those investments.” in Part I, Item 1A.

ITEM 1A. RISK FACTORS
The following describes the risks and uncertainties that could cause our actual results to differ materially from those presented in our forward-looking statements. The risks and uncertainties described below are not the only ones we face but do represent those risks and uncertainties that we believe are material to us. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also harm our business.
Risks Related to Our Business/Operations
The ongoing COVID-19 pandemic and measures intended to prevent its spread could have a material adverse effect on our business, results of operations, cash flows and financial condition.
The ongoing COVID-19 pandemic and measures intended to prevent its spread have negatively impacted us and our operations and are expected to continue to impact us and our operations in 2021 and potentially beyond, in a number of ways, including but not limited to:
Decreased occupancy and increased operating costs for our tenants and borrowers, which have adversely impacted, and may continue to adversely impact, their ability to meet their obligations as they come due, including their obligation to make full and timely rental payments and debt service payments, respectively, to us. In some cases, we may have to restructure tenants’ long-term rent obligations and may not be able to do so on terms that are as favorable to us as those currently in place. Reduced or modified rental and debt service amounts could result in the determination that the full amounts of our investments are not recoverable, which could result in an impairment charge.
Decreased occupancy and increased operating costs within our Senior Housing - Managed portfolio and in our Enlivant Joint Venture, which have negatively impacted, and are expected to continue to negatively impact, the operating results of these investments. Prolonged deterioration in the operating results for these investments could result in the determination that the full amounts of our investments are not recoverable, which could result in an impairment charge.
If there are significant disruptions to our business, our credit ratings may be adversely impacted and we may breach covenants in our debt agreements and be unable to service our debt. Further, significant disruption could cause us to further reduce or suspend our dividend.
The COVID-19 pandemic has also caused, and is likely to continue to cause, severe economic, market and other disruptions worldwide. We cannot assure you that conditions in the bank lending, capital and other financial markets will not continue to deteriorate as a result of the pandemic, or that our access to capital and other sources of funding will not become constrained, which could adversely affect the availability and terms of future borrowings, renewals or refinancings.
As a result of the COVID-19 pandemic, our tenants and operators may be subject to increased lawsuits filed by advocacy groups that monitor the quality of care at healthcare facilities or by patients, facility residents or their families. Any litigation brought against our tenants and operators could increase our tenants’ and operators’ costs of business and could directly negatively impact our business. Further, we may be subject to increased claims brought against us in lawsuits and other legal proceedings arising out of our alleged actions or the alleged actions of our tenants and operators for which such tenants or operators may have agreed to indemnify, defend and hold us harmless. An unfavorable resolution of any such pending or future litigation could materially adversely affect our liquidity, financial condition and results of operations and have a material adverse effect on us in the event that we are not ultimately indemnified by our tenants or operators.
In addition, the deterioration of global economic conditions as a result of the pandemic may ultimately decrease occupancy levels and pricing across our portfolio as senior residents and tenants reduce or defer their spending. The extent of the COVID-19 pandemic’s effect on our operational and financial performance will depend on future developments, including the duration, spread and intensity of the outbreak, the emergence of new strains of the virus, and the impact of vaccination efforts, all of which are uncertain and difficult to predict. Due to the evolving nature of the ongoing pandemic, we are not able
14


at this time to estimate the effect of these factors on our business, but the adverse impact on our business, results of operations, financial condition and cash flows could be material.
We are dependent on the operating success of our tenants.
Our tenants’ revenues are primarily driven by occupancy, Medicare and Medicaid reimbursement and private pay rates. Revenues from government reimbursement have been, and may continue to be, subject to rate cuts and further pressure from federal and state budgetary cuts and constraints. A weakening of economic conditions in the U.S. may adversely affect occupancy rates of healthcare facilities that rely on private pay residents. Our tenants’ expenses are driven by the costs of labor, food, utilities, taxes, insurance and rent or debt service. In addition, any failure by a tenant to effectively conduct its operations or to maintain and improve our properties could adversely affect its business reputation and its ability to attract and retain residents in our properties. To the extent any decrease in revenues and/or any increase in operating expenses results in our tenants’ not generating enough cash to make scheduled lease payments to us, our business, financial position or results of operations could be materially adversely affected.
Our reported rental and related revenues may be subject to increased variability as a result of the adoption of Accounting Standards Update (“ASU”) 2016-02, Leases, as amended by subsequent ASUs (“Topic 842”).
In February 2016, the Financial Accounting Standards Board issued Topic 842, which supersedes guidance related to accounting for leases and provides for the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous accounting guidance. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. We elected to adopt Topic 842 on January 1, 2019 using the modified retrospective transition method. Among other things, under Topic 842, if at any time we cannot determine that it is probable that substantially all rents over the life of a lease are collectible, rental revenue will be recognized only to the extent of payments received and all receivables associated with the lease will be written off, irrespective of amounts expected to be collectible. Recoveries of these amounts will be recorded in future periods upon receipt of payment. Under Topic 842, future write-offs of receivables and any recoveries of previously written-off receivables will be recorded as adjustments to rental revenue. As a result, the adoption of this new accounting standard could cause increased variability related to our reported rental and related revenues, which could increase the volatility in the market price of our common stock.
We are exposed to operational risks with respect to our Senior Housing - Managed communities.
We are exposed to various operational risks with respect to our Senior Housing - Managed communities that may increase our costs or adversely affect our ability to generate revenues. These risks are similar to the ones described above with respect to our tenants and include fluctuations in occupancy and private pay rates; economic conditions; competition; federal, state, local, and industry-regulated licensure, certification and inspection laws, regulations, and standards; the availability and increases in cost of general and professional liability insurance coverage; state regulation and rights of residents related to entrance fees; and the availability and increases in the cost of labor (as a result of unionization or otherwise). Any one or a combination of these factors may adversely affect our business, financial position or results of operations.
Real estate is a competitive business and this competition may make it difficult for us to identify and purchase suitable healthcare properties, to finance acquisitions on favorable terms, or to retain or attract tenants.
We operate in a highly competitive industry and face competition from other REITs, investment companies, private equity and hedge fund investors, sovereign funds, healthcare operators, lenders and other investors, some of whom are significantly larger than us and have greater resources and lower costs of capital than we do. This competition makes it more challenging to identify and successfully capitalize on acquisition opportunities that meet our investment objectives. Similarly, our properties face competition for patients and residents from other properties in the same market, which may affect our ability to attract and retain tenants or may reduce the rents we are able to charge. If we cannot identify and purchase a sufficient quantity of healthcare properties at favorable prices, finance acquisitions on commercially favorable terms, or attract and retain profitable tenants, our business, financial position or results of operations could be materially adversely affected.
If we lose our key management personnel, we may not be able to successfully manage our business and achieve our objectives.
Our success depends in large part upon the leadership and performance of our executive management team, particularly Mr. Matros, our President and Chief Executive Officer. If we lose the services of Mr. Matros, we may not be able to successfully manage our business or achieve our business objectives.
15


We may experience uninsured or underinsured losses, which could result in a significant loss of the capital we have invested in a property, decrease anticipated future revenues or cause us to incur unanticipated expenses.
While our lease agreements and property management agreements require that comprehensive insurance and hazard insurance be maintained by the tenants or operators, as applicable, there are certain types of losses, generally of a catastrophic nature, such as earthquakes, hurricanes and floods, that may be uninsurable or not economically insurable. Insurance coverage may not be sufficient to pay the full current market value or current replacement cost of a loss. Inflation, changes in building codes and ordinances, environmental considerations, and other factors also might make it infeasible to use insurance proceeds to replace properties after they have been damaged or destroyed. Under such circumstances, the insurance proceeds received might not be adequate to restore the economic position with respect to a damaged property.
Risks Related to Our Tenants and Operators
Our tenants and operators may be adversely affected by increasing healthcare regulation and enforcement.
Over the last several years, the regulatory environment of the long-term healthcare industry has intensified both in the amount and type of regulations and in the efforts to enforce those regulations. This is particularly true for large for-profit, multi-facility providers. The extensive federal, state and local laws and regulations affecting the healthcare industry include those relating to, among other things, licensure, conduct of operations, ownership of facilities, addition of facilities and equipment, allowable costs, services, prices for services, qualified beneficiaries, quality of care, patient rights, fraudulent or abusive behavior, and financial and other arrangements that may be entered into by healthcare providers. Changes in enforcement policies by federal and state governments have resulted in a significant increase in the number of inspections, citations of regulatory deficiencies and other regulatory sanctions, including terminations from the Medicare and Medicaid programs, bars on Medicare and Medicaid payments for new admissions, civil monetary penalties and even criminal penalties.
If our tenants or operators fail to comply with the extensive laws, regulations and other requirements applicable to their businesses and the operation of our properties, they could become ineligible to receive reimbursement from governmental and private third-party payor programs, face bans on admissions of new patients or residents, suffer civil or criminal penalties or be required to make significant changes to their operations. Our tenants and operators also could be forced to expend considerable resources responding to an investigation, lawsuit or other enforcement action under applicable laws or regulations. In such event, the results of operations and financial condition of our tenants and operators and the results of operations of our properties operated by those entities could be adversely affected, which, in turn, could have a material adverse effect on us. We are unable to predict future federal, state and local regulations and legislation, including the Medicare and Medicaid statutes and regulations, or the intensity of enforcement efforts with respect to such regulations and legislation, and any changes in the regulatory framework could have a material adverse effect on our tenants, which, in turn, could have a material adverse effect on us.
Our tenants and operators depend on reimbursement from governmental and other third-party payor programs, and reimbursement rates from such payors may be reduced.
Many of our tenants and operators depend on third-party payors, including Medicare, Medicaid or private third-party payors, for the majority of their revenue. The reduction in reimbursement rates from third-party payors, including insurance companies and the Medicare and Medicaid programs, or other measures reducing reimbursements for services provided by our tenants and operators, may result in a reduction in our tenants’ and operators’ revenues and operating margins. In addition, reimbursement from private third-party payors may be reduced as a result of retroactive adjustment during claims settlement processes or as a result of post-payment audits. Furthermore, new laws and regulations could impose additional limitations on government and private payments to healthcare providers. For example, our tenants and operators may be affected by health reform initiatives that modify certain payment systems to encourage more cost-effective care and a reduction of inefficiencies and waste (e.g., the implementation of a voluntary bundled payment program and the creation of accountable care organizations). We cannot assure you that adequate reimbursement levels will continue to be available for the services provided by our tenants and operators. Although moderate reimbursement rate reductions may not affect our tenants’ ability to meet their financial obligations to us, significant limits on reimbursement rates or on the services reimbursed could have a material adverse effect on their business, financial position or results of operations, which could materially adversely affect their ability to meet their financial obligations to us.
While reimbursement rates have generally increased over the past few years, President Biden and members of the U.S. Congress may approve or propose new legislation, regulation changes and reform initiatives that could result in changes (including substantial reductions in funding) to Medicare, Medicaid or Medicare Advantage Plans. In addition, a number of states are currently managing budget deficits, which may put pressure on states to decrease reimbursement rates for our tenants and operators with a goal of decreasing state expenditures under their state Medicaid programs. Any such existing or future federal or state legislation relating to deficit reduction that reduces reimbursement payments to healthcare providers could have
16


a material adverse effect on our tenants’ and operators’ business, financial position or results of operations, which could materially adversely affect their ability to meet their financial obligations to us and could have a material adverse effect on us.
We face potential adverse consequences of bankruptcy or insolvency by our tenants, operators, borrowers, managers and other obligors.
We are exposed to the risk that our tenants could become bankrupt or insolvent. Although our lease agreements provide us with the right to exercise certain remedies in the event of default on the obligations owing to us or upon the occurrence of certain insolvency events, the bankruptcy and insolvency laws afford certain rights to a party that has filed for bankruptcy or reorganization. For example, a lessee may reject its lease with us in a bankruptcy proceeding. In such a case, our claim against the lessee for unpaid and future rents would be limited by the statutory cap of the U.S. Bankruptcy Code. This statutory cap could be substantially less than the remaining rent actually owed under the lease, and any claim we have for unpaid rent might not be paid in full. In addition, a lessee may assert in a bankruptcy proceeding that its lease should be re-characterized as a financing agreement. If such a claim is successful, our rights and remedies as a lender, compared to a landlord, are generally more limited.
We may be unable to find a replacement tenant for one or more of our leased properties.
We may need to find a replacement tenant for one or more of our leased properties for a variety of reasons, including upon the expiration of the lease term or the occurrence of a tenant default. During any period in which we are attempting to locate one or more replacement tenants, there could be a decrease or cessation of rental payments on the applicable property or properties. We cannot be sure that any of our current or future tenants will elect to renew their respective leases upon expiration of the terms thereof. Similarly, we cannot be sure that we will be able to locate a suitable replacement tenant or, if we are successful in locating a replacement tenant, that the rental payments from the new tenant would not be significantly less than the existing rental payments. Our ability to locate a suitable replacement tenant may be significantly delayed or limited by various state licensing, receivership, certificate of need or other laws, as well as by Medicare and Medicaid change-of-ownership rules. We also may incur substantial additional expenses in connection with any such licensing, receivership or change-of-ownership proceedings. Any such delays, limitations and expenses could delay or impact our ability to collect rent, obtain possession of leased properties or otherwise exercise remedies for default, which could materially adversely affect our business, financial condition and results of operations.
Potential litigation and rising insurance costs may affect our tenants’ and operators’ ability to obtain and maintain adequate liability and other insurance and their ability to make lease payments and fulfill their insurance and indemnification obligations to us.
Our tenants and operators may be subject to lawsuits filed by advocacy groups that monitor the quality of care at healthcare facilities or by patients, facility residents or their families. Significant damage awards are possible in cases where neglect has been found. This litigation has increased our tenants’ and operators’ costs of monitoring and reporting quality of care and has resulted in increases in the cost of liability and medical malpractice insurance. These increased costs may materially adversely affect our tenants’ and operators’ ability to obtain and maintain adequate liability and other insurance; manage related risk exposures; fulfill their insurance, indemnification and other obligations to us under their leases or property management agreements, as applicable; or make lease payments to us, as applicable. In addition, from time to time, we may be subject to claims brought against us in lawsuits and other legal proceedings arising out of our alleged actions or the alleged actions of our tenants and operators for which such tenants or operators may have agreed to indemnify, defend and hold us harmless. An unfavorable resolution of any such pending or future litigation could materially adversely affect our liquidity, financial condition and results of operations and have a material adverse effect on us in the event that we are not ultimately indemnified by our tenants or operators.
Regulatory Risks
Required regulatory approvals can delay or prohibit transfers of our healthcare properties, which could result in periods in which we are unable to receive rent for such properties.
Our tenants are operators of skilled nursing and other healthcare facilities, which operators must be licensed under applicable state law and, depending upon the type of facility, certified or approved as providers under the Medicare and/or Medicaid programs. Prior to the transfer of the operations of such healthcare properties to successor operators, the new operator generally must become licensed under state law and, in certain states, receive change-of-ownership approvals under certificate of need laws (which laws provide for a certification that the state has made a determination that a need exists for the beds located on the applicable property). If applicable, Medicare and Medicaid provider approvals may be needed as well. In the event that an existing lease is terminated or expires and a new tenant is found, then any delays in the new tenant receiving regulatory approvals from the applicable federal, state or local government agencies, or the inability of such tenant to receive
17


such approvals, may prolong the period during which we are unable to collect the applicable rent. We could also incur substantial additional expenses in connection with any licensing, receivership or change-of-ownership proceedings.
Environmental compliance costs and liabilities associated with real estate properties owned by us may materially impair the value of those investments.
As an owner of real property, we or our subsidiaries are subject to various federal, state and local environmental and health and safety laws and regulations. Although we do not currently operate or manage the substantial majority of our properties, we or our subsidiaries may be held primarily or jointly and severally liable for costs relating to the investigation and clean-up of any property where there has been a release or threatened release of a hazardous regulated material as well as other affected properties, regardless of whether we knew of or caused the release. In addition to these costs, which are typically not limited by law or regulation and could exceed an affected property’s value, we could be liable for certain other costs, including governmental fines and injuries to persons, property or natural resources. Further, some environmental laws provide for the creation of a lien on a contaminated site in favor of the government as security for damages and any costs the government incurs in connection with such contamination and associated clean-up.
Although we require our operators and tenants to undertake to indemnify us for environmental liabilities they cause, the amount of such liabilities could exceed the financial ability of the tenant or operator to indemnify us. The presence of contamination or the failure to remediate contamination may adversely affect our ability to sell or lease the real estate or to borrow using the real estate as collateral.
Investment and Financing Risks
We depend on investments in the healthcare property sector, making our profitability more vulnerable to a downturn or slowdown in that specific sector than if we were investing in multiple industries.
We concentrate our investments in the healthcare property sector. As a result, we are subject to risks inherent to investments in a single industry, in real estate, and specifically in healthcare properties. A downturn or slowdown in the healthcare property sector would have a greater adverse impact on our business than if we had investments in multiple industries. Specifically, a downturn in the healthcare property sector could negatively impact the ability of our tenants, operators and borrowers to meet their obligations to us, as well as the ability to maintain rental and occupancy rates. This could adversely affect our business, financial condition and results of operations. In addition, a downturn in the healthcare property sector could adversely affect the value of our properties and our ability to sell properties at prices or on terms acceptable to us.
We have substantial indebtedness and have the ability to incur significant additional indebtedness and other liabilities.
As of December 31, 2020, we had outstanding indebtedness of $2.4 billion, which consisted of $1.3 billion of Senior Notes (as defined below), $1.1 billion in Term Loans (as defined below) and aggregate secured indebtedness to third parties of $80.2 million on certain of our properties, and we had $1.0 billion available for borrowing under our Revolving Credit Facility. In addition, as of December 31, 2020, the Enlivant Joint Venture had outstanding indebtedness of $776.6 million. Our high level of indebtedness may have the following important consequences to us:
It may increase our cost of borrowing;
It may limit our ability to obtain additional financing to fund future acquisitions, working capital, capital expenditures or other general corporate requirements;
It may expose us to the risk of increased interest rates under debt instruments subject to variable rates of interest, such as our Revolving Credit Facility;
It may adversely impact our credit ratings;
It may limit our ability to adjust rapidly to changing market conditions and we may be vulnerable in the event of a downturn in general economic conditions or in the real estate and/or healthcare sectors;
It may place us at a competitive disadvantage against less leveraged competitors;
It may restrict the way in which we conduct our business because of financial and operating covenants in the agreements governing our existing and future indebtedness;
It may become more difficult for us to satisfy our obligations (including ongoing interest payments and, where applicable, scheduled amortization payments) with respect to the Senior Notes and our other debt; and
It may require us to sell assets and properties at an inopportune time.
In addition, the Senior Notes Indentures (as defined below) permit us to incur substantial additional debt, including secured debt (to which the Senior Notes will be effectively subordinated). If we incur additional debt, the related risks described
18


above could intensify. Furthermore, the Senior Notes Indentures do not impose any limitation on our ability to incur liabilities that are not considered indebtedness under the Senior Notes Indentures.
The impact of any of these potential adverse consequences could have a material adverse effect on our results of operations, financial condition, and liquidity.
We may be unable to service our indebtedness.
Our ability to make scheduled payments on and to refinance our indebtedness depends on and is subject to our future financial and operating performance, which in turn is affected by general and regional economic, financial, competitive, business and other factors beyond our control, including the availability of financing in the international banking and capital markets. Our business may fail to generate sufficient cash flow from operations or future borrowings may be unavailable to us under our Revolving Credit Facility or from other sources in an amount sufficient to enable us to service our debt, to refinance our debt or to fund our other liquidity needs. If we are unable to meet our debt obligations or to fund our other liquidity needs, we will need to restructure or refinance all or a portion of our debt. We may be unable to refinance any of our debt, including our Term Loans and any amounts outstanding under our Revolving Credit Facility, on commercially reasonable terms or at all. In particular, our Term Loans and our Revolving Credit Facility will mature prior to the maturity of the majority of the Senior Notes. If we were unable to make payments or refinance our debt or obtain new financing under these circumstances, we would have to consider other options, such as asset sales, equity issuances and/or negotiations with our lenders to restructure the applicable debt. Our Credit Agreement and the Senior Notes Indentures restrict, and market or business conditions may limit, our ability to take some or all of these actions. Any restructuring or refinancing of our indebtedness could be at higher interest rates and may require us to comply with more onerous covenants that could further restrict our business operations.
Covenants in our debt agreements restrict our and our subsidiaries activities and could adversely affect our business.
Our debt agreements, including the agreement governing our 2027 Notes (as defined below) and the Credit Agreement, contain various covenants that limit our ability and the ability of our subsidiaries to engage in various transactions including:
Incurring additional secured and unsecured debt;
Paying dividends or making other distributions on, redeeming or repurchasing capital stock;
Entering into transactions with affiliates;
Issuing stock of or interests in subsidiaries;
Engaging in non-healthcare related business activities;
Creating restrictions on the ability of certain of our subsidiaries to pay dividends or other amounts to us;
Selling assets; or
Effecting a consolidation or merger or selling substantially all of our assets.
The agreement governing our 2027 Notes also restricts us from making certain investments. The indentures governing our 2024 Notes, our 2026 Notes and our 2029 Notes (each as defined below) contain certain of the above restrictions as well. These covenants limit our operational flexibility and could prevent us from taking advantage of business opportunities as they arise, growing our business or competing effectively. In addition, the Credit Agreement requires us to comply with specified financial covenants, which include a maximum leverage ratio, a minimum fixed charge coverage ratio and a minimum tangible net worth ratio, as well as satisfy other financial condition tests. The indentures governing the 2024 Notes and 2029 Notes require us to comply with an unencumbered asset ratio, and the agreement governing our 2027 Notes requires us to comply with specified financial covenants, which include a maximum leverage ratio, a maximum secured debt leverage ratio, a maximum unsecured debt leverage ratio, a minimum fixed charge coverage ratio, a minimum net worth, a minimum unsecured interest coverage ratio and a minimum unencumbered debt yield ratio. Our ability to meet these requirements may be affected by events beyond our control, and we may not meet these requirements.
A breach of any of the covenants or other provisions in our debt agreements could result in an event of default, which, if not cured or waived, could result in such debt becoming immediately due and payable. Further, certain change in control events could result in an event of default under the agreement governing our 2027 Notes. Any of these events of default, in turn, could cause our other debt to become due and payable as a result of cross-acceleration provisions contained in the agreements governing such other debt. We may be unable to maintain compliance with these covenants and, if we fail to do so, we may be unable to obtain waivers from the lenders and holders and/or amend the covenants. In the event that some or all of our debt is accelerated and becomes immediately due and payable, we may not have the funds to repay, or the ability to refinance, such debt.
19


 An increase in market interest rates could increase our interest costs on borrowings on our Revolving Credit Facility and future debt and could adversely affect our stock price.
If interest rates increase, so could our interest costs for borrowings on our Revolving Credit Facility and any new debt. This increased cost could make the financing of any acquisition more costly. Rising interest rates could limit our ability to refinance existing debt when it matures or cause us to pay higher interest rates upon refinancing. In addition, an increase in interest rates could decrease the access third parties have to credit, thereby decreasing the amount they are willing to pay for our assets, and consequently limit our ability to reposition our portfolio promptly in response to changes in economic or other conditions.
In addition, increased inflation may have a pronounced negative impact on the interest expense we pay in connection with our outstanding indebtedness and our general and administrative expenses, as these costs could increase at a rate higher than our rents.
Changes in the method pursuant to which the LIBOR rates are determined and phasing out of LIBOR beginning after 2021 may affect our financial results.
Our Credit Agreement uses LIBOR as a reference rate for our U.S. dollar Term Loans and Revolving Credit Facility, such that the interest rate applicable to such loans may, at our option, be calculated based on LIBOR. In July 2017, the U.K.’s Financial Conduct Authority, which regulates LIBOR, announced that it intends to phase out LIBOR beginning after the end of 2021. The U.S. Federal Reserve has begun publishing a Secured Overnight Funding Rate, which is intended to replace U.S. dollar LIBOR. Plans for alternative reference rates for other currencies have also been announced. At this time, we cannot predict how markets will respond to these proposed alternative rates or the effect of any changes to LIBOR or the discontinuation of LIBOR. If LIBOR is no longer available or if our lenders have increased costs due to changes in LIBOR, we may experience potential increases in interest rates on our variable rate debt, which could adversely impact our interest expense, results of operations and cash flows. In addition, although not expected, replacing LIBOR with an alternative reference rate for any of our debt (or other changes to our debt in connection with such replacement) could be a taxable event.
Our ability to raise capital through equity financings is dependent, in part, on the market price of our common stock, which depends on market conditions and other factors affecting REITs generally.
Our ability to raise capital through equity financings depends, in part, on the market price of our common stock, which in turn depends on fluctuating market conditions and other factors including the following:
The reputation of REITs and attractiveness of their equity securities in comparison with other equity securities, including securities issued by other real estate companies;
Our financial performance and that of our tenants;
Concentrations in our investment portfolio by tenant and property type;
Concerns about our tenants’ financial condition, including as a result of uncertainty regarding reimbursement from governmental and other third-party payor programs;
Our ability to meet or exceed investor expectations of prospective investment and earnings targets;
The contents of analyst reports about us and the REIT industry;
Changes in interest rates on fixed-income securities, which may lead prospective investors to demand a higher annual yield from investments in our common stock;
Maintaining or increasing our dividend, which is determined by our board of directors and depends on our financial position, results of operations, cash flows, capital requirements, debt covenants (which include limits on distributions by us), applicable law, and other factors as our board of directors deems relevant; and
Regulatory action and changes in REIT tax laws.
The market value of a REIT’s equity securities is generally based upon the market’s perception of the REIT’s growth potential and its current and potential future earnings and cash distributions. If we fail to meet the market’s expectation with regard to future earnings and cash distributions, the market price of our common stock could decline, and our ability to raise capital through equity financings could be materially adversely affected.
We may be adversely affected by fluctuations in foreign currency exchange rates.
Our ownership of properties in Canada subjects us to fluctuations in the exchange rate between U.S. dollars and Canadian dollars. Although we have pursued hedging alternatives, by borrowing in Canadian dollar denominated debt and entering into cross currency swaps, to protect against foreign currency fluctuations, no amount of hedging activity can fully insulate us from the risks associated with changes in foreign currency exchange rates, and the failure to hedge effectively against foreign
20


currency exchange rate risk could materially adversely affect our business, financial position or results of operations. In addition, any income derived from such hedging transactions may not qualify under the 75% gross income test or the 95% gross income test that we must satisfy annually in order to qualify and maintain our status as a REIT.
We may not be able to sell properties when we desire because real estate investments are relatively illiquid, which could have a material adverse effect on our business, financial position or results of operations.
Real estate investments generally cannot be sold quickly. In addition, some and potentially substantially all of our properties serve as collateral for our current and future secured debt obligations and cannot readily be sold unless the underlying secured indebtedness is concurrently repaid. We may not be able to vary our portfolio promptly in response to changes in the real estate market. A downturn in the real estate market could materially adversely affect the value of our properties and our ability to sell such properties for acceptable prices or on other acceptable terms. We also cannot predict the length of time needed to find a willing purchaser and to close the sale of a property or portfolio of properties. These factors and any others that would impede our ability to respond to adverse changes in the performance of our properties could have a material adverse effect on our business, financial position or results of operations.
We are subject to risks and liabilities in connection with our 49% equity interest in the Enlivant Joint Venture.
As of December 31, 2020, our investment portfolio included 158 properties owned through the Enlivant Joint Venture. The Enlivant Joint Venture involves risks not present with respect to our wholly owned properties, including the following:
We may be unable to take specific major actions, or such actions may be delayed, if the counterparty to the Enlivant Joint Venture disagrees with such action, due to arrangements that require us to share decision-making authority over major decisions affecting the ownership or operation of the Enlivant Joint Venture and any property owned by the Enlivant Joint Venture, such as the sale or financing of the property or the making of additional capital contributions for the benefit of the property;
The counterparty to the Enlivant Joint Venture may take actions with which we disagree;
Under our joint venture agreement for the Enlivant Joint Venture, the counterparty in the Enlivant Joint Venture has the right to transfer its 51% equity interest in the Enlivant Joint Venture, subject to our right of first offer, and also has the right to require us to sell our interest in the Enlivant Joint Venture in the same transaction pursuant to a drag-along obligation; in the event that the counterparty in the Enlivant Joint Venture wishes to transfer its interest, we would need to decide between acquiring the 51% equity interest at that time or potentially being required to sell some or all of our own 49% equity interest in a sale to a third party;
Our ability to sell or transfer our interest in the Enlivant Joint Venture on advantageous terms when we so desire may be limited or restricted under the terms of our agreements with the counterparty in the Enlivant Joint Venture;
We may be required to contribute additional capital if the counterparty in the Enlivant Joint Venture fails to fund its share of required capital contributions;
Our equity interest in the Enlivant Joint Venture will be adversely impacted if the Enlivant Joint Venture is not able to maintain compliance with the terms of the agreements underlying its indebtedness, the outstanding balance of which indebtedness was $776.6 million as of December 31, 2020;
The counterparty to the Enlivant Joint Venture might have economic or other business interests or goals that are inconsistent with our business interests or goals, including with respect to the timing, terms and strategies for investment, which could increase the likelihood of disputes regarding the ownership, management or disposition of the properties owned by the Enlivant Joint Venture;
Disagreements with the counterparty to the Enlivant Joint Venture could result in litigation or arbitration that increases our expenses, distracts our officers and directors, and disrupts the day-to-day operations of the properties owned by the Enlivant Joint Venture, including by delaying important decisions until the dispute is resolved; and
We may suffer losses to our investment in the Enlivant Joint Venture as a result of actions taken by the counterparty to the Enlivant Joint Venture.
Risks Associated with Our Status as a REIT
Our failure to maintain our qualification as a REIT would subject us to U.S. federal income tax, which could adversely affect the value of the shares of our common stock and would substantially reduce the cash available for distribution to our stockholders.
Our qualification and taxation as a REIT will depend upon our ability to meet on a continuing basis, through actual annual operating results, certain qualification tests set forth in the U.S. federal tax laws. Accordingly, given the complex nature of the rules governing REITs, the ongoing importance of factual determinations, including the potential tax treatment of
21


investments we make, and the possibility of future changes in our circumstances, no assurance can be given that our actual results of operations for any particular taxable year will satisfy such requirements.
If we fail to qualify as a REIT in any calendar year, we would be required to pay U.S. federal income tax (and any applicable state and local tax) on our taxable income at regular corporate rates, and dividends paid to our stockholders would not be deductible by us in computing our taxable income (although such dividends received by certain non-corporate U.S. taxpayers generally would currently be subject to a preferential rate of taxation). Further, if we fail to qualify as a REIT, we might need to borrow money or sell assets in order to pay any resulting tax. Our payment of income tax would decrease the amount of our income available for distribution to our stockholders. Furthermore, if we fail to maintain our qualification as a REIT, we no longer would be required under U.S. federal tax laws to distribute substantially all of our REIT taxable income to our stockholders. Unless our failure to qualify as a REIT was subject to relief under U.S. federal tax laws, we could not re-elect to qualify as a REIT until the fifth calendar year following the year in which we failed to qualify.
The 90% distribution requirement will decrease our liquidity and may limit our ability to engage in otherwise beneficial transactions.
To comply with the 90% taxable income distribution requirement applicable to REITs and to avoid the nondeductible excise tax, we must make distributions to our stockholders. The Senior Notes Indentures permit us to declare or pay any dividend or make any distribution that is necessary to maintain our REIT status if the aggregate principal amount of all outstanding Indebtedness of the Parent and its Restricted Subsidiaries on a consolidated basis at such time is less than 60% of Adjusted Total Assets (as each term is defined in the Senior Notes Indentures) and to make additional distributions if we pass certain other financial tests.
We are required under the Internal Revenue Code of 1986, as amended (the “Code”) to distribute at least 90% of our taxable income, determined without regard to the dividends-paid deduction and excluding any net capital gain, and the Operating Partnership (as defined below) is required to make distributions to us to allow us to satisfy these REIT distribution requirements. However, distributions may limit our ability to rely upon rental payments from our properties or subsequently acquired properties to finance investments, acquisitions or new developments.
Although we anticipate that we generally will have sufficient cash or liquid assets to enable us to satisfy the REIT distribution requirement, it is possible that, from time to time, we may not have sufficient cash or other liquid assets to meet the 90% distribution requirement. This may be due to the timing differences between the actual receipt of income and actual payment of deductible expenses, on the one hand, and the inclusion of that income and deduction of those expenses in arriving at our taxable income, on the other hand. Moreover, the 2017 Tax Act amends the Code such that income must be accrued for U.S. federal income tax purposes no later than when such income is taken into account as revenue in our financial statements, subject to certain exceptions, which could also create timing differences between net taxable income and the receipt of cash attributable to such income. In addition, non-deductible expenses such as principal amortization or repayments or capital expenditures in excess of non-cash deductions also may cause us to fail to have sufficient cash or liquid assets to enable us to satisfy the 90% distribution requirement.
In the event that such an insufficiency occurs, in order to meet the 90% distribution requirement and maintain our status as a REIT, we may have to sell assets at unfavorable prices, borrow at unfavorable terms, make taxable stock dividends, or pursue other strategies. This may require us to raise additional capital to meet our obligations. The terms of our Credit Agreement and the terms of the Senior Notes Indentures may restrict our ability to engage in some of these transactions.
We could fail to qualify as a REIT if income we receive is not treated as qualifying income, including as a result of one or more of the lease agreements we have entered into or assumed not being characterized as true leases for U.S. federal income tax purposes, which would subject us to U.S. federal income tax at corporate tax rates.
Under applicable provisions of the Code, we will not be treated as a REIT unless we satisfy various requirements, including requirements relating to the sources of our gross income. Rents received or accrued by us will not be treated as qualifying rent for purposes of these requirements if the lease agreements we have entered into or assumed (as well as any other leases we enter into or assume) are not respected as true leases for U.S. federal income tax purposes and are instead treated as service contracts, joint ventures, loans or some other type of arrangement. In the event that the lease agreements entered into with lessees are not characterized as true leases for U.S. federal income tax purposes, we may fail to qualify as a REIT. In addition, rents received by us from a lessee will not be treated as qualifying rent for purposes of these requirements if we are treated, either directly or under the applicable attribution rules, as owning 10% or more of the lessee’s stock, capital or profits. We will be treated as owning, under the applicable attribution rules, 10% or more of a lessee’s stock, capital or profits at any time that a stockholder owns, directly or under the applicable attribution rules, (a) 10% or more of our common stock and (b) 10% or more of the lessee’s stock, capital or profits. The provisions of our charter restrict the transfer and ownership of our common stock that would cause the rents received or accrued by us from a tenant of ours to be treated as non-qualifying rent for
22


purposes of the REIT gross income requirements. Nevertheless, there can be no assurance that such restrictions will be effective in ensuring that we will not be treated as related to a tenant of ours. If we fail to qualify as a REIT, we would be subject to U.S. federal income tax (including any applicable minimum tax for taxable years beginning before December 31, 2017) on our taxable income at corporate tax rates, which would decrease the amount of cash available for distribution to holders of our common stock.
Complying with REIT requirements may cause us to forego otherwise attractive acquisition opportunities or liquidate otherwise attractive investments, which could materially hinder our performance.
To qualify as a REIT for U.S. federal income tax purposes, we must continually satisfy certain tests, including tests concerning the sources of our income, the nature and diversification of our assets, the amounts we distribute to our stockholders and the ownership of our stock. In order to meet these tests, we may be required to forego investments or acquisitions we might otherwise make. Thus, compliance with the REIT requirements may materially hinder our performance.
The tax imposed on REITs engaging in “prohibited transactions” may limit our ability to engage in transactions which would be treated as sales for federal income tax purposes.
A REIT’s net income from prohibited transactions is subject to a 100% penalty tax. In general, prohibited transactions are sales or other dispositions of property, other than foreclosure property, held primarily for sale to customers in the ordinary course of business. Although we do not intend to hold any properties that would be characterized as held for sale to customers in the ordinary course of our business, unless a sale or disposition qualifies under certain statutory safe harbors, such characterization is a factual determination and no guarantee can be given that the Internal Revenue Service (“IRS”) would agree with our characterization of our properties or that we will always be able to make use of the available safe harbors.
If we have significant amounts of non-cash taxable income, we may have to declare taxable stock dividends or make other non-cash distributions, which could cause our stockholders to incur tax liabilities in excess of cash received.
We currently intend to pay dividends in cash only, and not in-kind. However, if for any taxable year, we have significant amounts of taxable income in excess of available cash flow, we may have to declare dividends in-kind in order to satisfy the REIT annual distribution requirements. We may distribute a portion of our dividends in the form of our stock or our debt instruments. In either event, a holder of our common stock will be required to report dividend income as a result of such distributions even though we distributed no cash or only nominal amounts of cash to such stockholder.
The IRS issued a Revenue Procedure treating certain distributions that are paid by an SEC-registered REIT partly in cash and partly in shares as dividends that would satisfy the REIT annual distribution requirement and qualify for the dividends paid deduction for U.S. federal income tax purposes so long as at least 20% of the total dividend is available in cash. However, if we make such a distribution, U.S. holders would be required to include the full amount of the dividend (i.e., the cash and stock portion) as ordinary income to the extent of our current and accumulated earnings and profits for U.S. federal income tax purposes. As a result, a U.S. holder may be required to pay income taxes with respect to such dividends in excess of the cash received. If a U.S. holder sells our stock that it receives as a dividend in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of the stock at the time of the sale. Furthermore, with respect to non-U.S. holders, we may be required to withhold U.S. tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in stock. In addition, if a significant number of our stockholders determine to sell shares of our stock in order to pay taxes owed on dividends, these sales may put downward pressure on the trading price of our stock. No assurance can be given that the IRS will not impose additional requirements in the future with respect to taxable dividends payable in cash and/or stock, including on a retroactive basis, or assert that the requirements for such taxable dividends have not been met.
Our charter restricts the transfer and ownership of our stock, which may restrict change of control or business combination opportunities in which our stockholders might receive a premium for their shares.
In order for us to maintain our qualification as a REIT, no more than 50% of the value of our outstanding stock may be owned, directly or constructively, by five or fewer individuals, as defined in the Code. For the purpose of preserving our REIT qualification, our charter prohibits, subject to certain exceptions, beneficial and constructive ownership of more than 9.9% in value or in number of shares, whichever is more restrictive, of our outstanding common stock or more than 9.9% in value of all classes or series of our outstanding stock. The constructive ownership rules are complex and may cause shares of stock owned directly or constructively by a group of related individuals to be constructively owned by one individual or entity. The ownership limits may have the effect of discouraging an acquisition of control of us without the approval of our board of directors.
23


We may be subject to adverse legislative or regulatory tax changes that could reduce the market price of our common stock.
The rules dealing with U.S. federal income taxation are constantly under review by persons involved in the legislative process and by the IRS and the U.S. Department of the Treasury. Changes to the tax law could materially adversely affect our stockholders. In particular, the 2017 Tax Act significantly reforms the Code with respect to the taxation of both individuals and corporate entities (although certain changes will expire at the end of 2025) and the tax consequences of such changes as they apply to us and our stockholders may differ, in some cases materially, from the consequences under the laws in effect prior to January 1, 2018. In addition, the new presidential administration may propose changes to the tax law that could adversely impact us or our stockholders. We cannot predict with certainty whether, when, in what forms, or with what effective dates, the tax laws applicable to us or our stockholders may be changed.
Dividends payable by REITs do not qualify for the reduced tax rates available for some dividends.
The maximum income tax rate applicable to “qualified dividends” payable by non-REIT corporations to domestic stockholders taxed at individual rates is currently 20%. Dividends payable by REITs, however, generally are not eligible for the reduced rates. For taxable years after December 31, 2017 and continuing through 2025, the 2017 Tax Act temporarily reduces the maximum individual federal income tax rate from 39.6% to 37% and the effective tax rate on ordinary REIT dividends (i.e., dividends other than capital gain dividends and dividends attributable to certain qualified dividend income received by us) for U.S. holders of our common shares that are individuals, estates or trusts by permitting such holders to claim a deduction in determining their taxable income equal to 20% of any such dividends they receive. Although not adversely affecting the taxation of REITs or dividends payable by REITs, the more favorable rates applicable to regular corporate qualified dividends could cause investors who are taxed at individual rates to perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends treated as qualified dividend income, which could adversely affect the value of the stock of REITs, including our common stock.
Our ownership of and relationship with any taxable REIT subsidiaries that we have formed or will form will be limited and a failure to comply with the limits would jeopardize our REIT status and may result in the application of a 100% excise tax.
A REIT may own up to 100% of the stock of one or more taxable REIT subsidiaries (“TRSs”). A TRS may earn income that would not be qualifying income if earned directly by the parent REIT. Both the subsidiary and the REIT must jointly elect to treat the subsidiary as a TRS. A corporation (other than a REIT) of which a TRS directly or indirectly owns securities possessing more than 35% of the total voting power or total value of the outstanding securities of such corporation will automatically be treated as a TRS. Overall, no more than 25% of the value of a REIT’s total assets may consist of stock or securities of one or more TRSs. Under the 2017 Tax Act, such overall limitation on the value of a REIT’s total assets consisting of stock or securities of one or more TRSs was reduced to 20%. A domestic TRS will pay U.S. federal, state and local income tax at regular corporate rates on any income that it earns, but as a result of the enactment of the 2017 Tax Act, as modified by the Coronavirus Aid, Relief, and Economic Security Act enacted in March 2020 (the “CARES Act”), net operating loss (“NOL”) carryforwards of TRS losses arising in taxable years beginning after December 31, 2020 may be deducted only to the extent of 80% of TRS taxable income in the carryforward year (computed without regard to the NOL deduction). In contrast to prior law, which permitted unused NOL carryforwards to be carried back two years and forward 20 years, the 2017 Tax Act, as modified by the CARES Act, provides that losses arising in taxable years ending after December 31, 2020 can no longer be carried back but can be carried forward indefinitely. In addition, for taxable years beginning after December 31, 2017, taxpayers, including TRSs, may be subject to a limitation on their ability to deduct net business interest generally equal to 30% of adjusted taxable income, subject to certain exceptions. However, the CARES Act generally increased the 30% limitation to a 50% limitation for any taxable year beginning in 2019 and 2020. This provision may limit the ability of our TRSs to deduct interest, which could increase their taxable income. The rules also impose a 100% excise tax on certain transactions between a TRS and its parent REIT that are not conducted on an arm’s length basis. Any domestic TRS that we have formed or may form will pay U.S. federal, state and local income tax on its taxable income, and its after-tax net income will be available for distribution to us but is not required to be distributed to us unless necessary to maintain our REIT qualification.
General Risk Factors
We rely on information technology in our operations, and any material failure, inadequacy, interruption or security failure of that technology could harm our business.
We rely on information technology networks and systems, including the Internet, to process, transmit and store electronic information, and to manage or support a variety of business processes, including financial transactions and records, personal identifying information, tenant and lease data. We purchase some of our information technology from vendors, on whom our systems depend. We rely on commercially available systems, software, tools and monitoring to provide security for processing, transmission and storage of confidential tenant, borrower and operator information, some of which may include individually identifiable information, including information relating to financial accounts. Although we have taken steps to protect the
24


security of our information systems and the data maintained in those systems, it is possible that our safety and security measures will not be able to prevent the systems’ improper functioning or damage, or the improper access or disclosure of personally identifiable information such as in the event of cyber-attacks. Security breaches (including physical or electronic break-ins, computer viruses, phishing attacks, computer denial-of-service attacks, worms, covert introduction of malware to computers and networks, impersonation of authorized users, and efforts to discover and exploit any design flaws, bugs, security vulnerabilities or security weaknesses, as well as intentional or unintentional acts by our team members or other insiders with access privileges, intentional acts of vandalism by third parties and sabotage) can create system disruptions, shutdowns or unauthorized disclosure of confidential information. Any failure to maintain proper function, security and availability of our information systems could interrupt our operations, damage our reputation, subject us to liability claims or regulatory penalties and could have a material adverse effect on our business, financial condition and results of operations.
Provisions of the Maryland General Corporation Law (the MGCL) and of our charter and bylaws could inhibit a change of control of Sabra or reduce the value of our stock.
Certain provisions of Maryland law, our charter and our bylaws may have an anti-takeover effect. Sabra is subject to the Maryland business combination statute, which, subject to certain limitations, impose a moratorium on business combinations with “interested stockholders” or affiliates thereof for five years and thereafter impose additional requirements on such business combinations. Our bylaws contain a provision exempting us from the control share provisions of the MGCL, which provide that holders of “control shares” of a corporation (defined as voting shares of stock that, if aggregated with all other shares of stock owned or controlled by the acquirer, would entitle the acquirer to exercise one of three increasing ranges of voting power in electing directors) acquired in a “control share acquisition” (defined as the direct or indirect acquisition of issued and outstanding “control shares”) have no voting rights except to the extent approved by the stockholders by the affirmative vote of at least two-thirds of all of the votes entitled to be cast on the matter, excluding all interested shares. There can be no assurance that this bylaw provision exempting us from the control share provisions will not be amended or eliminated at any time in the future. Additionally, Title 3, Subtitle 8 of the MGCL permits our Board of Directors, without stockholder approval and regardless of what currently is provided in our charter or bylaws, to implement certain takeover defenses, such as a classified board, some of which we do not have.
We have also adopted other measures that may make it difficult for a third party to obtain control of us, including provisions of our charter authorizing our board of directors (all without stockholder approval) to classify or reclassify shares of our stock in one or more classes or series, to cause the issuance of additional shares of our stock, and to amend our charter to increase or decrease the number of shares of stock that we have authority to issue. Our charter contains transfer and ownership restrictions on the percentage by number and value of outstanding shares of our stock that may be owned or acquired by any stockholder.
Our bylaws require advance notice of stockholder proposals and director nominations. These provisions, as well as other provisions of our charter and bylaws, may delay, defer, or prevent a transaction or a change in control that might otherwise be in the best interests of our stockholders.
Our bylaws provide that the Circuit Court for Baltimore City, Maryland or the United States District Court for the District of Maryland, Baltimore Division will be the sole and exclusive forum for substantially all disputes between our company and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with our company or our directors, officers or other team members.
Our bylaws provide that, unless we consent in writing to the selection of an alternative forum, the Circuit Court for Baltimore City, Maryland, or, if that court does not have jurisdiction, the United States District Court for the District of Maryland, Baltimore Division, will be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of our company, (ii) any action asserting a claim of breach of any duty owed by any director or officer or other team member of our company to our company or to the stockholders of our company, (iii) any action asserting a claim against our company or any director or officer or other team member of our company arising pursuant to any provision of Maryland law, our charter or our bylaws, or (iv) any action asserting a claim against our company or any director or officer or other team member of our company that is governed by the internal affairs doctrine. This exclusive forum provision is intended to apply to claims arising under Maryland state law and would not apply to claims brought pursuant to the Exchange Act or the Securities Act of 1933, or any other claim for which the federal courts have exclusive jurisdiction. This exclusive forum provision will not relieve us of our duties to comply with the federal securities laws and the rules and regulations thereunder, and our stockholders will not be deemed to have waived our compliance with these laws, rules and regulations.
This exclusive forum provision may limit a stockholder’s ability to bring a claim in a judicial forum of its choosing for disputes with our company or our directors, officers or other team members, which may discourage lawsuits against our company and our directors, officers and other team members. In addition, stockholders who do bring a claim in the Circuit
25


Court for Baltimore City, Maryland could face additional litigation costs in pursuing any such claim, particularly if they do not reside in or near Maryland. The Circuit Court for Baltimore City, Maryland may also reach different judgments or results than would other courts, including courts where a stockholder would otherwise choose to bring the action, and such judgments or results may be more favorable to our company than to our stockholders. However, the enforceability of similar exclusive forum provisions in other companies’ charters and bylaws has been challenged in legal proceedings, and it is possible that a court could find this type of provision to be inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings. If a court were to find the exclusive forum provision contained in our bylaws to be inapplicable or unenforceable in an action, we might incur additional costs associated with resolving such action in other jurisdictions.

ITEM 1B. UNRESOLVED STAFF COMMENTS
Not applicable.

ITEM 2. PROPERTIES    
As of December 31, 2020, our investment portfolio consisted of 426 real estate properties held for investment (consisting of (i) 287 skilled nursing/transitional care facilities, (ii) 65 Senior Housing - Leased communities, (iii) 47 Senior Housing - Managed communities and (iv) 27 specialty hospitals and other facilities), one investment in a sales-type lease, 18 investments in loans receivable (consisting of (i) one mortgage loan, (ii) one construction loan and (iii) 16 other loans), six preferred equity investments and our 49% equity interest in the Enlivant Joint Venture. As of December 31, 2020, our real estate properties held for investment included 42,059 beds/units, spread across the U.S. and Canada. As of December 31, 2020, the substantial majority of our real estate properties (excluding 47 Senior Housing - Managed communities) were leased under triple-net operating leases with expirations ranging from less than one year to 16 years.
The following table displays the expiration of annualized contractual rental revenues under our lease agreements as of December 31, 2020, net of repositioning reserves, if applicable, by year and property type (dollars in thousands) and, in each case, without giving effect to any renewal options:
 
Skilled Nursing/Transitional Care (1)
Senior Housing - Leased Specialty Hospitals and Other Total Annualized Revenues % of Revenue
2021 (1)
$ —  $ 501  $ —  $ 501  0.1  %
2022 24,724  5,140  —  29,864  7.0  %
2023 9,074  —  —  9,074  2.1  %
2024 21,586  2,397  —  23,983  5.6  %
2025 15,294  3,202  1,308  19,804  4.6  %
2026 28,768  1,317  —  30,085  7.1  %
2027 41,444  —  33,538  74,982  17.6  %
2028 15,086  8,113  4,037  27,236  6.4  %
2029 58,891  5,739  5,691  70,321  16.5  %
2030 13,903  —  2,976  16,879  4.0  %
Thereafter 93,228  23,152  7,007  123,387  29.0  %
Total Annualized Revenues $ 321,998  $ 49,561  $ 54,557  $ 426,116  100.0  %
(1)    All 2021 lease expirations are in the fourth quarter.
26


We believe that all of our properties are adequately covered by insurance and are suitable for their intended uses as described in “Business—Portfolio of Healthcare Properties” in Part I, Item 1.
Occupancy Trends
The following table sets forth the occupancy percentages for our properties for the periods indicated:
Occupancy Percentage (1)
2020 2019 2018
Skilled Nursing/Transitional Care 77.3  % 82.1  % 82.8  %
Senior Housing - Leased 83.1  % 87.0  % 86.7  %
Specialty Hospitals and Other 75.3  % 71.0  % 76.7  %
Senior Housing - Managed 80.0  % 87.7  % 91.5  %
Unconsolidated Joint Venture Senior Housing - Managed 71.6  % 82.2  % 81.7  %
(1)    Occupancy percentage represents the facilities’ average operating occupancy for the period indicated and is calculated by dividing the actual census from the period presented by the available beds/units for the same period. Occupancy percentage includes only facilities owned by Sabra as of the end of the respective period for the duration that such facilities were classified as stabilized facilities and excludes facilities for which data is not available or meaningful. Occupancy is only included in periods subsequent to our acquisition and is presented for the trailing twelve month period and one quarter in arrears, except for Senior Housing - Managed, which is presented for the current period on a trailing three month basis. All facility financial performance information was provided by, or derived solely from information provided by, operators/tenants without independent verification by us.
You should not rely upon occupancy percentages, either individually or in the aggregate, to determine the performance of a facility. Other factors that may impact the performance of a facility include the sources of payment, terms of reimbursement and the acuity level of the patients (i.e., the condition of patients that determines the level of skilled nursing and rehabilitation therapy services required).
See “Business—Portfolio of Healthcare Properties” in Part I, Item 1 for further discussion regarding the ownership of our properties and the types of healthcare facilities that comprise our properties.
Secured Indebtedness
As of December 31, 2020 and 2019, 13 and 16 of our properties held for investment were subject to secured indebtedness to third parties, respectively. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Secured Indebtedness” in Part II, Item 7 for further discussion regarding our secured indebtedness. As of December 31, 2020 and 2019, our secured debt consisted of the following (dollars in thousands):
Principal Balance as of December 31, (1)
Weighted Average Interest Rate at December 31, (2)
Interest Rate Type 2020 2019 2020 2019 Maturity Date
Fixed Rate $ 80,199  $ 114,777  3.39  % 3.67  % December 2021 - 
August 2051
(1)    Principal balance does not include deferred financing costs, net of $1.1 million and $1.7 million as of December 31, 2020 and 2019, respectively.
(2)    Weighted average interest rate includes private mortgage insurance.
Corporate Office
We are headquartered and have our corporate office in Irvine, California. We lease our corporate office from an unaffiliated third party.

ITEM 3. LEGAL PROCEEDINGS
For a description of our legal proceedings, see Note 15, “Commitments and Contingencies—Legal Matters” in the Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K, which is incorporated by reference in response to this item.

ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.

27



PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Stockholder Information
Our common stock is listed on The Nasdaq Stock Market LLC and trades on the Nasdaq Global Select Market under the symbol “SBRA.”
At February 17, 2021, we had approximately 4,982 stockholders of record.
We did not repurchase any shares of our common stock during the quarter ended December 31, 2020.
To maintain REIT status, we are required each year to distribute to stockholders at least 90% of our annual REIT taxable income after certain adjustments. All distributions will be made by us at the discretion of our board of directors and will depend on our financial position, results of operations, cash flows, capital requirements, debt covenants (which include limits on distributions by us), applicable law, and other factors as our board of directors deems relevant. For example, while the Senior Notes Indentures and the Credit Agreement permit us to declare and pay any dividend or make any distribution that is necessary to maintain our REIT status, those distributions are subject to certain financial tests under the Senior Notes Indentures, and therefore, the amount of cash distributions we can make to our stockholders may be limited.
Distributions with respect to our common stock and preferred stock can be characterized for federal income tax purposes as taxable ordinary dividends, which may be non-qualified, long-term capital gain, or qualified, non-dividend distributions (return of capital) or a combination thereof. Following is the characterization of our annual cash dividends on common stock and preferred stock per share:
Year Ended December 31,
Common Stock 2020 2019 2018
Non-qualified ordinary dividends $ 1.0247  $ 0.9098  $ 1.0905 
Qualified ordinary dividends 0.0155  0.0367  0.0112 
Long-term capital gains —  —  0.2132 
Unrecaptured Section 1250 —  —  0.4851 
Non-dividend distributions 0.3098  0.8535  — 
$ 1.3500  $ 1.8000  $ 1.8000 
Year Ended
Preferred Stock (1)
December 31, 2018
Non-qualified ordinary dividends $ 0.4496 
Qualified ordinary dividends 0.0047 
Long-term capital gains 0.0879 
Unrecaptured Section 1250 0.2000 
$ 0.7422 
(1) We redeemed all outstanding shares of our Series A Preferred Stock on June 1, 2018. See Note 11, “Equity,” in the Notes to Consolidated Financial Statements for additional information.
28


Stock Price Performance Graph
The following graph compares the cumulative total stockholder return of our common stock for the five-year period ending December 31, 2020. The graph assumes that $100 was invested at the close of market on December 31, 2015 in (i) our common stock, (ii) the Nasdaq Composite Index and (iii) the SNL US Healthcare REIT Index and assumes the reinvestment of all dividends. Stock price performances shown in the graph are not necessarily indicative of future price performances.
SBRA-20201231_G1.JPG
The above performance graph shall not be deemed to be soliciting material or to be filed with the SEC under the Securities Act of 1933 or the Securities Exchange Act of 1934 or incorporated by reference in any document as filed.

29


ITEM 6. SELECTED FINANCIAL DATA
The following table sets forth our selected financial data and other data for our company on a historical basis. The following data should be read in conjunction with our audited consolidated financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere herein. Our historical operating results may not be comparable to our future operating results. The comparability of our selected financial data is significantly affected by our merger with Care Capital Properties (“CCP”) and our other acquisitions, new investments and dispositions from 2016 through 2020. See Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
As of December 31,
2020 2019 2018 2017 2016
(Dollars in thousands, except per share data)
Balance sheet data:
Total real estate investments, net $ 5,285,038  $ 5,341,370  $ 5,853,545  $ 5,994,432  $ 2,009,939 
Loans receivable and other investments, net $ 102,839  $ 107,374  $ 113,722  $ 114,390  $ 96,036 
Investment in unconsolidated joint venture $ 288,761  $ 319,460  $ 340,120  $ —  $ — 
Cash and cash equivalents $ 59,076  $ 39,097  $ 50,230  $ 518,632  $ 25,663 
Total assets $ 5,985,603  $ 6,069,299  $ 6,665,303  $ 7,032,277  $ 2,265,919 
Secured debt, net $ 79,065  $ 113,070  $ 115,679  $ 256,430  $ 160,752 
Revolving credit facility $ —  $ —  $ 624,000  $ 641,000  $ 26,000 
Term loans, net $ 1,044,916  $ 1,040,258  $ 1,184,930  $ 1,190,774  $ 335,673 
Senior unsecured notes, net $ 1,248,393  $ 1,248,773  $ 1,307,394  $ 1,306,286  $ 688,246 
Total liabilities $ 2,576,375  $ 2,580,839  $ 3,410,556  $ 3,595,028  $ 1,250,310 
Total Sabra Health Care REIT, Inc. stockholders’ equity $ 3,409,228  $ 3,488,460  $ 3,250,414  $ 3,432,807  $ 1,015,574 
Operating data:
Total revenues $ 598,569  $ 661,736  $ 623,409  $ 408,281  $ 268,250 
Net income attributable to common stockholders $ 138,417  $ 68,996  $ 269,314  $ 148,141  $ 60,034 
Net income attributable to common stockholders per share, basic $ 0.67  $ 0.37  $ 1.51  $ 1.40  $ 0.92 
Net income attributable to common stockholders per share, diluted $ 0.67  $ 0.37  $ 1.51  $ 1.40  $ 0.92 
Other data:
Cash flows provided by operations $ 354,852  $ 372,475  $ 360,586  $ 135,789  $ 175,928 
Cash flows (used in) provided by investing activities $ (136,451) $ 262,844  $ (258,494) $ (182,560) $ 142,363 
Cash flows (used in) provided by financing activities $ (202,109) $ (646,180) $ (629,344) $ 598,817  $ (300,898)
Dividends declared and paid per common share $ 1.35  $ 1.80  $ 1.80  $ 1.73  $ 1.67 
Weighted-average number of common shares outstanding, basic 206,223,503  187,172,210  178,305,738  105,621,242  65,284,251 
Weighted-average number of common shares outstanding, diluted—net income and FFO attributable to common stockholders 207,252,830  188,127,092  178,721,744  105,842,434  65,520,672 
Weighted-average number of common shares outstanding, diluted—AFFO attributable to common stockholders 208,039,530  188,775,872  179,338,881  106,074,862  65,904,435 
FFO attributable to common stockholders (1)
$ 346,526  $ 393,310  $ 355,002  $ 211,267  $ 164,439 
Diluted FFO attributable to common stockholders per common share (1)
$ 1.67  $ 2.09  $ 1.99  $ 2.00  $ 2.51 
AFFO attributable to common stockholders (1)
$ 361,166  $ 392,775  $ 379,037  $ 242,278  $ 161,465 
Diluted AFFO attributable to common stockholders per common share (1)
$ 1.74  $ 2.08  $ 2.11  $ 2.28  $ 2.45 
(1)    We believe that net income attributable to common stockholders as defined by U.S. generally accepted accounting principles (“GAAP”) is the most appropriate earnings measure. We also believe that funds from operations attributable to common stockholders (“FFO”), as defined in accordance with the definition used by the National Association of Real Estate Investment Trusts (“Nareit”), and adjusted funds from operations attributable to common stockholders (“AFFO”) (and related per share amounts) are important non-GAAP supplemental measures of our operating performance. We consider FFO and AFFO to be useful measures for reviewing comparative operating and financial performance because, by excluding gains or losses from real estate dispositions and our share of gains or losses from real estate dispositions related to the Enlivant Joint Venture, real estate depreciation and amortization, net of amounts related to noncontrolling interests, plus our share of depreciation and amortization related to the Enlivant Joint Venture, and real estate
30


impairment charges, and for AFFO, by 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 our share of non-cash adjustments related to the Enlivant Joint Venture, FFO and AFFO can help investors compare our operating performance between periods or as compared to other companies. See further discussion of FFO and AFFO in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Funds from Operations and Adjusted Funds from Operations” in Part II, Item 7.

31


ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
The discussion below contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those which are discussed in Part I, Item 1A, “Risk Factors.” Also see “Statement Regarding Forward-Looking Statements” preceding Part I.
The following discussion and analysis should be read in conjunction with Part II, Item 6, “Selected Financial Data” above and our accompanying consolidated financial statements and the notes thereto.
Our Management’s Discussion and Analysis of Financial Condition and Results of Operations is organized as follows:
Overview
Critical Accounting Policies
Recently Issued Accounting Standards Update
Results of Operations
Liquidity and Capital Resources
Concentration of Credit Risk
Skilled Nursing Facility Reimbursement Rates
Obligations and Commitments
Impact of Inflation
Off-Balance Sheet Arrangements
Quarterly Financial Data
Overview
We expect to grow our investment portfolio while diversifying our portfolio by tenant, facility type and geography within the healthcare sector. We plan to achieve these objectives primarily through making investments directly or indirectly in healthcare real estate, including the development of purpose-built healthcare facilities with select developers. We also intend to achieve our objective of diversifying our portfolio by tenant and facility type through select asset sales and other arrangements with our tenants.
COVID-19
In March 2020, the World Health Organization declared COVID-19 a pandemic, and the United States declared a national emergency with respect to COVID-19. In the intervening months, COVID-19 has spread globally and led governments and other authorities around the world, including federal, state and local authorities in the United States, to impose measures intended to control its spread, including restrictions on freedom of movement and business operations such as travel bans, border closings, business closures, quarantines and shelter-in-place orders. Although some of these governmental restrictions have since been lifted or scaled back, a recent surge of COVID-19 infections has resulted in the re-imposition of certain restrictions and may lead to other restrictions being re-implemented in response to efforts to reduce the spread of COVID-19. In December 2020, distribution of the COVID-19 vaccine began to all 50 states, and while states have the authority over who receives the vaccine, the Centers for Disease Control and Prevention recommended that the initial distribution prioritize healthcare workers and residents of long-term care facilities. However, governmental restrictions may remain in place for a significant amount of time. The ongoing COVID-19 pandemic and measures intended to prevent its spread have negatively impacted and are expected to continue to negatively impact us and our operations in a number of ways, including but not limited to:
Decreased occupancy and increased operating costs for our tenants and borrowers, which have negatively impacted their operating results and may adversely impact their ability to make full and timely rental payments and debt service payments, respectively, to us. In some cases, we may have to restructure tenants’ long-term rent obligations and may not be able to do so on terms that are as favorable to us as those currently in place. Reduced or modified rental and debt service amounts could result in the determination that the full amounts of our investments are not recoverable, which could result in an impairment charge. To date, the impact of COVID-19 on our skilled nursing/transitional care facility operators has been significantly mitigated by the assistance they have received or expect to receive from state and federal assistance programs, including through the CARES Act (as defined and further described below under “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Skilled Nursing Facility Reimbursement Rates” in Part II, Item 7), although these benefits on an individual operator
32


basis vary and may not provide enough relief to meet their rental obligations to us. As of September 1, 2020, eligible assisted living facility operators may apply for funding through the CARES Act, and the assistance received or expected to be received will partially mitigate the negative impact of COVID-19 on our eligible assisted living facility operators. As of December 31, 2020, our tenants and borrowers have continued to pay expected cash rents and debt service obligations consistent with past practice. However, the longer the duration of the COVID-19 pandemic, the more likely that our tenants and borrowers will begin to default on these obligations. Such defaults could materially and adversely affect our results of operations and liquidity, in addition to resulting in potential impairment charges.
Decreased occupancy and increased operating costs within our Senior Housing - Managed portfolio and in the Enlivant Joint Venture, which have negatively impacted and are expected to continue to negatively impact the operating results of these investments. As noted above, as of September 1, 2020, eligible assisted living facility operators may apply for funding through the CARES Act, and the assistance received or expected to be received will partially mitigate the negative impact of COVID-19 on our Senior Housing - Managed portfolio and the Enlivant Joint Venture. In addition, on October 1, 2020, the Department of Health and Human Services announced $20 billion of new funding for assisted living facility operators that have already received funds and to those who were previously ineligible. During the year ended December 31, 2020, we recognized government grants under the CARES Act and other programs of $5.3 million. Prolonged deterioration in the operating results for our investments in its Senior Housing - Managed portfolio and the Enlivant Joint Venture could result in the determination that the full amounts of our investments are not recoverable, which could result in an impairment charge.
Our financial results as of and for the year ended December 31, 2020 reflect the results of our evaluation of the impact of COVID-19 on our business including, but not limited to, our evaluation of potential impairments of long-lived or other assets, measurement of credit losses on financial instruments, evaluation of any lease modifications, evaluation of lease accounting impact, estimates of fair value and our ability to continue as a going concern.
Acquisitions
During the year ended December 31, 2020, we acquired three Senior Housing - Leased communities and one Senior Housing - Managed community for an aggregate $113.7 million. See Note 3, “Recent Real Estate Acquisitions,” in the Notes to Consolidated Financial Statements for additional information regarding these acquisitions.
Dispositions
During the year ended December 31, 2020, we completed the sale of eight skilled nursing/transitional care facilities for aggregate consideration, net of closing costs, of $50.0 million. The net carrying value of the assets and liabilities of these facilities was $47.1 million, which resulted in an aggregate $2.9 million net gain on sale.
Critical Accounting Policies
Below is a discussion of the accounting policies that management considers critical in that they involve significant management judgments and assumptions, require estimates about matters that are inherently uncertain and because they are important for understanding and evaluating our reported financial results. These judgments affect the reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in our financial statements. Additionally, other companies may utilize different estimates that may impact the comparability of our results of operations to those of companies in similar businesses. For more information regarding our critical accounting policies, see Note 2, “Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements.
Principles of Consolidation and Basis of Presentation
The consolidated financial statements include the accounts of Sabra and our wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements are prepared in accordance with GAAP.
GAAP requires us to identify entities for which control is achieved through voting rights or other means and to determine which business enterprise is the primary beneficiary of variable interest entities (“VIEs”). A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity’s activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors
33


have voting rights that are not proportional to their economic interests, and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. If we were determined to be the primary beneficiary of the VIE, we would consolidate investments in the VIE. We may change our original assessment of a VIE due to events such as modifications of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk and the disposal of all or a portion of an interest held by the primary beneficiary.
We identify the primary beneficiary of a VIE as the enterprise that has both: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could be significant to the entity. We perform this analysis on an ongoing basis.
As it relates to investments in loans, in addition to our assessment of VIEs and whether we are the primary beneficiary of those VIEs, we evaluate the loan terms and other pertinent facts to determine whether the loan investment should be accounted for as a loan or as a real estate joint venture. If an investment has the characteristics of a real estate joint venture, including if we participate in the majority of the borrower’s expected residual profit, we would account for the investment as an investment in a real estate joint venture and not as a loan investment. Expected residual profit is defined as the amount of profit, whether called interest or another name, such as an equity kicker, above a reasonable amount of interest and fees expected to be earned by a lender.
As it relates to investments in joint ventures, we assess any limited partners’ rights and their impact on the presumption of control of the limited partnership by any single partner. We also apply this guidance to managing member interests in limited liability companies. We reassess our determination of which entity controls the joint venture if: there is a change to the terms or in the exercisability of the rights of any partners or members, the sole general partner or managing member increases or decreases its ownership interests, or there is an increase or decrease in the number of outstanding ownership interests.
Real Estate Investments and Rental Revenue Recognition
Real Estate Acquisition Valuation
All assets acquired and liabilities assumed in an acquisition of real estate accounted for as a business combination are measured at their acquisition date fair values. For acquisitions of real estate accounted for as an asset acquisition, the fair value of consideration transferred by us (including transaction costs) is allocated to all assets acquired and liabilities assumed on a relative fair value basis. The acquisition value of land, building and improvements are included in real estate investments on the consolidated balance sheets. The acquisition value of above market lease, tenant origination and absorption costs and tenant relationship intangible assets is included in lease intangible assets, net on the consolidated balance sheets. The acquisition value of below market lease intangible liabilities is included in lease intangible liabilities, net on the consolidated balance sheets. Acquisition costs associated with real estate acquisitions deemed asset acquisitions are capitalized, and costs associated with real estate acquisitions deemed business combinations are expensed as incurred.
Estimates of the fair values of the tangible assets, identifiable intangibles and assumed liabilities require us to make significant assumptions to estimate market lease rates, property operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, and the number of years the property will be held for investment. We make our best estimate based on our evaluation of the specific characteristics of each tenant’s lease. The use of inappropriate assumptions would result in an incorrect valuation of our acquired tangible assets, identifiable intangibles and assumed liabilities, which would impact the amount of our net income.
Impairment of Real Estate Investments
We regularly monitor events and changes in circumstances that could indicate that the carrying amounts of our real estate investments may not be recoverable or realized. When indicators of potential impairment suggest that the carrying value of real estate investments may not be recoverable, we assess the recoverability by estimating whether we will recover the carrying value of our real estate investments through the future cash flows and the eventual disposition of the investment. In some instances, there may be various potential outcomes for an investment and its potential future cash flows. In these instances, the future cash flows used to assess recoverability are based on several assumptions and are probability-weighted based on our best estimates as of the date of evaluation. These assumptions include, among others, cash flow projections, holding period, market capitalization rates, and letters of intent, purchase and sale agreements and recent sales data for comparable properties. When necessary, a discount rate assumption may be used to determine fair value. The assumptions are generally based on management’s experience in its local real estate markets, and the effects of current market conditions, which are subject to economic and market uncertainties. If, based on this analysis, we do not believe that we will be able to recover the carrying value of our real estate investments, we would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of our real estate investments.
34


Revenue Recognition
We recognize rental revenue from tenants, including rental abatements, lease incentives and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related leases when it is probable that substantially all rents over the life of a lease are collectible. Certain of our leases provide for contingent rents equal to a percentage of the facility’s revenue in excess of specified base amounts or other thresholds. Such revenue is recognized when actual results reported by the tenant, or estimates of tenant results, exceed the applicable base amount or other threshold.
We assess the collectability of rents on a lease-by-lease basis, and in doing so, consider such things as historical bad debts, tenant creditworthiness, current economic trends, facility operating performance, lease structure, credit enhancements (including guarantees), current developments relevant to a tenant’s business specifically and to its business category generally, and changes in tenants’ payment patterns. Our assessment includes an estimation of a tenant’s ability to fulfill all of its rental obligations over the remaining lease term. In addition, with respect to tenants in bankruptcy, management makes estimates of the expected recovery of pre-petition and post-petition claims in assessing the estimated collectability of the related receivable. If at any time we cannot determine that it is probable that substantially all rents over the life of a lease are collectible, rental revenue will be recognized only to the extent of payments received, and all receivables associated with the lease will be written off irrespective of amounts expected to be collectible. Any recoveries of these amounts will be recorded in future periods upon receipt of payment. Write-offs of receivables and any recoveries of previously written-off receivables are recorded as adjustments to rental revenue.
Revenue from resident fees and services is recorded monthly as services are provided and includes resident room and care charges, ancillary services charges and other resident charges.
Loans Receivable and Interest Income
Loans Receivable
Loans receivable are reflected at amortized cost on our consolidated balance sheets. The amortized cost of a loan receivable is the outstanding unpaid principal balance, net of unamortized discounts, costs and fees directly associated with the origination of the loan.
Loans acquired in connection with a business combination are recorded at their acquisition date fair value. We determine the fair value of loans receivable based on estimates of expected discounted cash flows, collateral, credit risk and other factors. A valuation allowance is not established at the acquisition date, as the amount of estimated future cash flows reflects our judgment regarding their uncertainty. The difference between the acquisition date fair value and the total expected cash flows is recognized as interest income using the effective interest method over the life of the applicable loan. Any unamortized balances are immediately recognized in income if the loan is repaid before its contractual maturity.
On a quarterly basis, we evaluate the collectability of our loan portfolio, including the portion of unfunded loan commitments expected to be funded, and establish an allowance for credit losses. The allowance for credit losses is calculated using the related amortization schedules, payment histories and loan-to-value ratios. The following rates are applied to determine the aggregate expected losses, which is recorded as the allowance for credit losses: (i) a default rate, (ii) a liquidation cost rate and (iii) a distressed property reduction rate. If no loan-to-value ratio is available, a loss severity rate is applied in place of the liquidation cost rate and the distressed property reduction rate. The default rate is based on average charge-off and delinquency rates from the Federal Reserve, and the other rates are based on industry research and historical performance of a similar portfolio of financial assets. The allowance for credit losses is a valuation allowance that reflects management’s estimate of losses inherent in the loan portfolio as of the balance sheet date. The reserve is adjusted through provision for loan losses and other reserves on our consolidated statements of income and is decreased by charge-offs to specific loans when losses are confirmed.
Interest Income
Interest income on our loans receivable is recognized on an accrual basis over the life of the investment using the interest method. Direct loan origination costs are amortized over the term of the loan as an adjustment to interest income. When concerns exist as to the ultimate collection of principal or interest due under a loan, the loan is placed on nonaccrual status, and we will not recognize interest income until the cash is received, or the loan returns to accrual status. If we determine that the collection of interest according to the contractual terms of the loan or through the receipts of assets in satisfaction of contractual amounts due is probable, we will resume the accrual of interest. In instances where borrowers are in default under the terms of their loans, we may continue recognizing interest income provided that all amounts owed under the contractual terms of the loan, including accrued and unpaid interest, do not exceed the estimated fair value of the collateral, less costs to sell.
35


On a quarterly basis, we evaluate the collectability of our interest income receivable and establish a reserve for amounts not expected to be collected. Our evaluation includes reviewing credit quality indicators such as payment status, changes affecting the operations of the facilities securing the loans, and national and regional economic factors. The reserve is a valuation allowance that reflects management’s estimate of losses inherent in the interest income receivable balance as of the balance sheet date. The reserve is adjusted through provision for loan losses and other reserves on our consolidated statements of income and is decreased by charge-offs to specific receivables when losses are confirmed.
Preferred Equity Investments and Preferred Return
Preferred equity investments are accounted for at unreturned capital contributions, plus accrued and unpaid preferred returns. We recognize preferred return income on a monthly basis based on the outstanding investment including any previously accrued and unpaid return. As a preferred member of the preferred equity joint ventures in which we participate, we are not entitled to share in the joint venture’s earnings or losses. Rather, we are entitled to receive a preferred return, which is deferred if the cash flow of the joint venture is insufficient to currently pay the accrued preferred return.
We regularly monitor events and changes in circumstances that could indicate that the carrying amounts of our preferred equity investments may not be recoverable or realized. On a quarterly basis, we evaluate our preferred equity investments for impairment based on a comparison of the fair value of the investment to its carrying value. The fair value is estimated based on discounted cash flows that include all estimated cash inflows and outflows over a specified holding period. If, based on this analysis, we do not believe that we will be able to recover the carrying value of our preferred equity investment, we would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of our preferred equity investment.
Income Taxes
We elected to be treated as a REIT with the filing of our U.S. federal income tax return for the taxable year beginning January 1, 2011. We believe that we have been organized and have operated, and we intend to continue to operate, in a manner to qualify as a REIT. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our annual REIT taxable income to stockholders (which is computed without regard to the dividends-paid deduction or net capital gains and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, we generally will not be subject to federal income tax on income that we distribute as dividends to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost, unless the IRS grants us relief under certain statutory provisions. Such an event could materially and adversely affect our net income and net cash available for distribution to stockholders. However, we believe that we are organized and operate in such a manner as to qualify for treatment as a REIT.
As a result of certain investments, we now record income tax expense or benefit with respect to certain of our entities that are taxed as taxable REIT subsidiaries under provisions similar to those applicable to regular corporations and not under the REIT provisions.
We account for deferred income taxes using the asset and liability method and recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in our financial statements or tax returns. Under this method, we determine deferred tax assets and liabilities based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Any increase or decrease in the deferred tax liability that results from a change in circumstances, and that causes a change in our judgment about expected future tax consequences of events, is included in the tax provision when such changes occur. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards. A valuation allowance is provided if we believe it is more likely than not that all or some portion of the deferred tax asset will not be realized. Any increase or decrease in the valuation allowance that results from a change in circumstances, and that causes a change in our judgment about the realizability of the related deferred tax asset, is included in the tax provision when such changes occur.
We evaluate our tax positions using a two-step approach: step one (recognition) occurs when we conclude that a tax position, based solely on its technical merits, is more likely than not to be sustained upon examination, and step two (measurement) is only addressed if step one has been satisfied (i.e., the position is more likely than not to be sustained). Under step two, the tax benefit is measured as the largest amount of benefit (determined on a cumulative probability basis) that is more likely than not to be realized upon ultimate settlement. We will recognize tax penalties relating to unrecognized tax benefits as additional tax expense.
36


Fair Value Measurements
Under GAAP, we are required to measure certain financial instruments at fair value on a recurring basis. In addition, we are required to measure other financial instruments and balances at fair value on a non-recurring basis (e.g., carrying value of impaired loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories:
Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities;
Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and
Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable.
When available, we utilize quoted market prices from an independent third-party source to determine fair value and classify such items in Level 1 or Level 2. In instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require us to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When we determine the market for a financial instrument owned by us to be illiquid or when market transactions for similar instruments do not appear orderly, we may use several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) to establish a fair value. If more than one valuation source is used, we will assign weights to the various valuation sources. Additionally, when determining the fair value of liabilities in circumstances in which a quoted price in an active market for an identical liability is not available, we measure fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities or similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach.
Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument.
We consider the following factors to be indicators of an inactive market: (i) there are few recent transactions, (ii) price quotations are not based on current information, (iii) price quotations vary substantially either over time or among market makers (for example, some brokered markets), (iv) indexes that previously were highly correlated with the fair values of the asset or liability are demonstrably uncorrelated with recent indications of fair value for that asset or liability, (v) there is a significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) for observed transactions or quoted prices when compared with our estimate of expected cash flows, considering all available market data about credit and other nonperformance risk for the asset or liability, (vi) there is a wide bid-ask spread or significant increase in the bid-ask spread, (vii) there is a significant decline or absence of a market for new issuances (that is, a primary market) for the asset or liability or similar assets or liabilities, and (viii) little information is released publicly (for example, a principal-to-principal market).
We consider the following factors to be indicators of non-orderly transactions: (i) there was not adequate exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities under current market conditions, (ii) there was a usual and customary marketing period, but the seller marketed the asset or liability to a single market participant, (iii) the seller is in or near bankruptcy or receivership (that is, distressed), or the seller was required to sell to meet regulatory or legal requirements (that is, forced), and (iv) the transaction price is an outlier when compared with other recent transactions for the same or similar assets or liabilities.
Recently Issued Accounting Standards Update
See Note 2, “Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements for information concerning recently issued accounting standards updates.
37


Results of Operations
As of December 31, 2020, our investment portfolio consisted of 426 real estate properties held for investment, one investment in a sales-type lease, 18 investments in loans receivable, six preferred equity investments and our 49% equity interest in the Enlivant Joint Venture. As of December 31, 2019, our investment portfolio consisted of 429 real estate properties held for investment, one investment in a direct financing lease, 18 investments in loans receivable, nine preferred equity investments and our 49% equity interest in the Enlivant Joint Venture. In general, we expect that income and expenses related to our portfolio will fluctuate in future periods in comparison to the corresponding prior periods as a result of investment and disposition activity and anticipated future changes in our portfolio. The results of operations presented are not directly comparable due to ongoing acquisition and disposition activity.
A discussion of our results of operations for the year ended December 31, 2018 is included in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Comparison of results of operations for the years ended December 31, 2019 and 2018” section in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2019.
Comparison of results of operations for the years ended December 31, 2020 and 2019 (dollars in thousands):
For the Year Ended December 31, Increase / (Decrease) Percentage Difference
Variance due to Acquisitions, Originations and Dispositions (1)
Remaining Variance (2)
2020 2019
Revenues:
Rental and related revenues $ 430,584  $ 452,138  $ (21,554) (5) % $ (396) $ (21,158)
Interest and other income 11,940  81,540  (69,600) (85) % (2,071) (67,529)
Resident fees and services 156,045  128,058  27,987  22  % 8,692  19,295 
Expenses:
Depreciation and amortization 176,737  181,549  (4,812) (3) % 692  (5,504)
Interest 100,424  126,610  (26,186) (21) % (761) (25,425)
Triple-net portfolio operating expenses 20,590  22,215  (1,625) (7) % (1,186) (439)
Senior housing - managed portfolio operating expenses 110,963  86,257  24,706  29  % 6,372  18,334 
General and administrative 32,755  30,886  1,869  % —  1,869 
Provision for loan losses and other reserves 1,855  1,238  617  50  % —  617 
Impairment of real estate 4,003  121,819  (117,816) (97) % (104,404) (13,412)
Other income (expense):
Loss on extinguishment of debt (531) (16,340) 15,809  (97) % (531) 16,340 
Other income 2,154  2,094  60  % —  60 
Net gain on sales of real estate 2,861  2,300  561  24  % 561  — 
Loss from unconsolidated joint venture (16,599) (6,796) (9,803) 144  % (1,591) (8,212)
Income tax expense (710) (3,402) 2,692  (79) % —  2,692 
(1)    Represents the dollar amount increase (decrease) for the year ended December 31, 2020 compared to the year ended December 31, 2019 as a result of investments/dispositions made after January 1, 2019.
(2)    Represents the dollar amount increase (decrease) for the year ended December 31, 2020 compared to the year ended December 31, 2019 that is not a direct result of investments/dispositions made after January 1, 2019.
Rental and Related Revenues
During the year ended December 31, 2020, we recognized $430.6 million of rental income compared to $452.1 million for the year ended December 31, 2019. The $21.6 million net decrease in rental income is related to (i) a $17.6 million decrease related to leases that we concluded should no longer be accounted for on an accrual basis, (ii) a $9.9 million decrease from the 21 Holiday communities and one Senior Housing - Leased community that were transitioned to Senior Housing - Managed communities in April 2019 and November 2019, respectively, and (iii) a $9.6 million decrease from properties disposed of after January 1, 2019. The $17.6 million decrease consists of a $13.6 million decrease in non-cash rental revenues, which includes $14.3 million in write-offs related to Signature Healthcare and Genesis Healthcare, Inc., whose leases are no longer accounted for on an accrual basis as a result of the going concern issues for these tenants, and a $4.0 million decrease in earned cash rents. These amounts were partially offset by (i) a $9.2 million increase from properties acquired after January 1, 2019 and (ii) a $3.2 million increase related to property tax recoveries.
38


