Q3 2025 Sabra Health Care REIT Inc Earnings Call Transcript
Key Points
- Sabra Health Care REIT Inc (SBRA) reported a solid cash NOI growth of 15.9%, excluding certain properties, and 13.3% including them.
- The company's SHOP portfolio has grown significantly, now representing approximately 26% of the total portfolio, with a new target set to increase it to 40%.
- Sabra Health Care REIT Inc (SBRA) exceeded the high end of its investment targets, with closed and awarded deals in 2025 totaling more than $550 million.
- The company's EBITDAR rent coverage increased across all asset classes, with SNF occupancy and skilled mix continuing to rise.
- Sabra Health Care REIT Inc (SBRA) maintained a strong balance sheet with leverage below 5 times and no floating rate debt exposure in its permanent capital stack.
- Cash rental income from the triple-net portfolio decreased by $3.5 million from the second quarter.
- The transition of four previously triple-net leased senior housing facilities resulted in a $9.2 million write-off of straight-line rent receivables and $1.2 million of lease termination expense.
- The company's guidance for 2025 remained unchanged despite strong core performance, as most investments are closing in the latter half of the year, limiting their impact on 2025 results.
- Occupancy in the Holiday assets within the same-store pool was lower, around 80%, compared to the overall same-store pool occupancy of 86%.
- The regulatory environment for skilled nursing remains stable, but there is a concern about cap rates tightening relative to the company's cost of capital.
Good day, everyone. My name is John, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sabra Health Care REIT third-quarter 2025 earnings call. (Operator Instructions)
I would now like to turn the call over to Lukas Hartwich, EVP Finance. Please go ahead, Mr. Hartwich.
Thank you, and good morning. Before we begin, I want to remind you that we will be making forward-looking statements in our comments and in response to your questions concerning our expectations regarding our future financial position and results of operations, including our earnings guidance for 2025 and our expectations regarding our tenants and operators and our expectations regarding our acquisition, disposition and investment plans. These forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially, including the risks listed in our Form 10-K for
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