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Jun 30, 2025
Sabra Health Care REIT Q2 2025 Earnings Report
Sabra Health Care REIT reported its second quarter 2025 results, showing increased net income and FFO per share, and updated its 2025 guidance.
Key Takeaways
Sabra Health Care REIT delivered a productive second quarter in 2025, with significant increases in net income and FFO per share compared to the prior year. The company saw strong investment activity, improved rent coverage across its triple-net segments, and successfully transitioned managed senior housing properties to new operators. Leverage decreased, and the company updated its full-year 2025 guidance.
Net Income per diluted common share increased to $0.27 in Q2 2025 from $0.10 in Q2 2024.
Normalized FFO per diluted common share was $0.37 and Normalized AFFO per diluted common share was $0.38 for Q2 2025.
Same store managed senior housing Cash NOI grew by 17.1% year-over-year.
Net Debt to Adjusted EBITDA improved to 5.00x as of June 30, 2025.
Revenue by Segment
Forward Guidance
Sabra Health Care REIT updated its 2025 earnings guidance, anticipating continued growth in Cash NOI for both triple-net and same-store managed senior housing portfolios, while maintaining stable general and administrative expenses.
Positive Outlook
- Expected low-single-digit Cash NOI growth for the triple-net portfolio.
- Anticipated low to mid-teens Cash NOI growth for the same store managed senior housing portfolio.
- New investments totaling approximately $350 million are closed, in process of closing, or awarded, primarily in senior housing.
- Recently finalized Medicare rate increase of 3.2% effective October 1, 2025, supporting the skilled nursing industry.
- Estimated average Medicaid rate increase in the mid-3% range across the skilled nursing portfolio, with a 5% average increase in top five states.
Challenges Ahead
- Guidance assumes no tenants are placed on cash-basis or moved to accrual-basis for revenue recognition after June 30, 2025.
- Guidance only includes investments, dispositions, and capital markets activity completed as of the release date, excluding future potential activities.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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