The guidance raise and portfolio de-risking (Avamere re-tenanting, RCA mortgage resolution) are significant positive catalysts. Monitor H2 2026 for completion of the Avamere transition and further portfolio initiatives. The leverage reduction and improved rent coverage support a re-rating of the stock.
Price Chart
Executive Summary
Sabra Health Care REIT raised full-year 2026 guidance, reflecting a 7% increase in Normalized FFO and 8% in Normalized AFFO per share over 2025, driven by the re-tenanting of 26 Avamere properties at 30% higher rent ($53M vs $41M), smaller portfolio initiatives adding >$9M cash NOI, and the early repayment of a $300M RCA mortgage for $200M, which reduced Net Debt/EBITDA from 5.0x to 4.8x and lowered behavioral health concentration from 13% to 9% of Annualized Cash NOI.
Key Facts
- Full-year 2026 Normalized FFO guidance raised to $1.53-$1.55 per share (7% YoY increase at midpoint)
- Full-year 2026 Normalized AFFO guidance raised to $1.59-$1.61 per share (8% YoY increase at midpoint)
- Avamere re-tenanting expected to increase annualized cash rent to $53M from $41M (nearly 30% increase), closing H2 2026
- RCA mortgage settled for $200M cash repayment on $300M balance, closed June 30, 2026; proceeds used to reduce revolver
- Pro forma Net Debt/EBITDA declined from 5.0x to 4.8x; behavioral health concentration fell from 13% to 9% of Annualized Cash NOI
- Smaller portfolio initiatives expected to add over $9M per year in cash NOI on a run-rate basis
Financial Impact
Guidance increase of 7-8% YoY on Normalized FFO/AFFO; $12M incremental annual cash rent from Avamere transition; $100M reduction in mortgage liability
Risk Factors
- Execution risk on Avamere transition to Cascadia and existing tenant; any delays or lower-than-expected rent could pressure guidance
- Interest rate sensitivity: higher rates could increase refinancing costs and cap rates, offsetting NOI growth
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001492298-26-000023 |
| Document: sbra-20260721.htm | 0001492298-26-000023 |
| Document: 0001492298-26-000023-index-headers.html | 0001492298-26-000023 |
| Document: 0001492298-26-000023-index.html | 0001492298-26-000023 |
| Document: 0001492298-26-000023.txt | 0001492298-26-000023 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 21, 2026 10w ago | 8-K | $22.04 $20.33 | ▼ −7.76% | ▼ −10.32% | $19.16 (−13.07%) |
Apr 24, 2026 23w ago | DEFA14A | $20.09 $20.71 | ▲ +3.09% | ▼ −0.94% | $19.16 (−4.63%) |
US Market Status
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