Our reported rental and related revenues may be subject to increased variability in the future as a result of adopting Topic 842. However, there can be no assurances regarding the timing and amount of these collections. Amounts due under the terms of all of our lease agreements are subject to contractual increases, and contingent rental income may be derived from certain lease agreements. No material contingent rental income was derived during the years ended December 31, 2020 and 2019.
Interest and Other Income
Interest and other income primarily consists of income earned on our loans receivable investments, preferred returns earned on our preferred equity investments and income on the sales-type lease. During the year ended December 31, 2020, we recognized $11.9 million of interest and other income compared to $81.5 million for the year ended December 31, 2019. The net decrease of $69.6 million is due to (i) $66.9 million of income related to the transition of the 21 Holiday communities to our Senior Housing - Managed portfolio in April 2019, consisting of a $57.2 million lease termination payment and a $9.7 million gain related to the assumption of fixed assets net of liabilities, and (ii) a $3.0 million decrease in income from investments that were repaid after January 1, 2019, partially offset by a $0.9 million increase in income from investments made after January 1, 2019.
Resident Fees and Services
During the year ended December 31, 2020, we recognized $156.0 million of resident fees and services compared to $128.1 million for the year ended December 31, 2019. The $28.0 million net increase is due to (i) a $19.6 million increase from the 21 Holiday communities and one Senior Housing - Leased community that were transitioned to Senior Housing - Managed communities in April 2019 and December 2019, respectively, and (ii) a $8.7 million increase from two Senior Housing - Managed communities acquired after January 1, 2019. Included in resident fees and services is $1.8 million of government grant income recognized under the CARES Act and other programs during the year ended December 31, 2020.
Depreciation and Amortization
During the year ended December 31, 2020, we incurred $176.7 million of depreciation and amortization expense compared to $181.5 million for the year ended December 31, 2019. The $4.8 million net decrease is due to (i) a $5.7 million decrease due to the acceleration of lease intangible amortization related to the transition of the 21 Holiday communities to Senior Housing - Managed communities in April 2019 and (ii) a $5.1 million decrease from properties disposed of after January 1, 2019, partially offset by a $5.8 million increase from properties acquired after January 1, 2019.
Interest Expense
We incur interest expense comprised of costs of borrowings plus the amortization of deferred financing costs related to our indebtedness. During the year ended December 31, 2020, we incurred $100.4 million of interest expense compared to $126.6 million for the year ended December 31, 2019. The $26.2 million net decrease is related to (i) an aggregate $23.9 million decrease in interest expense related to the redemptions of the 5.5% senior unsecured notes due 2021 (the “2021 Notes”) in June 2019 and the 5.375% senior unsecured notes due 2023 (the “2023 Notes”) in October 2019, (ii) a $9.3 million decrease in interest expense related to the borrowings outstanding on the Revolving Credit Facility and decrease in interest rates, (iii) a $8.0 million decrease in interest expense related to the partial pay down of the U.S. dollar term loans and decrease in interest rates, (iv) a $1.6 million decrease in non-cash interest expense related to our interest rate hedges and (v) a $1.0 million decrease in interest expense related to three mortgage notes assumed during 2020 by the buyers of the facilities securing the debt and lower mortgage interest rates, which decreases were partially offset by an aggregate $17.4 million increase in interest expense related to the issuances of the 2024 Notes and 2029 Notes.
Triple-Net Portfolio Operating Expenses
During the year ended December 31, 2020, we recognized $20.6 million of triple-net portfolio operating expenses compared to $22.2 million for the year ended December 31, 2019. The $1.6 million net decrease is related to a $1.2 million decrease related to properties disposed of after January 1, 2019, and the remaining decrease is related to property taxes paid during the year ended December 31, 2020 on facilities that were transitioned to new operators who are now paying the property taxes directly.
Senior Housing - Managed Portfolio Operating Expenses
During the year ended December 31, 2020, we recognized $111.0 million of operating expenses compared to $86.3 million for the year ended December 31, 2019. The $24.7 million net increase is due to (i) a $14.5 million increase from the 21 Holiday communities and one Senior Housing - Leased community that were transitioned to Senior Housing - Managed communities in April 2019 and December 2019, respectively, and (ii) a $6.4 million increase from two Senior Housing -
39


Managed communities acquired after January 1, 2019. The remaining increase is due to increased supplies and labor needs related to the COVID-19 pandemic.
General and Administrative Expenses
General and administrative expenses include compensation-related expenses as well as professional services, office costs, other costs associated with asset management, and merger and acquisition costs. During the year ended December 31, 2020, general and administrative expenses were $32.8 million compared to $30.9 million during the year ended December 31, 2019. The $1.9 million net increase is related to (i) a $3.0 million increase in compensation for our team members as a result of increased staffing and certain of our team members electing to receive their annual bonus opportunity in cash and (ii) a $0.6 million increase in insurance expense due to an increase in premiums, partially offset by a $1.9 million decrease in stock-based compensation expense which is comprised of (a) a decrease of $1.6 million as the result of certain of our team members electing to receive their annual bonus opportunity in cash instead of stock and (b) a decrease of $0.3 million as a result in the reduction in stock price and a change in performance-based vesting assumptions on management’s equity compensation. The decrease in stock-based compensation related to certain of our team members electing to receive their annual bonus opportunity in cash instead of stock resulted in a corresponding increase to cash compensation and accordingly no net increase to general and administrative expenses. We expect stock-based compensation expense to fluctuate from period to period depending upon changes in our stock price and estimates associated with performance-based compensation.
Provision for Loan Losses and Other Reserves
During the year ended December 31, 2020, we recognized a $1.9 million provision for loan losses and other reserves associated with loan loss reserves. During the year ended December 31, 2019, we recognized a $1.2 million provision for loan losses and other reserves, all of which was associated with loan loss reserves.
Impairment of Real Estate
During the year ended December 31, 2020, we recognized $4.0 million of impairment of real estate related to one skilled nursing/transitional care facility sold during the year and three senior housing communities. During the year ended December 31, 2019, we recognized $121.8 million of impairment of real estate, consisting of (i) $95.2 million related to the 30 Senior Care Centers facilities that we sold and one additional Senior Care Centers facility that we transitioned to another operator, which amount included $10.2 million related to our estimated contractual indemnification obligations, and (ii) $26.6 million related to six skilled nursing/transitional care facilities that were subsequently sold, and four senior housing communities.
Loss on Extinguishment of Debt
During the year ended December 31, 2020, we recognized a $0.5 million loss on extinguishment of debt related to write-offs of deferred financing costs in connection with the sale of three facilities that secured three mortgage notes. During the year ended December 31, 2019, we recognized a $16.3 million loss on extinguishment of debt, consisting of (i) $10.1 million in connection with the redemption of the 2021 Notes, including $6.9 million in payments made to noteholders and legal fees for early redemption and $3.2 million of write-offs associated with unamortized deferred financing and premium costs, (ii) $5.6 million in connection with the redemption of the 2023 Notes, including $3.6 million in payments made to noteholders and legal fees for early redemption and $2.0 million of write-offs associated with unamortized deferred financing and premium costs and (iii) $0.6 million related to the write-off of unamortized deferred financing costs in connection with entering into the Credit Agreement.
Other Income
During the years ended December 31, 2020 and 2019, we recognized $2.2 million and $2.1 million, respectively, of other income related to settlement payments received related to legacy CCP investments.
Net Gain on Sales of Real Estate
During the year ended December 31, 2020, we recognized an aggregate net gain on the sales of real estate of $2.9 million related to the disposition of eight skilled nursing/transitional care facilities. During the year ended December 31, 2019, we recognized an aggregate net gain on the sales of real estate of $2.3 million related to the disposition of 39 skilled nursing/transitional care facilities and seven senior housing communities.
Loss from Unconsolidated Joint Venture
During the year ended December 31, 2020, we recognized $16.6 million of loss from the Enlivant Joint Venture compared to $6.8 million of loss for the year ended December 31, 2019. The $9.8 million net increase is related to (i) a $8.2 million
40


increase in operating expenses from the facilities owned by the Enlivant Joint Venture as of December 31, 2020 primarily due to increased supplies and labor needs related to the COVID-19 pandemic and increased insurance expense, (ii) a $6.1 million decrease in revenues from the facilities owned by the Enlivant Joint Venture as of December 31, 2020 due to decreases in occupancy, (iii) a $4.5 million depreciation adjustment related to our basis difference in the Enlivant Joint Venture, (iv) a $1.6 million increase in loss on sale related to the disposition of the 14 senior housing communities included in the Enlivant Joint Venture’s strategic disposition program and (v) a $0.9 million increase in expenses related to natural disaster recovery, partially offset by (i) a $6.2 million decrease in interest expense due to a decrease in interest rates, (ii) $3.5 million of government grant income recognized under the CARES Act and other programs and (iii) a $1.7 million decrease in deferred income tax due to lower taxable income. See Note 2, “Summary of Significant Accounting Policies—Out of Period Adjustments,” in the Notes to Consolidated Financial Statements for additional information.
Income Tax Expense
During the year ended December 31, 2020, we recognized $0.7 million of income tax expense compared to $3.4 million for the year ended December 31, 2019. The decrease is due to lower taxable income from Senior Housing - Managed communities.
Funds from Operations and Adjusted Funds from Operations
We believe that net income attributable to common stockholders as defined by GAAP is the most appropriate earnings measure. We also believe that FFO, as defined in accordance with the definition used by Nareit, and AFFO (and related per share amounts) are important non-GAAP supplemental measures of our 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 REIT that uses historical cost accounting for depreciation could be less informative. Thus, Nareit created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation and amortization, among other items, from net income attributable to common stockholders, as defined by GAAP. FFO is defined as net income attributable to common stockholders, computed in accordance with GAAP, excluding gains or losses from real estate dispositions and our share of gains or losses from real estate dispositions related to the Enlivant Joint Venture, plus real estate depreciation and amortization, net of amounts related to noncontrolling interests, plus our share of depreciation and amortization related to the Enlivant Joint Venture, and real estate impairment charges. 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 our share of non-cash adjustments related to the Enlivant Joint Venture. We believe that the use of FFO and AFFO (and the related per share amounts), combined with the required GAAP presentations, improves the understanding of our operating results among investors and makes comparisons of operating results among REITs more meaningful. We consider 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 our operating performance between periods or as compared to other companies. While FFO and AFFO are relevant and widely used measures of operating performance of REITs, they do not represent cash flows from operations or net income attributable to common stockholders as defined by GAAP and should not be considered an alternative to those measures in evaluating our liquidity or operating performance. FFO and AFFO also do not consider the costs associated with capital expenditures related to our real estate assets nor do they purport to be indicative of cash available to fund our future cash requirements. Further, our computation of FFO and AFFO may not be comparable to FFO and AFFO reported by other REITs that do not define FFO in accordance with the current Nareit definition or that interpret the current Nareit definition or define AFFO differently than we do.
41


The following table reconciles our calculations of FFO and AFFO for the years ended December 31, 2020, 2019 and 2018, to net income attributable to common stockholders, the most directly comparable GAAP financial measure, for the same periods (in thousands, except share and per share amounts):
Year Ended December 31,
2020 2019 2018
Net income attributable to common stockholders $ 138,417  $ 68,996  $ 269,314 
Depreciation and amortization of real estate assets 176,737  181,549  191,379 
Depreciation and amortization of real estate assets related to noncontrolling interest —  (93) (159)
Depreciation and amortization of real estate assets related to unconsolidated joint venture 26,949  21,649  21,253 
Net gain on sales of real estate (2,861) (2,300) (128,198)
Net loss on sales of real estate related to unconsolidated joint venture 3,281  1,690  — 
Impairment of real estate 4,003  121,819  1,413 
FFO attributable to common stockholders 346,526  393,310  355,002 
Merger and acquisition costs 483  424  636 
Stock-based compensation expense 7,907  9,819  7,648 
Non-cash rental and related revenues (4,458) (19,449) (36,443)
Non-cash interest income (2,351) (2,212) (2,300)
Non-cash interest expense 8,418  10,080  10,137 
Non-cash portion of loss on extinguishment of debt 531  5,838  874 
Provision for loan losses and other reserves 1,855  1,238  40,806 
Non-cash lease termination income —  (10,579) — 
Other non-cash adjustments related to unconsolidated joint venture 1,913  4,135  2,652 
Other non-cash adjustments 342  171  25 
AFFO attributable to common stockholders $ 361,166  $ 392,775  $ 379,037 
 
FFO attributable to common stockholders per diluted common share $ 1.67  $ 2.09  $ 1.99 
     
AFFO attributable to common stockholders per diluted common share $ 1.74  $ 2.08  $ 2.11 
 
Weighted average number of common shares outstanding, diluted:
FFO attributable to common stockholders 207,252,830  188,127,092  178,721,744 
 
AFFO attributable to common stockholders 208,039,530  188,775,872  179,338,881 
 
42


The following table sets forth additional information related to certain other items included in net income attributable to common stockholders above, and the portions of each that are included in FFO and AFFO attributable to common stockholders, which may be helpful in assessing our operating results. Please refer to “—Results of Operations” above for additional information regarding these items (in millions):
Year Ended December 31,
2020 2019 2018 2020 2019 2018 2020 2019 2018
Net Income FFO AFFO
Rental and related revenues:
Reduction of revenues related to non-cash receivable balances / lease intangible write-offs $ 20.8  $ 7.4  $ 11.5  $ 20.8  $ 7.4  $ 11.5  $ —  $ —  $ — 
Resident fees and services:
Grant income under the CARES Act and other programs 1.8  —  —  1.8  —  —  1.8  —  — 
Interest and other income:
Lease termination income 0.3  67.8  —  0.3  67.8  —  0.3  57.2  — 
Income on repayment of loan —  —  0.9  —  —  0.9  —  —  0.9 
Interest expense:
Incremental interest expense related to the redemption of the 2021 and 2023 Notes —  1.6  —  —  1.6  —  —  1.6  — 
Senior housing - managed portfolio operating expenses:
COVID-19 pandemic related expenses 4.3  —  —  4.3  —  —  4.3  —  — 
General and administrative expense:
Previously anticipated Senior Notes refinancing expenses —  —  0.6  —  —  0.6  —  —  0.6 
CCP transition expenses 0.1  0.2  1.5  0.1  0.2  1.5  0.1  0.2  1.5 
Legal fees related to the recovery of previously reserved cash rental income —  —  0.9  —  —  0.9  —  —  0.9 
Merger and acquisition costs 0.5  0.4  0.6  0.5  0.4  0.6  —  —  — 
Provision for (recovery of) doubtful accounts 1.9  1.2  39.1  1.9  1.2  39.1  —  —  (1.7)
Loss on extinguishment of debt 0.5  16.3  2.9  0.5  16.3  2.9  —  10.5  2.0 
Other income 2.2  2.1  4.5  2.2  2.1  4.5  2.3  2.1  4.4 
Loss from unconsolidated joint venture:
Grant income under the CARES Act and other programs 3.5  —  —  3.5  —  —  3.5  —  — 
Deferred income tax expense 0.5  2.3  1.7  0.5  2.3  1.7  —  —  — 
COVID-19 pandemic related expenses 6.1  —  —  6.1  —  —  6.1  —  — 
Preferred stock dividends:
Preferred stock redemption charge —  —  5.5  —  —  5.5  —  —  5.5 
Liquidity and Capital Resources
As of December 31, 2020, we had approximately $1.1 billion in liquidity, consisting of unrestricted cash and cash equivalents of $59.1 million and available borrowings under our Revolving Credit Facility of $1.0 billion. The Credit Agreement also contains an accordion feature that can increase the total available borrowings to $2.75 billion (from U.S. $2.0 billion plus CAD $125.0 million), subject to terms and conditions.
We have filed a shelf registration statement with the SEC that expires in December 2022, which allows us to offer and sell shares of common stock, preferred stock, warrants, rights, units, and certain of our subsidiaries to offer and sell debt securities, through underwriters, dealers or agents or directly to purchasers, on a continuous or delayed basis, in amounts, at prices and on terms we determine at the time of the offering, subject to market conditions.
On December 11, 2019, we established an at-the-market equity offering program (the “ATM Program”), pursuant to which shares of our common stock having an aggregate gross sales price of up to $400.0 million may be sold from time to time (i) by us through a consortium of banks acting as sales agents or directly to the banks acting as principals or (ii) by a consortium
43


of banks acting as forward sellers on behalf of any forward purchasers pursuant to a forward sale agreement. During December 2019, we sold 2.9 million shares under the ATM Program at an average price of $20.86 per share, generating gross proceeds of $60.0 million, before $0.2 million of commissions. During the year ended December 31, 2020, we sold 3.7 million shares under the ATM Program at an average price of $16.23 per share, generating gross proceeds of $60.0 million, before $0.9 million of commissions (excluding sales utilizing the forward feature of the ATM Program, as described below).
Additionally, during the year ended December 31, 2020, we utilized the forward feature of the ATM Program to allow for the sale of up to an aggregate sales price of $45.3 million of our common stock at an initial weighted average price of $17.44 per share, net of commissions. The forward sale agreement has a one year term during which time we may settle the forward sale by delivery of physical shares of common stock to the forward purchaser or, at our election, in cash or net shares. The forward sale price that we expect to receive upon settlement will be the initial forward price established upon the effective date, subject to adjustments for (i) the forward purchasers’ stock borrowing costs and (ii) certain fixed price reductions during the term of the agreement. During the year ended December 31, 2020, we settled 1.4 million shares at a weighted average net price of $17.45 per share, after commissions, resulting in net proceeds of $25.0 million. As of December 31, 2020, 1.1 million shares remained outstanding under the forward sale agreement, with an initial weighted average price of $17.44, net of commissions.
As of December 31, 2020, we had $234.7 million available under the ATM Program. Subject to market conditions, we expect to use proceeds from our ATM Program to reduce our outstanding indebtedness and to finance future investments in properties.
Based on our current assessment of the impact of the COVID-19 pandemic on our company, we believe that our available cash, operating cash flows and borrowings available to us under our Revolving Credit Facility provide sufficient funds for our operations, scheduled debt service payments and dividend requirements for the next twelve months. In addition, we do not believe that the restrictions under our Senior Notes Indentures (as defined below) or Credit Agreement significantly limit our ability to use our available liquidity for these purposes.
We expect that future investments in properties, including any improvements or renovations of current or newly-acquired properties, will depend on and will be financed, in whole or in part, by our existing cash, borrowings available to us under our Revolving Credit Facility and the proceeds from issuances of common stock (including through our ATM Program), preferred stock, debt or other securities. In addition, we may seek financing from U.S. government agencies, including through Fannie Mae, Freddie Mac and the U.S. Department of Housing and Urban Development, in appropriate circumstances in connection with acquisitions. We also use derivative instruments in the normal course of business to mitigate interest rate and foreign currency risk.
Cash Flows from Operating Activities
Net cash provided by operating activities was $354.9 million for the year ended December 31, 2020. Operating cash inflows were derived primarily from the rental payments received under our lease agreements, resident fees and services net of the corresponding operating expenses and interest payments from borrowers under our loan investments. Operating cash outflows consisted primarily of interest payments on borrowings and payment of general and administrative expenses, including corporate overhead. We expect our annualized cash flows provided by operating activities to fluctuate as a result of completed investment and disposition activity, anticipated future changes in our portfolio, fluctuations in collections from tenants and borrowers and fluctuations in the operating results of our Senior Housing - Managed communities.
Cash Flows from Investing Activities
During the year ended December 31, 2020, net cash used in investing activities was $136.5 million and included $92.9 million used in the acquisition of four facilities, $47.4 million used for additions to real estate, $20.1 million used to provide funding for a preferred equity investment and $1.7 million used to provide additional funding for existing loans receivable, partially offset by $16.8 million in sales proceeds related to the disposition of eight real estate facilities, $4.1 million in repayments of loans receivable, $3.4 million in repayments of preferred equity investments and $1.3 million in distributions in excess of earnings from the Enlivant Joint Venture.
Cash Flows from Financing Activities
During the year ended December 31, 2020, net cash used in financing activities was $202.1 million and included $278.3 million of dividends paid to stockholders, $3.1 million of principal repayments of secured debt and $0.8 million of payments of deferred financing costs, partially offset by $80.1 million of net proceeds from shares sold through our ATM Program, net of payroll tax payments related to the issuance of common stock pursuant to equity compensation arrangements.
44


Please see the accompanying consolidated statements of cash flows for details of our operating, investing and financing cash activities.
Loan Agreements
2024 Notes. On May 29, 2019, the Operating Partnership and Sabra Capital Corporation, wholly owned subsidiaries of Sabra (the “Issuers”), issued $300.0 million aggregate principal amount of 4.80% senior notes due 2024 (the “2024 Notes”), providing net proceeds of $295.3 million after deducting underwriting discounts and other offering expenses. Upon redemption of the 2023 Notes, Sabra Capital Corporation’s obligations as a co-issuer under the 2024 Notes were automatically released and discharged.
2026 and 2027 Notes. In connection with our merger with CCP, on August 17, 2017, Sabra assumed $500 million aggregate principal amount of 5.125% senior notes due 2026 (the “2026 Notes”) and $100 million aggregate principal amount of 5.38% senior notes due 2027 (the “2027 Notes”).
2029 Notes. On October 7, 2019, the Issuers issued $350.0 million aggregate principal amount of 3.90% senior notes due 2029 (the “2029 Notes” and, together with the 2024 Notes, the 2026 Notes and the 2027 Notes, the “Senior Notes”), providing net proceeds of $340.5 million after deducting underwriting discounts and other offering expenses. Upon redemption of the 2023 Notes, Sabra Capital Corporation’s obligations as a co-issuer under the 2029 Notes were automatically released and discharged.
See Note 8, “Debt,” in the Notes to Consolidated Financial Statements for additional information concerning the Senior Notes, including information regarding the indentures and agreements governing the Senior Notes (the “Senior Notes Indentures”). As of December 31, 2020, we were in compliance with all applicable covenants under the Senior Notes Indentures.
Guarantor Financial Information. The 2024 Notes are issued by the Operating Partnership and fully and unconditionally guaranteed, jointly and severally, by us and one of our non-operating subsidiaries, subject to release under certain customary circumstances as described below. In connection with the Operating Partnership’s assumption of the 2026 Notes, we have fully and unconditionally guaranteed the 2026 Notes, subject to release under certain circumstances as described below. The 2029 Notes are issued by the Operating Partnership and guaranteed, fully and unconditionally, by us.
These guarantees are subordinated to all existing and future senior debt and senior guarantees of the applicable guarantors and are unsecured. We conduct all of our business through and derive virtually all of our income from our subsidiaries. Therefore, our ability to make required payments with respect to our indebtedness (including the Senior Notes) and other obligations depends on the financial results and condition of our subsidiaries and our ability to receive funds from our subsidiaries.
A guarantor will be automatically and unconditionally released from its obligations under the guarantee with respect to the 2024 Notes in the event of:
Any sale of the subsidiary guarantor or of all or substantially all of its assets;
A merger or consolidation of the subsidiary guarantor with the Operating Partnership or Sabra, provided that the surviving entity remains a guarantor;
The requirements for legal defeasance or covenant defeasance or to discharge the indentures governing the 2024 Notes have been satisfied;
A liquidation or dissolution, to the extent permitted under the indenture governing the 2024 Notes, of the subsidiary guarantor;
The release or discharge of the guaranty that resulted in the creation of the subsidiary guaranty, except a discharge or release by or as a result of payment under such guaranty; or
If the subsidiary guarantor is not a guarantor or is not otherwise liable in respect of any obligations under any credit facility (as defined in the indenture governing the 2024 Notes) of us or any of our subsidiaries.
We will be automatically and unconditionally released from our obligations under the guarantee with respect to the 2026 Notes in the event of:
A liquidation or dissolution, to the extent permitted under the indenture governing the 2026 Notes;
A merger or consolidation, provided that the surviving entity remains a guarantor; or
The requirements for legal defeasance or covenant defeasance or to discharge the indenture governing the 2026 Notes have been satisfied.
45


Pursuant to amendments to Regulation S-X, the following aggregate summarized financial information is provided for Sabra, the Operating Partnership and Sabra Health Care, L.L.C. (the guarantor subsidiary of the 2024 Notes). This aggregate summarized financial information has been prepared from the books and records maintained by us, the Operating Partnership and Sabra Health Care, L.L.C. The aggregate summarized financial information does not include the investments in non-guarantor subsidiaries nor the earnings from non-guarantor subsidiaries and therefore is not necessarily indicative of the results of operations or financial position had the Operating Partnership and Sabra Health Care, L.L.C. operated as independent entities. Intercompany transactions have been eliminated. The aggregate summarized balance sheet information as of December 31, 2020 and 2019 and aggregate summarized statement of loss information for the year ended December 31, 2020 is as follows (in thousands):
December 31,
2020 2019
Total assets $ 77,825  $ 52,597 
Total liabilities 2,276,418  2,241,501 
Year Ended December 31, 2020
Total revenues 57 
Total expenses 117,879 
Net loss (117,954)
Net loss attributable to common stockholders (117,954)
Credit Agreement. Effective on September 9, 2019, Sabra Health Care Limited Partnership, a Delaware limited partnership (the “Operating Partnership”) and Sabra Canadian Holdings, LLC (together, the “Borrowers”), Sabra and the other parties thereto entered into a fifth amended and restated unsecured credit agreement (the “Credit Agreement”).
The Credit Agreement includes a $1.0 billion revolving credit facility (the “Revolving Credit Facility”), $955.0 million in U.S. dollar term loans and a CAD $125.0 million Canadian dollar term loan (collectively, the “Term Loans”). Further, up to $175.0 million of the Revolving Credit Facility may be used for borrowings in certain foreign currencies. The Credit Agreement also contains an accordion feature that can increase the total available borrowings to $2.75 billion, subject to terms and conditions.
The Revolving Credit Facility has a maturity date of September 9, 2023, and includes two six-month extension options. $105.0 million of the U.S. dollar Term Loans has a maturity date of September 9, 2022, $350.0 million of the U.S. dollar Term Loans has a maturity date of September 9, 2023, and the other Term Loans have a maturity date of September 9, 2024.
The obligations of the Borrowers under the Credit Agreement are fully and unconditionally guaranteed, jointly and severally, on an unsecured basis, by us and one of our non-operating subsidiaries, subject to release under certain customary circumstances.
See Note 8, “Debt,” in the Notes to Consolidated Financial Statements for additional information concerning the Credit Agreement, including information regarding covenants contained in the Credit Agreement. As of December 31, 2020, we were in compliance with all applicable covenants under the Credit Agreement.
Secured Indebtedness
As of December 31, 2020 and 2019, 13 and 16 of our properties held for investment were subject to secured indebtedness to third parties, respectively. As of December 31, 2020 and December 31, 2019, our secured debt consisted of the following (dollars in thousands): 
Interest Rate Type
Principal Balance as of
December 31, 2020 (1)
Principal Balance as of
December 31, 2019 (1)
Weighted Average Interest Rate at
December 31, 2020 (2)
Maturity Date
Fixed Rate $ 80,199  $ 114,777  3.39  % December 2021 - 
August 2051
(1)    Principal balance does not include deferred financing costs, net of $1.1 million and $1.7 million as of December 31, 2020 and 2019, respectively.
(2)    Weighted average interest rate includes private mortgage insurance.
46


Capital Expenditures
For the years ended December 31, 2020, 2019 and 2018, our aggregate capital expenditures were $47.4 million, $25.5 million, and $27.7 million, respectively. We anticipate that our aggregate capital expenditure requirements for the next 12 months will principally be for improvements to our facilities and will not exceed $68 million, of which $35 million will directly result in incremental rental income.
Dividends
We paid dividends of $278.3 million on our common stock during the year ended December 31, 2020. On February 2, 2021, our board of directors declared a quarterly cash dividend of $0.30 per share of common stock. The dividend will be paid on February 26, 2021 to stockholders of record as of February 12, 2021.
Concentration of Credit Risk
Concentrations of credit risk arise when a number of operators, tenants or obligors related to our investments are engaged in similar business activities, or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations, including those to us, to be similarly affected by changes in economic conditions. We regularly monitor our portfolio to assess potential concentrations of risks.
Management believes our current portfolio is reasonably diversified across healthcare related real estate and geographical location and does not contain any other significant concentration of credit risks. Our portfolio of 426 real estate properties held for investment as of December 31, 2020 is diversified by location across the U.S. and Canada.
For the year ended December 31, 2020, no tenant relationship represented 10% or more of our total revenues.
Skilled Nursing Facility Reimbursement Rates
For the year ended December 31, 2020 (excluding the one-time lease termination income of $0.3 million), 53.5% of our revenues was derived directly or indirectly from skilled nursing/transitional care facilities. Medicare reimburses skilled nursing facilities for Medicare Part A services under the Prospective Payment System (“PPS”), as implemented pursuant to the Balanced Budget Act of 1997 and modified pursuant to subsequent laws, most recently the Patient Protection and Affordable Care Act of 2010. PPS regulations predetermine a payment amount per patient, per day, based on a market basket index calculated for all covered costs.
Prior to October 1, 2019, the amount to be paid was determined by classifying each patient into one of 66 Resource Utilization Group (“RUG”) categories that represented the level of services required to treat different conditions and levels of acuity. The system of 66 RUG categories, or Resource Utilization Group version IV (“RUG IV”), became effective as of October 1, 2010. RUG IV resulted from research performed by CMS and was part of CMS’s continuing effort to increase the correlation of the cost of services to the condition of individual patients.
On July 31, 2018, CMS issued a final rule, CMS-1696-F, which includes changes to the case-mix classification system used under the PPS and fiscal year 2019 Medicare payment updates.
CMS-1696-F includes a new case-mix classification system called the skilled nursing facility Patient-Driven Payment Model (“PDPM”) that became effective on October 1, 2019. PDPM reflects significant changes to the Resident Classification System, Version I (“RCS-I”) that was being considered to replace RUG IV as outlined in an Advanced Notice of Proposed Rulemaking released by CMS in May 2017.
PDPM focuses on clinically relevant factors, rather than volume-based service, for determining Medicare payment. PDPM adjusts Medicare payments based on each aspect of a resident’s care, most notably for non-therapy ancillaries, which are items and services not related to the provision of therapy such as drugs and medical supplies, thereby more accurately addressing costs associated with medically complex patients. It further adjusts the skilled nursing facility per diem payments to reflect varying costs throughout the stay and incorporates safeguards against potential financial incentives to ensure that beneficiaries receive care consistent with their unique needs and goals.
On July 31, 2020, CMS released final fiscal year 2021 Medicare rates for skilled nursing facilities providing an estimated net increase of 2.2% over fiscal year 2020 payments (comprised of a market basket increase of 2.2% and no productivity adjustment). The new payment rates became effective on October 1, 2020.
In response to the COVID-19 pandemic, several federal relief packages were approved that could benefit our tenants, especially our tenants that operate skilled nursing/transitional care facilities.
47


On March 18, 2020, President Trump signed into law the Families First Coronavirus Response Act (“Families First Act”). Under the Families First Act, a temporary 6.2% increase in Federal Medical Assistance Percentages (“FMAP”) was approved retroactive to January 1, 2020, and several states have directed FMAP funds to skilled nursing/transitional care facilities.
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The CARES Act provides for a $175 billion fund for eligible health care providers, which includes skilled nursing/transitional care operators, and as of September 1, 2020 also includes assisted living facility operators. The CARES Act also includes (i) a temporary suspension of 2% Medicare sequestration cut beginning May 1, 2020 through December 31, 2020 with an extension to March 31, 2021, (ii) a deferral of the employer’s Social Security remittances through December 31, 2020, (iii) the establishment of the Paycheck Protection Program, a Small Business Administration loan to businesses with fewer than 500 employees that may be partially forgivable, and (iv) accelerated and advance Medicare payments for certain providers, with deferred repayment obligations that are interest-free for up to 29 months.
In addition to the above, there have been other actions taken that benefit skilled nursing/transitional care operators, including the waiver of the requirement for skilled nursing/transitional care patients to have stayed in a hospital for three days in order for services rendered in a skilled nursing/transitional care facility to qualify for Medicare Part A, the acceleration and advance of three months of Medicare billing, and relaxation of certification requirements for employees performing non-clinical services in these facilities.
The Department of Health and Human Services (“HHS”) extended the COVID-19 Public Health Emergency, most recently effective January 21, 2021, for another 90 days, which allows HHS to continue providing temporary regulatory waivers and new rules to equip skilled nursing facilities and some assisted living operators with flexibility to respond to the COVID-19 pandemic. The extension of the COVID-19 Public Health Emergency also extends the FMAP funding increase through June 30, 2021.
Obligations and Commitments
The following table summarizes our contractual obligations and commitments in future years, including our secured indebtedness to third parties on certain of our properties, our Revolving Credit Facility, our Term Loans, our Senior Notes and our operating leases. The following table is presented as of December 31, 2020 (in thousands): 
    Payments Due During the Years Ending December 31,
  Total 2021 2022 2023 2024 2025 After 2025
Secured indebtedness (1)
$ 105,349  $ 20,819  $ 4,161  $ 4,161  $ 4,161  $ 4,161  $ 67,886 
Revolving Credit Facility (2)
6,820  2,535  2,535  1,750  —  —  — 
Term Loans (3)
1,135,066  26,280  130,474  370,494  607,818  —  — 
Senior Notes (4)
1,619,170  59,055  59,055  59,055  359,055  44,655  1,038,295 
Operating leases 2,452  445  467  507  529  504  — 
Total $ 2,868,857  $ 109,134  $ 196,692  $ 435,967  $ 971,563  $ 49,320  $ 1,106,181 
(1)Secured indebtedness includes principal payments and interest payments through the applicable maturity dates. Total interest on secured indebtedness, based on contractual rates, is $25.1 million which is attributable to fixed rate debt.
(2)Revolving Credit Facility consists of payments related to the facility fee due to the lenders based on the amount of commitments under the Revolving Credit Facility through the maturity date (assuming no exercise of our two six-month extension options) totaling $6.8 million.
(3)Term Loans includes interest payments through the applicable maturity dates totaling $82.0 million, which reflects the impact of interest rate swaps.
(4)Senior Notes includes interest payments through the applicable maturity dates totaling $369.2 million.
In addition to the above, as of December 31, 2020, we have committed to provide up to $2.2 million of future funding related to four loans receivable investments with maturity dates ranging from March 2021 to December 2022.
Impact of Inflation
Our rental income in future years will be impacted by changes in inflation. Several of our lease agreements provide for an annual rent escalator based on the percentage change in the Consumer Price Index (but not less than zero), subject to minimum or maximum fixed percentages that range from 1.0% to 5.0%.
Off-Balance Sheet Arrangements
48


We have a 49% interest in the Enlivant Joint Venture. See Note 2, “Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements for additional information. We have no other off-balance sheet arrangements that we expect would materially affect our liquidity and capital resources.
49


Quarterly Financial Data
The following table presents our quarterly financial data. This information has been prepared on a basis consistent with that of our audited consolidated financial statements. Our quarterly results of operations for the periods presented are not necessarily indicative of future results of operations. This unaudited quarterly data should be read together with the accompanying consolidated financial statements and related notes thereto (in thousands, except share and per share amounts).
For the Year Ended December 31, 2020
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Operating data
Total revenues $ 149,346  $ 153,917  $ 143,252  $ 152,054 
Net income attributable to common stockholders 35,217  29,623  36,460  37,117 
Net income per common share, basic 0.17  0.14  0.18  0.18 
Net income per common share, diluted 0.17  0.14  0.18  0.18 
Other data
Cash flows provided by operations $ 74,819  $ 93,786  $ 96,850  $ 89,397 
Cash flows used in investing activities (69,824) (29,144) (31,550) (5,933)
Cash flows provided by (used in) financing activities 8,948  (90,547) (60,402) (60,108)
Weighted-average number of common shares outstanding, basic 205,395,330  205,593,653  205,791,699  208,101,883 
Weighted-average number of common shares outstanding, diluted:
Net income and FFO 206,006,285  206,219,162  206,727,167  209,322,132 
AFFO 206,509,513  207,003,252  207,523,386  209,983,245 
FFO attributable to common stockholders (1)
$ 86,916  $ 88,123  $ 83,962  $ 87,525 
FFO attributable to common stockholders per diluted common share (1)
0.42  0.43  0.41  0.42 
AFFO attributable to common stockholders (1)
91,842  87,274  94,804  87,246 
AFFO attributable to common stockholder per diluted common share (1)
0.44  0.42  0.46  0.42 
Reconciliation of FFO and AFFO
Net income attributable to common stockholders $ 35,217  $ 29,623  $ 36,460  $ 37,117 
Depreciation and amortization of real estate assets 44,168  44,202  44,209  44,158 
Depreciation and amortization of real estate assets related to unconsolidated joint venture 5,585  5,549  10,391  5,424 
Net loss (gain) on sales of real estate 217  (330) (2,715) (33)
Net loss (gain) on sales of real estate related to unconsolidated joint venture 1,729  9,079  (7,537) 10 
Impairment of real estate —  —  3,154  849 
FFO attributable to common stockholders 86,916  88,123  83,962  87,525 
Merger and acquisition costs 159  269  50 
Stock-based compensation expense 2,360  2,375  916  2,256 
Non-cash rental and related revenues (365) (6,202) 7,907  (5,798)
Non-cash interest income (561) (574) (608) (608)
Non-cash interest expense 2,233  2,225  2,069  1,891 
Non-cash portion of loss on extinguishment of debt —  392  139  — 
Provision for loan losses and other reserves 667  129  (90) 1,149 
Other non-cash adjustments related to unconsolidated joint venture 539  404  394  576 
Other non-cash adjustments (106) 133  110  205 
AFFO attributable to common stockholders $ 91,842  $ 87,274  $ 94,804  $ 87,246 

50


For the Year Ended December 31, 2019
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Operating data
Total revenues $ 136,773  $ 219,366  $ 149,834  $ 155,763 
Net (loss) income attributable to common stockholders (77,704) 83,677  23,282  39,741 
Net (loss) income per common share, basic (0.44) 0.46  0.12  0.20 
Net (loss) income per common share, diluted (0.44) 0.46  0.12  0.20 
Other data
Cash flows provided by operations $ 53,959  $ 137,919  $ 85,103  $ 95,494 
Cash flows provided by (used in) investing activities 6,347  311,535  (19,337) (35,701)
Cash flows used in financing activities (87,474) (424,770) (83,489) (50,447)
Weighted-average number of common shares outstanding, basic 178,385,984  181,567,464  190,650,400  197,840,180 
Weighted-average number of common shares outstanding, diluted:
Net (loss) income 178,385,984  182,254,100  191,952,389  199,048,481 
FFO 178,936,854  182,254,100  191,952,389  199,048,481 
AFFO 179,709,444  183,007,434  192,590,320  199,496,049 
FFO attributable to common stockholders (1)
$ 77,175  $ 139,398  $ 85,784  $ 90,953 
FFO attributable to common stockholders per diluted common share (1)
0.43  0.76  0.45  0.46 
AFFO attributable to common stockholders (1)
83,165  132,374  87,656  89,580 
AFFO attributable to common stockholder per diluted common share (1)
0.46  0.72  0.46  0.45 
Reconciliation of FFO and AFFO
Net (loss) income attributable to common stockholders $ (77,704) $ 83,677  $ 23,282  $ 39,741 
Depreciation and amortization of real estate assets 44,949  49,476  43,092  44,032 
Depreciation and amortization of real estate assets related to noncontrolling interests (40) (39) (14) — 
Depreciation and amortization of real estate assets related to unconsolidated joint venture 5,316  5,347  5,439  5,547 
Net loss (gain) on sales of real estate 1,520  (2,755) 19  (1,084)
Net loss on sales of real estate related to unconsolidated joint venture —  1,690  —  — 
Impairment of real estate 103,134  2,002  13,966  2,717 
FFO attributable to common stockholders 77,175  139,398  85,784  90,953 
Merger and acquisition costs 56  130  232 
Stock-based compensation expense 2,775  2,795  3,259  990 
Non-cash rental and related revenues (1,164) (6,843) (4,958) (6,484)
Non-cash interest income (562) (563) (555) (532)
Non-cash interest expense 2,561  2,762  2,523  2,234 
Non-cash portion of loss on extinguishment of debt —  3,224  642  1,972 
Provision for loan losses and other reserves 1,207  193  57  (219)
Non-cash lease termination income —  (9,725) —  (854)
Other non-cash adjustments related to unconsolidated joint venture 1,115  1,031  777  1,212 
Other non-cash adjustments 52  46  (3) 76 
AFFO attributable to common stockholders $ 83,165  $ 132,374  $ 87,656  $ 89,580 
(1)    We believe that net income attributable to common stockholders as defined by GAAP is the most appropriate earnings measure. We also believe that FFO, as defined in accordance with the definition used by Nareit, and AFFO (and related per share amounts) are important non-GAAP supplemental measures of our operating performance. We consider FFO and AFFO to be useful measures for reviewing comparative operating and financial performance because, by excluding gains or losses from real estate dispositions and our share of gains or losses from real estate dispositions related to the Enlivant Joint Venture, real estate depreciation and amortization, net of amounts related to noncontrolling interests, plus our share of depreciation and amortization related to the Enlivant Joint Venture, and real estate impairment charges, and for AFFO, by 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
51


ineffectiveness gain/loss on derivative instruments, and non-cash revenue and expense amounts related to noncontrolling interests) and our share of non-cash adjustments related to the Enlivant Joint Venture, FFO and AFFO can help investors compare our operating performance between periods or as compared to other companies. See “—Results of Operations—Funds from Operations and Adjusted Funds from Operations” for further discussion of FFO and AFFO.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to various market risks, primarily related to adverse changes in interest rates and the exchange rate for Canadian dollars. We use derivative instruments in the normal course of business to mitigate interest rate and foreign currency risk. We do not use derivative financial instruments for speculative or trading purposes. See Note 9, “Derivative and Hedging Instruments,” in the Notes to Consolidated Financial Statements for further discussion of our derivative instruments.
Interest rate risk. As of December 31, 2020, our indebtedness included $1.3 billion aggregate principal amount of Senior Notes outstanding, $1.1 billion in Term Loans and $80.2 million of secured indebtedness to third parties on certain of the properties that our subsidiaries own. As of December 31, 2020, we had $1.1 billion of outstanding variable rate indebtedness and $1.0 billion available for borrowing under our Revolving Credit Facility. Additionally, as of December 31, 2020, our proportionate share of the Enlivant Joint Venture debt was $380.5 million, all of which was variable rate indebtedness.
We expect to manage our exposure to interest rate risk by maintaining a mix of fixed and variable rates for our indebtedness. We also may manage, or hedge, interest rate risks related to our borrowings through interest rate swap and collar agreements. As of December 31, 2020, we had interest rate swaps and an interest rate collar that fix the LIBOR portion of the interest rate for $845.0 million of LIBOR-based borrowings under the U.S. dollar Term Loans at a weighted average rate of 1.24% and an interest rate swap that fixes the Canadian Dollar Offered Rate (“CDOR”) portion of the interest rate for CAD $125.0 million at 0.93%. Additionally, as of December 31, 2020, we had forward starting swaps related to the anticipated future issuance of $250.0 million of debt with an effective date of May 2024. The forward starting swaps have a weighted average rate of 0.97% and were entered into to hedge our exposure to the benchmark rate for the anticipated future debt issuance.
As of December 31, 2020, our share of the Enlivant Joint Venture debt included $375.5 million of LIBOR-based borrowings subject to interest rate cap agreements that cap the LIBOR portion of the interest rate at a weighted average rate of 2.88%.
From time to time, we may borrow under the Revolving Credit Facility to finance future investments in properties, including any improvements or renovations of current or newly acquired properties, or for other purposes. Because borrowings under the Revolving Credit Facility bear interest on the outstanding principal amount at a rate equal to an applicable interest margin plus, at our option, either (a) LIBOR or (b) a base rate determined as the greater of (i) the federal funds rate plus 0.5%, (ii) the prime rate, and (iii) one-month LIBOR plus 1.0%, the interest rate we will be required to pay on any such borrowings will depend on then applicable rates and may vary. An increase in interest rates could make the financing of any investment by us more costly. Rising interest rates could also limit our ability to refinance our debt when it matures or cause us to pay higher interest rates upon refinancing and increase interest expense on refinanced indebtedness.
As of December 31, 2020, the index underlying our variable rate debt and our share of the Enlivant Joint Venture debt was below 100 basis points. Assuming a 100 basis point increase in the index or a reduction of this index to zero, and after giving effect to the impact of interest rate derivative instruments, net income would decrease by $4.9 million or increase by $0.7 million, respectively, for the twelve months following December 31, 2020.
Foreign currency risk. We are exposed to changes in foreign exchange rates as a result of our investments in Canadian real estate. Our foreign currency exposure is partially mitigated through the use of Canadian dollar denominated debt totaling CAD $145.5 million and cross currency swap instruments. Based on our operating results for the three months ended December 31, 2020, if the value of the Canadian dollar relative to the U.S. dollar were to increase or decrease by 10% compared to the average exchange rate during the three months ended December 31, 2020, our cash flows would have decreased or increased, as applicable, by $0.1 million.
52


The table below summarizes the book values and the weighted-average interest rates of our indebtedness by type as of December 31, 2020, based on the maturity dates (dollars in thousands):
Maturity
2021 2022 2023 2024 2025 Thereafter
Total Book Value (1)
Total Fair Value
Secured Indebtedness $ 18,419  $ 2,412  $ 2,478  $ 2,545  $ 2,615  $ 51,730  $ 80,199  $ 79,326 
Weighted average effective interest rate 3.39  % 3.32  % 3.33  % 3.34  % 3.36  % 3.71  % 3.39  %
Term Loans $ —  $ 105,000  $ 350,000  $ 598,100  $ —  $ —  $ 1,053,100  $ 1,053,100 
Weighted average effective interest rate (2)
—  2.59  % 2.66  % 2.12  % —  —  2.35  %
Senior Notes $ —  $ —  $ —  $ 300,000  $ —  $ 950,000  $ 1,250,000  $ 1,362,678 
Weighted average effective interest rate —  —  —  4.80  % —  4.75  % 4.76  %
(1)    Total book value for secured indebtedness and Term Loans does not include deferred financing costs, net of $1.1 million and $8.2 million, respectively, as of December 31, 2020. Total book value for Senior Notes does not include premium, net of $6.4 million and deferred financing costs, net of $8.0 million as of December 31, 2020.
(2)    Term loans include $845.0 million subject to swap agreements that fix LIBOR at a weighted average rate of 1.24%, and $98.1 million (CAD $125.0 million) subject to a swap agreement that fixes CDOR at 0.93%. Excluding these amounts, variable rate debt was 17.7% of total debt as of December 31, 2020.
For a discussion of the interest rate risks related to the current capital and credit markets, see Part I, Item 1A, “Risk Factors.”

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
See the Index to Financial Statements at page F-1 of this 10-K. See also “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Quarterly Financial Data” in Part II, Item 7.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.

ITEM 9A. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
As of the end of the period covered by this report, management, including our chief executive officer and chief financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures. Based upon, and as of the date of, the evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective as of December 31, 2020 to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our chief executive officer and our chief financial officer, as appropriate to allow timely decisions regarding required disclosure.
Management’s Annual Report on Internal Control over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a–15(f) and 15d–15(f). Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting using the criteria described in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on our evaluation using the criteria described in Internal Control—Integrated Framework, our management concluded that our internal control over financial reporting was effective as of December 31, 2020.
53


The effectiveness of our internal control over financial reporting as of December 31, 2020 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which is included herein.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting during the quarter ended December 31, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION
None.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
Except as provided below, the information required under Item 10 is incorporated herein by reference to our definitive proxy statement to be filed with the SEC within 120 days after the end of our fiscal year ended December 31, 2020 in connection with our 2021 Annual Meeting of Stockholders.
Code of Conduct and Ethics
We have adopted a Code of Conduct and Ethics that applies to all of our directors and team members, including our principal executive officer and principal financial officer. Our Code of Conduct and Ethics can be found in the Investors—Corporate Governance section of our website at www.sabrahealth.com. Waivers from, and amendments to, our Code of Conduct and Ethics that apply to our directors, executive officers or persons performing similar functions will be timely posted in the Investors—Corporate Governance section of our website at www.sabrahealth.com to the extent required by applicable rules of the Securities and Exchange Commission or the Nasdaq Stock Market LLC.

ITEM 11. EXECUTIVE COMPENSATION
The information required under Item 11 is incorporated herein by reference to our definitive proxy statement to be filed with the SEC within 120 days after the end of our fiscal year ended December 31, 2020 in connection with our 2021 Annual Meeting of Stockholders.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The information required under Item 12 is incorporated herein by reference to our definitive proxy statement to be filed with the SEC within 120 days after the end of our fiscal year ended December 31, 2020 in connection with our 2021 Annual Meeting of Stockholders.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
The information required under Item 13 is incorporated herein by reference to our definitive proxy statement to be filed with the SEC within 120 days after the end of our fiscal year ended December 31, 2020 in connection with our 2021 Annual Meeting of Stockholders.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
The information required under Item 14 is incorporated herein by reference to our definitive proxy statement to be filed with the SEC within 120 days after the end of our fiscal year ended December 31, 2020 in connection with our 2021 Annual Meeting of Stockholders.

54



PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES
(a)    Documents filed as part of this 10-K:
(1)    Financial Statements
See the Index to Consolidated Financial Statements at page F-1 of this report.
(2)    Financial Statement Schedules
        The following financial statement schedules are included herein at pages
F-39
through
F-57
of this report:
Schedule II - Valuation and Qualifying Accounts for the years ended December 31, 2020, 2019 and 2018
Schedule III - Real Estate Assets and Accumulated Depreciation as of December 31, 2020
Schedule IV - Mortgage Loans on Real Estate as of December 31, 2020
(3)    Exhibits
The following exhibits are filed herewith or are incorporated by reference, as specified below, to exhibits previously filed with the SEC.

EXHIBIT LIST
Ex.    Description
3.1   
3.1.1
3.2   
4.1*
4.2
4.2.1
4.2.2
4.3
4.4
4.5
4.5.1
55


Ex.    Description
4.5.2
4.5.3
4.5.4
4.6
4.7
10.1
10.1.1
10.2
Fifth Amended and Restated Credit Agreement, dated September 9, 2019, among Sabra Health Care Limited Partnership and Sabra Canadian Holdings, LLC, as Borrowers; Sabra Health Care REIT, Inc., as a guarantor; the other guarantors party thereto; the lenders party thereto; Bank of America, N.A., as Administrative Agent and L/C Issuer; Citizens Bank, National Association, Crédit Agricole Corporate and Investment Bank and Wells Fargo Bank, National Association, as Co-Syndication Agents and L/C Issuers; BMO Harris Bank, N.A., The Bank of Nova Scotia, MUFG Bank, Ltd., Barclays Bank PLC, Citibank, N.A., BBVA USA, Fifth Third Bank, JPMorgan Chase Bank, N.A., Morgan Stanley Senior Funding, Inc., Sumitomo Mitsui Banking Corporation and Suntrust Bank, as Co-Documentation Agents; BofA Securities, Inc., as Joint Lead Arranger and Sole Bookrunner; and Citizens Bank, National Association, Crédit Agricole Corporate and Investment Bank and Wells Fargo Securities, LLC, as Joint Lead Arrangers (incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed by Sabra Health Care REIT, Inc. on September 11, 2019).
10.3
10.4+
10.5+
10.6+
10.7+
10.8.1+
10.8.2+
56


Ex.    Description
10.8.3+*
10.8.4+
10.8.5+
10.9+
10.10+*
10.11*
21.1*
22.1
23.1*
31.1*   
31.2*   
32.1**   
32.2**   
101.INS* XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH* XBRL Taxonomy Extension Schema Document.
101.CAL* XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF* XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB* XBRL Taxonomy Extension Label Linkbase Document.
101.PRE* XBRL Taxonomy Extension Presentation Linkbase Document.
104* Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
 
* Filed herewith.
** Furnished herewith.
+ Designates a management compensation plan, contract or arrangement.

ITEM 16. FORM 10-K SUMMARY
    None.

57


INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Financial Statements
F-2
F-4
F-5
F-6
F-7
F-8
F-10
Financial Statement Schedules
F-39
F-40
F-57
All other schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.


F-1


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of Sabra Health Care REIT, Inc.
Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Sabra Health Care REIT, Inc. and its subsidiaries (the “Company”) as of December 31, 2020 and 2019, and the related consolidated statements of income, of comprehensive income, of equity, and of cash flows for each of the three years in the period ended December 31, 2019, including the related notes and financial statement schedules listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

F-2


Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

As described in Note 2 and Note 5 to the consolidated financial statements, the Company’s consolidated real estate investments net carrying value was $5,285,038 thousand as of December 31, 2020. During 2020, the Company recognized a $4 million real estate impairment related to one skilled nursing/transitional care facility sold during the year and three senior housing communities. Management regularly monitors events and changes such as triggering events, which in circumstances could indicate that the carrying amounts of its real estate investments may not be recoverable or realized. When indicators of potential impairment suggest that the carrying value of real estate investments may not be recoverable, management assesses the recoverability by estimating whether the Company will recover the carrying value of its real estate investments through the future cash flows and the eventual disposition of the investment. In some instances, there may be various potential outcomes for an investment and its potential future cash flows. The future cash flows used to assess recoverability are based on assumptions and may be probability-weighted based on management’s best estimates as of the date of evaluation. These assumptions may include cash flow projections, probability weightings, holding period, terminal capitalization rates, letters of intent, preliminary sales agreements and recent sales data for comparable properties. When necessary, a discount rate assumption may be used to determine fair value. The assumptions are generally based on management’s experience in its local real estate markets, and the effects of current market conditions, which are subject to economic and market uncertainties.

The principal considerations for our determination that performing procedures relating to the impairment assessment of real estate is a critical audit matter are (i) the high degree of auditor judgment and subjectivity involved in applying procedures relating to the Company’s identification of impairment triggering events and the determination of the recoverability of its real estate investments, and (ii) significant audit effort was necessary to perform procedures and evaluate the audit evidence relating to triggering events, and the significant assumptions used in the recoverability of its real estate investments relating to projected rent, probability weightings, holding period, terminal capitalization rates and letters of intent, when applicable.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s impairment assessment of real estate, including controls over the identification of triggering events and the development of assumptions used in applying tests of recoverability related to projected rent, probability weightings, holding period, terminal capitalization rates and letters of intent, when applicable. These procedures also included testing the completeness and accuracy of underlying data used in management’s model and evaluating the reasonableness of significant assumptions used by management in applying tests of recoverability relating to projected rent, probability weightings, holding period, terminal capitalization rates and letters of intent, when applicable. Evaluating the reasonableness of the assumptions involved considering (i) the past performance of the real estate; (ii) evidence such as the underlying internal or market data related to the assumptions and (iii) whether the assumptions were consistent with evidence obtained in other areas of the audit.

/s/ PricewaterhouseCoopers LLP
Irvine, California
February 22, 2021
 
We have served as the Company’s auditor since 2010.
F-3


SABRA HEALTH CARE REIT, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
 
December 31,
2020 2019
Assets
Real estate investments, net of accumulated depreciation of $681,657 and $539,213 as of December 31, 2020 and 2019, respectively
$ 5,285,038  $ 5,341,370 
Loans receivable and other investments, net 102,839  107,374 
Investment in unconsolidated joint venture 288,761  319,460 
Cash and cash equivalents 59,076  39,097 
Restricted cash 6,447  10,046 
Lease intangible assets, net 82,796  101,509 
Accounts receivable, prepaid expenses and other assets, net 160,646  150,443 
Total assets $ 5,985,603  $ 6,069,299 
Liabilities
Secured debt, net $ 79,065  $ 113,070 
Term loans, net 1,044,916  1,040,258 
Senior unsecured notes, net 1,248,393  1,248,773 
Accounts payable and accrued liabilities 146,276  108,792 
Lease intangible liabilities, net 57,725  69,946 
Total liabilities 2,576,375  2,580,839 
Commitments and contingencies (Note 15)
Equity
Preferred stock, $0.01 par value; 10,000,000 shares authorized, zero shares issued and outstanding as of December 31, 2020 and 2019
—  — 
Common stock, $0.01 par value; 500,000,000 shares authorized, 210,560,815 and 205,208,018 shares issued and outstanding as of December 31, 2020 and 2019, respectively
2,106  2,052 
Additional paid-in capital 4,163,228  4,072,079 
Cumulative distributions in excess of net income (716,195) (573,283)
Accumulated other comprehensive loss (39,911) (12,388)
Total equity 3,409,228  3,488,460 
Total liabilities and equity $ 5,985,603  $ 6,069,299 
See accompanying notes to consolidated financial statements.
F-4


SABRA HEALTH CARE REIT, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share amounts)
 
Year Ended December 31,
  2020 2019 2018
Revenues:
Rental and related revenues $ 430,584  $ 452,138  $ 536,605 
Interest and other income 11,940  81,540  16,667 
Resident fees and services 156,045  128,058  70,137 
     
Total revenues 598,569  661,736  623,409 
     
Expenses:
Depreciation and amortization 176,737  181,549  191,379 
Interest 100,424  126,610  147,106 
Triple-net portfolio operating expenses 20,590  22,215  — 
Senior housing - managed portfolio operating expenses 110,963  86,257  49,546 
General and administrative 32,755  30,886  37,094 
Provision for straight-line rent reserves, loan losses and other reserves 1,855  1,238  39,075 
Impairment of real estate 4,003  121,819  1,413 
     
Total expenses 447,327  570,574  465,613 
     
Other income (expense):
Loss on extinguishment of debt (531) (16,340) (2,917)
Other income 2,154  2,094  4,480 
Net gain on sales of real estate 2,861  2,300  128,198 
Total other income (expense) 4,484  (11,946) 129,761 
Income before loss from unconsolidated joint venture and income tax expense 155,726  79,216  287,557 
Loss from unconsolidated joint venture (16,599) (6,796) (5,431)
Income tax expense (710) (3,402) (3,011)
Net income 138,417  69,018  279,115 
Net income attributable to noncontrolling interest —  (22) (33)
Net income attributable to Sabra Health Care REIT, Inc. 138,417  68,996  279,082 
Preferred stock dividends —  —  (9,768)
Net income attributable to common stockholders $ 138,417  $ 68,996  $ 269,314 
Net income attributable to common stockholders, per:
     
Basic common share $ 0.67  $ 0.37  $ 1.51 
     
Diluted common share $ 0.67  $ 0.37  $ 1.51 
     
Weighted-average number of common shares outstanding, basic 206,223,503  187,172,210  178,305,738 
     
Weighted-average number of common shares outstanding, diluted 207,252,830  188,127,092  178,721,744 
See accompanying notes to consolidated financial statements.
F-5


SABRA HEALTH CARE REIT, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except footnote data)

Year Ended December 31,
  2020 2019 2018
Net income $ 138,417  $ 69,018  $ 279,115 
Other comprehensive (loss) income:
Unrealized (loss) gain, net of tax:
Foreign currency translation (loss) gain (315) 679  720 
Unrealized (loss) gain on cash flow hedges (1)
(27,208) (25,368) 292 
Total other comprehensive (loss) income (27,523) (24,689) 1,012 
Comprehensive income 110,894  44,329  280,127 
Comprehensive income attributable to noncontrolling interest —  (22) (33)
Comprehensive income attributable to Sabra Health Care REIT, Inc. $ 110,894  $ 44,307  $ 280,094 
(1)    Amounts are net of income tax benefit of $138,000, $49,000 and $48,000 for the years ended December 31, 2020, 2019 and 2018, respectively.
See accompanying notes to consolidated financial statements.

F-6


SABRA HEALTH CARE REIT, INC.
CONSOLIDATED STATEMENTS OF EQUITY
(in thousands, except share and per share amounts)
  Preferred Stock Common Stock Additional
Paid-in Capital
Cumulative Distributions in Excess of Net Income Accumulated Other Comprehensive Income (Loss) Total
Stockholders’
Equity
Noncontrolling Interests Total Equity
  Shares Amounts Shares Amounts
Balance, December 31, 2017 5,750,000  $ 58  178,255,843  $ 1,783  $ 3,636,913  $ (217,236) $ 11,289  $ 3,432,807  $ 4,442  $ 3,437,249 
Cumulative effect of ASU 2017-12 adoption —  —  —  —  —  (795) 795  —  —  — 
Net income —  —  —  —  —  279,082  —  279,082  33  279,115 
Other comprehensive income —  —  —  —  —  —  217  217  —  217 
Distributions to noncontrolling interest —  —  —  —  —  —  —  —  (142) (142)
Amortization of stock-based compensation —  —  —  —  9,574  —  —  9,574  —  9,574 
Preferred stock redemption (5,750,000) (58) —  —  (138,191) (5,501) —  (143,750) —  (143,750)
Common stock issuance, net —  —  50,685  —  (371) —  —  (371) —  (371)
Preferred dividends —  —  —  —  —  (4,267) —  (4,267) —  (4,267)
Common dividends ($1.80 per share)
—  —  —  —  —  (322,878) —  (322,878) —  (322,878)
Balance, December 31, 2018 —  —  178,306,528  1,783  3,507,925  (271,595) 12,301  3,250,414  4,333  3,254,747 
Cumulative effect of Topic 842 adoption —  —  —  —  —  (32,502) —  (32,502) —  (32,502)
Net income —  —  —  —  —  68,996  —  68,996  22  69,018 
Other comprehensive loss —  —  —  —  —  —  (24,689) (24,689) —  (24,689)
Buyout of noncontrolling interest —  —  —  —  4,039  —  —  4,039  (4,039) — 
Distributions to noncontrolling interest —  —  —  —  —  —  —  —  (316) (316)
Amortization of stock-based compensation —  —  —  —  12,567  —  —  12,567  —  12,567 
Common stock issuance, net —  —  26,901,490  269  547,548  —  —  547,817  —  547,817 
Common dividends ($1.80 per share)
—  —  —  —  —  (338,182) —  (338,182) —  (338,182)
Balance, December 31, 2019 —  —  205,208,018  2,052  4,072,079  (573,283) (12,388) 3,488,460  —  3,488,460 
Cumulative effect of Topic 326 adoption —  —  —  —  —  (167) —  (167) —  (167)
Net income —  —  —  —  —  138,417  —  138,417  —  138,417 
Other comprehensive loss —  —  —  —  —  —  (27,523) (27,523) —  (27,523)
Amortization of stock-based compensation —  —  —  —  10,769  —  —  10,769  —  10,769 
Common stock issuance, net —  —  5,352,797  54  80,380  —  —  80,434  —  80,434 
Common dividends ($1.35 per share)
—  —  —  —  —  (281,162) —  (281,162) —  (281,162)
Balance, December 31, 2020 —  $ —  210,560,815  $ 2,106  $ 4,163,228  $ (716,195) $ (39,911) $ 3,409,228  $ —  $ 3,409,228 
See accompanying notes to consolidated financial statements.
F-7


SABRA HEALTH CARE REIT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended December 31,
  2020 2019 2018
Cash flows from operating activities:
Net income $ 138,417  $ 69,018  $ 279,115 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 176,737  181,549  191,379 
Non-cash rental and related revenues (4,458) (19,449) (36,443)
Non-cash interest income (2,351) (2,212) (2,300)
Non-cash interest expense 8,418  10,080  10,137 
Stock-based compensation expense 7,907  9,819  7,648 
Non-cash lease termination income —  (10,579) — 
Loss on extinguishment of debt 531  16,340  2,917 
Provision for loan losses and other reserves 1,855  1,238  39,075 
Net gain on sales of real estate (2,861) (2,300) (128,198)
Impairment of real estate 4,003  121,819  1,413 
Loss from unconsolidated joint venture 16,599  6,796  5,431 
Distributions of earnings from unconsolidated joint venture 12,795  13,865  8,910 
Changes in operating assets and liabilities:
Accounts receivable, prepaid expenses and other assets, net (6,398) (9,639) (6,753)
Accounts payable and accrued liabilities 3,658  (13,870) (11,745)
Net cash provided by operating activities 354,852  372,475  360,586 
Cash flows from investing activities:
Acquisition of real estate (92,945) (51,136) (261,511)
Origination and fundings of loans receivable (1,651) (13,065) (50,731)
Origination and fundings of preferred equity investments (20,069) —  (5,313)
Additions to real estate (47,354) (25,451) (27,697)
Repayments of loans receivable 4,093  18,367  51,789 
Repayments of preferred equity investments 3,419  5,079  6,870 
Net proceeds from sales of real estate 16,751  329,050  382,560 
Investment in unconsolidated joint venture —  —  (354,461)
Distributions in excess of earnings from unconsolidated joint venture 1,305  —  — 
Net cash (used in) provided by investing activities (136,451) 262,844  (258,494)
Cash flows from financing activities:
Net repayments of revolving credit facility —  (624,000) (17,000)
Proceeds from issuance of senior unsecured notes —  638,779  — 
Principal payments on senior unsecured notes —  (700,000) — 
Principal payments on term loans —  (145,000) — 
Principal payments on secured debt (3,072) (3,436) (140,338)
Payments of deferred financing costs (830) (15,598) (352)
Payments related to extinguishment of debt —  (10,502) (2,043)
Distributions to noncontrolling interest —  (316) (142)
Preferred stock redemption —  —  (143,750)
Issuance of common stock, net 80,092  549,328  (499)
Dividends paid on common stock (278,299) (335,435) (325,220)
Net cash used in financing activities (202,109) (646,180) (629,344)
Net increase (decrease) in cash, cash equivalents and restricted cash 16,292  (10,861) (527,252)
Effect of foreign currency translation on cash, cash equivalents and restricted cash 88  346  (539)
Cash, cash equivalents and restricted cash, beginning of period 49,143  59,658  587,449 
Cash, cash equivalents and restricted cash, end of period $ 65,523  $ 49,143  $ 59,658 
See accompanying notes to consolidated financial statements.
F-8


SABRA HEALTH CARE REIT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(in thousands)
Year Ended December 31,
  2020 2019 2018
Supplemental disclosure of cash flow information:
Interest paid $ 92,589  $ 123,854  $ 137,668 
Income taxes paid $ 2,439  $ 3,911  $ 1,800 
Supplemental disclosure of non-cash investing activities:
Decrease in loans receivable and other investments due to acquisition of real estate $ 20,731  $ —  $ — 
Secured debt assumed by buyers in connection with sales of real estate $ 31,830  $ —  $ — 
See accompanying notes to consolidated financial statements.

F-9


SABRA HEALTH CARE REIT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
1.BUSINESS
Overview
Sabra Health Care REIT, Inc. (“Sabra” or the “Company”) was incorporated on May 10, 2010 as a wholly owned subsidiary of Sun Healthcare Group, Inc. (“Sun”) and commenced operations on November 15, 2010 following Sabra’s separation from Sun. Sabra elected to be treated as a real estate investment trust (“REIT”) with the filing of its United States (“U.S.”) federal income tax return for the taxable year beginning January 1, 2011. Sabra believes that it has been organized and operated, and it intends to continue to operate, in a manner to qualify as a REIT. Sabra’s primary business consists of acquiring, financing and owning real estate property to be leased to third-party tenants in the healthcare sector. Sabra primarily generates revenues by leasing properties to tenants and operators throughout the U.S. and Canada. Sabra owns substantially all of its assets and properties and conducts its operations through Sabra Health Care Limited Partnership, a Delaware limited partnership (the “Operating Partnership”), of which Sabra is the sole general partner and a wholly owned subsidiary of Sabra is currently the only limited partner, or by subsidiaries of the Operating Partnership. The Company’s investment portfolio is primarily comprised of skilled nursing/transitional care facilities, senior housing communities (“Senior Housing - Leased”) and specialty hospitals and other facilities, in each case leased to third-party operators; senior housing communities operated by third-party property managers pursuant to property management agreements (“Senior Housing - Managed”); investments in loans receivable; preferred equity investments; and a 49% equity interest in the Enlivant Joint Venture (as defined below).
COVID-19
In March 2020, the World Health Organization declared COVID-19 a pandemic, and the United States declared a national emergency with respect to COVID-19. In the intervening months, COVID-19 has spread globally and led governments and other authorities around the world, including federal, state and local authorities in the United States, to impose measures intended to control its spread, including restrictions on freedom of movement and business operations such as travel bans, border closings, business closures, quarantines and shelter-in-place orders. Although some of these governmental restrictions have since been lifted or scaled back, a recent surge of COVID-19 infections has resulted in the re-imposition of certain restrictions and may lead to other restrictions being re-implemented in response to efforts to reduce the spread of COVID-19. In December 2020, distribution of the COVID-19 vaccine began to all 50 states, and while states have the authority over who receives the vaccine, the Centers for Disease Control and Prevention recommended that the initial distribution prioritize healthcare workers and residents of long-term care facilities. However, governmental restrictions may remain in place for a significant amount of time. The ongoing COVID-19 pandemic and measures intended to prevent its spread have negatively impacted and are expected to continue to negatively impact the Company and its operations in a number of ways, including but not limited to:
Decreased occupancy and increased operating costs for the Company’s tenants and borrowers, which have negatively impacted their operating results and may adversely impact their ability to make full and timely rental payments and debt service payments, respectively, to the Company. In some cases, the Company may have to restructure tenants’ long-term rent obligations and may not be able to do so on terms that are as favorable to the Company as those currently in place. Reduced or modified rental and debt service amounts could result in the determination that the full amounts of the Company’s investments are not recoverable, which could result in an impairment charge. To date, the impact of COVID-19 on the Company’s skilled nursing/transitional care facility operators has been significantly mitigated by the assistance they have received or expect to receive from state and federal assistance programs, including through the CARES Act (as defined and further described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Skilled Nursing Facility Reimbursement Rates” in Part II, Item 7), although these benefits on an individual operator basis vary and may not provide enough relief to meet their rental obligations to the Company. As of September 1, 2020, eligible assisted living facility operators may apply for funding through the CARES Act, and the assistance received or expected to be received will partially mitigate the negative impact of COVID-19 on the Company’s eligible assisted living facility operators. As of December 31, 2020, the Company’s tenants and borrowers have continued to pay expected cash rents and debt service obligations consistent with past practice. However, the longer the duration of the COVID-19 pandemic, the more likely that the Company’s tenants and borrowers will begin to default on these obligations. Such defaults could materially and adversely affect the Company’s results of operations and liquidity, in addition to resulting in potential impairment charges.
Decreased occupancy and increased operating costs within the Company’s Senior Housing - Managed portfolio and in the Company’s 49% equity interest in a joint venture with affiliates of Enlivant and TPG Real Estate, the real estate platform of TPG, that owns senior housing communities managed by Enlivant (the “Enlivant Joint Venture”),
F-10


which have negatively impacted and are expected to continue to negatively impact the operating results of these investments. As noted above, as of September 1, 2020, eligible assisted living facility operators may apply for funding through the CARES Act, and the assistance received or expected to be received will partially mitigate the negative impact of COVID-19 on the Company’s Senior Housing - Managed portfolio and the Enlivant Joint Venture. In addition, on October 1, 2020, the Department of Health and Human Services announced $20 billion of new funding for assisted living facility operators that have already received funds and to those who were previously ineligible. During the year ended December 31, 2020, the Company recognized government grants under the CARES Act and other programs of $5.3 million. Prolonged deterioration in the operating results for the Company’s investments in its Senior Housing - Managed portfolio and the Enlivant Joint Venture could result in the determination that the full amounts of the Company’s investments are not recoverable, which could result in an impairment charge.
The Company’s financial results as of and for the year ended December 31, 2020 reflect the results of the Company’s evaluation of the impact of COVID-19 on its business including, but not limited to, its evaluation of potential impairments of long-lived or other assets, measurement of credit losses on financial instruments, evaluation of any lease modifications, evaluation of lease accounting impact, estimates of fair value and the Company’s ability to continue as a going concern.
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation and Basis of Presentation
The accompanying consolidated financial statements include the accounts of Sabra and its wholly owned subsidiaries as of December 31, 2020 and 2019 and for the years ended December 31, 2020, 2019 and 2018. All significant intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).
GAAP requires the Company to identify entities for which control is achieved through voting rights or other means and to determine which business enterprise is the primary beneficiary of variable interest entities (“VIEs”). A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity’s activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. If the Company were determined to be the primary beneficiary of the VIE, the Company would consolidate investments in the VIE. The Company may change its original assessment of a VIE due to events such as modifications of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk and the disposal of all or a portion of an interest held by the primary beneficiary.
The Company identifies the primary beneficiary of a VIE as the enterprise that has both: (i) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance; and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could be significant to the entity. The Company performs this analysis on an ongoing basis. As of December 31, 2020, the Company determined that it was not the primary beneficiary of any VIEs.
As it relates to investments in loans, in addition to the Company’s assessment of VIEs and whether the Company is the primary beneficiary of those VIEs, the Company evaluates the loan terms and other pertinent facts to determine whether the loan investment should be accounted for as a loan or as a real estate joint venture. If an investment has the characteristics of a real estate joint venture, including if the Company participates in the majority of the borrower’s expected residual profit, the Company would account for the investment as an investment in a real estate joint venture and not as a loan investment. Expected residual profit is defined as the amount of profit, whether called interest or another name, such as an equity kicker, above a reasonable amount of interest and fees expected to be earned by a lender. At December 31, 2020 and 2019, none of the Company’s investments in loans were accounted for as real estate joint ventures.
As it relates to investments in joint ventures, the Company assesses any limited partners’ rights and their impact on the presumption of control of the limited partnership by any single partner. The Company also applies this guidance to managing member interests in limited liability companies. The Company reassesses its determination of which entity controls the joint venture if: there is a change to the terms or in the exercisability of the rights of any partners or members, the sole general partner or managing member increases or decreases its ownership interests, or there is an increase or decrease in the number of outstanding ownership interests. As of December 31, 2020, the Company’s determination of which entity controls its investments in joint ventures has not changed as a result of any reassessment.
F-11


Use of Estimates
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates.
Reclassifications
Certain amounts in the Company’s consolidated statements of income for prior periods have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations.
Out of Period Adjustments
During the three months ended September 30, 2020, the Company identified certain historical errors in the recording of depreciation and amortization expense related to the basis difference in the Enlivant Joint Venture and not correctly expensing the allocable portion of the basis difference upon the sale of assets in the Enlivant Joint Venture. These errors impacted the Company’s investment in unconsolidated joint venture and loss from unconsolidated joint venture as well as its consolidated statements of income, consolidated statements of comprehensive income and consolidated statements of equity since 2018, which impacted the annual periods previously issued. These errors resulted in understating (overstating) previously recorded loss from unconsolidated joint venture and overstating (understating) previously recorded net income by $0.1 million and ($1.7) million for the years ended December 31, 2019 and 2018, respectively. These out of period adjustments were recorded during the year ended December 31, 2020, resulting in a decrease to loss from unconsolidated joint venture and an increase to net income of $1.6 million. Management evaluated the impact of the errors to the current period and prior period financial statements and determined that the impact was not material to any of the impacted periods.
Real Estate Investments and Rental Revenue Recognition
Real Estate Acquisition Valuation
All assets acquired and liabilities assumed in an acquisition of real estate accounted for as a business combination are measured at their acquisition date fair values. For acquisitions of real estate accounted for as an asset acquisition, the fair value of consideration transferred by the Company (including transaction costs) is allocated to all assets acquired and liabilities assumed on a relative fair value basis. The acquisition value of land, building and improvements are included in real estate investments on the accompanying consolidated balance sheets. The acquisition value of above market lease, tenant origination and absorption costs and tenant relationship intangible assets is included in lease intangible assets, net on the accompanying consolidated balance sheets. The acquisition value of below market lease intangible liabilities is included in lease intangible liabilities, net on the accompanying consolidated balance sheets. Acquisition costs associated with real estate acquisitions deemed asset acquisitions are capitalized, and costs associated with real estate acquisitions deemed business combinations are expensed as incurred. Restructuring costs that do not meet the definition of a liability at the acquisition date are expensed in periods subsequent to the acquisition date.
Estimates of the fair values of the tangible assets, identifiable intangibles and assumed liabilities require the Company to make significant assumptions to estimate market lease rates, property operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, and the number of years the property will be held for investment. The Company makes its best estimate based on the Company’s evaluation of the specific characteristics of each tenant’s lease. The use of inappropriate assumptions would result in an incorrect valuation of the Company’s acquired tangible assets, identifiable intangibles and assumed liabilities, which would impact the amount of the Company’s net income.
Depreciation and Amortization
Real estate costs related to the acquisition and improvement of properties are capitalized and amortized on a straight-line basis over the lesser of the expected useful life of the asset and the remaining lease term of any property subject to a ground lease. Tenant improvements are capitalized and amortized on a straight-line basis over the lesser of the expected useful life of the asset and the remaining lease term. Depreciation is discontinued when a property is identified as held for sale. Repair and maintenance costs are charged to expense as incurred and significant replacements and betterments are capitalized. Repair and maintenance costs include all costs that do not extend the useful life of the real estate asset. The Company considers the period of future benefit of an asset to determine its appropriate useful life. Depreciation of real estate assets and amortization of tenant origination and absorption costs and tenant relationship lease intangibles are included in depreciation and amortization on the accompanying consolidated statements of income. Amortization of above and below market lease intangibles is included in rental income on the accompanying consolidated statements of income. The Company anticipates the estimated useful lives of its assets by class to be generally as follows: land improvements, five to 20 years; buildings and building improvements, five to
F-12


