Sabra Healthcare REIT (SBRA) AI Stock Analysis

• Market Cap: $5.18B
• Dividend Yield: 6.47%
• Average Volume (3M): 2.81M
• Price to Earnings (P/E): 32.3
• Beta (1Y): 0.14
• Revenue Growth: 8.12%
• EPS Growth: 75.95%
• Country: US
• Employees: 50
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.11
• Shares Outstanding: 252,145,720
• 10 Day Avg. Volume: 2,833,071
• 30 Day Avg. Volume: 2,810,680
• PEG Ratio: 1.59
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 5.90
• P/FCF Ratio: 13.11
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 9.89
• Enterprise Value/Gross Profit: 15.21
• Enterprise Value/Ebitda: 16.77
• 1Y Price Target: $22.00
• Price Target Upside: 7.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.7
• Revenue Forecast (FY): $856.91M

• Rating: 70 Outperform
• Price Target: $22.50 ▲(9.49% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

SBRA scores 70 mainly on improving fundamentals (revenue growth, profitability recovery, solid cash generation) and a constructive earnings outlook with strong SHOP operational momentum and solid liquidity/leverage metrics. The score is held back by valuation (higher P/E despite a strong yield) and lingering consistency/leverage-cash-coverage risks, while technicals are strong but somewhat overbought.

Positive Factors

Managed Senior Housing Operational Momentum

Sustained same-store revenue, occupancy and cash-NOI expansion in the managed senior housing platform indicates structural operating leverage and improving unit economics. Over 2–6 months this supports predictable cash flow growth, better margin sustainability and faster payback on acquisitions in the SHOP strategy.

Strong Liquidity and Lowered Leverage

Meaningful liquidity and a declining net-debt/EBITDA ratio reduce refinancing and operational risk, supporting the company’s ability to fund acquisitions, cover maturities and maintain dividends. This structural balance-sheet improvement enhances financial flexibility over the medium term.

Active Investment Pipeline with Attractive Initial Yields

A sizable, accretive pipeline and historically strong initial yields imply the company can deploy capital to generate above-cost returns. Over months this supports FFO/AFFO growth, dilutes fixed-cost leverage, and reinforces a repeatable investment model for portfolio modernization and income generation.

Negative Factors

Earnings Volatility and Uneven Debt Coverage

Intermittent swings in profitability and episodes of weak cash coverage of debt reduce predictability of free cash flow and dividend coverage. Over the medium term this raises refinancing and covenant risk during market stress and complicates reliable forecasting of shareholder returns.

Concentration in SHOP Pipeline vs Skilled Nursing

A concentrated focus on managed senior housing increases exposure to that segment’s operational cycles and competitive dynamics. Limited near-term diversification into skilled nursing raises portfolio concentration risk and could amplify revenue or occupancy shocks tied to SHOP-specific regulation or demand shifts.

Cap-Rate Compression and Competitive Acquisition Market

Sustained cap-rate compression and heightened buyer competition can structurally reduce acquisition returns and future yield on invested capital. Over months this pressure can compress FFO margins on new deals and require higher operational gains to meet historic return thresholds.

Sabra Healthcare REIT Business Overview & Revenue Model

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.

How the Company Makes Money

Sabra Healthcare REIT generates revenue primarily through leasing its healthcare properties to operators under long-term, net leases. These leases require operators to cover property expenses, including maintenance and taxes, providing Sabra with a predictable income stream. The company also earns revenue from mortgage loans and financing arrangements that support operators in improving or expanding their facilities. Key revenue streams include rental income from skilled nursing facilities and senior housing, as well as interest income from loans made to operators. Sabra's partnerships with experienced operators in the healthcare sector are crucial, as they help ensure high occupancy rates and effective management of the properties, further contributing to the company's earnings stability and growth potential.

Sabra Healthcare REIT Financial Statement Overview

Summary

Financials are improving, led by steady revenue growth and a return to solid profitability in 2024–2025, plus consistently positive operating cash flow and rising free cash flow. Offsetting this are historical earnings volatility, uneven debt cash-coverage (notably weaker in 2025), and only modest returns on equity despite improved leverage metrics.

Income Statement

Revenue has been steadily expanding (from ~$570M in 2021 to ~$775M in 2025), supporting a healthier top-line trajectory. Profitability has improved meaningfully from losses in 2021–2022 to solid profits in 2024–2025, with net margin rising to ~20% in 2025. The key weakness is earnings volatility across the period (losses in 2021–2022 and very low profit in 2023), and 2025 has missing/zeroed operating profit line items (gross profit and EBIT shown as 0), which reduces confidence in the margin profile for that year despite strong net income and EBITDA.

Balance Sheet

Leverage looks manageable-to-moderate for a healthcare REIT, with debt-to-equity improving to ~0.45 in 2025 versus ~0.87–0.89 in 2023–2024, indicating a meaningful strengthening in capital structure. Equity remains sizable (~$2.8B in 2025) versus total assets (~$5.5B). Offsetting this, returns on shareholder capital are still modest (return on equity ~5.5% in 2025) after being weak/negative earlier in the period, and total debt remains substantial in absolute dollars, leaving sensitivity to refinancing and rate conditions.

