Sabra Updates 2026 Guidance After SHOP Cash NOI Growth

The Tip Desk · November 3, 2026 · 3 min read

Same-property SHOP Cash NOI rose 14.6% year over year as the healthcare REIT set full-year Normalized FFO at $1.540 to $1.550 a share.

Sabra Health Care REIT (SBRA) updated its 2026 earnings guidance after same-property senior housing operating portfolio Cash NOI growth accelerated to 14.6% in the third quarter, from 13.7% in the second quarter.

The healthcare REIT now expects full-year Normalized FFO of $1.540 to $1.550 a share, AFFO of $1.625 to $1.635, and Normalized AFFO of $1.600 to $1.610. Net income guidance is $0.265 to $0.275 a share and FFO is $1.145 to $1.155. The company said the ranges assume average full-year same-store SHOP Cash NOI growth in the mid-teens and low-single-digit Cash NOI growth for the triple-net portfolio at the midpoint.

GAAP results swung back to a profit. Net income attributable to Sabra was $28.6 million, or $0.11 a share, for the three months ended September 30, 2026, versus a net loss of $0.10 a share in the second quarter. FFO was $0.40 a share, versus $0.33 a year earlier. Normalized FFO was $0.39 a share, up from $0.38 in the second quarter. Normalized AFFO was $0.41.

Total revenues were $249.6 million, up from $190.0 million a year earlier. Resident fees and services, the SHOP-related line, rose to $143.2 million from $92.0 million. Rental and related revenues were $103.2 million.

Investment activity remained the quarter’s other operating thread. Sabra closed seven SHOP communities for $222.8 million at an estimated 7.7% yield. Investments closed year to date totaled $747.2 million at an estimated 8.0% yield. Awarded investments rose to $425 million, of which about $385 million is SHOP, $25 million is skilled nursing and $15 million is preferred equity, at an estimated 7.0% yield. The company said it expects to fund those awards, if consummated, with available liquidity, including proceeds from outstanding forward sales under its ATM program. Closed and awarded SHOP investments are expected to generate unlevered IRRs in the low-teens.

On October 1, Sabra completed the previously announced transition of 26 properties formerly leased to Avamere, with 22 going to Cascadia Healthcare subsidiaries and four to Ensign Group subsidiaries. Annualized cash rent on those properties increased to $53 million from $48 million after the second-quarter Avamere rent reset.

EBITDARM coverage for skilled nursing/transitional care rose to 2.52x from 2.49x in the second quarter. Senior housing leased coverage was 1.58x. Specialty hospitals and other coverage was 3.91x.

Net Debt to Adjusted EBITDA declined to 4.54x as of September 30, 2026, from 4.61x at June 30. Liquidity was about $1.2 billion, consisting of $36.2 million of unrestricted cash, $873.5 million available on the revolving credit facility and $292.5 million related to ATM forward-sale shares, plus $332.7 million available under the ATM program. During the third quarter Sabra used the ATM forward feature for up to 0.1 million shares at an initial weighted average price of $19.94. Fifteen million shares remained under forward sale agreements at $19.53 as of September 30.

Chief Executive and Chair Rick Matros said same-store SHOP Cash NOI margins and REVPOR growth were among the best in the space, that SHOP concentration is expected to be around 40% on a run-rate basis by year-end 2026 and 50% by the end of 2027, and that the company continues to evaluate the skilled nursing portfolio for optimization.

The portfolio as of September 30 included 364 properties held for investment: 207 skilled nursing/transitional care facilities, 32 senior housing leased communities, 24 specialty hospitals and other facilities and 101 SHOP communities, totaling 37,513 beds and units. The board declared a $0.30 a share quarterly cash dividend, payable November 30.