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1. Company Snapshot

1.a. Company Description

As of March 31, 2022, Sabra's investment portfolio included 416 real estate properties held for investment.This consists of (i) 279 Skilled Nursing/Transitional Care facilities, (ii) 59 Senior Housing communities (“Senior Housing - Leased”), (iii) 50 Senior Housing communities operated by third-party property managers pursuant to property management agreements (“Senior Housing - Managed”), (iv) 13 Behavioral Health facilities and (v) 15 Specialty Hospitals and Other facilities), one asset held for sale, one investment in a sales-type lease, 16 investments in loans receivable (consisting of (i) two mortgage loans, (ii) one construction loan and (iii) 13 other loans), seven preferred equity investments and one investment in an unconsolidated joint venture.As of March 31, 2022, Sabra's real estate properties held for investment included 41,445 beds/units, spread across the United States and Canada.

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1.b. Last Insights on SBRA

Sabra Health Care REIT's recent performance has been driven by several positive factors. The company's accelerated transition to the SHOP operating model is expected to unlock hidden value, with a target of 40% SHOP portfolio exposure and potential for robust growth into 2026. Additionally, Sabra's normalized AFFO guidance for 2025 is $1.495/share, with an 80% payout ratio supporting a 6.38% dividend yield and potential for future increases. Furthermore, the company has declared a common dividend, and its tax treatment for 2025 distributions has been announced.

1.c. Company Highlights

2. Sabra Health Care REIT: Steady Performance and Growth Prospects

Sabra Health Care REIT reported a normalized AFFO per share of $0.38 for the fourth quarter, in line with estimates. The company's cash NOI from the managed senior housing portfolio increased by $5.5 million, while cash NOI from the triple net portfolio decreased by $1.3 million. The total managed portfolio experienced sequential revenue growth of 15.8% and cash NOI growth of 18.4%. The company's net income for 2026 is expected to be between $0.60 and $0.64 per share, with FFO and normalized FFO expected to be between $1.49 and $1.53 per share.

Publication Date: Feb -20

📋 Highlights
  • SHOP Portfolio Growth: Sabra anticipates sturdy 2026 NOI growth from SHOP, supported by a $450M investment pipeline and 5% midpoint normalized FFO/AFFO growth guidance.
  • Managed Senior Housing Performance: Portfolio delivered 15.8% sequential revenue growth, 18.4% cash NOI growth, and 60 bps margin expansion, with $150M in new investments at 7.5% initial yield.
  • 2026 Financial Guidance: Normalized FFO/AFFO per share expected to rise ~5% YoY, with $1.55–$1.59 per share, driven by $103M cash interest expense and $52M G&A cost projections.
  • Occupancy and Margin Outlook: CEO targets >90% occupancy in 2026, with mid-90s as "effectively full," alongside low single-digit triple-net NOI growth and 35%+ assisted living margin potential.
  • Geographic and Market Trends: Canadian markets outpace U.S. recovery by 300 bps YoY, with low supply driving occupancy growth, while SHOP investments ($240M awarded) focus on newer vintage assets at 7% cap rates.

Operational Highlights

The company's managed senior housing portfolio had a solid quarter, with continued growth driven by investments of over $150 million, adding four properties to the managed portfolio. The estimated initial cash yield on these investments is 7.5%, with an average age of less than ten years. The company's transition facilities are expected to improve, adding to overall growth. As Richard K. Matros mentioned, "the transition facilities are expected to improve, adding to overall growth."

Growth Prospects

Sabra Health Care REIT expects sturdy NOI growth for the SHOP portfolio in 2026, driven by continued occupancy growth, low single-digit rate growth, and muted expense growth. The company expects to exceed 90% occupancy in 2026, with mid-nineties being a reasonable number to think about as effectively full. Analysts estimate next year's revenue growth at 8.2%.

Valuation

Using the current price, the company's P/E Ratio is 32.08, and the Dividend Yield is 5.99%. The EV/EBITDA ratio is 13.65, indicating a relatively moderate valuation. With a ROE of 5.63% and a Net Debt / EBITDA ratio of 2.6, the company's financial health appears stable.

Investment Activity

The company's investment activity has grown by $200 million since the last call, with $240 million of awarded deals closing in Q1 and early Q2. The lion's share of investment activity is expected to be at SHOP, with skilled nursing representing a small portion. Elmer Chang stated that they expect to find high-quality, newer vintage assets at good yields, with a preferred equity program for SHOP developments providing a solid investment return and optionality.

3. NewsRoom

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Sabra Healthcare REIT, Inc. $SBRA Shares Acquired by Citigroup Inc.

