Sabra Health Care REIT (SBRA) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $189.2M, up 7% year-over-year, with net income at $65.5M, driven by higher resident fees, asset sales, and gains on interest rate swaps.

• Transitioned 21 Holiday/senior housing assets to new operators, aiming for improved results and reduced operator concentration, with minimal disruption.

• Closed $122.3M in senior housing investments YTD, with $220M more awarded and targeting $500M in 2025; portfolio includes 359 properties and 36,553 beds/units.

• Redeemed $500M of 5.125% senior unsecured notes due 2026, funded by a new $500M term loan maturing 2030 at 4.64%, extending average debt maturity to nearly five years.

• Positioned for long-term value creation through a resilient balance sheet, operational expertise, and strategic partnerships, with a focus on sustainability and demographic trends.

Financial highlights

• Q2 2025 normalized FFO per share: $0.37–$0.44; normalized AFFO per share: $0.37–$0.38, up 6% year-over-year; FFO: $89.2M–$105.3M; AFFO: $89.2M–$91.6M.

• Q2 2025 total revenues: $189.2M (up from $176.1M in Q2 2024); net income: $65.5M (up from $24.0M); cash NOI from managed senior housing: $25.3M, up from $24.1M sequentially.

• Cash rental income from triple-net portfolio increased $2.3M sequentially; same store managed senior housing cash NOI up 17.1% year-over-year.

• Q2 same store senior housing revenue up 5.6% year-over-year; occupancy at 86% (up 140 bps); RevPOR up 3.9% year-over-year.

• Dividend payout: $0.30 per share for Q2 2025, representing a 79% payout of normalized AFFO.

Outlook and guidance

• 2025 guidance (diluted per share): Net income $0.77–$0.79, FFO $1.52–$1.54, normalized FFO $1.45–$1.47, AFFO $1.47–$1.49, normalized AFFO $1.49–$1.51; midpoint of normalized FFO and AFFO raised.

• Low single-digit cash NOI growth expected for triple-net; low to mid-teens for same store managed senior housing.

• Guidance assumes no further tenant revenue recognition changes, no additional acquisitions/dispositions, and is based on completed investments and capital markets activity as of June 30, 2025.

• General and administrative expenses projected at ~$50M, including $11M stock-based compensation; cash interest expense estimated at ~$102M.

• Weighted average share count ~241.5–242.5M.