Sabra Health Care REIT, Inc.

Sabra Health Care REIT, Inc. (Nasdaq: SBRA) owns healthcare properties, including skilled nursing facilities and senior housing communities in the United States and Canada. Tenants pay rent on leased properties. In its senior housing operating portfolio, third-party managers operate communities that earn resident fees and incur property expenses.

Third-quarter 2026 results

The table compares July through September 2026 with the same period in 2025. Amounts are USD millions, except per-share figures. Net income and per-share earnings are attributable to Sabra.

AFFO adjusts reported earnings for property depreciation, real estate sale gains or losses and specified other items. Normalized AFFO also removes items Sabra considers unrepresentative of ongoing results.

A $10.2 million deferred rent receipt accounted for about 57% of the quarter's increase in rental revenue. Total AFFO was $116.6 million; normalized AFFO was $107.2 million after a net $9.4 million adjustment that includes the rent receipt and other offsets. The share count used for AFFO rose to 260.8 million from 244.5 million.

Earlier outlook versus the November update

These fiscal 2026 forecasts are per diluted common share. The August release reiterated the July 21 outlook. The November forecast includes only investment and capital-market transactions already completed.

The AFFO midpoint rose four cents, while the normalized midpoint increased half a cent. Higher expected depreciation and lower expected real estate sale gains help explain the lower GAAP forecast.

Senior housing and completed portfolio changes

Cash operating income at 69 comparable senior housing properties rose 14.6% to $29.4 million. Occupancy increased to 89.2% from 87.5%, and the cash operating margin rose to 34.9% from 33.3%. These comparisons use Sabra's pro rata share and constant exchange rates.

Sabra acquired seven operating senior housing communities for approximately $222.8 million in Q3; those purchases were already announced in August. On October 1, it completed the transition of 26 former Avamere properties: 22 to Cascadia Healthcare subsidiaries and four to Ensign Group subsidiaries. Annualized cash rent increased to $53 million from $48 million.

The awarded investment pipeline stood at approximately $425 million on November 2, mostly senior housing. Those prospective transactions are at the letter-of-intent stage or later. Sabra aims for operating senior housing to contribute about 40% of property income after operating expenses on a year-end 2026 run-rate basis and 50% by the end of 2027.

Cash, debt and credit history

Operating cash flow for the nine months ended September 30 was $313.2 million, compared with $261.2 million a year earlier. Additions to real estate were $41.1 million, versus $24.2 million, separate from acquisition spending. Common dividends paid during those nine months totaled $228.0 million.

At September 30, debt principal was $2.455 billion and cash and equivalents were $36.2 million. The June balances were $2.646 billion and $231.6 million. September liquidity also included $873.5 million of available revolver borrowing and $292.5 million of potential proceeds from outstanding forward share sales.

In June, Sabra accepted $200 million in full settlement of its $300 million Recovery Centers of America mortgage loan and wrote off $100 million.

The quarterly dividend declared November 2 is $0.30 per share, payable November 30 to holders of record November 13.