Sabra Health Care REIT Inc
NASDAQ:SBRA
Sabra Health Care REIT Inc
Sabra Health Care REIT Inc. emerged as a crucial player in the health care real estate sector, weaving its business model around the dynamic needs of senior living and specialized health facilities. Founded in 2010, Sabra was born from the idea of providing reliable financial support to health care operators by investing in their real estate. As a real estate investment trust (REIT), Sabra acquires, owns, and leases properties to operators of skilled nursing facilities, senior housing communities, and hospitals across the United States and Canada. The company derives its income primarily through lease payments from tenants, often structured as triple-net leases, where the operators bear responsibilities for property expenses such as maintenance, insurance, and taxes, ensuring Sabra receives steady, predictable cash flows.
Sabra's strategy involves building a diversified portfolio to mitigate risks, investing in a range of facility types, each catering to different demographics and health care needs. This strategic diversity is a testament to Sabra's understanding of the market's cyclical nature and its adaptability to regulatory changes in the health care environment. The management team at Sabra is seasoned and places significant emphasis on maintaining quality relationships with their operators, ensuring the facilities are not just functional but thrive in providing critical services. By effectively leveraging their real estate assets and adapting to industry trends, Sabra not only contributes to the health care ecosystem but also locks in long-term profitability avenues, all while navigating the complexities of a heavily regulated sector.
Sabra Health Care REIT Inc. emerged as a crucial player in the health care real estate sector, weaving its business model around the dynamic needs of senior living and specialized health facilities. Founded in 2010, Sabra was born from the idea of providing reliable financial support to health care operators by investing in their real estate. As a real estate investment trust (REIT), Sabra acquires, owns, and leases properties to operators of skilled nursing facilities, senior housing communities, and hospitals across the United States and Canada. The company derives its income primarily through lease payments from tenants, often structured as triple-net leases, where the operators bear responsibilities for property expenses such as maintenance, insurance, and taxes, ensuring Sabra receives steady, predictable cash flows.
Sabra's strategy involves building a diversified portfolio to mitigate risks, investing in a range of facility types, each catering to different demographics and health care needs. This strategic diversity is a testament to Sabra's understanding of the market's cyclical nature and its adaptability to regulatory changes in the health care environment. The management team at Sabra is seasoned and places significant emphasis on maintaining quality relationships with their operators, ensuring the facilities are not just functional but thrive in providing critical services. By effectively leveraging their real estate assets and adapting to industry trends, Sabra not only contributes to the health care ecosystem but also locks in long-term profitability avenues, all while navigating the complexities of a heavily regulated sector.
SHOP Portfolio Growth: Sabra's managed SHOP portfolio now makes up 26% of the total, surpassing its previous target. The company is setting a new goal to reach 40% SHOP exposure.
Strong Operating Performance: Same-store managed senior housing saw 13.3% YoY cash NOI growth, with occupancy and RevPAR both rising sequentially.
Investment Activity: Sabra will exceed the high end of its $500 million investment target for 2025, with over $550 million in closed and awarded deals.
Guidance Maintained: 2025 normalized FFO and AFFO per share guidance midpoints remain unchanged, as new investments will impact results more in 2026.
Balance Sheet Strength: Leverage improved to 4.96x net debt/EBITDA; Moody's upgraded Sabra’s credit rating to Baa3.
Dividend and Liquidity: Quarterly dividend of $0.30/share declared, with a payout ratio of 79% of normalized AFFO per share and available liquidity of $1.1 billion.
