Download PDF

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.

Show Full description

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: Q1 2026 Earnings – Strong Growth, AI‑Driven Efficiency

Sabra Health Care REIT reported a robust first quarter, with earnings per share of $0.16, narrowly beating analyst estimates of $0.1614. Normalized FFO per share rose to $0.38 and AFFO to $0.39, a 9% and 5% increase YoY respectively. The company’s revenue base is anchored by a 85.6% occupancy rate in its senior housing managed portfolio and a healthy rent coverage margin in its triple‑net skilled nursing segment. With a P/E of 32.87 and an ROIC of 34.3%, Sabra’s valuation reflects the premium investors place on its stable cash flows and high‑yield portfolio. The dividend yield stands at 5.89%, underscoring the REIT’s commitment to returning value to shareholders.

Publication Date: May -04

📋 Highlights
  • Strong Investment Activity:: Closed $400M in investments YTD 2026, including $102M in Q1 and $14.1M post-quarter, with 8% estimated initial cash yield.
  • Financial Growth:: Normalized FFO/share rose 9% YoY to $0.38, and normalized AFFO/share increased 5% to $0.39 for Q1 2026.
  • Portfolio Performance:: Net-leased senior housing portfolio at 93% occupancy in Canada, with triple-net skilled nursing and SHOP segments driving growth.
  • Liquidity and Guidance:: $1.2B liquidity, $690M SHOP investment pipeline, and reaffirmed 2026 guidance with 77% AFFO dividend payout ratio.
  • AI and Operational Efficiency:: Deploying automation for back-office workflows and prop-tech solutions, targeting 95%+ SHOP focus and lower G&A growth.

Deal Flow and Portfolio Expansion

In Q1, Sabra closed $102 million in acquisitions, adding three senior housing units, one skilled nursing community, and a preferred equity stake in a development. An additional $14.1 million invested post‑quarter pushed year‑to‑date investments to roughly $206 million, with an estimated initial cash yield of 8%. The company also has $107 million in awarded senior housing and $94 million in skilled nursing deals, reinforcing a pipeline of $690 million in managed senior housing opportunities.

AI Initiatives and Operational Efficiency

Sabra is deploying AI across its corporate functions to accelerate back‑office workflows and enhance data processing, particularly within the SHOP portfolio. Automation of medical records and fall‑detection systems is already in place, while prop‑tech solutions aim to improve resident care and operational oversight. These initiatives are expected to curb G&A growth and provide a scalable platform for future SHOP acquisitions.

Capital Structure and Liquidity

The REIT’s net debt to adjusted EBITDA ratio sits at 5.04x, comfortably below the industry average and supported by approximately $1.2 billion in liquidity. This strong balance sheet allows Sabra to pursue aggressive growth in its SHOP segment without compromising financial flexibility.

Guidance and Market Outlook

Sabra reaffirmed its 2026 earnings guidance, citing a Q1 midpoint performance and a stable cap‑rate environment for skilled nursing facilities. The company expects Medicare and Medicaid rate normalization, with a two‑handle Medicare market basket and a three‑handle Medicaid increase, to continue supporting revenue growth.

Behavioral Health and Asset Divestiture

On the behavioral health front, Sabra is partnering with Landmark to offload select facilities, generating $1.5 million in Q1 and projecting continued sales through Q2. Simultaneously, the REIT is selling three legacy Holiday assets from its SHOP portfolio, though proceeds remain undisclosed.

Future Growth Strategy

Sabra will continue to deepen its SHOP exposure, targeting properties with occupancy rates in the upper 80s to low 90s percent. The company maintains a balanced portfolio, confident in its ability to leverage value‑based care programs and risk‑based arrangements with insurers and ACOs to drive long‑term returns.

3. NewsRoom

Card image cap

Sabra Health Care REIT: A 6% Yield Backed By Powerful Demographic Tailwinds

May -08

Source: seekingalpha.com

Card image cap

SRET's Monthly Payouts Survive Global Real Estate Stress, Data Shows

May -06

Source: 247wallst.com

Card image cap

REITs Excel, Earnings Swell, Fed Rebels

May -03

Source: seekingalpha.com

Card image cap

Sabra Health Care REIT, Inc. (SBRA) Q1 2026 Earnings Call Transcript

Apr -30

Source: seekingalpha.com

Card image cap

Sabra Healthcare (SBRA) Tops Q1 FFO and Revenue Estimates

Apr -29

Source: zacks.com

Card image cap

Sabra Reports First Quarter 2026 Results; Reiterates 2026 Guidance

Apr -29

Source: businesswire.com

Card image cap

Advisors Capital Management LLC Acquires 73,281 Shares of Sabra Healthcare REIT, Inc. $SBRA

Apr -26

Source: defenseworld.net

Card image cap

Sabra Health Care REIT, Inc. to Attend Wells Fargo's 29th Annual Real Estate Securities Conference

Apr -20

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 ->

View Full Report
Stock-Card
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 ->

View Full Report
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 ->

View Full Report
Stock-Card
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 ->

View Full Report
Stock-Card
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 ->

View Full Report
Stock-Card
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 ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.75$

Current Price

20.75$

Potential

-0.00%

Expected Cash-Flows