Cash Flow

Cash generation is consistently positive and relatively stable, with operating cash flow in the ~$300M–$357M range across the period and a step-up to ~$349M in 2025. Free cash flow tracks operating cash flow closely and shows growth in 2024–2025, indicating improved cash capacity. The main concern is variability in cash coverage of debt (strong in 2021 and 2023–2024, but notably lower in 2022 and sharply lower in 2025), which suggests periodic pressure from leverage, timing, or financing structure despite solid cash production.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	774.63M	703.24M	647.51M	624.81M	569.54M
Gross Profit	503.53M	476.15M	452.27M	462.20M	428.34M
EBITDA	456.83M	412.61M	311.81M	216.89M	166.21M
Net Income	155.61M	126.71M	13.76M	-77.61M	-113.26M
Balance Sheet
Total Assets	5.49B	5.30B	5.39B	5.75B	5.97B
Cash, Cash Equivalents and Short-Term Investments	71.54M	60.47M	41.28M	49.31M	112.00M
Total Debt	2.55B	2.44B	2.45B	2.55B	2.44B
Total Liabilities	2.67B	2.56B	2.58B	2.69B	2.59B
Stockholders Equity	2.82B	2.74B	2.80B	3.06B	3.38B
Cash Flow
Free Cash Flow	348.61M	310.54M	300.57M	315.73M	322.78M
Operating Cash Flow	348.61M	310.54M	300.57M	315.73M	356.39M
Investing Cash Flow	-377.96M	-109.00M	103.13M	-216.25M	-336.20M
Financing Cash Flow	40.76M	-181.56M	-410.30M	-161.71M	30.14M

Sabra Healthcare REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 20.55 is above the 20-day moving average (MA) of 19.55, above the 50-day MA of 19.05, and above the 200-day MA of 18.10, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 64.93 is Neutral, neither overbought nor oversold. The STOCH value of 81.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBRA.

Sabra Healthcare REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OHI	74 Outperform	$14.27B	24.89	11.79%	6.11%	13.50%	31.56%
SBRA	70 Outperform	$5.18B	32.29	5.59%	6.47%	8.12%	75.95%
NHI	70 Outperform	$4.07B	27.86	9.85%	4.73%	8.04%	9.20%
LTC	69 Neutral	$1.92B	15.75	11.52%	6.70%	11.89%	-68.41%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DHC	54 Neutral	$1.64B	-5.68	-15.78%	0.80%	4.10%	8.96%

Sabra Healthcare REIT Corporate Events

Sabra Healthcare REIT Issues 2026 Outlook and Dividend

Sabra Health Care REIT reported fourth-quarter 2025 net income of $0.11 per diluted share and normalized AFFO of $0.38, alongside strong EBITDARM coverage across its skilled nursing, senior housing and behavioral health portfolios. Same-property managed senior housing cash NOI rose 12.6% year over year in the quarter and averaged 15.0% growth for 2025, highlighting continued operational momentum.

During the quarter, the company invested $150.5 million in four managed senior housing assets, bringing 2025 investment activity to roughly $450 million, while disposing of seven skilled nursing facilities for $51.0 million and ending the year with Net Debt to Adjusted EBITDA of 5.0x. Sabra also closed two more senior housing acquisitions for $27.0 million after year-end, secured $240 million of additional primarily senior housing and some skilled nursing investments expected to close in early 2026, maintained liquidity of about $1.2 billion and declared a $0.30 quarterly dividend on February 2, 2026.

For 2026, Sabra introduced earnings guidance that implies mid-single-digit year-over-year growth in normalized FFO and AFFO per share, assuming low-single-digit NOI growth in its triple-net portfolio and low- to mid-teens NOI growth in same-store managed senior housing. Management signaled confidence in exceeding 2025 investment levels, supported by a robust pipeline and ongoing improvements in occupancy, margins and rent coverage across senior housing and skilled nursing, reinforcing the REIT’s strategic emphasis on expanding its managed senior housing platform.

The most recent analyst rating on (SBRA) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Sabra Healthcare REIT stock, see the SBRA Stock Forecast page.

Sabra Healthcare REIT Announces Executive Leadership Transition

Sabra Health Care REIT has executed a planned leadership transition at the turn of the year, with long-serving Chief Investment Officer, Treasurer and Executive Vice President Talya Nevo-Hacohen retiring on December 31, 2025 and remaining with the company in a consulting capacity. Effective January 1, 2026, the board appointed Darrin Smith, formerly Executive Vice President, Investments, as Chief Investment Officer, Secretary and Executive Vice President, and named Chief Financial Officer Michael Costa as Treasurer, moves that consolidate Sabra’s finance and investment leadership and signal continuity in its investment strategy. Smith’s three-year employment agreement, approved on December 31, 2025, sets his compensation, severance and change-in-control protections in line with senior executive norms and includes standard confidentiality and non-solicitation covenants, underscoring the company’s efforts to retain experienced leadership and maintain stability in its healthcare real estate portfolio operations.

The most recent analyst rating on (SBRA) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Sabra Healthcare REIT stock, see the SBRA Stock Forecast page.