Sabra Health Care REIT Inc.
SBRABusiness Overview
ticker: SBRA step: 01 generated: 2026-05-13 source: quick-research
Sabra Health Care REIT Inc. (SBRA) — Business Overview
Business Description
Sabra Health Care REIT is a self-administered, self-managed REIT that owns and invests in healthcare real estate across the United States and Canada. The company's portfolio of 364 properties includes skilled nursing/transitional care facilities, senior housing communities (both triple-net leased and managed), behavioral health facilities, and specialty hospitals. A key strategic shift is underway: Sabra is intentionally increasing its exposure to Senior Housing Operating Properties (SHOP) — managed senior housing where Sabra participates in operating upside — from approximately 20% to 30% of the portfolio by year-end 2026.
Revenue Model
Revenue comes from two primary sources: (1) triple-net lease rental income from skilled nursing and leased senior housing operators (predictable, fixed rent + escalators; tenant bears operating costs); and (2) SHOP revenue — Sabra receives the gross operating revenue of managed senior housing communities (minus property management fees), bearing both the upside and downside of occupancy and rate changes. The SHOP model is riskier but allows Sabra to capture the full value of occupancy and rate improvement in the senior housing recovery cycle.
Products & Services
- Skilled nursing/transitional care facility ownership (224 facilities — largest segment)
- Senior housing leased (39 communities, triple-net)
- Senior Housing Operating Properties — SHOP (69 managed communities)
- Behavioral health facility ownership (17 facilities)
- Specialty hospital and other healthcare real estate (15 facilities)
- Mortgage and other investments in healthcare operators
Customer Base & Go-to-Market
Skilled nursing operators (regional chains and private operators), senior living operators, behavioral health operators, and specialty hospital systems. Sabra's SHOP tenants are run by third-party professional property managers under management contracts. The company sources acquisitions through broker networks, direct relationships with healthcare operators, and sale-leaseback negotiations.
Competitive Position
Mid-sized healthcare REIT in a sector dominated by Welltower and Ventas. Sabra's differentiation is its focus on skilled nursing (a segment many REITs have reduced after COVID-era reimbursement pressures) and its growing SHOP platform as a vehicle for occupancy-led earnings recovery. Trading at approximately 12.7x 2026 FAD — below the ~20.6x average for SHOP-exposed healthcare REIT peers — suggests meaningful multiple expansion potential if the SHOP strategy executes.
Key Facts
- Founded: 2010
- Headquarters: Irvine, California
- Employees: ~30 (lean; REIT structure with third-party operators)
- Exchange: NASDAQ
- Sector / Industry: Real Estate / Healthcare REITs (Skilled Nursing & Senior Housing)
- Market Cap: ~$4–5B
Financial Snapshot
ticker: SBRA step: 04 generated: 2026-05-13 source: quick-research
Sabra Health Care REIT Inc. (SBRA) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $647M | $703M | $733M | +4.2% |
| Gross Margin | ~65% | ~67% | ~68% | |
| Operating Margin | ~30% | ~32% | ~35% | |
| Net Income | ~$50M | ~$80M | ~$100M | |
| Normalized AFFO/Share | ~$1.25 | ~$1.35 | $1.44 | +7.0% |
GAAP net income is depressed by depreciation. Normalized AFFO is the primary metric — growing 7% in FY2024. Normalized FFO/share grew 7% to $1.39 in FY2024. Last-12-month FFO (as of early 2026): $370.7M, up from $321.6M a year earlier (+15.3%).
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$350M |
| Normalized AFFO | ~$370M |
| Cash & Equivalents | ~$50M |
| Total Debt | ~$3.0B |
| Net Debt / EBITDA | ~6.5x |
Key Ratios (approximate)
- P/Normalized AFFO: ~12x | EV/EBITDA: ~16x | Dividend Yield: ~6.4%
- Revenue Growth (FY2024): +4.2% | Normalized AFFO/Share Growth: +7.0%
- SHOP Sequential Revenue Growth (Q4 2024): +15.8%; Cash NOI Growth: +18.4%
- Payout Ratio: ~80% (80% payout on $1.495 FY2025 AFFO guidance)
Growth Profile
Sabra has delivered consistent 4–8% revenue growth since 2022, driven by improving SNF occupancy post-COVID, senior housing rent escalations, and acquisitions. The SHOP segment is the primary growth accelerator: managed senior housing NOI grew 18.4% sequentially in Q4 2024 as occupancy approached 88% (target: low-90s). The strategic shift toward 30% SHOP exposure by end-2026 is designed to capture the senior housing occupancy recovery cycle — Sabra's earnings growth should accelerate as SHOP occupancy improves and the portfolio mix shifts toward higher-margin managed assets.
Forward Estimates
- FY2025 Normalized AFFO/share guidance: $1.495
- FY2026 Normalized FFO/AFFO guidance growth: +4.9–5.4% at midpoint
- SHOP occupancy target: low-90% range (from ~88%)
- Investment target: >$500M in acquisitions (exceeding initial $500M guidance in 2025)
- Analysts: Bullish consensus; 12.7x 2026 FAD (vs. peer average ~20.6x — significant discount)
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $SBRA.