Sabra Health Care REIT, Inc. Q2 2026 Earnings Recap

Shares declined 2.4% following Sabra Healthcare REIT’s Q2 report, reflecting investor caution despite stable fundamentals, as the market appeared unimpressed by modest growth and mixed margin performance amid a cautious tone on portfolio transitions.

Key Takeaways

• Normalized FFO per share was flat sequentially at $0.38 and up 3% year-over-year; normalized AFFO per share increased 5% year-over-year to $0.40.
• Total cash NOI rose sequentially by $5.6 million to $144.3 million, driven by managed senior housing and triple-net portfolio improvements.
• Managed senior housing portfolio showed strong sequential revenue (+9.6%) and cash NOI growth (+14.4%) with 130 basis points of margin expansion; occupancy improved 170 basis points to 88.2%.
• Triple-net skilled nursing portfolio showed improved rent coverage, but triple-net senior housing experienced a drop in occupancy and coverage due to asset transition to the SHOP segment.
• Leverage improved to 4.61%, and Medicaid and Medicare rate adjustments were in line with expectations, but cautious comments on asset transition and mixed operational signals likely weighed on sentiment.