Sabra Health Care REIT: Accretive Avamere Transition + Smaller Initiatives > Disappointing RCA Outcome

研报英文原文证据摘录

Sabra Health Care REIT: Accretive Avamere Transition + Smaller Initiatives > Disappointing RCA Outcome

USA | REITs

Sabra Health Care REIT EquityJulyResearch21, 2026

TARGET CHANGEAccretive Avamere Transition + Smaller

RATING BUYInitiatives > Disappointing RCA Outcome

PRICE $20.00^

SBRA increased FY26 normalized AFFO/sh by ~2% to $1.59-$1.61. This was

largely driven by the Avamere lease transition (+$12M in annual rent) and PRICE TARGET | % TO PT $25.00 ($22.00) | +25%

smaller portfolio initiatives (+$9M in annual NOI) and slightly offset by the RCA 52W HIGH-LOW $21.28 - $17.17

loan repayment (~11.3% implied yield) and higher G&A. While the RCA outcome FLOAT (%) | ADV MM (USD) 98.1% | 69.54

was disappointing, the Avamere and smaller portfolio initiatives outweigh it in MARKET CAP $5.0B

our view. Further, resolving RCA removes a key overhang. TICKER SBRA ^Prior trading day's closing price unless otherwise

noted.

SBRA Transitions Avamere Lease & Achieves a ~29% Rent Increase: SBRA will transition its

26 Avamere properties to Cascadia (22) and an existing unnamed tenant (4), increasing annual

FY (Dec) CHANGE TO JEFe JEF vs CONS

rent by $12M to $53M. This is clear positive as Cascadia is a high quality operator and SBRA

2026 2027 2026 2027

achieved a ~29% rent increase, which is quite uncommon in these situations. For added context,

SBRA previously restructured its Avamere lease in 2022, when they cut base rent to $30.7M from REV NA NA NA NA

$44.1M. Beginning early last year, management has had the one-time option to reset rent based EPS NA NA NA NA

on the portfolio's historical performance. Management chose to wait for a better opportunity and

earlier this year Avamere approached SBRA with the desire to exit the SNF business. With coverage