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Sabra Healthcare Reit (SBRA)
NASDAQ:SBRA
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Sabra Healthcare REIT (SBRA) AI Stock Analysis

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SBRA

Sabra Healthcare REIT

(NASDAQ:SBRA)

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Neutral 65 (OpenAI - 5.2)
Rating:65Neutral
Price Target:
$22.00
â–¼(-1.61% Downside)
Action:Reiterated
Date:08/05/26
SBRA’s score is driven primarily by mixed financial performance: strong multi-year revenue and cash flow, but weaker TTM profitability and a sharp deterioration in cash flow coverage. The latest earnings call was a meaningful positive (reaffirmed growth guidance, improving leverage, strong senior housing operating momentum), while valuation is a modest headwind due to a high P/E despite an attractive dividend yield. Technicals are supportive but currently neutral, consistent with consolidation rather than strong momentum.
Positive Factors
Managed senior housing operating momentum
Sustained same‑store cash NOI and margin expansion in managed senior housing indicate improving fundamentals in the company’s highest‑growth segment. Rising occupancy, RevPOR and margin gains support durable FFO/AFFO growth potential and reduce reliance on cyclical SNF cash flows.
Negative Factors
Sharp decline in cash flow coverage
A steep drop in cash flow coverage signals reduced cushion between operating cash generation and obligations, raising questions about normalized earnings quality. Even with higher cash dollars, the weaker coverage ratio increases sensitivity to tenant disruptions or financing cost spikes over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Managed senior housing operating momentum
Sustained same‑store cash NOI and margin expansion in managed senior housing indicate improving fundamentals in the company’s highest‑growth segment. Rising occupancy, RevPOR and margin gains support durable FFO/AFFO growth potential and reduce reliance on cyclical SNF cash flows.
Read all positive factors

Sabra Healthcare REIT (SBRA) vs. SPDR S&P 500 ETF (SPY)

Sabra Healthcare REIT Business Overview & Revenue Model

Company Description
Sabra Health Care REIT, Inc. engages in the business of acquiring, financing, and owning real estate property. The company was founded on May 10, 2010 and is headquartered in Tustin, CA....
How the Company Makes Money
Sabra primarily makes money by owning healthcare properties and collecting contractual rent and related payments from third-party operators under lease agreements. A significant portion of its revenue is typically generated through long-term, trip...

Sabra Healthcare REIT Earnings Call Summary

Earnings Call Date:Aug 03, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call communicated materially positive operating momentum driven by managed senior housing: strong sequential and year-over-year revenue, occupancy, RevPOR and cash NOI growth, a sizeable and active SHOP pipeline, proactive rent resets and portfolio management, improved leverage and substantial liquidity. Offsetting items were a significant one-time $102.4M provision related to the RCA mortgage payoff, reduced interest income, modestly higher cash interest expense, and some short-term accounting/transition noise. On balance, operational growth and balance-sheet improvements materially outweigh the one-time negatives.
Positive Updates
Robust Investment Activity and Pipeline
Closed roughly $600M in investments during the quarter, with an additional $100M in SHOP investments closing soon; year-to-date closed and awarded investments of ~$700M and another ~$330M actively pursued. Management noted a pipeline in excess of $1B that is almost entirely SHOP.
Negative Updates
Large One-Time Provision Related to RCA Loan Payoff
Recorded a $102.4M provision for loan losses and other reserves primarily tied to the discounted payoff of the RCA mortgage loan; this charge was excluded from normalized results but is a significant GAAP hit for the quarter.
Read all updates
Q2-2026 Updates
Negative
Robust Investment Activity and Pipeline
Closed roughly $600M in investments during the quarter, with an additional $100M in SHOP investments closing soon; year-to-date closed and awarded investments of ~$700M and another ~$330M actively pursued. Management noted a pipeline in excess of $1B that is almost entirely SHOP.
Read all positive updates
Company Guidance
Sabra reaffirmed its 2026 guidance (updated July 21), with the midpoint implying roughly 7% year‑over‑year growth in normalized FFO per share and 8% YoY growth in normalized AFFO per share; Q2 normalized FFO/AFFO were $0.38/$0.40 (Q2 YoY +3%/+5%). Management reiterated same‑store SHOP NOI guidance of low‑to‑mid‑teens (H1 averaged ~14.1% same‑store NOI growth) and expects Medicaid rates to trend to ~2% while the Medicare market‑basket final rule was 2.4%. Key operating and balance‑sheet metrics supporting the outlook include total cash NOI of $144.3M (up $5.6M sequentially), managed SHOP cash NOI $44.6M (vs. $39.0M), triple‑net rental income $94.1M, net debt to adjusted EBITDA of 4.61x (down from 5.04x), about $1.3B liquidity (≈$231.6M cash, $682.5M available credit, $411.8M forward‑sale related), $334.1M ATM capacity remaining and 21.4M shares outstanding under forwards, a declared quarterly dividend of $0.30 (≈75% of Q2 normalized AFFO), and ~ $700M of closed/awarded SHOP/SNF investments year‑to‑date with an active >$1B SHOP pipeline and recent initial yields near 7.5%.