40 years; and furniture and equipment, three to 10 years. Intangibles are generally amortized over the remaining noncancellable lease terms, with tenant relationship intangible amortization periods including extension periods of up to 10 years.
Impairment of Real Estate Investments
The Company regularly monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate investments may not be recoverable or realized. When indicators of potential impairment suggest that the carrying value of real estate investments may not be recoverable, the Company assesses the recoverability by estimating whether the Company will recover the carrying value of its real estate investments through the future cash flows and the eventual disposition of the investment. In some instances, there may be various potential outcomes for an investment and its potential future cash flows. In these instances, the future cash flows used to assess recoverability are based on several assumptions and are probability-weighted based on the Company’s best estimates as of the date of evaluation. These assumptions include, among others, cash flow projections, holding period, market capitalization rates, and letters of intent, purchase and sale agreements and recent sales data for comparable properties. When necessary, a discount rate assumption may be used to determine fair value. The assumptions are generally based on management’s experience in its local real estate markets, and the effects of current market conditions, which are subject to economic and market uncertainties. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of its real estate investments, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of its real estate investments.
Revenue Recognition
The Company recognizes rental revenue from tenants, including rental abatements, lease incentives and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related leases when it is probable that substantially all rents over the life of a lease are collectible. Certain of the Company’s leases provide for contingent rents equal to a percentage of the facility’s revenue in excess of specified base amounts or other thresholds. Such revenue is recognized when actual results reported by the tenant, or estimates of tenant results, exceed the applicable base amount or other threshold.
The Company assesses the collectability of rents on a lease-by-lease basis, and in doing so, considers such things as historical bad debts, tenant creditworthiness, current economic trends, facility operating performance, lease structure, credit enhancements (including guarantees), current developments relevant to a tenant’s business specifically and to its business category generally, and changes in tenants’ payment patterns. The Company’s assessment includes an estimation of a tenant’s ability to fulfill all of its rental obligations over the remaining lease term. In addition, with respect to tenants in bankruptcy, management makes estimates of the expected recovery of pre-petition and post-petition claims in assessing the estimated collectability of the related receivable. If at any time the Company cannot determine that it is probable that substantially all rents over the life of a lease are collectible, rental revenue will be recognized only to the extent of payments received, and all receivables associated with the lease will be written off irrespective of amounts expected to be collectible. Any recoveries of these amounts will be recorded in future periods upon receipt of payment. Write-offs of receivables and any recoveries of previously written-off receivables are recorded as adjustments to rental revenue.
Revenue from resident fees and services is recorded monthly as services are provided and includes resident room and care charges, ancillary services charges and other resident charges.
Government Grants
Government assistance provided to the Company in the form of an income grant, which is not related to long-lived assets and is not required to be repaid, is recognized as grant income when there is reasonable assurance that the grant will be received and the Company will comply with any conditions associated with the grant. Additionally, grants are recognized over the periods in which the Company recognizes the qualifying expenses and/or lost income for which the grants are intended to compensate. As of December 31, 2020, the amount of qualifying expenditures exceeded amounts recognized under the CARES Act and other programs, and the Company had complied with all grant conditions. Accordingly, during the year ended December 31, 2020, the Company recognized $1.8 million of grants in resident fees and services and $3.5 million of grants in loss from unconsolidated joint venture in the accompanying consolidated statements of income.
Assets Held for Sale, Dispositions and Discontinued Operations
The Company generally considers real estate to be “held for sale” when the following criteria are met: (i) management commits to a plan to sell the property, (ii) the property is available for sale immediately, (iii) the property is actively being marketed for sale at a price that is reasonable in relation to its current fair value, (iv) the sale of the property within one year is considered probable and (v) significant changes to the plan to sell are not expected. Real estate that is held for sale and its related assets are classified as assets held for sale and are included in accounts receivable, prepaid expenses and other assets, net on the accompanying consolidated balance sheets. Secured indebtedness and other liabilities related to real estate held for sale
F-13


are classified as liabilities related to assets held for sale and are included in accounts payable and accrued liabilities on the accompanying consolidated balance sheets. Real estate classified as held for sale is no longer depreciated and is reported at the lower of its carrying value or its estimated fair value less estimated costs to sell. As of December 31, 2020 and 2019, the Company did not have any assets held for sale.
For sales of real estate where the Company has collected the consideration to which it is entitled in exchange for transferring the real estate, the related assets and liabilities are removed from the balance sheet and the resultant gain or loss is recorded in the period in which the transaction closes. Any post-sale involvement is accounted for as separate performance obligations, and when the separate performance obligations are satisfied, the portion of the sales price allocated to each such obligation is recognized.
Additionally, the Company records the operating results related to real estate that has been disposed of or classified as held for sale as discontinued operations for all periods presented if it represents a strategic shift that has or will have a major effect on the Company’s operations and financial results.
Investment in Unconsolidated Joint Venture
The Company reports investments in unconsolidated entities over whose operating and financial policies it has the ability to exercise significant influence under the equity method of accounting. Under this method of accounting, the Company’s share of the investee’s earnings or losses is included in the Company’s consolidated statements of income. The initial carrying value of the investment is based on the amount paid to purchase the joint venture interest. Differences between the Company’s cost basis and the basis reflected at the joint venture level are generally amortized over the lives of the related assets and liabilities, and such amortization is included in the Company’s share of earnings of the joint venture. In addition, distributions received from unconsolidated entities are classified based on the nature of the activity or activities that generated the distribution.
The Company regularly monitors events and changes in circumstances that could indicate that the carrying amounts of its equity method investments may not be recoverable or realized. When indicators of potential impairment are identified, the Company evaluates its equity method investments for impairment based on a comparison of the fair value of the investment to its carrying value. The fair value is estimated based on discounted cash flows that include all estimated cash inflows and outflows over a specified holding period and any estimated debt premiums or discounts. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of its equity method investment, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of its equity method investment.
Loans Receivable and Interest Income
Loans Receivable
The Company’s loans receivable are reflected at amortized cost on the accompanying consolidated balance sheets. The amortized cost of a loan receivable is the outstanding unpaid principal balance, net of unamortized discounts, costs and fees directly associated with the origination of the loan.
Loans acquired in connection with a business combination are recorded at their acquisition date fair value. The Company determines the fair value of loans receivable based on estimates of expected discounted cash flows, collateral, credit risk and other factors. The Company does not establish a valuation allowance at the acquisition date, as the amount of estimated future cash flows reflects its judgment regarding their uncertainty. The Company recognizes the difference between the acquisition date fair value and the total expected cash flows as interest income using the effective interest method over the life of the applicable loan. The Company immediately recognizes in income any unamortized balances if the loan is repaid before its contractual maturity.
On a quarterly basis, the Company evaluates the collectability of its loan portfolio, including the portion of unfunded loan commitments expected to be funded, and establishes an allowance for credit losses. The allowance for credit losses is calculated using the related amortization schedules, payment histories and loan-to-value ratios. The following rates are applied to determine the aggregate expected losses, which is recorded as the allowance for credit losses: (i) a default rate, (ii) a liquidation cost rate and (iii) a distressed property reduction rate. If no loan-to-value ratio is available, a loss severity rate is applied in place of the liquidation cost rate and the distressed property reduction rate. The default rate is based on average charge-off and delinquency rates from the Federal Reserve, and the other rates are based on industry research and historical performance of a similar portfolio of financial assets. The allowance for credit losses is a valuation allowance that reflects management’s estimate of losses inherent in the loan portfolio as of the balance sheet date. The reserve is adjusted through provision for loan losses and other reserves on the Company’s consolidated statements of income and is decreased by charge-offs to specific loans when losses are confirmed.
F-14


Interest Income
Interest income on the Company’s loans receivable is recognized on an accrual basis over the life of the investment using the interest method. Direct loan origination costs are amortized over the term of the loan as an adjustment to interest income. When concerns exist as to the ultimate collection of principal or interest due under a loan, the loan is placed on nonaccrual status, and the Company will not recognize interest income until the cash is received, or the loan returns to accrual status. If the Company determines that the collection of interest according to the contractual terms of the loan or through the receipts of assets in satisfaction of contractual amounts due is probable, the Company will resume the accrual of interest. In instances where borrowers are in default under the terms of their loans, the Company may continue recognizing interest income provided that all amounts owed under the contractual terms of the loan, including accrued and unpaid interest, do not exceed the estimated fair value of the collateral, less costs to sell.
On a quarterly basis, the Company evaluates the collectability of its interest income receivable and establishes a reserve for amounts not expected to be collected. The Company’s evaluation includes reviewing credit quality indicators such as payment status, changes affecting the operations of the facilities securing the loans, and national and regional economic factors. The reserve is a valuation allowance that reflects management’s estimate of losses inherent in the interest income receivable balance as of the balance sheet date. The reserve is adjusted through provision for loan losses and other reserves on the Company’s consolidated statements of income and is decreased by charge-offs to specific receivables when losses are confirmed.
Preferred Equity Investments and Preferred Return
Preferred equity investments are accounted for at unreturned capital contributions, plus accrued and unpaid preferred returns. The Company recognizes preferred return income on a monthly basis based on the outstanding investment including any previously accrued and unpaid return. As a preferred member of the preferred equity joint ventures in which the Company participates, the Company is not entitled to share in the joint venture’s earnings or losses. Rather, the Company is entitled to receive a preferred return, which is deferred if the cash flow of the joint venture is insufficient to currently pay the accrued preferred return.
The Company regularly monitors events and changes in circumstances that could indicate that the carrying amounts of its preferred equity investments may not be recoverable or realized. On a quarterly basis, the Company evaluates its preferred equity investments for impairment based on a comparison of the fair value of the investment to its carrying value. The fair value is estimated based on discounted cash flows that include all estimated cash inflows and outflows over a specified holding period. If, based on this analysis, the Company does not believe that it will be able to recover the carrying value of its preferred equity investment, the Company would record an impairment loss to the extent that the carrying value exceeds the estimated fair value of its preferred equity investment.
Cash and Cash Equivalents
The Company considers all short-term (with an original maturity of three months or less), highly-liquid investments utilized as part of the Company’s cash-management activities to be cash equivalents. Cash equivalents may include cash and short-term investments. Short-term investments are stated at cost, which approximates fair value.
The Company’s cash and cash equivalents balance exceeded federally insurable limits as of December 31, 2020. To date, the Company has experienced no loss or lack of access to cash in its operating accounts. The Company has a corporate banking relationship with Bank of America, N.A. in which it deposits the majority of its cash.
Restricted Cash
Restricted cash primarily consists of amounts held by an exchange accommodation titleholder or by secured debt lenders to provide for future real estate tax expenditures, tenant improvements and capital expenditures. Pursuant to the terms of the Company’s leases with certain tenants, the Company has assigned its interests in certain of these restricted cash accounts with secured debt lenders to the tenants, and this amount is included in accounts payable and accrued liabilities on the Company’s consolidated balance sheets. As of December 31, 2020 and 2019, restricted cash totaled $6.4 million and $10.0 million, respectively, and restricted cash obligations totaled $3.5 million and $5.6 million, respectively.
Stock-Based Compensation
Stock-based compensation expense for stock-based awards granted to Sabra’s employees (team members) and its non-employee directors is recognized in the statements of income based on the estimated grant date fair value, as adjusted. Compensation expense for awards with graded vesting schedules is generally recognized ratably over the period from the grant date to the date when the award is no longer contingent on the recipient providing additional services. Compensation expense
F-15


for awards with performance-based vesting conditions is recognized based on the Company’s estimate of the ultimate value of such award after considering the Company’s expectations of future performance. Forfeitures of stock-based awards are recognized as they occur.
Deferred Financing Costs
Deferred financing costs representing fees paid to third parties are amortized over the terms of the respective financing agreements using the interest method. Deferred financing costs related to secured debt, term loans and senior unsecured notes are recorded as a reduction of the related debt liability, and deferred financing costs related to the revolving credit facility are recorded in accounts receivable, prepaid expenses and other assets, net. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financings that do not close are expensed in the period in which it is determined that the financing will not close.
Income Taxes
The Company elected to be treated as a REIT with the filing of its U.S. federal income tax return for the taxable year beginning January 1, 2011. The Company believes that it has been organized and operated, and it intends to continue to operate, in a manner to qualify as a REIT. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the Company’s annual REIT taxable income to stockholders (which is computed without regard to the dividends-paid deduction or net capital gains and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax on income that it distributes as dividends to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to U.S. federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost, unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially and adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company believes that it is organized and operates in such a manner as to qualify for treatment as a REIT.
As a result of certain investments, the Company now records income tax expense or benefit with respect to certain of its entities that are taxed as taxable REIT subsidiaries under provisions similar to those applicable to regular corporations and not under the REIT provisions.
The Company accounts for deferred income taxes using the asset and liability method and recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Company’s financial statements or tax returns. Under this method, the Company determines deferred tax assets and liabilities based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Any increase or decrease in the deferred tax liability that results from a change in circumstances, and that causes a change in the Company’s judgment about expected future tax consequences of events, is included in the tax provision when such changes occur. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards. A valuation allowance is provided if the Company believes it is more likely than not that all or some portion of the deferred tax asset will not be realized. Any increase or decrease in the valuation allowance that results from a change in circumstances, and that causes a change in the Company’s judgment about the realizability of the related deferred tax asset, is included in the tax provision when such changes occur. 
The Company evaluates its tax positions using a two-step approach: step one (recognition) occurs when the Company concludes that a tax position, based solely on its technical merits, is more likely than not to be sustained upon examination, and step two (measurement) is only addressed if step one has been satisfied (i.e., the position is more likely than not to be sustained). Under step two, the tax benefit is measured as the largest amount of benefit (determined on a cumulative probability basis) that is more likely than not to be realized upon ultimate settlement. The Company will recognize tax penalties relating to unrecognized tax benefits as additional tax expense.
Foreign Currency
Certain of the Company’s subsidiaries’ functional currencies are the local currencies of their respective foreign jurisdictions. The Company translates the results of operations of its foreign subsidiaries into U.S. dollars using average rates of exchange in effect during the period presented, and it translates balance sheet accounts using exchange rates in effect at the end of the period presented. The Company records resulting currency translation adjustments in accumulated other comprehensive loss, a component of stockholders’ equity, on its consolidated balance sheets, and it records foreign currency transaction gains and losses as a component of interest and other income on its consolidated statements of income.
F-16


Derivative Instruments
The Company uses certain types of derivative instruments for the purpose of managing interest rate and currency risk. To qualify for hedge accounting, derivative instruments used for risk management purposes must effectively reduce the risk exposure that they are designed to hedge. In addition, at inception, the Company must make an assessment that the transaction that the Company intends to hedge is probable of occurring, and this assessment must be updated each reporting period.
The Company recognizes all derivative instruments as assets or liabilities on the consolidated balance sheets at their fair value. For derivatives designated and qualified as a hedge, the change in fair value of the effective portion of the derivatives is recognized in accumulated other comprehensive loss. Changes in the fair value of derivative instruments that are not designated in hedging relationships or that do not meet the criteria for hedge accounting would be recognized in earnings.
The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objectives and strategy for undertaking various hedge transactions. This process includes designating all derivatives that are part of a hedging relationship to specific transactions, as well as recognizing obligations or assets on the consolidated balance sheets. The Company also assesses and documents, both at inception of the hedging relationship and on a quarterly basis thereafter, whether the derivatives are highly effective in offsetting the designated risks associated with the respective hedged items. If it is determined that a derivative ceases to be highly effective as a hedge, or that it is probable the underlying transaction will not occur, the Company would discontinue hedge accounting prospectively and record the appropriate adjustment to earnings based on the then-current fair value of the derivative.
Fair Value Measurements
Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other financial instruments and balances at fair value on a non-recurring basis (e.g., carrying value of impaired loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories:
Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities;
Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and
Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable.
When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and classifies such items as Level 1 or Level 2. In instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company may use several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) to establish a fair value. If more than one valuation source is used, the Company will assign weights to the various valuation sources. Additionally, when determining the fair value of liabilities in circumstances in which a quoted price in an active market for an identical liability is not available, the Company measures fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities or similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach.
Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument.
The Company considers the following factors to be indicators of an inactive market: (i) there are few recent transactions, (ii) price quotations are not based on current information, (iii) price quotations vary substantially either over time or among market makers (for example, some brokered markets), (iv) indexes that previously were highly correlated with the fair values of the asset or liability are demonstrably uncorrelated with recent indications of fair value for that asset or liability, (v) there is a
F-17


significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) for observed transactions or quoted prices when compared with the Company’s estimate of expected cash flows, considering all available market data about credit and other nonperformance risk for the asset or liability, (vi) there is a wide bid-ask spread or significant increase in the bid-ask spread, (vii) there is a significant decline or absence of a market for new issuances (that is, a primary market) for the asset or liability or similar assets or liabilities, and (viii) little information is released publicly (for example, a principal-to-principal market).
The Company considers the following factors to be indicators of non-orderly transactions: (i) there was not adequate exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities under current market conditions, (ii) there was a usual and customary marketing period, but the seller marketed the asset or liability to a single market participant, (iii) the seller is in or near bankruptcy or receivership (that is, distressed), or the seller was required to sell to meet regulatory or legal requirements (that is, forced), and (iv) the transaction price is an outlier when compared with other recent transactions for the same or similar assets or liabilities.
Per Share Data
Basic earnings per common share is computed by dividing net income applicable to common stockholders by the weighted average number of shares of common stock and common equivalents outstanding during the period. Diluted earnings per common share is calculated by including the effect of dilutive securities. See Note 14, “Earnings Per Common Share.”
Industry Segments
The Company has one reportable segment consisting of investments in healthcare-related real estate properties.
Beds, Units and Other Measures
The number of beds, units and other measures used to describe the Company’s real estate investments included in the Notes to Consolidated Financial Statements are presented on an unaudited basis.
Recently Issued Accounting Standards Update
Adopted
Effective January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases, as amended by subsequent ASUs (“Topic 842”) using the modified retrospective transition method. Topic 842 supersedes guidance related to accounting for leases and provides for the recognition of lease assets and lease liabilities by lessees for those leases previously classified as operating leases under GAAP. In addition, the Company elected to use the available practical expedients, and therefore did not reassess classification of its existing leases and did not separate lease and nonlease components (such as services rendered). As a result of electing these practical expedients, the Company, beginning January 1, 2019, recognizes revenue from its leased skilled nursing/transitional care facilities, Senior Housing - Leased communities, and specialty hospitals and other facilities under Topic 842 and recognizes revenue from its Senior Housing - Managed communities under the Revenue ASUs (codified under Topic 606). Upon adoption of Topic 842, the Company recognized its operating leases for which it is the lessee, mainly its corporate office lease and ground leases, as a lease liability of $10.0 million, included in accounts payable and accrued liabilities on the consolidated balance sheets, and a corresponding right-of-use asset, included in accounts receivable, prepaid expenses and other assets, net on the consolidated balance sheets. Upon adoption of Topic 842 and as of the adoption date, the Company recorded a $32.5 million reduction in equity and accounts receivable due to the cumulative effect of this change. This reduction consisted of $17.5 million of straight-line rental income receivables and $15.0 million of cash rent receivables, although management believes the $15.0 million of cash rent receivables are collectible.
In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires that a financial asset (or a group of financial assets) measured at amortized cost basis be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The amendments in ASU 2016-13 are an improvement because they eliminate the probable initial recognition threshold under current GAAP and, instead, reflect an entity’s current estimate of all expected credit losses. Previously, when credit losses were measured under GAAP, an entity generally only considered past events and current conditions in measuring the incurred loss. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (“ASU 2018-19”), which amends ASU 2016-13 to clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20, and instead, impairment of such receivables should be accounted for in accordance with Topic 842. In
F-18


November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (“ASU 2019-11”), which amends ASU 2016-13 to clarify or address stakeholders’ specific issues about certain aspects of ASU 2016-13. ASU 2016-13, ASU 2018-19 and ASU 2019-11 are effective for fiscal years and interim periods within those years beginning after December 15, 2019, with early adoption permitted as of the fiscal years beginning after December 15, 2018. An entity will apply the amendments in these updates through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company adopted ASU 2016-13, ASU 2018-19 and ASU 2019-11 (collectively, “Topic 326”) on January 1, 2020.
The financial assets within the scope of Topic 326 are the Company’s investments in a sales-type lease and loans receivable, including the portion of unfunded loan commitments expected to be funded. The allowance for credit losses is calculated using the related amortization schedules, payment histories and loan-to-value ratios. The following rates are applied to determine the aggregate expected losses, which is recorded as the allowance for credit losses: (i) a default rate, (ii) a liquidation cost rate and (iii) a distressed property reduction rate. If no loan-to-value ratio is available, a loss severity rate is applied in place of the liquidation cost rate and the distressed property reduction rate. The default rate is based on average charge-off and delinquency rates from the Federal Reserve, and the other rates are based on industry research and historical performance of a similar portfolio of financial assets. Related interest income receivable balances are evaluated separately for collectability, and reserves are established based on management’s estimate of losses.
Upon adoption of these standards, the Company recognized the cumulative effect on the opening balance of the allowance for credit losses in the condensed consolidated balance sheets, which resulted in an increase to cumulative distributions in excess of net income and a decrease to total assets of $0.2 million.
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 updates the fair value measurement disclosure requirements by (i) eliminating certain requirements, including disclosure of the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements, (ii) modifying certain requirements, including clarifying that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date and (iii) adding certain requirements, including disclosure of the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years and interim periods within those years beginning after December 15, 2019, with early adoption permitted for any eliminated or modified disclosures. The Company adopted ASU 2018-13 on January 1, 2020. The adoption of ASU 2018-13 did not have a material impact on the Company’s consolidated financial statements.
In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, ASU 2020-06 removes the liability and equity separation models for convertible instruments. Instead, entities will account for convertible debt instruments wholly as debt unless convertible instruments contain features that require bifurcation as a derivative or that result in substantial premiums accounted for as paid-in capital. ASU 2020-06 also requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020, and can be adopted on either a retrospective or modified retrospective basis. The Company adopted ASU 2020-06 on January 1, 2021. The adoption of ASU 2020-06 did not have an impact on the Company’s consolidated financial statements.
Issued but Not Yet Adopted
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 provides temporary optional guidance that provides transition relief for reference rate reform, including optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships and other transactions that reference LIBOR or a reference rate that is expected to be discontinued as a result of reference rate reform if certain criteria are met. ASU 2020-04 is effective upon issuance, and the provisions generally can be applied prospectively as of January 1, 2020 through December 31, 2022. During the first quarter of 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which refines the
F-19


scope of Topic 848 and clarifies some of its guidance. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

3.RECENT REAL ESTATE ACQUISITIONS
    During the year ended December 31, 2020, the Company acquired three Senior Housing - Leased communities and one Senior Housing - Managed community. These investments were part of the Company’s proprietary development pipeline, and $20.7 million was previously funded through its preferred equity investments in these developments. During the year ended December 31, 2019, the Company acquired one Senior Housing - Leased community, three specialty hospitals/other facilities and one Senior Housing - Managed community. The consideration was allocated as follows (in thousands):
Year Ended December 31,
2020 2019
Land $ 5,800  $ 10,049 
Building and improvements 104,952  39,434 
Tenant origination and absorption costs intangible assets 2,578  1,438 
Tenant relationship intangible assets 347  215 
Total consideration $ 113,677  $ 51,136 
The tenant origination and absorption costs intangible assets and tenant relationship intangible assets had weighted-average amortization periods as of the respective dates of acquisition of seven years and 25 years, respectively, for acquisitions completed during the year ended December 31, 2020, and six years and 21 years, respectively, for acquisitions completed during the year ended December 31, 2019.
For the year ended December 31, 2020, the Company recognized $12.5 million and $4.8 million of total revenues and net income attributable to common stockholders, respectively, from the facilities acquired during the year ended December 31, 2020. For the year ended December 31, 2019, the Company recognized $0.8 million and $0.4 million of total revenues and net income attributable to common stockholders, respectively, from the facilities acquired during the year ended December 31, 2019.

4.REAL ESTATE PROPERTIES HELD FOR INVESTMENT
Real Estate Investments
The Company’s real estate properties held for investment consisted of the following (dollars in thousands):
As of December 31, 2020  
Property Type Number of
Properties
Number of
Beds/Units
Total
Real Estate
at Cost
Accumulated
Depreciation
Total
Real Estate
Investments, Net
Skilled Nursing/Transitional Care 287  31,761  $ 3,644,470  $ (385,094) $ 3,259,376 
Senior Housing - Leased 65  4,282  707,634  (87,600) 620,034 
Senior Housing - Managed 47  4,924  942,996  (142,538) 800,458 
Specialty Hospitals and Other 27  1,092  670,793  (66,021) 604,772 
426  42,059  5,965,893  (681,253) 5,284,640 
Corporate Level 802  (404) 398 
$ 5,966,695  $ (681,657) $ 5,285,038 
F-20


As of December 31, 2019
Property Type Number of
Properties
Number of
Beds/Units
Total
Real Estate
at Cost
Accumulated
Depreciation
Total
Real Estate
Investments, Net
Skilled Nursing/Transitional Care 296  33,290  $ 3,701,666  $ (306,565) $ 3,395,101 
Senior Housing - Leased 62  3,820  630,688  (72,278) 558,410 
Senior Housing - Managed 46  4,809  907,771  (112,893) 794,878 
Specialty Hospitals and Other 25  1,193  639,721  (47,124) 592,597 
429  43,112  5,879,846  (538,860) 5,340,986 
Corporate Level 737  (353) 384 
$ 5,880,583  $ (539,213) $ 5,341,370 
December 31, 2020 December 31, 2019
Building and improvements $ 5,120,598  $ 5,042,435 
Furniture and equipment 249,034  239,229 
Land improvements 2,220  1,534 
Land 594,843  597,385 
5,966,695  5,880,583 
Accumulated depreciation (681,657) (539,213)
$ 5,285,038  $ 5,341,370 
Operating Leases
As of December 31, 2020, the substantial majority of the Company’s real estate properties (excluding 47 Senior Housing - Managed communities) were leased under triple-net operating leases with expirations ranging from less than one year to 16 years. As of December 31, 2020, the leases had a weighted-average remaining term of eight years. The leases generally include provisions to extend the lease terms and other negotiated terms and conditions. The Company, through its subsidiaries, retains substantially all of the risks and benefits of ownership of the real estate assets leased to the tenants. The Company may receive additional security under these operating leases in the form of letters of credit and security deposits from the lessee or guarantees from the parent of the lessee. Security deposits received in cash related to tenant leases are included in accounts payable and accrued liabilities on the accompanying consolidated balance sheets and totaled $17.5 million and $10.5 million as of December 31, 2020 and 2019, respectively, and letters of credit deposited with the Company totaled approximately $85 million and $83 million as of December 31, 2020 and 2019, respectively. In addition, the Company’s tenants have deposited with the Company $16.9 million and $14.3 million as of December 31, 2020 and 2019, respectively, for future real estate taxes, insurance expenditures and tenant improvements related to the Company’s properties and their operations, and these amounts are included in accounts payable and accrued liabilities on the accompanying consolidated balance sheets.
Lessor costs that are paid by the lessor and reimbursed by the lessee are included in the measurement of variable lease revenue and the associated expense. As a result, the Company recognized variable lease revenue and the associated expense of $20.9 million and $17.6 million during the years ended December 31, 2020 and 2019, respectively.
The Company monitors the creditworthiness of its tenants by reviewing credit ratings (if available) and evaluating the ability of the tenants to meet their lease obligations to the Company based on the tenants’ financial performance, including the evaluation of any parent guarantees (or the guarantees of other related parties) of tenant lease obligations. As formal credit ratings may not be available for most of the Company’s tenants, the primary basis for the Company’s evaluation of the credit quality of its tenants (and more specifically the tenant’s ability to pay their rent obligations to the Company) is the tenant’s lease coverage ratio or the parent’s fixed charge coverage ratio for those entities with a parent guarantee. These coverage ratios include earnings before interest, taxes, depreciation, amortization and rent (“EBITDAR”) to rent and earnings before interest, taxes, depreciation, amortization, rent and management fees (“EBITDARM”) to rent at the lease level and consolidated EBITDAR to total fixed charges at the parent guarantor level when such a guarantee exists. The Company obtains various financial and operational information from its tenants each month and reviews this information in conjunction with the above-described coverage metrics to identify financial and operational trends, evaluate the impact of the industry’s operational and financial environment (including the impact of government reimbursement), and evaluate the management of the tenant’s operations. These metrics help the Company identify potential areas of concern relative to its tenants’ credit quality and ultimately the tenant’s ability to generate sufficient liquidity to meet its obligations, including its obligation to continue to pay the rent due to the Company.
F-21


During the year ended December 31, 2020, the auditors for Genesis Healthcare, Inc. (“Genesis”) and subsidiaries of Signature Healthcare (“Signature”) that lease facilities from the Company each expressed substantial doubt over the respective abilities of Genesis and Signature to continue as a going concern. Accordingly, the Company concluded that its leases with Genesis and Signature should no longer be accounted for on an accrual basis and wrote off $14.3 million of non-cash rent receivable balances and lease intangibles related to these leases.
For the year ended December 31, 2020, no tenant relationship represented 10% or more of the Company’s total revenues.
As of December 31, 2020, the future minimum rental payments from the Company’s properties held for investment under non-cancelable operating leases were as follows and may materially differ from actual future rental payments received (in thousands):
2021 $ 434,074 
2022 418,547 
2023 408,367 
2024 409,357 
2025 399,984 
Thereafter 1,561,535 
$ 3,631,864 
Senior Housing - Managed Communities
The Company’s Senior Housing - Managed communities offer residents certain ancillary services that are not contemplated in the lease with each resident (i.e., housekeeping, laundry, guest meals, etc.). These services are provided and paid for in addition to the standard services included in each resident lease (i.e., room and board, standard meals, etc.). The Company bills residents for ancillary services one month in arrears and recognizes revenue as the services are provided, as the Company has no continuing performance obligation related to those services. Resident fees and services includes ancillary service revenue of $0.9 million, $0.8 million and $0.5 million for the years ended December 31, 2020, 2019 and 2018, respectively.
Investment in Unconsolidated Joint Venture
The Company has a 49% equity interest in the Enlivant Joint Venture with affiliates of Enlivant and TPG Real Estate, the real estate platform of TPG, that owns senior housing communities managed by Enlivant. During the year ended December 31, 2020, the Enlivant Joint Venture sold 12 senior housing communities for aggregate gross proceeds of $18.2 million, and the Company recorded an aggregate net loss on sale of real estate related to unconsolidated joint venture of $3.3 million. During the year ended December 31, 2019, the Enlivant Joint Venture sold two senior housing communities for aggregate gross proceeds of $6.3 million, and the Company recorded an aggregate net loss on sale of real estate related to unconsolidated joint venture of $1.7 million. As of December 31, 2020, the Enlivant Joint Venture owned 158 senior housing communities, and the book value of the Company’s investment in the Enlivant Joint Venture was $288.8 million.
The following tables present summarized financial information for the Enlivant Joint Venture and, except for basis adjustments and loss from unconsolidated joint venture, reflect the historical cost basis of the assets which pre-dated the Company’s investment in the Enlivant Joint Venture (in thousands):
As of December 31,
2020 2019
Total assets $ 490,541  $ 504,920 
Total liabilities 824,410  815,299 
Member’s deficit (333,869) (310,379)
F-22


Year Ended December 31,
2020 2019 2018
Total revenues $ 299,031  $ 312,055  $ 303,486 
Operating expenses 240,331  231,659  228,458 
Net income 5,196  13,161  10,378 
Company’s share of net income $ 2,546  $ 6,449  $ 5,085 
Basis adjustments 19,145  13,245  10,516 
Loss from unconsolidated joint venture $ (16,599) $ (6,796) $ (5,431)
The Enlivant Joint Venture has experienced decreased occupancy and increased operating costs as a result of the impact from the COVID-19 pandemic that, if they continue to negatively impact the operating results of the Enlivant Joint Venture for a prolonged period, could result in the determination that the full amount of the Company’s investment is not recoverable, resulting in a possible impairment charge.
Net Investment in Sales-Type Lease
During the year ended December 31, 2020, the Company modified its direct financing lease and reassessed the classification of this lease in accordance with Topic 842 and determined the lease should be accounted for as a sales-type lease. As of December 31, 2020, the Company had a $24.2 million net investment in one skilled nursing/transitional care facility leased to an operator under a sales-type lease, as the tenant is obligated to purchase the property at the end of the lease term. The net investment in sales-type lease is recorded in accounts receivable, prepaid expenses and other assets, net on the accompanying consolidated balance sheets and represents the present value of total rental payments of $2.3 million, plus the estimated purchase price of $24.8 million, less the unearned lease income of $2.8 million and allowance for credit losses of $0.1 million as of December 31, 2020. Unearned lease income represents the excess of the minimum lease payments and residual value over the cost of the investment. Unearned lease income is deferred and amortized to income over the lease term to provide a constant yield when collectability of the lease payments is reasonably assured. Income from the Company’s net investment in sales-type lease was $2.7 million, $2.7 million and $2.6 million for the years ended December 31, 2020, 2019 and 2018, respectively, and is reflected in interest and other income on the accompanying consolidated statements of income. Upon adoption of Topic 326 on January 1, 2020 and as of the adoption date, the Company recorded a $0.2 million reduction in equity and increase to its allowance for credit losses due to the cumulative effect of the changes contemplated by Topic 326. During the year ended December 31, 2020, the Company reduced its allowance for credit losses by $0.1 million. Future minimum lease payments contractually due under the sales-type lease at December 31, 2020, were as follows: $2.3 million for 2021, $2.4 million for 2022 and $0.8 million for 2023.

5.IMPAIRMENT OF REAL ESTATE AND DISPOSITIONS
2020
Impairment of Real Estate
During the year ended December 31, 2020, the Company recognized a $4.0 million real estate impairment related to one skilled nursing/transitional care facility sold during the year and three senior housing communities.
Dispositions
During the year ended December 31, 2020, the Company completed the sale of eight skilled nursing/transitional care facilities for aggregate consideration, net of closing costs, of $50.0 million. The net carrying value of the assets and liabilities of these facilities was $47.1 million, which resulted in an aggregate $2.9 million net gain on sale.
During the year ended December 31, 2020, the Company recognized $4.0 million of net income, which includes the $2.9 million net gain on sale and $0.6 million of real estate impairment, during the year ended December 31, 2019, the Company recognized $12.6 million of net loss, which includes $15.5 million of real estate impairment, and during the year ended December 31, 2018, the Company recognized $5.4 million of net income, in each case from these facilities. The sale of these facilities does not represent a strategic shift that has or will have a major effect on the Company’s operations and financial results, and therefore the results of operations attributable to these facilities have remained in continuing operations.
F-23


2019
Impairment of Real Estate
During the year ended December 31, 2019, the Company recognized a $121.8 million real estate impairment, of which $95.2 million related to the 30 Senior Care Centers facilities that the Company sold and one additional Senior Care Centers facility that the Company transitioned to another operator, and the remaining $26.6 million related to six skilled nursing/transitional care facilities that were subsequently sold, and four senior housing communities.
Dispositions
During the year ended December 31, 2019, the Company completed the sale of 39 skilled nursing/transitional care facilities and seven senior housing communities for aggregate consideration, net of closing costs, of $323.6 million. The net carrying value of the assets and liabilities of these facilities was $321.3 million, resulting in an aggregate $2.3 million net gain on sale.
During the year ended December 31, 2019, the Company recognized $84.9 million of net loss, which includes $89.4 million of real estate impairment and the $2.3 million net gain on sale, and during the year ended December 31, 2018, recognized $19.1 million of net income, which includes $0.9 million of real estate impairment, in each case from these facilities. The sale of these facilities does not represent a strategic shift that has or will have a major effect on the Company’s operations and financial results, and therefore the results of operations attributable to these facilities have remained in continuing operations.
2018
Impairment of Real Estate
During the year ended December 31, 2018, the Company recognized a $1.4 million real estate impairment, of which $0.9 million related to one skilled nursing/transitional care facility that was subsequently sold and $0.5 million related to one senior housing community sold during the year.
Dispositions
During the year ended December 31, 2018, the Company completed the sale of 51 skilled nursing/transitional care facilities, six senior housing communities and one Senior Housing - Managed community for aggregate consideration, net of closing costs, of $382.6 million. The net carrying value of the assets and liabilities of these facilities was $254.4 million, resulting in an aggregate $128.2 million net gain on sale.
During the year ended December 31, 2018, the Company recognized $151.3 million of net income, which includes the $128.2 million net gain on sale and $0.5 million of real estate impairment. The sale of these facilities does not represent a strategic shift that has or will have a major effect on the Company’s operations and financial results, and therefore the results of operations attributable to these facilities have remained in continuing operations.

F-24


6.INTANGIBLE ASSETS AND LIABILITIES
The following table summarizes the Company’s intangible assets and liabilities as of December 31, 2020 and 2019 (in thousands):
December 31,
2020 2019
Lease Intangible Assets:
Above market leases    $ 35,695  $ 51,040 
Tenant origination and absorption costs    60,413  65,234 
Tenant relationship 23,289  23,150 
Gross lease intangible assets    119,397  139,424 
Accumulated amortization (36,601) (37,915)
Lease intangible assets, net    $ 82,796  $ 101,509 
Lease Intangible Liabilities:
Below market leases $ 89,389  $ 99,133 
Accumulated amortization (31,664) (29,187)
Lease intangible liabilities, net $ 57,725  $ 69,946 
The following is a summary of real estate intangible amortization income (expense) for the years ended December 31, 2020, 2019 and 2018 (in thousands): 
Year Ended December 31,
2020 2019 2018
Increase (decrease) to rental income related to above/below market leases, net    $ 849  $ 508  $ (7,701)
Depreciation and amortization related to tenant origination and absorption costs and tenant relationship (10,620) (17,674) (16,118)
The remaining unamortized balance for these outstanding intangible assets and liabilities as of December 31, 2020 will be amortized for the years ending December 31 as follows (dollars in thousands):
Lease Intangible
Assets
  Lease Intangible
Liabilities
2021 $ 10,277  $ 8,012 
2022 9,936  7,269 
2023 8,895  7,269 
2024 8,480  7,168 
2025 8,012  6,228 
Thereafter 37,196  21,779 
$ 82,796  $ 57,725 
  
Weighted-average remaining amortization period 10.3 years 8.5 years

F-25


7.LOANS RECEIVABLE AND OTHER INVESTMENTS
    As of December 31, 2020 and 2019, the Company’s loans receivable and other investments consisted of the following (dollars in thousands):
December 31, 2020
Investment Quantity
as of
December 31, 2020
Property Type
Principal Balance as of December 31, 2020 (1)
Book Value
as of
December 31, 2020
Book Value
as of
December 31, 2019
Weighted Average Contractual Interest Rate / Rate of Return Weighted Average Annualized Effective Interest Rate / Rate of Return Maturity Date
as of
December 31, 2020
Loans Receivable:
Mortgage Specialty Hospital $ 19,000  $ 19,000  $ 19,000  10.0  % 10.0  % 01/31/27
Construction Senior Housing 3,343  3,352  2,487  8.0  % 7.8  % 09/30/22
Other 16  Multiple 42,977  39,005  42,147  6.8  % 6.9  % 03/01/21- 08/31/28
18  65,320  61,357  63,634  7.8  % 7.9  %
Allowance for loan losses —  (2,458) (564)
$ 65,320  $ 58,899  $ 63,070 
Other Investments:
Preferred Equity Skilled Nursing / Senior Housing 43,724  43,940  44,304  11.3  % 11.3  % N/A
Total 24  $ 109,044  $ 102,839  $ 107,374  9.2  % 9.3  %
(1)    Principal balance includes amounts funded and accrued but unpaid interest / preferred return and excludes capitalizable fees.
As of December 31, 2020 and 2019, the Company had four loans receivable investments, with an aggregate principal balance of $2.1 million and $27.7 million, respectively, that were considered to have deteriorated credit quality. As of December 31, 2020 and 2019, the book value of the outstanding loans with deteriorated credit quality was $0.5 million and $4.2 million, respectively.
The following table presents changes in the accretable yield for the years ended December 31, 2020 and 2019 (in thousands):
Year Ended December 31,
2020 2019 2018
Accretable yield, beginning of period $ 39  $ 449  $ 2,483 
Accretion recognized in earnings (27) (377) (2,761)
Reduction due to payoff —  (33) — 
Net reclassification from nonaccretable difference —  —  727 
Accretable yield, end of period $ 12  $ 39  $ 449 
During the year ended December 31, 2020, the Company increased its allowance for loan losses by $1.9 million.
As of December 31, 2020, the Company had a $2.5 million allowance for loan losses. As of December 31, 2020, two loans receivable investments with no book value were on nonaccrual status. As of December 31, 2020, the Company did not consider any preferred equity investments to be impaired, and no preferred equity investments were on nonaccrual status.
During the year ended December 31, 2019, the Company recorded a $1.2 million provision for specific loan losses and increased its portfolio-based loan loss reserve by $4,000.
As of December 31, 2019, the Company had no asset-specific loan loss reserve and a $0.6 million portfolio-based loan loss reserve. As of December 31, 2019, the Company did not consider any loans receivable investments to be impaired. As of December 31, 2019, two loans receivable investments with no book value were on nonaccrual status. As of December 31, 2019, the Company did not consider any preferred equity investments to be impaired, and no preferred equity investments were on nonaccrual status.

F-26


8.DEBT
Secured Indebtedness
The Company’s secured debt consists of the following (dollars in thousands):
Interest Rate Type
Principal Balance as of
December 31, 2020
(1)
Principal Balance as of
December 31, 2019
(1)
Weighted Average Interest Rate at
December 31, 2020
(2)
Maturity Date
Fixed Rate $ 80,199  $ 114,777  3.39  % December 2021 - 
August 2051
(1)    Principal balance does not include deferred financing costs, net of $1.1 million and $1.7 million as of December 31, 2020 and 2019, respectively.
(2)    Weighted average interest rate includes private mortgage insurance.
During the year ended December 31, 2020, the Company sold three facilities that secured an aggregate $31.8 million of debt which was assumed by the buyers of the facilities and recognized a $0.5 million loss on extinguishment of debt related to write-offs of deferred financing costs in connection with the sales.
During the year ended December 31, 2018, the Company (i) prepaid a $98.5 million variable rate secured term loan and recognized a $2.0 million loss on extinguishment of debt related to prepayment penalty fees associated with the early repayment of the loan and (ii) repaid $37.6 million of fixed rate debt secured by facilities sold during the year ended December 31, 2018 and recognized a $0.9 million loss on extinguishment of debt related to write-offs of deferred financing costs in connection with this repayment.
Senior Unsecured Notes
The Company’s senior unsecured notes consist of the following (dollars in thousands):
Principal Balance as of December 31,
Title Maturity Date
2020 (1)
2019 (1)
4.80% senior unsecured notes due 2024 (“2024 Notes”)
June 1, 2024 $ 300,000  $ 300,000 
5.125% senior unsecured notes due 2026 (“2026 Notes”)
August 15, 2026 500,000  500,000 
5.38% senior unsecured notes due 2027 (“2027 Notes”)
May 17, 2027 100,000  100,000 
3.90% senior unsecured notes due 2029 (“2029 Notes”)
October 15, 2029 350,000  350,000 
$ 1,250,000  $ 1,250,000 
(1)    Principal balance does not include premium, net of $6.4 million and deferred financing costs, net of $8.0 million as of December 31, 2020 and does not include premium, net of $7.6 million and deferred financing costs, net of $8.8 million as of December 31, 2019.
5.5% Notes Due 2021. On January 23, 2014, the Operating Partnership and Sabra Capital Corporation, wholly owned subsidiaries of the Company (the “Issuers”), issued $350.0 million aggregate principal amount of 5.5% senior unsecured notes due 2021 (the “Original 2021 Notes”), and on October 10, 2014, they issued $150.0 million aggregate principal amount of 5.5% senior unsecured notes due 2021, which were treated as a single class with, and had the same terms as, the Original 2021 Notes (the additional notes and the Original 2021 Notes, together, the “2021 Notes”). The 2021 Notes accrued interest at a rate of 5.5% per annum payable semiannually on February 1 and August 1 of each year.
On June 29, 2019, the Issuers redeemed all $500.0 million aggregate principal amount outstanding of the 2021 Notes at a cash redemption price of 101.375% of the principal amount being redeemed, plus accrued and unpaid interest. The redemption resulted in $10.1 million of redemption related costs and write-offs for the year ended December 31, 2019, consisting of $6.9 million in payments made to noteholders and legal fees for early redemption and $3.2 million of write-offs associated with unamortized deferred financing and premium costs. These amounts are included in loss on extinguishment of debt on the accompanying consolidated statements of income.
5.375% Notes Due 2023. On May 23, 2013, the Issuers issued $200.0 million aggregate principal amount of 5.375% senior unsecured notes due 2023 (the “2023 Notes”). The 2023 Notes accrued interest at a rate of 5.375% per annum payable semiannually on June 1 and December 1 of each year.
On October 27, 2019, the Issuers redeemed all $200.0 million aggregate principal amount outstanding of the 2023 Notes at a cash redemption price of 101.792% of the principal amount being redeemed, plus accrued and unpaid interest. The redemption resulted in $5.6 million of redemption related costs and write-offs for the year ended December 31, 2019, consisting of $3.6 million in payments made to noteholders and legal fees for early redemption and $2.0 million of write-offs associated
F-27


with unamortized deferred financing costs. These amounts are included in loss on extinguishment of debt on the accompanying consolidated statements of income.
4.80% Notes Due 2024. On May 29, 2019, the Issuers completed an underwritten public offering of $300.0 million aggregate principal amount of 4.80% senior unsecured notes due 2024 (the “2024 Notes”). The net proceeds were $295.3 million after deducting underwriting discounts and other offering expenses. The net proceeds, together with borrowings under the Revolving Credit Facility, were used to redeem the 2021 Notes as discussed above. The 2024 Notes accrue interest at a rate of 4.80% per annum payable semiannually on June 1 and December 1 of each year. Upon redemption of the 2023 Notes as discussed above, Sabra Capital Corporation’s obligations as a co-issuer under the 2024 Notes were automatically released and discharged.
The 2024 Notes are redeemable at the option of the Operating Partnership, in whole or in part at any time and from time to time, prior to May 1, 2024, at a price equal to 100% of the principal amount, together with any accrued and unpaid interest to, but not including, the redemption date, plus a make-whole premium. The Operating Partnership may also redeem the 2024 Notes on or after May 1, 2024, at a price equal to 100% of the principal amount, together with any accrued and unpaid interest to, but not including, the redemption date. Assuming the 2024 Notes are not redeemed, the 2024 Notes mature on June 1, 2024.
5.125% Notes Due 2026. In connection with the Company’s merger with Care Capital Properties (“CCP”), on August 17, 2017, the Operating Partnership assumed $500.0 million aggregate principal amount of 5.125% senior unsecured notes due 2026 (the “2026 Notes”) issued by Care Capital Properties, LP in July 2016. The 2026 Notes accrue interest at a rate of 5.125% per annum payable semiannually on February 15 and August 15 of each year.
The Operating Partnership may, at its option, redeem the 2026 Notes at any time in whole or from time to time in part prior to their stated maturity. The redemption price for 2026 Notes that are redeemed will be equal to (i) 100% of their principal amount, together with accrued and unpaid interest thereon, if any, to (but excluding) the date of redemption, plus, (ii) if redeemed prior to May 15, 2026, a make-whole premium. Assuming the 2026 Notes are not redeemed, the 2026 Notes mature on August 15, 2026.
5.38% Notes Due 2027. In connection with the Company’s merger with CCP, on August 17, 2017, the Operating Partnership assumed $100.0 million aggregate principal amount of unregistered 5.38% senior unsecured notes due 2027 (the “2027 Notes”) issued by Care Capital Properties, LP in May 2016. The 2027 Notes accrue interest at a rate of 5.38% per annum payable semiannually on May 17 and November 17 of each year.
The Operating Partnership may prepay the 2027 Notes, in whole at any time or in part from time to time, at 100% of the principal amount to be prepaid plus a make-whole premium. Assuming the 2027 Notes are not redeemed, the 2027 Notes mature on May 17, 2027.
3.90% Notes Due 2029. On October 7, 2019, the Issuers completed an underwritten public offering of $350.0 million aggregate principal amount of 3.90% senior unsecured notes due 2029 (the “2029 Notes”). The net proceeds were $340.5 million after deducting underwriting discounts and other offering expenses. A portion of the net proceeds was used to redeem all of the 2023 Notes as discussed above, and the remaining net proceeds were used to repay borrowings outstanding on the Revolving Credit Facility. The 2029 Notes accrue interest at a rate of 3.90% per annum payable semiannually on April 15 and October 15 of each year. Upon redemption of the 2023 Notes as discussed above, Sabra Capital Corporation’s obligations as a co-issuer under the 2029 Notes were automatically released and discharged.
The 2029 Notes are redeemable at the option of the Operating Partnership, in whole or in part at any time and from time to time, prior to July 15, 2029, at a price equal to 100% of the principal amount, together with any accrued and unpaid interest to, but not including, the redemption date, plus a make-whole premium. The Operating Partnership may also redeem the 2029 Notes on or after July 15, 2029, at a price equal to 100% of the principal amount, together with any accrued and unpaid interest to, but not including, the redemption date. Assuming the 2029 Notes are not redeemed, the 2029 Notes mature on October 15, 2029.
The obligations under the 2024 Notes and 2027 Notes are fully and unconditionally guaranteed, jointly and severally, on an unsecured basis, by Sabra and one of its non-operating subsidiaries, subject to release under certain customary circumstances. The obligations under the 2026 Notes and 2029 Notes are fully and unconditionally guaranteed, on an unsecured basis, by Sabra; provided, however, that such guarantee is subject to release under certain customary circumstances.
The indenture governing the 2024 Notes contains restrictive covenants that, among other things, restrict the ability of Sabra, the Issuers and their restricted subsidiary to: (i) incur or guarantee additional indebtedness; (ii) incur or guarantee secured indebtedness; and (iii) merge or consolidate or sell all or substantially all of their assets. The indenture governing the 2024 Notes also provides for customary events of default, including, but not limited to, the failure to make payments of interest
F-28


or premium, if any, on, or principal of, the 2024 Notes, the failure to comply with certain covenants and agreements specified in the indenture for a period of time after notice has been provided, the acceleration of other indebtedness resulting from the failure to pay principal on such other indebtedness prior to its maturity, and certain events of insolvency. If any event of default occurs, the principal of, premium, if any, and accrued interest on all the then-outstanding 2024 Notes may become due and payable immediately. The indenture governing the 2024 Notes requires Sabra, the Issuers and their restricted subsidiary to maintain Total Unencumbered Assets (as defined in the indentures) of at least 150% of the Company’s unsecured indebtedness.
The indenture governing the 2026 Notes contains certain covenants that, among other things, limits the ability of Sabra, the Issuers and their subsidiaries to: (i) consummate a merger, consolidate or sell all or substantially all of our consolidated assets and (ii) incur secured or unsecured indebtedness. In addition, Sabra, the Operating Partnership and their subsidiaries are required to maintain at all times consolidated unencumbered total asset value in an amount not less than 150% of the aggregate outstanding principal amount of the Company’s consolidated unsecured debt.
The agreement governing the 2027 Notes provides for customary events of default, including, but not limited to, the failure to make payments of interest or premium, if any, on, or principal of, the 2027 Notes, the failure to comply with certain covenants and agreements specified in the agreement governing the 2027 Notes for a period of time after notice has been provided, the acceleration of other indebtedness resulting from the failure to pay principal on such other indebtedness prior to its maturity, and certain events of insolvency. In addition, certain change of control events constitute an event of default under the agreement governing the 2027 Notes. If any event of default occurs, the principal of, premium, if any, and accrued interest on all the then-outstanding 2027 Notes may become due and payable immediately.
The indenture governing the 2029 Notes contains restrictive covenants that, among other things, restrict the ability of Sabra, the Issuers and their subsidiaries to: (i) incur or guarantee additional indebtedness; (ii) incur or guarantee secured indebtedness; and (iii) merge or consolidate or sell all or substantially all of their assets. The indenture governing the 2029 Notes also provides for customary events of default, including, but not limited to, the failure to make payments of interest or premium, if any, on, or principal of, the 2029 Notes, the failure to comply with certain covenants and agreements specified in the indenture for a period of time after notice has been provided, the acceleration of other indebtedness resulting from the failure to pay principal on such other indebtedness prior to its maturity, and certain events of insolvency. If any event of default occurs, the principal of, premium, if any, and accrued interest on all the then-outstanding 2029 Notes may become due and payable immediately. The indenture governing the 2029 Notes requires Sabra, the Issuers and their subsidiaries to maintain Total Unencumbered Assets (as defined in the indentures) of at least 150% of the Company’s unsecured indebtedness.
The Company was in compliance with all applicable financial covenants under the indentures and agreements (the “Senior Notes Indentures”) governing the 2024 Notes, 2026 Notes, 2027 Notes and 2029 Notes (collectively, the “Senior Notes”) outstanding as of December 31, 2020.
Credit Agreement
On September 9, 2019, the Operating Partnership and Sabra Canadian Holdings, LLC (together, the “Borrowers”), Sabra and the other parties thereto entered into a fifth amended and restated unsecured credit agreement (the “Credit Agreement”).
The Credit Agreement includes a $1.0 billion revolving credit facility (the “Revolving Credit Facility”), $955.0 million in U.S. dollar term loans and a CAD $125.0 million Canadian dollar term loan (collectively, the “Term Loans”). Further, up to $175.0 million of the Revolving Credit Facility may be used for borrowings in certain foreign currencies. The Credit Agreement also contains an accordion feature that can increase the total available borrowings to $2.75 billion, subject to terms and conditions.
The Revolving Credit Facility has a maturity date of September 9, 2023, and includes two six-month extension options. $105.0 million of the U.S. dollar Term Loans has a maturity date of September 9, 2022, $350.0 million of the U.S. dollar Term Loans has a maturity date of September 9, 2023, and the other Term Loans have a maturity date of September 9, 2024.
As of December 31, 2020, there were no amounts outstanding under the Revolving Credit Facility and $1.0 billion available for borrowing.
Borrowings under the Revolving Credit Facility bear interest on the outstanding principal amount at a rate equal to a ratings-based applicable interest margin plus, at the Operating Partnership’s option, either (a) LIBOR or (b) a base rate determined as the greater of (i) the federal funds rate plus 0.5%, (ii) the prime rate, and (iii) one-month LIBOR plus 1.0% (the “Base Rate”). The ratings-based applicable interest margin for borrowings will vary based on the Debt Ratings, as defined in the Credit Agreement, and will range from 0.775% to 1.45% per annum for LIBOR based borrowings and 0.00% to 0.45% per annum for borrowings at the Base Rate. As of December 31, 2020, the interest rate on the Revolving Credit Facility was 1.24%.
F-29


In addition, the Operating Partnership pays a facility fee ranging between 0.125% and 0.300% per annum based on the aggregate amount of commitments under the Revolving Credit Facility regardless of amounts outstanding thereunder.
The U.S. dollar Term Loans bear interest on the outstanding principal amount at a rate equal to a ratings-based applicable interest margin plus, at the Operating Partnership’s option, either (a) LIBOR or (b) the Base Rate. The ratings-based applicable interest margin for borrowings will vary based on the Debt Ratings and will range from 0.85% to 1.65% per annum for LIBOR based borrowings and 0.00% to 0.65% per annum for borrowings at the Base Rate. As of December 31, 2020, the interest rate on the U.S. dollar Term Loans was 1.39%. The Canadian dollar Term Loan bears interest on the outstanding principal amount at a rate equal to the Canadian Dollar Offered Rate (“CDOR”) plus an interest margin that ranges from 0.85% to 1.65% depending on the Debt Ratings. As of December 31, 2020, the interest rate on the Canadian dollar Term Loan was 1.71%.
The Company has interest rate swaps that fix the LIBOR portion of the interest rate for $845.0 million of LIBOR-based borrowings under its U.S. dollar Term Loans at a weighted average rate of 1.24% and an interest rate swap that fixes the CDOR portion of the interest rate for CAD $125.0 million of CDOR-based borrowings under its Canadian dollar Term Loan at a rate of 0.93%. In addition, CAD $125.0 million of the Canadian dollar Term Loan is designated as a net investment hedge. See Note 9, “Derivative and Hedging Instruments,” for further information.
The obligations of the Borrowers under the Credit Agreement are fully and unconditionally guaranteed, jointly and severally, on an unsecured basis, by Sabra and one of its non-operating subsidiaries, subject to release under certain customary circumstances.
The Credit Agreement contains customary covenants that include restrictions or limitations on the ability to pay dividends, incur additional indebtedness, engage in non-healthcare related business activities, enter into transactions with affiliates and sell or otherwise transfer certain assets as well as customary events of default. The Credit Agreement also requires Sabra, through the Operating Partnership, to comply with specified financial covenants, which include a maximum total leverage ratio, a minimum secured debt leverage ratio, a minimum fixed charge coverage ratio, a maximum unsecured leverage ratio, a minimum tangible net worth requirement and a minimum unsecured interest coverage ratio. As of December 31, 2020, the Company was in compliance with all applicable financial covenants under the Credit Agreement.
Interest Expense
During the years ended December 31, 2020, 2019 and 2018, the Company incurred interest expense of $100.4 million, $126.6 million and $147.1 million, respectively. Interest expense includes non-cash interest expense of $8.4 million, $10.1 million and $10.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020 and 2019, the Company had $16.1 million and $16.7 million, respectively, of accrued interest included in accounts payable and accrued liabilities on the accompanying consolidated balance sheets.
Maturities
The following is a schedule of maturities for the Company’s outstanding debt as of December 31, 2020 (in thousands):
Secured
Indebtedness
Term Loans Senior Notes Total
2021 $ 18,419  $ —  $ —  $ 18,419 
2022 2,412  105,000  —  107,412 
2023 2,478  350,000  —  352,478 
2024 2,545  598,100  300,000  900,645 
2025 2,615  —  —  2,615 
Thereafter 51,730  —  950,000  1,001,730 
Total Debt 80,199  1,053,100  1,250,000  2,383,299 
Premium, net —  —  6,442  6,442 
Deferred financing costs, net (1,134) (8,184) (8,049) (17,367)
Total Debt, Net $ 79,065  $ 1,044,916  $ 1,248,393  $ 2,372,374 

9.DERIVATIVE AND HEDGING INSTRUMENTS
The Company is exposed to various market risks, including the potential loss arising from adverse changes in interest rates and foreign exchange rates. The Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are
F-30


determined by interest rates and foreign exchange rates. The Company’s derivative financial instruments are used to manage differences in the amount of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings.
Certain of the Company’s foreign operations expose the Company to fluctuations of foreign interest rates and exchange rates. These fluctuations may impact the value in the Company’s functional currency, the U.S. dollar, of the Company’s investment in foreign operations, the cash receipts and payments related to these foreign operations and payments of interest and principal under Canadian dollar denominated debt. The Company enters into derivative financial instruments to protect the value of its foreign investments and fix a portion of the interest payments for certain debt obligations. The Company does not enter into derivatives for speculative purposes.
Cash Flow Hedges
The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps and collars as part of its interest rate risk management strategy. In May 2019, the Company terminated three forward starting interest rate swaps, resulting in a payment to counterparties totaling $12.6 million. The balance of the loss in other comprehensive income will be reclassified to earnings through 2029. As of December 31, 2020, approximately $13.0 million of losses, which are included in accumulated other comprehensive income, are expected to be reclassified into earnings in the next 12 months.
Net Investment Hedges
The Company is exposed to fluctuations in foreign exchange rates on investments it holds in Canada. The Company uses cross currency interest rate swaps to hedge its exposure to changes in foreign exchange rates on these foreign investments.
The following presents the notional amount of derivative instruments as of the dates indicated (in thousands):  
December 31, 2020 December 31, 2019
Derivatives designated as cash flow hedges:
Denominated in U.S. Dollars (1)
$ 1,340,000  $ 1,490,000 
Denominated in Canadian Dollars (2)
$ 250,000  $ 125,000 
Derivatives designated as net investment hedges:
Denominated in Canadian Dollars $ 52,778  $ 54,489 
Financial instrument designated as net investment hedge:
Denominated in Canadian Dollars $ 125,000  $ 125,000 
Derivatives not designated as net investment hedges:
Denominated in Canadian Dollars $ 3,522  $ 1,811 
(1)    Balance includes swaps with an aggregate notional amount of $400.0 million, which accretes to $600.0 million in January 2023, and two forward starting interest rate swaps and one forward starting interest rate collar with an effective date of January 2021. The forward starting interest rate swaps and forward starting interest rate collar have an aggregate notional amount of $245.0 million. Balance as of December 31, 2020 also includes six forward starting interest rate swaps with an effective date of May 2024 and an aggregate notional amount of $250.0 million.
(2)    Balance as of December 31, 2020 includes two forward starting interest rate swaps with an effective date of January 2021 and an aggregate notional amount of CAD $125.0 million.
F-31


Derivative and Financial Instruments Designated as Hedging Instruments
The following is a summary of the derivative and financial instruments designated as hedging instruments held by the Company at December 31, 2020 and 2019 (dollars in thousands):    
Count as of December 31, 2020 Fair Value Maturity Dates
December 31,
Type Designation 2020 2019 Balance Sheet Location
Assets:
Interest rate swaps Cash flow —  $ —  $ 4,239  N/A Accounts receivable, prepaid expenses and other assets, net
Forward starting interest rate swaps Cash flow 10,652  —  2034 Accounts receivable, prepaid expenses and other assets, net
Cross currency interest rate swaps Net investment 2,150  3,238  2025 Accounts receivable, prepaid expenses and other assets, net
$ 12,802  $ 7,477 
Liabilities:
Interest rate swaps Cash flow 10  $ 23,849  $ —  2021-2024 Accounts payable and accrued liabilities
Interest rate collar Cash flow 1,626  —  2024 Accounts payable and accrued liabilities
Forward starting interest rate swaps Cash flow 10,723  494  2024 Accounts payable and accrued liabilities
Forward starting interest rate collar Cash flow 820  132  2024 Accounts payable and accrued liabilities
CAD term loan Net investment 98,100  96,025  2024 Term loans, net
$ 135,118  $ 96,651 
The following presents the effect of the Company’s derivative and financial instruments designated as hedging instruments on the consolidated statements of income and the consolidated statements of equity for the years ended December 31, 2020, 2019 and 2018:
(Loss) Gain Recognized in Other Comprehensive Income (Loss) Gain Reclassified from Accumulated Other Comprehensive Income Into Income Income Statement Location
For the year ended December 31,
2020 2019 2018 2020 2019 2018
Cash Flow Hedges:
Interest rate products $ (35,320) $ (19,932) $ 2,707  $ (8,072) $ 5,545  $ 3,099  Interest expense
Net Investment Hedges:
Foreign currency products (758) (772) 3,554  —  —  —  N/A
CAD term loan (2,075) (4,325) 7,888  —  —  —  N/A
$ (38,153) $ (25,029) $ 14,149  $ (8,072) $ 5,545  $ 3,099 
During the years ended December 31, 2020, 2019 and 2018, no cash flow hedges were determined to be ineffective.
Derivatives Not Designated as Hedging Instruments
As of December 31, 2020, the Company had one outstanding cross currency interest rate swap, of which a portion was not designated as a hedging instrument, in an asset position with a fair value of $0.1 million and included this amount in accounts receivable, prepaid expenses and other assets, net on the consolidated balance sheets. During the years ended December 31, 2020, 2019 and 2018, the Company recorded $0.1 million of other expense and $5,000 and $34,000 of other income, respectively, related to the portion of derivatives not designated as hedging instruments.
F-32


Offsetting Derivatives
The Company enters into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of December 31, 2020 and 2019 (in thousands):
As of December 31, 2020
Gross Amounts Not Offset in the Balance Sheet
Gross Amounts of Recognized Assets / Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Assets / Liabilities presented in the Balance Sheet Financial Instruments Cash Collateral Received Net Amount
Offsetting Assets:
Derivatives $ 12,802  $ —  $ 12,802  $ (7,420) $ —  $ 5,382 
Offsetting Liabilities:
Derivatives $ 37,018  $ —  $ 37,018  $ (7,420) $ —  $ 29,598 
As of December 31, 2019
Gross Amounts Not Offset in the Balance Sheet
Gross Amounts of Recognized Assets / Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Assets / Liabilities presented in the Balance Sheet Financial Instruments Cash Collateral Received Net Amount
Offsetting Assets:
Derivatives $ 7,477  $ —  $ 7,477  $ (544) $ —  $ 6,933 
Offsetting Liabilities:
Derivatives $ 626  $ —  $ 626  $ (544) $ —  $ 82 
Credit-risk-related Contingent Features
The Company has agreements with each of its derivative counterparties that contain a provision pursuant to which the Company could be declared in default on the derivative obligation if the Company defaults on any of its indebtedness, including a default where repayment of the indebtedness has not been accelerated by the lender. As of December 31, 2020, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $30.5 million. As of December 31, 2020, the Company has not posted any collateral related to these agreements. If the Company had breached any of these provisions at December 31, 2020, it could have been required to settle its obligations under the agreements at their termination value of $29.6 million.

10.FAIR VALUE DISCLOSURES
Financial Instruments
The fair value for certain financial instruments is derived using a combination of market quotes, pricing models and other valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments.
Financial instruments for which actively quoted prices or pricing parameters are available and whose markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments whose markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The carrying values of cash and cash equivalents, restricted cash, accounts payable, accrued liabilities and the Credit Agreement are reasonable estimates of fair value because of the short-term maturities of these instruments. Fair values for other financial instruments are derived as follows:
Loans receivable: These instruments are presented on the accompanying consolidated balance sheets at their amortized cost and not at fair value. The fair values of the loans receivable were estimated using an internal valuation model that considered the expected cash flows for the loans receivable, as well as the underlying collateral value and other credit enhancements as applicable. The Company utilized discount rates ranging from 6% to 12% with a weighted average rate of 9% in its fair value calculation. As such, the Company classifies these instruments as Level 3.
F-33


Preferred equity investments: These instruments are presented on the accompanying consolidated balance sheets at their cost and not at fair value. The fair values of the preferred equity investments were estimated using an internal valuation model that considered the expected future cash flows for the preferred equity investments, the underlying collateral value and other credit enhancements. The Company utilized discount rates ranging from 10% to 15% with a weighted average rate of 11% in its fair value calculation. As such, the Company classifies these instruments as Level 3.
Derivative instruments: The Company’s derivative instruments are presented at fair value on the accompanying consolidated balance sheets. The Company estimates the fair value of derivative instruments, including its interest rate swaps and cross currency swaps, using the assistance of a third party using inputs that are observable in the market, which include forward yield curves and other relevant information. Although the Company has determined that the majority of the inputs used to value its derivative financial instruments fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivative financial instruments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by itself and its counterparties. The Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivative financial instruments. As a result, the Company has determined that its derivative financial instruments valuations in their entirety are classified in Level 2 of the fair value hierarchy.
Senior Notes: These instruments are presented on the accompanying consolidated balance sheets at their outstanding principal balance, net of unamortized deferred financing costs and premiums/discounts and not at fair value. The fair values of the Senior Notes were determined using third-party market quotes derived from orderly trades. As such, the Company classifies these instruments as Level 2.
Secured indebtedness: These instruments are presented on the accompanying consolidated balance sheets at their outstanding principal balance, net of unamortized deferred financing costs and premiums/discounts and not at fair value. The fair values of the Company’s secured debt were estimated using a discounted cash flow analysis based on management’s estimates of current market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. The Company utilized rates ranging from 2% to 3% with a weighted average rate of 3% in its fair value calculation. As such, the Company classifies these instruments as Level 3.
The following are the face values, carrying amounts and fair values of the Company’s financial instruments as of December 31, 2020 and 2019 whose carrying amounts do not approximate their fair value (in thousands):
  December 31, 2020 December 31, 2019
 
Face
Value (1)
Carrying
Amount (2)
Fair
Value
Face
Value (1)
Carrying
Amount (2)
Fair
Value
Financial assets:
Loans receivable $ 65,320  $ 58,899  $ 60,421  $ 67,527  $ 63,070  $ 59,832 
Preferred equity investments 43,724  43,940  44,597  43,893  44,304  44,493 
Financial liabilities:
Senior Notes 1,250,000  1,248,393  1,362,678  1,250,000  1,248,773  1,328,714 
Secured indebtedness 80,199  79,065  79,326  114,777  113,070  105,510 
(1)    Face value represents amounts contractually due under the terms of the respective agreements.
(2)    Carrying amount represents the book value of financial instruments, including unamortized premiums/discounts and deferred financing costs.
The Company determined the fair value of financial instruments as of December 31, 2020 whose carrying amounts do not approximate their fair value with valuation methods utilizing the following types of inputs (in thousands):
Fair Value Measurements Using
Total Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Financial assets:
Loans receivable $ 60,421  $ —  $ —  $ 60,421 
Preferred equity investments 44,597  —  —  44,597 
Financial liabilities:
Senior Notes 1,362,678  —  1,362,678  — 
Secured indebtedness 79,326  —  —  79,326 
F-34


Disclosure of the fair value of financial instruments is based on pertinent information available to the Company at the applicable dates and requires a significant amount of judgment. Transaction volume for certain of the Company’s financial instruments remains relatively low, which has made the estimation of fair values difficult. Therefore, both the actual results and the Company’s estimate of fair value at a future date could be materially different.
Items Measured at Fair Value on a Recurring Basis
During the year ended December 31, 2020, the Company recorded the following amounts measured at fair value (in thousands):
Fair Value Measurements Using
Total Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Recurring Basis:
Financial assets:
Forward starting interest rate swaps $ 10,652  $ —  $ 10,652  $ — 
Cross currency interest rate swaps 2,150  —  2,150  — 
Financial liabilities:
Interest rate swaps 23,849  —  23,849  — 
Interest rate collar 1,626  —  1,626  — 
Forward starting interest rate swaps 10,723  —  10,723  — 
Forward starting interest rate collars 820  —  820  — 

11.EQUITY
Preferred Stock
The Company redeemed all 5,750,000 shares of its 7.125% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”) on June 1, 2018 (the “Redemption Date”) for $25.00 per share, plus accrued and unpaid dividends to, but not including, the Redemption Date, without interest, in the amount of $0.4453125 per share of Series A Preferred Stock, for a total redemption price per share of Series A Preferred Stock equal to $25.4453125. As a result of the redemption, the Company incurred a charge of $5.5 million related to the original issuance costs of the Series A Preferred Stock. The charge is presented as an additional preferred stock dividend in the Company’s consolidated statements of income for the year ended December 31, 2018.
Common Stock
On February 25, 2019, the Company established an at-the-market equity offering program (the “Prior ATM Program”) to sell shares of its common stock having an aggregate gross sales price of up to $500.0 million from time to time through a consortium of banks acting as sales agents. On December 5, 2019, the Prior ATM Program automatically terminated in accordance with its terms upon the issuance and sale of the maximum aggregate amount of the shares subject to the Prior ATM Program.
On December 11, 2019, the Company established a new ATM program (the “ATM Program”) pursuant to which shares of its common stock having an aggregate gross sales price of up to $400.0 million may be sold from time to time (i) by the Company through a consortium of banks acting as sales agents or directly to the banks acting as principals or (ii) by a consortium of banks acting as forward sellers on behalf of any forward purchasers pursuant to a forward sale agreement. The use of a forward sale agreement would allow the Company to lock in a share price on the sale of shares at the time the agreement is effective, but defer receiving the proceeds from the sale of the shares until a later date. The Company may also elect to cash settle or net share settle all or a portion of its obligations under any forward sale agreement.
During the year ended December 31, 2020, the Company sold 3.7 million shares under the ATM Program at an average price of $16.23 per share, generating gross proceeds of $60.0 million, before $0.9 million of commissions (excluding sales utilizing the forward feature of the ATM Program, as described below). During the year ended December 31, 2019, the Company sold an aggregate 26.8 million shares under the ATM Program and Prior ATM Program at an average price of $20.92 per share, generating gross proceeds of $560.0 million, before $7.7 million of commissions.
F-35


Additionally, during the year ended December 31, 2020, the Company utilized the forward feature of the ATM Program to allow for the sale of up to an aggregate sales price of $45.3 million of the Company’s common stock at an initial weighted average price of $17.44 per share, net of commissions. The forward sale agreements have a one year term during which time the Company may settle the forward sales by delivery of physical shares of common stock to the forward purchasers or, at the Company’s election, in cash or net shares. The forward sale price that the Company expects to receive upon settlement will be the initial forward price established upon the effective date, subject to adjustments for (i) the forward purchasers’ stock borrowing costs and (ii) certain fixed price reductions during the term of the agreement. During the year ended December 31, 2020, the Company settled 1.4 million shares at a weighted average net price of $17.45 per share, after commissions, resulting in net proceeds of $25.0 million. As of December 31, 2020, 1.1 million shares remained outstanding under the forward sale agreements, with an initial weighted average price of $17.44, net of commissions.
As of December 31, 2020, the Company had $234.7 million available under the ATM Program.
Other Common Stock Issuances
During the years ended December 31, 2020 and 2019, the Company issued 0.2 million and 0.1 million shares of common stock as a result of restricted stock unit vestings, respectively.
Upon any payment of shares to team members as a result of restricted stock unit vestings, the team members’ related tax withholding obligation will generally be satisfied by the Company, reducing the number of shares to be delivered by a number of shares necessary to satisfy the related applicable tax withholding obligation. During the years ended December 31, 2020, 2019 and 2018, the Company incurred $3.2 million, $1.5 million and $0.4 million, respectively, in tax withholding obligations on behalf of its team members that were satisfied through a reduction in the number of shares delivered to those participants.
Accumulated Other Comprehensive Loss
The following is a summary of the Company’s accumulated other comprehensive loss (in thousands):
Year Ended December 31,
2020 2019
Foreign currency translation loss $ (1,831) $ (1,516)
Unrealized loss on cash flow hedges (38,080) (10,872)
Total accumulated other comprehensive loss $ (39,911) $ (12,388)

12.STOCK-BASED COMPENSATION
All stock-based awards are subject to the terms of the 2009 Performance Incentive Plan, which was assumed by the Company effective as of November 15, 2010 in connection with the Company’s separation from Sun and was most recently amended and restated in April 2017. The 2009 Performance Incentive Plan provides for the granting of stock-based compensation, including stock options, time-based stock units, funds from operations-based stock units (“FFO Units”), relative total stockholder return-based stock units (“TSR Units”) and performance-based restricted stock units to directors, officers and other team members in connection with their employment with or services provided to the Company.
Restricted Stock Units and Performance-Based Restricted Stock Units
Under the 2009 Performance Incentive Plan, restricted stock units and performance-based restricted stock units generally have a contractual life or vest over a three- to five-year period. The vesting of certain restricted stock units may accelerate, as defined in the grant, upon retirement, a change in control and other events. When vested (and subject to any applicable deferral or holdback period), each performance-based restricted stock unit is convertible into one share of common stock, subject to any deferrals in issuance pursuant to the grant. The restricted stock units are valued on the grant date based on the market price of the Company’s common stock on that date. Generally, the Company recognizes the fair value of the awards over the applicable vesting period as compensation expense. In addition, since the shares to be issued may vary based on the performance of the Company, the Company must make assumptions regarding the projected performance criteria and the shares that will ultimately be issued. The amount of FFO Units that will ultimately vest is dependent on the amount by which the Company’s funds from operations as adjusted (“FFO”) differs from a target FFO amount for a period specified in each grant and will range from 0% to 200% of the FFO Units initially granted. Similarly, the amount of TSR Units that will ultimately vest is dependent on the amount by which the total shareholder return (“TSR”) of the Company’s common stock differs from a predefined peer group for a period specified in each grant and will range from 0% to 200% of the TSR Units initially granted. Upon any payment of shares as a result of restricted stock unit vestings, the related tax withholding obligation will generally be satisfied by the Company, reducing the number of shares to be delivered by a number of shares necessary to satisfy the related applicable tax
F-36


withholding obligation. The value of the shares withheld is dependent on the closing price of the Company’s common stock on the date the relevant transaction occurs.
The following table summarizes additional information concerning restricted stock units at December 31, 2020:
Restricted Stock Units Weighted Average Grant Date Fair Value Per Unit
Unvested as of December 31, 2019 1,737,862  $ 18.35 
Granted 623,523  17.13 
Vested (540,751) 17.84 
Dividends reinvested 157,905  18.44 
Cancelled/forfeited (163,124) 20.70 
Unvested as of December 31, 2020 1,815,415  $ 17.88 
As of December 31, 2020, the weighted average remaining vesting period of restricted stock units was 2.6 years. The weighted average fair value per share at the date of grant for restricted stock units for the years ended December 31, 2020, 2019 and 2018 was $17.13, $20.59 and $16.02, respectively. The total fair value of units vested during the years ended December 31, 2020, 2019 and 2018 was $10.7 million, $7.9 million and $3.6 million, respectively.
The fair value of the TSR Units is estimated on the date of grant using a Monte Carlo valuation model that uses the assumptions noted in the table below. The risk-free rate is based on the U.S. Treasury yield curve in effect at the grant date for the expected performance period. Expected volatility is based on historical volatility for the most recent 3-year period ending on the grant date for the Company and the selected peer companies, and is calculated on a daily basis. The following are the key assumptions used in this valuation:
2020 2019 2018
Risk free interest rate
0.17% - 1.63%
1.57% - 2.54%
2.36% - 2.59%
Expected stock price volatility
23.80% - 53.17%
23.80% - 28.57%
28.57% - 30.02%
Expected service period
2.7 - 3.0 years
2.4 - 3.0 years
2.5 - 3.0 years
Expected dividend yield (assuming full reinvestment) —  % —  % —  %
During the years ended December 31, 2020, 2019 and 2018, the Company recognized $7.9 million, $9.8 million and $7.6 million, respectively, of stock-based compensation expense included in general and administrative expense in the consolidated statements of income. As of December 31, 2020, there was $20.8 million of total unrecognized stock-based compensation expense related to unvested awards, which is expected to be recognized over a weighted average period of 2.6 years.
Employee Benefit Plan
The Company maintains a 401(k) plan that allows for eligible participants to defer compensation, subject to certain limitations imposed by the Internal Revenue Code of 1986, as amended (the “Code”). The Company provides a discretionary matching contribution of up to 4% of each participant’s eligible compensation. During each of the years ended December 31, 2020, 2019 and 2018, the Company’s matching contributions were approximately $0.2 million.

13.INCOME TAXES
The Company elected to be treated as a REIT with the filing of its U.S. federal income tax return for the taxable year beginning January 1, 2011. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement to distribute at least 90% of its taxable ordinary income. In addition, the Company is required to meet certain asset and income tests. As a REIT, the Company generally will not be subject to corporate level federal income tax on taxable income that it distributes to its stockholders. The Company also elected to treat certain of its consolidated subsidiaries as taxable REIT subsidiaries, which are subject to federal, state and foreign income taxes.
As a result of acquisitions in Canada during 2015, the Company is subject to income taxes under the laws of Canada. The Company recorded a $0.6 million, $0.5 million and $0.6 million income tax benefit during the years ended December 31, 2020, 2019 and 2018, respectively, with respect to its Canadian operations. Due to uncertainty over the Company’s ability to utilize this income tax benefit in future periods, the Company recorded a valuation allowance of $0.8 million, $0.5 million and $0.7 million against the deferred tax benefit during the years ended December 31, 2020, 2019 and 2018, respectively.
F-37


The Company classifies interest and penalties from significant uncertain tax positions as interest expense and operating expenses, respectively, in its consolidated financial statements. During the years ended December 31, 2020, 2019 and 2018, the Company did not incur any such interest or penalties. With certain exceptions, the tax years 2016 and thereafter remain open to examination by the major taxing jurisdictions with which the Company files tax returns.

14.EARNINGS PER COMMON SHARE
The following table illustrates the computation of basic and diluted earnings per share (in thousands, except share and per share amounts):
Year Ended December 31,
2020 2019 2018
Numerator
Net income attributable to common stockholders $ 138,417  $ 68,996  $ 269,314 
   
Denominator
Basic weighted average common shares and common equivalents 206,223,503  187,172,210  178,305,738 
Dilutive stock options and restricted stock units 1,029,327  954,882  416,006 
Diluted weighted average common shares 207,252,830  188,127,092  178,721,744 
 
Net income attributable to common stockholders, per:
Basic common share $ 0.67  $ 0.37  $ 1.51 
   
Diluted common share $ 0.67  $ 0.37  $ 1.51 
During the years ended December 31, 2020, 2019 and 2018, approximately 67,000, 1,000 and 121,000 restricted stock units, respectively, were not included in computing diluted earnings per share because they were considered anti-dilutive. No stock options were outstanding as of December 31, 2020 and 2019, and no stock options were considered anti-dilutive during the year ended December 31, 2018.

15.COMMITMENTS AND CONTINGENCIES
Environmental
As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. The Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities. As of December 31, 2020, the Company does not expect that compliance with existing environmental laws will have a material adverse effect on the Company’s financial condition and results of operations.
Legal Matters
From time to time, the Company is party to legal proceedings that arise in the ordinary course of its business. Management is not aware of any legal proceedings where the likelihood of a loss contingency is reasonably possible and the amount or range of reasonably possible losses is material to the Company’s results of operations, financial condition or cash flows.

16.SUBSEQUENT EVENTS
The Company evaluates subsequent events up until the date the consolidated financial statements are issued.
Dividend Declaration
On February 2, 2021, the Company’s board of directors declared a quarterly cash dividend of $0.30 per share of common stock. The dividend will be paid on February 26, 2021 to stockholders of record as of the close of business on February 12, 2021.
F-38


SCHEDULE II
VALUATION AND QUALIFYING ACCOUNTS
For the Years Ended December 31, 2020, 2019 and 2018
(dollars in thousands)


  Balance at Beginning of Year   Charged to Earnings   Recoveries Uncollectible Accounts Written-off   Balance at End
of Year
Year ended December 31, 2020                  
Allowance for loan losses (1)
$ 542  $ 1,916  $ —  $ —  $ 2,458 
Allowance for credit losses - sales-type lease (1)
189  (61) —  —  128 
    $ 731    $ 1,855    $ —  $ —    $ 2,586 
                 
Year ended December 31, 2019                
Allowance for doubtful accounts (2)
  $ 3,706    $ —  $ —  $ (3,706) $ — 
Straight-line rent receivable allowance (2)
  35,778    —  —  (35,778) — 
Allowance for loan losses 1,258  1,238  —  (1,932) 564 
    $ 40,742    $ 1,238    $ —  $ (41,416)   $ 564 
Year ended December 31, 2018                
Allowance for doubtful accounts   $ 5,520    $ 986  $ (2,718) $ (82) $ 3,706 
Straight-line rent receivable allowance 12,355  39,646  —  (16,223) 35,778 
Allowance for loan losses 97  1,161  —  —  1,258 
$ 17,972  $ 41,793    $ (2,718) $ (16,305)   $ 40,742 
(1)    In conjunction with the adoption of Topic 326 on January 1, 2020, the Company recognized the cumulative effect through an adjustment to equity to increase (decrease) cumulative distributions in excess of net income by ($22,000) and $189,000 for loan loss reserves and allowance for credit losses - sales-type lease, respectively. These amounts are included in the balances at beginning of year for 2020 but are excluded from the balances at end of year for 2019.
(2)    Balances written-off in connection with the adoption of Topic 842 on January 1, 2019.

