Sabra's Senior Housing Cash Income Grows 14.6% As It Banks $425 Million In New Awards
The healthcare REIT reported $0.39 normalized FFO per share and set 2026 guidance of $1.540 to $1.550.
Sabra Health Care REIT, which owns healthcare properties and leases them to operators across the United States and Canada, said same-property senior housing cash income rose 14.6% from a year earlier in the third quarter. In an 8-K filed Monday, the company also said it has been awarded another $425 million of investments, and it set 2026 normalized FFO guidance at $1.540 to $1.550 per share.
The quarter and the outlook
Normalized FFO, the REIT's core earnings measure, came to $0.39 per diluted share, up from $0.36 a year earlier. Net income was $0.11 per share, against $0.09. Total revenue was $249.6 million, compared with $190.0 million in the third quarter of 2025.
Full-year guidance puts normalized AFFO, an adjusted cash-earnings measure, at $1.600 to $1.610 per share and net income at $0.265 to $0.275. CEO and Chair Rick Matros said the company "increased our guidance at the midpoint." The outlook assumes same-store senior housing operating growth in cash income in the mid-teens for the full year.
The board declared a quarterly dividend of $0.30 per share, payable November 30 to holders of record on November 13.
Buying its way into senior housing
Sabra closed on seven senior housing operating communities for $222.8 million in the third quarter at an estimated 7.7% yield. Investments closed so far this year total $747.2 million at an estimated 8.0% yield.
The new $425 million in awards carries an estimated 7.0% yield. About $385 million is senior housing operating, $25 million is skilled nursing and $15 million is preferred equity. Sabra expects to fund them, if completed, from available liquidity, including proceeds from forward sales under its at-the-market stock program.
Matros said he expects senior housing operating to be around 40% of the portfolio on a run-rate basis by the end of 2026 and 50% by the end of 2027. On October 1, Sabra moved 26 properties formerly leased to Avamere to Cascadia Healthcare (22) and the Ensign Group (4), lifting annualized cash rent on them to $53 million from $48 million.
Leverage and liquidity
Net debt to adjusted EBITDA stood at 4.54x at September 30. Sabra reported about $1.2 billion of liquidity, including $873.5 million available on its revolving credit facility and $36.2 million of cash.
As of December 31, 2025, the company held 360 properties and 13 loans receivable. At September 30 it held 364 properties and 11 loans.
Sabra holds its third-quarter conference call Tuesday, November 3, at 10:00 a.m. Pacific.
Sources
- 8-K Filing — Sabra Health Care REIT, Inc. (SBRA) — SEC EDGAR
- Exhibit sbraex9912026q3.htm — Sabra Health Care REIT, Inc. 8-K exhibit — SEC EDGAR
- Exhibit sbraex9922026q3-final.htm — Sabra Health Care REIT, Inc. 8-K exhibit — SEC EDGAR
- Exhibit sbraex9932026q3.htm — Sabra Health Care REIT, Inc. 8-K exhibit — SEC EDGAR
- Exhibit sbraex9942026q3_final.htm — Sabra Health Care REIT, Inc. 8-K exhibit — SEC EDGAR
- Sabra Reports Third Quarter 2026 Results; Updates 2026 Guidance – Company Announcement - FT.com — Financial Times
