Sabra Projects 5% FFO Growth, Low-90% Senior Housing Occupancy and $450M Investments
Sabra expects same-store senior housing occupancy to reach the low-90% range in 2026, with low single-digit rate growth and expenses held below inflation driving roughly 5% normalized FFO and AFFO per share growth guidance. The REIT completed $450 million of 2025 investments while Q4 interest income fell to $10.6 million.
1. 2026 Guidance and Occupancy Targets
Sabra’s CFO projects same-store senior housing occupancy rising into the low-90% range in 2026, supported by low single-digit rate increases and expense growth below inflation. This combination underpins a guidance of approximately 5% growth in normalized FFO and AFFO per share for the full year.
2. Q4 Income and Lease Portfolio Performance
Interest and other income declined to $10.6 million in Q4 from $12.7 million in the prior quarter, while cash NOI from the triple-net portfolio fell by $1.3 million. Management is in ongoing discussions on the RCA loan, assuming the existing lease remains in place through 2026.
3. Investment Activities and Pipeline
Sabra completed about $450 million of investments in 2025 and anticipates its 2026 pipeline will exceed last year’s volume. The company plans to maintain a primary focus on senior housing investments, with minimal skilled nursing allocations sourced through existing relationships.
4. Portfolio Dynamics and Competitive Outlook
Holiday transition assets are currently lagging the broader shop portfolio but have a longer runway for improvement, while non-holiday assets are performing robustly. Despite heightened competition for acquisitions, Sabra continues to secure assets expected to deliver low double-digit IRRs.