Sabra Healthcare REIT Financial Statement Overview

Summary
Multi-year revenue growth and a recovery to solid profitability in 2024–2025 are supported by consistently positive operating/free cash flow. However, TTM 2026 shows meaningful margin compression and lower net income, alongside a sharp drop in the cash flow coverage ratio, indicating weaker near-term earnings quality despite improved leverage.
Income Statement
62
Positive
Balance Sheet
64
Positive
Cash Flow
58
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue859.56M774.63M703.24M647.51M624.81M569.54M
Gross Profit623.85M503.53M476.15M452.27M462.20M428.34M
EBITDA358.90M456.83M412.61M311.81M216.89M166.21M
Net Income65.44M155.61M126.71M13.76M-77.61M-113.26M
Balance Sheet
Total Assets5.51B5.49B5.30B5.39B5.75B5.97B
Cash, Cash Equivalents and Short-Term Investments231.58M71.54M60.47M41.28M49.31M112.00M
Total Debt1.26B2.55B2.44B2.45B2.55B2.44B
Total Liabilities2.76B2.67B2.56B2.58B2.69B2.59B
Stockholders Equity2.75B2.82B2.74B2.80B3.06B3.38B
Cash Flow
Free Cash Flow444.77M348.61M310.54M300.57M315.73M322.78M
Operating Cash Flow469.94M348.61M310.54M300.57M315.73M356.39M
Investing Cash Flow-440.06M-377.96M-109.00M103.13M-216.25M-336.20M
Financing Cash Flow152.11M40.76M-181.56M-410.30M-161.71M30.14M

Sabra Healthcare REIT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.36
Price Trends
50DMA
19.85
Positive
100DMA
19.97
Positive
200DMA
19.30
Positive
Market Momentum
MACD
0.31
Positive
RSI
53.57
Neutral
STOCH
41.33
Neutral
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 22.36 is above the 20-day moving average (MA) of 21.06, above the 50-day MA of 19.85, and above the 200-day MA of 19.30, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 53.57 is Neutral, neither overbought nor oversold. The STOCH value of 41.33 is Neutral, 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 88 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$15.34B17.5216.51%5.18%15.18%72.69%
72
Outperform
$3.72B24.659.88%4.57%16.91%-1.91%
66
Neutral
$2.06B15.6011.79%5.41%48.96%28.05%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
65
Neutral
$5.34B32.872.31%5.37%13.50%7.25%
54
Neutral
$2.15B-6.70-16.22%0.43%0.39%-8.95%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SBRA
Sabra Healthcare REIT
21.04
3.52
20.07%
LTC
LTC Properties
39.85
6.18
18.35%
NHI
National Health Investors
75.30
3.49
4.85%
OHI
Omega Healthcare
48.46
10.57
27.89%
DHC
Diversified Healthcare Trust
8.82
5.47
163.44%

Sabra Healthcare REIT Corporate Events

Business Operations and StrategyDividendsFinancial Disclosures
Sabra Healthcare REIT Reports Q2 2026 Results, Growth Investments
Positive
Aug 3, 2026
Sabra Health Care REIT reported second-quarter 2026 results on August 3, 2026, posting a net loss of $0.10 per diluted share but normalized AFFO of $0.40, supported by 13.7% year-over-year growth in same-property managed senior housing cash NOI an...
Business Operations and StrategyFinancial Disclosures
Sabra Healthcare REIT Reshapes Portfolio, Raises 2026 Outlook
Positive
Jul 21, 2026
On July 21, 2026, Sabra Health Care REIT announced a major portfolio reshaping, including plans to re-tenant all 26 properties leased to Avamere, with 22 facilities slated to move to Cascadia Healthcare and four to an existing national skilled nur...
Executive/Board ChangesShareholder Meetings
Sabra Healthcare REIT Shareholders Back Board, Pay, Auditor
Positive
Jun 17, 2026
At Sabra Healthcare REIT’s annual meeting of stockholders held on June 17, 2026, investors elected seven directors to serve until the 2027 annual meeting, with each nominee receiving strong majority support despite some opposition votes. Sto...
Business Operations and StrategyM&A Transactions
Sabra Healthcare REIT Highlights Strategic Senior Housing Expansion
Positive
May 28, 2026
On May 28, 2026, Sabra Health Care REIT released an investor presentation outlining year-to-date net investment activity and portfolio strategy, emphasizing its ability to leverage operational expertise and a resilient balance sheet to create long...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 05, 2026