GET DAILY SIGNALSSabra Health Care REIT (SBRA) Delivers Q3 2026 Results with +14.6% Same-Property SHOP NOI Growth
Key Takeaways
- Sabra Health Care REIT reported third quarter 2026 net income of $0.11 per diluted share, with total revenues of $249.6 million, up sharply from $190.0 million a year earlier.
- Funds from operations (FFO), a key profitability measure for real estate investment trusts (REITs), came in at $0.40 per share, while Normalized FFO was $0.39 per share, in line with the consensus estimate of $0.39.
- Same-property Senior Housing Operating Portfolio (SHOP) cash net operating income (NOI) rose 14.6% year over year, underscoring strength in Sabra's core operating segment.
- The company raised its full-year 2026 guidance at the midpoint and closed seven SHOP communities for $222.8 million, bringing year-to-date investments to $747.2 million at an 8.0% yield.
- Leverage improved, with Net Debt to Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of 4.54x, and the board declared a quarterly dividend of $0.30 per share.
- For more information on Sabra's Major News, Today's Price Move, Price Targets, and Forecast, explore the dedicated pages for deeper insight into the stock.
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Earnings Context and Why It Matters
Sabra Health Care REIT (SBRA) is a healthcare-focused real estate investment trust that owns skilled nursing, transitional care, and senior housing properties across the United States and Canada. Its third quarter 2026 report matters because it captures how well the company is executing its multi-year pivot toward an operating senior housing model, a shift management has flagged as central to future earnings growth. Coming off a year of acquisitions and tenant transitions, investors are watching whether rising occupancy, resident revenue, and cash NOI can offset higher operating and interest costs. The quarter also provides a checkpoint on Sabra's balance sheet and liquidity as it funds a growing investment pipeline, making these results a key signal for both income-oriented and growth-focused shareholders. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
Sabra reported third quarter 2026 net income of $0.11 per diluted share, compared with $0.09 per diluted share in the prior-year period. Total revenues reached $249.6 million, up from $190.0 million a year earlier, driven largely by growth in resident fees and services within the Senior Housing Operating Portfolio (SHOP), the segment of communities Sabra operates through third-party property managers.
On the REIT's preferred profitability metrics, FFO was $0.40 per share and Adjusted FFO (AFFO), which further adjusts for recurring capital items, was $0.45 per share. Normalized FFO was $0.39 per share and Normalized AFFO was $0.41 per share. Normalized FFO of $0.39 matched the consensus analyst estimate, indicating results landed broadly in line with Street expectations.
Operating coverage remained healthy, with EBITDARM (earnings before interest, taxes, depreciation, amortization, rent, and management fees) coverage of 2.52x for skilled nursing and transitional care, 1.58x for leased senior housing, and 3.91x for specialty hospitals and other facilities. Same-property SHOP cash NOI climbed 14.6% year over year.
Market Reaction and Investor Sentiment
Investor sentiment heading into Sabra's third quarter 2026 report had been cautiously constructive, with analysts focused on SHOP operating momentum and the company's investment activity. The results delivered several positive signals: same-property cash NOI growth in the mid-teens, improved rent coverage across the triple-net portfolio, lower leverage, and guidance raised at the midpoint. Management also highlighted $425 million in newly awarded investments and a completed Avamere tenant transition that lifted annualized cash rent to $53 million from $48 million. These factors suggest the market's read of the quarter will center on execution rather than headline net income, which remains modest relative to the non-GAAP measures REIT investors typically emphasize. From what I see, this execution focus is what sets the tone for how shares may respond.
Forward Outlook and Key Factors to Monitor
Sabra updated its full-year 2026 guidance, now expecting Net Income of $0.265 to $0.275 per diluted share, Normalized FFO of $1.540 to $1.550, and Normalized AFFO of $1.600 to $1.610. The raised midpoint reflects management's confidence in current operating trends and recent investment activity.
Looking ahead, investors should monitor how quickly Sabra converts its awarded investment pipeline of roughly $425 million into closed transactions, and whether those acquisitions continue to arrive at yields near the 7.0% to 8.0% range. Management has signaled that SHOP concentration could reach about 40% of the portfolio by the end of 2026 and 50% by the end of 2027, so the pace and profitability of that transition will be a central theme. I’m watching this closely as the shift unfolds.
Other factors worth tracking include same-property SHOP occupancy and cash NOI trends, labor and operating cost pressures, tenant rent coverage across the skilled nursing portfolio, and interest expense as Sabra funds growth. Leverage and liquidity will also remain in focus, with Net Debt to Adjusted EBITDA at 4.54x and roughly $1.2 billion of available liquidity as of quarter end.
Using Tickeron’s AI Screener for REIT Analysis
In my own research process, Tickeron’s AI Screener has become a go-to resource for quickly filtering healthcare REITs and similar names by fundamentals, technical patterns, and AI signals. It helps surface comparable opportunities and benchmark performance without spending hours on manual screens, which is especially useful when evaluating a name like Sabra alongside peers in the sector.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
SBRA's RSI Indicator ascending out of oversold territory
The RSI Indicator for SBRA moved out of oversold territory on October 12, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 22 similar instances when the indicator left oversold territory. In 17 of the 22 cases the stock moved higher. This puts the odds of a move higher at 77%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 29, 2026. You may want to consider a long position or call options on SBRA as a result. In 67 of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 74%.
The Moving Average Convergence Divergence (MACD) for SBRA just turned positive on October 14, 2026. Looking at past instances where SBRA's MACD turned positive, the stock continued to rise in 30 of 45 cases over the following month. The odds of a continued upward trend are 67%.
Following a +3.51% 3-day Advance, the price is estimated to grow further. Considering data from situations where SBRA advanced for three days, in 209 of 325 cases, the price rose further within the following month. The odds of a continued upward trend are 64%.
SBRA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SBRA declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 53%.
The Aroon Indicator for SBRA entered a downward trend on October 19, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 2 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 14 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 58, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 51 (best 1 - 100 worst), indicating steady price growth. SBRA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 84 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.831) is normal, around the industry mean (3.125). P/E Ratio (75.846) is within average values for comparable stocks, (28.561). Projected Growth (PEG Ratio) (0.280) is also within normal values, averaging (1.649). Dividend Yield (0.061) settles around the average of (0.049) among similar stocks. P/S Ratio (5.889) is also within normal values, averaging (6.013).
The Tickeron SMR rating for this company is 88 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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a real estate investment trust
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