F-39


SCHEDULE III
REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION
As of December 31, 2020
(dollars in thousands)
Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at which Carried at Close of Period Life on Which Depreciation in Latest Income Statement is Computed
Description   Location  Ownership Percentage
Encum- brances(1)
Land 
Building and Improve- ments(2)(3)
Total 
Land 
Building and Improve- ments(2)(3)
Total  Accumulated Depreciation and Amortization Original Date of Construction/ Renovation 
Date Acquired
Skilled Nursing/Transitional Care Facilities                        
Forest Hills (SNF) Broken Arrow, OK 100%
(4)
$ 1,653  $ 11,259  $ 12,912  $ —     $ 1,653  $ 9,409  $ 11,062  $ (3,764) 1994/2008, 2009/2010, 2015 11/15/10 40
Seminole Estates Seminole, OK 100% —  655  3,527  4,182  —     655  3,134  3,789  (1,197) 1987/2020 11/15/10 32
Bedford Hills Bedford, NH 100% 5,595  1,911  12,245  14,156  —     1,911  10,687  12,598  (4,434) 1992/2010, 2019 11/15/10 36
The Elms Care Milford, NH 100% —  312  1,679  1,991  —     312  1,289  1,601  (918) 1890/2005 11/15/10 20
Lake Drive Henryetta, OK 100% —  160  549  709  —     160  40  200  (34) 1968 11/15/10 10
Mineral Springs North Conway, NH 100% 11,334  417  5,352  5,769  —     417  4,580  4,997  (1,890) 1988/2009 11/15/10 43
Wolfeboro Wolfeboro, NH 100% 9,547  454  4,531  4,985  —     454  3,747  4,201  (1,397) 1984/1986, 1987, 2009 11/15/10 41
Broadmeadow Healthcare Middletown, DE 100% —  1,650  21,730  23,380  —     1,650  21,730  23,380  (5,905) 2005 08/01/11 40
Capitol Healthcare Dover, DE 100% —  4,940  15,500  20,440  —     4,940  15,500  20,440  (4,405) 1996/2016 08/01/11 40
Pike Creek Healthcare Wilmington, DE 100% —  2,460  25,240  27,700  —     2,460  25,240  27,700  (6,934) 2009 08/01/11 40
Renaissance Healthcare Millsboro, DE 100% —  1,640  22,620  24,260  —     1,640  22,620  24,260  (6,336) 2008 08/01/11 40
Clara Burke Plymouth Meeting, PA 100% —  2,527  12,453  14,980  179     2,527  12,632  15,159  (3,470) 1927/1990, 2007/2016 03/30/12 40
Warrington Warrington, PA 100% —  2,617  11,662  14,279  106     2,617  11,768  14,385  (2,959) 1958/2009/
2016
03/30/12 40
Ridgecrest Duffield, VA 100% —  509  5,018  5,527  1,333     509  6,351  6,860  (1,975) 1981/2013 05/10/12 40
Arbrook Plaza Arlington, TX 100% —  3,783  14,219  18,002  —     3,783  14,219  18,002  (3,303) 2003/2012 11/30/12 40
Northgate Plaza Irving, TX 100% —  4,901  10,299  15,200  —     4,901  10,299  15,200  (2,465) 2003/2012, 2015 11/30/12 40
Gulf Pointe Plaza Rockport, TX 100% —  1,005  6,628  7,633  —     1,005  6,628  7,633  (1,667) 2002/2012, 2018 11/30/12 40
Gateway Senior Living Lincoln, NE 100% —  6,368  29,919  36,287  —     6,368  29,919  36,287  (5,824) 1962/1996, 2013 02/14/14 40
Legacy Fremont, NE 100% —  615  16,176  16,791  —     615  16,176  16,791  (3,454) 2008 02/14/14 40
Pointe Fremont, NE 100% —  615  2,943  3,558  —     615  2,943  3,558  (746) 1970/1979, 1983, 1994 02/14/14 40
Regency South Sioux City, NE 100% —  246  6,206  6,452  —     246  6,206  6,452  (1,614) 1962/1968, 1975, 2000, 2004 02/14/14 40
Parkmoor Village Colorado Springs, CO 100% —  430  13,703  14,133  —     430  13,703  14,133  (3,089) 1985/2017, 2018 03/05/14 40
Adams PARC Bartlesville, OK 100% —  1,332  6,904  8,236  115     1,332  7,019  8,351  (1,338) 1989/2019 10/29/14 40
PARCway Oklahoma City, OK 100% —  2,189  23,567  25,756  1,056     2,189  24,623  26,812  (4,405) 1963/1984, 2018, 2019 10/29/14 40
F-40


Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at which Carried at Close of Period Life on Which Depreciation in Latest Income Statement is Computed
Description   Location  Ownership Percentage
Encum- brances(1)
Land 
Building and Improve- ments(2)(3)
Total 
Land 
Building and Improve- ments(2)(3)
Total  Accumulated Depreciation and Amortization Original Date of Construction/ Renovation 
Date Acquired
Brookhaven Extensive Care Norman, OK 100% —  869  5,236  6,105  109     869  5,345  6,214  (1,134) 2001/2013, 2019 10/29/14 40
Cadia Healthcare of Hyattsville Hyattsville, MD 100% —  6,343  65,573  71,916  14     6,343  65,587  71,930  (10,867) 1950/1976, 2008 06/30/15 40
Cadia Healthcare of Annapolis Annapolis, MD 100% —  1,548  40,773  42,321  103     1,548  40,876  42,424  (6,314) 1964/1993, 2012 06/30/15 40
Cadia Healthcare of Wheaton Wheaton, MD 100% —  676  56,897  57,573  22     676  56,919  57,595  (8,618) 1966/1991, 2012 06/30/15 40
Cadia Healthcare of Hagerstown Hagerstown, MD 100% —  1,475  56,237  57,712  4,733     1,475  60,970  62,445  (8,200) 1950/1953, 1975, 2014, 2019, 2020 11/25/15 40
Cadia Healthcare of Spring Brook Silver Spring, MD 100% —  963  48,085  49,048     963  48,092  49,055  (5,945) 1965/2015 07/26/16 40
Andrew Residence Minneapolis, MN 100% —  2,931  6,943  9,874  565     2,931  7,462  10,393  (849) 1941/2014, 2019 08/17/17 40
Avamere Riverpark of Eugene Eugene, OR 100% —  2,205  28,700  30,905  2,252     2,205  30,952  33,157  (3,096) 1988/2016 08/17/17 40
Avamere Rehab of Lebanon Lebanon, OR 100% —  958  14,176  15,134  —     958  14,176  15,134  (1,277) 1974 08/17/17 40
Avamere Crestview of Portland Portland, OR 100% —  1,791  12,833  14,624  2,761     1,791  15,594  17,385  (1,824) 1964/2016 08/17/17 40
Avamere Rehabilitation of King City Tigard, OR 100% —  2,011  11,667  13,678  —     2,011  11,667  13,678  (1,086) 1975 08/17/17 40
Avamere Rehabilitation of Hillsboro Hillsboro, OR 100% —  1,387  14,028  15,415  —     1,387  14,028  15,415  (1,263) 1973 08/17/17 40
Avamere Rehab of Junction City Junction City, OR 100% —  584  7,901  8,485  —     584  7,901  8,485  (738) 1966/2015 08/17/17 40
Avamere Rehab of Eugene Eugene, OR 100% —  1,380  14,921  16,301  1,791     1,380  16,712  18,092  (1,801) 1966/2016 08/17/17 40
Avamere Rehab of Coos Bay Coos Bay, OR 100% —  829  8,518  9,347  —     829  8,518  9,347  (826) 1968 08/17/17 40
Avamere Rehab of Clackamas Gladstone, OR 100% —  792  5,000  5,792  —     792  5,000  5,792  (477) 1961 08/17/17 40
Avamere Rehab of Newport Newport, OR 100% —  406  5,001  5,407  —     406  5,001  5,407  (456) 1973/2014 08/17/17 40
Avamere Rehab of Oregon City Oregon City, OR 100% —  1,496  12,142  13,638  —     1,496  12,142  13,638  (1,093) 1974 08/17/17 40
Avamere Transitional Care of Puget Sound Tacoma, WA 100% —  1,771  11,595  13,366  15     1,771  11,610  13,381  (1,217) 2017 08/17/17 40
Richmond Beach Rehab Shoreline, WA 100% —  4,703  14,444  19,147  —     4,703  14,444  19,147  (1,347) 1993/2014 08/17/17 40
St. Francis of Bellingham Bellingham, WA 100% —  —  15,330  15,330  —     —  15,330  15,330  (1,442) 1984/2015 08/17/17 40
Avamere Olympic Rehabilitation of Sequim Sequim, WA 100% —  427  4,450  4,877  —     427  4,450  4,877  (502) 1974 08/17/17 40
Avamere Heritage Rehabilitation of Tacoma Tacoma, WA 100% —  1,705  4,952  6,657  —     1,705  4,952  6,657  (487) 1968 08/17/17 40
Avamere at Pacific Ridge Tacoma, WA 100% —  2,195  1,956  4,151  —     2,195  1,956  4,151  (255) 1972/2014 08/17/17 40
Avamere Rehabilitation of Cascade Park Vancouver, WA 100% —  1,782  15,116  16,898  —     1,782  15,116  16,898  (1,473) 1991 08/17/17 40
The Pearl at Kruse Way Lake Oswego, OR 100% —  5,947  13,401  19,348  —     5,947  13,401  19,348  (1,260) 2005/2016 08/17/17 40
Avamere at Medford Medford, OR 100% —  2,043  38,485  40,528  2,960     2,043  41,445  43,488  (4,091) 1974/2016 08/17/17 40
F-41


Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at which Carried at Close of Period Life on Which Depreciation in Latest Income Statement is Computed
Description   Location  Ownership Percentage
Encum- brances(1)
Land 
Building and Improve- ments(2)(3)
Total 
Land 
Building and Improve- ments(2)(3)
Total  Accumulated Depreciation and Amortization Original Date of Construction/ Renovation 
Date Acquired
Avamere Bellingham Healthcare and Rehab Services Bellingham, WA 100% —  2,908  2,058  4,966  —     2,908  2,058  4,966  (260) 1972/2015 08/17/17 40
Queen Anne Healthcare Seattle, WA 100% —  2,508  6,401  8,909  —     2,508  6,401  8,909  (609) 1970 08/17/17 40
Avamere Transitional Care and Rehab - Boise Boise, ID 100% —  681  9,348  10,029  —     681  9,348  10,029  (890) 1979 08/17/17 40
Avamere Transitional Care at Sunnyside Salem, OR 100% —  2,114  15,651  17,765  —     2,114  15,651  17,765  (1,451) 1981 08/17/17 40
Avamere Health Services of Rogue Valley Medford, OR 100% —  1,375  23,808  25,183  —     1,375  23,808  25,183  (2,227) 1961/2016 08/17/17 40
Avamere Transitional Care and Rehab - Malley Northglenn, CO 100% —  1,662  26,014  27,676  3,258     1,662  29,272  30,934  (3,114) 1972/2016 08/17/17 40
Avamere Transitional Care and Rehab - Brighton Brighton, CO 100% —  1,933  11,624  13,557  200     1,933  11,824  13,757  (1,124) 1971 08/17/17 40
Phoenix Rehabilitation Services Phoenix, AZ 100% —  1,270  11,502  12,772  —     1,270  11,502  12,772  (1,038) 2008 08/17/17 40
Tustin Subacute Care Facility Santa Ana, CA 100% —  1,889  11,682  13,571  —     1,889  11,682  13,571  (1,025) 2008 08/17/17 40
La Mesa Inpatient Rehabilitation Facility La Mesa, CA 100% —  1,276  8,177  9,453  —     1,276  8,177  9,453  (746) 2012 08/17/17 40
Golden Living Center - Westminster Westminster, MD 100% —  2,128  6,614  8,742  487     2,128  7,101  9,229  (913) 1973/2010, 2019 08/17/17 40
Maple Wood Care Center Kansas City, MO 100% —  1,142  3,226  4,368  653     1,142  3,879  5,021  (784) 1983 08/17/17 40
Garden Valley Nursing & Rehab Kansas City, MO 100% —  1,985  2,714  4,699  303     1,985  3,017  5,002  (711) 1983 08/17/17 40
Worthington Nursing & Rehab Parkersburg, WV 100% —  697  10,688  11,385  285     697  10,973  11,670  (1,293) 1974/1999, 2019 08/17/17 40
Burlington House Rehabilitative and Alzheimer’s Care Center Cincinnati, OH 100% —  2,686  10,062  12,748  —     2,686  10,062  12,748  (1,083) 1989/2015 08/17/17 40
Golden Living Center - Charlottesville Charlottesville, VA 100% —  2,840  8,450  11,290  1,176     2,840  9,626  12,466  (1,193) 1964/2009, 2019 08/17/17 40
Golden Living Center - Sleepy Hollow Annandale, VA 100% —  7,241  17,727  24,968  2,032     7,241  19,759  27,000  (2,190) 1963/2013, 2019 08/17/17 40
Golden Living Center - Petersburg Petersburg, VA 100% —  988  8,416  9,404  146     988  8,562  9,550  (922) 1970/2009 08/17/17 40
Golden Living Center - Battlefield Park Petersburg, VA 100% —  1,174  8,858  10,032  151     1,174  9,009  10,183  (955) 1976/2010 08/17/17 40
Golden Living Center - Hagerstown Hagerstown, MD 100% —  1,393  13,438  14,831  150     1,393  13,588  14,981  (1,376) 1971/2010 08/17/17 40
Golden Living Center - Cumberland Cumberland, MD 100% —  800  16,973  17,773  457     800  17,430  18,230  (1,760) 1968 08/17/17 40
Gilroy Healthcare and Rehabilitation Center Gilroy, CA 100% —  662  23,775  24,437  —     662  23,775  24,437  (2,117) 1968 08/17/17 40
North Cascades Health and Rehabilitation Center Bellingham, WA 100% —  1,437  14,196  15,633  —     1,437  14,196  15,633  (1,323) 1999 08/17/17 40
Granite Rehabilitation & Wellness Cheyenne, WY 100% —  387  13,613  14,000  2,246     387  15,859  16,246  (1,806) 1967/2017 08/17/17 40
Rawlins Rehabilitation & Wellness Rawlins, WY 100% —  281  6,007  6,288  —     281  6,007  6,288  (556) 1967 08/17/17 40
F-42


Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at which Carried at Close of Period Life on Which Depreciation in Latest Income Statement is Computed
Description   Location  Ownership Percentage
Encum- brances(1)
Land 
Building and Improve- ments(2)(3)
Total 
Land 
Building and Improve- ments(2)(3)
Total  Accumulated Depreciation and Amortization Original Date of Construction/ Renovation 
Date Acquired
Wind River Rehabilitation & Wellness Riverton, WY 100% —  199  11,398  11,597  —     199  11,398  11,597  (1,028) 1967 08/17/17 40
Sage View Care Center Rock Springs, WY 100% —  420  8,665  9,085  —     420  8,665  9,085  (815) 1964/2017 08/17/17 40
Shelton Health and Rehabilitation Center Shelton, WA 100% —  415  8,965  9,380  —     415  8,965  9,380  (899) 1998 08/17/17 40
Dundee Nursing Home Bennettsville, SC 100% —  1,437  4,631  6,068  —     1,437  4,631  6,068  (477) 1958 08/17/17 40
Mt. Pleasant Nursing Center Mount Pleasant, SC 100% —  2,689  3,942  6,631  —     2,689  3,942  6,631  (431) 1977/2015 08/17/17 40
Tri-State Comp Care Center Harrogate, TN 100% —  1,811  4,963  6,774  —     1,811  4,963  6,774  (554) 1990/2005 08/17/17 40
Epic-Conway Conway, SC 100% —  1,408  10,784  12,192  —     1,408  10,784  12,192  (1,083) 1975 08/17/17 40
Epic- Bayview Beaufort, SC 100% —  1,842  11,389  13,231  —     1,842  11,389  13,231  (1,110) 1970 08/17/17 40
Focused Care at Baytown Baytown, TX 100% —  479  6,351  6,830  209     479  6,457  6,936  (647) 1970/2019 08/17/17 40
Focused Care at Allenbrook Baytown, TX 100% —  426  3,236  3,662  173     426  3,372  3,798  (429) 1975/2019 08/17/17 40
Focused Care at Huntsville Huntsville, TX 100% —  302  3,153  3,455  75     302  3,201  3,503  (359) 1968/2019 08/17/17 40
Focused Care at Center Center, TX 100% —  231  1,335  1,566  312     231  1,556  1,787  (253) 1972/2019 08/17/17 40
Focused Care at Humble Humble, TX 100% —  2,114  1,643  3,757  596     2,114  2,100  4,214  (389) 1972/2019 08/17/17 40
Focused Care at Beechnut Houston, TX 100% —  1,019  5,734  6,753  318     1,019  5,876  6,895  (628) 1982/2019 08/17/17 40
Focused Care at Linden Linden, TX 100% —  112  256  368  133     112  331  443  (82) 1968/2019 08/17/17 40
Focused Care at Sherman Sherman, TX 100% —  469  6,310  6,779  255     469  6,400  6,869  (663) 1971/2019 08/17/17 40
Focused Care at Mount Pleasant Mount Pleasant, TX 100% —  250  6,913  7,163  345     250  7,249  7,499  (768) 1970/2019 08/17/17 40
Focused Care at Waxahachie Waxahachie, TX 100% —  416  7,259  7,675  582     416  7,789  8,205  (773) 1976/2019 08/17/17 40
Focused Care at Gilmer Gilmer, TX 100% —  707  4,552  5,259  93     707  4,605  5,312  (505) 1990/2019 08/17/17 40
Hearthstone of Northern Nevada Sparks, NV 100% —  1,986  9,004  10,990  —     1,986  9,004  10,990  (902) 1988 08/17/17 40
Golden Living Center - Richmond Richmond, IN 100% —  259  9,819  10,078  131     259  9,950  10,209  (936) 1975/2005 08/17/17 40
Golden Living Center - Petersburg Petersburg, IN 100% —  581  5,367  5,948  23     581  5,390  5,971  (547) 1970/2009 08/17/17 40
Beverly Health - Ft. Pierce Fort Pierce, FL 100% —  787  16,648  17,435  —     787  16,648  17,435  (1,525) 1960/2011 08/17/17 40
Maryville Maryville, MO 100% —  114  5,955  6,069  —  150  5,955  6,105  (625) 1972 08/17/17 40
Ashland Healthcare Ashland, MO 100% —  765  2,669  3,434  —     765  2,669  3,434  (300) 1993 08/17/17 40
Bellefontaine Gardens St. Louis, MO 100% —  2,071  5,739  7,810  —     2,071  5,739  7,810  (645) 1988/1991 08/17/17 40
Current River Nursing Center Doniphan, MO 100% —  657  8,251  8,908  —     657  8,251  8,908  (816) 1991 08/17/17 40
Dixon Nursing & Rehab Dixon, MO 100% —  521  3,358  3,879  —     521  3,358  3,879  (360) 1989/2011 08/17/17 40
Forsyth Nursing & Rehab Forsyth, MO 100% —  594  8,549  9,143  —     594  8,549  9,143  (858) 1993/2007 08/17/17 40
Glenwood Healthcare Seymour, MO 100% —  658  901  1,559  —     658  901  1,559  (126) 1990 08/17/17 40

F-43


Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at which Carried at Close of Period Life on Which Depreciation in Latest Income Statement is Computed
Description   Location  Ownership Percentage
Encum- brances(1)
Land 
Building and Improve- ments(2)(3)
Total 
Land 
Building and Improve- ments(2)(3)
Total  Accumulated Depreciation and Amortization Original Date of Construction/ Renovation  Date Acquired
Silex Community Care Silex, MO 100% —  807  4,990  5,797  —     807  4,990  5,797  (508) 1991 08/17/17 40
South Hampton Place Columbia, MO 100% —  2,322  6,547  8,869  —     2,322  6,547  8,869  (677) 1994 08/17/17 40
Strafford Care Center Strafford, MO 100% —  1,634  6,518  8,152  —     1,634  6,518  8,152  (659) 1995 08/17/17 40
Windsor Healthcare & Rehab Windsor, MO 100% —  471  6,819  7,290  —     471  6,819  7,290  (625) 1996 08/17/17 40
Park Manor of Conroe Conroe, TX 100% —  1,222  19,099  20,321  —     1,222  19,099  20,321  (1,711) 2001 08/17/17 40
Park Manor of Cypress Station Houston, TX 100% —  1,334  11,615  12,949  —     1,334  11,615  12,949  (1,084) 2003/2013 08/17/17 40
Park Manor of Humble Humble, TX 100% —  1,541  12,332  13,873  645     1,541  12,977  14,518  (1,306) 2003/2019 08/17/17 40
Park Manor of Quail Valley Missouri City, TX 100% —  1,825  9,681  11,506  —     1,825  9,681  11,506  (939) 2005 08/17/17 40
Park Manor of Westchase Houston, TX 100% —  2,676  7,396  10,072  —     2,676  7,396  10,072  (734) 2005 08/17/17 40
Park Manor of CyFair Houston, TX 100% —  1,732  12,921  14,653  —     1,732  12,921  14,653  (1,197) 1999 08/17/17 40
Park Manor of McKinney McKinney, TX 100% —  1,441  9,017  10,458  —     1,441  9,017  10,458  (911) 1993/2012 08/17/17 40
Tanglewood Health and Rehabilitation Topeka, KS 100% —  176  2,340  2,516  —     176  2,340  2,516  (250) 1973/2013 08/17/17 40
Smoky Hill Health and Rehabilitation Salina, KS 100% —  301  4,201  4,502  —     301  4,201  4,502  (428) 1981 08/17/17 40
Belleville Health Center Belleville, KS 100% —  600  1,664  2,264  —     600  1,664  2,264  (213) 1977 08/17/17 40
Westridge Healthcare Center Terre Haute, IN 100% —  1,067  7,061  8,128  —     1,067  7,061  8,128  (677) 1965/1984 08/17/17 40
Willow Bend Living Center Muncie, IN 100% —  1,168  9,562  10,730  —     1,168  9,562  10,730  (874) 1976/1986 08/17/17 40
Twin City Healthcare Gas City, IN 100% —  345  8,852  9,197  —     345  8,852  9,197  (808) 1974 08/17/17 40
Pine Knoll Rehabilitation Center Winchester, IN 100% —  711  5,554  6,265  —     711  5,554  6,265  (535) 1986/1998 08/17/17 40
Willow Crossing Health & Rehab Center Columbus, IN 100% —  1,290  10,714  12,004  —     1,290  10,714  12,004  (983) 1988/2004 08/17/17 40
Persimmon Ridge Center Portland, IN 100% —  315  9,848  10,163  —     315  9,848  10,163  (917) 1964 08/17/17 40
Vermillion Convalescent Center Clinton, IN 100% —  884  9,839  10,723  —     884  9,839  10,723  (962) 1971 08/17/17 40
Las Vegas Post Acute & Rehabilitation Las Vegas, NV 100% —  509  18,216  18,725  —     509  18,216  18,725  (1,598) 1964 08/17/17 40
Torey Pines Rehabilitation Hospital Las Vegas, NV 100% —  3,169  7,863  11,032  —     3,169  7,863  11,032  (777) 1972/1997 08/17/17 40
Villa Campana Rehabilitation Hospital Tucson, AZ 100% —  1,800  4,387  6,187  1,131     1,800  5,518  7,318  (591) 1983/2011, 2020 08/17/17 40
Kachina Point Rehabilitation Hospital Sedona, AZ 100% —  2,035  10,981  13,016  714     2,035  11,695  13,730  (1,136) 1984/2011 08/17/17 40
Bay View Rehabilitation Hospital Alameda, CA 100% —  3,078  22,328  25,406  —     3,078  22,328  25,406  (2,003) 1967 08/17/17 40
Dover Center for Health & Rehabilitation Dover, NH 100% —  522  5,839  6,361  —     522  5,839  6,361  (729) 1969/1992, 2017 08/17/17 40
Augusta Center for Health & Rehabilitation Augusta, ME 100% —  135  6,470  6,605  —     135  6,470  6,605  (635) 1967 08/17/17 40
Eastside Center for Health & Rehabilitation Bangor, ME 100% —  302  1,811  2,113  2,112     302  3,923  4,225  (281) 1967/1993, 2019 08/17/17 40
F-44


Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at which Carried at Close of Period Life on Which Depreciation in Latest Income Statement is Computed
Description   Location  Ownership Percentage
Encum- brances(1)
Land 
Building and Improve- ments(2)(3)
Total 
Land 
Building and Improve- ments(2)(3)
Total  Accumulated Depreciation and Amortization Original Date of Construction/ Renovation  Date Acquired
Winship Green Center for Health & Rehabilitation Bath, ME 100% —  250  1,934  2,184  —     250  1,934  2,184  (212) 1974 08/17/17 40
Brewer Center for Health & Rehabilitation Brewer, ME 100% —  177  14,497  14,674  2,436     177  16,933  17,110  (1,450) 1974/1990, 2019 08/17/17 40
Kennebunk Center for Health & Rehabilitation Kennebunk, ME 100% —  198  6,822  7,020  76     198  6,898  7,096  (659) 1977 08/17/17 40
Norway Center for Health & Rehabilitation Norway, ME 100% —  791  3,680  4,471  —     791  3,680  4,471  (384) 1976 08/17/17 40
Brentwood Center for Health & Rehabilitation Yarmouth, ME 100% —  134  2,072  2,206  —     134  2,072  2,206  (232) 1952 08/17/17 40
Country Center for Health & Rehabilitation Newburyport, MA 100% —  269  4,436  4,705  —     269  4,436  4,705  (575) 1968/2009 08/17/17 40
Sachem Center for Health & Rehabilitation E. Bridgewater, MA 100% —  447  1,357  1,804  —     447  1,357  1,804  (216) 1968 08/17/17 40
Eliot Center for Health & Rehabilitation Natick, MA 100% —  475  1,491  1,966  —     475  1,491  1,966  (204) 1964 08/17/17 40
The Reservoir Center for Health & Rehabilitation Marlborough, MA 100% —  942  1,541  2,483  8,727     942  10,268  11,210  (1,276) 1973/2018 08/17/17 40
Newton Wellesley Center for Alzheimer’s Care Wellesley, MA 100% —  1,186  13,917  15,103  —     1,186  13,917  15,103  (1,277) 1971 08/17/17 40
Colony Center for Health & Rehabilitation Abington, MA 100% —  1,727  2,103  3,830  —     1,727  2,103  3,830  (268) 1965 08/17/17 40
Westgate Center for Rehab & Alzheimer’s Care Bangor, ME 100% —  229  7,171  7,400  203     229  7,374  7,603  (716) 1969/1993 08/17/17 40
New Orange Hills Orange, CA 100% —  4,163  14,755  18,918  —     4,163  14,755  18,918  (1,390) 1987/2020 08/17/17 40
Millbrook Healthcare & Rehabilitation Center Lancaster, TX 100% —  548  5,794  6,342  —     548  5,794  6,342  (600) 2008 08/17/17 40
Pleasant Valley Health & Rehab Garland, TX 100% —  1,118  7,490  8,608  —     1,118  7,490  8,608  (739) 2008 08/17/17 40
Focused Care at Clarksville Clarksville, TX 100% —  279  4,269  4,548  100     279  4,369  4,648  (496) 1989/2019 08/17/17 40
McKinney Healthcare & Rehab McKinney, TX 100% —  1,272  6,047  7,319  —     1,272  6,047  7,319  (641) 2006 08/17/17 40
Golden Living Center - Hopkins Hopkins, MN 100% —  807  4,668  5,475  530     807  5,198  6,005  (672) 1961/2008, 2019 08/17/17 40
Golden Living Center - Florence Florence, WI 100% —  291  3,778  4,069  —     291  3,778  4,069  (418) 1970 08/17/17 40
Golden Living Center - South Shore St. Francis, WI 100% —  166  1,887  2,053  —     166  1,887  2,053  (217) 1960/1997 08/17/17 40
Golden Living Center - Rochester East Rochester, MN 100% —  645  7,067  7,712  178     645  7,245  7,890  (727) 1967/2011, 2019 08/17/17 40
Golden Living Center - Wisconsin Dells Wisconsin Dells, WI 100% —  1,640  1,599  3,239  —     1,640  1,599  3,239  (238) 1972/2006 08/17/17 40
Golden Living Center - Sheboygan Sheboygan, WI 100% —  1,038  2,839  3,877  —     1,038  2,839  3,877  (358) 1967/2012 08/17/17 40
Golden Living Center - Hendersonville Hendersonville, NC 100% —  1,611  3,503  5,114  —     1,611  3,503  5,114  (407) 1979 08/17/17 40
Focused Care at Corpus Corpus Christi, TX 100% —  366  6,961  7,327  127  51  1,061  1,112  (373) 1973/2010 08/17/17 40
Focused Care at Burnet Bay Baytown, TX 100% —  579  22,317  22,896  103     579  22,420  22,999  (2,022) 2000/2013 08/17/17 40
F-45


Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at which Carried at Close of Period Life on Which Depreciation in Latest Income Statement is Computed
Description   Location  Ownership Percentage
Encum- brances(1)
Land 
Building and Improve- ments(2)(3)
Total 
Land 
Building and Improve- ments(2)(3)
Total  Accumulated Depreciation and Amortization Original Date of Construction/ Renovation  Date Acquired
Focused Care at Cedar Bayou Baytown, TX 100% —  589  20,475  21,064  328     589  20,803  21,392  (1,952) 2008 08/17/17 40
Focused Care at Westwood Houston, TX 100% —  1,300  13,353  14,653  31     1,300  13,384  14,684  (1,298) 2006 08/17/17 40
Focused Care at Pasadena Pasadena, TX 100% —  1,148  23,579  24,727  38     1,148  23,617  24,765  (2,170) 2004 08/17/17 40
Focused Care at Webster Webster, TX 100% —  904  10,315  11,219  24     904  10,339  11,243  (1,027) 2000/2009 08/17/17 40
Focused Care at Summer Place Beaumont, TX 100% —  945  20,424  21,369  253     945  20,677  21,622  (1,875) 2009 08/17/17 40
Focused Care at Orange Orange, TX 100% —  711  10,737  11,448  171     711  10,908  11,619  (1,034) 2006 08/17/17 40
Signature Healthcare of Whitesburg Gardens Huntsville, AL 100% —  634  28,071  28,705  —     634  28,071  28,705  (2,479) 1968/2012 08/17/17 40
Signature Healthcare of Terre Haute Terre Haute, IN 100% —  644  37,451  38,095  —     644  37,451  38,095  (3,716) 1996/2013 08/17/17 40
Signature Healthcare at Larkin Springs Madison, TN 100% —  902  3,850  4,752  —     902  3,850  4,752  (465) 1969/2016 08/17/17 40
Signature Healthcare of Savannah Savannah, GA 100% —  1,235  3,765  5,000  —     1,235  3,765  5,000  (476) 1970/2015 08/17/17 40
Signature Healthcare of Bluffton Bluffton, IN 100% —  254  5,105  5,359  —     254  5,105  5,359  (549) 1970/2015 08/17/17 40
Signature Healthcare of Bowling Green Bowling Green, KY 100% —  280  13,975  14,255  —     280  13,975  14,255  (1,364) 1970/2015 08/17/17 40
Oakview Nursing and Rehabilitation Center Calvert City, KY 100% —  1,176  7,012  8,188  —     1,176  7,012  8,188  (727) 1962/2015 08/17/17 40
Fountain Circle Care and Rehabilitation Center Winchester, KY 100% —  554  13,207  13,761  —     554  13,207  13,761  (1,316) 1967/2015 08/17/17 40
Riverside Care & Rehabilitation Center Calhoun, KY 100% —  613  7,643  8,256  —     613  7,643  8,256  (814) 1963/2015 08/17/17 40
Signature Healthcare of Bremen Bremen, IN 100% —  173  7,393  7,566  —     173  7,393  7,566  (720) 1982/2015 08/17/17 40
Signature Healthcare of Muncie Muncie, IN 100% —  374  27,429  27,803  —     374  27,429  27,803  (2,476) 1980/2013 08/17/17 40
Signature Healthcare at Parkwood Lebanon, IN 100% —  612  11,755  12,367  —     612  11,755  12,367  (1,124) 1977/2012 08/17/17 40
Signature Healthcare at Tower Road Marietta, GA 100% —  364  16,116  16,480  —     364  16,116  16,480  (1,580) 1969/2015 08/17/17 40
Danville Centre for Health and Rehabilitation Danville, KY 100% —  790  9,356  10,146  —     790  9,356  10,146  (1,075) 1962/2015 08/17/17 40
Signature Healthcare at Hillcrest Owensboro, KY 100% —  1,048  22,587  23,635  —     1,048  22,587  23,635  (2,118) 1963/2011 08/17/17 40
Signature Healthcare of Elizabethtown Elizabethtown, KY 100% —  239  4,853  5,092  —     239  4,853  5,092  (509) 1969 08/17/17 40
Signature Healthcare of Primacy Memphis, TN 100% —  1,633  9,371  11,004  —     1,633  9,371  11,004  (962) 1981/2015 08/17/17 40
Signature Healthcare of Harbour Pointe Norfolk, VA 100% —  705  16,451  17,156  —     705  16,451  17,156  (1,746) 1969/2015 08/17/17 40
Harrodsburg Health & Rehabilitation Center Harrodsburg, KY 100% —  1,049  9,851  10,900  —     1,049  9,851  10,900  (1,077) 1975/2016 08/17/17 40
Signature Healthcare of Putnam County Cookeville, TN 100% —  1,034  15,555  16,589  —     1,034  15,555  16,589  (1,493) 1979/2016 08/17/17 40
F-46


Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at which Carried at Close of Period Life on Which Depreciation in Latest Income Statement is Computed
Description   Location  Ownership Percentage
Encum- brances(1)
Land 
Building and Improve- ments(2)(3)
Total 
Land 
Building and Improve- ments(2)(3)
Total  Accumulated Depreciation and Amortization Original Date of Construction/ Renovation  Date Acquired
Signature Healthcare of Fayette County Washington Court House, OH 100% —  405  4,839  5,244  —     405  4,839  5,244  (551) 1984/2015 08/17/17 40
Signature Healthcare of Galion Galion, OH 100% —  836  668  1,504  —     836  668  1,504  (124) 1967/1985 08/17/17 40
Signature Healthcare of Roanoke Rapids Roanoke Rapids, NC 100% —  373  10,308  10,681  —     373  10,308  10,681  (1,088) 1967/2015 08/17/17 40
Signature Healthcare of Kinston Kinston, NC 100% —  954  7,987  8,941  —     954  7,987  8,941  (945) 1960/2015 08/17/17 40
Signature Healthcare of Chapel Hill Chapel Hill, NC 100% —  809  2,703  3,512  302     809  3,005  3,814  (460) 1984/2015 08/17/17 40
Signature Healthcare of Chillicothe Chillicothe, OH 100% —  260  8,924  9,184  —     260  8,924  9,184  (972) 1974/2015 08/17/17 40
Signature Healthcare of Coshocton Coshocton, OH 100% —  374  2,530  2,904  —     374  2,530  2,904  (373) 1974/2015 08/17/17 40
McCreary Health & Rehabilitation Center Pine Knot, KY 100% —  208  7,665  7,873  —     208  7,665  7,873  (760) 1990 08/17/17 40
Colonial Health & Rehabilitation Center Bardstown, KY 100% —  634  4,094  4,728  —     634  4,094  4,728  (474) 1968/2010 08/17/17 40
Glasgow Health & Rehabilitation Center Glasgow, KY 100% —  83  2,057  2,140  —     83  2,057  2,140  (288) 1968 08/17/17 40
Green Valley Health & Rehabilitation Center Carrollton, KY 100% —  124  1,693  1,817  —     124  1,693  1,817  (249) 1978/2016 08/17/17 40
Hart County Health & Rehabilitation Horse Cave, KY 100% —  208  7,070  7,278  —     208  7,070  7,278  (765) 1993 08/17/17 40
Heritage Hall Health & Rehabilitation Center Lawrenceburg, KY 100% —  635  9,861  10,496  —     635  9,861  10,496  (992) 1973 08/17/17 40
Jackson Manor Annville, KY 100% —  479  6,078  6,557  —     479  6,078  6,557  (599) 1989 08/17/17 40
Jefferson Manor Louisville, KY 100% —  3,528  4,653  8,181  —     3,528  4,653  8,181  (574) 1982/2012 08/17/17 40
Jefferson Place Louisville, KY 100% —  2,207  20,733  22,940  —     2,207  20,733  22,940  (1,928) 1991/2010 08/17/17 40
Monroe Health & Rehabilitation Center Tompkinsville, KY 100% —  333  9,556  9,889  —     333  9,556  9,889  (950) 1969 08/17/17 40
North Hardin Health & Rehabilitation Center Radcliff, KY 100% —  1,815  7,470  9,285  —     1,815  7,470  9,285  (941) 1986 08/17/17 40
Professional Care Health & Rehabilitation Center Hartford, KY 100% —  312  8,189  8,501  —     312  8,189  8,501  (832) 1967 08/17/17 40
Rockford Health & Rehabilitation Center Louisville, KY 100% —  427  6,003  6,430  —     427  6,003  6,430  (650) 1975/2005 08/17/17 40
Summerfield Health & Rehabilitation Center Louisville, KY 100% —  1,134  9,166  10,300  —     1,134  9,166  10,300  (1,018) 1979/2013 08/17/17 40
Tanbark Senior Living Lexington, KY 100% —  2,558  4,311  6,869  —     2,558  4,311  6,869  (521) 1989 08/17/17 40
Summit Manor Health & Rehabilitation Center Columbia, KY 100% —  114  11,141  11,255  —     114  11,141  11,255  (1,084) 1965 08/17/17 40
Belle View Estates Rehabilitation and Care Center Monticello, AR 100% —  206  3,179  3,385  —     206  3,179  3,385  (371) 1995 08/17/17 40
River Chase Rehabilitation and Care Center Morrilton, AR 100% —  508  —  508  —     508  —  508  —  1988/2019 08/17/17 40

F-47


Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at which Carried at Close of Period Life on Which Depreciation in Latest Income Statement is Computed
Description   Location  Ownership Percentage
Encum- brances(1)
Land 
Building and Improve- ments(2)(3)
Total 
Land 
Building and Improve- ments(2)(3)
Total  Accumulated Depreciation and Amortization Original Date of Construction/ Renovation  Date Acquired
Heartland Rehabilitation and Care Center Benton, AR 100% —  1,336  7,386  8,722  —     1,336  7,386  8,722  (786) 1992 08/17/17 40
River Ridge Rehabilitation and Care Center Wynne, AR 100% —  227  4,007  4,234  —     227  4,007  4,234  (431) 1990 08/17/17 40
Brookridge Cove Rehabilitation and Care Center Morrilton, AR 100% —  412  2,642  3,054  —  466  2,642  3,108  (349) 1996 08/17/17 40
Southern Trace Rehabilitation and Care Center Bryant, AR 100% —  819  8,938  9,757  —     819  8,938  9,757  (847) 1989/2015 08/17/17 40
Lake Village Rehabilitation and Care Center Lake Village, AR 100% —  507  4,838  5,345  —     507  4,838  5,345  (526) 1998 08/17/17 40
Savannah Specialty Care Center Savannah, GA 100% —  2,194  11,711  13,905  —     2,194  11,711  13,905  (1,095) 1972 08/17/17 40
Pettigrew Rehabilitation Center Durham, NC 100% —  470  9,633  10,103  —     470  9,633  10,103  (892) 1968/2006 08/17/17 40
Sunnybrook Rehabilitation Center Raleigh, NC 100% —  1,155  11,749  12,904  —     1,155  11,749  12,904  (1,114) 1971 08/17/17 40
Raleigh Rehabilitation Center Raleigh, NC 100% —  926  17,649  18,575  —     926  17,649  18,575  (1,645) 1967/2007 08/17/17 40
Cypress Pointe Rehabilitation Center Wilmington, NC 100% —  611  5,051  5,662  —     611  5,051  5,662  (534) 1966/2013 08/17/17 40
Silas Creek Rehabilitation Center Winston-Salem, NC 100% —  879  3,283  4,162  —     879  3,283  4,162  (396) 1965 08/17/17 40
Lincolnton Rehabilitation Center Lincolnton, NC 100% —  —  9,967  9,967  —     —  9,967  9,967  (949) 1976 08/17/17 40
Rehabilitation and Nursing Center of Monroe Monroe, NC 100% —  166  5,906  6,072  —     166  5,906  6,072  (626) 1963/2005 08/17/17 40
Guardian Care of Zebulon Zebulon, NC 100% —  594  8,559  9,153  —     594  8,559  9,153  (782) 1973/2010 08/17/17 40
Guardian Care of Rocky Mount Rocky Mount, NC 100% —  —  18,314  18,314  —     —  18,314  18,314  (1,644) 1975 08/17/17 40
San Pedro Manor San Antonio, TX 100% —  671  2,504  3,175  —     671  2,504  3,175  (302) 1986 08/17/17 40
Park Manor Health Care & Rehabilitation DeSoto, TX 100% —  942  6,033  6,975  —     942  6,033  6,975  (629) 1987 08/17/17 40
Avalon Place - Trinity Trinity, TX 100% —  363  3,852  4,215  —     363  3,852  4,215  (432) 1985/2019 08/17/17 40
Avalon Place - Kirbyville Kirbyville, TX 100% —  208  5,809  6,017  —     208  5,809  6,017  (624) 1987 08/17/17 40
Heritage House of Marshall Marshall, TX 100% —  732  4,288  5,020  —     732  4,288  5,020  (474) 2008 08/17/17 40
Autumn Woods Residential Health Care Facility Warren, MI 100% —  2,052  25,539  27,591  —     2,052  25,539  27,591  (2,636) 1961/2001 08/17/17 40
Autumn View Health Care Facility Hamburg, NY 100% —  1,026  54,086  55,112  —     1,026  54,086  55,112  (4,881) 1983/2014 08/17/17 40
Brookhaven Health Care Facility East Patchogue, NY 100% —  2,181  30,373  32,554  —     2,181  30,373  32,554  (2,883) 1988/2011 08/17/17 40
Harris Hill Nursing Facility Williamsville, NY 100% —  1,122  46,413  47,535  —     1,122  46,413  47,535  (4,112) 1992/2007 08/17/17 40
Garden Gate Health Care Facility Cheektowaga, NY 100% —  1,164  29,905  31,069  —     1,164  29,905  31,069  (2,808) 1979/2006 08/17/17 40
F-48


Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at which Carried at Close of Period Life on Which Depreciation in Latest Income Statement is Computed
Description   Location  Ownership Percentage
Encum- brances(1)
Land 
Building and Improve- ments(2)(3)
Total 
Land 
Building and Improve- ments(2)(3)
Total  Accumulated Depreciation and Amortization Original Date of Construction/ Renovation  Date Acquired
Northgate Health Care Facility North Tonawanda, NY 100% —  830  29,488  30,318  —     830  29,488  30,318  (2,768) 1982/2007 08/17/17 40
Seneca Health Care Center West Seneca, NY 100% —  1,325  26,839  28,164  —     1,325  26,839  28,164  (2,473) 1974/2008 08/17/17 40
Blueberry Hill Rehab and Healthcare Center Beverly, MA 100% —  2,410  13,588  15,998  —     2,410  13,588  15,998  (1,684) 1965/2015 08/17/17 40
River Terrace Rehabilitation and Healthcare Center Lancaster, MA 100% —  343  7,733  8,076  —     343  7,733  8,076  (740) 1970/2005 08/17/17 40
The Crossings East Campus New London, CT 100% —  505  2,248  2,753  48     505  2,296  2,801  (369) 1967/2016 08/17/17 40
Parkway Pavilion Healthcare Enfield, CT 100% —  437  16,461  16,898  27     437  16,488  16,925  (1,611) 1968/2015 08/17/17 40
Quincy Health & Rehabilitation Center Quincy, MA 100% —  894  904  1,798  129     894  1,033  1,927  (166) 1965/2003 08/17/17 40
Den-Mar Health & Rehabilitation Center Rockport, MA 100% —  —  1,765  1,765  —     —  1,765  1,765  (221) 1963/1993 08/17/17 40
Firesteel Healthcare Community Mitchell, SD 100% —  621  14,059  14,680  8,716     621  22,775  23,396  (3,266) 1966/2017 08/17/17 40
Fountain Springs Healthcare Community Rapid City, SD 100% —  1,134  13,109  14,243  268     1,134  13,377  14,511  (1,260) 1989/2016, 2019 08/17/17 40
Palisade Healthcare Community Garretson, SD 100% —  362  2,548  2,910  297     362  2,845  3,207  (346) 1971/1982, 2019 08/17/17 40
Shepherd of the Valley Healthcare Community Casper, WY 100% —  803  19,210  20,013  1,148     803  20,358  21,161  (1,979) 1961/1990, 2019 08/17/17 40
Wheatcrest Hills Healthcare Community Britton, SD 100% —  679  3,216  3,895  331     679  3,547  4,226  (400) 1969/2019 08/17/17 40
Riverview Healthcare Community & Independent Living Flandreau, SD 100% —  240  6,327  6,567  —     240  6,327  6,567  (632) 1965/1989 08/17/17 40
Prairie View Healthcare Center Woonsocket, SD 100% —  383  2,041  2,424  —     383  2,041  2,424  (239) 1968/2012 08/17/17 40
Wingate at Dutchess (Fishkill) Fishkill, NY 100% —  964  30,107  31,071  338     964  30,435  31,399  (2,865) 1995 08/17/17 40
Wingate at Ulster (Highland) Highland, NY 100% —  4,371  11,473  15,844  136     4,371  11,609  15,980  (1,164) 1998 08/17/17 40
Wingate at Beacon Beacon, NY 100% —  —  25,400  25,400  42     —  25,442  25,442  (2,516) 2002 08/17/17 40
Wingate at Springfield Springfield, MA 100% —  817  11,357  12,174  —     817  11,357  12,174  (1,090) 1987 08/17/17 40
Wingate at Andover Andover, MA 100% —  2,123  5,383  7,506  —     2,123  5,383  7,506  (592) 1992 08/17/17 40
Wingate at Reading Reading, MA 100% —  1,534  5,221  6,755  159     1,534  5,380  6,914  (589) 1988 08/17/17 40
Wingate at Sudbury Sudbury, MA 100% —  2,017  3,458  5,475  —     2,017  3,458  5,475  (450) 1997 08/17/17 40
Wingate at Belvidere (Lowell) Lowell, MA 100% —  1,335  9,019  10,354  —     1,335  9,019  10,354  (935) 1966/2007 08/17/17 40
Wingate at Worcester Worcester, MA 100% —  945  8,770  9,715  50     945  8,820  9,765  (891) 1970/1988 08/17/17 40
Wingate at West Springfield W. Springfield, MA 100% —  2,022  7,345  9,367  —     2,022  7,345  9,367  (819) 1960/1985 08/17/17 40
Wingate at East Longmeadow East Longmeadow, MA 100% —  2,968  8,957  11,925  190     2,968  9,147  12,115  (1,016) 1985/2005 08/17/17 40
Broadway by the Sea Long Beach, CA 100% —  2,939  11,782  14,721  —     2,939  11,690  14,629  (1,168) 1968/2011 09/19/17 40
F-49


Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at which Carried at Close of Period Life on Which Depreciation in Latest Income Statement is Computed
Description   Location  Ownership Percentage
Encum- brances(1)
Land 
Building and Improve- ments(2)(3)
Total 
Land 
Building and Improve- ments(2)(3)
Total  Accumulated Depreciation and Amortization Original Date of Construction/ Renovation  Date Acquired
Coventry Court Health Center Anaheim, CA 100% —  2,044  14,167  16,211  —     2,044  14,167  16,211  (1,375) 1968/2011 09/19/17 40
Fairfield Post-Acute Rehab Fairfield, CA 100% —  586  23,582  24,168  —     586  23,582  24,168  (2,129) 1966/2006 09/19/17 40
Garden View Post-Acute Rehab Baldwin Park, CA 100% —  2,270  17,063  19,333  —     2,270  17,063  19,333  (1,626) 1970/2015 09/19/17 40
Grand Terrace Health Care Center Grand Terrace, CA 100% —  432  9,382  9,814  —     432  9,382  9,814  (901) 1945/2017 09/19/17 40
Pacifica Nursing & Rehab Center Pacifica, CA 100% —  1,510  27,397  28,907  —     1,510  27,397  28,907  (2,440) 1975 09/19/17 40
Burien Nursing & Rehab Center Burien, WA 100% —  823  17,431  18,254  —  826  17,431  18,257  (1,635) 1965/2014 09/19/17 40
Park West Care Center Seattle, WA 100% —  4,802  7,927  12,729  —     4,802  7,927  12,729  (834) 1963/2016 09/19/17 40
Beachside Nursing Center Huntington Beach, CA 100% —  2,312  9,885  12,197  —     2,312  9,885  12,197  (945) 1965/2010 09/19/17 40
Chatsworth Park Health Care Chatsworth, CA 100% —  7,841  16,916  24,757  —     7,841  16,916  24,757  (1,684) 1976 09/19/17 40
Cottonwood Post-Acute Rehab Woodland, CA 100% —  504  7,369  7,873  —     504  7,369  7,873  (741) 1975/2010 09/19/17 40
Danville Post-Acute Rehab Danville, CA 100% —  1,491  17,157  18,648  —     1,491  17,157  18,648  (1,599) 1965 09/19/17 40
Lake Balboa Care Center Van Nuys, CA 100% —  2,456  16,462  18,918  —     2,456  16,462  18,918  (1,478) 1958/2015 09/19/17 40
Lomita Post-Acute Care Center Lomita, CA 100% —  2,743  14,734  17,477  —     2,743  14,734  17,477  (1,437) 1969 09/19/17 40
University Post-Acute Rehab Sacramento, CA 100% —  2,846  17,962  20,808  —     2,846  17,962  20,808  (1,653) 1972 09/19/17 40
Issaquah Nursing & Rehab Center Issaquah, WA 100% —  10,125  7,771  17,896  —     10,125  7,771  17,896  (859) 1975/2012 09/19/17 40
Alamitos-Belmont Rehab Hospital Long Beach, CA 100% —  3,157  22,067  25,224  —     3,157  22,067  25,224  (2,081) 1966/2014 09/19/17 40
Edgewater Skilled Nursing Center Long Beach, CA 100% —  2,857  5,878  8,735  —     2,857  5,878  8,735  (598) 1952/2013 09/19/17 40
Fairmont Rehabilitation Hospital Lodi, CA 100% —  812  21,059  21,871  —     812  21,059  21,871  (1,848) 1965 09/19/17 40
Palm Terrace Care Center Riverside, CA 100% —  1,717  13,806  15,523  —     1,717  13,806  15,523  (1,417) 1966 09/19/17 40
Woodland Nursing & Rehab Woodland, CA 100% —  278  16,729  17,007  —     278  16,729  17,007  (1,555) 1930/2007 09/19/17 40
Park Manor at Bee Cave Bee Cave, TX 100% —  2,107  10,413  12,520  —     2,107  10,413  12,520  (1,117) 2014 12/15/17 40
Ramona El Monte, CA 100% —  2,058  19,671  21,729  —     2,058  19,671  21,729  (1,700) 1965 01/10/18 40
Park Ridge Shoreline, WA 100% —  8,861  11,478  20,339  —     8,861  11,478  20,339  (1,170) 1964/2012 01/19/18 40
26,476  376,386  3,218,616  3,595,002  63,018  376,164  3,268,306  3,644,470  (385,094)    
Senior Housing - Leased                  
Forest Hills (ALF) Broken Arrow, OK 100%
(4)
1,803  3,927  5,730  —     1,803  3,294  5,097  (1,655) 2000/2018 11/15/10 30
Langdon Place of Exeter Exeter, NH 100% 2,547  571  7,183  7,754  —     571  5,940  6,511  (2,374) 1987 11/15/10 43
Langdon Place of Nashua Nashua, NH 100% 4,887  —  5,654  5,654  —     —  4,605  4,605  (1,638) 1989 11/15/10 40
Langdon Place of Keene Keene, NH 100% 3,912  304  3,992  4,296  —     304  3,437  3,741  (1,594) 1995 11/15/10 46
F-50


Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at which Carried at Close of Period Life on Which Depreciation in Latest Income Statement is Computed
Description   Location  Ownership Percentage
Encum- brances(1)
Land 
Building and Improve- ments(2)(3)
Total 
Land 
Building and Improve- ments(2)(3)
Total  Accumulated Depreciation and Amortization Original Date of Construction/ Renovation  Date Acquired
Langdon Place of Dover Dover, NH 100% 3,164  801  10,036  10,837  —     801  8,632  9,433  (3,384) 1987/2009, 2019 11/15/10 42
Age-Well Senior Living Green Bay, WI 100% —  256  2,262  2,518  1,032     256  3,294  3,550  (1,770) 2004/2011 11/22/11 40
Gulf Pointe Village Rockport, TX 100% —  789  607  1,396  —     789  607  1,396  (240) 1996/2018 11/30/12 40
Aspen Ridge Retirement Village Gaylord, MI 100% —  2,024  5,467  7,491  —     2,024  5,467  7,491  (1,569) 2002 12/14/12 40
Green Acres of Cadillac Cadillac, MI 100% —  217  3,000  3,217  —     217  3,000  3,217  (728) 2001/2006 12/14/12 40
Green Acres of Greenville Greenville, MI 100% —  684  5,832  6,516  249     684  6,081  6,765  (1,497) 1999/2001, 2012, 2013, 2018 12/14/12 40
Green Acres of Manistee Manistee, MI 100% —  952  2,578  3,530  2,547     952  5,125  6,077  (1,229) 2002/2017 12/14/12 40
Green Acres of Mason Mason, MI 100% —  198  4,131  4,329  —     198  4,131  4,329  (1,045) 2009/2012 12/14/12 40
Nottingham Place Midland, MI 100% —  744  1,745  2,489  400     744  2,145  2,889  (574) 1995/2015 12/14/12 40
Royal View Mecosta, MI 100% —  307  2,477  2,784  —     307  2,477  2,784  (686) 2001 12/14/12 40
Tawas Village East Tawas, MI 100% —  258  3,713  3,971  45     258  3,758  4,016  (1,227) 2005 12/14/12 40
Turning Brook Alpena, MI 100% —  546  13,139  13,685  —     546  13,139  13,685  (2,856) 2006/2008, 2010 12/14/12 40
Greenfield of Woodstock Woodstock, VA 100% —  597  5,465  6,062  —     597  5,465  6,062  (1,193) 1996/2015 06/28/13 40
Nye Square Fremont, NE 100% —  504  17,670  18,174  —     504  17,670  18,174  (3,501) 1989/2002 02/14/14 40
The Meadows Norfolk, NE 100% —  217  9,906  10,123  4,680     217  14,586  14,803  (2,362) 1989/1991, 1994, 2018, 2019 02/14/14 40
Park Place Fort Wayne, IN 100% 12,899  2,300  21,115  23,415  2,747     2,300  23,861  26,161  (5,286) 2011/2016, 2018 04/30/14 40
Avalon MC - Boat Club Fort Worth, TX 100% —  359  8,126  8,485  —     359  8,126  8,485  (1,457) 1996/2015 09/29/14 40
Avalon MC - 7200 Arlington, TX 100% —  123  4,914  5,037  —     123  4,914  5,037  (883) 1988/2014 09/29/14 40
Avalon MC - 7204 Arlington, TX 100% —  215  4,821  5,036  —     215  4,822  5,037  (871) 1988/2014 09/29/14 40
Avalon MC - 7140 Arlington, TX 100% —  143  6,653  6,796  —     143  6,653  6,796  (1,167) 2011 09/29/14 40
Delaney Creek Lodge Brandon, FL 100% —  1,283  8,424  9,707  483     1,283  8,907  10,190  (1,777) 1999/2016 10/01/14 40
Nature Coast Lodge Lecanto, FL 100% —  1,031  5,577  6,608  452     1,031  6,030  7,061  (1,395) 1997/2016 10/01/14 40
West Winds Zephyrhills, FL 100% —  1,688  9,098  10,786  360     1,688  9,459  11,147  (2,025) 2008/2016 10/01/14 40
Tudor Heights Baltimore, MD 100% —  561  4,865  5,426  1,315  344  2,906  3,250  —  1920/1997, 2010, 2015, 2019 10/14/14 40
Life’s Journey of Mattoon Mattoon, IL 100% —  812  6,796  7,608  63  111  720  831  (26) 2006/2008 09/01/15 40
Life’s Journey of Pana Pana, IL 100% —  154  2,098  2,252  —  23  227  250  (9) 1998/2012 09/01/15 40
Life’s Journey of Taylorville Taylorville, IL 100% —  267  5,201  5,468  50  106  1,794  1,900  (226) 2012/2014 09/01/15 40
Life’s Journey of Paris Paris, IL 100% —  132  3,090  3,222  —  49  996  1,045  (116) 1998/2013 09/01/15 40
Ashley Pointe Lake Stevens, WA 100% —  1,559  9,059  10,618  68     1,559  9,127  10,686  (1,475) 1998/2012 09/17/15 40
Farmington Square Eugene Eugene, OR 100% —  1,428  16,138  17,566  101     1,428  16,239  17,667  (2,323) 1996/1997, 2011, 2019 09/17/15 40
Farmington Square Tualatin Tualatin, OR 100% —  527  14,659  15,186  101     527  14,760  15,287  (2,120) 1995/1997, 2019 09/17/15 40
F-51


Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at which Carried at Close of Period Life on Which Depreciation in Latest Income Statement is Computed
Description   Location  Ownership Percentage
Encum- brances(1)
Land 
Building and Improve- ments(2)(3)
Total 
Land 
Building and Improve- ments(2)(3)
Total  Accumulated Depreciation and Amortization Original Date of Construction/ Renovation  Date Acquired
Farmington Square of Salem Salem, OR 100% —  1,074  19,421  20,495  408     1,074  19,829  20,903  (2,950) 1989/1995, 2018 09/17/15 40
Colorado Springs Colorado Springs, CO 100% —  1,210  9,490  10,700  —     1,210  9,490  10,700  (1,463) 2013/2019 11/16/15 40
Sun City West Sun City West, AZ 100% —  930  9,170  10,100  248     930  9,418  10,348  (1,301) 2012 07/01/16 40
Poet’s Walk at Fredericksburg Fredericksburg, VA 100% —  1,379  21,209  22,588  —     1,379  21,209  22,588  (2,786) 2016 07/14/16 40
Poet’s Walk at Chandler Oaks Round Rock, TX 100% —  679  13,642  14,321  —     679  13,642  14,321  (1,807) 2016 08/01/16 40
The Montecito Santa Fe Santa Fe, NM 100% —  2,536  19,441  21,977  —  2,157  21,736  23,893  (2,643) 2006 09/23/16 40
Montecito - MC Santa Fe, NM 100% —  670  7,743  8,413  409  670  8,152  8,822  (38) 2020 09/23/16 40
The Golden Crest Franklin, NH 100% —  292  6,889  7,181  97     292  6,996  7,288  (976) 1988 11/30/16 40
Poet’s Walk at Henderson Henderson, NV 100% —  1,430  21,850  23,280  —     1,430  21,862  23,292  (2,543) 2016 12/01/16 40
Kruse Village Brenham, TX 100% —  476  11,912  12,388  —     476  11,922  12,398  (1,587) 1991 12/02/16 40
Poet’s Walk of Cedar Parks Cedar Park, TX 100% —  1,035  13,127  14,162  —     1,035  13,127  14,162  (1,386) 2017 06/01/17 40
Avamere Court at Keizer Keizer, OR 100% —  1,220  31,783  33,003  —     1,220  31,783  33,003  (2,861) 1970 08/17/17 40
Arbor Court Retirement Community at Alvamar Lawrence, KS 100% —  584  4,431  5,015  —     584  4,431  5,015  (447) 1995/2014 08/17/17 40
Arbor Court Retirement Community at Salina Salina, KS 100% —  584  3,020  3,604  —     584  3,020  3,604  (303) 1989/2014 08/17/17 40
Arbor Court Retirement Community at Topeka Topeka, KS 100% —  313  5,492  5,805  —     313  5,492  5,805  (509) 1986/2014 08/17/17 40
Aspen Grove Assisted Living Sturgis, SD 100% —  555  6,487  7,042  —     555  6,487  7,042  (663) 2013 08/17/17 40
Maurice Griffith Manor Living Center Casper, WY 100% —  294  72  366  —     294  72  366  (14) 1984/1985 08/17/17 40
The Peaks at Old Laramie Trail (Lafayette) Lafayette, CO 100% —  1,085  19,243  20,328  —  1,883  19,196  21,079  (1,758) 2016 12/15/17 40
Prairie View Winnebago, IL 100% —  263  3,743  4,006  —     263  3,743  4,006  (348) 2007 01/31/18 40
Arbor View Assisted Living Pewaukee, WI 100% —  1,019  3,606  4,625  —     1,019  3,606  4,625  (299) 2010 04/16/18 40
Legacy Assisted Living Pewaukee, WI 100% —  661  5,680  6,341  —     661  5,680  6,341  (434) 2015 04/16/18 40
Greenfield of Strasburg Strasburg, VA 100% —  666  5,551  6,217  —     666  5,551  6,217  (437) 2001 04/30/18 40
Poets Walk of Sarasota Sarasota, FL 100% —  1,440  22,541  23,981  —     1,440  22,541  23,981  (1,617) 2018 05/18/18 40
The Pointe at Lifespring Knoxville, TN 100% —  1,603  9,219  10,822  —     1,603  9,219  10,822  (722) 2017 08/31/18 40
Shavano Park Senior Living Shavano Park, TX 100% —  2,131  11,541  13,672  —     2,131  11,541  13,672  (827) 2015 08/31/18 40
Traditions of Beavercreek Beavercreek, OH 100% —  1,622  24,215  25,837  7,561     1,622  31,772  33,394  (2,120) 2016 11/01/18 40
Cadence at Poway Gardens Poway, CA 100% —  3,693  14,467  18,160  —     3,693  14,467  18,160  (459) 1987/2011 11/22/19 40
Traditions of Brookside (McCordsville) McCordsville, IN 100% —  1,587  31,315  32,902  —     1,587  31,315  32,902  (872) 2017 01/07/20 40
Traditions of Beaumont Louisville, KY 100% —  1,841  21,827  23,668  —     1,841  21,827  23,668  (552) 2015 01/31/20 40

F-52


Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at which Carried at Close of Period Life on Which Depreciation in Latest Income Statement is Computed
Description   Location  Ownership Percentage
Encum- brances(1)
Land 
Building and Improve- ments(2)(3)
Total 
Land 
Building and Improve- ments(2)(3)
Total  Accumulated Depreciation and Amortization Original Date of Construction/ Renovation  Date Acquired
Traditions at Hunter Station (Clarksville) Sellersburg, IN 100% —  1,060  28,702  29,762  —  1,060  28,702  29,762  (600) 2015 04/01/20 40
27,409  58,286  646,247  704,533  23,416  57,412  650,222  707,634  (87,600)
Senior Housing - Managed
Winter Village Frankenmuth, MI 100% —  5,027  20,929  25,956  1,201     5,027  22,130  27,157  (5,304) 1982/2008 09/21/12 40
Stoney River Marshfield Marshfield, WI 100% —  574  8,733  9,307  180     574  8,913  9,487  (2,071) 2010 12/18/12 40
Kensington Court Windsor, ON 100% —  1,360  16,855  18,215  1,056  1,435  18,835  20,270  (3,142) 1998 06/11/15 40
Masonville Manor London, ON 100% —  960  19,056  20,016  458  1,013  20,559  21,572  (3,347) 1998/2015, 2019 06/11/15 40
Okanagan Chateau Kelowna, BC 100% —  2,321  8,308  10,629  1,415  2,448  10,179  12,627  (1,864) 1990/2019, 2020 06/11/15 40
Court at Laurelwood Waterloo, ON 100% —  1,823  22,135  23,958  395  1,921  23,745  25,666  (3,817) 2005/2015 06/11/15 40
Fairwinds Lodge Sarnia, ON 100% —  1,187  20,346  21,533  626  1,251  22,089  23,340  (3,568) 2000/2019 06/11/15 40
The Shores Kamloops, BC 100% 4,891  679  8,024  8,703  310  715  8,775  9,490  (1,458) 1992/2014 06/11/15 40
Orchard Valley Vernon, BC 100% 6,511  843  10,724  11,567  457  284  11,770  12,054  (1,840) 1990/2008 06/11/15 40
Cherry Park Penticton, BC 100% 4,688  763  6,771  7,534  775  804  7,919  8,723  (1,320) 1990/1991, 2014, 2019 06/11/15 40
Maison Senior Living Calgary, AB 100% —  3,908  20,996  24,904  671  4,121  22,818  26,939  (3,386) 2013 09/17/15 40
Ramsey Ramsey, MN 100% —  1,182  13,280  14,462  73     1,182  13,353  14,535  (1,318) 2015 10/06/17 40
Marshfield II Marshfield, WI 100% —  500  4,134  4,634  23     500  4,157  4,657  (462) 2014 10/06/17 40
Dover Place Dover, DE 100% —  2,797  23,054  25,851  169     2,797  23,223  26,020  (2,088) 1999 01/02/18 40
Kanawha Place Charleston, WV 100% —  419  4,239  4,658  409     419  4,648  5,067  (578) 1969 01/02/18 40
Leighton Place Williamsport, PA 100% —  296  9,191  9,487  240     296  9,431  9,727  (907) 1990/2009 01/02/18 40
Maidencreek Place Reading, PA 100% —  684  12,950  13,634  93     684  13,043  13,727  (1,202) 2004 01/02/18 40
Rolling Meadows Place Scott Depot, WV 100% —  230  6,271  6,501  312     230  6,575  6,805  (742) 1996 01/02/18 40
Willowbrook Place Clarks Summit, PA 100% —  406  9,471  9,877  712     406  10,183  10,589  (1,051) 1997 01/02/18 40
Wyncote Place Wyncote, PA 100% —  1,781  4,911  6,692  366     1,781  5,277  7,058  (660) 1909 01/02/18 40
Amity Place Douglassville, PA 100% —  611  19,083  19,694  146     611  19,229  19,840  (1,679) 2008 01/02/18 40
Milford Place Milford, DE 100% —  1,199  18,786  19,985  237     1,199  19,023  20,222  (1,716) 1999 01/02/18 40
Oak Hill Place Oak Hill, WV 100% —  609  2,636  3,245  189     609  2,825  3,434  (396) 2001/2014 01/02/18 40
Seasons Place Lewisburg, WV 100% —  355  5,055  5,410  450     355  5,505  5,860  (693) 1995 01/02/18 40
Parkview in Allen Allen, TX 100% —  2,190  45,767  47,957  —     2,190  46,637  48,827  (8,357) 2004/2010 09/25/14 40
The Atrium At Gainesville Gainesville, FL 100% —  2,139  44,789  46,928  —     2,139  46,608  48,747  (8,771) 1986/2013, 2015, 2019 09/25/14 40
The Chateau McKinney, TX 100% —  2,760  44,397  47,157  —     2,760  45,571  48,331  (8,297) 2006/2010, 2019 09/25/14 40
Gardens At Wakefield Plantation Raleigh, NC 100% —  2,344  37,506  39,850  —     2,344  38,275  40,619  (6,757) 2002/2014 09/25/14 40
Las Brisas San Luis Obispo, CA 100% —  4,992  30,909  35,901  —     4,992  31,487  36,479  (5,741) 1987/2006, 2015 09/25/14 40
Creekside Terrace Winston-Salem, NC 100% —  2,995  24,428  27,423  —     2,995  24,782  27,777  (4,614) 2001 09/25/14 40
Colonial Village Longview, TX 100% —  805  26,498  27,303  —     805  27,568  28,373  (5,097) 1985/2010 09/25/14 40
Garden Village Kansas City, MO 100% —  1,325  20,510  21,835  —     1,325  21,466  22,791  (4,231) 1983 09/25/14 40
F-53


Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at which Carried at Close of Period Life on Which Depreciation in Latest Income Statement is Computed
Description   Location  Ownership Percentage
Encum- brances(1)
Land 
Building and Improve- ments(2)(3)
Total 
Land 
Building and Improve- ments(2)(3)
Total  Accumulated Depreciation and Amortization Original Date of Construction/ Renovation  Date Acquired
Desert Rose Yuma, AZ 100% —  530  21,775  22,305  —     530  22,124  22,654  (4,107) 1996/2014 09/25/14 40
Windland South Nashville, TN 100% —  1,996  19,368  21,364  —     1,996  20,507  22,503  (4,159) 1986/2000 09/25/14 40
Cedar Woods Branford, CT 100% —  2,403  18,821  21,224  —     2,403  19,436  21,839  (3,619) 1987 09/25/14 40
Virginian Richmond, VA 100% —  1,080  19,545  20,625  —     1,080  20,231  21,311  (3,860) 1989/2007 09/25/14 40
Monarch Estates Auburn, AL 100% —  3,209  17,326  20,535  —     3,209  17,768  20,977  (3,419) 2001 09/25/14 40
Village At The Falls Menomonee Falls, WI 100% —  1,477  18,778  20,255  —     1,477  19,160  20,637  (3,656)  2005/2006, 2007/2011, 2019 09/25/14 40
Holiday At The Atrium Glenville, NY 100% —  978  18,257  19,235  —     978  19,036  20,014  (3,565) 2001/2014 09/25/14 40
Lake Ridge Village Eustis, FL 100% —  1,152  17,523  18,675  —     1,152  18,904  20,056  (3,620) 1984/1988, 2013 09/25/14 40
Heritage Village McAllen, TX 100% —  4,092  13,823  17,915  —     4,092  14,468  18,560  (2,867) 1988 09/25/14 40
Madison Meadows Phoenix, AZ 100% —  2,567  12,029  14,596  —     2,567  12,998  15,565  (2,692) 1986 09/25/14 40
South Wind Heights Jonesboro, AR 100% —  1,782  11,244  13,026  —     1,782  11,789  13,571  (2,394) 1999 09/25/14 40
Harrison Regent Ogden, UT 100% —  794  10,873  11,667  —     794  11,728  12,522  (2,326) 1985/2016 09/25/14 40
Capital Place Olympia, WA 100% —  2,477  23,767  26,244  —     2,477  25,275  27,752  (4,676) 1986/2016 10/07/14 40
The Monarch at Richardson Richardson, TX 100% —  2,282  10,556  12,838  925     2,282  11,472  13,754  (415) 1999/2020 11/01/19 40
Elan Westpointe New Braunfels, TX 100% —  1,312  23,108  24,420  51     1,312  23,159  24,471  (689) 2015 01/15/20 40
16,090  78,195  827,535  905,730  11,939  78,343  864,653  942,996  (142,538)
Specialty Hospitals and Other
Texas Regional Medical Center Sunnyvale, TX 100% —  4,020  57,620  61,640  —     4,020  57,620  61,640  (17,774) 2009 05/03/11 40
Landmark Aurora Aurora, CO 100% —  2,874  12,829  15,703  483     2,874  13,312  16,186  (2,870) 2009/2018 09/20/12 40
Baylor Orthopedic Spine Hospital at Arlington Arlington, TX 100% —  —  44,217  44,217  —     —  44,217  44,217  (3,787) 2009/2016 08/17/17 40
Touchstone Neurorecovery Center Conroe, TX 100% —  2,935  25,003  27,938  —     2,935  25,003  27,938  (2,421) 1992 08/17/17 40
HealthBridge Children’s Hospital (Houston) Houston, TX 100% —  3,001  14,581  17,582  —     3,001  14,581  17,582  (1,272) 1999/2009 08/17/17 40
Nexus Specialty Hospital - Woodlands Campus Spring, TX 100% —  1,319  15,153  16,472  —     1,319  15,153  16,472  (1,324) 1995/1998 08/17/17 40
HealthBridge Children’s Hospital (Orange) Orange, CA 100% —  2,060  5,538  7,598  —     2,060  5,538  7,598  (504) 2000 08/17/17 40
ResCare Tangram - Texas Hill Country School Maxwell, TX 100% —  902  2,384  3,286     902  2,385  3,287  (241) 1993 08/17/17 40
ResCare Tangram - Chaparral Maxwell, TX 100% —  901  1,198  2,099  —     901  1,198  2,099  (146) 1994/2009 08/17/17 40
ResCare Tangram - Sierra Verde & Roca Vista Maxwell, TX 100% —  456  2,632  3,088  —     456  2,632  3,088  (251) 1992 08/17/17 40
ResCare Tangram - 618 W. Hutchinson San Marcos, TX 100% —  51  359  410  62     51  359  410  (35) 1869 08/17/17 40
ResCare Tangram - Ranch Seguin, TX 100% —  539  2,627  3,166  —     539  2,627  3,166  (319) 1989 08/17/17 40
ResCare Tangram - Mesquite Seguin, TX 100% —  228  3,407  3,635  79     228  3,486  3,714  (352) 1985/1991 08/17/17 40
F-54


Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at which Carried at Close of Period Life on Which Depreciation in Latest Income Statement is Computed
Description   Location  Ownership Percentage
Encum- brances(1)
Land 
Building and Improve- ments(2)(3)
Total 
Land 
Building and Improve- ments(2)(3)
Total  Accumulated Depreciation and Amortization Original Date of Construction/ Renovation  Date Acquired
ResCare Tangram - Hacienda Kingsbury, TX 100% —  104  2,788  2,892  27     104  2,815  2,919  (260) 1990/2012 08/17/17 40
ResCare Tangram - Loma Linda Seguin, TX 100% —  52  805  857  —     52  805  857  (81) 1970 08/17/17 40
Aurora Chicago Lakeshore Hospital Chicago, IL 100% —  8,574  39,732  48,306  —     8,574  39,732  48,306  (3,680) 1992/2011 08/17/17 40
Aurora Arizona West Glendale, AZ 100% —  1,501  67,046  68,547  —     1,501  67,046  68,547  (5,863) 1996/2013 08/17/17 40
Aurora Arizona East Tempe, AZ 100% —  3,137  50,073  53,210  —     3,137  50,073  53,210  (4,476) 2001/2016 08/17/17 40
Aurora Charter Oak Hospital Covina, CA 100% —  23,472  71,542  95,014  —     23,472  71,542  95,014  (6,499) 1974/2011 08/17/17 40
Aurora Vista del Mar Hospital Ventura, CA 100% —  8,089  43,645  51,734  —     8,089  43,645  51,734  (4,310) 1984/2018 08/17/17 40
Aurora San Diego Hospital San Diego, CA 100% —  8,403  55,015  63,418  7,599     8,403  62,614  71,017  (5,853) 1988/2017 08/17/17 40
Gateway Rehabilitation Hospital at Florence Florence, KY 100% —  3,866  26,447  30,313  —     3,866  26,447  30,313  (2,308) 2000 08/17/17 40
Highlands Regional Rehabilitation Hospital El Paso, TX 100% —  2,009  6,639  8,648  —     2,009  6,639  8,648  (646) 1999/2009 08/17/17 40
Landmark New London New London, CT 100% —  356  152  508  98     356  250  606  (32) 1967/2016 08/17/17 40
Landmark Carmel Carmel, IN 100% —  963  4,347  5,310  —     963  4,347  5,310  (218) 1996/2019 07/24/19 40
Landmark Louisville Louisville, KY 100% —  1,078  8,305  9,383  —     1,078  8,305  9,383  (355) 2002/2018 08/21/19 40
Recovery Centers of America at Monroeville Monroeville, PA 100% —  2,034  1,758  3,792  13,740     2,034  15,498  17,532  (144) 1987/2020 12/18/19 40
—  82,924  565,842  648,766  22,089  82,924  587,869  670,793  (66,021)
Multi-property Indebtedness     10,224  —  —  —  —  —  —  —  —     
      80,199  595,791  5,258,240  5,854,031  120,462  594,843  5,371,050  5,965,893  (681,253)    
Corporate Assets     —  —  136  136  666  —  802  802  (404)    
      $ 80,199  $ 595,791  $ 5,258,376  $ 5,854,167  $ 121,128  $ 594,843  $ 5,371,852  $ 5,966,695  $ (681,657)    
(1)    Encumbrances do not include deferred financing costs, net of $1.1 million as of December 31, 2020.
(2)    Building and building improvements include land improvements and furniture and equipment.
(3)    The aggregate cost of real estate for federal income tax purposes was $5.0 billion.
(4)    Property serves as collateral for secured debt totaling $10.2 million as of December 31, 2020.


F-55


SCHEDULE III
REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION
(dollars in thousands)


Year Ended December 31,
2020 2019 2018
Real estate:  
Balance at the beginning of the year $ 5,880,583  $ 6,255,883  $ 6,334,855 
Acquisitions 110,752  49,483  262,605 
Real estate assumed —  12,962  — 
Improvements 47,354  25,451  27,697 
Impairment (6,776) (143,655) (1,576)
Sale of real estate (63,050) (322,910) (351,922)
Foreign currency translation 3,448  6,918  (12,639)
Write-off of fully depreciated assets (5,616) (3,549) (3,137)
Balance at the end of the year $ 5,966,695  $ 5,880,583  $ 6,255,883 
   
Accumulated depreciation:  
Balance at the beginning of the year $ (539,213) $ (402,338) $ (340,423)
Depreciation expense (166,086) (163,863) (174,398)
Impairment 2,773  22,070  163 
Sale of real estate 15,886  2,092  108,122 
Foreign currency translation (633) (723) 1,061 
Write-off of fully depreciated assets 5,616  3,549  3,137 
Balance at the end of the year $ (681,657) $ (539,213) $ (402,338)

F-56


SCHEDULE IV
MORTGAGE LOANS ON REAL ESTATE
As of December 31, 2020
(dollars in thousands)

Description Contractual Interest Rate Maturity Date Periodic Payment Terms Prior Liens Principal Balance
Book Value (1)
Principal Amount of Loans Subject to Delinquent Principal or Interest
Mortgages:
River Vista 10.0  % 2027
(2)
$ —  $ 19,000  $ 19,000  N/A
Construction Mortgages:
Arlington 8.0  2022
(3)
—  3,343  3,352  N/A
$ —  $ 22,343  $ 22,352 
(1)    The aggregate cost for federal income tax purposes was $22.5 million as of December 31, 2020.
(2)    Interest is due monthly, and principal is due at the maturity date.
(3)    Interest and principal for the first 36 months is deferred and due at the maturity date. Interest after the first 36 months is due monthly.



Changes in mortgage loans are summarized as follows:
Year Ended December 31,
2020 2019 2018
Balance at the beginning of the year $ 21,468  $ 23,146  $ 16,033 
Additions during period:
Draws 706  1,689  10,943 
Interest income added to principal 169  194  1,528 
Deductions during period:
Paydowns/repayments —  (3,561) (5,358)
Balance at the end of the year $ 22,343  $ 21,468  $ 23,146 
F-57


SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Irvine, State of California, on February 22, 2021.
 
SABRA HEALTH CARE REIT, INC.
By:
/S/    RICHARD K. MATROS         
 
Richard K. Matros
Chairman, President and
Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:
 
Name
Title 
Date
/S/    RICHARD K. MATROS Chairman, President and Chief Executive Officer (Principal Executive Officer) February 22, 2021
Richard K. Matros
/S/    HAROLD W. ANDREWS, JR. Executive Vice President, Chief Financial Officer and Secretary (Principal Financial Officer) February 22, 2021
Harold W. Andrews, Jr.
/S/    MICHAEL COSTA Executive Vice President, Finance and Chief
Accounting Officer (Principal Accounting Officer)
February 22, 2021
Michael Costa
/S/    CRAIG A. BARBAROSH Director February 22, 2021
Craig A. Barbarosh
/S/    KATIE CUSACK Director February 22, 2021
Katie Cusack
/S/    MICHAEL J. FOSTER Director February 22, 2021
Michael J. Foster
/S/    RONALD G. GEARY Director February 22, 2021
Ronald G. Geary
/S/    LYNNE S. KATZMANN Director February 22, 2021
Lynne S. Katzmann
/S/    ANN KONO Director February 22, 2021
Ann Kono
/S/    RAYMOND J. LEWIS Director February 22, 2021
Raymond J. Lewis
/S/    JEFFREY A. MALEHORN Director February 22, 2021
Jeffrey A. Malehorn
/S/    CLIFTON J. PORTER II Director February 22, 2021
Clifton J. Porter II
/S/    MILTON J. WALTERS Director February 22, 2021
Milton J. Walters


DESCRIPTION OF CAPITAL STOCK OF
SABRA HEALTH CARE REIT, INC.

The following is a summary of the material terms of our capital stock as set forth in our Articles of Amendment and Restatement (our “charter) and our Amended and Restated Bylaws (our “bylaws”), which govern the rights of holders of our capital stock. The following summary does not purport to be complete and is subject to and qualified in its entirety by reference to applicable provisions of the Maryland General Corporation Law (the “MGCL”) and to our charter and bylaws. For a complete description, we refer to the MGCL, our charter and our bylaws. Copies of our charter and bylaws are included as exhibits to the Annual Report on Form 10-K of which this Exhibit 4.1 is a part.

General

Our charter provides that we may issue up to 500,000,000 shares of common stock, $0.01 par value per share, and up to 10,000,000 shares of preferred stock, $0.01 par value per share. As of December 31, 2020, 210,560,815 shares of common stock were issued and outstanding, and no shares of preferred stock were issued and outstanding. Under Maryland law, stockholders are not generally liable for our or our subsidiaries’ debts or obligations solely as a result of their status as stockholders.

Common Stock

All issued and outstanding shares of common stock are fully paid and nonassessable. Subject to the preferential rights of any other class or series of stock and the provisions of our charter that restrict transfer and ownership of our stock, the holders of shares of our common stock generally are entitled to receive dividends on such stock out of assets legally available for distribution to our stockholders when, as and if authorized by our board of directors and declared by us. The holders of shares of common stock are also entitled to share ratably in our net assets legally available for distribution to our stockholders in the event of our liquidation, dissolution or winding up, after payment of, or adequate provision for, all of our known debts and liabilities.

