10-Q · April 29, 2026
Sabra Health Care REIT reported mixed results for Q1 2026 with revenue of $221 million, a 20% increase from Q1 2025, driven by a notable rise in resident fees and services. Gross margins tightened with a reported gross…
Earnings analysis · 10-Q
SBRA earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Sabra delivered strong top-line expansion in Q2, with revenue of $235.866 million and managed senior-housing revenue growth of $49.817 million year over year; AFFO per diluted share improved to $0.39 from $0.37.…
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Sabra delivered strong top-line expansion in Q2, with revenue of $235.866 million and managed senior-housing revenue growth of $49.817 million year over year; AFFO per diluted share improved to $0.39 from $0.37. However, a $102.445 million loan-loss provision tied principally to the $100.0 million RCA loan write-off resulted in a GAAP loss of $0.10 per diluted share, down from $0.16 in Q1 and $0.27 a year ago. Liquidity of approximately $1.3 billion and $184.2 million of six-month operating cash flow support ongoing acquisitions and capital commitments, but credit losses, higher managed-portfolio costs, and forward-equity dilution temper the outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.1
What stood out
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Revenue accelerated to $235.9 million
Q2 revenue was $235.866 million, up $13.866 million, or 6.2%, from $222 million in Q1 2026 and up $56.906 million, or 31.8%, from $178.960 million in Q2 2025. Growth was driven by $49.817 million of higher resident fees and services.
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Managed senior housing drove growth
Resident fees and services rose 63% year over year to $128.802 million. The increase included $34.9 million from 18 acquired managed communities, $10.6 million from five communities transitioned to managed operations, and $5.4 million from higher occupancy and rates.
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AFFO per share improved to $0.39
AFFO attributable to Sabra was $99.507 million, or $0.39 per diluted share, versus $89.200 million, or $0.37 per share, a year earlier. This contrasts with a GAAP net loss attributable to Sabra of $25.202 million.
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Operating cash flow covered investment spend
Operating cash flow was $184.2 million for the first six months of 2026, while capital expenditures were $25.2 million. Cash flow less capital expenditures was approximately $159.0 million, and capex represented 13.7% of operating cash flow.
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Liquidity remains substantial
Liquidity totaled approximately $1.3 billion at June 30, comprising $231.6 million of unrestricted cash, $682.5 million of revolver availability, and $411.8 million associated with forward-sale agreements. Management states these sources are sufficient for expected requirements over the next 12 months.
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Portfolio recycling and investment continue
Sabra acquired ten facilities, bed rights/land, and managed-community operations for $292.5 million in the first six months, while receiving $93.6 million of net real-estate sale proceeds. It also expects approximately $74 million of its $75 million triple-net capital commitment to be spent in the next 12 months and generate incremental rent.
What to watch
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Large credit provision drove GAAP loss
GAAP diluted EPS was a loss of $0.10, versus earnings of $0.16 in Q1 2026 and $0.27 in Q2 2025. The principal driver was a $102.445 million Q2 provision for loan losses and other reserves.
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RCA loan settlement crystallized $100 million write-off
The company accepted $200.0 million in full settlement of a $300.0 million Recovery Centers of America mortgage loan, resulting in a $100.0 million write-off. This illustrates remaining borrower-credit and recoverability risk.
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Labor and financing costs increased
Senior-housing-managed operating expenses increased $31.212 million, or 54%, to $88.616 million, including a $1.4 million increase in employee compensation from higher labor rates and staffing. Interest expense also increased $2.231 million, or 8%, to $29.779 million.
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Forward equity arrangements create dilution exposure
At June 30, 2026, 21.4 million shares remained subject to ATM forward-sale agreements at an initial weighted-average price of $19.24 per share. Settlement of these arrangements could expand the share base, although they represent $411.8 million of liquidity.
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No formal risk-factor update; reimbursement exposure remains
No material changes to risk factors were reported relative to the 2025 Form 10-K. However, 31.9% of six-month revenue was derived directly or indirectly from skilled nursing/transitional-care facilities, which remain exposed to reimbursement and operator conditions.
Management's outlook
The 10-Q does not provide or update a quantitative revenue or EPS outlook; the filing directs readers to liquidity and capital-resource expectations rather than formal earnings guidance.
Earlier filings 4
10-K · February 12, 2026
Sabra presents a concentrated, healthcare-focused REIT strategy emphasizing growth in purpose-built and stabilized healthcare real estate while diversifying by tenant, facility type and geography. As of December 31,…
10-Q · August 4, 2025
Sabra reported Q2 revenue of $189,150,000, up $13,009,000 (7.4%) versus Q2 2024's $176,141,000, and delivered diluted EPS of $0.27 (vs $0.10 prior‑year). Income before JV and tax rose to $65,207,000 (operating margin…
10-Q · May 5, 2025
Sabra reported first quarter 2025 revenue of $183,543,000 (up from $166,747,000 in Q1 2024) and diluted EPS of $0.17 (up from $0.11). Operating performance generated strong cash flow with net cash provided by operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.