Sabra Health Care REIT (SBRA) Q3 2025 earnings summary

Executive summary

• SHOP portfolio now represents 26% of total NOI, with a target to reach 40% as part of a strategic shift toward managed senior housing and away from skilled nursing.

• Portfolio consisted of 363–397 real estate properties, 14 loans receivable, 4 preferred equity investments, and 2 unconsolidated joint ventures as of September 30, 2025, with continued focus on diversification and capital recycling.

• Acquired seven Senior Housing-Managed communities and 24 units for $283.1 million, and operations of four communities for $19.7 million; year-to-date managed senior housing investments surpassed $421.9 million.

• Focus on quality care, deep industry experience, sustainability, diversity, and operator partnerships to enhance portfolio performance and community impact.

• Moody’s upgraded credit rating to Baa3, with all three agencies now rating at investment grade.

Financial highlights

• Q3 2025 net income attributable to stockholders was $22.5 million, down from $29.8 million in Q3 2024; nine-month net income was $128.4 million, up from $80.0 million year-over-year.

• Q3 2025 total revenues were $190.0 million, up from $178.0 million in Q3 2024; nine-month revenues were $562.7 million, up from $520.9 million year-over-year.

• Q3 2025 FFO per diluted share was $0.33; Normalized FFO $0.36; AFFO $0.37; Normalized AFFO $0.38.

• Normalized AFFO midpoint for 2025 guidance implies 4% year-over-year growth.

• Dividend declared at $0.30 per share, representing a 79% payout of normalized AFFO per share.

Outlook and guidance

• 2025 guidance midpoints: net income per diluted share $0.655–$0.665; FFO $1.465–$1.475; Normalized FFO $1.455–$1.465; AFFO $1.455–$1.465; Normalized AFFO $1.495–$1.505.

• Full-year average same-store cash NOI growth for managed senior housing expected in the mid-teens; triple-net portfolio cash NOI growth expected in low single digits.

• General and administrative expense projected at $50 million, including $11 million in stock-based compensation.

• Cash interest expense for 2025 expected to be approximately $104 million; weighted average share count for 2025 guidance is about 245 million.

• Sufficient liquidity for short- and long-term needs, with $1.1 billion in liquidity as of September 30, 2025.