Subject to the rights of any other class or series of our stock and the provisions of our charter that restrict the transfer and ownership of our stock, each outstanding share of common stock entitles the holder to one vote on all matters submitted to a vote of the stockholders, including the election of directors, and the holders of shares of our common stock possess the exclusive voting power.

Holders of shares of our common stock generally have no preference, conversion, exchange, sinking fund, redemption or appraisal rights and have no preemptive rights to subscribe for any of our securities. Subject to the provisions of our charter that restrict transfer and ownership of our stock, all shares of common stock have equal dividend, liquidation and other rights.

Preferred Stock

Under our charter, our board of directors may from time to time establish and cause us to issue one or more classes or series of preferred stock. Prior to the issuance of shares of each class or series of preferred stock, our board of directors will be required by the MGCL and our charter to adopt resolutions and file articles supplementary with the State Department of Assessments and Taxation of Maryland. The articles supplementary will fix for each class or series the terms, preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications, and terms and conditions of redemption, including, but not limited to, the following:
1



the title, designation and stated value of the preferred stock;
the number of shares constituting each class or series;
voting rights;
rights and terms of redemption (including sinking fund provisions);
dividend rights and rates;
dissolution;
terms concerning the distribution of assets;
conversion or exchange terms;
redemption prices; and
liquidation preferences.
 
All shares of preferred stock will, when issued in exchange for the consideration therefor, be fully paid and nonassessable and, unless otherwise provided for in the terms of a particular class or series of preferred stock, will not have any preemptive or similar rights. Our board of directors, without stockholder approval, could authorize the issuance of shares of preferred stock with terms and conditions that could have the effect of delaying, deferring or preventing a takeover or other transaction that might involve a premium price for holders of the shares or which holders might believe to be in their best interests. Additionally, the issuance of preferred stock may have the effect of decreasing the market price of our common stock and may adversely affect the voting and other rights of the holders of our common stock.

We will set forth in the applicable prospectus supplement relating to the class or series of preferred stock being offered the specific terms of each class or series of our preferred stock, including the price at which the preferred stock may be purchased, the number of shares of preferred stock offered, and the terms, if any, on which the preferred stock may be convertible into common stock or exchangeable for other securities.

Power to Reclassify Unissued Shares

Our board of directors has the power, without stockholder approval, to amend our charter to increase or decrease the aggregate number of authorized shares of capital stock or the number of authorized shares of capital stock of any class or series, to authorize us to issue additional authorized but unissued shares of common stock or preferred stock and to classify and reclassify any unissued shares of common stock or preferred stock into other classes or series of stock, including one or more classes or series of common stock or preferred stock that have priority with respect to voting rights, dividends or upon liquidation over shares of common stock. Prior to the issuance of shares of each new class or series, our board of directors will be required by the MGCL and our charter to set, subject to the provisions of our charter regarding restrictions on transfer and ownership of stock, the terms, preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications, and terms and conditions of redemption for each class or series of capital stock.

Restrictions on Transfer and Ownership of Stock

In order for us to qualify as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”), among other requirements, our stock must be beneficially owned by 100 or more persons during at least 335 days of a taxable year of 12 months (other than the first year for which an election to be a REIT has been made) or during a proportionate part of a shorter taxable year. Also, not more than 50% of the value of the outstanding shares of our stock may be owned, directly or
2


indirectly, by five or fewer individuals (as defined in the Code to include certain entities such as qualified pension plans) during the last half of a taxable year (other than the first year for which an election to be a REIT has been made). In addition, rent from related-party tenants (generally, a tenant of a REIT that is 10% or more owned, actually or constructively, by the REIT, or that is a 10% owner of the REIT) is not qualifying income for purposes of the gross income tests under the Code.

Our charter contains restrictions on the transfer and ownership of our stock. The relevant sections of our charter provide that, subject to the exceptions described below, no person or entity may beneficially own, or be deemed to own by virtue of the applicable constructive ownership provisions of the Code, more than 9.9% in value or number of shares, whichever is more restrictive, of our outstanding common stock or more than 9.9% in value of our outstanding stock. In addition, classes of shares other than common stock may be subject to ownership limitations set forth in the articles supplementary relating to such shares. These limits are collectively referred to as the “ownership limits.” The constructive ownership rules under the Code are complex and may cause stock owned actually or constructively by a group of related individuals and/or entities to be owned constructively by one individual or entity. As a result, the acquisition of less than 9.9% of our outstanding common stock or less than 9.9% of our outstanding stock, or the acquisition of an interest in an entity that owns, actually or constructively, our stock, could, nevertheless, cause the acquiror, or another individual or entity, to own constructively shares of our outstanding stock in excess of the ownership limits.

Our board of directors may, upon receipt of certain representations, covenants and undertakings and in its sole and absolute discretion, prospectively or retroactively, exempt a person from the ownership limits or establish a different limit on ownership, or an excepted holder limit, for a particular stockholder if the stockholder’s ownership in excess of the ownership limits would not result in our being “closely held” under Section 856(h) of the Code or otherwise failing to qualify as a REIT. As a condition of granting a waiver of the ownership limits or creating an excepted holder limit, our board of directors may, but is not required to, require an Internal Revenue Service ruling or opinion of counsel satisfactory to our board of directors (in its sole discretion) as it may deem necessary or advisable to determine or ensure our status as a REIT. Our board of directors may only reduce any excepted holder limit with the written consent of such excepted holder at any time or pursuant to the terms and conditions of the agreements entered into with the stockholder in connection with the establishment of the excepted holder limit.

Our board of directors may also, from time to time, increase or decrease the ownership limits unless, after giving effect to the increased or decreased ownership limits, five or fewer persons could beneficially own, in the aggregate, more than 49.9% in number or value of our outstanding stock or we would otherwise fail to qualify as a REIT. Decreased ownership limits do not apply to any person or entity whose ownership of stock is in excess of the decreased ownership limits until the person or entity’s ownership of stock equals or falls below the decreased ownership limits, but any further acquisition of stock would be in violation of the decreased ownership limits.

Our charter also prohibits:
any person from beneficially or constructively owning shares of our stock to the extent such beneficial or constructive ownership would result in our being “closely held” under Section 856(h) of the Code (without regard to whether the ownership interest is held during the last half of a taxable year), or otherwise cause us to fail to qualify as a REIT;
any transfer of shares of our stock if the transfer would result in shares of our stock being beneficially owned by fewer than 100 persons;
3


any person from beneficially or constructively owning shares of our stock to the extent such beneficial or constructive ownership would result in our constructively owning 9.9% or more of the ownership interests in a tenant within the meaning of Section 856(d)(2)(B) of the Code; and
any person from constructively owning shares of our stock to the extent such constructive ownership would cause any “eligible independent contractor” that operates a “qualified health care property” on behalf of a “taxable REIT subsidiary” of ours (as such terms are defined in Sections 856(d)(9)(A), 856(e)(6)(D)(i) and 856(l) of the Code, respectively) to fail to qualify as such.  

Any person who acquires or attempts or intends to acquire beneficial or constructive ownership of shares of our stock that will or may violate the ownership limits, or any of the other restrictions on transfer and ownership of stock, and any person who is the intended transferee of shares of stock that are transferred to the charitable trust described below, will be required to give us immediate written notice and, in the case of a proposed transaction, at least 15 days’ prior written notice and to provide us with such other information as we may request in order to determine the effect of the transfer on our status as a REIT. The provisions of our charter regarding restrictions on transfer and ownership of stock do not apply if our board of directors determines that it is no longer in our best interests to attempt to qualify, or to continue to qualify, as a REIT or that compliance is no longer required in order for us to qualify as a REIT.

Any attempted transfer of our stock which, if effective, would result in our stock being beneficially owned by fewer than 100 persons will be null and void and the intended transferee shall acquire no rights in such shares of stock. Any attempted transfer of our stock which, if effective, would violate any of the other restrictions described above will cause the number of shares causing the violation (rounded up to the nearest whole share) to be automatically transferred to a trust for the exclusive benefit of one or more charitable beneficiaries, and the proposed transferee will not acquire any rights in the shares. We will appoint the trustee of the trust, who will be unaffiliated with us and any proposed transferee of the shares. The automatic transfer will be deemed to be effective as of the close of business on the business day prior to the date of the violative transfer or other event that results in a transfer to the trust. Shares of our stock held in the trust will be issued and outstanding shares. If the transfer to the trust as described above is not automatically effective, for any reason, to prevent violation of the applicable restrictions on transfer and ownership of stock, then the transfer of the shares will be null and void.

The proposed transferee shall have no rights in the shares held by the trust. The proposed transferee will not benefit economically from ownership of any shares of stock held in the trust, will have no rights to dividends or other distributions and no rights to vote or other rights attributable to the shares of stock held in the trust. The trustee of the trust will exercise all voting rights and receive all dividends and other distributions with respect to shares held in the trust for the exclusive benefit of the charitable beneficiary of the trust. Any dividend or other distribution paid prior to our discovery that shares have been transferred to a trust as described above must be repaid by the recipient to the trustee upon demand and any dividend or other distribution authorized but unpaid shall be held in trust for the charitable beneficiary. Subject to Maryland law, effective as of the date that the shares have been transferred to the trust, the trustee will have the authority, at the trustee’s sole discretion, to rescind as void any vote cast by a proposed transferee prior to our discovery that the shares have been transferred to the trust and to recast the vote in accordance with the desires of the trustee acting for the benefit of the charitable beneficiary of the trust. However, if we have already taken irreversible corporate action, then the trustee may not rescind and recast the vote.

If our board of directors or a committee thereof or other designee if permitted by the MGCL determines in good faith that a proposed transfer or other event has taken place that violates the restrictions on transfer
4


and ownership of stock set forth in our charter or that a person intends to acquire or has attempted to acquire beneficial or constructive ownership in violation of our ownership limits, then our board of directors or such committee or other designee if permitted by the MGCL shall take such action as it deems advisable to refuse to give effect to or to prevent such transfer or other event, including, but not limited to, causing us to redeem shares of stock, refusing to give effect to the transfer on our books or instituting proceedings to enjoin the transfer; provided, however, that any transfer or attempted transfer or other event in violation of the above restrictions shall automatically result in the transfer to the trust described above, and, where applicable, such transfer or other event shall be null and void as provided above irrespective of any action or non-action by our board of directors or any committee or designee thereof.

Shares of stock transferred to the trustee will be deemed offered for sale to us, or our designee, at a price per share equal to the lesser of (i) the price paid per share in the transaction that resulted in such transfer to the charitable trust (or, in the case of a devise or gift, the market price of such stock at the time of such devise or gift) and (ii) the market price of such stock on the date we, or our designee, accepts such offer. We will have the right to accept such offer until the trustee has sold the shares held in the charitable trust. Upon a sale to us, the interest of the charitable beneficiary in the shares sold will terminate and the trustee will be required to distribute the net proceeds of the sale to the proposed transferee and any distributions held by the trustee with respect to such shares to the charitable beneficiary. We may reduce the amount payable to the proposed transferee by the amount of dividends and distributions that have been paid to the proposed transferee and are owed by the proposed transferee to the trustee. We may pay the amount of such reduction to the trustee for the benefit of the charitable beneficiary.

If we do not buy the shares, the trustee will be required, within 20 days of receiving notice from us of a transfer of shares to the trust, to sell the shares to a person or entity designated by the trustee who could own the shares without violating the ownership limits, or the other restrictions on transfer and ownership of stock. Upon such sale, the interest of the charitable beneficiary in the shares of stock sold shall terminate and the trustee shall distribute the net proceeds of the sale to the proposed transferee and to the charitable beneficiary. After selling the shares, the trustee will be required to distribute to the proposed transferee an amount equal to the lesser of (i) the price paid by the proposed transferee for the shares or, if the proposed transferee did not give value for the shares in connection with the event causing the shares to be held by the trust (e.g., in the case of a gift, devise or other such transaction), the market price of such stock on the day of the event causing the shares to be held by the trust and (ii) the price per share received by the trustee (net of any commissions and other expenses) from the sale or other disposition of the shares. The trustee may reduce the amount payable to the proposed transferee by the amount of dividends and distributions that have been paid to the proposed transferee and are owed by the proposed transferee to the trustee. Any net sales proceeds in excess of the amount payable to the proposed transferee will be paid immediately to the charitable beneficiary. If the proposed transferee sells such shares prior to the discovery that such shares have been transferred to the trustee, then (i) such shares shall be deemed to have been sold on behalf of the trust and (ii) to the extent that the proposed transferee received an amount for such shares that exceeds the amount that such proposed transferee would have received if such shares had been sold by the trustee, such excess shall be paid to the trustee upon demand.

Any certificates representing shares of our stock will bear a legend referring to the restrictions on transfer and ownership described above or state that we will furnish a full statement of the above restrictions on request and without charge.

Every owner of 5% or more (or such lower percentage as required by the Code or the regulations promulgated thereunder) of our stock, in number or in value, within 30 days after the end of each taxable
5


year, will be required to give us written notice stating the person’s name and address, the number of shares of each class and series of stock that the person beneficially owns, a description of the manner in which the shares are held and any additional information that we request in order to determine the effect, if any, of the person’s beneficial ownership on our status as a REIT and to ensure compliance with the ownership limits. In addition, any beneficial owner or constructive owner of shares of our stock and any person or entity (including the stockholder of record) who holds shares of our stock for a beneficial owner or constructive owner will be required to, on request, disclose to us in writing such information as we may request in order to determine the effect, if any, of the stockholder’s actual and constructive ownership of stock on our status as a REIT and to comply with the requirements of any governmental or taxing authority.

The restrictions on transfer and ownership described above could have the effect of delaying, deferring or preventing a change of control in which holders of shares of our stock might receive a premium for their shares over the then-prevailing price.

Certain Provisions of Maryland Law and of Our Charter and Bylaws

The following paragraphs summarize certain provisions of our charter and bylaws, as well as selected provisions of the MGCL.

Board of Directors

Our charter and bylaws provide that the number of directors of our company may be established by our board of directors, but may not be fewer than the minimum number required by the MGCL nor more than eleven. Currently, we have eleven directors. We have elected to be subject to certain provisions of the MGCL, as a result of which our board of directors has the exclusive power to fill vacancies on the board of directors.

Each of our directors is elected by our stockholders to serve until the next annual meeting of stockholders and until his or her successor is duly elected and qualifies. In order for any incumbent director to become a nominee of our board of directors for further service on our board of directors, such person must submit an irrevocable resignation, which will only become effective as described below. Under our charter, there is no cumulative voting in the election of our board of directors. Instead, our bylaws require that, in uncontested elections, each director be elected by the majority of votes cast with respect to such director. This means that the number of shares voted “for” a director nominee must exceed the number of shares affirmatively voted “against” that nominee in order for that nominee to be elected. If a nominee who is an incumbent director does not receive a majority of the votes cast in an uncontested election, the nominating and governance committee of our board of directors shall consider the facts and circumstances relating to the election and the resignation submitted by such nominee, and recommend to our board of directors, within sixty (60) days following certification of the election results, whether such resignation should be accepted or rejected or whether other action should be taken. The board of directors shall act on the resignation within ninety (90) days following certification of the election results, taking into account the committee’s recommendation, and publicly disclose (by a press release and filing an appropriate disclosure with the Securities and Exchange Commission) its decision regarding the resignation. The committee in making its recommendation and the board of directors in making its decision each may consider any factors and other information that they consider appropriate and relevant.

Removal of Directors

6


Our charter provides that, subject to the rights of holders of any class or series of stock separately entitled to elect or remove one or more directors, a director may be removed with or without cause, by the affirmative vote of at least a majority of the votes entitled to be cast generally in the election of directors.

Amendments to Our Charter and Bylaws and Approval of Extraordinary Actions

Under Maryland law, a Maryland corporation generally cannot amend its charter, merge, convert, consolidate, sell all or substantially all of its assets, engage in a statutory share exchange, dissolve or engage in similar transactions outside the ordinary course of business unless the action is advised by the board of directors and approved by the affirmative vote of stockholders entitled to cast at least two-thirds of the votes entitled to be cast on the matter. However, a Maryland corporation may provide in its charter for approval of these actions by a lesser percentage, but not less than a majority of all of the votes entitled to be cast on the matter. Our charter provides that the affirmative vote of at least a majority of the votes entitled to be cast on the matter will be required to approve all charter amendments or extraordinary actions. Also, Maryland law permits a Maryland corporation to transfer all or substantially all of its assets without the approval of the stockholders of the corporation to one or more persons if 90% or more of the equity interests of the person or persons are owned, directly or indirectly, by the corporation.

Our bylaws may be altered, amended or repealed, in whole or in part, and new bylaws may be adopted by (i) our board of directors or (ii) our stockholders with the affirmative vote of a majority of the votes entitled to be cast on the matter by stockholders entitled to vote generally in the election of directors.

Business Combinations

Under the MGCL, “business combinations” between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, share exchange or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An interested stockholder is defined as:
any person who beneficially owns, directly or indirectly, 10 percent or more of the voting power of the corporation’s outstanding voting stock; or
an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner, directly or indirectly, of 10 percent or more of the voting power of the then outstanding voting stock of the corporation.

A person is not an interested stockholder under the statute if the board of directors approved in advance the transaction by which such person otherwise would have become an interested stockholder. However, in approving a transaction, a board of directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by the board of directors.

After the five-year prohibition, any business combination between the Maryland corporation and an interested stockholder generally must be recommended by the board of directors of the corporation and approved by the affirmative vote of at least:
eighty percent of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and
two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder, voting together as a single class.
7


 
These supermajority vote requirements do not apply if the corporation’s common stockholders receive a minimum price, as defined under the MGCL, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares. The statute provides various exemptions from its provisions, including for business combinations that are exempted by the board of directors before the time that the interested stockholder becomes an interested stockholder. Our board of directors has not opted out of the business combination provisions of the MGCL, and consequently, the five-year prohibition and the supermajority vote requirements will apply to business combinations between us and any interested stockholder.

We are subject to the business combination provisions described above. However, our board of directors may elect to opt out of the business combination provisions at any time.

Control Share Acquisitions

Maryland law provides that issued and outstanding control shares of a Maryland corporation acquired in a control share acquisition have no voting rights except to the extent approved by the stockholders by the affirmative vote of two-thirds of all the votes entitled to be cast on the matter. Shares owned by the acquiror, by officers or by employees who are directors of the corporation are excluded from shares entitled to vote on the matter. Control shares are voting shares of stock which, if aggregated with all other shares of stock owned by the acquiror or in respect of which the acquiror is able to exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquiror to, directly or indirectly, exercise voting power in electing directors within one of the following ranges of voting power:
one-tenth or more but less than one-third,
one-third or more but less than a majority, or
a majority or more of all voting power.

Control shares do not include shares the acquiror is then entitled to vote as a result of having previously obtained stockholder approval or shares acquired directly from the corporation. A control share acquisition means the acquisition of control shares, subject to certain exceptions.

A person who has made or proposes to make a control share acquisition may compel the board of directors of the corporation to call a special meeting of stockholders to be held within 50 days of demand to consider the voting rights of the shares. The right to compel the calling of a special meeting is subject to the satisfaction or waiver of certain conditions, including an undertaking to pay the expenses of the special meeting. If no request for a special meeting is made, the corporation may itself present the question at any stockholders meeting.

If voting rights are not approved at the special meeting or if the acquiror does not deliver an acquiring person statement as required by the statute, then the corporation may, subject to certain conditions and limitations, redeem for fair value any or all of the control shares, except those for which voting rights have previously been approved. Fair value is determined, without regard to the absence of voting rights for the control shares, as of the date of the last control share acquisition by the acquiror or of any meeting of stockholders at which the voting rights of such shares are considered and not approved. If voting rights for control shares are approved at a stockholders meeting and the acquiror becomes entitled to vote a majority of the shares entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the shares as determined for purposes of appraisal rights may not be less than the highest price per share paid by the acquiror in the control share acquisition.
8



The control share acquisition statute does not apply (a) to shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction or (b) to acquisitions approved or exempted by the charter or bylaws of the corporation.

Our bylaws contain a provision that exempts from the control share acquisition statute any and all acquisitions by any person of shares of our stock. This provision may be amended or eliminated at any time in the future.

Subtitle 8

Subtitle 8 of Title 3 of the MGCL permits a Maryland corporation with a class of equity securities registered under the the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and at least three independent directors to elect to be subject, by provision in its charter or bylaws or by a resolution of its board of directors and notwithstanding any contrary provision in the charter or bylaws, to any or all of the following five provisions:
a classified board,
a two-thirds vote requirement for removing a director,
a requirement that the number of directors be fixed only by vote of the directors,
a requirement that a vacancy on the board be filled only by the affirmative vote of a majority of the remaining directors in office and such director shall hold office for the remainder of the full term of the class of directors in which the vacancy occurred and until a successor is elected and qualifies, and
a majority requirement for the calling of a stockholder-requested special meeting of stockholders.  

Pursuant to our charter, we have elected to be subject to the provision of Subtitle 8 that requires that vacancies on the board may be filled only by the remaining directors and for the remainder of the full term of the directorship in which the vacancy occurred. Through provisions in our bylaws unrelated to Subtitle 8, we already (1) vest in the board of directors the exclusive power to fix the number of directors and (2) require, unless called by our chairman, chief executive officer, president or the board of directors, the request of stockholders entitled to cast not less than a majority of the votes entitled to be cast at such meeting to call a special meeting of stockholders if certain procedural requirements are met.

Special Meetings of the Stockholders

Each of our chairman of the board, chief executive officer, president and board of directors has the power to call a special meeting of the stockholders. A special meeting of the stockholders to act on any matter that may properly be brought before a meeting of stockholders will also be called by our secretary upon the written request of the stockholders entitled to cast a majority of all the votes entitled to be cast on such matter at the meeting and containing the information required by our bylaws. The secretary will be required to inform the requesting stockholders of the reasonably estimated cost of preparing and mailing the notice of meeting (including our proxy materials), and the requesting stockholder will be required to pay such estimated cost to the secretary prior to the preparation and mailing of any notice for such special meeting.

Advance Notice of Director Nomination and New Business; Proxy Access

9


Our charter and bylaws provide that, at any annual meeting of stockholders, nominations of individuals for election to the board of directors and proposals of business to be considered by stockholders may be made only (i) pursuant to our notice of the meeting, (ii) by or at the direction of the board of directors, or (iii) by a stockholder who was a stockholder of record at each of (A) the record date with respect to the annual meeting, (B) the time of giving of notice by the stockholder as provided in the advance notice provisions set forth in our bylaws, and (C) the time of the annual meeting (and any postponement or adjournment thereof), who is entitled to vote at the annual meeting in the election of directors or on such other proposed business and who has complied with the advance notice provisions set forth in our bylaws. The stockholder generally must provide notice to the secretary not less than 120 days nor more than 150 days prior to the first anniversary of the date of our proxy statement for the solicitation of proxies for election of directors at the preceding year’s annual meeting.

Only the business specified in our notice of meeting may be brought before any special meeting of stockholders. Our bylaws provide that nominations of individuals for election to our board of directors at a special meeting of stockholders may be made only (i) by or at the direction of our board of directors, (ii) by a stockholder that has requested that a special meeting be called for the purpose of electing directors and provides the information required to request such a meeting under our bylaws, or (iii) provided that the special meeting has been called for the purpose of electing directors, by any stockholder of record at each of (A) the record date with respect to the special meeting, (B) the time of giving of notice provided for in the advance notice provisions set forth in our bylaws and (C) the time of the special meeting (and any postponement or adjournment thereof), who is entitled to vote at the meeting in the election of each individual so nominated and who has complied with the advance notice provisions set forth in our bylaws. Such stockholder will be entitled to nominate one or more individuals, as the case may be, for election as a director if the stockholder’s notice, containing the information required by our bylaws, is delivered to the secretary at our principal executive office not earlier than the 120th day prior to such special meeting and not later than 5:00 p.m., Eastern Time, on the later of (i) the 90th day prior to such special meeting or (ii) the tenth day following the day on which public announcement is first made of the date of the special meeting and any of the nominees proposed by the board of directors to be elected at such meeting.

Our bylaws also include proxy access to allow eligible stockholders to include their own nominee or nominees for director in our proxy materials for an annual meeting of stockholders, along with the candidates nominated by the board of directors. A stockholder, or group of up to 20 stockholders, owning 3% or more of our outstanding common stock continuously for at least three years would be permitted to include director candidates constituting up to 25% of our board of directors (rounded down to the nearest whole number, but not less than two). Under the proxy access procedure, for the stockholders’ notice in respect of the annual meeting of our stockholders to be timely, such notice must be delivered to us not later than the close of business on the 120th day nor earlier than the 150th day prior to the first anniversary of the release date of the proxy materials for the preceding year’s annual meeting of stockholders. The foregoing proxy access right is subject to additional eligibility, procedural and disclosure requirements set forth in our bylaws.

The purpose of requiring stockholders to give advance notice of nominations and other proposals is to afford our board of directors the opportunity to consider the qualifications of the proposed nominees or the advisability of the other proposals and, to the extent considered necessary by our board of directors, to inform stockholders and make recommendations regarding the nominations or other proposals. The advance notice and proxy access procedures also permit a more orderly procedure for conducting stockholder meetings.

Exclusive Forum
10



Our bylaws provide that, unless we consent in writing to the selection of an alternative forum, the Circuit Court for Baltimore City, Maryland, or, if that court does not have jurisdiction, the United States District Court for the District of Maryland, Baltimore Division, shall be the sole and exclusive forum for:
any derivative action or proceeding brought on behalf of our company,
any action asserting a claim of breach of any duty owed by any director or officer or other employee of our company to our company or to the stockholders of our company,
any action asserting a claim against our company or any director or officer or other employee of our company arising pursuant to any provision of the MGCL, our charter or our bylaws, or
any action asserting a claim against our company or any director or officer or other employee of our company that is governed by the internal affairs doctrine.

This exclusive forum provision is intended to apply to claims arising under Maryland state law and would not apply to claims brought pursuant to the Exchange Act or the Securities Act of 1933, or any other claim for which the federal courts have exclusive jurisdiction. This exclusive forum provision will not relieve us of our duties to comply with the federal securities laws and the rules and regulations thereunder, and our stockholders will not be deemed to have waived our compliance with these laws, rules and regulations.

Anti-Takeover Effect of Certain Provisions of Maryland Law and of Our Charter and Bylaws

The restrictions on transfer and ownership of our stock will prohibit any person from acquiring more than 9.9% of outstanding common stock or more than 9.9% of outstanding stock without prior approval of our board of directors. The business combination statute may discourage others from trying to acquire more than 10% of our stock without the advance approval of our board of directors, and may substantially delay or increase the difficulty of consummating any transaction with or change in control of us. Because our board of directors can approve exceptions to the transfer and ownership limits and exempt transactions from the business combination statute, the transfer and ownership limits and the business combination statute will not interfere with a merger or other business combination approved by our board of directors. The power of our board of directors to classify and reclassify unissued common stock or preferred stock, and authorize us to issue classified or reclassified shares, also could have the effect of delaying, deferring or preventing a change in control or other transaction.

These provisions, along with other provisions of the MGCL and our charter and bylaws discussed above, including provisions relating to the removal of directors and the filling of vacancies, the advance notice provisions and the procedures that stockholders will be required to follow to request a special meeting, alone or in combination, could have the effect of delaying, deferring or preventing a proxy contest, tender offer, merger or other change in control that might involve a premium price for shares of our common stock or otherwise be in the best interest of our stockholders, and could increase the difficulty of consummating any offer.  

Transfer Agent and Registrar

The transfer agent and registrar for our common stock is American Stock Transfer & Trust Company, LLC.

Listing

Shares of our common stock are listed on the Nasdaq Global Select Market under the symbol “SBRA.”
11

NOTICE OF STOCK UNIT GRANT

SABRA HEALTH CARE REIT, INC.
2009 PERFORMANCE INCENTIVE PLAN



Name of Grantee:    [●]

Target Number
of Stock Units:        [●]

Date of Grant:        [●]
Vesting:     In general, and with limited exceptions set forth below, your units are subject to two different vesting requirements. The first requirement is a total shareholder return-based requirement. To the extent it is satisfied, your units are subject to time-based vesting. These requirements, and the limited exceptions, are set forth in more detail below.
Performance Vesting Condition. Subject to earlier termination as provided in the Terms and Conditions of Stock Unit Award, your target units are subject to a vesting requirement based on the percentile ranking of the Corporation’s Total Shareholder Return among the Total Shareholder Returns for the stocks comprising the Comparison Group during a performance period beginning on January 1, 2021 and ending on December 31, 2023 (the “Performance Period”), with performance determined with reference to the goals set forth in the table below:
Total Shareholder Return Percentile Rank % of Target # of Units Becoming Earned and Vested
<25%
0%
25%
45%
30%
55%
35%
65%
40%
75%
45%
85%
50%
95%
55%
100%
60%
120%
65%
140%
70%
160%
75%
180%
80%
200%



Except as described below, all of your units will terminate at the end of the Performance Period if the Corporation achieves a Total Shareholder Return percentile ranking for the Performance Period below the threshold percentile listed in the table above. If the Corporation achieves a Total Shareholder Return percentile ranking for the Performance Period between the percentiles listed in the table above, the percentage of your target units that will be subject to the time-based vesting requirements described below will be pro-rated on a straight-line basis between the closest two percentages listed in the table above. The maximum percentage of your target units that may become subject to the time-based vesting requirements described below is the maximum percentage listed in the table above. In addition, and notwithstanding anything in the table listed above to the contrary, if the Corporation’s absolute Total Shareholder Return during the Performance Period is less than zero (0), the maximum percentage of your target units that may become subject to the time-based vesting requirements described below is equal to 100% of your target number of units. Any of your target units that are not eligible for time-based vesting at the end of the Performance Period based on the Corporation’s Total Shareholder Return percentile ranking for the Performance Period will automatically terminate at the end of the Performance Period.
“Total Shareholder Return” means a company’s total shareholder return over the entire Performance Period assuming that any dividends are reinvested in the company’s stock on the payment date, and shall be calculated using (i) the average stock price at the close of regular trading for the relevant stock on the principal exchange on which the relevant stock is listed or traded for the 20-trading-day period ending with the last day on which the applicable exchange is open for trading preceding the first day of the Performance Period, and (ii) the average stock price at the close of regular trading for the relevant stock on the principal exchange on which the relevant stock is listed or traded for the 20-trading-day period ending with the last trading day of the Performance Period.
The “Comparison Group” means each of the companies approved by the Corporation’s Compensation Committee as a comparison company that remains an independent publicly traded REIT for the entire Performance Period.
Change in Control. If a Change in Control (as defined in the Plan) occurs during the Performance Period while any of your target units are outstanding, the Performance Period will be deemed to end on the date of the Change in Control and performance will be measured based on the Corporation’s Total Shareholder Return percentile ranking through the date of the Change in Control.
Continued Service Vesting Condition. Except as provided below in connection with certain terminations of your employment or services, any of your units that become eligible for time-based vesting based on the Corporation’s Total Shareholder Return percentile ranking (including any units becoming eligible in connection with a Change in Control) will become earned and vested if you are employed by or providing services to the Corporation or its subsidiaries on the last day of the normal Performance Period (e.g., any deemed termination of the Performance Period on the date of a Change in Control is ignored for these purposes). If your employment or service terminates for any reason other than
    2



described below prior to the applicable vesting date provided for above, your units shall terminate in accordance with the Terms and Conditions of Stock Unit Award.
Certain Terminations of Employment or Services. If your employment or service with the Corporation or its subsidiaries terminates prior to the end of the Performance Period due to your death or Disability, then the target number of your units then outstanding shall become earned and vested on the date of such termination, and shall be paid in accordance with the Terms and Conditions of Stock Unit Award. If your employment or service with the Corporation or its subsidiaries terminates prior to the end of the Performance Period due to the termination of your employment or service with the Corporation or its subsidiaries either by the Corporation (or subsidiary) without Good Cause or by you for Good Reason, but only if such termination of your employment or services without Good Cause or for Good Reason occurs (i) in connection with a Change in Control and within thirty (30) days before the date of the Change in Control or (ii) on the date of the Change in Control or during the eighteen month period following the date of a Change in Control, then any of your units eligible for time-based vesting in connection with the Change in Control shall become earned and vested on the date of such termination, and shall be paid in accordance with the Terms and Conditions of Stock Unit Award. (In order to effect the foregoing 30-day protection, if your employment or service with the Corporation or its subsidiaries terminates as a result of a termination by the Corporation (or subsidiary) without Good Cause or by you for Good Reason in connection with a Change in Control then, notwithstanding anything to the contrary in the Terms and Conditions of Stock Unit Award, your units shall not terminate until the 31st day after your termination of employment, at which time they shall automatically terminate if a Change in Control does not occur in such 30-day period.) For the avoidance of doubt, (i) if the termination of your employment or services occurs other than in the circumstances and the periods set forth in this paragraph, you will not be entitled to any vesting pursuant to this paragraph, and (ii) your target number of units will become earned and vested upon your termination due to death or Disability prior to the end of the Performance Period regardless of whether the Corporation’s Total Shareholder Return percentile ranking (including any ranking determined in connection with a Change in Control) would result in a number of units becoming earned and vested that is greater than, less than or equal to your target number of units. The terms Disability, Good Cause and Good Reason are used as defined in the Plan.
By signing your name below, you accept this stock unit award and acknowledge and agree that the units are granted under and governed by the terms and conditions of the Sabra Health Care REIT, Inc. 2009 Performance Incentive Plan (the “Plan”) and the Terms and Conditions of Stock Unit Award, both of which are hereby made a part of this document.
“GRANTEE”


_________________________________
Signature
SABRA HEALTH CARE REIT, INC.,
a Maryland corporation
__________________________________
By: Harold W. Andrews, Jr.
Its: Chief Financial Officer
    3



TERMS AND CONDITIONS OF STOCK UNIT AWARD

SABRA HEALTH CARE REIT, INC.
2009 PERFORMANCE INCENTIVE PLAN

1.Grant of Stock Units.
(a)    Award. These Terms and Conditions of Stock Unit Award (these “Terms”) apply to a particular stock unit award (the “Award”) if incorporated by reference in the Notice of Stock Unit Grant (the “Grant Notice”) corresponding to that particular grant. The recipient of the Award identified in the Grant Notice is referred to as the “Grantee.” The effective date of grant of the Award as set forth in the Grant Notice is referred to as the “Date of Grant.” The Award was granted under and subject to the Sabra Health Care REIT, Inc. 2009 Performance Incentive Plan (the “Plan”). The number of shares covered by the Award are subject to adjustment under Section 7.1 of the Plan. Capitalized terms are defined in the Plan if not defined herein. The Award has been granted to the Grantee in addition to, and not in lieu of, any other form of compensation otherwise payable or to be paid to the Grantee. The Grant Notice and these Terms are collectively referred to as the “Award Agreement” applicable to the Award.
(b)    Stock Units. As used herein, a “Stock Unit” is a non-voting unit of measurement which is deemed for bookkeeping purposes to be equivalent in value to one outstanding share of Common Stock of the Corporation. The Stock Units shall be used solely as a device for the determination of any payment to eventually be made to the Grantee if and when such Stock Units vest and become earned pursuant to Section 2. The Stock Units create no fiduciary duty to the Grantee and shall create only a contractual obligation on the part of the Corporation to make payments, subject to vesting and the other terms and conditions hereof, as provided in Section 6 below. The Stock Units shall not be treated as property or as a trust fund of any kind. No assets have been secured or set aside by the Corporation with respect to the Award and, if amounts become payable to the Grantee pursuant to this Award Agreement, the Grantee’s rights with respect to such amounts shall be no greater than the rights of any general unsecured creditor of the Corporation.
2.Vesting. As set forth in the Grant Notice, this Award shall vest and become earned in percentage installments, subject to earlier termination or acceleration and subject to adjustment as provided herein and in the Plan. Except as expressly provided in the Grant Notice, no portion of the Award will be earned or vested (regardless of performance) unless the applicable time-based vesting requirement is satisfied. The Award may be subject to time and/or performance-based vesting conditions, as set forth in the Grant Notice. Continued employment will not entitle the Grantee to any proportionate vesting or avoid or mitigate a termination of rights or benefits in connection with the end of a performance period to the extent the related performance condition(s) are not satisfied.
3.Continuance of Employment/Service Required; No Employment/Service Commitment. The vesting schedule requires continued employment or service through each applicable vesting date as a condition to the vesting of the applicable installment of the Award and the rights and benefits under this Award Agreement. Employment or service for only a portion of the vesting period, even if a substantial portion, will not entitle the Grantee to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a termination of employment or services as provided in Section 7 below or under the Plan.


Nothing contained in this Award Agreement or the Plan constitutes a continued employment or service commitment by the Corporation or any of its Subsidiaries, affects the Grantee’s status, if he or she is an employee, as an employee at will who is subject to termination without cause, confers upon the Grantee any right to remain employed by or in service to the Corporation or any Subsidiary, interferes in any way with the right of the Corporation or any Subsidiary at any time to terminate such employment or service, or affects the right of the Corporation or any Subsidiary to increase or decrease the Grantee’s other compensation. Nothing in this paragraph, however, is intended to adversely affect any independent contractual right of the Grantee under any written employment agreement with the Corporation.
4.Dividend and Voting Rights.
(a)    Limitations on Rights Associated with Units. The Grantee shall have no rights as a stockholder of the Corporation, no dividend rights (except as expressly provided in Section 4(b) hereof) and no voting rights with respect to the Stock Units or any shares of Common Stock issuable in respect of such Stock Units, until shares of Common Stock are actually issued to and held of record by the Grantee. No adjustments will be made for dividends or other rights of a holder for which the record date is prior to the date of issuance of the stock certificate evidencing the shares.
(b)    Dividend Equivalent Reinvestment. As of each date that the Corporation pays an ordinary cash dividend on its outstanding Common Stock for which the related record date occurs after the Date of Grant and prior to the date all Stock Units subject to the Award have either been paid or have terminated, the Corporation shall credit the Grantee with an additional number of Stock Units equal to (a) the amount of the ordinary cash dividend paid by the Corporation on a single share of Common Stock on that date, multiplied by (b) the number of Stock Units subject to the Award outstanding and unpaid as of such record date (including any Stock Units previously credited under this Section 4(b) and with such total number subject to adjustment pursuant to Section 7.1 of the Plan), divided by (c) the closing price of a share of Common Stock on that date. Any Stock Units credited pursuant to the foregoing provisions of this Section 4(b) will be subject to the same vesting, payment, termination and other terms, conditions and restrictions as the original Stock Units to which they relate. No crediting of Stock Units will be made pursuant to this Section 4(b) with respect to any Stock Units which, as of the related record date, have either been paid or have terminated.
5.Restrictions on Transfer. Prior to the time the Stock Units are vested and paid, neither the Stock Units comprising the Award nor any interest therein or amount payable in respect thereof may be sold, assigned, transferred, pledged or otherwise disposed of, alienated or encumbered, either voluntarily or involuntarily, other than by will or the laws of descent and distribution.
6.Timing and Manner of Payment of Stock Units. The Stock Units subject to this Award Agreement shall be paid in an equivalent number of whole shares of Common Stock (with any fractional Stock Units credited in respect of the Stock Units that are paid initially rounded up to the nearest whole number of shares of Common Stock and subsequently rounded down to the nearest whole number of shares of Common Stock as necessary to arrive at the appropriate whole number of shares in the aggregate) pursuant to the terms of this Section 6. Any Stock Units subject to this Award Agreement that become earned and vested pursuant to the vesting schedule set forth in the Grant Notice shall be paid on the first to occur of (1) the fifth calendar year following the calendar year in which the Date of Grant occurs, (2) within thirty (30) days after the first anniversary of the date of the Grantee’s Separation from Service, (3) within thirty (30) days after the date of the Grantee’s Disability and (4) within thirty (30) days after the date of the Grantee’s death. In the event there is a Change in Control prior to the time that all Stock Units subject to this Award Agreement have been paid, the following rules shall apply (A) if the Change in
    2


Control occurs on or after the last day of the Performance Period, any Stock Units that have become earned and vested pursuant to the time- and performance-based vesting schedule set forth in the Grant Notice shall be paid within thirty (30) days after the Change in Control, and (B) if the Change in Control occurs before the last day of the Performance Period, the Stock Units shall be paid as provided for in the preceding sentence, provided that if any Stock Units become payable as a result of the Grantee’s Separation from Service within the two year period following the date of the Change in Control, the Stock Units shall be paid within thirty (30) days after the date of the Grantee’s Separation from Service instead. Except for any payment made on or following the date of a Change in Control or the Grantee’s death or Disability, in no event shall any Stock Units be paid earlier than the first anniversary of the applicable vesting date. For purposes of this Section 6, references to a Change in Control shall mean a change in the ownership or effective control of the Corporation, or in the ownership of a substantial portion of the assets of the Corporation, within the meaning of Section 409A of the Code. Each such payment of Stock Units shall be subject to the tax withholding provisions of Section 9 hereof and Section 8.5 of the Plan and subject to adjustment as provided in Section 7.1 of the Plan and shall be in complete satisfaction of such earned and vested Stock Units. The Grantee or any other person entitled under the Plan to receive a payment of shares of Common Stock shall deliver to the Corporation any representations or other documents or assurances required pursuant to Section 8.1 of the Plan. The Grantee shall have no rights to designate the calendar year in which the Stock Units are paid. Notwithstanding the foregoing provisions of this Section 6, the Administrator may provide for payment of any Stock Units in accordance with the requirements of Treasury Regulation 1.409A-3(j)(4)(ix)(A), (B) or (C) promulgated under Section 409A of the Code (or any similar successor provision), which regulation generally provides that a deferred compensation arrangement may be terminated in limited circumstances following a dissolution or change in control of the Corporation.
7.Effect of Termination of Employment or Services. Except as otherwise provided in the Grant Notice, the Grantee’s Stock Units shall terminate to the extent such units have not become earned and vested upon the first date the Grantee is no longer employed by or providing services to the Corporation or one of its Subsidiaries, regardless of the reason for the termination of such employment or services, whether with or without cause, voluntarily or involuntarily. If the Grantee is employed by a Subsidiary and that entity ceases to be a Subsidiary, such event shall be deemed to be a termination of employment of the Grantee for purposes of this Award Agreement, unless the Grantee otherwise continues to be employed by the Corporation or another of its Subsidiaries following such event. If the Grantee is not an employee or director of the Corporation or a Subsidiary, the Administrator shall be the sole judge for purposes of this Award Agreement whether the Grantee continues to render services to the Corporation or a Subsidiary and the date, if any, upon which such services shall be deemed to have terminated. The Corporation shall have no obligation as to any Stock Units that are terminated pursuant to the Grant Notice or this Section 7.
8.Adjustments Upon Specified Events. Upon the occurrence of certain events relating to the Corporation’s stock contemplated by Section 7.1 of the Plan, the Administrator will make adjustments if appropriate in the number of Stock Units contemplated hereby and the number and kind of securities that may be issued in respect of the Award.
9.Tax Withholding. The Corporation shall reasonably determine the amount of any federal, state, local or other income, employment, or other taxes which the Corporation or any of its affiliates may reasonably be obligated to withhold with respect to the grant, vesting, payment or other event with respect
    3


to the Stock Units. Except for any employment taxes becoming due as a result of the vesting of any Stock Units, the Corporation shall withhold a sufficient number of shares of Common Stock in connection with the vesting or payment of the Stock Units at the then fair market value of the Common Stock (determined either as of the date of such withholding or as of the immediately preceding trading day, as determined by the Corporation in its discretion) to satisfy any applicable withholding obligations that arise with respect to the vesting or payment of such Stock Units. Except for any employment taxes becoming due as a result of the vesting of any Stock Units, the Corporation may take such action(s) without notice to the Grantee and shall remit to the Grantee the balance of any proceeds from withholding such shares in excess of the amount reasonably determined to be necessary to satisfy such withholding obligations. The Grantee shall have no discretion as to the satisfaction of tax withholding obligations in such manner. Upon the vesting of any Stock Units or if any withholding event occurs with respect to the Stock Units other than the vesting or payment of such units, or if the Corporation for any reason does not satisfy the withholding obligations with respect to the vesting or payment of the Stock Units as provided above in this Section 9, the Corporation shall be entitled to require a cash payment by or on behalf of the Grantee and/or to deduct from other compensation payable to the Grantee the amount of any such withholding obligations.
10.Notices. Any notice to be given under the terms of this Award Agreement shall be in writing and addressed to the Corporation at its principal office to the attention of the Secretary, and to the Grantee at the Grantee’s last address reflected on the Corporation’s records, or at such other address as either party may hereafter designate in writing to the other. Any such notice shall be given only when received, but if the Grantee is no longer an employee of the Corporation or one of its Subsidiaries, shall be deemed to have been duly given by the Corporation when enclosed in a properly sealed envelope addressed as aforesaid, registered or certified, and deposited (postage and registry or certification fee prepaid) in a post office or branch post office regularly maintained by the United States Government.
11.Plan. The Award and all rights of the Grantee under this Award Agreement are subject to, and the Grantee agrees to be bound by, all of the terms and conditions of the provisions of the Plan, incorporated herein by this reference. The Grantee agrees to be bound by the terms of the Plan and of this Award Agreement. The Grantee acknowledges reading and understanding the Plan, the Prospectus for the Plan, and this Award Agreement. Unless otherwise expressly provided in other sections of this Award Agreement, provisions of the Plan that confer discretionary authority on the Board or the Administrator do not (and shall not be deemed to) create any rights in the Grantee unless such rights are expressly set forth herein or are otherwise in the sole discretion of the Board or the Administrator so conferred by appropriate action of the Board or the Administrator under the Plan after the date hereof.
12.Entire Agreement. This Award Agreement and the Plan together constitute the entire agreement and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. The Plan and this Award Agreement may be amended pursuant to Section 8.6 of the Plan. Such amendment to this Award Agreement must be in writing and signed by the Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to the extent such waiver does not adversely affect the interests of the Grantee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof.
    4


13.Counterparts. This Award Agreement may be executed simultaneously in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.
14.Section Headings. The section headings of this Award Agreement are for convenience of reference only and shall not be deemed to alter or affect any provision hereof.
15.Governing Law. This Award Agreement and the rights of the parties hereunder with respect to the Award shall be governed by and construed and enforced in accordance with the laws of the State of Maryland without regard to conflict of law principles thereunder.
16.Clawback Policy. The Stock Units are subject to the terms of the Corporation’s recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions of applicable law, any of which could in certain circumstances require repayment or forfeiture of the Stock Units or any shares of Common Stock or other cash or property received with respect to the Stock Units (including any value received from a disposition of the shares acquired upon payment of the Stock Units).
17.Six-Month Delay. Notwithstanding any provision of these Terms to the contrary, if the Grantee is a “specified employee” as defined in Section 409A of the Code, the Grantee shall not be entitled to any payment with respect to the Award in connection with the Grantee’s Separation from Service until the date which is six (6) months after the Grantee’s Separation from Service. Any amounts otherwise payable to the Grantee following the Grantee’s Separation from Service that are not so paid by reason of this Section 17 shall be paid as soon as practicable for the Corporation (and in all events within thirty (30) days) after the date that is six (6) months after the Grantee’s Separation from Service. The provisions of this Section 17 shall only apply if, and to the extent, required to comply with Section 409A of the Code.
18.Construction. It is intended that the terms of the Award will not result in the imposition of any tax liability pursuant to Section 409A of the Code. This Award Agreement shall be construed and interpreted consistent with that intent.
    5


 


 


 


 


 


 


 


 


 
EXECUTION VERSION [[5258451]] SABRA HEALTH CARE REIT, INC. $400,000,000 of Shares of Common Stock (par value $0.01 per share) Equity Distribution Agreement December 11, 2019 Barclays Capital Inc. 745 Seventh Avenue New York, New York 10019 BMO Capital Markets Corp. 3 Times Square, 25th Floor New York, New York 10036 BofA Securities, Inc. One Bryant Park New York, New York 10036 Citigroup Global Markets Inc. 388 Greenwich Street New York, New York 10013 Credit Agricole Securities (USA) Inc. 1301 Avenue of the Americas New York, New York 10019 Fifth Third Securities, Inc. 424 Church Street, Suite 600 Nashville, Tennessee 37219 The Huntington Investment Company 41 South High Street Columbus, Ohio 43215 Jefferies LLC 520 Madison Avenue New York, New York 10022 KeyBanc Capital Markets Inc. 127 Public Square, 4th Floor Cleveland, Ohio 44114 Mizuho Securities USA LLC


 
2 [[5258451]] 320 Park Avenue – 12th Floor New York, New York 10022 Morgan Stanley & Co. LLC 1585 Broadway New York, New York 10036 MUFG Securities Americas Inc. 1221 Avenue of the Americas, 6th Floor New York, New York 10020 Raymond James & Associates, Inc. 880 Carillon Parkway St. Petersburg, Florida 33716 RBC Capital Markets, LLC 200 Vesey Street New York, New York 10281 Scotia Capital (USA) Inc. 250 Vesey Street, 24th Floor New York, New York 10281 SMBC Nikko Securities America, Inc. 277 Park Avenue, 5th Floor New York, New York 10172 Stifel, Nicolaus & Company, Incorporated 501 North Broadway Saint Louis, Missouri 63102 SunTrust Robinson Humphrey, Inc. 3333 Peachtree Rd., NE, 11th Floor Atlanta, Georgia 30326 Wells Fargo Securities, LLC 375 Park Avenue New York, New York 10152 As Agents Barclays Bank PLC 745 Seventh Avenue New York, New York 10019 Bank of Montreal


 
3 [[5258451]] 3 Times Square, 25th Floor New York, New York 10036 Bank of America, N.A. One Bryant Park New York, New York 10036 Citibank, N.A. 388 Greenwich Street New York, New York 10013 Crédit Agricole Corporate and Investment Bank c/o Credit Agricole Securities (USA) Inc., as agent 1301 Avenue of the Americas New York, New York 10019 Jefferies LLC 520 Madison Avenue New York, New York 10022 KeyBanc Capital Markets Inc. 127 Public Square, 4th Floor Cleveland, Ohio 44114 Morgan Stanley & Co. LLC 1585 Broadway New York, New York 10036 MUFG Securities EMEA plc Ropemaker Place 25 Ropemaker Street London EC2Y 9AJ, United Kingdom Raymond James & Associates, Inc. 880 Carillon Parkway St. Petersburg, Florida 33716 Royal Bank of Canada 200 Vesey Street New York, New York 10281 The Bank of Nova Scotia 250 Vesey Street, 24th Floor New York, New York 10281 Wells Fargo Bank, National Association 375 Park Avenue


 
4 [[5258451]] New York, New York 10152 As Forward Purchasers Ladies and Gentlemen: SABRA HEALTH CARE REIT, INC., a Maryland corporation (the “Company”) confirms its agreement (this “Agreement”) with each of Barclays Capital Inc., BMO Capital Markets Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., The Huntington Investment Company, Jefferies LLC, KeyBanc Capital Markets Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Raymond James & Associates, Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Stifel, Nicolaus & Company, Incorporated, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC, each as agent, forward seller and/or as principal under any Terms Agreement (as defined in Section 3 below) (in any such capacity, each an “Agent”, and collectively, the “Agents”) and Barclays Bank PLC, Bank of Montreal, Bank of America, N.A., Citibank, N.A., Crédit Agricole Corporate and Investment Bank c/o Credit Agricole Securities (USA) Inc., as agent, Jefferies LLC, KeyBanc Capital Markets Inc., Morgan Stanley & Co. LLC, MUFG Securities EMEA plc, Raymond James & Associates, Inc., Royal Bank of Canada, The Bank of Nova Scotia and Wells Fargo Bank, National Association, each as forward purchaser (in such capacity, each a “Forward Purchaser”, and collectively, the “Forward Purchasers”). For purposes of clarity, it is understood and agreed by the parties hereto that, if Shares (as defined below) are offered or sold through any Agent acting as Forward Seller (as defined below), then such Agent, as Forward Seller, shall be acting solely in its capacity as sales agent for such Forward Purchaser and not as sales agent for the Company with respect to the offering and sale of such Shares, and, except in cases where this Agreement expressly refers to an Agent acting as sales agent for the Company or unless otherwise expressly stated or the context otherwise requires, references in this Agreement to any Agent acting as sales agent shall also be deemed to apply to such Agent when acting as forward seller, mutatis mutandis. It is also understood and agreed by the parties hereto that, if Shares are offered or sold through any Agent acting as sales agent for the Company, then such Agent shall be acting solely in its capacity as sales agent for the Company, and not as sales agent for any Forward Purchaser, with respect to the offering and sale of such Shares. The Company proposes to issue, offer and sell to or through the Agents, in the manner and subject to the terms and conditions set forth herein of up to $400,000,000 aggregate gross proceeds (the “Maximum Amount”) of shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”) (including shares of Common Stock borrowed and sold pursuant to a Confirmation (as defined below), the “Shares”). The Company agrees that whenever it determines to sell Shares directly to one or more Agents as principal, it will enter into a separate agreement (a “Terms Agreement”), relating to such sale in accordance with Section 3(g) of this Agreement, in substantially the form attached hereto as Exhibit 3(g). For the avoidance of doubt, any references in this Agreement to “Shares” shall not include any Confirmation Shares (as defined below). The Company may also enter into one or more forward stock purchase transactions with any of the Forward Purchasers as set forth in separate forward sale transaction


 
5 [[5258451]] confirmations, each in substantially the form attached hereto as Exhibit 3(b) (each, a “Confirmation” and, collectively, the “Confirmations”). In connection therewith, the Company and each Forward Purchaser understand that the applicable Forward Purchaser or an affiliate thereof will attempt to borrow and then offer, through the applicable Forward Seller (which shall be either the same entity as the Forward Purchaser or an affiliate of the Forward Purchaser), the applicable Placement Shares (as defined below) for sale on the terms set forth in this Agreement (any such Placement Shares, “Forward Hedge Shares”). Any shares of Common Stock to be delivered by the Company to the Forward Purchaser in settlement of all or any portion of the Company’s obligations under any Confirmation are hereinafter referred to as “Confirmation Shares”. The issuance and sale of Shares in accordance with this Agreement will be effected pursuant to the Registration Statement (as defined below) that became automatically effective when filed by the Company with the Securities and Exchange Commission (the “Commission”) on December 11, 2019, although nothing in this Agreement shall be construed as requiring the Company to use the Registration Statement to issue Shares. The Company, each Agent and each Forward Purchaser agree as follows: 1. Issuance and Sale of Shares. The Company has prepared and filed, in accordance with the provisions of the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (collectively, the “Securities Act”), with the Commission a registration statement on Form S-3 (File No. 333-235449), which contains a base prospectus, relating to certain securities, including the Shares to be issued from time to time by the Company, and which incorporates by reference documents that the Company has filed or will file in accordance with the provisions of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (collectively, the “Exchange Act”). The Company has prepared a prospectus supplement specifically relating to the Shares (the “Prospectus Supplement”) to the base prospectus included as part of such registration statement. The Company will furnish to the Agents and Forward Purchasers, for use by the Agents and Forward Purchasers, copies of the prospectus included as part of such registration statement, as amended and as supplemented by the Prospectus Supplement, relating to the Shares. Except where the context otherwise requires, such registration statement, including all documents filed as part thereof or incorporated by reference therein, and including any information contained in or incorporated by reference in a Prospectus (as defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the Securities Act or deemed to be a part of such registration statement pursuant to Rule 430B or 430C under the Securities Act, is called the “Registration Statement”. The base prospectus, including all documents incorporated therein by reference, included in the Registration Statement, as it may be supplemented by the Prospectus Supplement, in the form in which such prospectus and/or Prospectus Supplement have most recently been filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act, together with any issuer free writing prospectus (as defined below), is called the “Prospectus”. As used herein, “issuer free writing prospectus” has the meaning set forth in Rule 433 under the Securities Act, and “free writing prospectus” has the meaning set forth in Rule 405 under the Securities Act. All references in this Agreement to (i) the Registration Statement or


 
6 [[5258451]] the Prospectus, or any amendments or supplements to any of the foregoing, shall include any copy thereof filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval system (or any successor system) (“EDGAR”) and (ii) the Prospectus shall be deemed to include the “electronic Prospectus” (as defined below) provided for use in connection with the offering of the Shares as contemplated by Section 7(y) of this Agreement. 2. Placements. (a) Each time that the Company wishes to issue and sell Shares hereunder (each, a “Placement”), it will notify an Agent (and an affiliated Forward Purchaser, if applicable) selected by the Company to sell certain Shares either (i) on behalf of the Company as sales agent (such Agent, in such capacity, the “Direct Seller”) or (ii) on behalf of the applicable Forward Purchaser (a “Placement Forward Purchaser”) as forward seller (such Agent, in such capacity, the “Forward Seller”), as instructed by the Company by email notice or other method mutually agreed to in writing by the Company and the applicable Direct Seller or Forward Seller and Forward Purchaser, as applicable, containing the parameters in accordance with which it desires the Shares to be sold (such notice, a “Notice”), which shall specify whether (x) such Shares will be sold through the Direct Seller, as sales agent (a “Direct Sale”) in accordance with Section 2(a) below or (y) Forward Hedge Shares will be borrowed by or on behalf of the Placement Forward Purchaser and sold through the Forward Seller, as sales agent and forward seller, in connection with hedging a forward stock purchase transaction pursuant to a Confirmation (a “Forward Sale”) in accordance with Section 3(b) below. As used herein, “Placement Agent” shall refer to the Direct Seller or the Forward Seller, as applicable. The Notice, forms of which are attached hereto as Schedules 1-A (Direct Instruction Notice) and 1-B (Forward Instruction Notice), shall at a minimum include (I) the maximum number of Shares to be issued and sold, or with respect to a Forward Sale, borrowed and sold (in each case, the “Placement Shares”), which number may instead be listed as an amount of aggregate gross proceeds, (II) the Trading Day(s) (as defined below) on which Placement Shares subject to such Placement are intended to be sold (each, a “Purchase Date”), (III) any limitation on the number of Placement Shares that may be sold on any single Trading Day and (IV) any minimum price below which Shares shall not be sold. With respect to a Forward Sale, such Notice shall also include, for purposes of (and as defined under) the related Confirmation, the proposed input in the definition of “Maturity Date”, “Hedge Completion Date”, percentage for purposes of the “Initial Forward Price”, “Spread”, “Initial Stock Loan Rate”, “Minimum Settlement Shares”, “Maximum Stock Loan Rate”, “Forward Price Reduction Dates” and “Forward Price Reduction Amounts”; provided, however, that the Company shall not deliver a Notice in respect of a proposed Forward Sale if the delivery of such Notice would result in (I) the sum of (1) the number of Confirmation Shares issued under all Confirmations that have settled as of the contemplated date of delivery, (2) the aggregate “Share Cap” (as defined in each Confirmation) under all Confirmations outstanding as of the contemplated date of delivery that have not settled and (3) the proposed


 
7 [[5258451]] “Share Cap” for the Confirmation related to such Notice exceeding (II) 19.99% of the number of shares of Common Stock outstanding as of the date of this Agreement. Notwithstanding the above, the Company shall not deliver a Notice to any Agent or Forward Purchaser, or execute a Confirmation or Terms Agreement with any Forward Purchaser or Agent if, at or after any Representation Date, the Agents and Forward Purchasers have not received the certificate required under Section 7(n), the opinions required under Section 7(o), the comfort letters required under Sections 7(p)(i) and 7(p)(ii) and the opinion required under Section 9(f), with respect to such Representation Date. The Notice shall originate from the Company and be sent by any of the individuals from the Company set forth on Schedule 2 attached hereto (with a copy to each of the other individuals from the Company listed on such schedule), and shall be addressed to each of the individuals from such Placement Agent (and the Placement Forward Purchaser, if applicable) named in such Notice, as set forth on Schedule 2 (as such Schedule 2 may be amended from time to time). With respect to a Direct Sale, if the terms of a Notice contemplate that Placement Shares shall be sold on more than one Purchase Date, then the Company and such Placement Agent shall mutually agree to such additional terms and conditions as they deem necessary in respect of such multiple Purchase Dates, and such additional terms and conditions shall be set forth in the relevant Notice and confirmed by the relevant Placement Notice (as defined below) and be binding to the same extent as any other terms contained therein. (b) Any Notice with respect to a Direct Sale shall be effective as to a Direct Seller and the Company only upon receipt and confirmation of acceptance in writing by such Direct Seller to the Company of the terms of such Placement Notice by any means permissible under Section 14 (including by email) (a “Direct Acceptance”). With respect to a Notice delivered by the Company in connection with a Forward Sale, the Placement Forward Purchaser and the Forward Seller (each acting in its sole discretion) shall promptly, and in any event prior to the opening of trading on the Trading Day following the Trading Day on which such Notice was received, notify the Company that it chooses to (x) accept the terms proposed in such Notice, (y) decline to participate in the proposed Forward Sale or (z) propose an amended notice setting forth the terms upon which the Placement Forward Purchaser and the Forward Seller would participate in the proposed Forward Sale (such amended notice, an “Amended Notice”); provided, however, that in the case of clause (z), the Company may accept or reject the terms of such Amended Notice in its sole discretion no later than on the Trading Day following the Trading Day on which such Amended Notice was delivered (a Notice accepted by the Forward Seller and the Placement Forward Purchaser or Amended Notice accepted by the Company in accordance with this sentence, a “Forward Instruction Notice”). Promptly upon the acceptance of a Forward Instruction Notice (a “Forward Acceptance”) (and in any event prior to the opening of trading on the immediately following Trading Day), the Company and the Placement Forward Purchaser shall enter into a Confirmation substantially in the form of Exhibit 3(b) hereto and consistent with such Forward Instruction Notice. As used herein, a “Placement Notice” shall refer to a Notice with respect


 
8 [[5258451]] to a Direct Sale accepted by a Direct Acceptance or a Forward Instruction Notice, as applicable. As used herein, a “Placement Acceptance” shall refer to a Direct Acceptance or Forward Acceptance, as applicable. (c) Upon a Placement Acceptance, the Placement Notice shall be effective as to such Placement Agent and the Company unless and until (i) the entire amount of the Placement Shares have been sold, (ii) the Company, the Placement Agent or, if applicable, the Placement Forward Purchaser suspends, cancels or terminates the Placement Notice, (iii) the Company issues a subsequent Placement Notice to the Placement Agent (and the Placement Forward Purchaser, if applicable) with parameters superseding those of the earlier dated Placement Notice; (iv) the Placement Notice or this Agreement has been terminated under the provisions of Section 13 or (v) with respect to a Forward Sale, the entry into the relevant Confirmation. The suspension, cancellation or termination of a, or the issuance of a subsequent, Placement Notice as set forth in the prior sentence shall not affect or impair the Placement Agent’s or, if applicable, the Placement Forward Purchaser’s respective rights or obligations with respect to Placement Shares sold or borrowed and sold under such Placement Notice prior to such suspension, cancellation or termination (including with respect to Placement Shares sold that have not yet settled and, in the case of any Shares borrowed by or on behalf of the Placement Forward Purchaser and sold by or through a Placement Agent in connection with a Forward Instruction Notice, the obligation to enter into the resulting Confirmation). The parties agree that no such notice under this Section shall be effective against another party to this Agreement unless it is made in writing (including by email) by one of the individuals named on Schedule 2 as being an authorized agent for notices in respect of such party, to one of the individuals named on Schedule 2 as being an authorized agent for notices with respect to such other party (as such Schedule 2 may be amended from time to time) (the foregoing, the “Notice Principles”). (d) The amount of compensation to be paid by the Company to the Agents in connection with a Direct Sale of the Placement Shares shall be determined based on a rate to be agreed upon by the Company and the Agents, and shall be disbursed in accordance with Section 5(a) or as otherwise agreed by the Company and the Agents. The compensation described in the previous sentence shall not apply (i) when an Agent acts as principal pursuant to a Terms Agreement, in which case the Company may sell Shares to such Agent as principal at a price agreed upon in such Terms Agreement or (ii) when an Agent acts as forward seller pursuant to a Forward Sale, in which case the compensation payable with respect to the sale of Forward Hedge Shares shall be paid by the Company exclusively through the determination of “Initial Forward Price” under the applicable Confirmation. (e) Under no circumstances shall the Company cause or request the offer or sale of any Placement Shares at a price lower than the minimum price authorized from time to time by the Company’s board of directors or duly authorized committee thereof and notified to the Agents in writing, nor shall the Company cause or


 
9 [[5258451]] request the offer or sale of any Placement Shares in a number or with an aggregate gross or net sales price in excess of the number or aggregate gross or net sales price, as the case may be, authorized from time to time to be issued and sold under this Agreement, any Terms Agreement or any Confirmation, in each case by the Company’s board of directors or duly authorized committee thereof, or in a number in excess of the number of Shares approved for listing on the Exchange (as defined below), or in excess of the number or amount of Shares available for issuance on the Registration Statement. The Agents and the Forward Purchasers shall have no responsibility for maintaining records with respect to Shares or Confirmation Shares available for sale under the Registration Statement or approved for listing on the Exchange or for determining the number or aggregate gross or net sales price of Shares or Confirmation Shares duly authorized by the Company. (f) It is expressly acknowledged and agreed that none of the Company, any Agent or any Forward Purchaser will have any obligation whatsoever with respect to a Placement or any Shares unless and until (i) with respect to a Direct Sale, the Company delivers a Notice, and the applicable Placement Agent accepts the Notice through a Direct Acceptance, (ii) with respect to a Forward Sale, the Company and a Forward Purchaser enter into a Confirmation pursuant to a Forward Instruction Notice or (iii) with respect to a sale directly to an Agent as principal, the Company and such Agent enter into a Terms Agreement, and then only upon the terms specified in such Placement Notice, Confirmation or Terms Agreement, as applicable, and in this Agreement. In the event of a conflict between the terms of this Agreement and the terms of a Placement Notice, the terms of the Placement Notice will control. In the event of a conflict between the terms of this Agreement and the terms of a validly executed Confirmation, the terms of the Confirmation will control. In the event of a conflict between the terms of this Agreement and the terms of a validly executed Terms Agreement, the terms of the Terms Agreement will control. (g) The Company agrees that any offer to sell Shares, any solicitation of an offer to buy Shares or any sales of Shares shall only be effected by or through one Agent, acting as Direct Seller or Forward Seller, as applicable, on any Purchase Date. The Company shall in no event request that more than one Direct Seller or Forward Seller, as applicable, offer or sell Shares on the same Purchase Date. 3. Sale of Placement Shares by the Agents (a) Upon the basis of the representations and warranties and subject to the terms and conditions herein set forth, upon the Company’s issuance of a Notice to a Direct Seller with respect to a Direct Sale, receipt of which is promptly confirmed by such Direct Seller through a Direct Acceptance, and unless the sale of the Placement Shares described therein has been declined, suspended, canceled or otherwise terminated in accordance with the terms of this Agreement, the Direct Seller, for the period specified in such Notice, will use its commercially reasonable efforts consistent with its normal trading and sales practices and


 
10 [[5258451]] applicable state and federal laws, rules and regulations and the rules of the Nasdaq Global Select Market (the “Exchange”), to sell such Placement Shares up to the amount specified in such Notice, and otherwise in accordance with the terms of such Notice. For the purposes hereof, “Trading Day” means (i) with respect to Direct Sales, any day on which the Common Stock is traded on the Exchange, and (ii) with respect to Forward Sales, a Scheduled Trading Day as defined in the related Confirmation. (b) Upon the basis of the representations and warranties and subject to the terms and conditions herein set forth, upon the Company’s issuance of a Notice to a Forward Seller and Placement Forward Purchaser with respect to a Forward Sale, which is promptly amended as necessary and agreed among the Company, Forward Seller and Placement Forward Purchaser through a Forward Acceptance and execution of a Confirmation, and unless the sale of the Placement Shares described therein has been declined, suspended, canceled or otherwise terminated in accordance with the terms of this Agreement or (x) an event that would permit the Placement Forward Purchaser to designate a “Termination Settlement Date” or an “Early Termination Date” (as each such term is defined in the relevant Confirmation) under, and pursuant to the provisions of Section 11 of the relevant Confirmation or (y) a “Bankruptcy Termination Event” (as such term is defined in the relevant Confirmation) has occurred, (i) the Placement Forward Purchaser (or agent thereof) will use its commercially reasonable efforts consistent with its normal trading and sales practices for similar transactions and applicable state and federal laws, rules and regulations and the rules of the Exchange, to borrow the number of Placement Shares up to the amount specified in the Forward Instruction Notice and (ii) the Forward Seller, for the period specified in the Forward Instruction Notice, will use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable state and federal laws, rules and regulations and the rules of the Exchange, to sell such borrowed Placement Shares up to the amount specified in the Forward Instruction Notice, and otherwise in accordance with the terms of such Forward Instruction Notice and Confirmation. (c) With respect to Direct Sales, the Direct Seller will provide written confirmation to the Company no later than the opening of the Trading Day immediately following the Trading Day on which it has made sales of Placement Shares hereunder setting forth the number of Placement Shares sold on such day, the prices at which such Placement Shares were sold, the aggregate gross proceeds from such sales, the compensation payable by the Company to the Direct Seller pursuant to Section 2(c) with respect to such sales, an itemization of any deductions made by the Direct Seller (as set forth in Section 5(a)) for Transaction Fees (as defined below) payable in respect of such sales and the Net Proceeds (as defined below) payable to the Company. (d) With respect to Forward Sales, the Forward Seller or the Placement Forward Purchaser will provide written notice to the Company no later than the Trading Day immediately following the final Trading Day on which sales of Forward Hedge Shares pursuant to a Confirmation occur setting forth the “Hedge


 
11 [[5258451]] Completion Date” (as defined in the related Confirmation), the aggregate number of borrowed Placement Shares sold through the Forward Seller as Forward Hedge Shares (as of such “Hedge Completion Date”, the “Base Amount” for each such Confirmation) and the “Initial Forward Price” under the applicable Confirmation. (e) Unless otherwise set forth in the Placement Notice, the Placement Agent may sell Placement Shares by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) of the Securities Act, including, without limitation, sales made directly on the Exchange, on any other existing trading market for the Common Stock or to or through a market maker (which may include block transactions). (f) With prior consent of the Company, and subject to the terms of the Placement Notice, the Placement Agent may also sell Placement Shares in privately negotiated transactions. (g) The Company may also offer to sell Shares directly to an Agent, as principal, in which event such parties will enter into a separate agreement (each, a “Terms Agreement”) in substantially the form of Exhibit 3(g) hereto (with such changes thereto as may be agreed upon by the Company and such Agent from time to time), relating to such sale. Any sales of Shares pursuant to a Terms Agreement will be made in accordance with the terms of this Agreement and the applicable Terms Agreement. The commitment of an Agent to purchase Shares pursuant to any Terms Agreement shall be deemed to have been made on the basis of the representations and warranties of the Company contained herein and shall be subject to the terms and conditions herein set forth. (h) The Company acknowledges and agrees that (i) there can be no assurance that any Agent will be successful in selling Placement Shares as sales agent or that any Forward Purchaser or any of its affiliates will be successful in borrowing and selling Placement Shares through the applicable Forward Seller and (ii) no Placement Agent, Forward Purchaser or affiliate thereof will incur any liability or obligation to the Company or any other person or entity if it does not sell Placement Shares (whether acting as Direct Seller or as Forward Seller) for any reason other than a failure by a Placement Agent, Forward Purchaser or affiliate thereof to use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable law and regulations to borrow, if applicable, and sell such Placement Shares as required under this Section 3, and no Agent shall be under any obligation to purchase Shares on a principal basis pursuant to this Agreement, except as may otherwise be agreed upon by such Agent and the Company in a Terms Agreement or pursuant to a Confirmation. (i) The aggregate number of Shares that may be sold pursuant to this Agreement and any Terms Agreement shall not exceed the Maximum Amount. Notwithstanding anything to the contrary contained herein, the parties hereto agree that compliance with the limitation set forth in this paragraph on the number of Shares issued and sold under this Agreement and any Terms Agreement shall be the sole


 
12 [[5258451]] responsibility of the Company, and the Agents and Forward Purchasers shall have no obligation in connection with such compliance. (j) At each Applicable Time (as defined in Section 22(a)), execution of any Confirmation and execution of any Terms Agreement, the Company shall be deemed to have affirmed each representation and warranty contained in this Agreement as if such representation and warranty were made as of such date, modified as necessary to relate to the Registration Statement and the Prospectus as amended as of such date. Any obligation of the Placement Agents to sell Shares as Direct Sellers or Forward Sellers or the Placement Forward Purchasers or their affiliates to borrow Shares, as described in this Section 3, shall be subject to the continuing accuracy of the representations and warranties of the Company herein, to the performance by the Company of its obligations hereunder and to the continuing satisfaction of the additional conditions specified in Section 9 of this Agreement. 4. Suspension of Sales. (a) The Company may, upon notice to the Agents and the Forward Purchasers in writing (by email correspondence to each of the individuals of the Agents and Forward Purchasers set forth on Schedule 2, if receipt of such correspondence is actually acknowledged by any of the individuals to whom the notice is sent, other than via auto-reply) or by telephone (confirmed immediately by verifiable facsimile transmission or email correspondence to each of the individuals of the Agents and Forward Purchasers set forth on Schedule 2), suspend any sale of Shares for any reason at any time, until the earlier of (i) the date the Company instructs the Agents to sell Shares or the Forward Purchasers to borrow and sell Shares through the applicable Agents under this Agreement pursuant to the terms hereof or (ii) the date on which the Company instructs the Agents and Forward Purchasers that it is revoking its prior notice that it does not intend to sell Shares pursuant to this Agreement (such time period, a “Suspension Period” and, the dates referenced in clauses (i) and (ii) of this Section 4(a), a “Suspension Rescission Date”); provided, however, that such suspension shall not affect or impair any party’s obligations with respect to any Shares sold under this Agreement prior to the receipt of such notice, including with respect to any Shares sold that have not yet settled, or with respect to Shares that are subject to any Terms Agreement or outstanding Confirmation entered into prior to the receipt of such notice. (b) Notwithstanding any other provision of this Agreement, but subject to Section 4(c) below, the Company shall not offer or sell, or request the offer or sale of, any Shares and, by notice to the applicable Agents and Forward Purchasers in writing (including by email correspondence to each of the individuals of such Agent and Forward Purchaser set forth on Schedule 2 if receipt of such correspondence is actually acknowledged by any of the individuals to whom the notice is sent, other than via auto-reply) or by telephone (confirmed immediately by verifiable facsimile transmission or email correspondence to each


 
13 [[5258451]] of the individuals of such Agent and Forward Purchaser set forth on Schedule 2), shall cancel any instructions for the offer or sale of any Shares, and the Agents shall not be obligated to offer or sell any Shares, (i) during any period in which the Company is in possession of material non-public information or (ii) at any time during the period commencing on the fourteenth day of the first month of any fiscal quarter and ending after the second full business day following the release of the Company’s earnings for the immediately preceding quarter. (c) If the Company wishes to offer or sell any Shares during any period described in Section 4(b)(ii) above (each such period, a “Blackout Period”), the Company will, as a condition to the giving or continuation of any Placement Notice, the entering into of any Confirmation or the entering into of any Terms Agreement, certify in writing to the applicable Agents (and Forward Purchasers, as applicable) that the Company is not in possession of any material non-public information, which certification shall be deemed to remain in effect during the applicable Blackout Period or time period specified in the applicable Placement Notice, Confirmation or Terms Agreement, whichever ends earlier, unless withdrawn by the Company. (d) If any party hereto has reason to believe that the exemptive provisions set forth in Rule 101(c)(1) of Regulation M (as defined below) are not satisfied with respect to the Company or the Shares, it shall promptly notify the other parties hereto and sales of Shares under any Placement Notice, Confirmation or Terms Agreement shall be suspended until such exemptive provisions or other exemptive provisions have been satisfied in the judgment of each party thereto unless otherwise agreed by an Agent and the Company pursuant to a Terms Agreement. (e) Upon receipt of any written notice contemplated in Section 7(j) (Notice of Other Sales) hereof, an Agent or Forward Purchaser may suspend its activity under any Placement Notice or any Terms Agreement for such period of time as such Agent or Forward Purchaser deems appropriate. (f) In the event that either (i) a Forward Purchaser (or an agent thereof) is unable to borrow and deliver Forward Hedge Shares to the Forward Seller for sale with respect to a Forward Instruction Notice after using commercially reasonable efforts, consistent with its normal trading and sales practices for similar transactions and applicable state and federal laws, rules and regulations and the rules of the Exchange or (ii) in the commercially reasonable judgment of such Forward Purchaser, it is impracticable to do so or such Forward Purchaser (or an agent thereof) would incur a stock loan cost that is equal to or greater than the “Maximum Stock Loan Rate” (as specified in the relevant Forward Instruction Notice) to do so, then the obligation herein of the applicable Forward Seller with respect to such Forward Instruction Notice shall only extend to the aggregate number of Shares that the Forward Purchaser is able to, and that in the commercially reasonable judgment of such Forward Purchaser it is practicable to, so borrow below such cost.


