Sabra Health Care REIT (SBRA) Q4 2025 earnings summary

Executive summary

• SHOP portfolio NOI growth, excluding transition facilities, is expected to remain strong in 2026, with transition assets anticipated to further boost performance as they recover.

• Focus on quality care, deep industry experience, and partnering with skilled operators positions the company for long-term value creation in healthcare real estate.

• Corporate sustainability initiatives emphasize environmental stewardship, diversity, and governance, with 55% of workforce and 57% of management being women, and 34% of team members identifying as ethnic minorities.

• Q4 2025 net income per diluted share was $0.11, FFO $0.36, and AFFO $0.37 per share, with strong occupancy and margin improvements across senior housing and skilled nursing portfolios.

• 2025 investment activity reached $450 million, with a robust pipeline and $240 million in awarded deals expected to close in early 2026.

Financial highlights

• Q4 2025 normalized FFO per share was $0.36 and normalized AFFO per share was $0.38; in absolute terms, $91.2 million and $95.2 million, respectively.

• Q4 2025 total revenues were $211.9 million, up from $182.3 million in Q4 2024; full-year 2025 net income was $155.6 million, up from $126.7 million in 2024.

• Managed senior housing portfolio cash NOI grew $5.5 million sequentially, while triple-net portfolio cash NOI decreased $1.3 million due to asset transitions.

• Sequential revenue growth in the managed senior housing portfolio was 15.8%, with cash NOI up 18.4% and margin expansion of 60 basis points.

• Same-store managed senior housing revenue grew 6.4% year-over-year, with Canadian communities up 10%.

Outlook and guidance

• 2026 guidance: Net income per share $0.60–$0.64, FFO $1.49–$1.53, AFFO $1.55–$1.59; midpoint implies ~5% growth over 2025.

• Guidance assumes no uncompleted 2026 investments, dispositions, or capital markets activities.

• Triple-net portfolio cash NOI growth expected to be low single-digit, while same-store managed senior housing cash NOI growth is projected in the low-to-mid-teens.

• General and administrative expense expected at $52 million, including $12 million stock-based compensation; cash interest expense at $103 million.

• Management expects to exceed 2025’s investment total, with $240 million in awarded investments expected to close in early 2026.