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Sabra Healthcare REIT (SBRA)
NASDAQ:SBRA
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Sabra Healthcare REIT
(NASDAQ:SBRA)63Neutral
Positive Factors
Analyst Recommendations
Analyst upgrades shares of Sabra Healthcare REIT to Market Outperform, expecting multiple tailwinds to result in outsized returns.
Senior Housing Growth
Senior housing assets are poised for multi-year, outsized NOI growth due to a significant shortfall of development.
Negative Factors
Management Guidance
Management's guidance is for Core FFO to be within a range of $1.43-$1.46 per share ($1.445 midpoint), slightly below consensus of $1.48 per share.
Sabra Healthcare REIT (SBRA) vs. S&P 500 (SPY)
Market Cap
$3.95B
Dividend Yield7.14%
Average Volume (3M)2.18M
Price to Earnings (P/E)30.9
Beta (1Y)0.79
Revenue Growth7.22%
EPS Growth809.92%
CountryUS
Employees48
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)0.54
Shares Outstanding237,910,980
10 Day Avg. Volume2,339,390
30 Day Avg. Volume2,182,488
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)N/A
Price to Sales (P/S)5.62
Price to Cash Flow (P/CF)12.40
P/FCF Ratio9.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.60Price Target Upside15.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Sabra Healthcare REIT Business Overview & Revenue Model
Company DescriptionSabra Healthcare REIT, Inc. (SBRA) is a real estate investment trust that specializes in acquiring, owning, and leasing healthcare-related real estate properties. The company's portfolio primarily includes skilled nursing facilities, senior housing communities, and specialty hospitals across the United States and Canada. Its investments are aimed at fostering a diversified portfolio that supports the healthcare sector's infrastructure needs.
How the Company Makes MoneySabra Healthcare REIT makes money by leasing its healthcare-related properties to various operators under long-term triple-net lease agreements, where tenants are responsible for property expenses such as taxes, insurance, and maintenance. This structure provides Sabra with a steady stream of rental income. Additionally, the company engages in mortgage lending and other real estate financing activities that generate interest income. Key partnerships with experienced healthcare operators and strategic acquisitions of properties contribute to its earnings, ensuring a diversified and stable revenue stream.
Sabra Healthcare REIT Financial Statement Overview
Summary
Sabra Healthcare REIT shows moderate financial health with a significant recovery in net profit margin and stable revenue growth. However, operational efficiency has decreased, and high leverage is a concern. Strong cash flow generation supports future growth and financial obligations.Income Statement
Sabra Healthcare REIT's income statement shows a moderate performance with a gross profit margin of 100% due to no cost of goods sold. The net profit margin improved significantly from -12% in 2022 to 18% in 2023, indicating recovery. Revenue grew by 8.6% in 2023, signaling positive growth. However, the EBIT margin decreased from 21% in 2020 to 19% in 2023, and the EBITDA margin also reduced from 70% in 2020 to 42% in 2023, reflecting some operational efficiency challenges.65
Positive
Balance Sheet
The balance sheet reveals a stable but moderate financial position. The debt-to-equity ratio stands at 0.64 in 2023, indicating moderate leverage. Return on equity improved to 5% in 2023 from negative in 2022, highlighting better profitability. The equity ratio remained stable at around 51%, ensuring a decent level of financial stability. However, the high level of debt could pose risks if not managed carefully.55
Neutral
Cash Flow
The cash flow statement shows robust free cash flow generation with a growth rate of 3.3% in 2023. The operating cash flow to net income ratio is strong at 2.45, indicating efficient cash generation relative to net income. Free cash flow to net income also improved, reflecting better cash conversion. Overall, cash flows are strong, providing a solid base for future investments and debt servicing.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 583.31M | 703.24M | 647.51M | 624.81M | 569.54M | 598.57M | Gross Profit |
| 433.10M | 476.15M | 269.18M | 462.20M | 428.34M | 467.02M | EBIT |
| 165.87M | 0.00 | 221.52M | 135.57M | 19.04M | 241.22M | EBITDA |
| 506.51M | 412.61M | 311.81M | 323.35M | 166.21M | 417.96M | Net Income Common Stockholders |
| 43.28M | 126.71M | 13.76M | -77.61M | -113.26M | 138.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 60.47M | 60.47M | 41.28M | 49.31M | 112.00M | 59.08M | Total Assets |
| 5.30B | 5.30B | 5.39B | 5.75B | 5.97B | 5.99B | Total Debt |
| 1.76B | 1.76B | 2.45B | 2.70B | 2.39B | 2.37B | Net Debt |
| 1.70B | 1.70B | 2.41B | 2.65B | 2.28B | 2.31B | Total Liabilities |
| 2.56B | 2.56B | 2.58B | 2.69B | 2.59B | 2.58B | Stockholders Equity |
| 2.74B | 2.74B | 2.80B | 3.06B | 3.38B | 3.41B |
| Cash Flow | Free Cash Flow | ||||
| 510.79M | 310.54M | 300.57M | 315.73M | 322.78M | 249.26M | Operating Cash Flow |
| 343.81M | 310.54M | 300.57M | 315.73M | 356.39M | 354.85M | Investing Cash Flow |
| -387.09M | -109.00M | 103.13M | -216.25M | -336.20M | -136.45M | Financing Cash Flow |
| 40.38M | -181.56M | -410.30M | -161.71M | 30.14M | -202.11M |
Sabra Healthcare REIT Technical Analysis
Positive
17.03
Price Trends
16.53
Positive
17.26
Negative
16.35
Positive
Market Momentum
0.03
Negative
59.84
Neutral
91.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBRA, the sentiment is Positive. The current price of 17.03 is above the 20-day moving average (MA) of 16.39, above the 50-day MA of 16.53, and above the 200-day MA of 16.35, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.84 is Neutral, neither overbought nor oversold. The STOCH value of 91.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBRA.