 
14 [[5258451]] 5. Settlement of Placement Shares. (a) Unless otherwise specified in the applicable Placement Notice, settlement for sales of Placement Shares will occur (i) in respect of a Direct Sale, on the second (2nd) Trading Day (or such earlier day as is industry practice for regular-way trading) following the date on which such sales are made (each such date, a “Direct Settlement Date”, or (ii) in respect of a Forward Sale, as determined pursuant the relevant Confirmation (each such date, a “Hedge Settlement Date” and, each Direct Settlement Date or Forward Settlement Date, a “Settlement Date”). The amount of proceeds to be delivered by the Direct Seller to the Company will be either (i) in the event the Company and the Direct Seller and have so mutually agreed, equal to the aggregate gross sales price tendered to the Direct Seller for the sale of Placement Shares (the “Gross Proceeds”) or (ii) equal to the aggregate gross sales price tendered to the Direct Seller for the sale of Placement Shares, minus the Direct Seller’s compensation for such sales payable by the Company pursuant to Section 2 hereof, and minus any further deduction (the “Transaction Fees”) for any transaction fees, transfer taxes or similar taxes or fees imposed by any governmental, regulatory or self-regulatory organization in respect of such sales (the “Net Proceeds”). The Placement Agent shall notify the Company as promptly as practicable if there will be any deduction on account of any applicable Transaction Fees, and shall provide an itemization of any deductions to the Company in accordance with Section 3(b). In the event the Company and the Agent have mutually agreed to the delivery of Gross Proceeds on the Direct Settlement Date, the compensation payable to such Agent shall be set forth and invoiced in a periodic statement from the Agent to the Company and payment shall be made by the Company promptly after its receipt thereof. (b) On or before each Direct Settlement Date, the Company will, or will cause its transfer agent to, electronically transfer the Placement Shares being sold by crediting the Direct Seller’s or its designee’s account (provided the Direct Seller shall have given the Company written notice of such designee prior to the Settlement Date) at The Depository Trust Company through its Deposit and Withdrawal at Custodian System or by such other means of delivery as may be mutually agreed upon by the parties hereto which in all cases shall be freely tradeable, transferable, registered shares in good deliverable form. On each Direct Settlement Date, the Direct Seller will deliver the Net Proceeds (or Gross Proceeds, as applicable) in same day funds to an account designated by the Company. (c) Default by Company or Transfer Agent. The Company agrees that if it, or its transfer agent (if applicable), defaults in its obligation to deliver Placement Shares on a Direct Settlement Date, in addition to and in no way limiting the rights and obligations set forth in Sections 10(a) (Indemnification of Each Agent) and 11 (Contribution) below, it will indemnify and hold each applicable Agent subject to a Placement Notice with respect to such Placement Shares harmless against any loss, claim, damage, or expense (including reasonable legal fees and expenses), as actually and reasonably incurred, arising out of or in connection with such default


 
15 [[5258451]] by the Company, and notwithstanding any such default by the Company, will pay to such Agent the commission, discount, or other compensation to which it would otherwise have been entitled absent such default. 6. Representations, Warranties and Covenants of the Company. The Company represents and warrants to each Agent and each Forward Purchaser as of each Applicable Time, and covenants with each Agent and each Forward Purchaser, as follows: (a) Compliance with Registration Requirements. The Registration Statement became effective when filed with the Commission under the Securities Act. No stop order suspending the effectiveness of the Registration Statement is in effect and no proceedings for such purpose, pursuant to Rule 401(g)(2) or pursuant to Section 8A of the Securities Act have been instituted or are pending or, to the knowledge of the Company, threatened by the Commission. The Company meets the requirements for use of Form S-3 under the Securities Act and has prepared and filed with the Commission the Registration Statement, which is an automatic shelf registration statement, as defined in Rule 405 under the Securities Act, on Form S-3 (File No. 333-235449). (i) (A) At the time of filing the Registration Statement, (B) at the time of the most recent amendment thereto for the purposes of complying with Section 10(a)(3) of the Securities Act (whether such amendment was by post-effective amendment, incorporated report filed pursuant to Sections 13 or 15(d) of the Exchange Act or form of prospectus) and (C) as of each Applicable Time (with such date being used as the determination date for purposes of this clause (C)), the Company was or is (as the case may be) a “well-known seasoned issuer” as defined in Rule 405 under the Securities Act. (ii) The Prospectus, when filed and as of its date, complied in all material respects with the Securities Act and, if filed by electronic transmission pursuant to EDGAR (except as may be permitted by Regulation S-T under the Securities Act), was identical to the copies thereof delivered to the Agents and Forward Purchasers for use in connection with the offer and sale of the Shares. The Registration Statement and any post-effective amendment thereto, at the time it became effective and each deemed effective date with respect to the Agents and Forward Purchasers pursuant to Rule 430B(f)(2) of the Securities Act and at each Settlement Date, complied and will comply in all material respects with the Securities Act and did not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. The documents incorporated or deemed to be incorporated by reference in the Prospectus, at the time they were filed with the Commission under the Exchange Act, complied in all material respects with the requirements of the Exchange Act. The Prospectus (including any Prospectus wrapper), as amended or supplemented, as of its date, at each Applicable Time, and at each


 
16 [[5258451]] Representation Date (as defined in Section 7(n)), did not and will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The representations and warranties set forth in the two immediately preceding sentences do not apply to statements in or omissions from the Registration Statement or any post-effective amendment thereto, the Prospectus or any amendments or supplements thereto, made in reliance upon and in conformity with information relating to the Agents or Forward Purchasers furnished to the Company in writing by the Agents or Forward Purchasers expressly for use therein, it being understood and agreed that the only such information furnished by the Agents or Forward Purchasers to the Company consists of the Agent Information (as defined herein). There are no contracts or other documents required to be described in the Prospectus or to be filed as exhibits to the Registration Statement which have not been described or filed as required. (iii) The Company is not an “ineligible issuer” in connection with the offering of the Shares pursuant to Rules 164, 405 and 433 under the Securities Act. Any free writing prospectus that the Company is required to file pursuant to Rule 433(d) under the Securities Act has been, or will be, filed with the Commission in accordance with the requirements of the Securities Act. Each free writing prospectus that the Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities Act or that was prepared by or on behalf of or used or referred to by the Company complies or will comply in all material respects with the requirements of Rule 433 under the Securities Act, including timely filing with the Commission or retention where required and legending, and each such free writing prospectus, as of its issue date and as of each Applicable Time, did not, does not and will not include any information that conflicted, conflicts with or will conflict with the information contained in the Registration Statement or the Prospectus, including any document incorporated by reference therein, that has not been superseded or modified. Except for the free writing prospectuses, if any, identified in Schedule 3 hereto furnished to the Agents and Forward Purchasers before first use, the Company has not prepared, used or referred to, and will not, without prior consent of the Agents and Forward Purchasers, prepare, use or refer to, any free writing prospectus. (b) Offering Materials Furnished to the Agents and Forward Purchasers. The Company has delivered to the Agents and the Forward Purchasers (i) a complete copy of the Registration Statement, each amendment thereto and each opinion, consent and certificate of experts filed as a part thereof, (ii) conformed copies of the Registration Statement, each amendment thereto and the Prospectus, as amended or supplemented and (iii) any free writing prospectus reviewed and consented to by the Agents and Forward Purchasers, in the case of the preceding


 
17 [[5258451]] clauses (i)-(iii), in such quantities and at such places as such Agent or Forward Purchaser has reasonably requested. (c) Distribution of Offering Material by the Company. The Company has not distributed and will not distribute, prior to the completion of a Placement Agent’s sale (whether acting as Direct Seller or Forward Seller) of all of the Placement Shares pursuant to this Agreement, any offering material in connection with the offering and sale of the Shares, other than the Prospectus, any free writing prospectus reviewed and consented to by such Agent and the Registration Statement. (d) The Agreements. This Agreement has been, and any Confirmation or Terms Agreement will have been, duly authorized, executed and delivered. (e) Authorization of the Shares. The Shares have been duly authorized for issuance and sale pursuant to this Agreement and any Confirmation or Terms Agreement and, when issued and delivered by the Company pursuant to this Agreement or Terms Agreement, will be validly issued, fully paid and nonassessable, and the issuance and sale of the Shares is not subject to any preemptive rights, rights of first refusal or other similar rights to subscribe for or purchase the Shares. Any Confirmation Shares have been duly authorized and reserved by the Company for issuance and sale to the applicable Forward Purchaser pursuant to such Confirmation and, if and when issued and delivered by the Company pursuant to the applicable Confirmation against payment of any consideration specified therein, will be validly issued, fully paid and non-assessable, and will not be subject to any preemptive rights, rights of first refusal or other similar rights to subscribe for or purchase the Shares. (f) No Applicable Registration or Other Similar Rights. There are no persons with registration or other similar rights to have any equity or debt securities registered for sale under the Registration Statement or included in the offering contemplated by this Agreement or any Confirmation or Terms Agreement. (g) No Material Adverse Change. Except as otherwise disclosed in the Prospectus, subsequent to the respective dates as of which information is given in the Prospectus: (i) there has been no material adverse change, or any development that could reasonably be expected to result in a material adverse change, in the condition, financial or otherwise, or in the properties, business, results of operations or prospects, whether or not arising from transactions in the ordinary course of business, of the Company and its subsidiaries, considered as one entity (any such change is called a “Material Adverse Change”); (ii) the Company and its subsidiaries, considered as one entity, have not incurred any material liability or obligation, indirect, direct or contingent, other than in the ordinary course of business, nor entered into any material transaction or agreement other than in the ordinary course of business; and (iii) there has been no dividend or other distribution of any kind declared, paid or made by the Company (other than regular quarterly cash dividends consistent with past practice) or, except for


 
18 [[5258451]] dividends paid to the Company or other subsidiaries, any of its subsidiaries on any class or series of capital stock or repurchase or redemption by the Company or any of its subsidiaries of any class or series of capital stock. (h) Independent Accountants. PricewaterhouseCoopers LLP, who have expressed their opinion with respect to the financial statements (which term as used in this Agreement includes the related notes thereto) of the Company and its subsidiaries incorporated by reference in the Registration Statement and the Prospectus are (A) independent public or certified public accountants as required by the Securities Act and the Exchange Act and (B) in compliance with the applicable requirements relating to the qualification of accountants under Rule 2-01 of Regulation S-X under the Exchange Act (“Regulation S-X”). (i) Preparation of the Financial Statements. The financial statements of the Company and its subsidiaries included and incorporated by reference in the Registration Statement and the Prospectus present fairly the consolidated financial position of the Company and its subsidiaries as of and at the dates indicated and the results of their operations and cash flows for the periods specified. Such financial statements have been prepared in conformity with GAAP (as defined in Section 22(b)), except as may be expressly stated in the related notes thereto. No other financial statements or supporting schedules of the Company and its subsidiaries are required to be included or incorporated by reference in the Registration Statement or the Prospectus. The pro forma consolidated financial statements of the Company and its subsidiaries and the related notes thereto included or incorporated by reference in the Prospectus and in the Registration Statement present fairly the information contained therein, have been prepared in accordance with Article 11 of Regulation S-X with respect to pro forma financial statements and have been properly presented on the bases described therein, and the assumptions used in the preparation thereof are reasonable and the adjustments used therein are appropriate to give effect to the transactions and circumstances referred to therein. All disclosures contained in the Prospectus and the Registration Statement regarding “non-GAAP financial measures” (as such term is defined by the rules and regulations of the Commission) comply with Regulation G of the Exchange Act and Item 10 of Regulation S-K under the Securities Act, to the extent applicable. The interactive data in eXtensible Business Reporting Language incorporated by reference in the Registration Statement and the Prospectus fairly presents the required information called for in all material respects and has been prepared in accordance with the Commission’s rules and guidelines applicable thereto. (j) [Reserved]. (k) Company’s Accounting System. The Company and each of its subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to


 
19 [[5258451]] maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Except as otherwise disclosed in the Prospectus, there have not been and are no significant deficiencies or material weaknesses in the Company’s internal control over financial reporting (whether or not remediated), and except as otherwise disclosed in the Prospectus, since the date of the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q (as applicable), there has been no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. (l) Incorporation and Good Standing of the Company and Its Subsidiaries. Each of the Company and its Significant Subsidiaries (as defined in Rule 1-02(w) of Regulation S-X) has been duly incorporated or organized, as the case may be, and is validly existing as a corporation, partnership, limited liability company or trust, as applicable, in good standing under the laws of the jurisdiction of its incorporation or organization and has the power and authority (corporate or other) to own, lease and operate its properties and to conduct its business as described in the Prospectus and, in the case of the Company, to enter into and perform its obligations under this Agreement or any Confirmation or Terms Agreement. Each of the Company and each Significant Subsidiary is duly qualified as a foreign corporation, partnership, limited liability company or trust, as applicable, to transact business and is in good standing in each jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where the failure to be so qualified and in good standing would not, individually or in the aggregate, result in a Material Adverse Change. All of the issued and outstanding capital stock or other equity or ownership interests of each Significant Subsidiary have been duly authorized and validly issued, are fully paid and nonassessable and, except as set forth in the Prospectus, are owned by the Company, directly or through subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance or adverse claim. Except as otherwise disclosed in the Prospectus, the Company does not own or control, directly or indirectly, any corporation, association or other entity other than (i) the subsidiaries listed in Exhibit 21.1 to the Company’s most recent Annual Report on Form 10-K and (ii) such other entities omitted from Exhibit 21.1 which, when such omitted entities are considered in the aggregate as a single subsidiary, would not constitute a “significant subsidiary” within the meaning of Rule 1-02(w) of Regulation S-X. (m) Capitalization and Other Capital Stock Matters. The authorized, issued and outstanding capital stock of the Company is as set forth in the Prospectus (other than for subsequent issuances, if any, described in the Prospectus or pursuant to employee benefit plans described in the Prospectus or upon the exercise of outstanding options described in the Prospectus, and other than Shares sold pursuant to this Agreement or any Terms Agreement or Confirmation Shares


 
20 [[5258451]] delivered in settlement of any Confirmation, in each case prior to the filing of the Company’s next Annual Report on Form 10-K or Quarterly Report on Form 10- Q). The Shares and Confirmation Shares conform in all material respects to the description thereof contained in the Prospectus. All of the issued and outstanding Shares and Confirmation Shares have been or will be duly authorized and, if and when issued and delivered by the Company pursuant to the applicable Confirmation against payment of the applicable consideration specified therein, validly issued and are or will be fully paid and nonassessable. None of the outstanding Shares or Confirmation Shares was, is, or will be issued in violation of any preemptive rights, rights of first refusal or other similar rights to subscribe for or purchase securities of the Company. (n) Stock Exchange Listing. The Shares and Confirmation Shares are registered pursuant to Section 12(b) or 12(g) of the Exchange Act and are listed on the Exchange, and the Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Shares or Confirmation Shares under the Exchange Act or delisting the Shares or Confirmation Shares from the Exchange, nor has the Company received any notification that the Commission or the Exchange is contemplating terminating such registration or listing. (o) Non-Contravention of Laws and Existing Instruments; No Further Authorizations or Approvals Required. Neither the Company nor any of its Significant Subsidiaries is (i) in breach or violation of (A) its charter or bylaws, partnership agreement or operating agreement or similar organizational document, as applicable, (B) any applicable federal, state, local or foreign law, regulation or rule or (C) any applicable rule or regulation of any self-regulatory organization or other non-governmental regulatory authority (including, without limitation, the rules and regulations of the Exchange), except in the case of the preceding clauses (B) and (C), for such breaches or violations as would not, individually or in the aggregate, result in a Material Adverse Change or (ii) in default (or, with the giving of notice or lapse of time, would be in default) (a “Default”) under any indenture, mortgage, loan or credit agreement, note, contract, franchise, lease or other instrument to which the Company or any of its subsidiaries is a party or by which it or any of them may be bound (including, without limitation, any credit agreement, indenture, pledge agreement, security agreement or other instrument or agreement evidencing, guaranteeing, securing or relating to indebtedness of the Company or any of its subsidiaries), or to which any of the property or assets of the Company or any of its subsidiaries is subject (each, an “Existing Instrument”), except in the case of such Defaults as would not, individually or in the aggregate, result in a Material Adverse Change. The Company’s execution, delivery and performance of this Agreement and any Confirmation or Terms Agreement, consummation of the transactions contemplated hereby and thereby and by the Prospectus and the issuance and sale of the Shares and Confirmation Shares (i) have been duly authorized by all necessary action (corporate or other) and will not result in any violation of the provisions of the charter or bylaws, partnership agreement or operating agreement or similar organizational document of the Company or any subsidiary, as applicable, (ii) will not conflict with or constitute


 
21 [[5258451]] a breach of, or a Default or a Debt Repayment Triggering Event (as defined below) under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or any of its subsidiaries pursuant to, or require the consent of any other party to, any Existing Instrument and (iii) will not result in any violation of any federal, state, local or foreign law, regulation or rule, administrative or court decree or any rule or regulation of any self-regulatory organization or other non-governmental regulatory authority (including, without limitation, the rules and regulations of the Exchange) applicable to the Company or any subsidiary, except in the case of the preceding clauses (ii) and (iii), for those conflicts, breaches, Defaults, Debt Repayment Triggering Events or violations that would not, individually or in the aggregate, result in a Material Adverse Change. No consent, approval, authorization or other order of, or registration or filing with, any court or other governmental or regulatory authority or agency, is required for the Company’s execution, delivery and performance of this Agreement or any Confirmation or Terms Agreement and consummation of the transactions contemplated hereby or thereby and by the Prospectus, except such as have been obtained or made by the Company and are in full force and effect under the Securities Act, or applicable state securities and blue sky laws. As used herein, a “Debt Repayment Triggering Event” means any event or condition which gives, or with the giving of notice or lapse of time would give, the holder of any note, debenture or other evidence of indebtedness (or any person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion of such indebtedness by the Company or any of its subsidiaries. (p) No Material Actions or Proceedings. There are no legal or governmental actions, suits or proceedings pending or, to the Company’s knowledge, threatened (i) against or affecting the Company or any of its subsidiaries, (ii) which have as the subject thereof any officer or director of, or property owned or leased by, the Company or any of its subsidiaries or (iii) relating to environmental or discrimination matters, where in any such case (A) there is a reasonable possibility that such action, suit or proceeding might be determined adversely to the Company, such subsidiary or such officer or director and, if so determined adversely, would reasonably be expected to result in a Material Adverse Change or adversely affect the consummation of the transactions contemplated by this Agreement or any Confirmation or Terms Agreement or (B) any such action, suit or proceeding is or would be material in the context of the sale of Shares or the issuance of Confirmation Shares. No material labor dispute with the employees of the Company or any of its subsidiaries exists or, to the Company’s knowledge, is threatened or imminent, except where such dispute or disputes, individually or in the aggregate, would not have a Material Adverse Change. (q) Intellectual Property Rights. The Company and its subsidiaries own or possess sufficient trademarks, trade names, patent rights, copyrights, domain names, licenses, approvals, trade secrets and other similar rights (collectively, “Intellectual Property Rights”) reasonably necessary to conduct their businesses as now conducted, except where the failure to own or possess such rights would


 
22 [[5258451]] not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change. Neither the Company nor any of its subsidiaries has received any notice of infringement or conflict with asserted Intellectual Property Rights of others, which infringement is material to the business of the Company and its subsidiaries, except where such infringement would not reasonably be expected to result in a Material Adverse Change. (r) All Necessary Permits, etc. The Company and each subsidiary possess such valid and current certificates, authorizations, licenses or permits issued by the appropriate state, local, federal or foreign regulatory agencies or bodies necessary to conduct their respective businesses, except as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change, and neither the Company nor any subsidiary has received any notice of proceedings relating to the revocation or modification of, or non-compliance with, any such certificate, authorization, license or permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to result in a Material Adverse Change. (s) Title to Properties. Except as disclosed in the Prospectus, each of the Company and its subsidiaries has good and marketable title to all of the real and personal property and other assets reflected as owned in the financial statements referred to in Section 6(i) above (or elsewhere in the Prospectus), in each case free and clear of any security interests, mortgages, liens, encumbrances, equities, adverse claims and other defects, except such as would not reasonably be expected to result in a Material Adverse Change. Except as disclosed in the Prospectus, none of the real property so owned by the Company or any of its subsidiaries (the “Real Property”) is subject to any options or rights of first refusal to purchase all or part of such real property or any interest therein, except as would not reasonably be expected to result in a Material Adverse Change. The real property, improvements, equipment and personal property held under lease by the Company or any subsidiary are held under valid and enforceable leases, with such exceptions as would not reasonably be expected to result in a Material Adverse Change. (t) No Violation of Laws Pertaining to Real Properties. None of the Company or any of its subsidiaries is in violation of any municipal, state or federal law, rule or regulation (including those pertaining to environmental matters) concerning any of the Real Property, except for such violations which would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change. No written notice of any condemnation of or zoning change affecting the Real Properties or any parts thereof has been received, or, to the knowledge of the Company, threatened, that if consummated would, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change. Each of the Real Properties complies with all applicable zoning laws, ordinances, regulations, development agreements, reciprocal easement agreements and deed restrictions or other covenants in all material respects and, if and to the extent


 
23 [[5258451]] there is a failure to comply, such failure would not reasonably be expected to result in a Material Adverse Change. (u) Tax Law Compliance. The Company and its subsidiaries have filed all necessary federal, state, local and foreign income and franchise tax returns and have paid all taxes required to be paid by any of them and, if due and payable, any related or similar assessment, fine or penalty levied against any of them, except in any case in which the failure to file or pay would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change. The Company and its subsidiaries have made adequate charges, accruals and reserves in the applicable financial statements referred to in Section 6(i) above in respect of all federal, state, local and foreign income and franchise taxes for all periods as to which the tax liability of the Company or any of its subsidiaries has not been finally determined. No subsidiary of the Company that is a limited partnership or limited liability company has made an election under Section 7701 of the Internal Revenue Code of 1986, as amended (the “Code”), to change its default classification for federal income tax purposes, except for any taxable REIT subsidiary (TRS) of the Company formed in the ordinary course of business of the Company that has been organized as a limited partnership or limited liability company. (v) Investment Company Act. The Company is not, and will not be, after receipt of payment for the Shares, after the settlement of any Confirmation or after the application of the proceeds from either as described under “Use of Proceeds” in the Prospectus, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. (w) Insurance. Each of the Company and its subsidiaries is insured with policies in such amounts and with such deductibles and covering such risks as it reasonably deems adequate for its business, and the Real Property is appropriately insured by institutions the Company reasonably believes to be financially sound. (x) No Price Stabilization or Manipulation; Compliance with Regulation M. The Common Stock is an “actively traded security” excepted from the requirements of Rule 101 of Regulation M under the Exchange Act by subsection (c)(1) of such rule. Neither the Company nor any of its subsidiaries nor any of their respective directors, officers, affiliates or controlling persons has taken, directly or indirectly, any action designed to or that might be reasonably expected to cause or result in stabilization or manipulation of the price of the Shares or any other “reference security” (as defined in Rule 100 of Regulation M under the Exchange Act (“Regulation M”)) whether to facilitate the sale or resale of the Shares or otherwise, and has taken no action which would directly or indirectly violate Regulation M. The Company acknowledges that the Agents and the Forward Purchasers may engage in passive market making transactions in the Shares on the Exchange in accordance with Regulation M. The Company acknowledges and agrees that each Agent and each Forward Purchaser has informed the Company that it may, to the extent permitted under the Exchange Act, purchase


 
24 [[5258451]] and sell shares of Common Stock for its own account and for the account of its clients while this Agreement or any Confirmation or Terms Agreement is in effect. (y) [Reserved]. (z) Statistical and Market-Related Data. As of the effective date of the Registration Statement, the statistical, demographic and market-related data included in the Registration Statement and the Prospectus are (i) based on or derived from sources that the Company has no reason to believe are unreliable or inaccurate or (ii) represent the Company’s good faith estimates that are made on the basis of data derived from such sources. (aa) No Unlawful Contributions or Other Payments. Neither the Company nor any of its subsidiaries nor any director, officer or employee acting on behalf of the Company or any of its subsidiaries, nor, to the Company’s knowledge, any agent, affiliate or other person associated with or acting on behalf of the Company or any of its subsidiaries (i) has made any contribution or other payment to any official of, or candidate for, any federal, state or foreign office in violation of any law or of the character required to be disclosed in the Registration Statement and the Prospectus; (ii) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (iii) made or taken an act in furtherance of an offer, promise or authorization of any direct or indirect unlawful payment or benefit to any foreign or domestic government official or employee, including of any government-owned or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official or candidate for political office; (iv) is aware of or has taken any action, directly or indirectly, that has resulted or would result in a violation of any provision of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”), including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign political office, in contravention of the FCPA, or any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, or committed an offence under the Bribery Act 2010 of the United Kingdom or any other applicable anti-bribery or anti-corruption law; or (v) made, offered, agreed, requested or taken an act in furtherance of any unlawful bribe or other unlawful benefit, including, without limitation, any rebate, payoff, influence payment, kickback or other unlawful or improper payment or benefit. The Company and its subsidiaries have instituted, maintain and enforce, and will continue to maintain and enforce, policies and procedures designed to promote and ensure compliance with all applicable anti- bribery and anti-corruption laws. The Company and its subsidiaries and, to the


 
25 [[5258451]] knowledge of the Company, the Company’s affiliates have conducted their respective businesses in compliance with the FCPA and all applicable anti-bribery and anti-corruption laws. (bb) Disclosure Controls and Procedures; Deficiencies in or Changes to Internal Control over Financial Reporting and Compliance with Sarbanes-Oxley. The Company, its subsidiaries and the Company’s directors or officers, in their capacities as such, are in compliance, in all material respects, with all applicable provisions of the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations promulgated in connection therewith, including Section 402 related to loans and Sections 302 and 906 related to certifications. The Company has established and maintains disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)), which (i) are designed to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to the Company’s principal executive officer and its principal financial officer by others within those entities, particularly during the periods in which the periodic reports required under the Exchange Act are being prepared; (ii) have been evaluated by management of the Company for effectiveness as of the end of the Company’s most recent fiscal quarter; and (iii) are effective in all material respects to perform the functions for which they were established. Except as otherwise disclosed in the Prospectus, the Company is not aware of any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting. Except as otherwise disclosed in the Prospectus, the Company is not aware of any change in its internal control over financial reporting that has occurred during its most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. (cc) Compliance with Environmental Laws. Except as would not, singly or in the aggregate, reasonably be expected to result in a Material Adverse Change, (i) neither the Company nor any of its subsidiaries is in violation of any federal, state, local or foreign statute, law, rule, regulation, ordinance, code, policy or rule of common law or any judicial or administrative interpretation thereof, including any judicial or administrative order, consent, decree or judgment, relating to pollution or protection of human health, the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata) or wildlife, including, without limitation, laws and regulations relating to the release or threatened release of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum or petroleum products (collectively, “Hazardous Materials”) or to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials (collectively, “Environmental Laws”), (ii) the Company and its subsidiaries have all permits, authorizations and approvals required under any applicable Environmental Laws and are each in compliance with their requirements and (iii) there are no pending or, to the Company’s knowledge, threatened administrative, regulatory or judicial actions, suits, demands, demand


 
26 [[5258451]] letters, claims, liens, notices of noncompliance or violation, investigations or proceedings relating to any Environmental Law against the Company or any of its subsidiaries. (dd) ERISA Compliance. Except as otherwise disclosed in the Prospectus, the Company and its subsidiaries and any “employee benefit plan” (as defined under the Employee Retirement Income Security Act of 1974, as amended, and the regulations and published interpretations thereunder (collectively, “ERISA”)) established or maintained by the Company, its subsidiaries or their ERISA Affiliates (as defined below) are in compliance with ERISA, except as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change. None of the Company, its subsidiaries or any of their ERISA Affiliates has incurred or reasonably expects to incur any material liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any “employee pension benefit plan” (as defined under ERISA) or (ii) Sections 412, 4971 or 4975 of the Code. As used herein, “ERISA Affiliate” means, with respect to the Company or a subsidiary, any member of any group of organizations described in Sections 414(b), (c), (m) or (o) of the Code of which the Company or such subsidiary is a member. (ee) Brokers. Except as otherwise disclosed in the Prospectus or pursuant to this Agreement or any Confirmation or Terms Agreement, there is and will be no broker, finder or other party that is entitled to receive from the Company or any of its subsidiaries any brokerage or finder’s fee or other fee or commission as a result of any transactions contemplated by this Agreement or any Confirmation or Terms Agreement. (ff) Dividend Restrictions. Except as otherwise disclosed in the Prospectus and except for limitations imposed with respect to the frequency (but not the amount) of dividends that may be paid by those subsidiaries of the Company with outstanding indebtedness owed to the U.S. Department of Housing and Urban Development (as of the date of this Agreement or any Confirmation or Terms Agreement), no subsidiary of the Company is prohibited or restricted, directly or indirectly, from paying dividends to the Company or any other subsidiary of the Company, or from making any other distribution with respect to such subsidiary’s equity securities or from repaying to the Company or any other subsidiary of the Company any amounts that may from time to time become due under any loans or advances to such subsidiary from the Company or any other subsidiary of the Company or from transferring any property or assets to the Company or to any other subsidiary of the Company. (gg) [Reserved]. (hh) Money Laundering Laws. The operations of the Company and its subsidiaries are, and have been conducted at all times, in compliance in all material respects with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the


 
27 [[5258451]] money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar applicable rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened. (ii) REIT Status. Commencing with the Company’s taxable year beginning January 1, 2011, the Company has been organized and has operated in conformity with the requirements for qualification and taxation as a “real estate investment trust” (a “REIT”) under Sections 856 through 860 of the Code; and the current and proposed method of operation for the Company and its subsidiaries as described in the Prospectus will enable the Company to continue to meet the requirements for qualification and taxation as a REIT under the Code. (jj) No Conflicts with Sanctions Laws. Neither the Company nor any of its subsidiaries nor any director, officer or employee acting on behalf of the Company or any of its subsidiaries, nor, to the knowledge of the Company, any agent, affiliate or other person associated with or acting on behalf of the Company or any of its subsidiaries is currently the subject or the target of any sanctions administered or enforced by the U.S. government (including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”) or the U.S. Department of State and including, without limitation, the designation as a “specially designated national” or “blocked person”), the United Nations Security Council (“UNSC”), the European Union, Her Majesty’s Treasury (“HMT”) or other relevant sanctions authority (collectively, “Sanctions”), nor is the Company, or any of its subsidiaries located, organized or resident in a country or territory that is the subject or target of Sanctions, including, without limitation, Crimea, Cuba, Iran, North Korea and Syria (each, a “Sanctioned Country”); and the Company will not directly or indirectly use the proceeds from the offering of Shares hereunder or under any Terms Agreement or proceeds from the settlement of any Confirmation Shares under any applicable Confirmation, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity (i) to fund or facilitate any activities of or business with any person in any country or territory that, at the time of such funding or facilitation, is the subject or target of Sanctions, (ii) to fund or facilitate any activities of or business in any Sanctioned Country or (iii) in any other manner that will result in a violation by any person (including any person participating in the transaction, whether as agent, underwriter, advisor, investor or otherwise) of Sanctions. For the past five years, the Company and its subsidiaries have not knowingly engaged in and are not now knowingly engaged in any dealings or transactions (i) with any person that at the time of the dealing or transaction is or was the subject or the target of Sanctions or (ii) with any Sanctioned Country.


 
28 [[5258451]] (kk) Regulations T, U, X. Neither the Company nor any of its subsidiaries nor any agent thereof acting on their behalf has taken, and none of them will take, any action that would reasonably be expected to cause this Agreement, any Terms Agreement or the issuance or sale of the Shares to violate Regulation T, Regulation U or Regulation X of the Board of Governors of the Federal Reserve System. (ll) Accurate Disclosure. The statements set forth in the Prospectus under the captions “Description of Capital Stock” and “Material U.S. Federal Income Tax Considerations”, insofar as such statements summarize legal matters, agreements, documents or proceedings discussed therein, are accurate summaries of such legal matters, agreements, documents or proceedings in all material respects. (mm) AIFMD. Neither the Company nor any of its subsidiaries is an alternative investment fund nor an alternative investment fund manager as each term is understood for purposes of the European Union’s Alternative Investment Fund Managers Directive (No. 2011/61/EU) (the “AIFMD”) and any subordinate legislation enacted thereunder, as each has been amended, extended or re-enacted from time to time, including the applicable implementing legislation and regulations of each member state of the European Economic Area. (nn) Cybersecurity; Data Protection. The Company and its subsidiaries’ information technology assets and equipment, computers, systems, networks, hardware, software, websites, applications, and databases (collectively, “IT Systems”) are adequate for, and operate and perform in all material respects as required in connection with the operation of the business of the Company and its subsidiaries as currently conducted, free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants. The Company and its subsidiaries have implemented and maintained commercially reasonable controls, policies, procedures, and safeguards to maintain and protect their material confidential information and the integrity, continuous operation, redundancy and security of all IT Systems and data (including all personal, personally identifiable, sensitive, confidential or regulated data (“Personal Data”)) used in connection with their businesses, and there have been no known breaches, violations, outages or unauthorized uses of or accesses to same, except as would not, individually or in the aggregate, result in a Material Adverse Change, nor any incidents under internal review or investigations relating to the same. The Company and its subsidiaries are presently in material compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Personal Data and to the protection of such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification. (oo) Confirmations. Each Confirmation will have been, as of its date, duly authorized, executed and delivered by the Company and when executed and delivered by the Placement Forward Purchaser, such Confirmation will constitute a valid and


 
29 [[5258451]] binding obligation of the Company, enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium or other similar laws relating to or affecting creditors’ rights generally or by general equity principles (regardless of whether enforcement is considered in a proceeding in equity or at law). The description of the form of Confirmation set forth in the General Disclosure Package, Prospectus and any Issuer Free Writing Prospectus is correct in all material respects. Any certificate signed by any officer of the Company or any of its subsidiaries and delivered to the Agents, the Forward Purchasers or counsel for the Agents and Forward Purchasers shall be deemed a representation and warranty by the Company to the Agents and the Forward Purchasers, as applicable, as to the matters covered thereby. The Company acknowledges that the Agents, Forward Purchasers and, for purposes of the opinions to be delivered pursuant to Section 7 hereof, counsel to the Company and counsel to the Agents and Forward Purchasers, will rely upon the accuracy and truthfulness of the foregoing representations and hereby consents to such reliance. 7. Additional Covenants of the Company. The Company further covenants and agrees with each Agent and Forward Purchaser that: (a) Registration Statement Amendments; Securities Act Compliance. After the date of this Agreement and during any period in which a Prospectus relating to any Shares is required to be delivered by the Agents and Forward Purchasers under the Securities Act (including in circumstances where such requirement may be satisfied pursuant to Rules 153 and 172 under the Securities Act), the Company shall (i) promptly advise the Agents and Forward Purchasers in writing of the receipt of any comments of, or requests for additional or supplemental information from, the Commission that are reasonably related to the transactions contemplated by this Agreement; (ii) promptly advise the Agents and Forward Purchasers, as applicable, in writing of the time and date of any filing of any post- effective amendment to the Registration Statement or any amendment or supplement to any free writing prospectus or the Prospectus; (iii) promptly advise the Agents and Forward Purchasers in writing of the time and date that any post- effective amendment to the Registration Statement becomes effective; (iv) promptly advise the Agents and Forward Purchasers in writing of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or any post-effective amendment thereto or any amendment or supplement to the Prospectus or of any order preventing or suspending the use of any free writing prospectus or the Prospectus, or of any proceedings to remove, suspend or terminate from listing or quotation the Shares from any securities exchange upon which they are listed for trading or included or designated for quotation, or of the threatening or initiation of any proceedings for any of such purposes or pursuant to Section 8A of the Securities Act; (v) prepare and file with the Commission, promptly upon an Agent’s or Forward Purchaser’s request, any amendments or supplements to the Registration Statement or Prospectus that, in


 
30 [[5258451]] such Agent’s or Forward Purchaser’s reasonable opinion, may be necessary or advisable in connection with the distribution of the Shares by the Agents (provided, however, that the failure of such Agent or Forward Purchaser to make such request shall not relieve the Company of any obligation or liability hereunder, or affect such Agent’s or Forward Purchaser’s right to rely on the representations and warranties made by the Company in this Agreement); and (vi) furnish to each Agent and each Forward Purchaser at the time of filing thereof a copy of any document that upon filing is deemed to be incorporated by reference into the Registration Statement or Prospectus, except in the case of clauses (ii), (iii) and (vi) for those documents available via EDGAR. If the Commission shall enter any such stop order described in clause (iv) at any time, the Company will use its reasonable efforts to obtain the lifting of such order at the earliest possible moment. Additionally, the Company agrees that it shall comply with the provisions of Rule 424(b), Rule 433, Rule 430B and Rule 430C, as applicable, under the Securities Act and will use its reasonable efforts to confirm that any filings made by the Company under such Rule 424(b) or Rule 433 are made in a timely manner. (b) Delivery of Registration Statement and Prospectus. The Company shall furnish to each Agent and each Forward Purchaser and its counsel, without charge, as many copies as each Agent or Forward Purchaser may reasonably request of the Registration Statement (including exhibits thereto), the Prospectus (including all documents incorporated by reference therein) and all amendments and supplements to the Registration Statement or Prospectus that are filed with the Commission during any period in which a Prospectus relating to the Shares is required to be delivered under the Securities Act (including all documents filed with the Commission during such period that are deemed to be incorporated by reference therein), in each case as soon as reasonably practicable, and, at an Agent’s or Forward Purchaser’s request, will also furnish copies of the Prospectus to each exchange or market on which sales of the Shares may be made; provided, however, that the Company shall not be required to furnish any document (other than the Prospectus) to an Agent or Forward Purchaser to the extent such document is available to such Agent, Forward Purchaser or the public on EDGAR. (c) Agents’ and Forward Purchasers’ Review of Proposed Amendments and Supplements. Prior to amending or supplementing the Registration Statement or the Prospectus in connection with the transactions contemplated by this Agreement, the Company shall furnish to the Agents and Forward Purchasers for review, a reasonable amount of time prior to the proposed time of filing or use thereof, a copy of each such proposed amendment or supplement, and the Company shall not file or use any such proposed amendment or supplement without the Agents’ and Forward Purchasers’ consent (not to be unreasonably withheld or delayed), and shall file with the Commission within the applicable period specified in Rule 424(b) under the Securities Act any prospectus required to be filed pursuant to such Rule with respect to the transactions contemplated by this Agreement.


 
31 [[5258451]] (d) Free Writing Prospectuses. The Company shall furnish to the Agents and Forward Purchasers for review, a reasonable amount of time prior to the proposed time of filing or use thereof, a copy of each proposed issuer free writing prospectus or any amendment or supplement thereto to be prepared by or on behalf of, used by, or referred to by the Company and the Company shall not file, use or refer to any issuer proposed free writing prospectus or any amendment or supplement thereto without the Agents’ and Forward Purchasers’ consent (not to be unreasonably withheld or delayed). The Company shall furnish to the Agents and Forward Purchasers, without charge, as many copies of any free writing prospectus prepared by or on behalf of, or used by, the Company, as the Agents and Forward Purchasers may reasonably request. If at any time when a prospectus is required by the Securities Act (including, without limitation, pursuant to Rule 173(d)) to be delivered in connection with sales of the Shares, there occurred or occurs an event or development as a result of which any free writing prospectus prepared by or on behalf of, used by, or referred to by the Company conflicted or would conflict with the information contained in the Registration Statement or, when taken together with the Registration Statement, included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances prevailing at that time, not misleading, the Company shall promptly amend or supplement such free writing prospectus to eliminate or correct such conflict or so that the statements in such free writing prospectus as so amended or supplemented will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances prevailing at such time, not misleading, as the case may be; provided, however, that prior to amending or supplementing any such free writing prospectus, the Company shall furnish to the Agents and Forward Purchasers for review, a reasonable amount of time prior to the proposed time of filing or use thereof, a copy of such proposed amended or supplemented free writing prospectus and the Company shall not file, use or refer to any such amended or supplemented free writing prospectus without the Agents’ and Forward Purchasers’ consent (not to be unreasonably withheld or delayed). (e) Delivery of Prospectus; Subsequent Changes. During any period in which a Prospectus relating to the Shares is required to be delivered by an Agent or Forward Purchaser under the Securities Act with respect to a pending sale of the Shares (including in circumstances where such requirement may be satisfied pursuant to Rules 153 or 172 under the Securities Act), the Company will comply in all material respects with the requirements imposed upon it by the Securities Act, as from time to time in force, and shall file on or before their respective due dates all reports and any definitive proxy or information statements required to be filed by the Company with the Commission pursuant to Sections 13(a), 13(c), 14, 15(d) or any other provision of or under the Exchange Act. If during such period any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Prospectus so that the Prospectus does not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances then


 
32 [[5258451]] existing, not misleading, or if in the opinion of the Company or such Agent, Forward Purchaser or counsel for such Agent or Forward Purchaser it is otherwise necessary to amend or supplement the Prospectus to comply with applicable law, including the Securities Act, the Company will promptly notify such Agent or Forward Purchaser to suspend the offering of Shares during such period and the Company agrees (subject to Sections 7(c) and 7(d)) to promptly prepare, file with the Commission and furnish at its own expense to the Agents and Forward Purchasers, amendments or supplements to the Prospectus so that the statements in the Prospectus as so amended or supplemented will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances then existing, not misleading or so that the Prospectus, as amended or supplemented, will comply with applicable law, including the Securities Act. Neither the Agents’ nor Forward Purchasers’ consent to, nor delivery of, any such amendment or supplement shall constitute a waiver of any of the Company’s obligations under Sections 7(c) or (d). (f) Listing of Placement Shares. During any period in which the Prospectus relating to the Shares is required to be delivered by any Agent or Forward Purchaser under the Securities Act with respect to a pending sale of the Shares (including in circumstances where such requirement may be satisfied pursuant to Rules 153 or 172 under the Securities Act) and until all obligations under any Confirmation have been discharged, the Company will use its reasonable efforts to effect and maintain the listing of the Shares on the Exchange. (g) Earnings Statement. The Company shall make generally available to its security holders, as soon as practicable, but in any event no later than fifteen months after the effective date of the Registration Statement (as such date is defined in Rule 158(c) under the Securities Act), an earnings statement of the Company and its subsidiaries (which need not be audited) complying with Section 11(a) of the Securities Act and the rules and regulations of the Commission thereunder. (h) Expenses. The Company will pay or cause to be paid all costs, fees and expenses incurred in connection with the performance of its obligations hereunder and in connection with the transactions contemplated hereby, whether or not the transactions contemplated hereby are consummated, including without limitation (i) all expenses incident to the issuance and delivery of the Shares and Confirmation Shares (including all printing and engraving costs); (ii) all fees and expenses of the registrar and transfer agent of the Shares and Confirmation Shares; (iii) all necessary issue, transfer and other stamp taxes or governmental duties in connection with the issuance and sale of the Shares and Confirmation Shares to the Agents or Forward Purchasers, as applicable; (iv) all fees and expenses of the Company’s counsel, independent public or certified public accountants and other advisors; (v) all costs and expenses incurred in connection with the preparation, printing, filing, shipping and distribution of the Registration Statement (including financial statements, exhibits, schedules, consents and certificates of experts), the Prospectus, any free writing prospectuses prepared by


 
33 [[5258451]] or on behalf of, used by, or referred to by the Company, and all amendments and supplements thereto, this Agreement, any Confirmation and any Terms Agreement; (vi) all filing fees, attorneys’ fees and expenses incurred by the Company, the Forward Purchasers or the Agents in connection with qualifying or registering (or obtaining exemptions from the qualification or registration of) all or any part of the Shares for offer and sale under the securities laws of the United States, state securities or “blue sky” laws, the provincial securities laws of Canada or other jurisdictions designated by the Agents or Forward Purchasers, and, if requested by any Agent or Forward Purchaser, preparing and printing a “Blue Sky Survey” or memorandum and a “Canadian wrapper”, and any supplements thereto, advising such Agent or Forward Purchaser of such qualifications, registrations and exemptions; (vii) the filing fees incident to, and the reasonable fees and expenses of counsel for the Agents and Forward Purchasers in connection with, review by the Financial Industry Regulatory Authority, Inc. (“FINRA”), if any, and approval of any Agent’s or Forward Purchaser’s participation in the offering and distribution of the Shares; (viii) the fees and expenses associated with including the Shares on the Exchange; (ix) all other fees, costs and expenses of the nature referred to in Item 14 of Part II of the Registration Statement; and (x) all reasonable fees, disbursements and expenses of Cravath, Swaine & Moore LLP, counsel to the Agents and Forward Purchasers, in connection with the transactions contemplated by this Agreement (including, for the avoidance of doubt, the expenses in connection with the deliverables and associated due diligence at each Representation Date), any Confirmation or Terms Agreement and as agreed upon from time to time by the Company, the Agents and Forward Purchasers (such expenses in clause (x) above, the “Agent and Forward Purchaser Legal Expenses”). The Agent and Forward Purchaser Legal Expenses shall be due and payable by the Company reasonably promptly upon written request. Except as provided in this Section 7(h), Section 10 and Section 11 hereof, or as otherwise agreed by the parties hereto, each Agent and each Forward Purchaser shall pay its own expenses, including the fees and disbursements of its counsel. (i) Use of Proceeds. The Company will apply the Net Proceeds from the sale of the Shares to be sold by it hereunder in the manner described under the caption “Use of Proceeds” in the Prospectus. (j) Notice of Other Sales. During the pendency of any Placement Notice given hereunder or any Confirmation or Terms Agreement, the Company shall provide the applicable Agents or Forward Purchasers notice as promptly as reasonably practicable before it offers to sell, contracts to sell, sells, pledges, grants any option to sell or otherwise disposes of any shares of Common Stock (other than Placement Shares offered pursuant to the provisions of this Agreement or Shares offered pursuant to any Confirmation or Terms Agreement) or securities convertible into or exchangeable for Common Stock, warrants or any rights to purchase or acquire Common Stock; provided that such notice shall not be required in connection with (i) the issuance, grant or sale of Common Stock, restricted stock units, options to purchase Common Stock or Common Stock


 
34 [[5258451]] issuable upon the vesting or exercise of options or other equity awards pursuant to any stock option, stock bonus or other stock or compensatory plan or arrangement described in the Prospectus, (ii) the issuance of securities in connection with an acquisition, merger or sale, joint venture, or purchase of assets described in the Prospectus, (iii) the issuance or sale of Common Stock pursuant to any dividend reinvestment plan that the Company may adopt from time to time provided the implementation of such is disclosed to the Agents and Forward Purchasers in advance or (iv) the issuance of any Common Stock issuable upon the redemption of outstanding partnership units in accordance with the limited partnership agreement of Sabra Health Care Limited Partnership. (k) Change of Circumstances. The Company will, at any time during a fiscal quarter in which the Company tenders a Notice or Placement Notice, sells Placement Shares, enters into a Terms Agreement or sells Shares pursuant to a Terms Agreement or enters into a Confirmation, advise the Agents or Forward Purchasers, as applicable, as promptly as reasonably practicable prior to the delivery of such Notice or Placement Notice or entering into of such Terms Agreement or Confirmation, of any information or fact that would alter or affect in any material respect any opinion, certificate, letter or other document provided to the Agents and Forward Purchasers pursuant to this Agreement. (l) Due Diligence Cooperation. The Company will cooperate with any commercially reasonable due diligence review conducted by the Agents and Forward Purchasers, or their respective agents, in connection with the transactions contemplated hereby, including, without limitation, providing information and making available documents and senior officers, upon reasonable notice during regular business hours and at the Company’s principal offices, as any of the Agents or Forward Purchasers may reasonably request (i) on or prior to the date that the first Shares are sold pursuant to the terms of this Agreement or any Confirmation or Terms Agreement and (ii) prior to each Representation Date. The Company will make available its appropriate officers and cause such officers to participate in a call, or such other due diligence session, in form and substance reasonably satisfactory to the Agents and Forward Purchasers and their counsel prior to each Representation Date (including, without limitation, the availability of the chief financial officer to respond to questions regarding the business and financial condition of the Company) or otherwise as any of the Agents or Forward Purchasers may reasonably request from time to time; such call or due diligence session shall be for the purpose of updating the Agents’ and Forward Purchasers’ due diligence review of the Company in connection with the transactions contemplated hereby. The obligations set forth in the preceding sentence of this Section 7(l) shall be suspended during a Suspension Period. On a Suspension Rescission Date, the provisions of this Section 7(l) shall once again be operative. (m) Required Filings Relating to Placement and Sale of Shares. The Company agrees that on or prior to such dates as the Securities Act shall require, the Company will (i) file and disclose in a prospectus supplement with the Commission under the applicable paragraph of Rule 424(b) under the Securities Act or (ii) disclose in its


 
35 [[5258451]] Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, as applicable, the number of Shares sold through the Agents under this Agreement or any Confirmation or Terms Agreement, the Net Proceeds to the Company, the compensation paid by the Company with respect to sales of Shares pursuant to this Agreement or any Confirmation or Terms Agreement during the relevant period and any other information regarding the Shares that the Company reasonably believes is required to comply with the Securities Act. The Company agrees to deliver such number of copies of each such prospectus supplement (if any) to each exchange or market on which such sales were effected as may be required by the rules or regulations of such exchange or market. If, to the knowledge of the Company, any filing required by Rule 424 in connection with an offering of Shares shall not have been made, or if the representations and warranties of the Company contained in this Agreement shall not be true and correct on the applicable Settlement Date (or date of sale of Shares pursuant to a Confirmation or Terms Agreement), the Company will offer to any person who has agreed to purchase Shares from or through the Agents (or, in the case of a sale to an Agent pursuant to a Terms Agreement, such Agent itself) the right to refuse to purchase and pay for such Shares. (n) Representation Dates; Certificate. On the date of this Agreement and on or prior to the date that the first Shares are sold pursuant to the terms of this Agreement or any Confirmation or Terms Agreement and (A) each time the Company (i) files the Prospectus relating to the Shares or amends or supplements the Registration Statement or the Prospectus relating to the Shares (other than a prospectus supplement filed in accordance with Section 7(m) of this Agreement) by means of a post-effective amendment, sticker or supplement but not by means of incorporation of documents by reference into the Registration Statement or the Prospectus relating to the Shares; (ii) files an Annual Report on Form 10-K under the Exchange Act; (iii) files its Quarterly Reports on Form 10-Q under the Exchange Act; or (iv) files a Current Report on Form 8-K containing amended financial information (other than an earnings release, to “furnish” information pursuant to Items 2.02 or 7.01 of Form 8-K, and other than a report on Form 8-K containing financial information of a tenant of the Company or its subsidiaries) under the Exchange Act and (B) upon a Suspension Rescission Date and as reasonably requested (each date of filing of one or more of the documents referred to in clauses (i) through (iv) above and any Suspension Rescission Date referred to in clause (B) shall be a “Representation Date”); the Company shall furnish the Agents and Forward Purchasers with a certificate, in the form attached hereto as Exhibit 7(n) within three (3) Trading Days of any Representation Date if requested by any Agent, Forward Purchaser or its counsel. The requirement to provide a certificate under this Section 7(n) is hereby waived for any Representation Date occurring at a time at which no Placement Notice is pending or at which no Confirmation or Terms Agreement is outstanding, which waiver shall continue until the earlier to occur of the date the Company delivers a Notice hereunder or enters into a Confirmation or Terms Agreement (which, in each case for such calendar quarter, shall be considered a Representation Date) and the next occurring Representation Date; provided, however, that such waiver shall not


 
36 [[5258451]] apply for any Representation Date referred to in clause (A)(i) and (ii) of this Section 7(n); provided further, however, that the obligation of the Company under this Section 7(n) shall be deferred during any Suspension Period and shall recommence upon any Suspension Rescission Date. Notwithstanding the foregoing, if the Company subsequently decides to sell Shares following a Representation Date when the Company relied on such waiver and did not provide the Agents and Forward Purchasers with a certificate under this Section 7(n), then before the Company delivers the Notice, executes a Terms Agreement or Confirmation Notice or any Agent sells any Shares (whether as Placement Shares (including Forward Hedge Shares sold pursuant to a Confirmation) or Shares sold pursuant to a Terms Agreement), the Company shall provide the Agents and Forward Purchasers with a certificate, in the form attached hereto as Exhibit 7(n), dated the date of such Notice, Confirmation or Terms Agreement. (o) Legal Opinion of Counsel for the Company. On or prior to the date that the first Shares are sold pursuant to the terms of this Agreement or any Confirmation or Terms Agreement and within three (3) Trading Days of any Representation Date with respect to which the Company is obligated to deliver a certificate in the form attached hereto as Exhibit 7(n) for which no waiver is applicable, the Company shall cause to be furnished to the Agents the written opinions of each of (i) O’Melveny & Myers LLP, (ii) Venable LLP and (iii) Fried, Frank, Harris, Shriver & Jacobson LLP, or other counsel satisfactory to the Agents and Forward Purchasers, in form and substance satisfactory to the Agents, the Forward Purchasers and their counsel, dated the date that each opinion is required to be delivered, substantially similar to the forms attached hereto as Exhibit 7(o)(1), Exhibit 7(o)(2) and Exhibit 7(o)(3), respectively, modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended or supplemented; provided, however, that in lieu of such opinions for subsequent Representation Dates, counsel may furnish the Agents and Forward Purchasers with a letter (a “Reliance Letter”) to the effect that the Agents and Forward Purchasers may rely on a prior opinion delivered under this Section 7(o) to the same extent as if it were dated the date of such letter (except that statements in such prior opinion shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented at such Representation Date). The obligation of the Company under this Section 7(o) shall be deferred during any Suspension Period and shall recommence upon a Suspension Rescission Date. (p) Comfort Letter. (i) On or prior to the date that the first Shares (including Forward Hedge Shares) are sold pursuant to the terms of this Agreement or any Confirmation or Terms Agreement and within three (3) Trading Days of any Representation Date with respect to which the Company is obligated to deliver a certificate in the form attached hereto as Exhibit 7(n) for which no waiver is applicable, the Company shall cause (a) PricewaterhouseCoopers LLP, independent public or certified public accountants for the Company, to furnish the Agents and Forward


 
37 [[5258451]] Purchasers a letter dated the date the letter is delivered and addressed to the Agents and Forward Purchasers, in form and substance satisfactory to the Agents and Forward Purchasers, (i) containing statements and information of the type ordinarily included in accountants’ “comfort letters” to underwriters, delivered according to Auditing Standard 6101 (or any successor bulletin), with respect to the audited and unaudited financial statements and certain financial information of the Company and its subsidiaries contained or incorporated by reference in the Registration Statement, the Prospectus, and each free writing prospectus, if any, and, with respect to each letter dated the date hereof only, the Prospectus and (ii) confirming that they are (A) independent public or certified public accountants as required by the Securities Act and the Exchange Act and (B) in compliance with the applicable requirements relating to the qualification of accountants under Rule 2-01 of Regulation S-X (the “PwC Comfort Letter”, and the first such letter, the “Initial PwC Comfort Letter”) and (b) PricewaterhouseCoopers LLP to update the Initial Comfort Letter with any information that would have been included in the Initial Comfort Letter had it been given on such later date and modified as necessary to relate to the Registration Statement and the Prospectus, as amended and supplemented to the date of such letter. The obligations of the Company under this Section 7(p)(i) shall be deferred during any Suspension Period and shall recommence upon a Suspension Rescission Date. (ii) On or prior to the date that the first Shares (including Forward Hedge Shares) are sold pursuant to the terms of this Agreement or any Confirmation or Terms Agreement and within three (3) Trading Days of any Representation Date with respect to which the Company is obligated to deliver a certificate in the form attached hereto as Exhibit 7(n) for which no waiver is applicable, but only for so long as financial statements of Care Capital Properties, Inc. (“CCP”) and its subsidiaries are required to be presented in the Registration Statement pursuant to Rule 3- 05(b)(4)(iii) of Regulation S-X, the Company shall cause KPMG LLP, independent public or certified public accountants for CCP, to furnish the Agents and Forward Purchasers a letter dated the date the letter is delivered and addressed to the Agents and Forward Purchasers, in form and substance satisfactory to the Agents and Forward Purchasers, containing statements and information of the type ordinarily included in accountants’ “comfort letters” to underwriters, delivered according to Auditing Standard 6101 (or any successor bulletin), with respect to the audited and unaudited financial statements and certain financial information of CCP and its subsidiaries contained or incorporated by reference in the Registration Statement, the Prospectus, and each free writing prospectus, if any, and, with respect to each letter dated the date hereof only, the Prospectus (the “KPMG Comfort Letter”, and the first such letter, the “Initial KPMG Comfort Letter”; the KPMG Comfort Letter, together with the PwC Comfort Letter, the “Comfort Letters”).


 
38 [[5258451]] (q) Insurance. Each of the Company and its subsidiaries shall maintain, or cause to be maintained, insurance in such amounts and with such deductibles and covering such risks as it reasonably deems adequate for their businesses, and the real property owned by the Company and its subsidiaries is appropriately insured by institutions the Company reasonably believes to be financially sound. (r) Compliance with Laws. The Company and each of its subsidiaries shall maintain, or cause to be maintained, all material environmental permits, licenses and other authorizations required by federal, state, local or foreign law in order to conduct their respective businesses as described in the Prospectus, and the Company and each of its subsidiaries shall conduct their businesses, or cause their businesses to be conducted, in substantial compliance with such permits, licenses and authorizations and with applicable environmental laws, except where the failure to maintain or be in compliance with such permits, licenses and authorizations could not reasonably be expected to result in a Material Adverse Change. (s) REIT Treatment. The Company currently intends to continue to qualify as a REIT under the Code and to use commercially reasonable efforts to enable the Company to continue to meet the requirements for qualification and taxation as a REIT under the Code for subsequent tax years that include any portion of the term of this Agreement or any Terms Agreement. (t) Securities Act and Exchange Act. The Company will use its commercially reasonable efforts to comply with all requirements imposed upon it by the Securities Act and the Exchange Act as from time to time in force, so far as necessary to permit the continuance of sales of, or dealings in, the Shares as contemplated by the provisions hereof and the Prospectus, including the filing of any and all documents required to be filed with the Commission pursuant to Section 13, 14 or 15 of the Exchange Act in the manner and within the time periods required by the Exchange Act. (u) No Offer to Sell. Other than a free writing prospectus approved in advance in writing by the Company and an Agent in its capacity as agent hereunder or as principal pursuant to a Terms Agreement, the Company (including its agents and representatives, other than an Agent or Forward Purchaser in its capacity as such) will not, directly or indirectly, use, authorize, approve or refer to any free writing prospectus relating to the Shares to be sold by an Agent as agent hereunder or as principal pursuant to a Terms Agreement. (v) Filing of Free Writing Prospectuses. The Company shall not take any action that would result in any Agent, any Forward Purchaser or the Company being required to file with the Commission pursuant to Rule 433(d) under the Securities Act a free writing prospectus prepared by or on behalf of an Agent that such Agent otherwise would not have been required to file thereunder. (w) Blue Sky Compliance. The Company (i) shall cooperate with the Agents, Forward Purchasers and counsel for the Agents and Forward Purchasers to qualify


 
39 [[5258451]] or register the Shares for sale under (or obtain exemptions from the application of) the state securities or blue sky laws or Canadian provincial securities laws of those jurisdictions designated by any Agent or Forward Purchaser, (ii) shall comply with such laws and (iii) shall continue such qualifications, registrations and exemptions in effect so long as required for the distribution of the Shares. The Company shall not be required to qualify as a foreign corporation or to take any action that would subject it to general service of process in any such jurisdiction where it is not presently qualified or where it would be subject to taxation as a foreign corporation. The Company will advise the Agents and Forward Purchasers promptly of the suspension of the qualification or registration of (or any such exemption relating to) the Shares for offering, sale or trading in any jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event of the issuance of any order suspending such qualification, registration or exemption, the Company shall use its reasonable efforts to obtain the withdrawal thereof at the earliest possible moment. (x) Transfer Agent. The Company shall engage and maintain, at its expense, a registrar and transfer agent for the Shares. (y) Company to Provide Copy of the Prospectus in Form that May Be Downloaded from the Internet. The Company shall cause to be prepared and delivered, at its expense, within one business day from the effective date of this Agreement, to the Agents and Forward Purchasers an “electronic Prospectus” to be used by the Agents in connection with the offering and sale of the Shares. As used herein, the term “electronic Prospectus” means a form of the Prospectus, and any amendment or supplement thereto, that meets each of the following conditions: (i) it shall be encoded in an electronic format satisfactory to the Agents and Forward Purchasers that may be transmitted electronically by the Agents and Forward Purchasers to offerees and purchasers of the Shares; (ii) it shall disclose the same information as the paper Prospectus, except to the extent that graphic and image material cannot be disseminated electronically, in which case such graphic and image material shall be replaced in the electronic Prospectus with a fair and accurate narrative description or tabular representation of such material, as appropriate; and (iii) it shall be in or convertible into a paper format or an electronic format, satisfactory to the Agents and Forward Purchasers, that will allow investors to store and have continuously ready access to the Prospectus at any future time, without charge to investors (other than any fee charged for subscription to the Internet as a whole and for on-line time). (z) Future Reports to the Agents and Forward Purchasers. For so long as the delivery of a prospectus is required in connection with the offer and sale of the Shares, the Company will furnish to the Agents and Forward Purchasers at the applicable addresses set forth on Schedule 4 attached hereto: (i) as soon as practicable after the filing thereof, copies of each proxy statement, Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other report filed by the Company with the Commission, FINRA or any securities exchange; and (ii) as soon as available, copies of any report or communication of the Company


 
40 [[5258451]] mailed generally to holders of its capital stock; provided that, in each case, the Company will be deemed to have furnished the foregoing documents as required by this Section to the extent they are filed with the Commission and publicly accessible on EDGAR. (aa) Renewal of Registration Statement. The date of this Agreement or any Terms Agreement is not more than three years subsequent to the initial effective date of the Registration Statement (the “Renewal Date”). If, immediately prior to the Renewal Date, this Agreement or any Confirmation or Terms Agreement has not terminated and a prospectus is required to be delivered or made available by any Agent or Forward Purchaser under the Securities Act or the Exchange Act in connection with the sale of Shares, the Company will, prior to the Renewal Date, file, if it has not already done so, a new shelf registration statement or, if applicable, an automatic shelf registration statement relating to such Shares, and, if such registration statement is not an automatic shelf registration statement, will use its commercially reasonable efforts to cause such registration statement to be declared effective within 60 days after the Renewal Date, and will take all other reasonable actions necessary or appropriate to permit the public offer and sale of such Shares to continue as contemplated in the expired registration statement relating to such Securities. References herein to the “Registration Statement” shall include such new shelf registration statement or automatic shelf registration statement, as the case may be. (bb) No Stabilization or Manipulation. None of the Company or its subsidiaries, or any affiliate of the Company or its subsidiaries, will take, directly or indirectly, any action which is designed, or would be expected, to cause or result in, or which constitutes or might reasonably be expected to constitute, the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any Shares or to result in a violation of Regulation M under the Exchange Act. (cc) Reservation of Shares of Common Stock. The Company shall reserve and keep available at all times, free of preemptive rights, a number of authorized and unissued shares of Common Stock sufficient to enable the Company to satisfy its obligations to issue all Shares and Confirmation Shares pursuant to this Agreement, any Confirmation and any Terms Agreement. 8. Covenant of Each Agent and Forward Purchaser. Each Agent and Forward Purchaser covenants with the Company not to take any action that would result in the Company being required to file with the Commission pursuant to Rule 433(d) under the Securities Act a free writing prospectus prepared by or on behalf of such Agent or Forward Purchaser that otherwise would not be required to be filed by the Company thereunder, but for the action of such Agent or Forward Purchaser. 9. Conditions to the Agents’ Obligations. The obligations of the Agents and Forward Purchasers hereunder and under each Confirmation and Terms Agreement, as applicable, shall be subject to the continuing accuracy of the representations and warranties on the


 
41 [[5258451]] part of the Company set forth in Section 6 hereof, to the timely performance by the Company of its covenants and other obligations hereunder and under each Confirmation and Terms Agreement, as applicable, to the completion by the Agents and Forward Purchasers of a due diligence review satisfactory to each Agent and each Forward Purchaser in its reasonable judgment and to the continuing satisfaction (or waiver by the Agents and Forward Purchasers in their sole discretion) of each of the following additional conditions: (a) Registration Statement Effective. The Registration Statement shall be effective and shall be available for (i) all sales of Placement Shares issued pursuant to all prior Placement Notices; (ii) the sale of all Placement Shares contemplated to be issued by any Placement Notice; and (iii) all sales of Shares (including Forward Hedge Shares) pursuant to any Confirmation or Terms Agreement. (b) No Material Notices. None of the following events shall have occurred and be continuing: (i) receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; (ii) receipt by the Company or any of its subsidiaries of any request for additional information from the Commission or any other self-regulatory organization or federal, state, local or foreign governmental or regulatory commission, board, authority, agency, court, administrative or other governmental body having jurisdiction over the Company, during the period of effectiveness of the Registration Statement, the response to which would require any post- effective amendments or supplements to the Registration Statement or the Prospectus; and (iii) the occurrence of any event that makes any material statement made in the Registration Statement or the Prospectus or any material document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in the Registration Statement, related Prospectus or such documents so that, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading and that, in the case of the Prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. (c) No Misstatement or Material Omission. The Registration Statement and Prospectus, and any amendment or supplement thereto, shall not contain any untrue statement of a material fact, or omit to state a material fact that is required to be stated therein or is necessary to make the statements therein not misleading. (d) Material Changes. Except as otherwise disclosed in the Prospectus, or disclosed in the Company’s reports filed with the Commission, there shall not have occurred (i) any Material Adverse Change in the judgment of the Agents and Forward Purchasers and (ii) any downgrading in the rating accorded any


 
42 [[5258451]] securities of the Company or any of its subsidiaries by any “nationally recognized statistical rating organization” as such term is defined in Section 3(a)(62) of the Exchange Act that is so material as to make it impracticable or inadvisable in the sole judgment of the Agents and Forward Purchasers to proceed with the offering of the Shares on the terms and in the manner contemplated in the Prospectus. (e) Company Counsel Legal Opinion. The Agents and Forward Purchasers shall have received the opinions or reliance letter, as applicable, of each of (i) O’Melveny & Myers LLP, (ii) Venable LLP and (iii) Fried, Frank, Harris, Shriver & Jacobson LLP required to be delivered pursuant to Section 7(o) on or before the date on which such delivery of such opinion is required pursuant to Section 7(o). (f) Opinion of Counsel for the Agents and Forward Purchasers. On or prior to the date that the first Shares (including Forward Hedge Shares) are sold pursuant to the terms of this Agreement, any Confirmation or any Terms Agreement and within three (3) Trading Days of each Representation Date with respect to which the Company is obligated to deliver a certificate in the form attached hereto as Exhibit 7(n) for which no waiver is applicable, the Agents and Forward Purchasers shall have received from Cravath, Swaine & Moore LLP, counsel for the Agents and Forward Purchasers, such opinion or opinions, dated the date that the opinion is required to be delivered, with respect to such matters as the Agents and Forward Purchasers may require, and the Company shall have furnished to such counsel such documents as they request for the purpose of enabling them to pass upon such matters; provided, however, that the obligation of Cravath, Swaine & Moore LLP under this Section 9(f) shall be deferred during any Suspension Period and shall recommence upon a Suspension Rescission Date. (g) Comfort Letter. The Agents and Forward Purchasers shall have received the Comfort Letters required to be delivered pursuant to Sections 7(p)(i) and 7(p)(ii) on or before the date on which such delivery of such letters is required pursuant to Sections 7(p)(i) and 7(p)(ii). (h) Representation Certificate. The Agents and Forward Purchasers shall have received the certificate required to be delivered pursuant to Section 7(n) on or before the date on which delivery of such certificate is required pursuant to Section 7(n). (i) No Stop Order. No stop order suspending the effectiveness of the Registration Statement or any post-effective amendment to the Registration Statement shall be in effect and no proceedings for such purpose, pursuant to Rule 401(g)(2) or pursuant to Section 8A of the Securities Act, shall have been instituted or are pending or, to the knowledge of the Company, threatened by the Commission. (j) No Suspension. Trading in the Shares shall not have been suspended on the Exchange.


 
43 [[5258451]] (k) Other Materials. On each date on which the Company is required to deliver a certificate pursuant to Section 7(n), the Agents, Forward Purchasers and their counsel shall have received such information, documents and opinions as they may reasonably request for the purposes of enabling them to pass upon the issuance and sale of the Shares as contemplated herein, in any applicable Confirmation or Terms Agreement, or in order to evidence the accuracy of any of the representations and warranties, or the satisfaction of any of the conditions or agreements, herein contained, including, without limitation, certain certificates signed by the Chief Financial Officer of the Company in his capacity as such on behalf of the Company, in the form reasonably requested by the Agents; and all proceedings taken by the Company in connection with the issuance and sale of the Shares as contemplated herein and in connection with the other transactions contemplated by this Agreement, any Confirmation or Terms Agreement shall be satisfactory in form and substance to the Agents, Forward Purchasers and their counsel. (l) Securities Act Filings Made. All filings with the Commission required by Rule 424 under the Securities Act to have been filed prior to the issuance of any Notice hereunder or the commencement of any sales pursuant to any Confirmation or Terms Agreement shall have been made within the applicable time period prescribed for such filing by Rule 424. (m) Approval for Listing. Either (i) the Shares shall have been approved for listing on the Exchange, subject only to notice of issuance, or (ii) the Company shall have filed an application for listing of the Shares on the Exchange at, or prior to, the issuance of any Notice or the commencement of any sales pursuant to any Confirmation or Terms Agreement. (n) Actively-Traded Security. The Common Stock shall be an “actively-traded security” exempted from the requirements of Rule 101 of Regulation M under the Exchange Act by subsection (c)(1) of such rule. (o) No Termination Event. There shall not have occurred any event that would permit the Agents to terminate this Agreement, any Confirmation or any Terms Agreement pursuant to Section 13(a). If any condition specified in this Section 9 is not satisfied when and as required to be satisfied, this Agreement, any Confirmation or any Terms Agreement may be terminated by any Agent or Forward Purchaser, as applicable (as to itself only), by notice to the Company at any time, which termination shall be without liability on the part of any party to any other party, except that Section 7(h), Section 9 and Section 10 shall at all times be effective and shall survive such termination. 10. Indemnification. (a) Indemnification of Each Agent and Each Forward Purchaser. The Company agrees to indemnify and hold harmless each Agent and each Forward Purchaser,


 
44 [[5258451]] their affiliates, officers, directors, employees and agents, and each person, if any, who controls such Agent or Forward Purchaser within the meaning of the Securities Act or the Exchange Act against any loss, claim, damage, liability or expense, as incurred, to which such Agent or Forward Purchaser or such affiliate, officer, director, employee, agent or controlling person may become subject, under the Securities Act, the Exchange Act, other federal or state statutory law or regulation, or at common law or otherwise (including in settlement of any litigation), insofar as such loss, claim, damage, liability or expense (or actions in respect thereof as contemplated below) arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Securities Act, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in the Prospectus or any free writing prospectus that the Company has used, referred to or filed, or is required to file, pursuant to Rule 433(d) of the Securities Act or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; or (iii) any act or failure to act or any alleged act or failure to act by such Agent or Forward Purchaser in connection with, or relating in any manner to, the Shares or the offering contemplated hereby, and which is included as part of or referred to in any loss, claim, damage, liability or action arising out of or based upon any matter covered by clause (i) or (ii) above; and to reimburse such Agent or Forward Purchaser and each such affiliate, officer, director, employee, agent or controlling person for any and all expenses (including the fees and disbursements of counsel chosen by such Agent or Forward Purchaser) as such expenses are reasonably incurred by such Agent or Forward Purchaser or such affiliate, officer, director, employee, agent or controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action; provided, however, that the foregoing indemnity agreement shall not apply to any loss, claim, damage, liability or expense to the extent, but only to the extent, arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with written information relating to such Agent or Forward Purchaser furnished to the Company by such Agent expressly for use in the Registration Statement, any such free writing prospectus or the Prospectus (or any amendment or supplement thereto), it being understood and agreed that the only such information furnished by such Agent or Forward Purchaser to the Company consists of the Agent Information. The indemnity agreement set forth in this Section 10(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Indemnification of the Company, Its Directors and Officers. Each Agent and each Forward Purchaser agrees, severally and not jointly, to indemnify and hold harmless the Company, each of its directors, each of its officers who signed the


 
45 [[5258451]] Registration Statement and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act, against any loss, claim, damage, liability or expense, as incurred, to which the Company, or any such director, officer or controlling person may become subject, under the Securities Act, the Exchange Act, or other federal or state statutory law or regulation, or at common law or otherwise (including in settlement of any litigation, if such settlement is effected with the written consent of such Agent or Forward Purchaser), insofar as such loss, claim, damage, liability or expense (or actions in respect thereof as contemplated below) arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Securities Act, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in the Prospectus or any free writing prospectus that the Company has used, referred to or filed, or is required to file, pursuant to Rule 433(d) of the Securities Act or the Prospectus (or any amendment or supplement thereto), or arises out of or is based upon the omission or alleged omission to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case of clauses (i) and (ii) above to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, the Prospectus or such free writing prospectus that the Company has used, referred to or filed, or is required to file, pursuant to Rule 433(d) of the Securities Act, in reliance upon and in conformity with the Agent Information, and to reimburse the Company, or any such director, officer or controlling person for any legal and other expense reasonably incurred by the Company, or any such director, officer or controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action. The Company hereby acknowledges that, with respect to each Agent and each Forward Purchaser, “Agent Information” shall mean only the information that such Agent or Forward Purchaser has furnished to the Company expressly for use in the Registration Statement, the Prospectus and any free writing prospectus that the Company has filed, or is required to file, pursuant to Rule 433(d) of the Securities Act or the Prospectus (or any amendment or supplement thereto), which consists exclusively of the names of the Agents and Forward Purchasers set forth on the front and back cover of the Prospectus Supplement. The indemnity agreement set forth in this Section 10(b) shall be in addition to any liabilities that such Agent or Forward Purchaser may otherwise have. (c) Notifications and Other Indemnification Procedures. Promptly after receipt by an indemnified party under this Section 10 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party under this Section 10, notify the indemnifying party


 
46 [[5258451]] in writing of the commencement thereof, but the omission so to notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party hereunder to the extent it is not prejudiced as a proximate result of such failure, and in any event will not relieve it from any liability which it may have to any indemnified party otherwise than under subsection (a) or (b) above. In case any such action is brought against any indemnified party and such indemnified party seeks or intends to seek indemnity from an indemnifying party, the indemnifying party will be entitled to participate in and (to the extent that it shall elect, jointly with all other indemnifying parties similarly notified, by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party) to assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that a conflict may arise between the positions of the indemnifying party and the indemnified party in conducting the defense of any such action or that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of such indemnifying party’s election so to assume the defense of such action and approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under this Section 10 for any legal expenses subsequently incurred by such indemnified party in connection with the defense thereof unless (i) the indemnified party shall have employed separate counsel in accordance with the proviso to the preceding sentence (it being understood, however, that the indemnifying party shall not be liable for the fees and expenses of more than one separate counsel (together with local counsel), representing the indemnified parties who are parties to such action), which counsel (together with any local counsel) for the indemnified parties shall be selected by the applicable Agent(s) and Forward Purchaser(s) (in the case of counsel for the indemnified parties referred to in Section 10(a) above) or by the Company (in the case of counsel for the indemnified parties referred to in Section 10(b) above)); (ii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of commencement of the action; or (iii) the indemnifying party has authorized in writing the employment of counsel for the indemnified party at the expense of the indemnifying party, in each of which cases the fees and expenses of counsel shall be at the expense of the indemnifying party and shall be paid as they are incurred. (d) Settlements. The indemnifying party under this Section 10 shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there shall be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage, liability or expense by reason of such settlement or judgment.


 
47 [[5258451]] Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by Section 10(c) hereof, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding and does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. 11. Contribution. If the indemnification provided for in Section 10 is for any reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities or expenses referred to therein, then each indemnifying party shall severally contribute to the aggregate amount paid or payable by such indemnified party, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to therein (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, on the one hand, and the applicable Agents and Forward Purchasers, on the other hand, from the offering of the Shares pursuant to this Agreement or to any Confirmation or Terms Agreement or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company, on the one hand, and the applicable Agents and Forward Purchasers, on the other hand, in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company, on the one hand, and the applicable Agents and Forward Purchasers, on the other hand, in connection with the offering of the Shares pursuant to this Agreement or any Confirmation or Terms Agreement shall be deemed to be in the same respective proportions as the sum of (i) the total Net Proceeds received by the Company from the offering of Placement Shares pursuant to an applicable Placement (which shall be deemed to include the proceeds that would be received by the Company upon physical settlement of any Placement Shares sold under any Confirmation assuming that the aggregate amount payable by the applicable Forward Purchaser under such Confirmation is equal to the aggregate amount of the net proceeds realized upon the sales of the Placement Shares) and (ii) the net proceeds received by the Company pursuant to a sale of Shares under an applicable Terms Agreement, bears to the total compensation received by the applicable Agents and Forward Purchasers, or to which the applicable Agents and Forward Purchasers are entitled to receive but have not yet received (whether through the sale of Shares through a Placement or pursuant to a Terms Agreement). For the


 
48 [[5258451]] avoidance of doubt, the “Net Proceeds” received by a Forward Purchaser upon the sale of Shares by an Agent as forward seller shall be calculated based on the aggregate value of the Spread (as defined in the related Confirmation) retained by such Forward Purchaser in respect of the forward stock purchase transaction related to such Shares (net of any hedging and other costs associated with such transaction and the related Confirmation). The relative fault of the Company, on the one hand, and the applicable Agents and Forward Purchasers, on the other hand, shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company, on the one hand, or the applicable Agents and Forward Purchasers, on the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 10(c), any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim. The provisions set forth in Section 10(c) with respect to notice of commencement of any action shall apply if a claim for contribution is to be made under this Section 11; provided, however, that no additional notice shall be required with respect to any action for which notice has been given under Section 10(c) for purposes of indemnification. The Company, the Agents and the Forward Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 11 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in this Section 11. Notwithstanding the provisions of this Section 11, an Agent or Forward Purchaser shall not be required to contribute any amount in excess of the compensation received by it in connection with a sale of Shares to the public through (i) a Placement and (ii) any applicable Confirmation or Terms Agreement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 11, each officer, director, affiliate, employee and agent of an Agent or Forward Purchaser and each person, if any, who controls such Agent or Forward Purchaser within the meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as such Agent or Forward Purchaser, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of the Securities Act and the Exchange Act shall have the same rights to contribution as the Company. 12. Representations and Indemnities to Survive Delivery. The respective indemnities, agreements, representations, warranties and other statements of the Company, of its officers and of the Agents and Forward Purchasers set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf of the Agents, the Forward Purchasers or the Company or any of its or their


 
49 [[5258451]] officers, directors, affiliates, employees or agents or any controlling person, as the case may be, and, anything herein to the contrary notwithstanding, will survive delivery of and payment for the Shares sold under this Agreement and pursuant to any Confirmation or any Terms Agreement, and any termination of this Agreement. 13. Termination of This Agreement. (a) Each Agent and each Forward Purchaser shall have the right, by giving notice as hereinafter specified at any time, to terminate its obligations pursuant to a Placement Notice or any Terms Agreement if (i) trading in any of the Company’s securities shall have been suspended or limited by the Commission or by the Exchange or in any over-the-counter market, or trading in securities generally on either the Nasdaq Stock Market or the New York Stock Exchange shall have been suspended or limited, or minimum or maximum prices shall have been generally established on any of such stock exchanges by the Commission or FINRA; (ii) a general banking moratorium shall have been declared by any of federal, New York or California authorities; (iii) there shall have occurred any outbreak or escalation of national or international hostilities or any crisis or calamity, or any change in the United States or international financial markets, or any substantial change or development involving a prospective substantial change in the United States’ or international political, financial or economic conditions, as in the judgment of such Agent or Forward Purchaser is material and adverse and makes it impracticable to market the Shares in the manner and on the terms described in the Prospectus or to enforce contracts for the sale of securities; (iv) in the judgment of such Agent or Forward Purchaser there shall have occurred any Material Adverse Change; (v) the Company or any of its subsidiaries shall have sustained a loss by strike, fire, flood, earthquake, accident or other calamity of such character as in the judgment of such Agent or Forward Purchaser may interfere materially with the conduct of the business and operations of the Company and any of its subsidiaries taken as a whole regardless of whether or not such loss shall have been insured; or (vi) any material disruption of settlements of securities or clearance services in the United States that would materially impair settlement and clearance with respect to the Shares. Any termination pursuant to this Section 13(a) shall be without liability on the part of (A) the Company to such Agent or Forward Purchaser, except that the Company shall be obligated to reimburse the expenses of such Agent pursuant to Section 7(h) hereof, (B) such Agent or Forward Purchaser to the Company, or (C) of any party hereto to any other party except that the provisions of Section 10 and Section 11 shall at all times be effective and shall survive such termination. (b) The Company shall have the right to terminate this Agreement in its sole discretion at any time after the date of this Agreement. Any such termination hereunder shall be without liability of any party to any other party except that the provisions of Section 5(c), 7(h), Section 10, Section 11, Section 18 and Section 19 hereof shall remain in full force and effect notwithstanding such termination.


 
50 [[5258451]] (c) Each Agent and each Forward Purchaser shall have the right to terminate its obligations hereunder or pursuant to any Terms Agreement (in each case, as to itself only) in its sole discretion at any time after the date of this Agreement. Any such termination shall be without liability of any party to any other party except that the provisions of Section 7(h), Section 10, Section 11, Section 18 and Section 19 hereof shall remain in full force and effect notwithstanding such termination. (d) Unless earlier terminated pursuant to this Section 13, this Agreement and any Terms Agreement shall automatically terminate upon the issuance and sale of all of the Shares through the Agents on the terms and subject to the conditions set forth herein; provided that the provisions of Section 7(h), Section 10, Section 11, Section 18 and Section 19 hereof shall remain in full force and effect notwithstanding such termination. (e) This Agreement shall remain in full force and effect unless terminated pursuant to Sections 13(a), (b), (c) or (d) above or otherwise by mutual agreement of the parties; provided, however, that any such termination by mutual agreement shall in all cases be deemed to provide that Section 7(h), Section 10, Section 11, Section 18 and Section 19 shall remain in full force and effect. (f) Any termination of this Agreement, any Confirmation or any Terms Agreement shall be effective on the date specified in such notice of termination; provided, however, that such termination shall not be effective until the close of business on the date of receipt of such notice by such Agent, Forward Purchaser or the Company, as the case may be. If such termination shall occur prior to the Settlement Date for any sale of Placement Shares, or prior to the Time of Delivery (as defined in Exhibit 5) for any sale of Shares pursuant to a Terms Agreement, such Shares shall settle in accordance with the provisions of this Agreement, such Confirmation or such Terms Agreement, as applicable. (g) Notwithstanding anything to the contrary contained in this Agreement, no termination of this Agreement shall effect the validity, effectiveness or enforceability of any executed Confirmation or Terms Agreement and any such executed Confirmation and Terms Agreement shall remain in full force and effect notwithstanding such termination (subject to the terms and conditions of such Confirmation or Terms Agreement). (h) Notwithstanding anything to the contrary contained in this Agreement, no termination of this Agreement shall affect or impair the Agents’ or, if applicable, the Placement Forward Purchasers’ respective rights or obligations with respect to Shares sold or borrowed and sold under this Agreement, or, if applicable, any Confirmation prior to such termination (including with respect to Shares sold that have not yet settled and, in the case of any Shares borrowed by or on behalf of a Forward Purchaser and sold by or through an Agent in connection with a Forward Sale, the obligation to enter into the resulting Confirmation).


 
51 [[5258451]] 14. Notices. All communications hereunder shall be in writing and shall be mailed, hand delivered or emailed and confirmed to the parties hereto as follows: If to an Agent or Forward Purchaser: The applicable Agent or Forward Purchaser at the address set forth in Schedule 2 hereto. with a copy to: Cravath, Swaine & Moore LLP 825 Eighth Avenue New York, New York 10019 Attention: Sasha Rosenthal-Larrea Email: srosenthal-larrea@cravath.com If to the Company: Sabra Health Care REIT, Inc. 18500 Von Karman Avenue, Suite 550 Irvine, California 92612 Attention: Richard K. Matros Email: rmatros@sabrahealth.com with a copy to: O’Melveny & Myers LLP 610 Newport Center Drive, 17th Floor Newport Beach, California 92660 Attention: Andor D. Terner Email: aterner@omm.com Any party hereto may change the address for receipt of communications by giving written notice to the others. 15. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company, the Agents and the Forward Purchasers and their respective successors and the affiliates, controlling persons, officers, directors, employees and agents referred to in Section 10 hereof. References to any of the parties contained in this Agreement shall be deemed to include the successors and permitted assigns of such party. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. No party may assign its rights or obligations under this Agreement without the prior written consent of the other parties; provided, however, that each Agent and each Forward Purchaser may assign its rights and obligations hereunder to an affiliate of such Agent or Forward Purchaser without


 
52 [[5258451]] obtaining the Company’s or any other Agent’s or Forward Purchaser’s consent. The term “successors” shall not include any purchaser of the Shares as such from the Agents or Forward Purchasers merely by reason of such purchase. 16. Adjustments for Stock Splits. The parties acknowledge and agree that all stock-related numbers contained in this Agreement shall be adjusted to take into account any stock split, stock dividend or similar event effected with respect to the Shares. 17. Entire Agreement; Amendment; Severability. This Agreement constitutes the entire agreement of the parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof. This Agreement may not be amended or modified unless in writing by all of the parties hereto, and no condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to benefit. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable as written by a court of competent jurisdiction, then such provision shall be given full force and effect to the fullest possible extent that it is valid, legal and enforceable, and the remainder of the terms and provisions herein shall be construed as if such invalid, illegal or unenforceable term or provision was not contained herein, but only to the extent that giving effect to such provision and the remainder of the terms and provisions hereof shall be in accordance with the intent of the parties as reflected in this Agreement. The Section headings herein are for the convenience of the parties only and shall not affect the construction or interpretation of this Agreement. 18. Applicable Law; Consent to Jurisdiction. This Agreement, any Confirmation and any Terms Agreement, and any claim, controversy or dispute arising under or related thereto, shall be governed by and construed in accordance with the internal laws of the State of New York applicable to agreements made and to be performed in such state. Any legal suit, action or proceeding arising out of or based upon this Agreement, any Confirmation, any Terms Agreement or the transactions contemplated hereby or thereby shall be instituted in the federal courts of the United States of America located in the Borough of Manhattan in the City of New York or the courts of the State of New York in each case located in the Borough of Manhattan in the City of New York (collectively, the “Specified Courts”), and each party irrevocably submits to the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a judgment of any such court, as to which such jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding. Service of any process, summons, notice or document by mail to such party’s address set forth above shall be effective service of process for any suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such suit, action or other proceeding brought in any such court has been brought in an inconvenient forum. Notwithstanding the foregoing, this Agreement does not prohibit or restrict the Company from filing an arbitration claim in the FINRA arbitration forum as specified in FINRA rules.


