Sabra Healthcare REIT (SBRA) AI Stock Analysis

• Market Cap: $4.70B
• Dividend Yield: 6.14%
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): 25.8
• Beta (1Y): 0.26
• Revenue Growth: 6.89%
• EPS Growth: 240.70%
• Country: US
• Employees: 50
• Sector: Real Estate
• Sector Strength: 49
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.27
• Shares Outstanding: 239,792,180
• 10 Day Avg. Volume: 2,655,319
• 30 Day Avg. Volume: 2,566,458
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 9.35
• Enterprise Value/Gross Profit: 13.60
• Enterprise Value/Ebitda: 14.41
• 1Y Price Target: $20.33
• Price Target Upside: 3.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: $21.00 ▲(7.42% Upside)

Sabra Healthcare REIT's overall stock score reflects strong financial performance and positive earnings call sentiment, supported by strategic corporate events. The stock's valuation and technical indicators suggest moderate growth potential, with a high dividend yield providing additional appeal.

Positive Factors

Acquisitions

SBRA announced an additional $114.5M in SHOP acquisitions at yields between 7.5-7.7% with a pipeline of $220M under LOI, indicating future growth potential.

Financial Performance

2Q25 normalized AFFO of $0.38 beat market expectations, indicating strong financial performance.

Revenue Growth

Medicaid increases are expected for SBRA's skilled nursing facilities, which could improve revenue.

Negative Factors

Acquisition Volume

The acquisition volume is viewed as slightly light compared to bullish expectations, which could be seen as a limitation.

Earnings

1Q25 Normalized FFO was below expectations.

Financial 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 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 properties to healthcare operators under long-term, triple-net leases. In this arrangement, the tenants are responsible for property expenses such as maintenance, taxes, and insurance, allowing Sabra to receive steady rental income with reduced operational responsibilities. Key revenue streams include rental income from its diversified portfolio of skilled nursing facilities, senior housing, and other healthcare properties. Additionally, Sabra may benefit from rent escalators and the potential for property appreciation over time. The company also engages in strategic partnerships with operators in the healthcare sector, which can enhance occupancy rates and improve financial performance. Factors contributing to its earnings include demographic trends driving demand for healthcare services, effective property management, and a focus on high-quality, well-located assets.

Sabra Healthcare REIT Financial Statement Overview

Summary

Sabra Healthcare REIT demonstrates strong revenue growth and improving profitability metrics. The balance sheet is stable with effective debt management, and cash flow is robust, supporting operational flexibility. However, historical profitability issues and high debt levels pose some risks.

Income Statement

Sabra Healthcare REIT has shown a strong revenue growth trajectory with a 13.29% increase from 2023 to 2024 and a 2.73% increase from 2024 to TTM. The gross profit margin remains solid, and the net profit margin has improved significantly from prior years. EBIT and EBITDA margins have also shown positive trends, indicating operational efficiency. However, the company faced challenges in profitability in earlier years, which slightly tempers the overall score.

Balance Sheet

The balance sheet of Sabra Healthcare REIT reflects a stable equity base with an equity ratio of 51.64% in TTM, indicating a strong capital structure. The debt-to-equity ratio has improved over recent periods, showcasing effective debt management. Return on equity has improved to 5.21% in TTM from earlier losses, enhancing shareholder value. Despite these strengths, the high level of total debt remains a potential risk factor.

Cash Flow

Cash flow statements reveal a robust free cash flow position, with consistent positive operating cash flow. The free cash flow to net income ratio is strong, reflecting efficient cash conversion. The operating cash flow to net income ratio is healthy, indicating strong cash-generating capabilities relative to reported earnings. There is positive free cash flow growth, suggesting solid cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	733.04M	703.24M	647.51M	624.81M	569.54M	598.57M
Gross Profit	503.68M	476.15M	269.18M	462.20M	428.34M	467.02M
EBITDA	475.39M	412.61M	311.81M	323.35M	166.21M	417.96M
Net Income	182.33M	126.71M	13.76M	-77.61M	-113.26M	138.42M
Balance Sheet
Total Assets	5.33B	5.30B	5.39B	5.75B	5.97B	5.99B
Cash, Cash Equivalents and Short-Term Investments	95.17M	60.47M	41.28M	49.31M	112.00M	59.08M
Total Debt	1.76B	2.44B	2.45B	2.70B	2.39B	2.37B
Total Liabilities	2.62B	2.56B	2.58B	2.69B	2.59B	2.58B
Stockholders Equity	2.71B	2.74B	2.80B	3.06B	3.38B	3.41B
Cash Flow
Free Cash Flow	338.84M	310.54M	300.57M	315.73M	322.78M	249.26M
Operating Cash Flow	338.84M	310.54M	300.57M	315.73M	356.39M	354.85M
Investing Cash Flow	-100.05M	-109.00M	103.13M	-216.25M	-336.20M	-136.45M
Financing Cash Flow	-179.44M	-181.56M	-410.30M	-161.71M	30.14M	-202.11M

