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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 was driven by strong fundamentals, favorable demographics, and a well-managed balance sheet. The company's 6.7% dividend yield is attractive, and management is guiding for AFFO growth, supported by rising occupancy, stable reimbursement rates, and a robust acquisition pipeline in skilled nursing. Additionally, the company's leadership promotions and transition of the Chief Investment Officer position suggest a well-planned succession strategy. Furthermore, Sabra's strong financial position, with a low-leveraged balance sheet, provides a solid foundation for future growth.

1.c. Company Highlights

2. Sabra Health Care REIT Delivers Solid Q3 Earnings

Sabra Health Care REIT reported normalized FFO per share of $0.36 and normalized AFFO per share of $0.38 for the third quarter of 2025, with year-to-date normalized FFO per share at $1.09 and normalized AFFO per share at $1.12, representing a 5% and 4% increase, respectively, over the same period in 2024. The actual EPS came in at $0.38, in line with analyst estimates. Revenue for the quarter grew 5.4% year-over-year, with the Canadian communities growing 10.2% in the same period. As Michael Costa noted, the investments made this year will have a muted impact on 2025 performance but are expected to contribute to 2026 results.

Publication Date: Nov -07

📋 Highlights
  • SHOP Portfolio Expansion: Sabra raised its SHOP target from 26% to 40% of the portfolio, driven by strong growth exceeding initial expectations.
  • Managed Senior Housing Investment: $237M invested in the quarter, with 26% of total annualized cash NOI from the segment and a $121M post-quarter acquisition pipeline.
  • Revenue Growth: Same-store managed senior housing revenue grew 5.4% YoY, with Canadian communities showing 10.2% growth.
  • Financial Performance: Normalized FFO and AFFO per share reached $0.36 and $0.38 in Q3 2025, up 5% and 4% year-over-year.
  • Guidance Confidence: Guidance adjusted to mid-teens FFO growth due to SHOP stability, with 2026 benefits from late-2025 investments (7-8% going-in yields, low double-digit IRRs).

SHOP Portfolio Continues to Drive Growth

The SHOP portfolio now stands at approximately 26% of Sabra's portfolio, exceeding the company's initial expectations. As a result, Sabra has set a new target of increasing its SHOP portfolio to 40%. The same-store managed senior housing portfolio continued its strong performance, with revenue growth driven by the Canadian assets, which have occupancy rates above 90%. Talya Nevo-Hacohen predicted mid-single-digit annual rent increases in the SHOP segment heading into '26.

Investment Pipeline and Strategy

Sabra has a strong pipeline of acquisitions, with $121 million of awarded deals subsequent to quarter end. The company has been selective in its SHOP investments, focusing on recent vintage assets. Darrin Smith mentioned that the investments have going-in yields of 7-8% and are expected to deliver mid-single-digit annual earnings growth. The company's credit upgrade validates its story and provides more breathing room in terms of credit ratings.

Valuation and Outlook

With a P/E Ratio of 24.6 and an EV/EBITDA of 13.01, the market appears to be pricing in Sabra's growth prospects. Analysts estimate next year's revenue growth at 8.9%. The company's Dividend Yield stands at 6.37%, providing a relatively attractive return for investors. As the company continues to grow its SHOP portfolio and deliver on its earnings expectations, the current valuation metrics suggest that Sabra is on track to meet its growth objectives.

3. NewsRoom

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Critical Review: Park Hotels & Resorts (NYSE:PK) and Sabra Healthcare REIT (NASDAQ:SBRA)

Dec -01

Source: defenseworld.net

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The State Of REITs: November 2025 Edition

Nov -18

Source: seekingalpha.com

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Advisors Capital Management LLC Grows Stake in Sabra Healthcare REIT, Inc. $SBRA

Nov -14

Source: defenseworld.net

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Sabra Health Care REIT, Inc. (SBRA) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Sabra (SBRA) Reports Q3 Earnings: What Key Metrics Have to Say

Nov -06

Source: zacks.com

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Sabra Healthcare (SBRA) Meets Q3 FFO Estimates

Nov -06

Source: zacks.com

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Sabra Reports Third Quarter 2025 Results; Updates 2025 Guidance

Nov -05

Source: businesswire.com

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Sabra (SBRA) Upgraded to Buy: Here's Why

Nov -04

Source: zacks.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

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Omega Healthcare

A-Score: 6.8/10

Value: 3.5

Growth: 3.0

Quality: 8.5

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

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National Health Investors

A-Score: 6.7/10

Value: 3.0

Growth: 4.3

Quality: 8.1

Yield: 9.0

Momentum: 6.0

Volatility: 10.0

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CareTrust REIT

A-Score: 6.7/10

Value: 2.2

Growth: 4.4

Quality: 7.9

Yield: 9.0

Momentum: 7.0

Volatility: 9.7

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Sabra Health Care REIT

A-Score: 6.5/10

Value: 4.1

Growth: 3.4

Quality: 6.8

Yield: 10.0

Momentum: 5.0

Volatility: 9.7

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Healthcare Realty Trust

A-Score: 5.9/10

Value: 4.4

Growth: 2.9

Quality: 3.3

Yield: 10.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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Ventas

A-Score: 5.4/10

Value: 1.3

Growth: 3.6

Quality: 4.2

Yield: 7.0

Momentum: 7.0

Volatility: 9.3

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

19.28$

Current Price

19.28$

Potential

-0.00%

Expected Cash-Flows