Sabra Healthcare REIT (SBRA) AI Stock Analysis

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Sabra Healthcare REIT

(NASDAQ:SBRA)

Select Model

Rating:66Neutral

Price Target:$22.00▲(8.11% Upside)

Action:reiterated

Date:11/04/26

SBRA scores highest on fundamentals and outlook: strong cash generation and a notably positive earnings call with raised guidance and improving portfolio metrics support the rating. The score is held back by weaker recent net profitability/ROE versus prior years and a demanding valuation (very high P/E) despite the attractive dividend yield; technicals are moderately constructive but not strongly bullish.

Positive Factors

Strong Cash GenerationRobust operating and free cash flow supports dividend capacity and gives Sabra internal funding for portfolio investment. Cash generation substantially exceeds reported earnings, strengthening financial resilience and providing flexibility to manage healthcare real estate assets through changing operating conditions.

Negative Factors

Recent Profitability CompressionThe sharp decline in recent net margin and return on equity shows that revenue growth is not translating into earnings as efficiently as in prior periods. If the weaker conversion persists, it could constrain retained capital, reduce financial flexibility, and make future growth more dependent on external funding.

Sabra Healthcare REIT (SBRA) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $5.20B
Dividend Yield: 5.90%
Average Volume (3M): 2.35M
Price to Earnings (P/E): 72.7
Beta (1Y): 0.10
Revenue Growth: 21.20%
EPS Growth: -61.51%
Country: US
Employees: 58
Sector: Real Estate
Sector Strength: 65
Industry: REIT - Healthcare Facilities

Sabra Healthcare REIT Business Overview & Revenue Model

Company Description

Sabra Health Care REIT, Inc. engages in the business of acquiring, financing, and owning real estate property. The company was founded on May 10, 2010 and is headquartered in Tustin, CA.

How the Company Makes Money

Sabra makes money primarily by owning healthcare real estate and generating contractual cash flows from third-party operators that lease or manage those properties. The company’s key revenue stream is rental income under long-term leases (typically s...

Sabra Healthcare REIT Earnings Call Summary

Earnings Call Date:Nov 01, 2026(Q3-2026)|% Change Since:3.19%|Next Earnings Date:Feb 22, 2027

Earnings Call SentimentPositive

The call was strongly positive, led by 8% year-over-year growth in normalized FFO and AFFO per share, a 14.6% increase in cash NOI, higher occupancy and RevPAR, substantial SHOP investment activity, improved leverage, strong liquidity, and raised earnings guidance. The principal challenges were higher operating expenses, lower interest income, senior housing cap-rate pressure, a $6.2 million write-off, and the absence of clear pricing power above 90% occupancy. Highlights significantly outweighed the lowlights.

Positive Updates

Strong Same-Store SHOP Margins and Operating Performance

Same-store SHOP cash NOI margins were 34.9%, described as best in class. RevPAR growth was strong, with solid cash NOI growth and occupancy increases.

Negative Updates

Higher Operating Expenses

Same-store SHOP expenses increased 4.7% year over year, driven primarily by repairs and maintenance, sales and marketing, and incentive management fees.

Company Guidance

Sabra increased the midpoint of its 2026 per share normalized FFO and normalized AFFO guidance by $0.005, representing year-over-year per share growth of 7% for normalized FFO and 8% for normalized AFFO, while Richard K. Matros described 7% to 8% year-over-year earnings growth at the midpoint of guidance this year; the SHOP same store NOI guide was moved up to the mid teens. Management expects SHOP exposure to reach 50% by year-end 2027, with senior housing expected to outweigh skilled nursing, and said the pipeline’s unlevered IRRs range in the low double digits to mid teens, with a total closing awarded pipeline Year 1 yield in the low 7s. Underwriting assumes occupancy up to the 92%, maybe 93.5% range, rate growth in the mid single digits, and current market cap rates for exits; incremental margin pull-through is expected to be minimum 50% at current occupancy and 70-plus percent at 92%, 93%. Avamere’s year-over-year NOI contribution is expected to be $5 million or a little higher than 5 million, and value-add investments are expected to have a 1- to 2-year stabilization timeline and roughly 9% stabilized yield.

