Sabra Health Care REIT (SBRA) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $40.3 million, up from $26.3 million in Q1 2024, with net income per diluted share rising to $0.17 from $0.11 year-over-year.

• Skilled nursing and TripleNet senior housing EBITDA coverage reached new highs at 2.19 and 1.41, with behavioral at 3.77, the highest since year-end 2023.

• Sequential improvements in occupancy and contract labor costs, with no operator concerns among top 10 relationships.

• The company leverages deep industry experience, a resilient balance sheet, and a diversified portfolio to thrive in the dynamic healthcare real estate market.

• ESG initiatives are integrated into business strategy, with a focus on sustainability, diversity, and stakeholder alignment.

Financial highlights

• Q1 2025 revenues were $183.5 million, up from $166.7 million year-over-year, with rental and related revenues at $96.0 million and resident fees at $77.4 million.

• FFO per diluted share was $0.36; Normalized FFO $0.35; AFFO and Normalized AFFO $0.37.

• FFO for Q1 2025 was $86.0 million; Normalized FFO $85.2 million; AFFO $88.2 million.

• Cash NOI from managed senior housing was $24.1 million, up from $19.1 million year-over-year; same store managed senior housing Cash NOI grew 16.9%.

• Interest and other income rose to $10.1 million from $8.9 million year-over-year.

Outlook and guidance

• 2025 full-year earnings guidance reiterated; current quarter results align with guidance assumptions.

• Over $200 million in senior housing acquisitions expected to close soon, with yields in the high 7% range.

• Low to mid-teens same-store cash NOI growth guidance for SHOP portfolio maintained.

• Awarded acquisitions are not yet included in guidance and will be incorporated after closing.

• Management expects continued portfolio growth and diversification through acquisitions and select asset sales.