Analysis SBRA
Sabra's rent revenue rose $18 million. One payment drove over half.
Occupancy at comparable senior housing properties improved to 89.2%. The normalized earnings forecast for 2026 rose at the low end, while the upper limit stayed unchanged.
Sabra Health Care REIT received a $10.2 million deferred rent payment in the third quarter from a tenant whose rent it had been recording when cash arrived. The receipt lifted rental and related revenue to $103.2 million, from $85.4 million a year earlier.
Research by Ticker Byline shows that this payment accounted for about 57% of the $17.8 million increase. That helps explain why the healthcare property owner's earnings measures are growing at different speeds.
What changes after the payment is removed
Sabra reported adjusted funds from operations, or AFFO, of $0.45 per share, up from $0.37. This earnings measure removes property depreciation and specified other items from reported profit.
Its normalized AFFO also removes the deferred rent receipt and makes other adjustments for items the company does not consider part of ongoing results. That measure rose to $0.41 per share from $0.38.
Using the reported per-share figures, the two growth rates are about 22% and 8%. The collection improved this quarter's earnings, while the normalized figure shows a smaller increase.
A smaller lift in the annual outlook
The midpoint of Sabra's 2026 AFFO forecast rose four cents per share from the outlook reiterated in August. The low end of its normalized AFFO range rose just one cent to $1.60; the $1.61 high end stayed the same.
Senior housing is growing too
At 69 comparable senior housing properties, cash operating income after property expenses rose 14.6% from a year earlier. Occupancy increased to 89.2% from 87.5%.
Those communities earn resident fees, while Sabra's leased properties generate rent. On October 1, after the quarter ended, the company completed a change of tenants at 26 properties formerly leased to Avamere. Their annualized cash rent increased to $53 million from $48 million.
The Sabra company profile follows the completed investments and tenant changes, the pending acquisition pipeline and the financial figures behind the updated outlook.