 
53 [[5258451]] 19. Waiver of Jury Trial. The Company, each Agent and each Forward Purchaser each hereby irrevocably waive any right it may have to a trial by jury in respect of any claim based upon or arising out of this Agreement, any Confirmation, any Terms Agreement or any transaction contemplated hereby or thereby. 20. Absence of Fiduciary Relationship. The Company acknowledges and agrees that: (a) Each Agent and each Forward Purchaser has been retained solely to act as agent in the capacity of an arm’s-length contractual counterparty to the Company in connection with the sale of the Shares and that no fiduciary, advisory or agency relationship between the Company and any Agent or Forward Purchaser has been created in respect of any of the transactions contemplated by this Agreement, any Confirmation or any Terms Agreement, irrespective of whether such Agent or Forward Purchaser has advised or is advising the Company on other matters; (b) the Company is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated by this Agreement, any Confirmation and any Terms Agreement; (c) the Company has been advised that the Agents and Forward Purchasers and their affiliates are engaged in a broad range of transactions which may involve interests that differ from those of the Company and that the Agents and Forward Purchasers have no obligation to disclose such interests and transactions to the Company by virtue of any fiduciary, advisory or agency relationship; and (d) the Company waives, to the fullest extent permitted by law, any claims it may have against the Agents or Forward Purchasers for breach of fiduciary duty or alleged breach of fiduciary duty and agrees that the Agents and Forward Purchasers shall have no liability (whether direct or indirect) to the Company in respect of such a fiduciary claim or to any person asserting a fiduciary duty claim on behalf of or in right of the Company, including stockholders, partners, employees or creditors of the Company. 21. Counterparts. This Agreement, any Confirmation and any Terms Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Agreement, any Confirmation or any Terms Agreement by one party to the other made by telecopier, facsimile or other electronic transmission (i.e., a “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart hereof. 22. Definitions. As used in this Agreement, the following terms have the respective meanings set forth below: (a) “Applicable Time” means the date of this Agreement, each Representation Date, the date on which a Notice is given, any date on which Placement Shares (including Forward Hedge Shares) are sold hereunder, each Settlement Date and each “Trade Date”, “Effective Date” and “Settlement Date” (each as defined


 
54 [[5258451]] under the applicable Confirmation), or such other time as agreed to by the Company, the Agents and the Forward Purchasers. (b) “GAAP” means United States generally accepted accounting principles, applied on a consistent basis throughout the periods involved. (c) “BHC Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k). (d) “Covered Entity” means any of the following: (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b). (e) “Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable. (f) “U.S. Special Resolution Regime” means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder. 23. Patriot Act. In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the Agents and Forward Purchasers are required to obtain, verify and record information that identifies their respective clients, including the Company, which information may include the name and address of their respective clients, as well as other information that will allow the Agents and Forward Purchasers to properly identify their respective clients. 24. Recognition of the U.S. Special Resolution Regimes. (a) In the event that any Agent or Forward Purchaser that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from such Agent or Forward Purchaser of this Agreement, any Confirmation or any Terms Agreement, and any interest and obligation in or under this Agreement, any Confirmation or any Terms Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, any Confirmation or any Terms Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.


 
55 [[5258451]] (b) In the event that any Agent or Forward Purchaser that is a Covered Entity or a BHC Act Affiliate of such Agent or Forward Purchaser becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement, any Confirmation or any Terms Agreement that may be exercised against such Agent or Forward Purchaser are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement, any Confirmation or any Terms Agreement were governed by the laws of the United States or a state of the United States. Each of the parties hereto acknowledges that it is a sophisticated business person who was adequately represented by counsel during negotiations regarding the provisions hereof, including, without limitation, the indemnification provisions of Section 10 and the contribution provisions of Section 11, and is fully informed regarding said provisions. Each of the parties hereto further acknowledges that the provisions of Sections 10 and 11 hereto fairly allocate the risks in light of the ability of the parties to investigate the Company, its affairs and its business in order to assure that adequate disclosure has been made in the Registration Statement, each free writing prospectus and the Prospectus (and any amendments and supplements thereto), as required by the Securities Act and the Exchange Act. [Signature Pages Follow]


 


 


 
[Signature Page to Equity Distribution Agreement] [[5258451]] ACCEPTED as of the date first-above written: BMO CAPITAL MARKETS CORP., as Agent by Name: Nick Stamou Title: Director, Derivatives Operations BANK OF MONTREAL, as Forward Purchaser by Name: Andrew Henderson Title: Director, Derivatives Operations


 
[Signature Page to Equity Distribution Agreement] [[5258451]] ACCEPTED as of the date first-above written: BOFA SECURITIES, INC., as Agent by Name: Gray Hampton Title: Managing Director BANK OF AMERICA, N.A., as Forward Purchaser by Name: Gray Hampton Title: Managing Director


 


 


 


 


 


 


 


 


 


 
[Signature Page to Equity Distribution Agreement] [[5258451]] ACCEPTED as of the date first-above written: MUFG SECURITIES AMERICAS INC., as Agent by Name: Jason Demark Title: Director MUFG SECURITIES EMEA PLC, as Forward Purchaser by Name: Title:


 


 


 


 


 


 


 
[Signature Page to Equity Distribution Agreement] [[5258451]] ACCEPTED as of the date first-above written: STIFEL, NICOLAUS & COMPANY, INCORPORATED, as Agent by Name: Title:


 


 


 
SCHEDULE 1-A [[5258451]] FORM OF DIRECT INSTRUCTION NOTICE From: [ ] Cc: [ ] To: [ ] Subject: Direct Sale Notice Ladies and Gentlemen: Pursuant to the terms and subject to the conditions contained in the Equity Distribution Agreement among Sabra Health Care REIT, Inc. (the “Company”) and Barclays Capital Inc., BMO Capital Markets Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., The Huntington Investment Company, Jefferies LLC, KeyBanc Capital Markets Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Raymond James & Associates, Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Stifel, Nicolaus & Company, Incorporated, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC, each as agent, forward seller, and/or as principal under any Terms Agreement (as defined in Section 3 below) (in any such capacity, each an “Agent”, and collectively, the “Agents”) and Barclays Bank PLC, Bank of Montreal, Bank of America, N.A., Citibank, N.A., Crédit Agricole Corporate and Investment Bank c/o Credit Agricole Securities (USA) Inc., as agent, Jefferies LLC, KeyBanc Capital Markets Inc., Morgan Stanley & Co. LLC, MUFG Securities EMEA plc, Raymond James & Associates, Inc., Royal Bank of Canada, The Bank of Nova Scotia and Wells Fargo Bank, National Association, each as a forward purchaser (in such capacity, each a “Forward Purchaser”, and collectively, the “Forward Purchasers”), dated December 11, 2019 (the “Distribution Agreement”), I hereby request on behalf of the Company that [ ], acting as the Placement Agent on behalf of the Company, sell up to [[ ] shares] [$[ ] in aggregate gross proceeds] of the Company’s Common Stock, issued pursuant to the Distribution Agreement, at a minimum market price of $_______ per share, [with no limitation on the number of Shares that may be sold on any single Trading Day][with no more than [[ ] Shares][[ ] in aggregate gross proceeds] sold on any single Trading Day], during the time period beginning [month, day, time] and ending [month, day, time] [the first date on which the Placement Agent sells $[ ] in aggregate gross proceeds of the Company’s Common Stock] [such date in the future as the Company shall notify the Placement Agent in writing (including by email)]. Defined terms that are used but not defined herein shall have the meanings ascribed to them in the Distribution Agreement.


 
SCHEDULE 1-B [[5258451]] FORM OF FORWARD INSTRUCTION NOTICE From: [ ] Cc: [ ] To: [ ] Subject: Forward Sale Notice Ladies and Gentlemen: Pursuant to the terms and subject to the conditions contained in the Equity Distribution Agreement among Sabra Health Care REIT, Inc. (the “Company”) and Barclays Capital Inc., BMO Capital Markets Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., The Huntington Investment Company, Jefferies LLC, KeyBanc Capital Markets Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Raymond James & Associates, Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Stifel, Nicolaus & Company, Incorporated, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC, each as agent, forward seller, and/or as principal under any Terms Agreement (as defined in Section 3 below) (in any such capacity, each an “Agent”, and collectively, the “Agents”) and Barclays Bank PLC, Bank of Montreal, Bank of America, N.A., Citibank, N.A., Crédit Agricole Corporate and Investment Bank c/o Credit Agricole Securities (USA) Inc., as agent, Jefferies LLC, KeyBanc Capital Markets Inc., Morgan Stanley & Co. LLC, MUFG Securities EMEA plc, Raymond James & Associates, Inc., Royal Bank of Canada, The Bank of Nova Scotia and Wells Fargo Bank, National Association, each as a forward purchaser (in such capacity, each a “Forward Purchaser”, and collectively, the “Forward Purchasers”), dated December 11, 2019 (the “Distribution Agreement”), the Company desires to enter into a Forward, including a related Confirmation substantially consistent with the Form Confirmation, in each case on the following terms: Aggregate Maximum Forward Hedge Amount: $[●] Minimum Price per Share: $[●] Maturity Date: [●], 20[●] Percentage for purposes of the Initial Forward Price: [●]% Spread: [●]% Minimum Settlement Shares: [●] Initial Stock Loan Rate: [●]% Maximum Stock Loan Rate: [●]%


 
[[5258451]] Hedge Completion Date: [●], 20[●] Forward Price Reduction Dates / Amounts ($): [●], 20[●] / $[●] [●], 20[●] / $[●] [●], 20[●] / $[●] [●], 20[●] / $[●] Defined terms that are used but not defined herein shall have the meanings ascribed to them in the Distribution Agreement.


 
SCHEDULE 2 [[5258451]] THE COMPANY SABRA HEALTH CARE REIT, INC. Richard K. Matros rmatros@sabrahealth.com Harold W. Andrews, Jr. handrews@sabrahealth.com Michael Costa mcosta@sabrahealth.com AGENTS AND FORWARD PURCHASERS Barclays Capital Inc., as Agent 745 Seventh Avenue, New York, New York 10019 Attention: Daniel Sinni Email: Daniel.Sinni@barclayscapital.com, nicholas.cunningham@barclays.com Barclays Bank PLC, as Forward Purchaser 745 Seventh Avenue, New York, New York 10019 Attention: Paul Robinson Email: paul.robinson1@barclays.com, nicholas.cunningham@barclays.com BMO Capital Markets Corp., as Agent 3 Times Square, 25th Floor, New York, New York 10036 Attention: Eric Benedict Facsimile: 212 702 1231 E-mail: Eric.Benedict@bmo.com, Jonathan.Li@bmo.com, Alexander.Watson@bmo.com, Anthony.Albrecht@bmo.com, David1.Friedman@bmo.com, Jaryd.Banach@bmo.com, Sarah.Bloom@bmo.com, Patrick.Rosenthal@bmo.com, Alice.liou@bmo.com, William.levin@bmo.com; neil.dave@bmo.com, Steven.Devilbiss@bmo.com, Andrew.Previc@bmo.com, jeff.brunswick@bmo.com Bank of Montreal, as Forward Purchaser 3 Times Square, 25th Floor, New York, New York 10036 Attention: Eric Benedict Facsimile: 212 702 1231 E-mail: Eric.Benedict@bmo.com, Jonathan.Li@bmo.com, Alexander.Watson@bmo.com, Anthony.Albrecht@bmo.com, David1.Friedman@bmo.com, Jaryd.Banach@bmo.com, Sarah.Bloom@bmo.com, Patrick.Rosenthal@bmo.com, Alice.liou@bmo.com, William.levin@bmo.com; neil.dave@bmo.com, Steven.Devilbiss@bmo.com, Andrew.Previc@bmo.com, jeff.brunswick@bmo.com BofA Securities, Inc., as Agent One Bryant Park, New York, New York 10036 Attention: DG ATM Execution, So Young Lee E-mail: dg.atm_execution@bofa.com, soyoung.lee@bofa.com, rstewart4@bofa.com, rohan.handa@bofa.com


 
[[5258451]] Bank of America, N.A., as Forward Purchaser One Bryant Park, New York, New York 10036 Attention: Robert Stewart, Rohan Handa E-mail: dg.atm_execution@bofa.com, soyoung.lee@bofa.com, rstewart4@bofa.com, rohan.handa@bofa.com Citigroup Global Markets Inc., as Agent 388 Greenwich Street, New York, New York 10013 Attention: Robert G. Leonard, Matthew T. Morris, Adam Muchnick E-mail: robert.g.leonard@citi.com, matthew.t.morris@citi.com, adam.muchnick@citi.com Citibank, N.A., as Forward Purchaser 388 Greenwich Street, New York, New York 10013 Attention: Robert G. Leonard, Matthew T. Morris, Adam Muchnick E-mail: robert.g.leonard@citi.com, matthew.t.morris@citi.com, adam.muchnick@citi.com Credit Agricole Securities (USA) Inc., as Agent 1301 Avenue of the Americas, New York, New York 10019 Attention: Douglas Cheng Facsimile: (212) 408-5652 E-mail: douglas.cheng@ca-cib.com, yuliya.nisnevich@ca-cib.com, luis.vonhoroch@ca- cib.com, paul.magliola@ca-cib.com, george.qian@ca-cib.com, equitycapitalmarkets@ca- cib.com, jean.bel@ca-cib.com, jonathan.fecowicz@ca-cib.com, antoine.jounet@ca-cib.com Crédit Agricole Corporate and Investment Bank, c/o Credit Agricole Securities (USA) Inc., as agent, as Forward Purchaser 1301 Avenue of the Americas, New York, New York 10019 Attention: Douglas Cheng Facsimile: (212) 408-5652 E-mail: douglas.cheng@ca-cib.com, yuliya.nisnevich@ca-cib.com, luis.vonhoroch@ca- cib.com, paul.magliola@ca-cib.com, george.qian@ca-cib.com, equitycapitalmarkets@ca- cib.com, jean.bel@ca-cib.com, jonathan.fecowicz@ca-cib.com, antoine.jounet@ca-cib.com Fifth Third Securities, Inc., as Agent 424 Church Street, Suite 600, Nashville, Tennessee 37219 Attention: Michael Ryan Facsimile: 615-687-3088 E-mail: Michael.Perillo@53.com, michael.ryan@53.com, susannah.lunke@53.com, paul.gerwe@53.com, ioanis.jorgali@53.com, michael.bertkau@53.com, Kyle.sieg@53.com The Huntington Investment Company, as Agent 41 South High Street, Columbus, Ohio 43215 Attention: Peter Dippolito Facsimile: 888-409-9487


 
[[5258451]] E-mail: Matt.Milcetich@Huntington.com, Peter.Dippolito@Huntington.com, Jay.Clutter@Huntington.com, Barry.Fredrickson@Huntington.com, Elizabeth.M.Hill@Huntington.com, John.Szwagulak@Huntington.com Jefferies LLC, as Agent 520 Madison Avenue, New York, New York 10022 Attention: : Keith Lockwood, Mike Judlowe, Mike Magarro, Don Lynaugh Facsimile: (646) 619-4437 E-mail: klockwood@Jefferies.com, mjudlowe@jefferies.com, mmagarro@jefferies.com, dlynaugh@jefferies.com Jefferies LLC, as Forward Purchaser 520 Madison Avenue, New York, New York 10022 Attention: : Colyer Curtis, Tim O’Connor , Sonia Han Levovitz and Dawn Pieper Facsimile: (646) 619-4437 E-mail: ccurtis@jefferies.com, Tim.OConnor@Jefferies.com, shan@jefferies.com, dpieper@jefferies.com KeyBanc Capital Markets Inc., as Agent 127 Public Square, 4th Floor, Cleveland, Ohio 44114 Attention: Dave Gruber, John Horrigan, Paul Hodermarsky, Michael Jones E-mail: dgruber@key.com, jhorrigan@key.com, phodermarsky@key.com, Michael.c.jones@key.com KeyBanc Capital Markets Inc., as Forward Purchaser 127 Public Square, 4th Floor, Cleveland, Ohio 44114 Attention: Dave Gruber, John Horrigan, Paul Hodermarsky, Michael Jones E-mail: dgruber@key.com, jhorrigan@key.com, phodermarsky@key.com, Michael.c.jones@key.com Mizuho Securities USA LLC, as Agent 320 Park Avenue – 12th Floor, New York, New York 10022 Attention: Equity Capital Markets Desk Email: US-ECM@mizuhogroup.com With a copy to: legalnotices@mizuhogroup.com, Attention: Office of the General Counsel Morgan Stanley & Co. LLC, as Agent 1585 Broadway, New York, New York 10036 Attention: Equity Syndicate Desk Copy to: Legal Department E-mail: matthew.johnson@morganstanley.com; kent.leung@morganstanley.com; kevin.moran@morganstanley.com; jesse.treverton@morganstanley.com; joanna.wan@morganstanley.com; edward.molloy@morganstanley.com; jon.sierant@morganstanley.com; minoshka.narayan@morganstanley.com; kyle.mcdonnell@morganstanley.com; michael.m.kim@morganstanley.com;


 
[[5258451]] mona.shin@morganstanley.com; alexander.csordas@morganstanley.com; Steven.Seltzer1@morganstanley.com Morgan Stanley & Co. LLC, as Forward Purchaser 1585 Broadway, New York, New York 10036 Attention: Equity Syndicate Desk Copy to: Legal Department E-mail: matthew.johnson@morganstanley.com; kent.leung@morganstanley.com; kevin.moran@morganstanley.com; jesse.treverton@morganstanley.com; joanna.wan@morganstanley.com; edward.molloy@morganstanley.com; jon.sierant@morganstanley.com; minoshka.narayan@morganstanley.com; kyle.mcdonnell@morganstanley.com; michael.m.kim@morganstanley.com; mona.shin@morganstanley.com; alexander.csordas@morganstanley.com; Steven.Seltzer1@morganstanley.com MUFG Securities Americas Inc., as Agent 1221 Avenue of the Americas, 6th Floor, New York, New York 10020 Attention: ETG E-mail: jason.demark@mufgsecurities.com; andrew.wedderburn-maxwell@mufgsecurities.com; buck.dodd@mufgsecurities.com; anastasios.wallingford@mufgsecurities.com; suzy.trdoslavic@mufgsecurities.com; MUFG Securities EMEA plc, as Forward Purchaser Ropemaker Place, 25 Ropemaker Street, London EC2Y 9AJ, United Kingdom Attention: Derivative Confirmations Facsimilie: +44 207 577 2898 / 2875 E-mail: EquitySolutions-Notifications@int.sc.mufg.jp; Michael.Gordon@mufgsecurities.com; Kathleen.Considine@mufgsecurities.com; ESG-ETG-Americas@mufgsecurities.com Raymond James & Associates, Inc., as Agent 880 Carillon Parkway, St. Petersburg, Florida 33716 Attention: General Counsel Facsimile: (727) 567-8247 E-mail: jozsi.popper@raymondjames.com, nolan.rivers@raymondjames.com, michael.hatch@raymondjames.com, kent.nelson@raymondjames.com, sean.wolf@raymondjames.com, logan.lane@raymondjames.com, jeff.fordham@raymondjames.com, jeanna.bryan@raymondjames.com, omar.delarosa@raymondjames.com, brandon.moore@raymondjames.com, nicole.castillo@raymondjames.com, brad.cole@raymondjames.com Raymond James & Associates, Inc., as Forward Purchaser 880 Carillon Parkway, St. Petersburg, Florida 33716 Attention: General Counsel Facsimile: (727) 567-8247 E-mail: jozsi.popper@raymondjames.com, nolan.rivers@raymondjames.com, michael.hatch@raymondjames.com, kent.nelson@raymondjames.com,


 
[[5258451]] sean.wolf@raymondjames.com, logan.lane@raymondjames.com, jeff.fordham@raymondjames.com, jeanna.bryan@raymondjames.com, omar.delarosa@raymondjames.com, brandon.moore@raymondjames.com, nicole.castillo@raymondjames.com, brad.cole@raymondjames.com RBC Capital Markets, LLC, as Agent 200 Vesey Street, New York, NY 10281 Attention: RBC Equity Capital Markets Team Facsimile: (212) 428-6260 E-mail: Ivana.Rupcic-Hulin@rbccm.com, Andrew.Jones@rbccm.com Royal Bank of Canada, as Forward Purchaser 200 Vesey Street, New York, NY 10281 Attention: RBC Equity-Linked Team Facsimile: (212) 428-6260 E-mail: RBCECMCorporateEquityLinkedDocumentation@rbc.com Scotia Capital (USA) Inc., as Agent 250 Vesey Street, 24th Floor, New York, New York 10281 Attention: Chief Legal Officer, U.S. Copies (which shall not constitute notice) to: Chief Legal Officer, U.S. Facsimile: (212) 225-6550 E-mail: us.ecm@scotiabank.com, us.legal@scotiabank.com The Bank of Nova Scotia, as Forward Purchaser 250 Vesey Street, 24th Floor, New York, New York 10281 Attention: Chief Legal Officer, U.S. Copies (which shall not constitute notice) to: Chief Legal Officer, U.S. Facsimile: (212) 225-6550 E-mail: us.ecm@scotiabank.com, us.legal@scotiabank.com SMBC Nikko Securities America, Inc., as Agent 277 Park Avenue, 5th Floor, New York, New York 10172 Attention: Equity Capital Markets Facsimile: (212) 224-4954 E-mail: james_d_benko@smbcgroup.com, MPetropoulos@smbcnikko-si.com, jae- in_hwang@smbcgroup.com, MikeAWalsh@smbcnikko-si.com, garpaia@smbcnikko-si.com, elarrison@smbcnikko-si.com, sshin@smbcnikko-si.com, patrick_brake@smbcgroup.com, nyecm@smbcnikko-si.com Stifel, Nicolaus & Company, Incorporated, as Agent One South Street, 15th Floor, Baltimore, Maryland 21202 Attention: Syndicate Department Facsimile: (443) 224-1273 E-mail: cmgorsuch@stifel.com, zimmermans@stifel.com, dcovatta@stifel.com, whitem@stifel.com, sahill@stifel.com


 
[[5258451]] SunTrust Robinson Humphrey, Inc., as Agent 3333 Peachtree Rd., NE, 11th Floor, Atlanta, Georgia 30326 Attention: Keith Carpenter and Geoff Fennel Facsimile: (404) 926-5872 E-mail: keith.carpenter@suntrust.com; geoff.fennel@suntrust.com; james.pirouz@suntrust.com; alan.germano@suntrust.com; garrett.tash@suntrust.com; adam.j.humphreys@suntrust.com; carney.simpson@suntrust.com; christine.gallagher@suntrust.com; elise.lind@suntrust.com; william.turner@suntrust.com; jonathan.coutts@suntrust.com; bill.monroe@suntrust.com Wells Fargo Securities, LLC, as Agent 375 Park Avenue, New York, New York 10152 Attention: Equity Syndicate Department Facsimile: (212) 214- 5918 E-mail: CorporateDerivativeNotifications@wellsfargo.com Wells Fargo Bank, National Association, as Forward Purchaser 375 Park Avenue, New York, New York 10152 Attention: Structuring Services Group Facsimile: (212) 214- 5913 E-mail: CorporateDerivativeNotifications@wellsfargo.com


 
SCHEDULE 3 [[5258451]] FREE WRITING PROSPECTUS None.


 
SCHEDULE 4 [[5258451]] AGENT AND FORWARD PURCHASER CONTACTS FOR FUTURE REPORTS Barclays Capital Inc., as Agent 745 Seventh Avenue, New York, New York 10019 Attention: Daniel Sinni Email: Daniel.Sinni@barclayscapital.com Barclays Bank PLC, as Forward Purchaser 745 Seventh Avenue, New York, New York 10019 Attention: Paul Robinson Email: paul.robinson1@barclays.com BMO Capital Markets Corp., as Agent 3 Times Square, 25th Floor, New York, New York 10036 Attention: Eric Benedict E-mail: Eric.Benedict@bmo.com, Jonathan.Li@bmo.com, Alexander.Watson@bmo.com, Anthony.Albrecht@bmo.com, David1.Friedman@bmo.com, Jaryd.Banach@bmo.com, Sarah.Bloom@bmo.com, Patrick.Rosenthal@bmo.com, Alice.liou@bmo.com, William.levin@bmo.com; neil.dave@bmo.com, Steven.Devilbiss@bmo.com, Andrew.Previc@bmo.com, jeff.brunswick@bmo.com Bank of Montreal, as Forward Purchaser 3 Times Square, 25th Floor, New York, New York 10036 Attention: Eric Benedict E-mail: Eric.Benedict@bmo.com, Jonathan.Li@bmo.com, Alexander.Watson@bmo.com, Anthony.Albrecht@bmo.com, David1.Friedman@bmo.com, Jaryd.Banach@bmo.com, Sarah.Bloom@bmo.com, Patrick.Rosenthal@bmo.com, Alice.liou@bmo.com, William.levin@bmo.com; neil.dave@bmo.com, Steven.Devilbiss@bmo.com, Andrew.Previc@bmo.com, jeff.brunswick@bmo.com BofA Securities, Inc., as Agent One Bryant Park, New York, New York 10036 Attention: DG ATM Execution, So Young Lee E-mail: dg.atm_execution@bofa.com, soyoung.lee@bofa.com, rstewart4@bofa.com, rohan.handa@bofa.com Bank of America, N.A., as Forward Purchaser One Bryant Park, New York, New York 10036 Attention: Robert Stewart, Rohan Handa E-mail: dg.atm_execution@bofa.com, soyoung.lee@bofa.com, rstewart4@bofa.com, rohan.handa@bofa.com Citigroup Global Markets Inc., as Agent 388 Greenwich Street, New York, New York 10013 Attention: Robert G. Leonard, Matthew T. Morris, Adam Muchnick E-mail: robert.g.leonard@citi.com, matthew.t.morris@citi.com, adam.muchnick@citi.com


 
[[5258451]] Citibank, N.A., as Forward Purchaser 388 Greenwich Street, New York, New York 10013 Attention: Robert G. Leonard, Matthew T. Morris, Adam Muchnick E-mail: robert.g.leonard@citi.com, matthew.t.morris@citi.com, adam.muchnick@citi.com Credit Agricole Securities (USA) Inc., as Agent 1301 Avenue of the Americas, New York, New York 10019 Attention: Equity Capital Markets Desk Email: equitycapitalmarkets@ca-cib.com Crédit Agricole Corporate and Investment Bank, as Forward Purchaser 1301 Avenue of the Americas, New York, New York 10019 Attention: Equity Capital Markets Desk Email: equitycapitalmarkets@ca-cib.com Fifth Third Securities, Inc., as Agent 424 Church Street, Suite 600, Nashville, Tennessee 37219 Attention: Michael Ryan, Susannah Lunke & Paul Gerwe Email: michael.ryan@53.com, Susannah.lunke@53.com, paul.gerwe@53.com The Huntington Investment Company, as Agent 41 South High Street, Columbus, Ohio 43215 Attention: Peter Dippolito & Elizabeth Hill Jefferies LLC, as Agent 520 Madison Avenue, New York, New York 10022 Attention: General Counsel E-mail: klockwood@Jefferies.com, mjudlowe@jefferies.com, mmagarro@jefferies.com, dlynaugh@jefferies.com Jefferies LLC, as Forward Purchaser 520 Madison Avenue, New York, New York 10022 Attention: General Counsel E-mail: ccurtis@jefferies.com, Tim.OConnor@Jefferies.com, shan@jefferies.com, dpieper@jefferies.com KeyBanc Capital Markets Inc., as Agent 127 Public Square, 4th Floor, Cleveland, Ohio 44114 Attention: Dave Gruber, John Horrigan, Paul Hodermarsky, Michael Jones E-mail: dgruber@key.com, jhorrigan@key.com, phodermarsky@key.com, Michael.c.jones@key.com KeyBanc Capital Markets Inc., as Forward Purchaser 127 Public Square, 4th Floor, Cleveland, Ohio 44114 Attention: Dave Gruber, John Horrigan, Paul Hodermarsky, Michael Jones


 
[[5258451]] E-mail: dgruber@key.com, jhorrigan@key.com, phodermarsky@key.com, Michael.c.jones@key.com Mizuho Securities USA LLC, as Agent 320 Park Avenue – 12th Floor, New York, New York 10022 Attention: Equity Capital Markets Desk, : Office of the General Counsel Email: US-ECM@mizuhogroup.com, legalnotices@mizuhogroup.com Morgan Stanley & Co. LLC, as Agent 1585 Broadway, New York, New York 10036 Attention: Equity Syndicate Desk Email: matthew.johnson@morganstanley.com; kent.leung@morganstanley.com; kevin.moran@morganstanley.com; jesse.treverton@morganstanley.com; joanna.wan@morganstanley.com; edward.molloy@morganstanley.com; jon.sierant@morganstanley.com; minoshka.narayan@morganstanley.com; kyle.mcdonnell@morganstanley.com; michael.m.kim@morganstanley.com; mona.shin@morganstanley.com; alexander.csordas@morganstanley.com; Steven.Seltzer1@morganstanley.com Morgan Stanley & Co. LLC, as Forward Purchaser 1585 Broadway, New York, New York 10036 Attention: Equity Syndicate Desk Email: matthew.johnson@morganstanley.com; kent.leung@morganstanley.com; kevin.moran@morganstanley.com; jesse.treverton@morganstanley.com; joanna.wan@morganstanley.com; edward.molloy@morganstanley.com; jon.sierant@morganstanley.com; minoshka.narayan@morganstanley.com; kyle.mcdonnell@morganstanley.com; michael.m.kim@morganstanley.com; mona.shin@morganstanley.com; alexander.csordas@morganstanley.com; Steven.Seltzer1@morganstanley.com MUFG Securities Americas Inc., as Agent 1221 Avenue of the Americas, 6th Floor, New York, New York 10020 Attention: ETG Email: ETG@us.sc.mufg.jp MUFG Securities EMEA plc, as Forward Purchaser Ropemaker Place, 25 Ropemaker Street, London EC2Y 9AJ, United Kingdom Attention: Derivative Confirmations Email: docsconfirms@int.sc.mufg.jp, EquitySolutions-Notifications@int.sc.mufg.jp, Michael.Gordon@mufgsecurities.com, Kathleen.Considine@mufgsecurities.com, ESG-ETG- Americas@mufgsecurities.com Raymond James & Associates, Inc., as Agent 880 Carillon Parkway, St. Petersburg, Florida 33716 Attention: General Counsel


 
[[5258451]] E-mail: jozsi.popper@raymondjames.com, nolan.rivers@raymondjames.com, michael.hatch@raymondjames.com, kent.nelson@raymondjames.com, sean.wolf@raymondjames.com, logan.lane@raymondjames.com, jeff.fordham@raymondjames.com, jeanna.bryan@raymondjames.com, omar.delarosa@raymondjames.com, brandon.moore@raymondjames.com, nicole.castillo@raymondjames.com, brad.cole@raymondjames.com Raymond James & Associates, as Forward Purchaser 880 Carillon Parkway, St. Petersburg, Florida 33716 Attention: General Counsel E-mail: jozsi.popper@raymondjames.com, nolan.rivers@raymondjames.com, michael.hatch@raymondjames.com, kent.nelson@raymondjames.com, sean.wolf@raymondjames.com, logan.lane@raymondjames.com, jeff.fordham@raymondjames.com, jeanna.bryan@raymondjames.com, omar.delarosa@raymondjames.com, brandon.moore@raymondjames.com, nicole.castillo@raymondjames.com, brad.cole@raymondjames.com RBC Capital Markets, LLC, as Agent Royal Bank of Canada, as Forward Purchaser 200 Vesey Street, New York, NY 10281 Attention: RBC ECM Equity-Linked Team Scotia Capital (USA) Inc., as Agent 250 Vesey Street, 24th Floor, New York, New York 10281 Attention: Chief Legal Officer, U.S. E-mail: us.ecm@scotiabank.com, us.legal@scotiabank.com The Bank of Nova Scotia, as Forward Purchaser 250 Vesey Street, 24th Floor, New York, New York 10281 Attention: Chief Legal Officer, U.S. E-mail: us.ecm@scotiabank.com, us.legal@scotiabank.com SMBC Nikko Securities America, Inc., as Agent 277 Park Avenue, 5th Floor, New York, New York 10172 Attention: Equity Capital Markets E-mail: james_d_benko@smbcgroup.com, MPetropoulos@smbcnikko-si.com, jae- in_hwang@smbcgroup.com, MikeAWalsh@smbcnikko-si.com, garpaia@smbcnikko-si.com, elarrison@smbcnikko-si.com, sshin@smbcnikko-si.com, patrick_brake@smbcgroup.com, nyecm@smbcnikko-si.com Stifel, Nicolaus & Company, Incorporated, as Agent One South Street, 15th Floor, Baltimore, Maryland 21202 Attention: Syndicate Department E-mail: cmgorsuch@stifel.com, zimmermans@stifel.com, dcovatta@stifel.com, whitem@stifel.com, sahill@stifel.com


 
[[5258451]] SunTrust Robinson Humphrey, Inc., as Agent 3333 Peachtree Rd., NE, 11th Floor, Atlanta, Georgia 30326 Attention: Keith Carpenter and Geoff Fennel E-mail: keith.carpenter@suntrust.com; geoff.fennel@suntrust.com; james.pirouz@suntrust.com; alan.germano@suntrust.com; garrett.tash@suntrust.com; adam.j.humphreys@suntrust.com; carney.simpson@suntrust.com; christine.gallagher@suntrust.com; elise.lind@suntrust.com; william.turner@suntrust.com; jonathan.coutts@suntrust.com; bill.monroe@suntrust.com Wells Fargo Securities, LLC, as Agent 375 Park Avenue, New York, New York 10152 Attention: Equity Syndicate Department E-mail: CorporateDerivativeNotifications@wellsfargo.com Wells Fargo Bank, National Association, as Forward Purchaser 375 Park Avenue, New York, New York 10152 Attention: Structuring Services Group Email: CorporateDerivativeNotifications@wellsfargo.com


 
Exhibit 3(b) [[5556494]] FORM OF FORWARD CONFIRMATION Date: [●], 20[●] To: Sabra Health Care REIT, Inc. 18500 Von Karman Avenue, Suite 550 Irvine, California 92612 From: [DEALER NAME AND NOTICE INFORMATION] Re: Registered Forward Transaction Ladies and Gentlemen: The purpose of this letter agreement is to set forth certain terms and conditions of the transaction entered into between [DEALER NAME] (“Forward Purchaser”) and Sabra Health Care REIT, Inc. (the “Company”) in accordance with and subject to the terms of the Equity Distribution Agreement (as defined below) on the Trade Date specified below (the “Transaction”). This letter agreement, as supplemented by the pricing supplement in respect of the Transaction in substantially the form of Annex B hereto (the “Pricing Supplement”) is a “Confirmation” for purposes of the Agreement specified below and a confirmation for purposes of Rule 10b-10 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Definitions”), as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Confirmation. In the event of any inconsistency between the Definitions and this Confirmation, this Confirmation will govern. Each party further agrees that this Confirmation, as supplemented by the Pricing Supplement delivered hereunder and the Agreement, together evidence a complete binding agreement between Forward Purchaser and the Company as to the subject matter and terms of the Transaction to which this Confirmation relates, and shall supersede all prior or contemporaneous written or oral communications with respect thereto. This Confirmation, together with any Confirmations relating to additional registered forward transactions entered into between Forward Purchaser and the Company in connection with the Equity Distribution Agreement (as defined below) (each such registered forward transaction, an “Additional Transaction” and each Confirmation relating thereto, an “Additional Confirmation”) shall supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master Agreement (the “Agreement”) as if Forward Purchaser and the Company had executed an agreement in such form on the Trade Date and with a schedule thereto setting forth (i) the election of New York law (without regard to New York’s choice of laws doctrine other than Title 14 of Article 5 of the New York General Obligations Law) as the governing law and U.S. Dollars (“USD”) as the Termination Currency and (ii) the elections set forth in this Confirmation. In the event of any inconsistency between the Agreement, this Confirmation and the Definitions, the following will prevail for purposes of the Transaction in the order of


 
2 [[5556494]] precedence indicated: (i) this Confirmation; (ii) the Definitions; and (iii) the Agreement. The parties hereby agree that no Transaction other than the Transaction to which this Confirmation relates and the Additional Transactions shall be governed by the Agreement. For purposes of the Definitions, the Transaction is a Share Forward Transaction. Forward Purchaser and the Company each represent to the other that it has entered into the Transaction in reliance upon such tax, accounting, regulatory, legal and financial advice as it deems necessary and not upon any view expressed by the other. The terms of the particular Transaction to which this Confirmation relates are as follows: General Terms: Trade Date: [●], 20[●] Effective Date: The first day occurring on or after the Trade Date on which Shares that are sold through [AGENT NAME]1, acting as forward seller for Forward Purchaser (in such capacity, the “Agent”) pursuant to the Equity Distribution Agreement, dated December 11, 2019 among Forward Purchaser, the Company, the Agent and the other parties thereto (the “Equity Distribution Agreement”), settle, or such later date on which the conditions set forth in Section 3 of this Confirmation shall have been satisfied. Initial Base Amount: The aggregate number of Shares sold through the Agent, acting as forward seller for Forward Purchaser pursuant to the Equity Distribution Agreement, during the period from and including the Trade Date through and including the Hedge Completion Date. Base Amount: On any day, the Initial Base Amount, reduced by the number of Settlement Shares for Settlements occurring on or before such day and as adjusted in accordance with the terms of this Confirmation. Maturity Date: The earlier of (i) [DATE]2 (or, if such date is not a Scheduled Trading Day, the next following Scheduled Trading Day) and (ii) the date on which the Base Amount is reduced to zero. 1 Insert name of Agent affiliate party to Equity Distribution Agreement. 2 To be the Maturity Date specified in the Forward Instruction Notice accepted by the Forward Purchaser and a date no later than the one year anniversary of the Trade Date.


 
3 [[5556494]] Hedge Completion Date: The earliest of (i) [DATE]3 (or, if such date is not a Scheduled Trading Day, the next following Scheduled Trading Day), (ii) the date specified in the Pricing Supplement and (iii) the 20th Scheduled Trading Day following, but not including, the Trade Date. No later than 7:00 p.m. New York time, on the Scheduled Trading Day immediately following the Hedge Completion Date, Forward Purchaser will furnish the Company with the Pricing Supplement specifying the Hedge Completion Date, the Base Amount as of the Hedge Completion Date (the “Initial Base Amount”) and the Initial Forward Price, each determined in accordance with the terms hereof. Upon request of the Company, Forward Purchaser shall provide written support for the calculation of the Initial Forward Price, it being agreed and understood that Forward Purchaser shall not be obligated to disclose any confidential or proprietary models or other information that Forward Purchaser believes to be confidential, proprietary or subject to contractual, legal or regulatory obligations not to disclose such information, in each case, used by it for such calculation. Forward Hedge Selling Period: The period of consecutive Exchange Business Days beginning on and including, the later of the date specified in the Forward Instruction Notice or the Trade Date and ending on and including the Hedge Completion Date; provided, however, that if, at any time on or prior to the Hedge Completion Date (x) any event occurs that would permit the Forward Purchaser to designate a “Termination Settlement Date” (as defined below) or an Early Termination Date or (y) a “Bankruptcy Termination Event” (as defined below) occurs, then the Forward Hedge Selling Period shall terminate, and the Hedge Completion Date be deemed to occur, immediately upon the Forward Purchaser becoming aware of any such event. Forward Price: On the Hedge Completion Date, the Initial Forward Price, and on any other day, as determined by the Calculation Agent, the Forward Price as of the immediately preceding calendar day multiplied by the sum of (i) 1 and (ii) the Daily Rate for such day; provided that on each Forward Price Reduction Date4, the Forward Price in effect on such date 3 To be the Hedge Completion Date specified in the Forward Instruction Notice accepted by the Forward Purchaser. 4 Forward Price Reduction Dates to be the “ex-dividend” dates for each quarterly dividend as set forth in the Forward Instruction Notice.


 
4 [[5556494]] shall be the Forward Price otherwise in effect on such date, minus the Forward Price Reduction Amount for such Forward Price Reduction Date. Notwithstanding anything to the contrary contained herein, to the extent the Company delivers Shares hereunder on or after a Forward Price Reduction Date and at or before the record date for an ordinary cash dividend with an ex-dividend date corresponding to such Forward Price Reduction Date, the Calculation Agent shall adjust the Forward Price to the extent it determines, in good faith and its commercially reasonable discretion, that such an adjustment is practicable and appropriate to preserve the economic intent of the parties hereto (taking into account Forward Purchaser’s commercially reasonable hedge positions in respect of the Transaction). Initial Forward Price: [●]%5 of the volume-weighted average price at which the Shares are sold through the Agent acting as forward seller for Forward Purchaser pursuant to the Equity Distribution Agreement during the period from and including the Trade Date through and including the Hedge Completion Date, as adjusted by the Calculation Agent to (x) reflect on each day during such period (i) the sum of 1 and the Daily Rate for such day multiplied by the then-Initial Forward Price as of such day and (ii) the number of Shares sold on or prior to such day and (y) reduce the then-Initial Forward Price by the relevant Forward Price Reduction Amount on each Forward Price Reduction Date occurring on or before the Hedge Completion Date. Daily Rate: For any day, as determined by the Calculation Agent, a rate equal to (i)(A) the Overnight Bank Rate for such day, minus (B) the Spread, divided by (ii) 365. Overnight Bank Rate: For any day, the rate set forth for such day opposite the caption “Overnight Bank Funding Rate”, as such rate is displayed on the page “OBFR01 <Index> <GO>” on the BLOOMBERG Professional Service, or any successor page; provided that, if no rate appears on any day on such page, the rate for the immediately preceding day for which a rate does so appear shall be used for such day. 5 Insert percentage equal to 100 minus the agreed upon commission (which shall not exceed 1.5%), as specified in the Forward Instruction Notice.


 
5 [[5556494]] Spread: [●]6 basis points. Prepayment: Not Applicable. Variable Obligation: Not Applicable. Forward Price Reduction Date: Each date (other than the Trade Date) set forth on Schedule I under the heading “Forward Price Reduction Date”. Forward Price Reduction Amount: For each Forward Price Reduction Date, the Forward Price Reduction Amount set forth opposite such date on Schedule I. Shares: Common stock, USD 0.01 par value per share, of the Company (also referred to herein as the “Issuer”) (Exchange identifier: “SBRA”). Exchange: Nasdaq Global Select Market. Related Exchange(s): All Exchanges. Clearance System: The Depository Trust Company. Calculation Agent: Forward Purchaser. In the event the Calculation Agent or the Determining Party makes any calculations, adjustments or determinations pursuant to this Confirmation, the Agreement or the Definitions, the Calculation Agent or the Determining Party, as the case may be, shall within a commercially reasonable time after receipt of a request therefor by the Company, provide to the Company at the email address specified in such request, a report (in a commonly used file format for the storage and manipulation of financial data) displaying in reasonable detail the basis for any such calculation, adjustment or determination (including any quotations, market data or information from external sources used in making such calculation, adjustment or determination, as the case may be, but without disclosing its proprietary or confidential models or other information that is proprietary or subject to contractual, legal or regulatory obligations to not disclose such information); provided that following the occurrence and during the continuation of an Event of Default under Section 5(a)(vii) of the Agreement with respect to which Forward Purchaser is the Defaulting Party, the Company shall have the right to designate a nationally- recognized third-party dealer in over-the-counter U.S. corporate equity derivatives to act as the Calculation Agent. 6 Insert Spread specified in the Forward Instruction Notice.


 
6 [[5556494]] Whenever the Calculation Agent or the Determining Party is required or permitted to act or to exercise judgment in any way with respect to any Transaction hereunder, including, without limitation, with respect to calculations, adjustments and determinations that are made in its sole discretion or otherwise, the Calculation Agent or the Determining Party, as applicable, shall do so in good faith and in a commercially reasonable manner. Settlement Terms: Settlement Date: Any Scheduled Trading Day following the Effective Date and up to and including the Maturity Date, as designated by (a) Forward Purchaser pursuant to “Termination Settlement” below or (b) the Company in a written notice that satisfies the Settlement Notice Requirements (a “Settlement Notice”) and is delivered to Forward Purchaser at least (i) two Scheduled Trading Days prior to such Settlement Date, which may be the Maturity Date, if Physical Settlement applies, and (ii) [●]7 Scheduled Trading Days prior to such Settlement Date, which may be the Maturity Date, if Cash Settlement or Net Share Settlement applies; provided that the Maturity Date shall be a Settlement Date if on such date the Base Amount is greater than zero; and provided, further, if Cash Settlement or Net Share Settlement applies and Forward Purchaser shall have fully unwound its hedge during an Unwind Period by a date that is more than two Scheduled Trading Days prior to a Settlement Date specified above, Forward Purchaser may, by written notice to the Company, specify any Scheduled Trading Day prior to such originally specified Settlement Date as the Settlement Date. Settlement Shares: With respect to any Settlement Date, a number of Shares, not to exceed the Undesignated Shares and not less than the Minimum Settlement Shares, designated as such by the Company in a Settlement Notice meeting the Settlement Notice Requirements or by Forward Purchaser pursuant to “Termination Settlement” below; provided that on the Maturity Date the number of Settlement Shares shall be equal to the Base Amount on such date. 7 To be the number of Scheduled Trading Days specified as the Unwind Period in the Forward Instruction Notice.


 
7 [[5556494]] Undesignated Shares: As of any date, the Base Amount minus the number of Shares designated as Settlement Shares for Settlements for which the Settlement Date has not occurred. Settlement: Physical Settlement, Cash Settlement or Net Share Settlement, at the election of the Company, as set forth in a Settlement Notice that satisfies the Settlement Notice Requirements, delivered to Forward Purchaser on any Scheduled Trading Day after the Effective Date. Notwithstanding any election to the contrary in any Settlement Notice, Physical Settlement shall be applicable (i) if no Settlement Method is validly elected, (ii) with respect to any Settlement Shares in respect of which Forward Purchaser is, or at any time during the Unwind Period becomes, unable, in its good faith and commercially reasonable judgment, to unwind its hedge by the end of the Unwind Period (x) in a manner that, in the reasonable judgment of Forward Purchaser, based on the advice of counsel, (A) is consistent with the requirements for qualifying for the safe harbor provided by Rule 10b-18 under the Exchange Act and (B) would not raise material risks of noncompliance with applicable securities laws or (y) due to the occurrence of one or more Disrupted Days (in whole or in part) or due to the lack of sufficient liquidity in the Shares on any Exchange Business Day during the Unwind Period relative to the liquidity on the Effective Date (iii) to any Termination Settlement Date (as defined below under “Termination Settlement”), (iv) if the Maturity Date is a Settlement Date other than as the result of a valid Settlement Notice in respect of such Settlement Date or (v) with respect to the Settlement Shares in whole or in part as determined by the Forward Purchaser if at any time from and including the date of delivery of the Settlement Notice through and including the last Exchange Business Day of the Unwind Period, the trading price per Share on the Exchange (as determined by Forward Purchaser in a commercially reasonable manner) is less than $[●]8 (the “Threshold Price”). Settlement Notice Requirements; Valid Election of Cash Settlement or Net Share Settlement: A Settlement Notice must be in writing and must specify a number of Settlement Shares equal to or less than the Undesignated Shares and equal to or greater than the Minimum Settlement Shares. Notwithstanding any other provision hereof, a Settlement Notice delivered by the Company that specifies Cash Settlement or Net Share 8 To be equal to 50% of the Minimum Price specified in the Forward Instruction Notice.


 
8 [[5556494]] Settlement will not require Cash Settlement or Net Share Settlement, and the Cash Settlement or Net Share Settlement requested in such Settlement Notice will not, for purposes of this Confirmation, be validly elected unless and until (A) timely delivered in accordance with the provisions set forth opposite “Settlement Date” above, (B) specifying a number of Settlement Shares no greater than the Undesignated Shares and not less than the Minimum Settlement Shares, (C) for which the Unwind Period will not overlap with the unwind period (or any similar such period) or any forward hedge selling period (or any similar such period) in each case for any other transaction with any other agent or forward purchaser pursuant to the Equity Distribution Agreement and (D) including in the Settlement Notice containing such election the following representations and warranties to Forward Purchaser as of the date of such Settlement Notice: (i) the Company is not aware of any material nonpublic information concerning itself or the Shares, (ii) the Company is electing the settlement method and designating the First Unwind Date specified in such Settlement Notice in good faith and not as part of a plan or scheme to evade compliance with Rule 10b-5 under the Exchange Act (“Rule 10b-5”) or any other provision of the federal securities laws, (iii) the Company is not “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)), (iv) the Company would be able to purchase a number of Shares equal to the greater of (x) the number of Settlement Shares designated in such Settlement Notice and (y) a number of Shares with a value as of the date of such Settlement Notice equal to the product of (I) such number of Settlement Shares and (II) the applicable Relevant Forward Price for such Cash Settlement or Net Share Settlement in compliance with the laws of the Company’s jurisdiction of organization, (v) such election, and settlement in accordance therewith, does not violate or conflict with any law or regulation applicable to the Company, or any order or judgment of any court or other agency of government applicable to it or any of its assets and (vi) the Unwind Period will not overlap with the unwind period (or any similar such period) or any forward hedge selling period (or any similar such period) in each case for any other transaction with any other agent or forward purchaser pursuant to the Equity Distribution Agreement.


 
9 [[5556494]] Minimum Settlement Shares [●]9 Unwind Period: The period from and including the first Exchange Business Day following the date on which Forward Purchaser has received from the Company a Settlement Notice satisfying the Settlement Notice Requirements and validly electing Cash Settlement or Net Share Settlement in respect of a Settlement Date through the second Exchange Business Day preceding such Settlement Date; subject to “Termination Settlement” below. Unwind Period Disrupted Days: If any Scheduled Trading Day during an Unwind Period is a Disrupted Day in whole or in part, the Calculation Agent shall make commercially reasonable adjustments to the terms of the Transaction (including, without limitation, the Cash Settlement Amount, the number of Net Share Settlement Shares and the Settlement Price) to account for the occurrence of each such Disrupted Day. Market Disruption Event: Section 6.3(a) of the Definitions is hereby amended by replacing the first sentence in its entirety with the following: “‘Market Disruption Event’ means in respect of a Share or an Index, the occurrence or existence at any time of (i) a Trading Disruption, (ii) an Exchange Disruption, (iii) an Early Closure or (iv) a Regulatory Disruption, in each case, that the Calculation Agent determines, in its commercially reasonable judgment, is material.” Early Closure: Section 6.3(d) of the Definitions is hereby amended by deleting the remainder of the provision following the term “Scheduled Closing Time” in the fourth line thereof. Regulatory Disruption: Any event that Forward Purchaser, in its reasonable discretion, based on advice of counsel, determines makes it appropriate with regard to any legal, regulatory or self-regulatory requirements or related policies and procedures (that generally apply to transactions of a nature and kind similar to the Transaction and have been adopted in good faith by Forward Purchaser) for Forward Purchaser to refrain from or decrease any market activity in connection with the Transaction. For the avoidance of doubt, a Scheduled Trading Day on which a Regulatory Disruption occurs shall be a Disrupted Day in full. Subject to applicable legal requirements and Forward Purchaser’s internal policies and guidelines, Forward 9 Insert the number specified as the Minimum Settlement Shares in the Forward Instruction Notice.


 
10 [[5556494]] Purchaser shall promptly notify the Company upon the occurrence of a Regulatory Disruption and shall subsequently promptly notify the Company on the day Forward Purchaser believes that the circumstances giving rise to such Regulatory Disruption have changed. Forward Purchaser shall make its determination of a Regulatory Disruption in a manner consistent with the determinations made with respect to other issuers under similar facts and circumstances. Securities Act: The Securities Act of 1933, as amended from time to time. Physical Settlement: On any Settlement Date in respect of which Physical Settlement applies, the Company shall deliver to Forward Purchaser through the Clearance System the Settlement Shares for such Settlement Date, and Forward Purchaser shall deliver to the Company, by wire transfer of immediately available funds to an account designated by the Company, an amount in cash equal to the Physical Settlement Amount for such Settlement Date, on a delivery versus payment basis. If, on any Settlement Date, the Shares to be delivered by the Company to Forward Purchaser hereunder are not so delivered (the “Deferred Shares”), and a Forward Price Reduction Date occurs during the period from, and including, such Settlement Date to, but excluding, the date such Shares are actually delivered to Forward Purchaser, then the portion of the Physical Settlement Amount payable by Forward Purchaser to the Company in respect of the Deferred Shares shall be reduced by an amount equal to the Forward Price Reduction Amount for such Forward Price Reduction Date, multiplied by the number of Deferred Shares. Physical Settlement Amount: For any Settlement Date in respect of which Physical Settlement applies, an amount in cash equal to the product of (i) the Forward Price on such Settlement Date and (ii) the number of Settlement Shares for such Settlement Date. Cash Settlement: On any Settlement Date in respect of which Cash Settlement applies, if the Cash Settlement Amount for such Settlement Date is a positive number, the Company will pay such Cash Settlement Amount to Forward Purchaser. If the Cash Settlement Amount is a negative number, Forward Purchaser will pay the absolute value of such Cash Settlement Amount to the Company. Such amounts shall be paid on the Settlement Date by wire transfer of immediately available funds. Cash Settlement Amount: Notwithstanding Section 8.5(c) of the Definitions, for any Settlement Date and the number of Settlement Shares to which


 
11 [[5556494]] Cash Settlement or Net Share Settlement applies on such Settlement Date, and subject to “Unwind Period Disrupted Days” above, an amount determined by the Calculation Agent equal to the sum of (X) the product, whether a positive or negative number, of (i) the Settlement Price minus the Relevant Forward Price times (ii) the number of Settlement Shares for such Settlement Date plus (Y) the product, expressed as a positive number, of (i) the Forward Price Reduction Amount for any Forward Price Reduction Date that occurs during such Unwind Period, and (ii) the number of Settlement Shares with respect to which Forward Purchaser has not unwound its hedge as of such Forward Price Reduction Date. Settlement Price: The weighted average price at which Forward Purchaser purchases Shares during the Unwind Period (excluding any Disrupted Days in full) to unwind its hedge with respect to the Settlement Shares, taking into account Shares anticipated to be delivered or received if Net Share Settlement applies and the covenant of Forward Purchaser in Section 7(b) of this Confirmation. Relevant Forward Price: The arithmetic average of the Forward Prices over the period beginning on, and including, the first day that is one Settlement Cycle following the first day of the applicable Unwind Period and ending on, and including, such Settlement Date (calculated assuming no reduction to the Forward Price for any Forward Price Reduction Date that occurs during the Unwind Period), minus USD 0.02. Net Share Settlement: On any Settlement Date in respect of which Net Share Settlement applies, if the number of Net Share Settlement Shares is a (i) positive number, the Company shall deliver a number of Shares to Forward Purchaser equal to the Net Share Settlement Shares or (ii) negative number, Forward Purchaser shall deliver to the Company a number of shares equal to the absolute value of the Net Share Settlement Shares; provided that if Forward Purchaser determines in its good faith judgment and in a commercially reasonable manner that it would be required to deliver Net Share Settlement Shares to the Company, Forward Purchaser may elect to deliver a portion of such Net Share Settlement Shares on one or more dates prior to the applicable Settlement Date. Net Share Settlement Shares: For any Settlement Date in respect of which Net Share Settlement applies, a number of Shares equal to the Cash Settlement Amount for such Settlement divided by the


 
12 [[5556494]] Settlement Price for such Settlement, such quotient to be rounded down to the nearest whole number, plus cash in lieu of any fractional Shares valued at the relevant Settlement Price. Settlement Currency: USD. Failure to Deliver: Not applicable. Adjustments: Method of Adjustment: Calculation Agent Adjustment. Additional Adjustment: If, in Forward Purchaser’s commercially reasonable judgment, the stock loan fee to Forward Purchaser (or an affiliate thereof), excluding the federal funds or other interest rate component payable by the relevant stock lender to Forward Purchaser or such affiliate (the “Stock Loan Fee”), to borrow a number of Shares equal to the Base Amount to hedge its exposure to the Transaction in a commercially reasonable manner exceeds [●]10 basis points per annum, the Calculation Agent shall reduce the Forward Price in order to compensate Forward Purchaser for the amount by which the Stock Loan Fee exceeds [●]11 basis points per annum. The Calculation Agent shall notify the Company prior to making any such adjustment to the Forward Price and, upon the request of the Company, Forward Purchaser shall provide to Company an itemized list of the Stock Loan Fees which need not name particular stock lenders, or provide confidential models or other information proprietary to Forward Purchaser, or include other information that is proprietary or subject to contractual, legal or regulatory obligations to not disclose such information; provided that delivery of such information need not precede any such adjustment by the Calculation Agent. Determining Party: Forward Purchaser Account Details: Payments to Forward Purchaser: To be advised under separate cover or telephone confirmed prior to each Settlement Date. 10 Insert Initial Stock Loan Rate specified in the Forward Instruction Notice. 11 Insert Initial Stock Loan Rate specified in the Forward Instruction Notice.


 
13 [[5556494]] Payments to the Company: To be advised under separate cover or telephone confirmed prior to each Settlement Date. Delivery of Shares to Forward Purchaser: To be advised. Delivery of Shares to the Company: To be advised. Conditions to Effectiveness. This Transaction shall be effective if and only if Shares are sold by the Agent acting as forward seller for Forward Purchaser on or after the Trade Date and on or before the Hedge Completion Date pursuant to the Equity Distribution Agreement. If the Equity Distribution Agreement is terminated prior to any such sale of Shares thereunder, the parties shall have no further obligations in connection with this Transaction, other than in respect of breaches of representations or covenants on or prior to such date. For the avoidance of doubt, if the Equity Distribution Agreement is terminated prior to the Hedge Completion Date, this Confirmation shall remain in effect with respect to any Shares that had been sold by the Agent acting as forward seller for Forward Purchaser on or after the Trade Date and prior to such termination. The effectiveness of this Transaction on the Effective Date shall be subject to the satisfaction (or waiver by Forward Purchaser) of the following conditions: (a) the representations and warranties of the Company in the Equity Distribution Agreement, and any certificate delivered pursuant thereto by the Company shall be true and correct on the Effective Date as if made as of the Effective Date; (b) the Company shall have performed all of the obligations required to be performed by it under the Equity Distribution Agreement on or prior to the Effective Date; (c) all of the conditions set forth in Section 9 of the Equity Distribution Agreement shall have been satisfied; (d) the effective date of the Forward Instruction Notice shall have occurred as provided in the Equity Distribution Agreement; (e) all of the representations and warranties of the Company hereunder and under the Agreement shall be true and correct on the Effective Date as if made as of the Effective Date; (f) the Company shall have performed all of the obligations required to be performed by it hereunder and under the Agreement on or prior to the Effective Date, including without limitation its obligations under “Covenants of the Company” hereof; and (g) the Company shall, if requested by Forward Purchaser prior to the Trade Date, have delivered to Forward Purchaser opinions of each of O’Melveny & Myers LLP and Venable LLP in form and substance reasonably satisfactory to Forward Purchaser, with respect to the matters set forth in Section 3(a)(i)-(iv) of the Agreement and that the maximum number of


 
14 [[5556494]] Shares initially issuable under the Transaction have been duly authorized and, upon issuance pursuant to the terms of the Transaction, will be validly issued, fully paid and nonassessable. Notwithstanding the foregoing or any other provision of this Confirmation, if in respect of the Transaction at any time on or prior to the Hedge Completion Date, (x) Forward Purchaser determines in its sole judgment that it is unable, after using commercially reasonable efforts, to borrow and deliver for sale the full number of Shares to be borrowed and sold in order to establish its commercially reasonable hedge position in respect of the Transaction (based on the Number of Shares specified in the Forward Instruction Notice) or (y) in Forward Purchaser’s sole judgment, Forward Purchaser would incur a stock loan cost of more than a rate equal to the Maximum Stock Loan Rate (as specified in the Forward Instruction Notice) with respect to all or any portion of such full number of Shares specified in the Forward Instruction Notice, then in each case the effectiveness of this Confirmation and the Transaction shall be limited to the number of Shares Forward Purchaser is so able to borrow in connection with establishing its commercially reasonable hedge position of this Transaction at a cost of not more than a rate equal to the Maximum Stock Loan Rate, which, for the avoidance of doubt, may be zero. Interpretive Letter. The Company agrees and acknowledges that the Transaction is being entered into in accordance with the October 9, 2003 interpretive letter from the staff of the Securities and Exchange Commission to Goldman, Sachs & Co. (the “Interpretive Letter”). Representations, Warranties and Agreements of the Company. In addition to the representations and warranties elsewhere in this Confirmation, in the Agreement and in Section 6 of the Equity Distribution Agreement, as of the Trade Date, the Company represents and warrants to Forward Purchaser, and agrees with Forward Purchaser, as follows, with each such representation, warranty and agreement of the Company deemed repeated on the Effective Date, each date on which a Settlement Notice is delivered, each Settlement Date and any other date specified in such representation, warranty or agreement: (a) The representations and warranties of the Company set forth in Section 6 of the Equity Distribution Agreement are true and correct and are deemed to be repeated to Forward Purchaser as if set forth herein. (b) The Company (i) is not aware of any material non-public information regarding itself or the Shares; (ii) is entering into this Transaction and will deliver any Settlement Notice in good faith and not as part of a plan or scheme to evade compliance with Rule 10b-5 or any other provision of the federal securities laws; (iii) has not entered into or altered any hedging transaction relating to the Shares corresponding to or offsetting the Transaction; and (iv) has consulted with its own advisors as to the legal aspects of its adoption and implementation of this Confirmation under Rule 10b5-1 under the Exchange Act (“Rule 10b5-1”). (c) The Company is not entering into this Transaction and will not deliver any Settlement Notice to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for Shares), or to raise or depress or otherwise


 
15 [[5556494]] manipulate the price of the Shares (or any security convertible into or exchangeable for Shares), for the purpose of inducing the purchase or sale of the Shares (or any security convertible into or exchangeable for Shares) by others or otherwise in violation of the Exchange Act. (d) Any Shares, when issued and delivered in accordance with the terms of the Transaction, will be duly authorized and validly issued, fully paid and nonassessable, and the issuance thereof will not be subject to any preemptive or similar rights. (e) The Company has reserved and will keep available at all times, free from preemptive rights, out of its authorized but unissued Shares, solely for the purpose of issuance upon settlement of the Transaction, each Additional Transaction (if any) and each other forward transaction with other Forward Purchasers (as defined in the Equity Distribution Agreement) in accordance with the terms of the Equity Distribution Agreement, the maximum number of Shares as shall be issuable at such time upon settlement of the Transaction (as set forth below under the heading “Maximum Share Delivery”), each Additional Transaction and each such other forward transaction. All Shares so issuable shall, upon such issuance, be accepted for listing or quotation on the Exchange. (f) No filing with, or approval, authorization, consent, license registration, qualification, order or decree of, any court or governmental authority or agency, domestic or foreign, is necessary or required for the execution, delivery and performance by the Company of this Confirmation and the consummation of the Transaction (including, without limitation, the issuance and delivery of Shares on any Settlement Date) except such as have been obtained under the Securities Act. (g) The Company will not, and will cause its affiliated purchasers (as interpreted under Rule 10b-18, “Affiliated Purchasers”) not to, take or refrain from taking any action (including, without limitation, any direct purchases or any purchases by a party to a derivative transaction with the Company or any of its Affiliated Purchasers), either under this Confirmation, under an agreement with another party or otherwise, that is reasonably likely to cause any purchases of Shares by Forward Purchaser or any of its affiliates in connection with any Cash Settlement or Net Share Settlement of the Transaction not to meet the requirements of the safe harbor provided by Rule 10b-18 under the Exchange Act if such purchases were made by the Company. (h) During any Unwind Period, except with the prior written consent of Forward Purchaser, the Company will not, and will cause its Affiliated Purchasers not to, directly or indirectly (including, without limitation, by means of a derivative instrument) purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or announce or commence any tender offer relating to, any Shares (or equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share) or any security convertible into or exchangeable for the Shares. (i) The Company will not be subject to any “restricted period” (as such term is defined in Regulation M promulgated under the Exchange Act (“Regulation M”)) in


 
16 [[5556494]] respect of Shares or any security with respect to which the Shares are a “reference security” (as such term is defined in Regulation M) during any Unwind Period for the Transaction. (j) The Company is not insolvent, nor will the Company be rendered insolvent as a result of the Transaction. (k) The Company is not, and after giving effect to the transactions contemplated hereby will not be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended. (l) (1) The Company is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities; (2) the Company is entering into the Transaction as principal (and not as agent or in any other capacity); (3) neither the Forward Purchaser nor any of its Affiliates or agents are acting as a fiduciary for the Company; (4) the Company is not relying upon any representations except those expressly set forth herein or in the Agreement; (5) the Company has consulted with its own legal, regulatory, tax, business, investments, financial, and accounting advisors to the extent that it has deemed necessary, and it has made its own investments, hedging, and trading decisions based upon its own judgment and upon any advice from such advisors as it has deemed necessary and not upon any view expressed by Forward Purchaser or any of its Affiliates or agents; (6) the Company is entering into the Transaction with a full understanding of the terms, conditions and risks thereof and it is capable of and willing to assume those risks; (7) the Company will exercise independent judgment in evaluating the recommendations of any broker-dealer or its associated persons, unless it has otherwise notified the broker-dealer in writing; (8) the Company is entering into the Transaction for a bona fide business purpose; and (9) the Company has total assets of at least USD 50 million as of the date hereof; (m) The Company acknowledges and agrees that: (1) during the term of the Transaction, Forward Purchaser and its Affiliates may buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to establish, adjust or unwind its hedge position with respect to the Transaction; (2) Forward Purchaser and its Affiliates may also be active in the market for the Shares and Share-linked transactions other than in connection with hedging activities in relation to the Transaction; (3) Except as and to the extent specified in a Forward Instruction Notice as agreed by Forward Purchaser with respect to the sale of Forward Hedge Shares (as defined in the Equity Distribution Agreement) during the Forward Hedge Selling Period, Forward Purchaser shall make its own determination as to whether, when or


 
17 [[5556494]] in what manner any hedging or market activities in the Company’s securities shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Forward Price and the Settlement Price; (4) any market activities of Forward Purchaser and its Affiliates with respect to the Shares may affect the market price and volatility of the Shares, as well as the Forward Price and Settlement Price, each in a manner that may be adverse to the Company; and (5) the Transaction is a derivatives transaction in which it has granted Forward Purchaser the right, under certain circumstances, to receive cash or Shares, as the case may be; Forward Purchaser may purchase Shares for its own account at an average price that may be greater than, or less than, the effective price paid by the Company under the terms of the Transaction; (n) The assets of the Company do not constitute “plan assets” under the Employee Retirement Income Security Act of 1974, as amended, the Department of Labor Regulations promulgated thereunder or similar law. (o) Without limiting the generality of Section 13.1 of the Definitions, the Company acknowledges that Forward Purchaser is not making any representations or warranties or taking any position or expressing any view with respect to the treatment of the Transaction under any accounting standards including ASC Topic 260, Earnings Per Share, ASC Topic 815, Derivatives and Hedging, or ASC Topic 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity (or any successor issue statements) or under FASB’s Liabilities & Equity Project. (p) The Company understands no obligations of Forward Purchaser to it hereunder will be entitled to the benefit of deposit insurance and that such obligations will not be guaranteed by any affiliate of Forward Purchaser or any governmental agency. (q) No federal, state or local (including non-U.S. jurisdictions) law, rule, regulation or regulatory order applicable to the Company or the Shares would give rise to any reporting, consent, registration or other requirement (including without limitation a requirement to obtain prior approval from any person or entity) as a result of Forward Purchaser or its affiliates owning or holding (however defined) the Base Amount of Shares as a commercially reasonable hedge position in connection with the Transaction in accordance with the terms of this Confirmation and the Agreement, other than Sections 13 and 16 under the Exchange Act and Sections 3-601 through 3-605 and Sections 3-701 through 3-710 of the Maryland General Corporation Law (the “MGCL”). (r) The Company represents to Forward Purchaser that Forward Purchaser, solely in its capacity as “Forward Purchaser” or “Forward Seller” (each as defined in the Equity Distribution Agreement) and solely with respect to its entering into and


 
18 [[5556494]] consummating the transactions contemplated by this Confirmation and the Equity Distribution Agreement (including any other “Confirmation” thereunder) will not collectively with the other Forward Purchasers or Forward Sellers under the Equity Distribution Agreement be a “Person” (as defined in the Articles (as defined below)) by virtue of being a member of a “group” (as referenced in the definition of Person in the Articles) with such Forward Purchasers or Forward Sellers or both. (s) The Company is not and has not been the subject of any civil proceeding of a judicial or administrative body of competent jurisdiction that could reasonably be expected to impair materially the Company’s ability to perform its obligations hereunder. (t) Ownership positions of the Shares held by Forward Purchaser or any of its affiliates solely in its capacity as a nominee or fiduciary do not constitute “beneficial ownership” or “constructive ownership” by Forward Purchaser for the purposes of Article VII of the Company’s charter (the “Articles”). (u) Other than as set forth in Article VII of the Articles, none of the Company’s constitutive, governing or organizational documents and no contract or agreement to which the Company or any of its assets are subject, would give rise to reporting or registration obligations or other requirements (including without limitation a requirement to obtain prior approval from any person or entity) of a Forward Purchaser or that would give rise to any consequences potentially adverse to the Company as a result of Forward Purchaser or its affiliates owning or holding (however defined) the Base Amount of Shares as a commercially reasonable hedge position in connection with the Transaction in accordance with the terms of this Confirmation and the Agreement. (v) The Company agrees that the Company shall not deliver a Forward Instruction Notice specifying a Base Number of shares that, together with the number of Shares under any Additional Transactions (but not any other Shares, including, for the avoidance of doubt, any other Shares otherwise owned by the Forward Purchaser), in aggregate, would result in an Ownership Event (as defined below). Covenants of the Company. (a) Subject to the circumstances described under “Private Placement Procedures”, the parties acknowledge and agree that any Shares delivered by the Company to Forward Purchaser on any Settlement Date will be newly issued Shares and when delivered by Forward Purchaser (or an affiliate of Forward Purchaser) to securities lenders from whom Forward Purchaser (or an affiliate of Forward Purchaser) borrowed Shares in connection with hedging its exposure to the Transaction will be freely saleable without further registration or other restrictions under the Securities Act, in the hands of those securities lenders, irrespective of whether such stock loan is effected by Forward Purchaser or an affiliate of Forward Purchaser. Accordingly, the Company agrees that the Shares that it delivers to Forward Purchaser on each Settlement Date will not bear a restrictive legend and that such Shares will be deposited in, and the delivery thereof shall be effected through the facilities of, the Clearance System. To the extent Forward Purchaser is obligated to deliver Shares under any Transaction, the provisions of Sections 9.2 (last sentence only), 9.8, 9.9, 9.10, 9.11 and 9.12 of the Definitions will be applicable as if “Physical


 
19 [[5556494]] Settlement” applied to the Transaction; provided that the Representation and Agreement contained in Section 9.11 of the Definitions shall be modified by excluding any representations therein relating to restrictions, obligations, limitations or requirements under applicable securities laws that exist as a result of the fact that the Company is the issuer of the Shares. (b) In addition to the agreements of the Company set forth above, the Company agrees to provide Forward Purchaser prior written notice (an “Issuer Repurchase Notice”) prior to executing any repurchase of Shares by the Company or any of its subsidiaries (or entering into any contract that would require, or give the option to, the Company or any of its subsidiaries to purchase or repurchase Shares), whether out of profits or capital or whether the consideration for such repurchase is cash, securities or otherwise (an “Issuer Repurchase”), that alone or in the aggregate would result in the Base Amount Percentage (as defined below) being greater by 0.5% or more than the Base Amount Percentage at the time of the immediately preceding Issuer Repurchase Notice (or in the case of the first such Issuer Repurchase Notice, greater than the Base Amount Percentage as of the later of the date hereof or the immediately preceding Settlement Date, if any). The “Base Amount Percentage” as of any day is the fraction (1) the numerator of which is the aggregate of the Base Amount and each “Base Amount” (as defined in the applicable Additional Confirmation) under any outstanding Additional Transactions and (2) the denominator of which is the number of Shares outstanding on such day. (c) The Company shall (i) notify Forward Purchaser prior to the opening of trading in the Shares on any day during any Unwind Period on which the Company makes or expects to be made any public announcement (as defined in Rule 165(f) under the Securities Act) by any party of any merger, acquisition, or similar transaction involving a recapitalization relating to the Company (other than any such transaction in which the consideration consists solely of cash and there is no valuation period), (ii) promptly notify Forward Purchaser following any such announcement that such announcement has been made, (iii) promptly deliver to Forward Purchaser following the making of any such announcement information indicating (A) the Company’s average daily Rule 10b-18 purchases (as defined in Rule 10b-18) during the three full calendar months preceding the date of the announcement of such transaction and (B) the Company’s block purchases (as defined in Rule 10b-18) effected pursuant to paragraph (b)(4) of Rule 10b-18 during the three full calendar months preceding the date of the announcement of such transaction and (iv) promptly notify Forward Purchaser of the earlier to occur of the completion of such transaction and the completion of the vote by target shareholders. (d) The Company has reserved and will keep available at all times, free from preemptive rights, out of its authorized but unissued Shares, solely for the purpose of issuance upon settlement of the Transaction as herein provided, the maximum number of Shares as shall be issuable at such time upon settlement of the Transaction as set forth below under the heading “Maximum Share Delivery”. All Shares so issuable shall, upon such issuance, be accepted for listing or quotation on the Exchange. (e) Neither the Company nor any of its affiliates shall take or refrain from taking any action (including, without limitation, any direct purchases by the Company or any of its affiliates or any purchases by a party to a derivative transaction with the Company or any of its affiliates), either under this Confirmation, under an agreement with another party or otherwise, that is reasonably likely to cause any purchases of Shares by Forward Purchaser or any of its affiliates


 
20 [[5556494]] in connection with any Cash Settlement or Net Share Settlement of the Transaction not to meet the requirements of the safe harbor provided by Rule 10b-18 under the Exchange Act if such purchases were made by the Company. (f) Without limiting the obligations of the Company hereunder, the Company shall, at least one day prior to the first day of any Unwind Period, notify Forward Purchaser of the total number of Shares purchased in Rule 10b-18 purchases of blocks pursuant to the once-a-week block exception contained in Rule 10b-18(b)(4) by or for the Company or any of its Affiliated Purchasers during each of the four calendar weeks preceding the first day of any Unwind Period and during the calendar week in which the first day of an Unwind Period occurs (“Rule 10b-18 purchase” and “blocks” each being used as defined in Rule 10b-18). (g) Upon obtaining knowledge of the occurrence of any event that would constitute an Event of Default or Potential Event of Default, the Company will so notify Forward Purchaser in writing within one Scheduled Trading Day. Covenants of Forward Purchaser. (a) Unless the provisions set forth below under “Private Placement Procedures” shall be applicable, Forward Purchaser shall use any Shares delivered by the Company to Forward Purchaser on any Settlement Date to return to securities lenders to close out open Share loans created by Forward Purchaser or an affiliate of Forward Purchaser in the course of Forward Purchaser’s or such affiliate’s hedging activities related to Forward Purchaser’s exposure under this Confirmation. (b) In connection with bids and purchases of Shares in connection with any Net Share Settlement or Cash Settlement, Forward Purchaser shall use commercially reasonable, good faith efforts to conduct its activities, or cause its affiliates to conduct their activities, in a manner consistent with the requirements of the safe harbor provided by Rule 10b-18 under the Exchange Act, as if such provisions were applicable to such purchases and taking into account any applicable Securities and Exchange Commission no-action letters as appropriate, and subject to any delays between the execution and reporting of a trade of the Shares on the Exchange and other circumstances beyond Forward Purchaser’s control provided however, that the foregoing agreement shall not apply to purchases made to dynamically hedge for Forward Purchaser’s own account or the account of its affiliate(s) the optionality arising under the Transaction (including, for the avoidance of doubt, timing optionality). Insolvency Filing. The parties hereto agree that, notwithstanding anything to the contrary in the Agreement or the Definitions, the Transaction constitutes a contract to issue a security of the Company as contemplated by Section 365(c)(2) of the Bankruptcy Code and that the Transaction and the obligations and rights of the Company and Forward Purchaser (except for any liability as a result of breach of any of the representations or warranties provided by the Company above under the headings “Representations, Warranties and Agreements of the Company” and “Covenants of the Company”) shall immediately terminate, without the necessity of any notice, payment (whether directly, by netting or otherwise) or other action by the Company or Forward Purchaser, if, on or


 
21 [[5556494]] prior to the final Settlement Date, an Insolvency Filing occurs or any other proceeding commences with respect to the Company under the Bankruptcy Code (a “Bankruptcy Termination Event”). Acceleration Events. Each of the following events shall constitute an “Acceleration Event”: (a) Stock Borrow Events. In the commercially reasonable judgment of Forward Purchaser (i) Forward Purchaser (or its affiliate) is unable to hedge Forward Purchaser’s exposure to the Transaction because of the lack of sufficient Shares being made available by lenders for Share borrowing, or (ii) Forward Purchaser (or its affiliate) would incur a Stock Loan Fee to borrow a number of Shares equal to the Base Amount of more than a rate of [●]12 basis points per annum (each, a “Stock Borrow Event”). (b) Extraordinary Dividends; Excess Dividend; Other Distributions. On any day occurring on or after the Trade Date (i) the Company declares an Extraordinary Dividend (as defined below); (ii) the ex-dividend date for any Excess Dividend (as defined below) occurs or (iii) the Company declares any distribution, issue or dividend to existing holders of the Shares of (A) Shares, (B) other share capital or securities granting the right to payment of dividends and/or the proceeds of liquidation of the Company equally or proportionately with such payments to holders of Shares or (C) share capital, securities, rights, warrants or other instruments, property or assets of any kind whatsoever of the Company or another issuer, in each case ((A), (B) or (C)) without payment therefor or for payment (cash or other consideration) at less than the prevailing market price therefor, as determined by Forward Purchaser in a commercially reasonable manner. “Extraordinary Dividend” means the per Share amount or value, as determined in the Forward Purchaser’s commercially reasonable judgment of any dividend or distribution declared by the Company with respect to the Shares that is designated by the board of directors of the Company as an “extraordinary” or “special” dividend. “Excess Dividend” means with respect to the Shares and any date of determination, any dividend or distribution to existing holder of Shares (other than an Extraordinary Dividend) the amount or value of which per Share (as determined by the Calculation Agent) when aggregated with the amount or value on a per Share basis (as determined by the Calculation Agent) of all previous dividends and distributions (other than Extraordinary Dividends) having an ex-dividend date during the period from and including any Forward Price Reduction Date (as determined by the Calculation Agent on the basis that the Trade Date is a Forward Price Reduction Date for purposes of this clause only) to but excluding the next subsequent Forward Price Reduction Date exceeds the Forward Price Reduction Amount set forth for such period on Schedule I. (c) ISDA Event. As to Company or Forward Purchaser, the occurrence of any Event of Default or Termination Event, other than an Event of Default or Termination Event that also constitutes a Bankruptcy Termination Event, that with notice or the passage of time would give rise to the right of the other party to designate an Early Termination Date pursuant to Section 6 of the Agreement. 12 Insert Maximum Stock Loan Rate from Forward Instruction Notice.


