Sabra Healthcare REIT Sees 12.6% Q4 NOI Growth and 5% FFO Increase
Sabra Healthcare REIT reported Q4 2025 same-store managed senior housing revenue up 6.4% year-over-year, cash NOI growth of 12.6%, occupancy climbing 160 bps to 87.9% (Canada 94.2%), and declared a $0.30 quarterly dividend representing about 79% of normalized AFFO. For full-year 2026, the REIT forecasts normalized FFO of $1.49–$1.53 per share and AFFO of $1.55–$1.59 (about 5% growth at midpoint), backed by a $450 million+ 2025 investment base, a robust pipeline exceeding 2025 volume, $1.2 billion liquidity and net debt/EBITDA of 5.0x.
1. Q4 2025 Performance
Sabra's same-store managed senior housing revenue rose 6.4% year-over-year in Q4 2025, with cash NOI growth of 12.6% and occupancy up 160 basis points to 87.9% (94.2% in Canada). Normalized FFO per share reached $0.36 and AFFO per share was $0.38, supporting a $0.30 quarterly dividend (79% of normalized AFFO).
2. 2026 Guidance
Management introduced full-year 2026 guidance forecasting normalized FFO of $1.49–$1.53 per share and AFFO of $1.55–$1.59, implying roughly 5% growth at the midpoint. The outlook assumes low single-digit growth for the triple-net portfolio and low-to-mid teen cash NOI growth for same-store managed senior housing.
3. Investment Activity and Pipeline
Sabra completed about $450 million of investments in 2025 with an estimated initial cash yield of 7.5% and average asset age under 10 years. The company holds awarded deals of $220 million in senior housing and $20 million in skilled nursing, with most expected to close by early Q2 2026.
4. Balance Sheet and Leverage
The REIT ended December with approximately $1.2 billion of liquidity and a net debt to adjusted EBITDA ratio of 5.0x, down 0.27x from the prior quarter. Stable leverage supports ongoing investment and dividend distributions while maintaining financial flexibility.