Sabra Healthcare REIT Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.98%.
Did SBRA Beat Earnings? Q4 2025 Results
Sabra Health Care REIT delivered a mixed fourth quarter for 2025, posting a GAAP earnings miss but a meaningful revenue beat as its expanding managed senior housing portfolio reshaped the income statement in competing directions. The company earned $0.11 per diluted share, falling short of the $0.17 consensus estimate by 35.29%, weighed down by a $9.06 million net loss on real estate sales that contrasted with a $6.06 million gain in the year-ago period, along with higher depreciation tied to portfolio growth. Revenue climbed to $211.90 million, beating the $188.73 million consensus by 12.28% and rising 16.2% year over year, fueled by surging resident fees from the managed senior housing build-out. On the non-GAAP side, Normalized FFO held firmer at $0.36 per share, while same-property managed senior housing Cash NOI grew 12.6% in the quarter. Looking ahead, Sabra initiated 2026 guidance for Normalized FFO of $1.49 to $1.53 per share and expects to exceed its 2025 investment volume of roughly $450 million, with $240 million in awarded deals largely expected to close in early 2026.
- Same property managed senior housing Cash NOI increased 12.6% YoY in Q4 2025, with 2025 quarterly YoY average increase of 15.0%
- Managed senior housing consolidated occupancy improved to 84.8% in Q4 2025 from 83.5% in Q4 2024
- Managed senior housing Cash NOI margin expanded to 29.2% from 27.5% year over year
- Skilled Nursing/Transitional Care EBITDARM Coverage improved to 2.38x from 2.19x year over year
- Senior Housing - Leased EBITDARM Coverage improved to 1.52x from 1.41x year over year
- Behavioral Health, Specialty Hospitals and Other EBITDARM Coverage improved to 3.99x from 3.77x year over year
- Skilled Nursing/Transitional Care occupancy improved to 83.4% from 81.7% year over year
“We are pleased to introduce 2026 Normalized FFO and Normalized AFFO guidance at 4.9% and 5.4% year over year growth at the midpoint, respectively, building on a successful 2025. Our investment pipeline remains robust, and 2026 has gotten off to a strong start with $240 million of awarded investments, much of which should close in Q1 and early Q2. Given the promising start to the year, we expect to exceed 2025's investment total and anticipate making skilled nursing investments in addition to our strategic focus on growing our managed senior housing portfolio. Sabra's operational results continue to trend positively, as we have seen over the last year plus. Managed senior housing occupancy and margins continue to increase, triple-net senior housing remains stable with strong rent coverage and occupancy, and our skilled nursing portfolio's upward trajectory in occupancy and rent coverage continues. Additionally, our top ten tenants had another strong showing. We are excited about the prospects for 2026.”
Sabra Health Care REIT CEO, on the earnings call
Forward Guidance & Outlook
Sabra initiated 2026 full-year guidance: Net Income $0.60-$0.64 per diluted share; FFO and Normalized FFO $1.49-$1.53 per diluted share; AFFO and Normalized AFFO $1.55-$1.59 per diluted share, representing approximately 4.9% and 5.4% year-over-year growth at the midpoint for Normalized FFO and Normalized AFFO, respectively. Assumptions include low-single-digit Cash NOI growth for the triple-net portfolio, low-to-mid-teens Cash NOI growth for same-store Senior Housing - Managed, G&A expenses of $52 million at midpoint, cash interest expense of $103 million at midpoint, and weighted average diluted share counts of 255-256 million. The company has $240 million of awarded investments expected to close in Q1 and early Q2 2026 and expects to exceed 2025's total investment volume.
SBRA YoY Financials
SBRA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.