“It’s solidly embedded in our due diligence and portfolio management process.”
About Sabra
Founded by former operators in the skilled nursing space, real estate investment trust (REIT) Sabra operates with an in-depth understanding of the industry. The company’s diverse portfolio of investments includes skilled nursing, senior housing, and behavioral health facilities in the U.S. and Canada. Sabra strives to provide its operators with the support and resources they need to provide compassionate, highly skilled care to patients and residents while driving shareholder value.
Sabra recognizes the importance of assessing climate risk across all its holdings to operate efficiently, protect its investments, and access the long-term viability of its assets. At Sabra, improving the environment starts with supporting its operators, which is central to everything it does. It takes a comprehensive, integrated, and collaborative approach to environmental stewardship, and ClimateCheck is a critical partner in executing this vision.
How Sabra uses ClimateCheck
ClimateCheck analyzes climate data from various governmental and institutional sources to assess physical risk to portfolios and individual properties across the U.S. and Canada from climate-driven hazards like wildfires, extreme heat and cold, wind, flooding, and storms. Sabra leverages ClimateCheck’s comprehensive climate hazard data to enhance its due diligence process and prioritize risk-reducing and cost-saving property improvements.
“Physical climate risk and transition risk assessments of each property help us strategically manage and mitigate risks across our portfolio,” says Peter Nyland, EVP, Asset Management. “It’s solidly embedded in our due diligence and portfolio management process.” The current insurability challenges in some regions highlight just how important it is to understand climate risk assessments before making any real estate investment in today’s market.
ClimateCheck’s team of climate, tech, and real estate experts breaks down complex information into comprehensive, easy-to-understand reports that clients can use to guide crucial investment decisions.
Sabra uses ClimateCheck’s Portfolio Analysis and Commercial Property Report solutions to:
- Assess physical climate risk to potential investments during the due diligence process
- Enhance cost-benefit analyses for energy efficiency upgrades and other sustainability initiatives
- Communicate with operators about climate risk factors and mitigations clearly and easily
- Inform investors, asset managers, and senior management making portfolio-level decisions
- Strengthen its sustainability practices
“Climate risk is operating risk,” Nyland says. “Whether it is an acquisition, repurposing a facility, or energy retrofit. We’re using ClimateCheck projected data to better understand where we can help Sabra and our operators make smart investments to reduce operating costs.”
One such example is Sabra’s Green Links Fund, designed to help fund energy and water efficiency initiatives for its triple-net lease operators, with an initial $5 million investment. Operators can access these funds to cover up to 100 percent of energy and water efficiency improvements and then pay back the funds over time with the money they’re saving in utilities and other costs. Results include supportive relationships with operators, safer environments for residents, and a more substantial portfolio going into the future. In the healthcare sector, investments like LED lighting, water, HVAC, and other energy efficiency upgrades are about more than just generating a return on investment; they improve the lives and working conditions for both residents and caregivers.
“Sabra sets a standard for responsible corporate stewardship with its forward-thinking approach,” says Sam Eckhouse, ClimateCheck cofounder and CTO. “Integrating ClimateCheck’s tools into their enterprise risk management and due diligence process enables them to navigate physical and transitional climate risks while empowering their operators to prepare for and mitigate those challenges. Their dedication inspires us.”
Cutting-edge data meets responsive support
Nyland says, “Sabra appreciates not only ClimateCheck’s robust climate risk data but also the ease of accessibility and responsiveness of the ClimatCheck team. Information is most valuable when it is useable.”
ClimateCheck prioritizes transparency in sharing information about our methods and expertise. Information about our data and how we use it is readily available online, and anyone can access our instant risk assessments for individual properties. Our experts understand both the science behind climate risk and the real-world implications.
To learn more about how ClimateCheck can help your enterprise understand and adapt to climate risk to property and assets, contact us.