Sabra Healthcare REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 19.55 is above the 20-day moving average (MA) of 18.38, above the 50-day MA of 18.18, and above the 200-day MA of 17.10, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 73.52 is Negative, neither overbought nor oversold. The STOCH value of 88.54 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
CTRE	80 Outperform	$7.61B	28.81	8.36%	3.63%	50.84%	104.44%
NHI	79 Outperform	$3.67B	24.68	10.49%	4.62%	6.87%	7.23%
OHI	76 Outperform	$12.50B	26.43	10.47%	6.34%	12.73%	23.51%
SBRA	74 Outperform	$4.70B	25.81	6.66%	6.14%	6.89%	240.70%
LTC	73 Outperform	$1.68B	20.03	8.94%	6.20%	8.18%	-16.83%
AHR	70 Neutral	$7.25B	―	-1.51%	2.35%	11.62%	―
Sector *	53 Neutral	$1.23B	2.93	-5.63%	5.65%	-3.91%	-97.46%

Sabra Healthcare REIT Corporate Events

Sabra Healthcare REIT Announces New Equity Distribution

On August 5, 2025, Sabra Health Care REIT, Inc. entered into a new equity distribution agreement with several financial institutions to issue and sell common stock shares, aiming to raise up to $750 million. This move replaces a prior agreement from February 2023, which was terminated on the same date, and is intended to support the company’s financial strategies, including debt repayment and potential future investments.

The most recent analyst rating on (SBRA) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Sabra Healthcare REIT stock, see the SBRA Stock Forecast page.

Sabra Healthcare REIT Updates 2025 Earnings Guidance

In the second quarter of 2025, Sabra Health Care REIT reported a net income of $0.27 per diluted share and announced several strategic investments, including a $53 million acquisition of a senior housing property. The company also transitioned 21 senior housing properties to new operators, aiming to enhance asset value. Sabra closed a $500 million unsecured term loan to refinance existing debt, reducing interest costs. The company updated its 2025 earnings guidance, reflecting positive trends in Medicare and Medicaid reimbursement rates, which are expected to support its skilled nursing portfolio. Sabra’s liquidity stood at $1.2 billion as of June 30, 2025, and the company declared a quarterly dividend of $0.30 per share.

The most recent analyst rating on (SBRA) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Sabra Healthcare REIT stock, see the SBRA Stock Forecast page.

Sabra Healthcare REIT Redeems Senior Notes and Optimizes Capital

On July 30, 2025, Sabra Health Care REIT, Inc. and its subsidiaries entered into a $500 million unsecured credit agreement with several financial institutions, with the potential to increase borrowings to $1 billion. The agreement includes interest rate swaps that fix the SOFR portion of the interest rate, resulting in an effective rate of 4.64% through 2030. Additionally, Sabra redeemed its 5.125% Senior Notes due 2026 on July 31, 2025, at a cash redemption price of 100.575% of the principal, plus accrued interest. These financial maneuvers are expected to optimize Sabra’s capital structure and potentially enhance its financial flexibility.

The most recent analyst rating on (SBRA) stock is a Hold with a $18.00 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 Senior Notes Redemption

On June 30, 2025, Sabra Health Care REIT, Inc. announced that its subsidiary, Sabra Health Care Limited Partnership, will redeem all $500 million of its outstanding 5.125% Senior Notes due 2026 on July 31, 2025. This redemption will be funded by issuing a $500 million term loan, and it will cease the accrual of interest on the Notes, impacting the company’s financial operations and potentially its market positioning.

The most recent analyst rating on (SBRA) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Sabra Healthcare REIT stock, see the SBRA Stock Forecast page.

Sabra Healthcare REIT Holds Annual Stockholders Meeting

On June 12, 2025, Sabra Healthcare REIT held its annual stockholders meeting where several key decisions were made. The stockholders elected seven directors to the board, ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor for 2025, and approved the executive compensation plan, reflecting continued confidence in the company’s leadership and strategic direction.

The most recent analyst rating on (SBRA) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Sabra Healthcare REIT stock, see the SBRA Stock Forecast page.