Sabra Health Care REIT (SBRA) Q2 2026 earnings summary

Executive summary

• Closed $599 million in senior housing and skilled nursing investments year-to-date, with a robust pipeline exceeding $1 billion, primarily in managed senior housing, and a focus on quality care, operational expertise, and portfolio diversification.

• Managed Senior Housing portfolio saw sequential revenue growth of 9.6% and cash NOI growth of 14.4%, with margin expansion of 130 basis points; same property managed senior housing Cash NOI increased 13.7% year-over-year.

• Portfolio expanded to 395 investments as of June 30, 2026, with significant acquisitions and select asset sales, and a 7-year weighted average remaining lease term.

• Net loss attributable to shareholders was $25.2 million for Q2 2026, with normalized FFO of $0.38 and normalized AFFO of $0.40 per share.

• Emphasis on sustainability, technology adoption, and diversity to enhance operational efficiency and stakeholder value.

Financial highlights

• Total revenues for Q2 2026 were $235.9 million, up from $189.2 million in Q2 2025; normalized FFO for Q2 2026 was $98.2 million ($0.38 per share), and normalized AFFO was $103.5 million ($0.40 per share).

• Cash NOI from managed senior housing was $44.6 million, up from $39 million last quarter; total cash NOI for the quarter was $144.3 million.

• Dividend of $0.30 per share declared for Q2 2026, with $151.3 million paid in dividends in the first half.

• Recorded a $102.4 million provision for loan losses, primarily related to the discounted payoff of the RCA Mortgage Loan.

• Interest expense increased to $29.8 million in Q2 2026 from $27.5 million in Q2 2025.

Outlook and guidance

• Reaffirmed 2026 guidance, projecting 7% year-over-year growth in normalized FFO per share and 8% in normalized AFFO per share, with low to mid-teens same-store SHOP NOI growth.

• Pipeline includes an additional $100 million in managed senior housing and skilled nursing investments expected to close by year-end, with an estimated initial cash yield of 7.7%.

• Management expects continued portfolio growth and diversification through acquisitions and select asset sales.

• General and administrative expenses expected at $61 million, including $13 million stock-based compensation.

• Sufficient liquidity is expected for the next twelve months, with $1.3 billion in liquidity as of June 30, 2026.