Sabra Healthcare REIT Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did SBRA Beat Earnings? Q3 2025 Results
Sabra Health Care REIT delivered a mixed third quarter, with revenue edging past expectations while GAAP earnings fell well short of the consensus. The healthcare REIT posted revenue of $190.04 million, up 6.8% year-over-year and slightly ahead of the $188.64 million analysts had anticipated, but GAAP earnings per diluted share came in at $0.09, missing the $0.18 consensus by 49.07%, weighed down by a cluster of non-cash and one-time charges including a $9.24 million write-off of rental income receivables, a $4.43 million net loss on real estate sales, and a real estate impairment charge. Beneath the headline noise, the company's managed senior housing segment posted same-store Cash NOI growth of 13.3% year-over-year, reinforcing management's decision to raise its senior housing concentration target from 30% to 40% of total NOI. With year-to-date investments reaching $421.90 million and full-year deployment expected to exceed $500 million, Sabra guided for Normalized FFO of $1.46 to $1.47 per share for the full year.
- Same store managed senior housing Cash NOI increased 13.3% year-over-year (15.9% excluding 16 former Holiday properties)
- Skilled Nursing/Transitional Care EBITDARM coverage hit post-pandemic high of 2.35x
- Skilled nursing occupancy increased to 83.0% and skilled mix to 38.3%
- Senior Housing - Managed Cash NOI margin expanded to 28.3% from 26.5% a year ago
- Managed senior housing now represents approximately 26% of total NOI
- Resident fees and services grew to $92.0 million from $73.7 million year-over-year
“Sabra delivered another strong quarter. Same store managed senior housing NOI growth was solid even considering the transition of the properties formerly operated by Holiday, and importantly, the performance of that group of transition assets improved every month during the quarter. Managed senior housing is growing more quickly than anticipated as a percentage of total NOI, and is now roughly 26%. As a result, we are updating our managed senior housing target concentration from 30% to 40%. Additionally, we now expect that investments for the year will exceed the high end of our previous target, which was $500 million. For Sabra's triple net portfolio, EBITDARM rent coverage hit another post-pandemic high, with healthy coverage across our top ten tenants. Skilled nursing occupancy and skilled mix continue to increase. All in all, our portfolio's progress is exceeding internal expectations.”
Sabra Health Care REIT CEO, on the earnings call
Forward Guidance & Outlook
Sabra updated 2025 full-year guidance: Net Income $0.655-$0.665 per diluted share, FFO $1.465-$1.475, Normalized FFO $1.455-$1.465, AFFO $1.455-$1.465, and Normalized AFFO $1.495-$1.505. Guidance assumes low-single-digit Cash NOI growth for the triple-net portfolio, mid-teens same-store Cash NOI growth for managed senior housing, G&A of approximately $50 million (including $11 million stock-based compensation), cash interest expense of approximately $104 million, and weighted average share counts of approximately 244.7 million and 245.7 million for Normalized FFO and Normalized AFFO respectively. Management expects full-year investments to exceed the previous $500 million target. Approximately $120 million of additional senior housing investments have been awarded at nearly 8% initial cash yield. The managed senior housing target concentration has been raised from 30% to 40% of total NOI.
SBRA YoY Financials
SBRA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.