Sabra Healthcare REIT Financial Statement Overview

Summary

Driven by strong and improving operating cash flow and free cash flow (TTM OCF ~$400.6M; TTM FCF ~$359.5M), supporting the REIT model and dividend capacity. Revenue has grown steadily, but profitability weakened in TTM versus 2024–2025 (net margin down to ~7.8% and ROE ~2.6%), and leverage remains meaningful (debt-to-equity ~0.86), limiting cushion if margins stay compressed.

Income Statement

63Positive

Balance Sheet

58Neutral

Cash Flow

74Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	919.09M	774.63M	703.24M	647.51M	624.81M	569.54M
Gross Profit	557.79M	503.53M	476.15M	452.27M	462.20M	428.34M
EBITDA	413.11M	456.83M	412.61M	311.81M	216.89M	166.21M
Net Income	71.51M	155.61M	126.71M	13.76M	-77.61M	-113.26M
Balance Sheet
Total Assets	5.43B	5.49B	5.30B	5.39B	5.75B	5.97B
Cash, Cash Equivalents and Short-Term Investments	36.24M	71.54M	60.47M	41.28M	49.31M	112.00M
Total Debt	2.44B	2.55B	2.44B	2.45B	2.55B	2.44B
Total Liabilities	2.59B	2.67B	2.56B	2.58B	2.69B	2.59B
Stockholders Equity	2.84B	2.82B	2.74B	2.80B	3.06B	3.38B
Cash Flow
Free Cash Flow	359.52M	348.61M	310.54M	300.57M	315.73M	322.78M
Operating Cash Flow	400.58M	348.61M	310.54M	300.57M	315.73M	356.39M
Investing Cash Flow	-306.98M	-377.96M	-109.00M	103.13M	-216.25M	-336.20M
Financing Cash Flow	-258.41M	40.76M	-181.56M	-410.30M	-161.71M	30.14M

Sabra Healthcare REIT Technical Analysis

Technical Analysis SentimentPositive

Last Price20.35

Price Trends

50DMA19.85Positive

100DMA19.90Positive

200DMA19.63Positive

Market Momentum

MACD0.05Negative

RSI61.46Neutral

STOCH84.92Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBRA, the sentiment is Positive. The current price of 20.35 is above the 20-day moving average (MA) of 19.36, above the 50-day MA of 19.85, and above the 200-day MA of 19.63, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 61.46 is Neutral, neither overbought nor oversold. The STOCH value of 84.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBRA.

Sabra Healthcare REIT Risk Analysis

Sabra Healthcare REIT disclosed 44 risk factors in its most recent earnings report. Sabra Healthcare REIT reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

1 New Risk

1.There have been no material changes in our assessment of our risk factors from those set forth in Part I, Item 1A of our 2025 Annual Report on Form 10-K.Q2, 2026

Sabra Healthcare REIT Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

SBRA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTRE	80Outperform	$8.54B	22.80	8.54%	4.10%	53.07%	32.48%
OHI	80Outperform	$14.24B	21.03	16.51%	5.66%	15.18%	72.69%
LTC	72Outperform	$2.43B	4.72	12.28%	4.98%	59.94%	49.34%
NHI	68Neutral	$3.36B	19.82	10.96%	5.38%	23.77%	10.04%
SBRA	66Neutral	$5.04B	72.68	2.55%	5.90%	21.20%	-61.51%
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DHC	45Neutral	$1.87B	-11.83	-9.51%	0.53%	-3.82%	56.90%

* Real Estate Sector Average

Performance Comparison

SBRA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SBRA	Sabra Healthcare Reit	20.35	3.22	18.78%
LTC	Ltc Properties	45.80	12.27	36.58%
NHI	National Health Investors	68.77	-3.74	-5.15%
OHI	Omega Healthcare Investors	47.53	6.31	15.32%
DHC	Diversified Healthcare Trust	7.55	3.32	78.44%
CTRE	CareTrust REIT	36.71	2.12	6.14%

Sabra Healthcare REIT Corporate Events

Business Operations and StrategyDividendsFinancial Disclosures

Sabra Reports Third-Quarter Results and Declares Quarterly Dividend

Positive

Nov 2, 2026

On November 2, 2026, Sabra reported third-quarter net income of $0.11 per diluted share, FFO of $0.40, normalized FFO of $0.39, AFFO of $0.45 and normalized AFFO of $0.41. Same-property SHOP cash NOI rose 14.6% year over year, while EBITDARM coverage...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 04, 2026

Sabra Healthcare REIT AI Stock Analysis