Sabra Health Care REIT (SBRA) Q4 2024 earnings summary

Executive summary

• Delivered another strong quarter and full-year results, with portfolio strengthening in senior housing and skilled nursing, and a focus on long-term value creation through industry expertise and operator alignment.

• Management promotions and leadership depth support stability, while ESG initiatives are integrated into business strategy.

• Strategic focus remains on increasing SHOP exposure, disciplined capital allocation, and leveraging favorable demographic trends.

• Portfolio strategy targets skilled nursing, senior housing, behavioral health, and needs-based care, with a mission-driven approach.

• Closed acquisition of a managed senior housing community for $24 million and disposed of 10 facilities for $56.5 million in Q4 2024.

Financial highlights

• Q4 2024 normalized FFO per share was $0.35–$0.36 and normalized AFFO per share was $0.36; full-year normalized FFO per share was $1.39 and normalized AFFO per share was $1.44, representing over 7% year-over-year growth.

• Q4 2024 total revenues were $182.3 million, up from $163.4 million in Q4 2023.

• SHOP cash NOI grew 17.9% year-over-year; U.S. communities up 15.2%, Canadian up 26.9%.

• Net debt-to-adjusted EBITDA ratio improved to 5.27x at year-end 2024.

• Liquidity at year-end was approximately $980 million, including $60.5 million cash and $893.4 million available under the revolver.

Outlook and guidance

• 2025 guidance: Net income per diluted share $0.67–$0.70; FFO $1.42–$1.45; normalized FFO $1.43–$1.46; AFFO $1.47–$1.50; normalized AFFO $1.48–$1.51.

• At midpoint, normalized FFO and AFFO per share expected to increase ~4% over 2024.

• Guidance assumes no 2025 investment, disposition, or capital markets activity.

• Triple-net portfolio cash NOI growth expected in low single digits; SHOP same-store cash NOI growth expected in low to mid-teens, with higher growth in H1 than H2.

• G&A expenses expected at ~$50 million, including $11 million stock-based compensation.