 
22 [[5556494]] (d) Equity Definitions Event. The announcement of any event that if consummated, would result in an Extraordinary Event or the occurrence of any Change in Law or a Delisting; provided that in case of a Delisting, in addition to the provisions of Section 12.6(a)(iii) of the Definitions, it will also constitute a Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, the Nasdaq Global Select Market or the Nasdaq Global Market (or their respective successors); provided further that Section 12.1(b) of the Definitions is hereby amended by deleting the remainder of such Section beginning with the words “in each case if the Merger Date is on or before” in the fourth to last line thereof; and provided further that the definition of “Change in Law” provided in Section 12.9(a)(ii) of the Definitions is hereby amended by (i) replacing the phrase “the interpretation” in the third line thereof with the phrase “, or public announcement of, the formal or informal interpretation” and (ii) replacing the parenthetical beginning after the word “regulation” in the second line thereof the words “(including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption, effectiveness or promulgation of new regulations authorized or mandated by existing statute)”. (e) Ownership Event. In the reasonable judgment of Forward Purchaser, on any day, an Excess Section 13 Ownership Position, Excess Exchange Ownership Position, Excess Charter Ownership Position or Excess Regulatory Ownership Position (each as defined below) exists or would exist but for the limitations set forth in Section 17 hereof, in each case as determined by Forward Purchaser in good faith and in its reasonable discretion. Termination Settlement. Upon the occurrence of any Acceleration Event, Forward Purchaser shall have the right to designate, upon at least one Scheduled Trading Days’ notice, any Scheduled Trading Day following such occurrence to be a Settlement Date hereunder (a “Termination Settlement Date”) to which Physical Settlement shall apply, and to select the number of Settlement Shares (which in the sole discretion of the Forward Purchaser may be the Base Amount at such time) relating to such Termination Settlement Date; provided that (i) in the case of an Acceleration Event arising out of an Ownership Event (as defined below), the number of Settlement Shares so designated by Forward Purchaser shall not exceed the number of Shares reasonably necessary, in the reasonable judgment of Forward Purchaser, to reduce the Settlement Shares, or the Base Amount, as applicable, to comply with the Applicable Share Limit and (ii) in the case of an Acceleration Event arising out of a Stock Borrow Event, the number of Settlement Shares so designated by Forward Purchaser shall not exceed the number of Shares (if less than the Base Amount) as to which such Stock Borrow Event exists. If, upon designation of a Termination Settlement Date by Forward Purchaser pursuant to the preceding sentence, the Company fails to deliver the Settlement Shares relating to such Termination Settlement Date when due or otherwise fails to perform its obligations in respect of the Transaction, an Early Termination Date shall be deemed to occur and Section 6 of the Agreement shall apply, on the basis that such failure is an Event of Default. If an Acceleration Event occurs during an Unwind Period relating to a number of Settlement Shares to which Cash Settlement or Net Share Settlement applies, then on the Termination Settlement Date relating to such Acceleration Event, at the election of Forward Purchaser in its sole discretion, and notwithstanding any election to the contrary by the Company, Cash Settlement or Net Share Settlement shall apply to the portion of the Settlement Shares relating to such Unwind Period as to which Forward Purchaser has unwound its hedge, as


 
23 [[5556494]] reasonably determined by Forward Purchaser and Physical Settlement shall apply in respect of (x) the remainder (if any) of such Settlement Shares and (y) the Settlement Shares designated by Forward Purchaser in respect of such Termination Settlement Date. If an Acceleration Event occurs after the Company has designated a Settlement Date to which Physical Settlement applies but before the relevant Settlement Shares have been delivered to Forward Purchaser, Forward Purchaser shall have the right to cancel such Settlement Date and designate a Termination Settlement Date in respect of such Settlement Shares and any other Shares pursuant to the first sentence hereof. Private Placement Procedures. If the Company is unable to comply with the provisions of Section 6(a) “Covenants of the Company” above because of a change in law or a change in the policy of the Securities and Exchange Commission or its staff, or Forward Purchaser otherwise reasonably determines, based on advice of counsel, that any Settlement Shares to be delivered to Forward Purchaser by the Company may not be freely returned by Forward Purchaser or its affiliates to securities lenders as described under “Covenants of the Company” above, then delivery of any such Settlement Shares (the “Restricted Shares”) shall be effected pursuant to Annex A hereto, unless waived by Forward Purchaser. Rule 10b5-1; Unwind Period Communications. (a) It is the intent of Forward Purchaser and the Company that following any election of Cash Settlement or Net Share Settlement by the Company, the purchase of Shares by Forward Purchaser during any Unwind Period comply with the requirements of Rule 10b5-1(c)(1)(i)(B) of the Exchange Act and that this Confirmation shall be interpreted to comply with the requirements of Rule 10b5-1(c). (b) The Company agrees that it will not attempt to exercise any influence on Forward Purchaser (or its agent or affiliate) over how, when or whether to effect purchases of Shares in connection with any Cash Settlement or Net Share Settlement. (c) The Company hereby agrees with Forward Purchaser that during any Unwind Period the Company shall not communicate, directly or indirectly, any Material Non-Public Information (as defined herein) to any Derivatives Personnel (as defined below). For purposes of the Transaction, “Material Non-Public Information” means information relating to the Company or the Shares that (a) has not been widely disseminated by wire service, in one or more newspapers of general circulation, by communication from the Company to its shareholders or in a press release, or contained in a public filing made by the Company with the Securities and Exchange Commission and (b) a reasonable investor might consider to be of importance in making an investment decision to buy, sell or hold Shares. For the avoidance of doubt and solely by way of illustration, information should be presumed “material” if it relates to such matters as dividend increases or decreases, earnings estimates, changes in previously released earnings estimates, significant expansion or curtailment of operations, a significant increase or decline of orders, significant merger or acquisition proposals or agreements, significant new products or discoveries, extraordinary borrowing, major litigation, liquidity problems, extraordinary management developments, purchase or sale of substantial assets, or other similar information.


 
24 [[5556494]] For purposes of the Transaction, “Derivatives Personnel” means any employee on the trading side of the Equity Derivatives of Forward Purchaser and does not include [●] or [●] (or any other person or persons designated from time to time by the Compliance Group of Forward Purchaser). Maximum Share Delivery. Notwithstanding any other provision of this Confirmation, in no event will the Company be required to deliver on any Settlement Date, whether pursuant to Physical Settlement, Net Share Settlement, Termination Settlement or any Private Placement Settlement, more than a number of Shares equal to 1.5 times the Initial Base Amount, subject to reduction by the number of any Shares delivered by the Company on any prior Settlement Date and subject to adjustment from time to time in accordance with the provisions of this Confirmation and the Definitions (the “Share Cap”). Transfer and Assignment. Forward Purchaser may assign or transfer all, but not less than all, of its rights and duties hereunder to any affiliate of Forward Purchaser; provided that, under the applicable law effective on the date of such transfer or assignment, the Company will not be required, as a result of such transfer or assignment, to pay to the transferee an amount in respect of an Indemnifiable Tax greater than the amount, if any, that the Company would have been required to pay Forward Purchaser in the absence of such transfer or assignment; and the Company will not receive a payment from which an amount has been withheld or deducted, on account of a Tax in respect of which the other party is not required to pay an additional amount, unless the Company would not have been entitled to receive any additional amount in respect of such payment in the absence of such transfer or assignment, and Forward Purchaser shall cause the transferee or assignee to make such Payee Tax Representations and to provide such tax documentation as may be reasonably requested by the Company to permit the Company to make any necessary determinations pursuant to this proviso; provided further that (A) the affiliate’s obligations hereunder are fully and unconditionally guaranteed by Forward Purchaser or its parent or (B) the affiliate’s long-term issuer rating is equal to or better than the credit rating of Forward Purchaser at the time of such assignment or transfer. Notwithstanding the above or any other provision in this Confirmation to the contrary requiring or allowing Forward Purchaser to purchase, sell, receive or deliver any Shares or other securities to or from the Company, Forward Purchaser may designate any of its affiliates to purchase, sell, receive or deliver such Shares or other securities and otherwise to perform Forward Purchaser’s obligations in respect of the Transaction and any such designee may assume such obligations. Forward Purchaser shall be discharged of its obligations to the Company to the extent of any such performance. Additional Provisions under the Definitions: Non-Reliance: Applicable Additional Acknowledgments: Applicable Agreements and Acknowledgments Regarding Hedging Activities: Applicable


 
25 [[5556494]] No Collateral or Setoff; Claims in Bankruptcy. (a) Notwithstanding Section 6(f) or any other provision of the Agreement or any other agreement between the parties to the contrary, the obligations of the Company hereunder are not secured by any collateral. Obligations under the Transaction shall not be set off against any other obligations of the parties, whether arising under the Agreement, this Confirmation, under any other agreement between the parties hereto, by operation of law or otherwise, and no other obligations of the parties shall be set off against obligations under the Transaction, whether arising under the Agreement, this Confirmation, under any other agreement between the parties hereto, by operation of law or otherwise, and each party hereby waives any such right of setoff. In calculating any amounts under Section 6(e) of the Agreement, notwithstanding anything to the contrary in the Agreement, (a) separate amounts shall be calculated as set forth in such Section 6(e) with respect to (i) the Transaction and (ii) all other Transactions, and (b) such separate amounts shall be payable pursuant to Section 6(d)(ii) of the Agreement. (b) Forward Purchaser acknowledges and agrees that this confirmation is not intended to convey to Forward Purchaser rights with respect to the transactions contemplated hereby that are senior to the claims of common stockholders in any U.S. bankruptcy proceedings of the Company; provided, however, that nothing herein shall limit or shall be deemed to limit Forward Purchaser’s right to pursue remedies in the event of a breach by the Company of its obligations and agreements with respect to this Confirmation and the Agreement; and provided further, that nothing herein shall limit or shall be deemed to limit Forward Purchaser’s rights in respect of any transaction other than the Transaction. Limit on Beneficial Ownership. Notwithstanding any other provision in the Agreement, this Confirmation or any Additional Confirmation, in no event shall Forward Purchaser be entitled to receive, or be deemed to receive, or, with respect to clause (y) below, have the “right to acquire” (within the meaning of Nasdaq Listing Rule 5635(e)), Shares to the extent that, upon such receipt of such Shares, (i) the “beneficial ownership” (within the meaning of Section 13 or Section 16 of the Exchange Act and the rules promulgated thereunder) of Shares by Forward Purchaser, together with any of its affiliates and any of its affiliates’ business units that are subject to aggregation with Forward Purchaser for purposes of the “beneficial ownership” test under Section 13 and Section 16 of the Exchange Act and all persons who may form a “group” (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) with Forward Purchaser with respect to “beneficial ownership” of any Shares (collectively, “Forward Purchaser Group”) would be equal to or greater than the lesser of (x) 4.5% of the outstanding Shares (such condition, an “Excess Section 13 Ownership Position”), and (y) 4.9% of the outstanding Shares as of the Trade Date for any Transaction (such number of Shares, the “Threshold Number of Shares” and such condition, the “Excess Exchange Ownership Position”), (ii) violation would occur in respect of any restriction on ownership and/or transfers set forth in Article VII of the Articles (such condition, an “Excess Charter Ownership Position”) or (iii) Forward Purchaser, Forward Purchaser Group or any person whose ownership position would be aggregated with that of Forward Purchaser or Forward Purchaser Group (Forward Purchaser, Forward Purchaser Group or any such person, a “Forward Purchaser Person”) under Sections 3-601 through 3-605 and Sections 3-701 through 3-710 of the MGCL, Article VII of the Articles or any state or federal bank


 
26 [[5556494]] holding company or banking laws, or any federal, state or local laws, regulations or regulatory orders applicable to ownership of Shares (“Applicable Laws” and such condition described in this clause (iii), an “Excess Regulatory Ownership Position” and an Excess Section 13 Ownership Position, an Excess Exchange Ownership Position, an Excess Charter Ownership Position and an Excess Regulatory Ownership Position, individually and collectively, an “Ownership Event”), would own, beneficially own, constructively own, control, hold the power to vote or otherwise meet a relevant definition of ownership in excess of a number of Shares equal to (x) the lesser of (A) the maximum number of Shares that would be permitted under Applicable Laws and (B) the minimum number of Shares that would give rise to reporting or registration obligations or other requirements (including obtaining prior approval by a state or federal regulator) of a Forward Purchaser Person under Applicable Laws or that would give rise to any consequences potentially adverse to the Company under the Articles, in each case minus (y) one percent (1%) of the number of Shares outstanding on the date of determination (such number of Shares, the “Applicable Share Limit”). If any delivery owed to Forward Purchaser in connection with this Transaction is not made, in whole or in part, as a result of this Section 17, (i) the Company’s obligation to make such delivery shall not be extinguished and the Company shall make such delivery as promptly as practicable after, but in no event later than one Exchange Business Day after, Forward Purchaser gives notice to the Company that such delivery would not result in (x) Forward Purchaser Group directly or indirectly so beneficially owning in excess of the lesser of (A) 4.5% of the outstanding Shares and (B) the Threshold Number of Shares or (y) the occurrence of an Excess Regulatory Ownership Position and (ii) if such delivery relates to a Physical Settlement, notwithstanding anything to the contrary herein, Forward Purchaser shall not be obligated to satisfy the portion of its payment obligation with respect to such Transaction corresponding to any Shares required to be so delivered until the date the Company makes such delivery. The Company agrees to provide Forward Purchaser at least 10 Scheduled Trading Days’ written notice prior to any amendment, supplement, waiver or other modification to the Articles, bylaws or any other constitutive document of the Company that would reduce the ownership threshold set forth in Article VII of the Articles to a percentage lower than 9.9% or that would, based on the advice of counsel to the Company, give rise to any other restrictions under Applicable Laws applicable to Forward Purchaser (including with respect to its commercially reasonable hedge positions) with respect to the Transaction (a “Charter Notice”). Upon receipt of a Charter Notice, Forward Purchaser may designate an Additional Termination Event with respect to any portion of the Transaction that Forward Purchaser (or its affiliate), reasonably determines, based on advice of counsel, is necessary to reduce the Charter Percentage to (i) the lowest ownership level contemplated by Article VII of the Articles (or, if lower, the ownership level contemplated in any such other Applicable Restriction) minus (ii) 1.0%. The “Charter Percentage” shall be a fraction, the numerator of which is (i) the Base Amount plus (ii) any other Shares that Forward Purchaser, its affiliates and each other person subject to aggregation of Shares with Forward Purchaser under the Articles (or such other Applicable Restriction) reasonably determines, based on advice of counsel, may be “Beneficially Owned” or “Constructively Owned” (howsoever defined) under the Articles (or such other Applicable Laws), and the denominator of which is the number of Shares outstanding. Indemnification. The Company agrees to indemnify and hold harmless Forward Purchaser, its affiliates and its assignees and their respective directors, officers and


 
27 [[5556494]] controlling persons (Forward Purchaser and each such person being an “Indemnified Party”) from and against any and all losses, claims, damages and liabilities, joint or several, incurred by or asserted against such Indemnified Party arising out of, in connection with, or relating to, any breach of any covenant, agreement or representation of the Company in this Confirmation (including the Pricing Supplement thereto) or the Agreement. The Company will not be liable under the foregoing indemnification provision to the extent that any loss, claim, damage, liability or expense is found in a nonappealable judgment by a court of competent jurisdiction to have resulted from Forward Purchaser’s willful misconduct, gross negligence or bad faith in performing the services that are subject of the Transaction. If for any reason the foregoing indemnification is unavailable to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then the Company shall contribute, to the maximum extent permitted by law, to the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or liability. In addition, the Company will reimburse any Indemnified Party for all reasonable expenses (including reasonable counsel fees and expenses) as they are incurred in connection with the investigation of, preparation for or defense or settlement of any pending or threatened claim or any action, suit or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto and whether or not such claim, action, suit or proceeding is initiated or brought by or on behalf of the Company. The Company also agrees that no Indemnified Party shall have any liability to the Company or any person asserting claims on behalf of or in right of the Company in connection with or as a result of any matter referred to in this Confirmation (including the Pricing Supplement thereto) or the Agreement except to the extent that any losses, claims, damages, liabilities or expenses incurred by the Company result from the gross negligence, willful misconduct or bad faith of the Indemnified Party. The provisions of this Section 18 shall survive the completion of the Transaction contemplated by this Confirmation and any assignment and/or delegation of the Transaction made pursuant to the Agreement or this Confirmation shall inure to the benefit of any permitted assignee of Forward Purchaser. For the avoidance of doubt, any payments due as a result of this provision may not be used to set off any obligation of Forward Purchaser upon settlement of the Transaction. Delivery of Cash: For the avoidance of doubt, nothing in this Confirmation shall be interpreted as requiring the Company to deliver cash in respect of the settlement of this Transaction, except in circumstances where the required cash settlement thereof is permitted for classification of the contract as equity by ASC 815-40 (formerly EITF 00-19) as in effect on the Trade Date (including, without limitation, where the Company so elects to deliver cash or fails timely to elect to deliver Shares in respect of such settlement). Wall Street Transparency and Accountability Act. In connection with Section 739 of the Wall Street Transparency and Accountability Act of 2010 (the “WSTAA”), the parties hereby agree that neither the enactment of the WSTAA or any regulation under the WSTAA, nor any requirement under the WSTAA or an amendment


 
28 [[5556494]] made by the WSTAA, shall limit or otherwise impair either party’s otherwise applicable rights to terminate, renegotiate, modify, amend or supplement this Confirmation or the Agreement, as applicable, arising from a termination event, force majeure, illegality, increased costs, regulatory change or similar event under this Confirmation, the Definitions incorporated herein, or the Agreement (including, but not limited to, rights arising from any Acceleration Event or Illegality (as defined in the Agreement)). Miscellaneous. (a) Notices. Addresses for Notices. For the purpose of Section 12(a) of the Agreement: Address for notices or communications to Forward Purchaser: [INSERT DEALER NAME AND NOTICE INFORMATION] Address for notices or communications to the Company: Sabra Health Care REIT, Inc. 18500 Von Karman Avenue, Suite 550 Irvine, California 92612 Attn: Harold W. Andrews, Jr. and Michael Costa Telephone: (949) 679-0243 and (949) 679-0328 Facsimile: (949) 679-8868 (b) Waiver of Trial by Jury. EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE AGREEMENT, THIS CONFIRMATION, ANY TRANSACTION HEREUNDER AND/OR ALL MATTERS ARISING IN CONNECTION WITH THE AGREEMENT, THIS CONFIRMATION AND/OR ANY TRANSACTION HEREUNDER. EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH A SUIT, ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE TRANSACTIONS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS PROVIDED HEREIN. (c) Offices. The Office of Forward Purchaser for the Transaction is: [New York] [OTHER] The Office of the Company for the Transaction is: Irvine, CA (d) Acknowledgements. The parties hereto intend for:


 
29 [[5556494]] (1) the Transaction to be a “securities contract” as defined in Section 741(7) of Title 11 of the United States Code (the “Bankruptcy Code”), qualifying for the protections under Section 555 of the Bankruptcy Code; (2) a party’s right to liquidate the Transaction and to exercise any other remedies upon the occurrence of any Event of Default under the Agreement with respect to the other party to constitute a “contractual right” as defined in the Bankruptcy Code; (3) Forward Purchaser to be a “financial institution” within the meaning of Section 101(22) of the Bankruptcy Code or a “financial participant” within the meaning of Section 101(22A) of the Bankruptcy Code; and (4) all payments for, under or in connection with the Transaction, all payments for the Shares and the transfer of such Shares to constitute “settlement payments” as defined in the Bankruptcy Code. (e) Severability. If any term, provision, covenant or condition of this Confirmation, or the application thereof to any party or circumstance, shall be held to be invalid or unenforceable in whole or in part for any reason, the remaining terms, provisions, covenants, and conditions hereof shall continue in full force and effect as if this Confirmation had been executed with the invalid or unenforceable provision eliminated, so long as this Confirmation as so modified continues to express, without material change, the original intentions of the parties as to the subject matter of this Confirmation and the deletion of such portion of this Confirmation will not substantially impair the respective benefits or expectations of both parties to the Transaction; provided, however, that this severability provision shall not be applicable if any provision of Section 2, 5, 6 or 13 of the Agreement (or any definition or provision in Section 14 of the Agreement) to the extent that it relates to, or is used in or in connection with any such Section) shall be so held to be invalid or unenforceable. (f) Governing Law/Jurisdiction. This Confirmation and any claim, controversy or dispute arising under or related to this Confirmation shall be governed by the laws of the State of New York without reference to the conflict of laws provisions thereof. The parties hereto irrevocably submit to the exclusive jurisdiction of the courts of the State of New York and the United States Court for the Southern District of New York in connection with all matters relating hereto and waive any objection to the laying of venue in, and any claim of inconvenient forum with respect to, these courts. (g) Disclosure. Effective from the date of commencement of discussions concerning the Transaction, each of Forward Purchaser and the Company and each of their employees, representatives, or other agents may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses) relating to such tax treatment and tax structure.


 
30 [[5556494]] (h) Commodity Exchange Act. Each of Forward Purchaser and the Company agrees and represents that it is an “eligible contract participant” as defined in Section 1a(18) of the U.S. Commodity Exchange Act, as amended (the “CEA”), the Agreement and the Transaction are subject to individual negotiation by the parties and have not been executed or traded on a “trading facility” as defined in Section 1a(51) of the CEA. (i) Tax Matters. For the purposes of Section 3(e) of the Agreement, Forward Purchaser and the Company each makes the following representation: It is not required by any applicable law, as modified by the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to make any deduction or withholding for or on account of any Tax from any payment (other than interest under Section 9(h) of the Agreement or imputed interest for United States federal income tax purposes) to be made by it to the other party under the Agreement. In making this representation, it may rely on: (i) the accuracy of any representations made by the other party pursuant to Section 3(f) of the Agreement; (ii) the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of the Agreement and the accuracy and effectiveness of any document provided by the other party pursuant to Section 4(a)(i) or 4(a)(iii) of the Agreement; and (iii) the satisfaction of the agreement of the other party contained in Section 4(d) of the Agreement, except that it will not be a breach of this representation where reliance is placed on clause (ii) above and the other party does not deliver a form or document under Section 4(a)(iii) of the Agreement by reason of material prejudice to its legal or commercial position. For the purpose of Section 3(f) of the Agreement: Forward Purchaser makes the following representations: (a) [It is a U.S. corporation duly organized and incorporated under the laws of [INSERT DEALER’S JURISDICTION OF ORGANIZATION], an exempt recipient under Section 1.6049-4(c)(1)(ii) of the United States Treasury Regulations and a “U.S. person” (as that term is used in sections 1.1441-1(c)(2)(i) and 1.1441-4(a)(3)(ii) of United States Treasury Regulations) for U.S. federal income tax purposes.]13 (b) [All payments received or to be received by it under the Transaction will be effectively connected with its conduct of a trade or business carried on in the United States. 13 Insert if U.S. dealer.


 
31 [[5556494]] (c) It is a “foreign person” (as that term is used in Section 1.6041-4(a)(4) of United States Treasury Regulations) for United States federal income tax purposes.]14 The Company makes the following representations: (a) It is a “U.S. person” (as that term is used in sections 1.1441-1(c)(2)(i) and 1.1441-4(a)(3)(ii) of United States Treasury Regulations) for U.S. federal income tax purposes. (b) It is a real estate investment trust for U.S. federal income tax purposes and is organized under the laws of the State of Maryland, and is an exempt recipient under Treasury Regulation Section 1.6049- 4(c)(1)(ii)(J). (j) Withholding Tax imposed on payments to non-US counterparties under the United States Foreign Account Tax Compliance Act. “Tax”, as used in the payer tax representation set forth at the beginning of Section 21(i) of this Confirmation, and “Indemnifiable Tax”, as defined in Section 14 of the Agreement, shall not include any U.S. federal withholding tax imposed or collected pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Code, or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code (a “FATCA Withholding Tax”). For the avoidance of doubt, a FATCA Withholding Tax is a Tax the deduction or withholding of which is required by applicable law for the purposes of Section 2(d) of the Agreement. (k) HIRE Act. To the extent that either party to the Agreement with respect to this Transaction is not an adhering party to the ISDA 2015 Section 871(m) Protocol published by the ISDA on November 2, 2015 and available at www.isda.org (the “871(m) Protocol”), the parties agree that the definitions and provisions contained in the Attachment to the 871(m) Protocol are incorporated into and apply to the Agreement with respect to this Transaction as if set forth in full herein, with any such conforming changes as are necessary to deal with what would otherwise be inappropriate or incorrect cross references. The parties further agree that, solely for purposes of applying such definitions and provisions to the Agreement with respect to this Transaction, references to “each Covered Master Agreement” in the 871(m) Protocol will be deemed to be references to the Agreement with respect to this Transaction, and references to the “Implementation Date” in the 871(m) Protocol will be deemed to be references to the Trade Date of this Transaction. For greater certainty, if there is any inconsistency between this provision and the provisions contained in any other agreement between the 14 Insert if non-U.S. dealer (transacting through U.S. office).


 
32 [[5556494]] parties with respect to this Transaction, this provision shall prevail unless such other agreement expressly overrides the provisions of the Attachment to the 871(m) Protocol. (l) Tax documentation. For the purposes of Sections 4(a)(i) and 4(a)(ii) of the Agreement, Forward Purchaser shall provide to the Company a valid and duly executed U.S. Internal Revenue Service [Form W-9]15[Form W-8ECI]16, or any successor[s] thereto, and the Company shall provide to Forward Purchaser, a valid and duly executed U.S. Internal Revenue Service Form W-9, or any successor thereto, in each case, (i) on or before the date of execution of this Confirmation; (ii) promptly upon reasonable demand by the other party; and (iii) promptly upon learning that any such tax form previously provided by Forward Purchaser or the Company, respectively, has become invalid, obsolete, or incorrect. Additionally, each of Forward Purchaser and the Company shall, promptly upon request by the other party, provide such other tax forms and documents requested by the other party. (m) [U.S. Resolution Stay Protocol.17 The parties agree that the terms of Section 1 and Section 2 and the related defined terms (together, the “Bilateral Terms”) of the form of bilateral template entitled “Full-Length Omnibus (for use between U.S. G-SIBs and Corporate Groups) published by ISDA on November 2, 2018 (currently available on the 2018 ISDA U.S. Resolution Stay Protocol (the “Protocol”) page at www.isda.org, a copy of which is available upon request), the effect of which is to amend the qualified financial contracts between the parties thereto to conform with the requirements of the QFC Stay Rules, are hereby incorporated into and form a part of the Agreement, and for such purposes, the Agreement shall be deemed a “Covered Agreement,” Forward Purchaser shall be deemed a “Covered Entity” and the Company shall be deemed a “Company Entity”. In the event that, after the date of the Agreement, both parties hereto become adhering parties to the Protocol, the terms of the Protocol will replace the terms of this paragraph. In the event of any inconsistencies between the Agreement and the terms of the Protocol, the Bilateral Agreement or the Bilateral Terms (each, the “QFC Stay Terms”), as applicable, the QFC Stay Terms will govern. Terms used in this paragraph without definition shall have the meanings assigned to them under the QFC Stay Rules. For purposes of this paragraph, references to “the Agreement” include any related credit enhancements entered into between the parties or provided by one to the other. In addition, the parties agree that the terms of this paragraph shall be incorporated into any related covered affiliate credit enhancements, with all references to Forward Purchaser replaced by references to the covered affiliate support provider. “QFC Stay Rules” means the regulations codified at 12 C.F.R. 252.2, 252.81—8, 12 C.F.R. 382.1-7 and 12 C.F.R. 47.1-8, which, subject to limited exceptions, require an 15 Insert if U.S. dealer. 16 Insert if non-U.S. dealer (transacting through U.S. office). 17 Include as applicable.


 
33 [[5556494]] express recognition of the stay-and-transfer powers of the FDIC under the Federal Deposit Insurance Act and the Orderly Liquidation Authority under Title II of the Dodd Frank Wall Street Reform and Consumer Protection Act and the override of default rights related directly or indirectly to the entry of an affiliate into certain insolvency proceedings and any restrictions on the transfer of any covered affiliate credit enhancements.] (n) [Certain Regulatory Matters.18 (1) 2013 EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol. The parties agree that the terms of the 2013 EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol published by ISDA on July 19, 2013 (“Protocol”) apply to the Agreement as if the parties had adhered to the Protocol without amendment. In respect of the Attachment to the Protocol, (i) the definition of “Adherence Letter” shall be deemed to be deleted and references to “Adherence Letter” shall be deemed to be to this section (and references to “such party’s Adherence Letter” and “its Adherence Letter” shall be read accordingly), (ii) references to “adheres to the Protocol” shall be deemed to be “enters into the Agreement”, (iii) references to “Protocol Covered Agreement” shall be deemed to be references to the Agreement (and each “Protocol Covered Agreement” shall be read accordingly), and (iv) references to “Implementation Date” shall be deemed to be references to the date of this Confirmation. For the purposes of this section: (a) Forward Purchaser is a Portfolio Data Sending Entity and the Company is a Portfolio Data Receiving Entity. (b) Forward Purchaser and the Company may use a Third Party Service Provider, and each of Forward Purchaser and the Company consents to such use including the communication of the relevant data in relation to Forward Purchaser and the Company to such Third Party Service Provider for the purposes of the reconciliation services provided by such entity. (c) The Local Business Days for such purposes in relation to Forward Purchaser and the Company is [●]. (d) The following are the applicable email addresses. Portfolio Data: Forward Purchaser: [●] 18 Include as applicable.


 
34 [[5556494]] The Company: [●] Notice of discrepancy: Forward Purchaser: [●] The Company: [●] Dispute Notice: Forward Purchaser: [●] The Company: [●] (2) NFC Representation Protocol. The parties agree that the provisions set out in the Attachment to the ISDA 2013 EMIR NFC Representation Protocol published by ISDA on March 8, 2013 (the “NFC Representation Protocol”) shall apply to the Agreement as if each party were an Adhering Party under the terms of the NFC Representation Protocol. In respect of the Attachment to the NFC Representation Protocol, (i) the definition of “Adherence Letter” shall be deemed to be deleted and references to “Adherence Letter” shall be deemed to be to this section (and references to “the relevant Adherence Letter” and “its Adherence Letter” shall be read accordingly), (ii) references to “adheres to the Protocol” shall be deemed to be “enters into the Agreement”, (iii) references to “Covered Master Agreement” shall be deemed to be references to the Agreement (and each “Covered Master Agreement” shall be read accordingly), and (iv) references to “Implementation Date” shall be deemed to be references to the date of this Confirmation. The Company confirms that it enters into this Confirmation as a party making the NFC Representation (as such term is defined in the NFC Representation Protocol). The Company shall promptly notify Forward Purchaser of any change to its status as a party making the NFC Representation. (3) Bail-In Protocol. Notwithstanding anything contained in the Agreement, the parties agree that the provisions of the ISDA 2016 Bail-In Article 55 BRRD Protocol published by the International Swaps and Derivatives Association, Inc. on 14 July 2016 (the “Bail-In Protocol”) shall be deemed to be incorporated into and apply to the Agreement with effect from the date of this Confirmation as if references in those provisions to “Protocol Covered Agreement” as defined in the Bail-in Protocol were references to the Agreement, and on the basis that references to the “Implementation Date” in the Bail-in Protocol shall be deemed to be references to the date of this Confirmation. (4) Contractual Recognition of UK Stay Resolution. Notwithstanding anything contained in the Agreement, the parties agree


 
35 [[5556494]] that the provisions of paragraphs 1 to 4 (inclusive) of the UK (PRA Rule) Jurisdictional Module (the “UK Module”) published by the International Swaps and Derivatives Association, Inc. on 3 May 2016, as amended from time to time, shall be deemed to be incorporated into the Agreement as if references in those provisions to “Covered Agreement” were references to the Agreement, and on the basis that: (i) Forward Purchaser shall be treated as a “Regulated Entity” and as a “Regulated Entity “the Company”” with respect to “the Company”, (ii) “the Company” shall be treated as a “Module Adhering Party”, and (iii) references to the “Implementation Date” in the UK Module shall be deemed to be references to the date of this Confirmation.] (o) Counterparts. This Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Confirmation by signing and delivering one or more counterparts. (p) Pricing Supplement19. Company and Forward Purchaser acknowledge that (i) the transactions contemplated by this Confirmation and the Pricing Supplement will be entered into in reliance on the fact that this Confirmation and the Pricing Supplement form a single agreement between Company and Forward Purchaser, and Forward Purchaser would not otherwise enter into the Transaction, (x) this Confirmation, together with the Pricing Supplement, is a “qualified financial contract”, as such term is defined in Section 5-701(b)(2) of the General Obligations Law of New York (the “General Obligations Law”), (ii) the Pricing Supplement, regardless of whether the Pricing Supplement is transmitted electronically or otherwise, constitutes a “confirmation in writing sufficient to indicate that a contract has been made between the parties” hereto, as set forth in Section 5-701(b)(3)(b) of the General Obligations Law; and (z) this letter agreement constitutes a prior “written contract”, as set forth in Section 5-701(b)(1)(b) of the General Obligations Law, and each party hereto intends and agrees to be bound by this letter agreement, as supplemented by the Pricing Supplement. U.S. QFC Mandatory Contractual Requirements (a) Limitation on Exercise of Certain Default Rights Related to a Dealer Affiliate’s Entry Into Insolvency Proceedings. Notwithstanding anything to the contrary in the Master Confirmation or any other agreement, the parties hereto expressly acknowledge and agree that subject to Section 22(b), Counterparty shall not be permitted to exercise any Default Right against Dealer with respect to the Master Confirmation or any other Relevant Agreement that is related, directly or indirectly, to a Dealer Affiliate becoming subject to an Insolvency Proceeding. 19 If applicable, additional representations and covenants related to Forward Purchaser regulatory requirements such as Forward Purchaser’s use of agents, Company acknowledgement of risk disclosure, Company consent to transaction reporting, etc. to be added to particular confirmations as customary.


 
36 [[5556494]] (b) General Creditor Protections. Nothing in Section 22(a) shall restrict the exercise by Counterparty of any Default Right against Dealer with respect to the Master Confirmation or any other Relevant Agreement that arises as a result of: (1) Dealer becoming subject to an Insolvency Proceeding; or (2) Dealer not satisfying a payment or delivery obligation pursuant to (A) the Master Confirmation or any other Relevant Agreement, or (B) another contract between Dealer and Counterparty that gives rise to a Default Right under the Master Confirmation or any other Relevant Agreement. (c) Burden of Proof. After a Dealer Affiliate has become subject to an Insolvency Proceeding, if Counterparty seeks to exercise any Default Right with respect to the Master Confirmation or any other Relevant Agreement, Counterparty shall have the burden of proof, by clear and convincing evidence, that the exercise of such Default Right is permitted hereunder or thereunder. (d) General Conditions (1) Effective Date. The provisions set forth in this Section 22 will come into effect on the later of the Applicable Compliance Date and the date of this Master Confirmation. (2) Prior Adherence to the U.S. Protocol. If Dealer and Counterparty have adhered to the ISDA U.S. Protocol prior to the date of this Master Confirmation, the terms of the ISDA U.S. Protocol shall be incorporated into and form a part of the Master Confirmation and shall replace the terms of this Section 22. For purposes of incorporating the ISDA U.S. Protocol, Dealer shall be deemed to be a Regulated Entity, Counterparty shall be deemed to be an Adhering Party and the Master Confirmation and this Master Confirmation shall each be deemed to be a Protocol Covered Agreement. (3) Subsequent Adherence to the U.S. Protocol. If, after the date of this Master Confirmation, both Dealer and Counterparty shall have become adhering parties to the ISDA U.S. Protocol, the terms of the ISDA U.S. Protocol will supersede and replace this Section 22. (e) Definitions. For the purposes of Section 22, the following definitions apply: “Applicable Compliance Date” with respect to this Master Confirmation shall be determined as follows: (a) if Counterparty is an entity subject to the requirements of the QFC Stay Rules, January 1, 2019, (b) if Counterparty is a Financial Counterparty (other than a Small Financial Institution) that is not an entity subject to the requirements of the QFC Stay Rules, July 1, 2019 and (c) if Counterparty is not described in clause (a) or (b), January 1, 2020.


 
37 [[5556494]] “BHC Affiliate” has the same meaning as the term “affiliate” as defined in, and shall be interpreted in accordance with, 12 U.S.C. 1813(w) and 12 U.S.C. 1841(k). “Credit Enhancement” means, with respect to the Master Confirmation or any other Relevant Agreement, any credit enhancement or other credit support arrangement in support of the obligations of Dealer or Counterparty hereunder or thereunder or with respect hereto or thereto, including any guarantee or collateral arrangement (including any pledge, charge, mortgage or other security interest in collateral or title transfer arrangement), trust or similar arrangement, letter of credit, transfer of margin or any similar arrangement. “Dealer Affiliate” means, with respect to Dealer, a BHC Affiliate of that party. “Default Right” means, with respect to the Master Confirmation (including any Transaction under the Master Confirmation) or any other Relevant Agreement, any: (i) right of a party, whether contractual or otherwise (including, without limitation, rights incorporated by reference to any other contract, agreement, or document, and rights afforded by statute, civil code, regulation, and common law), to liquidate, terminate, cancel, rescind, or accelerate such agreement or transactions thereunder, set off or net amounts owing in respect thereto (except rights related to same-day payment netting), exercise remedies in respect of collateral or other credit support or property related thereto (including the purchase and sale of property), demand payment or delivery thereunder or in respect thereof (other than a right or operation of a contractual provision arising solely from a change in the value of collateral or margin or a change in the amount of an economic exposure), suspend, delay, or defer payment or performance thereunder, or modify the obligations of a party thereunder, or any similar rights; and (ii) right or contractual provision that alters the amount of collateral or margin that must be provided with respect to an exposure thereunder, including by altering any initial amount, threshold amount, variation margin, minimum transfer amount, the margin value of collateral, or any similar amount, that entitles a party to demand the return of any collateral or margin transferred by it to the other party or a custodian or that modifies a transferee’s right to reuse collateral or margin (if such right previously existed), or any similar rights, in each case, other than a right or operation of a contractual provision arising solely from a change in the value of collateral or margin or a change in the amount of an economic exposure; but (iii) solely with respect to Section 22(a) does not include any right under a contract that allows a party to terminate the contract on demand or at its option at a specified time, or from time to time, without the need to show cause. “Financial Counterparty” has the meaning given to such term in, and shall be interpreted in accordance with, 12 C.F.R. 252.81, 12 C.F.R. 382.1 and 12 C.F.R. 47.2.


 
38 [[5556494]] “Insolvency Proceeding” means a receivership, insolvency, liquidation, resolution, or similar proceeding. “ISDA U.S. Protocol” means the ISDA 2018 U.S. Resolution Stay Protocol, as published by ISDA on July 31, 2018. “QFC Stay Rules” means the regulations codified at 12 C.F.R. 252.81–8 (the “Federal Reserve Rule”), 12 C.F.R. 382.1-7 (the “FDIC Rule”) and 12 C.F.R. 47.1-8 (the “OCC Rule”), respectively. All references herein to the specific provisions of the Federal Reserve Rule, the FDICs Rule and the OCC Rule shall be construed, with respect to Dealer, to the particular QFC Stay Rule(s) applicable to it. “Relevant Agreement” means the Master Confirmation (as amended hereto and including all Transactions under the Master Confirmation) and any Credit Enhancement relating hereto or thereto . “Small Financial Institution” has the meaning given to such term in, and shall be interpreted in accordance with, 12 C.F.R. 252.81, 12 C.F.R. 382.1 and 12 C.F.R. 47.2. [Remainder of page intentionally left blank]


 
[[5556494]] Please confirm that the foregoing correctly sets forth the terms of our agreement by signing and returning this Confirmation. Yours Faithfully, [DEALER NAME] by Name: Title: Confirmed as of the date first written above: SABRA HEALTH CARE REIT, INC. by Name: Title:


 
[[5556494]] SCHEDULE I FORWARD PRICE REDUCTION DATES AND AMOUNTS Forward Price Reduction Date(1) Forward Price Reduction Amount(2) Trade Date USD $0.00 [●] USD [●] [●] USD [●] [●] USD [●] [●] USD [●] [●] USD [●] (1) Insert Forward Price Reduction Dates from Forward Instruction Notice. (Such Forward Price Reduction Dates to be the expected “ex-dividend” dates for each quarterly dividend of the Company.) (2) Insert Forward Price Reduction Amounts from Forward Instruction Notice. (Such Forward Price Reduction Amounts to be the expected amount of the regular quarterly cash dividend for the corresponding ex-dividend date.)


 
[[5556494]] ANNEX A PRIVATE PLACEMENT PROCEDURES (i) If the Company delivers the Restricted Shares pursuant to this clause (i) (a “Private Placement Settlement”), then delivery of Restricted Shares by the Company shall be effected in customary private placement procedures with respect to such Restricted Shares reasonably acceptable to Forward Purchaser; provided that if, on or before the date that a Private Placement Settlement would occur, the Company has taken, or caused to be taken, any action that would make unavailable either the exemption pursuant to Section 4(a)(2) of the Securities Act for the sale by the Company to Forward Purchaser (or any affiliate designated by Forward Purchaser) of the Restricted Shares or the exemption pursuant to Section 4(a)(1) or Section 4(a)(3) of the Securities Act for resales of the Restricted Shares by Forward Purchaser (or any such affiliate of Forward Purchaser) or the Company fails to deliver the Restricted Shares when due or otherwise fails to perform obligations within its control necessary to effect a Private Placement Settlement, it shall be an Event of Default with respect to the Company and Section 6 of the Agreement shall apply. The Private Placement Settlement of such Restricted Shares shall include customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Forward Purchaser, due diligence rights (for Forward Purchaser or any designated buyer of the Restricted Shares by Forward Purchaser), opinions and certificates, and such other documentation as is customary for private placement agreements, all reasonably acceptable to Forward Purchaser. In the case of a Private Placement Settlement, Forward Purchaser shall, in its good faith discretion, adjust the number of Restricted Shares to be delivered to Forward Purchaser hereunder and/or the Forward Price in a commercially reasonable manner to reflect the fact that such Restricted Shares may not be freely returned to securities lenders by Forward Purchaser and may only be saleable by Forward Purchaser at a discount to reflect the lack of liquidity in Restricted Shares. Notwithstanding the Agreement or this Confirmation, the date of delivery of such Restricted Shares shall be the Clearance System Business Day following notice by Forward Purchaser to the Company of the number of Restricted Shares to be delivered pursuant to this clause (i). For the avoidance of doubt, delivery of Restricted Shares shall be due as set forth in the previous sentence and not be due on the Settlement Date or Termination Settlement Date that would otherwise be applicable. (ii) If the Company delivers any Restricted Shares in respect of the Transaction, the Company agrees that (i) such Shares may be transferred by and among Forward Purchaser and its affiliates and (ii) after the minimum “holding period” within the meaning of Rule 144(d) under the Securities Act has elapsed after the applicable Settlement Date, the Company shall promptly remove, or cause the transfer agent for the Shares to remove, any legends referring to any transfer restrictions from such Shares upon delivery by Forward Purchaser (or such affiliate of Forward Purchaser) to the Company or such transfer agent of seller’s and broker’s representation letters customarily delivered by Forward Purchaser or its affiliates in connection with resales of restricted securities pursuant to Rule 144 under the Securities Act, each without any further requirement for the delivery of any certificate, consent, agreement, opinion of counsel, notice or any other document, any transfer tax stamps or payment of any other amount or any other action by Forward Purchaser (or such affiliate of Forward Purchaser).


 
[[5556494]] ANNEX B PRICING SUPPLEMENT [DEALER NAME AND ADDRESS] Sabra Health Care REIT, Inc. 18500 Von Karman Avenue, Suite 550 Irvine, California 92612 Attn: Harold W. Andrews, Jr. and Michael Costa Telephone: (949) 679-0243 and (949) 679-0328 Facsimile: (949) 679-8868 Ladies and Gentlemen: This Pricing Supplement is the Pricing Supplement forming part of the Confirmation dated [●], 20[●] in respect of the Registered Forward Transaction dated as of [●], 20[●] (the “Confirmation”) between Sabra Health Care REIT, Inc., (the “Company”) and [DEALER NAME] (“Forward Purchaser”). For all purposes under the Confirmation, (a) the Hedge Completion Date is [●]; (b) the Initial Base Amount shall be [●]; and (c) the Initial Forward Price shall be USD [●]. Very truly yours, [DEALER NAME] by Name: Title:


 
Exhibit 3(g) [[5258451]] Form of Terms Agreement SABRA HEALTH CARE REIT, INC. Common Stock TERMS AGREEMENT , 20[●] [ ]1 Ladies and Gentlemen: Sabra Health Care REIT, Inc. (the “Company”) proposes, subject to the terms and conditions set forth herein and in the Equity Distribution Agreement, dated December 11, 2019 (the “Equity Distribution Agreement”), among the Company and Barclays Capital Inc., BMO Capital Markets Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., The Huntington Investment Company, Jefferies LLC, KeyBanc Capital Markets Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Raymond James & Associates, Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Stifel, Nicolaus & Company, Incorporated, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC, each as agent, forward seller, and/or as principal under any Terms Agreement and Barclays Bank PLC, Bank of Montreal, Bank of America, N.A., Citibank, N.A., Crédit Agricole Corporate and Investment Bank c/o Credit Agricole Securities (USA) Inc., as agent, Jefferies LLC, KeyBanc Capital Markets Inc., Morgan Stanley & Co. LLC, MUFG Securities EMEA plc, Raymond James & Associates, Inc., Royal Bank of Canada, The Bank of Nova Scotia and Wells Fargo Bank, National Association, each as a forward purchaser, to issue and sell to the undersigned, as principal (the “Agent”) for resale the shares of the Company’s Common Stock specified in the Schedule attached hereto (the “Purchased Shares”). [The Company also proposes to issue and sell to the Agent the additional shares of Common Stock, specified in the Schedule attached hereto (“Additional Shares”), if and to the extent that the Agent shall have determined to exercise its right to purchase such Additional Shares.] Subject to the terms and conditions set forth herein and in the Equity Distribution Agreement, which are incorporated herein by reference, the Company agrees to issue and sell to the Agent and the latter agrees to purchase from the Company the Purchased Shares at the Time of Delivery and Closing Location (each as set forth in the Schedule attached hereto) and at the purchase price (“Purchase Price”) set forth in the Schedule attached hereto. [In addition, the Company agrees to sell to the Agent the Additional Shares, and the Agent shall have the right to purchase up to [●] Additional Shares at the Purchase Price, provided, however, that the amount paid by the Agent for any Additional Shares shall be reduced by an amount per Share equal to any dividends declared by the Company and payable on the 1 To be name and address of the applicable Agent.


 
[[5258451]] Purchased Shares but not payable on such Additional Shares. The Agent may exercise this right, in whole or from time to time in part by giving written notice to the Company not later than 30 days after the date of this Terms Agreement. Any exercise notice shall specify the number of Additional Shares to be purchased by the Agent and the date on which such Additional Shares are to be purchased (such date and time being herein referred to as the “Option Settlement Date”). Each Option Settlement Date must be at least one business day after the written notice is given and may not be earlier than the Time of Delivery for the Purchased Shares set forth in the Schedule attached hereto, nor later than ten business days after the date of such notice. Payment of the Purchase Price for the Additional Shares shall be made at the Option Settlement Date in the same manner and at the same location as the payment for the Purchased Shares.] The Purchased Shares [and the Additional Shares] shall be registered in such names and in such denominations as the Agent shall request in writing not later than one full business day prior to the Time of Delivery [or the applicable Option Settlement Date, as the case may be.] The Purchased Shares [and the Additional Shares] shall be delivered to the Agent at the Time of Delivery [or an Option Settlement Date, as the case may be,] with any transfer taxes payable in connection with the transfer of the Shares to the Agent duly paid, against payment of the Purchase Price therefor. All capitalized terms used herein and not otherwise defined shall have the respective meanings assigned to them in the Equity Distribution Agreement. Each of the provisions of the Equity Distribution Agreement not specifically related to the solicitation by the Agent, as agent of the Company, of offers to purchase Shares is incorporated herein by reference in its entirety, and shall be deemed to be part of this Terms Agreement to the same extent as if such provisions had been set forth in full herein. Each of the representations and warranties set forth therein shall be deemed to have been made at and as of the date of this Terms Agreement and the Time of Delivery [and any Option Settlement Date], except that each representation and warranty in Section 6 of the Equity Distribution Agreement which makes reference to the Prospectus (as therein defined) shall be deemed to be a representation and warranty as of the date of the Equity Distribution Agreement in relation to the Prospectus, and also a representation and warranty as of the date of this Terms Agreement[,] [and] the Time of Delivery [and any Option Settlement Date] in relation to the Prospectus as amended and supplemented to relate to the Purchased Shares [and the Additional Shares]. An amendment to the Registration Statement (as defined in the Equity Distribution Agreement), or a supplement to the Prospectus, as the case may be, relating to the Purchased Shares [and the Additional Shares], in the form heretofore delivered to the Agent is now proposed to be filed with the Securities and Exchange Commission, and will be filed promptly. This Terms Agreement and any claim, controversy or dispute arising under or related to this Terms Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to its choice of law provisions.


 
[[5258451]] If the foregoing is in accordance with your understanding, please sign and return to us a counterpart hereof, whereupon this Terms Agreement, including those provisions of the Equity Distribution Agreement incorporated herein by reference, shall constitute a binding agreement between the Agent and the Company. SABRA HEALTH CARE REIT, INC., by Name: Title: ACCEPTED as of the date first above written: [ ]2, by Name: Title: 2 To be name of the applicable Agent.


 
[[5258451]] Schedule to Exhibit 3(g) Title of Purchased Shares [and Additional Shares]: Common Stock, par value $0.01 per share Number of Purchased Shares: [] [Number of Additional Shares: []] Price to Public: [] Purchase Price (by the Agent): [] Method of and Specified Funds for Payment of Purchase Price: By wire transfer to a bank account specified by the Company in same day funds. Method of Delivery: Free delivery of the Shares to the Agent’s account at the Depository Trust Company in return for payment of the purchase price. Time of Delivery: [] Closing Location: [] Documents to be Delivered at the Time of Delivery: The following documents referred to in the Equity Distribution Agreement shall be delivered at the Time of Delivery: (1) The opinions referred to in Section 9(e). (2) The opinion referred to in Section 9(f). (3) The accountants’ letters referred to in Section 9(g). (4) The officers’ certificate referred to in Section 9(h). (5) Such other documents as the Agent shall reasonably request. [Documents to be Delivered at the Option Settlement Date: The obligations of the Agent to purchase Additional Shares hereunder are subject to the delivery to you on the applicable Option Settlement Date of such documents as you may reasonably request with respect to the good standing of the Company, the due authorization and issuance of the Additional Shares to be sold on such Option Settlement Date and other matters related to the issuance of such Additional Shares.]


 
Exhibit 7(n) [[5258451]] OFFICERS’ CERTIFICATE Pursuant to Section 7(n) of the Equity Distribution Agreement among Sabra Health Care REIT, Inc., a Maryland corporation (“Company”), and Barclays Capital Inc., BMO Capital Markets Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., The Huntington Investment Company, Jefferies LLC, KeyBanc Capital Markets Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., Raymond James & Associates, Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Stifel, Nicolaus & Company, Incorporated, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC, each as agent, forward seller, and/or as principal under any Terms Agreement and Barclays Bank PLC, Bank of Montreal, Bank of America, N.A., Citibank, N.A., Crédit Agricole Corporate and Investment Bank c/o Credit Agricole Securities (USA) Inc., as agent, Jefferies LLC, KeyBanc Capital Markets Inc., Morgan Stanley & Co. LLC, MUFG Securities EMEA plc, Raymond James & Associates, Inc., Royal Bank of Canada, The Bank of Nova Scotia and Wells Fargo Bank, National Association, each as a forward purchaser, dated December 11, 2019 (the “Equity Distribution Agreement”), each of the undersigned, Richard K. Matros, the duly qualified and elected Chairman, President and Chief Executive Officer of the Company, and Harold W. Andrews, Jr., the duly qualified and elected Executive Vice President, Chief Financial Officer and Secretary of the Company, hereby certifies solely in such capacity and on behalf of the Company, that to the best of his knowledge: (i) the representations and warranties of the Company in Section 6 of the Equity Distribution Agreement (A) to the extent such representations and warranties are subject to qualifications and exceptions contained therein relating to materiality or a Material Adverse Change, are true and correct on and as of the date hereof with the same force and effect as if expressly made on and as of the date hereof, except for those representations and warranties that speak solely as of a specific date and which were true and correct as of such date, and (B) to the extent such representations and warranties are not subject to any qualifications or exceptions, are true and correct in all material respects as of the date hereof as if made on and as of the date hereof with the same force and effect as if expressly made on and as of the date hereof except for those representations and warranties that speak solely as of a specific date and which were true and correct as of such date; and (ii) the Company has complied with all agreements and satisfied all conditions on its part to be performed or satisfied pursuant to the Equity Distribution Agreement at or prior to the date hereof. Capitalized terms used and not defined herein shall have the meanings ascribed to them in the Equity Distribution Agreement.


 
[[5258451]] by Name: Richard K. Matros Title: President and Chief Executive Officer by Name: Harold W. Andrews, Jr. Title: Executive Vice President, Chief Financial Officer and Secretary Date:


 
Exhibit 7(o)(1) [[5258451]] Form of Legal Opinion of O’Melveny & Myers LLP On the basis of such examination, our reliance upon the assumptions in this opinion and our consideration of those questions of law we considered relevant, and subject to the limitations and qualifications in this opinion, we are of the opinion that: 1. The Company is qualified as a foreign corporation to do business in the State of California and is in good standing in such State. 2. Sabra Health Care Limited Partnership (“Sabra UPREIT”) has been duly formed and is validly existing in good standing under the laws of the State of Delaware with power under the Revised Uniform Limited Partnership Act of the State of Delaware (the “RULPA”) and its certificate of limited partnership and partnership agreement (the “Partnership Agreement” and, together with the certificate of limited partnership, the “Partnership Organizational Documents”), to own its properties and assets and to carry on its business as described in the Prospectus; and Sabra UPREIT is authorized as a foreign limited partnership to do business in the State of California and is in good standing in such State. 3. Sabra Health Care Holdings III, LLC (“Sabra III”) (together with Sabra UPREIT, the “Sabra Subsidiaries”), is a limited liability company existing under the laws of the State of Delaware with power under the Limited Liability Company Act of the State of Delaware (the “LLCA”), together with its certificate of formation and limited liability company agreement (which we refer to collectively with the Partnership Organizational Documents as the “Organizational Documents”), to own its properties and to carry on its business as described in the Prospectus. 4. The Registration Statement, at the time it became effective, appeared on its face to comply in all material respects with the requirements as to form for registration statements on Form S-3 under the Act and the related rules and regulations in effect at such date, except that we express no opinion concerning the financial statements and other financial information contained therein or incorporated by reference. The Prospectus, as of its date, appeared on its face to comply in all material respects with the requirements as to form under the Act and the related rules and regulations in effect at such date, except that we express no opinion concerning the financial statements and other financial information contained or incorporated by reference therein. The Prospectus Supplement has been filed in accordance with Rule 424(b) under the Act. 5. The Registration Statement became effective under the Act upon filing with the Commission and, based solely on a review of a list of stop orders on the Commission’s website at https://www.sec.gov/litigation/stoporders.shtml , no stop order suspending the effectiveness of the Registration Statement has been issued or, to our knowledge, threatened by the Commission; and the Prospectus has been filed pursuant to Rule 424 under the Act within the time period required by Rule 424.


 
[[5258451]] 6. Assuming that the Equity Distribution Agreement and any Confirmations have been duly authorized and executed, the Equity Distribution Agreement and any Confirmations have been duly delivered. 7. The execution and delivery by the Company of the Equity Distribution Agreement and any Confirmations do not, and the Company’s performance of its obligations under the Equity Distribution Agreement and any Confirmations will not, (i) violate, breach, or result in a default under, any existing obligation of or restriction on the Company under any other agreement (the “Other Agreements”) listed in an exhibit to the Company’s most recent Annual Report on Form 10-K, or Quarterly Report on Form 10-Q or Current Reports on Form 8- K filed subsequent to the date of the Company’s most recent Annual Report on Form 10-K, or (ii) breach or otherwise violate any existing obligation of or restriction on the Company under any order, judgment or decree of any California, New York or federal court or governmental authority binding on the Company identified in the Company Certificate. We express no opinion with respect to any provision of any Other Agreements to the extent that an opinion with respect to such provision would require making any financial, accounting or mathematical calculation or determination. 8. The execution and delivery by the Company of the Equity Distribution Agreement and any Confirmations do not, and the Company’s performance of its obligations under the Equity Distribution Agreement and any Confirmations will not, violate any current California, New York or federal statute, rule or regulation that we have, in the exercise of customary professional diligence, recognized as applicable to the Company or to transactions of the type contemplated by the Equity Distribution Agreement and any Confirmations, except that we express no opinion regarding (i) any federal securities laws or Blue Sky or state securities laws, or the rules or regulations of the Financial Industry Regulatory Authority, Inc., or (ii) the indemnification and contribution provisions of the Equity Distribution Agreement and any Confirmations, in each case except as expressly stated herein. 9. No order, consent, permit or approval of any California, New York or federal governmental authority that we have, in the exercise of customary professional diligence, recognized as applicable to the Company or to transactions of the type contemplated by the Equity Distribution Agreement and any Confirmations is required on the part of the Company for the execution and delivery of, and performance of its obligations under, the Equity Distribution Agreement and any Confirmations, except for such as have been obtained under the Act or the rules and regulations thereunder and such as may be required under Blue Sky or state securities laws and the rules or regulations of the Financial Industry Regulatory Authority, Inc. 10. The Company is not, and after giving effect to the offering and sale of the Shares and application of the net proceeds from such transaction as described under the caption “Use of Proceeds” in the Prospectus, will not be, an investment company required to register under the Investment Company Act of 1940, as amended. 11. Based solely on the Company Certificate and except as described in the Prospectus, there is no pending action, suit, proceeding or investigation before any court or governmental agency or authority or any arbitrator (i) against the Company of a character


 
[[5258451]] required to be disclosed in the Prospectus, or (ii) that seeks to affect the enforceability of the Equity Distribution Agreement and any Confirmations.


 
Exhibit 7(o)(2) [[5258451]] Form of Legal Opinion of Venable LLP Based upon the foregoing, and subject to the assumptions, limitations and qualifications stated herein, it is our opinion that: 1. The Company is a corporation duly incorporated and validly existing under the laws of the State of Maryland, is in good standing with the SDAT and has the corporate power to own, lease and operate its properties and conduct its business as described in the Prospectus under the caption “Summary – Our Company” and to execute, deliver and perform its obligations under the Equity Distribution Agreement and any Confirmations. 2. The Company has an authorized capitalization as set forth in the Prospectus under the caption “Description of Capital Stock,” 3. The information in the Prospectus under the caption “Description of Capital Stock,” insofar as such information purports to summarize the Charter or the Bylaws or the MGCL, is accurate in all material respects. The terms of the Common Stock, including the Shares, conform as to legal matters in all material respects to the description thereof contained in the Registration Statement and the Prospectus under the caption “Description of Capital Stock”. 4. The execution and delivery of the Equity Distribution Agreement and any Confirmations have been duly authorized, and the Equity Distribution Agreement have been duly executed and, so far as is known to us, delivered by the Company. 5. The Shares have been duly authorized for issuance and sale pursuant to the Resolutions (and any other resolutions adopted by the Securities Committee of the Board, as contemplated in the Resolutions) and the Equity Distribution Agreement and any Confirmations and, upon completion of all Corporate Proceedings relating to the Shares, when issued and delivered in accordance with the terms of the Resolutions (and any other resolutions adopted by the Securities Committee of the Board, as contemplated in the Resolutions) and the Equity Distribution Agreement and any Confirmations against payment of the consideration set forth therein, will be validly issued, fully paid and nonassessable. 6. The execution and delivery of the Equity Distribution Agreement and any Confirmations by the Company, and the performance by the Company of its obligations thereunder (other than performance by the Company of its obligations under the indemnification section of the Equity Distribution Agreement, as to which no opinion is rendered), including the issuance of the Shares, do not conflict with (a) the Charter or the Bylaws or (b) any Maryland statute, rule or regulation applicable to the Company. 7. No consent, approval, authorization or order of, or registration or filing with, any Maryland governmental authority or agency having jurisdiction over the Company is required for the performance by the Company of its obligations under the Equity Distribution Agreement and any Confirmations, except such as have been obtained or made by the Company, if any (other than any consent, approval, authorization, order, registration or filing required in connection with the securities laws of the State of Maryland, as to which no opinion is expressed hereby).


 
Exhibit 7(o)(3) [[5258451]] Form of Legal Opinion of Fried, Frank, Harris, Shriver & Jacobson LLP Based upon, subject to, and limited by the assumptions and qualifications set forth herein and in the Registration Statement, we are of the opinion that: 1. Commencing with the Company’s taxable year beginning January 1, 2011, the Company has been organized and has operated in conformity with the requirements for qualification and taxation as a “real estate investment trust” (a “REIT”) under Sections 856 through 860 of the Code and the current and proposed method of operation for the Company and its subsidiaries as described in the Prospectus will enable the Company to continue to meet the requirements for qualification and taxation as a REIT under the Code; and 2. The statements set forth in the Prospectus under the caption “Material U.S. Federal Income Tax Considerations,” insofar as such statements purport to summarize matters of U.S. federal income tax laws or legal conclusions with respect thereto, and subject to the limitations, qualifications and assumptions set forth therein, fairly and accurately summarize in all material respects the matters set forth therein.


 

Exhibit 21.1
Sabra Subsidiaries
Entity Name
Jurisdiction of Organization
1717 Senior Partners, LLC (Subsidiary of Joint Venture) Indiana
2100 Benvoulin Court Holdings, Inc. British Columbia
2829-34th Street Holdings, Inc. British Columbia
317 Winnipeg St. Holdings Inc. British Columbia
3211 Alexis Park Drive Holdings Inc. British Columbia
870 Westminster Ave. Holdings, Inc. British Columbia
Arden Real Estate Holdings, LLC Delaware
Beaumont Senior Partners, LLC (Subsidiary of Joint Venture) Indiana
Beavercreek Senior Partners, LLC Indiana
Bloomsburg Nominee LLC Delaware
Bloomsburg Nominee LP Delaware
C.H.W. Limited Liability Company New Hampshire
CCP Arlington 1961 LLC Delaware
CCP Ashland 7250 LLC Delaware
CCP Aspen Grove 7382 LLC Delaware
CCP Augusta 0544 LLC Delaware
CCP Autumn View 7580 LLC Delaware
CCP Autumn Woods 7586 LLC Delaware
CCP Avalon 5010 LP Delaware
CCP Bay View 0738 LP Delaware
CCP Bayview 7176 LLC Delaware
CCP Bear Creek 3764 LLC Delaware
CCP Bellefontaine Gardens 7251 LLC Delaware
CCP Belleville 7343 LLC Delaware
CCP Bellingham 0158 LLC Delaware
CCP Bellingham 1501 LLC Delaware
CCP Blueberry Hill 0581 LLC Delaware
CCP Boise 0216 LLC Delaware
CCP Bolton Manor 0529 LLC Delaware
CCP Bremen 0290 LLC Delaware
CCP Brentwood 0555 LLC Delaware
CCP Brewer 0547 LLC Delaware
CCP Brighton 0873 LLC Delaware
CCP Brookhaven 7581 LLC Delaware
CCP Burlington House 2702 LP Delaware
CCP Camelot 0563 LLC Delaware
CCP Cascade Park 7360 LLC Delaware
CCP Chapel Hill 0806 LP Delaware
CCP Cherry Hills 1159 LLC Delaware
CCP Cheyenne 0441 LLC Delaware
CCP Chillicothe 0569 LP Delaware



CCP Clackamas 1513 LLC Delaware
CCP Colony House 0582 LLC Delaware
CCP Conway 7175 LLC Delaware
CCP Coos Bay 1510 LLC Delaware
CCP Coshocton 0635 LP Delaware
CCP Country Manor 0507 LLC Delaware
CCP Covina 4003 LP Delaware
CCP Crestview 1505 LLC Delaware
CCP Current River 7252 LLC Delaware
CCP Cypress Pointe 0188 LP Delaware
CCP Danville Centre 0782 LLC Delaware
CCP Den-Mar 0542 LLC Delaware
CCP Dixon 7253 LLC Delaware
CCP Dover 0591 LLC Delaware
CCP Driftwood 7140 LP Delaware
CCP Dundee 7170 LLC Delaware
CCP Dutchess 1741 LLC Delaware
CCP Eastside 0545 LLC Delaware
CCP Eliot 0526 LLC Delaware
CCP Elizabethtown 0787 LLC Delaware
CCP Eugene 1509 LLC Delaware
CCP Evergreen North Cascades 7201 LLC Delaware
CCP Fayette County 7452 LP Delaware
CCP Finance I LLC Delaware
CCP Finance II LLC Delaware
CCP Firesteel 7380 LLC Delaware
CCP Florence Villa 3781 LLC Delaware
CCP Forsyth 7254 LLC Delaware
CCP Fountain Circle 0280 LLC Delaware
CCP Fountain Springs 7381 LLC Delaware
CCP Galion 7451 LP Delaware
CCP Garden Gate 7583 LLC Delaware
CCP Garden Valley 1155 LLC Delaware
CCP Gastonia 0724 LP Delaware
CCP Glendale 4001 LLC Delaware
CCP Glenwood 7255 LLC Delaware
CCP Golden/7470 LLC Delaware
CCP Gravios 2227 LLC Delaware
CCP Guardian Roanoke 0704 LP Delaware
CCP Guardian Rocky Mount 0723 LP Delaware
CCP Guardian Zebulon 0713 LP Delaware
CCP Harbour Point 0826 LLC Delaware
CCP Harris Hill 7582 LLC Delaware
CCP Harrodsburg 0864 LLC Delaware
CCP Healthbridge 7403 LP Delaware



CCP Hillcrest 0785 LLC Delaware
CCP Hillsboro 1507 LLC Delaware
CCP Holdings GP1 LLC Delaware
CCP Hopkins 3784 LLC Delaware
CCP Junction City 1508 LLC Delaware
CCP Kachina Point 0853 LLC Delaware
CCP Kansas II LLC Delaware
CCP Keizer 1526 LLC Delaware
CCP Kennebunk 0549 LLC Delaware
CCP King City 1506 LLC Delaware
CCP Kinston 0711 LP Delaware
CCP La Mesa 1910 LLC Delaware
CCP Lakeshore 4000 LLC Delaware
CCP Las Vegas 0640 LLC Delaware
CCP Lebanon 1504 LLC Delaware
CCP Lincoln 0307 LP Delaware
CCP Madison 0132 LLC Delaware
CCP Malley 0859 LLC Delaware
CCP Marietta 0645 LLC Delaware
CCP Maryville 3785 LLC Delaware
CCP Masters 0884 LLC Delaware
CCP McKinney 1677 LLC Delaware
CCP Meadowvale 0269 LLC Delaware
CCP Medford 0453 LLC Delaware
CCP MG Manor 7387 LLC Delaware
CCP Millbrook 1678 LLC Delaware
CCP Minneapolis 7005 LLC Delaware
CCP Monroe 0707 LP Delaware
CCP Mountain View 1529 LLC Delaware
CCP Mountain View 2228 LLC Delaware
CCP Mt. Pleasant 7171 LLC Delaware
CCP Muncie 0406 LLC Delaware
CCP Mustang Holdings LLC Delaware
CCP Newport 1528 LLC Delaware
CCP Newton Wellesley 0539 LLC Delaware
CCP North Gate 7584 LLC Delaware
CCP Northern Nevada 2226 LLC Delaware
CCP Norway 0550 LLC Delaware
CCP Nutmeg Pavilion 0567 LLC Delaware
CCP Oakridge 3766 LLC Delaware
CCP Oakview 0278 LLC Delaware
CCP Oakwood 0517 LLC Delaware
CCP Olympic 1503 LLC Delaware
CCP Orange Hills 7390 LP Delaware
CCP Palisade 7383 LLC Delaware



CCP Parkway Pavilion 0568 LLC Delaware
CCP Parkwood 0407 LLC Delaware
CCP Pearl Kruse 1527 LLC Delaware
CCP Petersburg 3767 LLC Delaware
CCP Pettigrew 0116 LP Delaware
CCP Phoenix 1930 LLC Delaware
CCP Pleasant Valley 1679 LLC Delaware
CCP Prairie View 7385 LLC Delaware
CCP Primacy 0822 LLC Delaware
CCP Properties Business Trust Massachusetts
CCP Queen Anne 0462 LLC Delaware
CCP Quincy 0537 LLC Delaware
CCP Raleigh 0143 LP Delaware
CCP Rawlins 0481 LLC Delaware
CCP Regency 1676 LLC Delaware
CCP Regency Manor 2701 LP Delaware
CCP Richmond Beach 1500 LLC Delaware
CCP River Terrace 0587 LLC Delaware
CCP Riverpark 1502 LLC Delaware
CCP Riverside 0281 LLC Delaware
CCP Riverview 7384 LLC Delaware
CCP Rosewood 0277 LLC Delaware
CCP Royal Oaks 0112 LLC Delaware
CCP Sachem 0514 LLC Delaware
CCP Sage View 0483 LLC Delaware
CCP San Diego 4005 LP Delaware
CCP San Diego GP LLC Delaware
CCP Savannah Rehab 0155 LLC Delaware
CCP Savannah Specialty 0660 LLC Delaware
CCP SCC Holdings LLC Delaware
CCP Seneca 7585 LLC Delaware
CCP Senior Indiana LLC Delaware
CCP Shepherd 7386 LLC Delaware
CCP Shreveport Manor 7616 LLC Delaware
CCP Silas Creek 0191 LP Delaware
CCP Silex 7256 LLC Delaware
CCP Smoky Hill 7350 LLC Delaware
CCP South Hampton 7257 LLC Delaware
CCP South Shore Manor 3782 LLC Delaware
CCP Springfield Business Trust Massachusetts
CCP St. Francis 1742 LLC Delaware
CCP Strafford 7258 LLC Delaware
CCP Sunnybrook 0137 LP Delaware
CCP Sunnyside 0452 LLC Delaware
CCP Tacoma 1512 LLC Delaware



CCP Tacoma 1515 LLC Delaware
CCP Tacoma Pearl 1532 LLC Delaware
CCP Tempe 4002 LLC Delaware
CCP Three Fountains 1525 LLC Delaware
CCP Torrey Pines 0641 LLC Delaware
CCP Tri-State 7172 LLC Delaware
CCP Ulster 1743 LLC Delaware
CCP Ventura 4004 LP Delaware
CCP Villa Campana 0851 LLC Delaware
CCP Village 1931 LLC Delaware
CCP Warren 7453 LP Delaware
CCP Western Village 3780 LLC Delaware
CCP Westgate Manor 0554 LLC Delaware
CCP Westminster 3775 LLC Delaware
CCP Westwood Manor 7348 LLC Delaware
CCP WH Holdings LLC Delaware
CCP Wheatcrest 7388 LLC Delaware
CCP Whitesburg 0791 LLC Delaware
CCP Wind River 0482 LLC Delaware
CCP Windsor 7259 LLC Delaware
CCP Winship Green 0546 LLC Delaware
CCP Worthington 1160 LLC Delaware
CCP Wyomissing 1237 LLC Delaware
Charleston AID II OpCo LLC Delaware
Charleston AID II PropCo LLC Delaware
Clarks Summit AID II OpCo LLC Delaware
Clarks Summit AID II PropCo LLC Delaware
Clarksville Senior Partners, LLC (Subsidiary of Joint Venture) Indiana
Deerfield Senior Partners, LLC (Subsidiary of Joint Venture) Indiana
Douglassville AID II OpCo LLC Delaware
Douglassville AID II PropCo LLC Delaware
Dover AID II OpCo LLC Delaware
Dover AID II PropCo LLC Delaware
HEB Healthcare Partners, LLC (Joint Venture) Texas
HEB SNF RE GenPar, LLC Texas
HEB SNF RE, L.P. Texas
L.P.E. New Hampshire
Langdon Place of Dover, a general partnership New Hampshire
Langdon Place of Keene Limited Partnership New Hampshire
Lewisburg AID II OpCo LLC Delaware
Lewisburg AID II PropCo LLC Delaware
Madeira Senior Partners, LLC (Subsidiary of Joint Venture) Indiana
Master Aid II PROPCO LLC Delaware
Master Aid II-B PROPCO LLC Delaware
Master Tenant (FNMA) AID II Opco LLC Delaware



Master Tenant (UNEN) AID II Opco LLC Delaware
McCordsville Senior Partners, LLC (Subsidiary of Joint Venture) Indiana
Milford AID II OpCo LLC Delaware
Milford AID II PropCo LLC Delaware
MLD Properties, LLC Delaware
MLD Shelton Investors Partnership California
New Hampshire Holdings, LLC Delaware
Oak Hill AID II OpCo LLC Delaware
Oak Hill AID II PropCo LLC Delaware
Parent AID II Opco TRS LLC Delaware
Park Place AL, LLC Indiana
Reading AID II OpCo LLC Delaware
Reading AID II PropCo LLC Delaware
Sabra 1717 Preferred Equity, LLC Delaware
Sabra AL Holdings, LLC Delaware
Sabra AL Operations, LLC Delaware
Sabra Alamitos, LP Delaware
Sabra Beachside, LP Delaware
Sabra Beaumont Preferred Equity, LLC Delaware
Sabra Beavercreek Preferred Equity, LLC Delaware
Sabra Bedford Hills, LLC Delaware
Sabra Broadway, LP Delaware
Sabra Burien, LLC Delaware
Sabra CA Holdco, Inc. British Columbia
Sabra CA Holdings, LP Delaware
Sabra California GP, LLC Delaware
Sabra Canadian GP I, Inc. British Columbia
Sabra Canadian GP II, Inc. British Columbia
Sabra Canadian GP III, Inc. British Columbia
Sabra Canadian GP IV, Inc. British Columbia
Sabra Canadian Holdings, LLC Delaware
Sabra Canadian Properties I, Limited Partnership British Columbia
Sabra Canadian Properties II, Limited Partnership British Columbia
Sabra Canadian Properties III, Limited Partnership British Columbia
Sabra Canadian Properties IV, Limited Partnership British Columbia
Sabra Capital Corporation Delaware
Sabra Chatsworth, LP Delaware
Sabra Clarksville Preferred Equity, LLC Delaware
Sabra Colorado, LLC Nevada
Sabra Colorado II, LLC Nevada
Sabra Cottonwood, LP Delaware
Sabra Coventry, LP Delaware
Sabra Danville, LP Delaware
Sabra Deer Lodge, LLC Delaware
Sabra Deerfield Preferred Equity, LLC Delaware



Sabra Edgewater, LP Delaware
Sabra Fairfield, LP Delaware
Sabra Fairmont, LP Delaware
Sabra FHAPT, LLC Delaware
Sabra Forest Hills, LLC Delaware
Sabra Garden View, LP Delaware
Sabra Grand Terrace, LP Delaware
Sabra Hagerstown, LLC Delaware
Sabra Health Care AL, LLC Delaware
Sabra Health Care Delaware, LLC Delaware
Sabra Health Care Frankenmuth, LLC Delaware
Sabra Health Care Holdings I, LLC Delaware
Sabra Health Care Holdings II, LLC Delaware
Sabra Health Care Holdings III, LLC Delaware
Sabra Health Care Holdings IV, LLC Delaware
Sabra Health Care Holdings V, LLC Delaware
Sabra Health Care Holdings VI, LLC Delaware
Sabra Health Care Investments, LP Delaware
Sabra Health Care Limited Partnership Delaware
Sabra Health Care Northeast, LLC Delaware
Sabra Health Care Pennsylvania, LLC Delaware
Sabra Health Care Virginia II, LLC Delaware
Sabra Health Care Virginia, LLC Delaware
Sabra Health Care, L.L.C. Delaware
Sabra IL California GP, LLC Delaware
Sabra IL California, L.P. Delaware
Sabra IL Holdings, LLC Delaware
Sabra IL Operations, LLC Delaware
Sabra IL Texas GP, LLC Texas
Sabra IL Texas, L.P. Texas
Sabra Issaquah, LLC Delaware
Sabra Lake Balboa, LP Delaware
Sabra Lake Drive, LLC Delaware
Sabra LBG 1717 JV, LLC (Joint Venture) Delaware
Sabra LBG Clarksville JV, LLC (Joint Venture) Delaware
Sabra LBG Deerfield JV, LLC (Joint Venture) Delaware
Sabra LBG JV, LLC (Joint Venture) Delaware
Sabra LBG Madeira, LLC (Joint Venture) Delaware
Sabra LBG McCordsville, LLC (Joint Venture) Delaware
Sabra Lomita, LP Delaware
Sabra Madiera Preferred Equity, LLC Delaware
Sabra Marshfield II RP, LLC Delaware
Sabra Marshfield II TRS, LLC Delaware
Sabra McCordsville Preferred Equity, LLC Delaware
Sabra Michigan, LLC Delaware



Sabra Missouri River, LLC Delaware
Sabra Nashua, LLC New Hampshire
Sabra New Braunfels Preferred Equity, LLC Delaware
Sabra New Mexico II, LLC Delaware
Sabra North Carolina GP, LLC Delaware
Sabra North Carolina, L.P. Delaware
Sabra North Conway, L.L.C. New Hampshire
Sabra Opco AL, LLC Delaware
Sabra Pacifica, LP Delaware
Sabra Palm Terrace, LP Delaware
Sabra Park Ridge, LLC Delaware
Sabra Park West, LLC Delaware
Sabra Phoenix Holding, LLC Delaware
Sabra Phoenix Marshfield, LLC Delaware
Sabra Phoenix TRS Venture II, LLC Delaware
Sabra Phoenix TRS Venture, LLC Delaware
Sabra Phoenix Wisconsin, LLC Delaware
Sabra Propco AL, LLC Delaware
Sabra Ramona, LP Delaware
Sabra Ramsey, LLC Delaware
Sabra Ramsey TRS, LLC Delaware
Sabra Texas GP, LLC Texas
Sabra Texas Holdings GP, LLC Texas
Sabra Texas Holdings, LP Texas
Sabra Texas Holdings II, L.P. Texas
Sabra Texas Properties LP Texas
Sabra Texas Properties II, L.P. Texas
Sabra Texas Properties III, L.P. Texas
Sabra Texas Properties IV, L.P. Texas
Sabra Texas Properties VI, L.P. Texas
Sabra TRS Holdings, LLC Delaware
Sabra University, LP Delaware
Sabra Virginia III, LLC Delaware
Sabra Wellmore Preferred Equity, LLC Delaware
Sabra West Lake Operations, LLC Delaware
Sabra Wisconsin, LLC Delaware
Sabra Wisconsin II, LLC Delaware
Sabra Woodland, LP Delaware
Sabra-Sundara Master Developer, LLC Delaware
SbraREIT Assisted Living I, ULC Nova Scotia
SbraREIT Canadian GP V Inc. Nova Scotia
SbraREIT Canadian Properties V, Limited Partnership Alberta
SbraREIT Independent Living I, ULC British Columbia
SbraREIT Independent Living II, ULC British Columbia
Scott Depot AID II OpCo LLC Delaware



Scott Depot AID II PropCo LLC Delaware
Sundara Prop-1, LLC (Subsidiary of Joint Venture) Texas
TSL NB Prop Co., LLC (Joint Venture) Delaware
United Rehab Realty Holding, LLC Delaware
Wellmore of Daniel Island JV, LLC Delaware
Wellmore of Daniel Island Propco, LLC (Subsidiary of Joint Venture) Delaware
Williamsport AID II OpCo LLC Delaware
Williamsport AID II PropCo LLC Delaware
Wyncote AID II OpCo LLC Delaware
Wyncote AID II PropCo LLC Delaware



Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-235449) and Form S‑8 (Nos. 333-220055 and 333-239427) of Sabra Health Care REIT, Inc. of our report dated February 22, 2021 relating to the financial statements, financial statement schedules, and the effectiveness of internal control over financial reporting, which appears in this Form 10‑K.

/s/ PricewaterhouseCoopers LLP
Irvine, California
February 22, 2021



Exhibit 31.1
Certification of Chief Executive Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
I, Richard K. Matros, certify that:

1.I have reviewed this annual report on Form 10-K of Sabra Health Care REIT, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
 
a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: February 22, 2021
 
/S/    RICHARD K. MATROS
Richard K. Matros
Chairman, President and
Chief Executive Officer




Exhibit 31.2
Certification of Chief Financial Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
I, Harold W. Andrews, Jr., certify that:

1.I have reviewed this annual report on Form 10-K of Sabra Health Care REIT, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: 
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 
5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: February 22, 2021
 
/S/    HAROLD W. ANDREWS, JR.
Harold W. Andrews, Jr.
Executive Vice President,
Chief Financial Officer and Secretary



Exhibit 32.1
Certification pursuant to 18 U.S.C. Section 1350,
as Adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
In connection with the Annual Report on Form 10-K of Sabra Health Care REIT, Inc. (the “Registrant”) for the year ended December 31, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Richard K. Matros, as Chairman, President and Chief Executive Officer of the Registrant, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: February 22, 2021
 
/S/    RICHARD K. MATROS
Richard K. Matros
Chairman, President and
Chief Executive Officer



Exhibit 32.2
Certification pursuant to 18 U.S.C. Section 1350,
as Adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
In connection with the Annual Report on Form 10-K of Sabra Health Care REIT, Inc. (the “Registrant”) for the year ended December 31, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Harold W. Andrews, Jr., as Executive Vice President, Chief Financial Officer and Secretary of the Registrant, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
 

Date: February 22, 2021
 
/S/    HAROLD W. ANDREWS, JR.
Harold W. Andrews, Jr.
Executive Vice President,
Chief Financial Officer and Secretary