Mar -01

Source: defenseworld.net

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Sabra Health Care: Leveraging SHOP To Capture Silver Tsunami Tailwinds

Feb -27

Source: seekingalpha.com

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Assetmark Inc. Has $1.24 Million Stock Position in Sabra Healthcare REIT, Inc. $SBRA

Feb -20

Source: defenseworld.net

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Rhumbline Advisers Sells 50,284 Shares of Sabra Healthcare REIT, Inc. $SBRA

Feb -19

Source: defenseworld.net

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Sabra Healthcare REIT Q4 Earnings Call Highlights

Feb -15

Source: defenseworld.net

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Sabra Health Care REIT, Inc. (SBRA) Q4 2025 Earnings Call Transcript

Feb -13

Source: seekingalpha.com

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Sabra Health Care REIT, Inc. to Attend Citi's 2026 Global Property CEO Conference

Feb -13

Source: businesswire.com

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Sabra Reports Fourth Quarter 2025 Results; Introduces 2026 Guidance

Feb -12

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.68%)

6. Segments

Rental and Related Revenues

Expected Growth: 3%

Sabra Health Care REIT's 3% growth in Rental and Related Revenues is driven by increasing demand for healthcare services, aging population, and strategic acquisitions of high-quality properties. Additionally, the company's diversified portfolio across senior housing, skilled nursing, and acute care facilities contributes to its growth. Furthermore, Sabra's strong relationships with operators and tenants, as well as its focus on cost management, also support revenue growth.

Resident Fees and Services

Expected Growth: 5%

Sabra Health Care REIT's 5% growth in Resident Fees and Services is driven by increasing demand for senior housing, rising healthcare expenditures, and a growing elderly population. Additionally, the company's strategic acquisitions, high occupancy rates, and rent escalations contribute to revenue growth.

Interest and Other

Expected Growth: 2%

Sabra Health Care REIT's 2% growth in Interest and Other is driven by increasing investments in high-yielding assets, expansion of its loan portfolio, and rising interest rates. Additionally, the company's strategic partnerships and joint ventures contribute to the growth, as well as its focus on diversifying its revenue streams.

7. Detailed Products

Triple-Net Leased Properties

Sabra Health Care REIT, Inc. owns and invests in triple-net leased properties, which are leased to healthcare providers and operators under long-term agreements.

Senior Housing Communities

Sabra Health Care REIT, Inc. invests in senior housing communities, including assisted living, memory care, and independent living facilities.

Skilled Nursing Facilities

Sabra Health Care REIT, Inc. owns and operates skilled nursing facilities, providing short-term and long-term care to patients.

Behavioral Health Facilities

Sabra Health Care REIT, Inc. invests in behavioral health facilities, offering mental health and addiction treatment services.

Medical Office Buildings

Sabra Health Care REIT, Inc. owns and operates medical office buildings, providing space for healthcare providers and medical practices.

8. Sabra Health Care REIT, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Sabra Health Care REIT, Inc. operates in a niche market, providing healthcare facilities to seniors. The threat of substitutes is low due to the specialized nature of the company's services.

Bargaining Power Of Customers

Sabra Health Care REIT, Inc. has a diverse portfolio of tenants, which reduces the bargaining power of individual customers. However, the company's largest tenants still have some negotiating power.

Bargaining Power Of Suppliers

Sabra Health Care REIT, Inc. has a strong financial position, which reduces its dependence on suppliers. The company can negotiate favorable terms with its suppliers.

Threat Of New Entrants

The healthcare REIT industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This limits the threat of new entrants.

Intensity Of Rivalry

Sabra Health Care REIT, Inc. operates in a competitive industry, but the company's diversified portfolio and strong financial position help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.28%
Debt Cost 7.38%
Equity Weight 53.72%
Equity Cost 9.77%
WACC 8.66%
Leverage 86.14%

11. Quality Control: Sabra Health Care REIT, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CareTrust REIT

A-Score: 7.1/10

Value: 2.5

Growth: 3.9

Quality: 8.3

Yield: 9.0

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

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Omega Healthcare

A-Score: 6.9/10

Value: 2.9

Growth: 3.0

Quality: 7.3

Yield: 10.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Sabra Health Care REIT

A-Score: 6.8/10

Value: 4.0

Growth: 3.4

Quality: 6.8

Yield: 10.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

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National Health Investors

A-Score: 6.8/10

Value: 2.8

Growth: 4.4

Quality: 7.6

Yield: 9.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Healthcare Realty Trust

A-Score: 6.4/10

Value: 5.9

Growth: 2.9

Quality: 5.4

Yield: 10.0

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

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Ventas

A-Score: 5.6/10

Value: 1.4

Growth: 3.6

Quality: 3.2

Yield: 7.0

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.42$

Current Price

20.42$

Potential

-0.00%

Expected Cash-Flows