Shares of Sabra Well being Care REIT, Inc. (SBRA) rose 1.22% to $21.49 in Friday buying and selling following the discharge of its fourth-quarter and full-year 2025 outcomes. The inventory at the moment trades close to its 52-week excessive of $21.98, having recovered from a 52-week low of $13.41. The corporate launched 2026 steering and highlighted a file 12 months of development in its managed senior housing portfolio.
Firm Description
Sabra Well being Care REIT, Inc. is a self-administered, self-managed actual property funding belief that owns and invests in actual property serving the healthcare trade. The corporate’s portfolio primarily consists of expert nursing and transitional care amenities, senior housing communities (each leased and managed), and behavioral well being and specialty hospitals. As of December 31, 2025, Sabra’s funding portfolio included 376 properties throughout the USA and Canada.
Present Inventory Worth
$21.49 (Feb 13, 2026)
Market Capitalization
Roughly $5.42 billion (based mostly on 252.1 million shares excellent)
Valuation
Sabra trades at a ahead Worth-to-FFO (Funds From Operations) a number of of 15.1x based mostly on the midpoint of its 2026 steering. This a number of displays regular restoration in occupancy and stabilizing labor prices within the healthcare sector.
Fourth Quarter and Full-12 months 2025 Monetary Outcomes
Sabra reported operational beneficial properties for the fiscal 12 months ended December 31, 2025, supported by robust efficiency in its RIDEA-structured managed senior housing section.
- Quarterly Earnings: Internet earnings attributable to widespread stockholders was $26.3 million, or $0.11 per diluted share, for the fourth quarter.
- FFO and AFFO: Fourth-quarter Normalized FFO was $0.36 per share, whereas Adjusted FFO (AFFO) reached $0.37 per share.
- Full-12 months Efficiency: For the total 12 months 2025, Normalized FFO totaled $1.41 per share, up from $1.34 in 2024. Full-year AFFO was $1.44 per share.
- Section Progress: Identical-property managed senior housing Money Internet Working Revenue (NOI) elevated 12.6% year-over-year within the fourth quarter. The complete-year common enhance for this section was 15.0%.
- Funding Exercise: Sabra closed roughly $450 million in complete investments throughout 2025 at a median estimated preliminary money yield of seven.5% on property acquisitions.
Administration Outlook and 2026 Steering
The corporate launched monetary targets for the fiscal 12 months ending December 31, 2026:
- 2026 EPS Steering: Internet earnings is projected between $0.51 and $0.55 per share.
- 2026 FFO Steering: Normalized FFO is predicted to be $1.40 to $1.44 per share, whereas Normalized AFFO is projected at $1.43 to $1.47 per share.
- Asset Acquisitions: Within the fourth quarter, Sabra acquired 4 managed senior housing properties for $150.5 million at an estimated preliminary money yield of seven.0%.
- Portfolio Well being: EBITDARM protection for the Expert Nursing/Transitional Care portfolio was 2.38x at year-end.
Macro Pressures and Geographic Publicity
Sabra continues to handle sector-wide pressures associated to labor shortages and authorities reimbursement insurance policies.
- Labor and Inflation: Elevated labor prices and labor shortages stay a major threat issue for tenants and managed properties.
- Geopolitical/Tariff Publicity: Sabra operates within the U.S. and Canada, leaving it with minimal direct publicity to worldwide commerce tariffs. Nevertheless, it stays delicate to fluctuations within the Canadian greenback alternate charge.
- Capital Construction: As of December 31, 2025, the corporate maintained a Internet Debt to Adjusted EBITDA ratio of 5.45x, together with its share of three way partnership debt.
Sabra Well being Care REIT (SBRA) SWOT Evaluation
Strengths
- Report Managed Progress: 15.0% common quarterly year-over-year enhance in managed senior housing Money NOI throughout 2025.
- Diversified Portfolio: Funding throughout 376 properties in 5 asset courses, together with behavioral well being and specialty hospitals.
- Liquidity Place: Entry to a $1.0 billion revolving credit score facility for future acquisitions.
Weaknesses
- Authorities Payor Dependency: Important reliance on Medicare and Medicaid reimbursement for expert nursing amenities.
- Tenant Focus: Profitability is weak to the monetary well being of a concentrated group of healthcare operators.
- Curiosity Charge Sensitivity: Excessive degree of indebtedness makes the corporate delicate to will increase in market rates of interest.
Alternatives
- Growing older Demographics: Lengthy-term demand for healthcare actual property pushed by the growing senior inhabitants in North America.
- Enlargement in Behavioral Well being: Potential for higher-yield investments within the specialised behavioral well being sector.
- Funding Pipeline: Skill to leverage present liquidity to execute on its $450 million annual funding tempo.
Threats
- Regulatory Modifications: Potential for antagonistic legislative adjustments in healthcare regulation or tax legal guidelines affecting REITs.
- Macroeconomic Volatility: Uncertainty in international monetary markets and potential disruptions to capital entry.
- Environmental Dangers: Publicity to catastrophic climate occasions and local weather change impacts on property values.
