Sabra Health Care REIT (SBRA) reported fourth‑quarter 2025 results on February 12 2026, posting net income of $27.2 million and diluted earnings of $0.11 per share. The company’s revenue of $211.9 million exceeded the consensus estimate of roughly $188 million, a beat of about $24 million. However, the reported EPS fell short of the $0.39 consensus by $0.28, marking a significant miss that reflects higher operating costs and a modest decline in operating income relative to revenue growth.
The earnings release highlighted continued strength in the company’s managed senior housing portfolio, where occupancy rates and operating margins improved year‑over‑year. The triple‑net skilled nursing segment maintained stable rent coverage, supporting the company’s cash‑flow profile. Segment‑level data show that managed senior housing contributed the largest share of revenue growth, driven by higher occupancy and modest rent increases, while the triple‑net portfolio’s stable performance helped offset any pressure on overall margins.
For 2026, Sabra provided normalized FFO and AFFO guidance of $1.55 to $1.59 per diluted share, representing year‑over‑year growth of 4.9% and 5.4% respectively. The per‑share guidance reflects management’s confidence in sustaining mid‑single‑digit growth, driven by expected low‑single‑digit NOI growth in the triple‑net portfolio and low‑to‑mid‑teens NOI growth in the same‑store managed senior housing segment.
Liquidity remains robust, with $1.2 billion in cash and available credit facilities. The company also announced $240 million in awarded investments expected to close in Q1 and early Q2 2026, and declared a quarterly cash dividend of $0.30 per share. These actions demonstrate a strong balance‑sheet position and a commitment to returning value to shareholders.
Comparing to prior periods, Q3 2025 diluted EPS was $0.09 and Q4 2024 EPS was $0.19, indicating a decline in earnings per share from the previous year but an improvement over the immediate prior quarter. Revenue grew from $190.04 million in Q3 2025 to $211.9 million in Q4 2025, a 11.5% increase, while the prior year’s Q4 revenue of $182.35 million was lower, underscoring the company’s accelerating top‑line growth.
The results underscore Sabra’s strategic shift toward managed senior housing, a segment that has delivered double‑digit NOI growth and higher margins. While the EPS miss signals headwinds such as higher operating costs and a modest margin squeeze, the revenue beat and strong guidance suggest that the company’s operational improvements and liquidity position will support continued growth. The company’s focus on expanding its managed senior housing platform, coupled with a solid cash position, positions it well to capitalize on the growing demand for senior housing services.
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