Sabra Raises 2026 FFO Outlook as Same-Property Senior Housing Cash NOI Climbs 14.6%

Sabra Health Care REIT, Inc. lifted its 2026 funds from operations (FFO) outlook after same-property cash net operating income (NOI) in its Senior Housing Operating Portfolio rose 14.6% year over year in the third quarter.

Revenue for the three months ended Sept. 30 was $249.565 million, compared with $190.037 million a year earlier. Net income attributable to Sabra reached $28.607 million, up from $22.538 million, while diluted earnings per share were $0.11, compared with $0.09.

FFO was $0.40 per diluted share, versus $0.33 a year earlier. Normalized FFO was $0.39, compared with $0.36. Adjusted funds from operations (AFFO) was $0.45, up from $0.37, and normalized AFFO was $0.41, compared with $0.38.

For full-year 2026, Sabra set FFO guidance at $1.145 to $1.155 per share, up from $1.12 to $1.14. Its AFFO range rose to $1.625 to $1.635 from $1.58 to $1.60. The lower end of normalized FFO guidance increased to $1.540 from $1.53, while the upper end stayed at $1.55. The lower end of normalized AFFO guidance rose to $1.600 from $1.59, with its upper end unchanged at $1.61. Sabra lowered its net income outlook to $0.265 to $0.275 per share from $0.37 to $0.39.

The company completed the transfer of 26 properties formerly leased to Avamere on Oct. 1. Subsidiaries of Cascadia Healthcare took over 22 properties, and subsidiaries of Ensign Group took over four. Annualized cash rent for the properties increased to $53 million from $48 million, effective Oct. 1.

“Leverage ticked down, and we increased our guidance at the midpoint,” CEO and Chair Rick Matros said.

FFO is a non-GAAP measure. Sabra calculates it by adding back real estate depreciation and amortization and adjusting for gains or losses on real estate sales. The company presents FFO as supplemental to GAAP measures, not as a replacement for them.

Sabra’s board declared a quarterly dividend of $0.30 per share on Nov. 2. It is payable Nov. 30 to shareholders of record at the close of business Nov. 13.