Sabra Healthcare REIT Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.07%.
Did SBRA Beat Earnings? Q2 2025 Results
Sabra Health Care REIT posted a decidedly strong second quarter, with GAAP earnings of $0.27 per diluted share beating the $0.17 consensus estimate by 58.82%, while revenue of $189.15 million edged past forecasts of $182.79 million and climbed 7.4% from a year ago. The outperformance was anchored by robust momentum in the company's managed senior housing portfolio, where same-store Cash NOI surged 17.1% year-over-year as margins expanded to 31.8% from 28.7%, reflecting stronger occupancy rates and revenue per occupied room growth to $4,326. A $17.20 million gain reclassified from terminated interest rate swaps and nearly $10 million in net real estate sale gains further bolstered the bottom line. On the capital side, Sabra closed a new $500 million term loan at an effective fixed rate of 4.64%, reducing refinancing risk while net debt-to-EBITDA improved to 5.00x. Looking ahead, management expects Normalized FFO of $1.45 to $1.47 per share for the full year, supported by low-to-mid teens same-store senior housing Cash NOI growth and roughly $220 million in additional investments in late-stage pipeline.
- Same store managed senior housing Cash NOI increased 17.1% year-over-year
- Skilled nursing EBITDARM coverage rose to 2.27x, up from 1.94x a year ago
- Senior housing leased EBITDARM coverage improved to 1.49x from 1.37x
- Skilled nursing occupancy improved to 82.6% from 80.3% year-over-year
- Resident fees and services grew to $78.985 million from $67.939 million in Q2 2024
- Same store Cash NOI margin expanded to 31.8% from 28.7% in Q2 2024
- Net Debt to Adjusted EBITDA improved to 5.00x
“Sabra had a very productive quarter, and investment opportunities remain plentiful. We have roughly $350 million in closed, in process of closing and awarded investments. These are all senior housing investments, and we are well on our way toward our initial goal of taking our managed senior housing exposure from 20% to 30% of the portfolio. We are seeing some interesting skilled nursing opportunities and hope to transact in that space this year. Rent coverage increased across all of our triple-net segments, and recently announced Medicare and Medicaid rates should be supportive to skilled nursing coverage, which is currently at a new high. We believe the transition of the Holiday portfolio will drive stronger performance and align ourselves with two trusted operators and a new relationship we have been cultivating, diversifying the management of our largest senior housing portfolio. Our leverage dropped to 5.0x net debt to adjusted EBITDA, and we will continue evaluating our leverage target as earnings grow. We have just released our 2024 Sustainability Report and are proud of the work the Sabra team and our operators have done to improve the lives of residents and patients and the work environment for caregivers and staff.”
Sabra Health Care REIT CEO, on the earnings call
Forward Guidance & Outlook
Sabra updated 2025 full-year guidance: Net Income $0.77–$0.79/share, FFO $1.52–$1.54/share, Normalized FFO $1.45–$1.47/share, AFFO $1.47–$1.49/share, Normalized AFFO $1.49–$1.51/share. Assumptions include low-single-digit Cash NOI growth for the triple-net portfolio, low-to-mid teens Cash NOI growth for same-store managed senior housing, G&A of ~$50 million (including $11M stock comp), cash interest expense of ~$102 million, and weighted average share counts of ~241.5M and ~242.5M for Normalized FFO and Normalized AFFO respectively. Approximately $220 million in additional senior housing investments are awarded and in LOI or later stages with expected initial cash yields in the high-7% range.
SBRA YoY Financials
SBRA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.