Sabra Healthcare REIT (SBRA.O): Well Received Update Leads to Strong Performance – Thoughts After Management Follow Up

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Sabra Healthcare REIT (SBRA.O): Well Received Update Leads to Strong Performance – Thoughts After Management Follow Up

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21 Jul 2026 17:08:45 ET │ 14 pages

Sabra Healthcare REIT (SBRA.O)

Well Received Update Leads to Strong Performance – Thoughts After

Management Follow Up

CITI'S TAKE Neutral

Price (21 Jul 26 16:00) US$22.04 Today (7/21), SBRA released a business update and raised full-year 2026

Target price US$19.00 guidance by ~2% at the midpoint. In our view, the update is a net positive

on balance: leverage declined -0.2x (to 4.8x pro forma from 5.0x), the Expected share price return -13.8%

Avamere re-tenanting delivers a ~29% rent uplift ($53M annualized from Expected dividend yield 5.4%

$41M TTM), incremental portfolio initiatives add >$9M of run-rate cash Expected total return -8.3%

NOI, and the company closed out the RCA mortgage overhang via a Market Cap US$5,558M

negotiated $200M repayment against the $300M outstanding balance.

Together, the rent uplift and incremental NOI initiatives more than offset

the $100M RCA haircut and support the full-year normalized FFO

guidance raise of +3c (~2%) at the midpoint to $1.53–$1.55, in line with VA Seth Bergey, CPA, CFA

consensus at $1.54 and +1c ahead of our prior estimate of $1.53. +1-212-816-2066

seth.bergey@citi.com

Follow-Up with Senior Management — Following our management call, we are Nick JosephAC

encouraged by the additional detail provided: the Avamere transition is targeting a +1-212-816-1909

10/1 close with no regulatory approval gating issues anticipated, rent is structured as nicholas.joseph@citi.com

a traditional SNF lease with 2% annual escalators, coverage is expected to be near

Lauren R McNichol~1.4x at close with room to improve, and Cascadia is supported by a well-capitalized