Sabra Healthcare REIT Risk Analysis
Sabra Healthcare REIT disclosed 43 risk factors in its most recent earnings report. Sabra Healthcare REIT reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sabra Healthcare REIT Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $98.70B | 186.70 | 1.65% | 1.67% | 20.40% | 57.80% | |
76 Outperform | $10.38B | 24.52 | 8.96% | 7.27% | 9.90% | 56.41% | |
63 Neutral | $3.95B | 30.94 | 4.62% | 7.14% | 7.22% | 809.92% | |
63 Neutral | $31.32B | 358.18 | 0.75% | 2.56% | 9.48% | ― | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
56 Neutral | $3.39B | ― | -47.99% | 7.96% | 14.19% | -331.18% |
* Real Estate Sector Average
Performance Comparison
SBRA
Sabra Healthcare REIT
17.03
4.10
31.71%
WELL
Welltower
153.90
64.28
71.73%
OHI
Omega Healthcare
37.38
8.68
30.24%
VTR
Ventas
69.81
28.27
68.05%
MPW
Medical Properties
5.64
1.61
39.95%
Sabra Healthcare REIT Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: 2.90% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong performance in Sabra's senior housing and skilled portfolios, with record high EBITDARM coverage and significant growth in managed senior housing. However, challenges remain with workforce availability and political risks related to potential Medicaid cuts. Despite these concerns, Sabra's financial growth and strong balance sheet provide a positive outlook for 2025.Highlights
Senior Housing and Skilled Portfolio Performance
Sabra's senior housing and skilled portfolio showed continued strength with SHOP same-store occupancy up 80 basis points sequentially and margins up 20 basis points. SHOP cash NOI was at 17.9% for the quarter.
All-Time High EBITDARM Coverage
Sabra achieved an all-time high EBITDARM coverage of 2.09, with skilled margins higher than seen in years.
2024 Financial Growth
Sabra reported a 7% year-over-year normalized AFFO growth and anticipates further growth in 2025 with higher volume deals.
Managed Senior Housing Portfolio Growth
The managed senior housing portfolio showed sequential revenue growth of 3.5% and cash NOI growth of 5.4%. Year-over-year revenue grew 7.4%, with Canadian communities growing revenue by 10.6%.
Strong Balance Sheet and Liquidity
As of December 31, 2024, Sabra had a net debt to adjusted EBITDA ratio of 5.27x and ample liquidity of $980 million.
Lowlights
Workforce Availability Challenges
Workforce availability remains a challenge in the sector, although some strategies have mitigated these issues.
Political and Regulatory Concerns
Potential Medicaid cuts pose a risk, although Sabra believes there are natural guardrails in place to protect against significant impacts.
Triple-Net Portfolio Decline
Cash rental income for the triple-net portfolio totaled $90 million, down $1.8 million due to timing of cash basis tenant rents and asset sales.
Company Guidance
During the 2024 Sabra Fourth Quarter Earnings Call, the company provided guidance for 2025, highlighting several key metrics. Sabra expects normalized FFO per share to range from $1.43 to $1.46 and normalized AFFO per share to range from $1.48 to $1.51, indicating approximately 4% growth over 2024. Cash NOI growth for the same-store managed senior housing portfolio is anticipated to be in the low to mid-teens, with the first half of the year likely seeing higher growth than the second half. The company plans to continue building on its strategy from 2024, which resulted in 7% year-over-year normalized AFFO growth. Sabra also noted expectations for a higher volume of deals in 2025, driven by an increased number of opportunities mainly in the SHOP category and some skilled opportunities. Additionally, the guidance assumes G&A expenses of approximately $50 million, including $11 million of stock-based compensation, with the weighted average share count around 240 to 241 million shares.Sabra Healthcare REIT Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Sabra Healthcare REIT Reports Strong Q4 2024 Results
Positive
Feb 19, 2025
On February 19, 2025, Sabra Healthcare REIT reported its fourth-quarter 2024 financial results, highlighting a net income of $0.19 per share and strong performance in its managed senior housing portfolio with a 17.9% increase in cash NOI. The company closed significant transactions, including the acquisition of a senior housing community and disposition of several facilities, affecting its investment and cash flow strategies. Sabra introduced its 2025 earnings guidance, projecting low-to-mid teens growth for its managed senior housing portfolio and maintaining a robust liquidity position with $980 million available. The company emphasized its commitment to leveraging market opportunities and enhancing portfolio performance in the coming year.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.