Sabra Healthcare REIT (SBRA)
NASDAQ:SBRA
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Sabra Healthcare REIT
(NASDAQ:SBRA)
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Rating:70Outperform
Price Target:
$22.50
â–²(13.41% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Sabra Healthcare REIT (SBRA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.00B
Dividend Yield6.47%
Average Volume (3M)2.85M
Price to Earnings (P/E)29.4
Beta (1Y)0.17
Revenue Growth8.12%
EPS Growth75.95%
CountryUS
Employees50
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.11
Shares Outstanding252,145,720
10 Day Avg. Volume2,829,141
30 Day Avg. Volume2,854,322
Financial Highlights & Ratios
PEG Ratio1.59
Price to Book (P/B)1.62
Price to Sales (P/S)5.90
P/FCF Ratio13.11
Enterprise Value/Market Cap1.50
Enterprise Value/Revenue9.66
Enterprise Value/Gross Profit14.86
Enterprise Value/Ebitda16.38
Forecast
1Y Price Target
$22.00Price Target Upside10.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)0.7
Revenue Forecast (FY)$844.30M
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) ...
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 ...
Sabra Healthcare REIT Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive operational and financial momentum: strong same-store and managed SHOP performance, robust investment activity with attractive initial yields, solid liquidity and conservative leverage metrics, and a mid-single-digit earnings growth guide for 2026. Notable headwinds include a sequential decline in triple-net cash NOI due to portfolio transitions, a one-time increase in G&A, decreased interest income versus prior quarter, lagging Holiday transition assets that create near-term catch-up risk, and continued competitive pressure and cap rate compression in the acquisition market. Management emphasized stable regulatory outlook and confidence in execution and infrastructure to scale SHOP operations.Positive Updates
Strong SHOP Operational Performance
Same-store managed senior housing revenue grew 6.4% year-over-year; same-store occupancy increased 160 basis points YoY to 87.9% (domestic 84.7% up 80 bps; Canada 94.2% up 300 bps). RevPOR rose 4.2% YoY (Canada +5.2%). Same-store cash NOI grew 12.6% YoY and XPOR increased 1.6% YoY.
Negative Updates
Triple Net Cash NOI Decline (Sequential)
Cash NOI from the triple net portfolio decreased $1.3 million sequentially from Q3 to Q4 2025, primarily due to transitioning four previously triple-net senior housing facilities into the managed portfolio.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong SHOP Operational Performance
Same-store managed senior housing revenue grew 6.4% year-over-year; same-store occupancy increased 160 basis points YoY to 87.9% (domestic 84.7% up 80 bps; Canada 94.2% up 300 bps). RevPOR rose 4.2% YoY (Canada +5.2%). Same-store cash NOI grew 12.6% YoY and XPOR increased 1.6% YoY.
Read all positive updates
Company Guidance
Sabra's 2026 guidance calls for net income of $0.60–$0.64 per share, FFO and normalized FFO of $1.49–$1.53, and AFFO and normalized AFFO of $1.55–$1.59 per share (midpoints imply ~5% normalized FFO/AFFO growth vs. 2025); it assumes no undisclosed 2026 dispositions or capital markets activity and no tenant revenue-recognition changes. Operational assumptions include triple‑net cash NOI growth at low single digits (midpoint, in line with contractual escalators) and average full‑year cash NOI growth for the same‑store managed senior housing portfolio in the low‑to‑mid teens. Expense and capital assumptions: G&A of ~ $52.0M at the midpoint (including $12.0M stock‑based comp), cash interest expense of ~$103.0M, and weighted average share counts of ~255.0M for normalized FFO and ~256.0M for normalized AFFO. Balance sheet and liquidity metrics cited: net debt/adjusted EBITDA 5.00x as of 12/31/2025 (down 0.27x YoY), cost of permanent debt 3.92%, weighted average remaining debt term 4.2 years, no permanent floating‑rate exposure, and ample liquidity of ~ $1.2B (cash $71.5M, revolver availability $782.4M, $322.7M outstanding under forwards) with $483.0M ATM capacity; the board also declared a $0.30 quarterly dividend (paid 2/27/2026), representing 79% of Q4 normalized AFFO per share.Sabra Healthcare REIT Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| 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
Positive
19.84
Price Trends
19.63
Positive
19.09
Positive
18.42
Positive
Market Momentum
0.03
Positive
45.34
Neutral
18.08
Positive
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 19.84 is below the 20-day moving average (MA) of 20.40, above the 50-day MA of 19.63, and above the 200-day MA of 18.42, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 45.34 is Neutral, neither overbought nor oversold. The STOCH value of 18.08 is Positive, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $13.22B | 22.25 | 11.83% | 6.11% | 13.50% | 31.56% | |
70 Outperform | $5.00B | 29.37 | 5.63% | 6.47% | 8.12% | 75.95% | |
70 Outperform | $4.03B | 25.18 | 9.63% | 4.73% | 8.04% | 9.20% | |
69 Neutral | $1.81B | 13.47 | 11.94% | 6.70% | 11.89% | -68.41% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
54 Neutral | $1.66B | -13.73 | -15.98% | 0.80% | 4.10% | 8.96% |
* Real Estate Sector Average
SBRA
Sabra Healthcare REIT
19.84
3.66
22.62%
LTC
LTC Properties
37.25
4.44
13.54%
NHI
National Health Investors
83.12
11.67
16.33%
OHI
Omega Healthcare
44.73
9.42
26.70%
DHC
Diversified Healthcare Trust
6.86
4.46
185.60%
Sabra Healthcare REIT Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Sabra Healthcare REIT Issues 2026 Outlook and Dividend
Positive
Feb 12, 2026
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 m...
Business Operations and StrategyExecutive/Board Changes
Sabra Healthcare REIT Announces Executive Leadership Transition
Positive
Jan 5, 2026
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...
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.