Sabra Health Care REIT (SBRA) Earnings Date & Reports

Key Takeaways

• Sabra Health Care REIT (SBRA) is scheduled to report second-quarter 2026 results after the market closes on Monday, August 3, 2026, followed by a conference call on August 4.
• Wall Street consensus estimates project net earnings of approximately $0.17 per share and revenue near $219.4 million for the quarter.
• Funds from operations (FFO), a critical profitability metric for real estate investment trusts (REITs), is expected to reach roughly $0.39 per share, according to analyst estimates.
• Sabra raised its full-year 2026 guidance in late July, citing the re-tenanting of 26 Avamere-leased properties and the settlement of a $300 million mortgage at a reduced cash amount.
• Investor attention will center on same-store senior housing performance, acquisition activity, and management's updated commentary on the company's $400 million-plus investment pipeline.

Earnings Context and Why It Matters

Sabra Health Care REIT's second-quarter report arrives at a pivotal moment for the healthcare real estate sector. The company, which owns and leases skilled nursing facilities, senior housing communities, and behavioral health properties across the United States and Canada, has been aggressively repositioning its portfolio. In recent weeks, Sabra announced plans to re-tenant 26 properties previously leased to Avamere — mostly to Cascadia Healthcare — a move expected to boost annualized cash rent by nearly 30%. At the same time, a $200 million cash settlement of a $300 million mortgage with Recovery Centers of America strengthened the balance sheet and reduced exposure to behavioral health assets. These strategic shifts, combined with sustained demand for senior housing amid limited new supply, make the Q2 print a critical checkpoint for investors evaluating whether operational momentum can keep pace with portfolio transformation.

Earnings Expectations

Heading into the August 3 release, analysts expect Sabra to report net income of roughly $0.17 per diluted share on revenue of approximately $219.4 million. On an FFO basis — the preferred earnings yardstick for REITs since it strips out real estate depreciation — the consensus estimate stands near $0.39 per share. These figures reflect a modest sequential improvement from the first quarter of 2026, when Sabra delivered net earnings of $0.16 per share and revenue of $211.74 million, beating the Street's revenue forecast while meeting EPS estimates. Revenue in that quarter climbed 20.9% year-over-year, supported by a 14.4% increase in same-store managed senior housing Cash Net Operating Income (NOI).

For Q2, investors will also be closely monitoring Sabra's EBITDARM coverage ratios (a measure of how well tenant operating earnings cover rent obligations), which stood at 2.46x for skilled nursing and 1.58x for leased senior housing in Q1. Additionally, the market will look for confirmation that acquisition activity remained robust — Sabra had already closed or been awarded over $400 million in investments year-to-date as of its last update, with an estimated initial cash yield of approximately 8%.

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Market Reaction and Investor Sentiment

Sentiment around SBRA has firmed considerably in the weeks leading into the Q2 report. The stock surged more than 10% on July 21 after the company raised its full-year 2026 guidance, lifting its normalized FFO forecast to a range of $1.53 to $1.55 per share and normalized AFFO (Adjusted Funds From Operations) to $1.59 to $1.61 per share — both above prior consensus expectations. As of late July, shares traded near $22.36, close to the upper end of the 52-week range of $17.17 to $22.55.

Analyst sentiment reflects cautious optimism: the consensus rating on SBRA stands at "Moderate Buy," with an average price target of approximately $22.25. Truist Securities upgraded the stock to Buy in early July, and Deutsche Bank raised its target to $25 following the guidance increase. Still, some analysts remain on the sidelines, pointing to elevated transaction and transition risk as Avamere properties change hands. With the stock trading near analyst targets, the Q2 report may need to deliver clear operational outperformance or materially higher guidance to fuel further upside.

Forward Outlook and Key Factors to Monitor

Looking beyond the August 3 release, several factors will shape the investment narrative for Sabra through the remainder of 2026 and into 2027.

The successful execution of the Avamere-to-Cascadia transition is perhaps the single most important near-term catalyst. Sabra expects the re-tenanting to push annualized cash rent on the affected portfolio from $41 million to $53 million, but investor confidence will depend on how smoothly the transition unfolds during the second half of the year. Any delays, operational disruptions, or rent collection issues could weigh on sentiment.

Acquisition activity remains another critical lever. Sabra has demonstrated an ability to deploy capital at attractive initial cash yields, with over $400 million in investments closed or awarded year-to-date and an active pipeline of approximately $690 million in managed senior housing opportunities. Continued deployment at yields above 7–8% would support FFO growth and help offset any dilution from the company's at-the-market equity offering programs.

On the balance sheet side, the RCA mortgage settlement and forward equity agreements have strengthened Sabra's financial position. Pro forma for the RCA transaction, Net Debt to Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) declined from 5.0x to 4.8x. However, with a dividend payout ratio that remains elevated relative to net income, investors will monitor whether FFO and AFFO growth can keep the $0.30 quarterly dividend comfortably covered. In Q1, the dividend was covered at 77% of normalized AFFO — a level that provides some cushion but leaves limited room for error.

Finally, the broader macroeconomic backdrop matters. Demand for senior housing continues to benefit from favorable demographics as the U.S. population ages, and limited new construction is helping to support occupancy and pricing power. Sabra's same-store managed senior housing occupancy reached 88.4% in Q1, with further room for recovery toward pre-pandemic levels above 90%. Any commentary on occupancy trends, labor cost pressures, and private-pay mix — which hit a record 50% in Q1 — will be closely parsed by the market.

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