Weekly Real Estate News
Summary
Sabra Health Care REIT reported 14.6% same-property cash net operating income growth in its managed senior housing portfolio for the third quarter of 2026. The REIT also described roughly $425 million in awarded or prospective investments, subject to closing conditions; these commitments should not be described as completed acquisitions.
Sabra Health Care REIT reported a 14.6% year-over-year increase in same-property cash net operating income from its senior housing operating portfolio for the third quarter, underscoring the company’s push toward properties whose operating results flow directly through its accounts.
The November 2 earnings release also identified $425 million in additional investments awarded to Sabra. Those transactions are at the letter-of-intent stage or further along, the company said, and have not all closed. Approximately $385 million of the prospective investments would be in senior housing operating properties, with another $25 million in skilled nursing and $15 million in preferred equity.
Senior housing growth changes the portfolio mix
Sabra completed seven senior housing operating-property acquisitions for $222.8 million in the third quarter, reporting an estimated 7.7% investment yield. Year-to-date completed investments reached $747.2 million, with an estimated yield of 8.0%.
Management expects the operating senior housing segment to account for about 40% of the portfolio on a run-rate basis by the end of 2026 and 50% by the end of 2027. Those are projections, and future acquisitions, dispositions and operating performance could change the outcome.
Unlike properties leased to a third-party operator under a long-term contract, an operating portfolio exposes the owner more directly to occupancy, resident fees, labor costs and operating margins. Sabra’s third-quarter figures suggest improvement in its existing operating communities, although the release does not establish that the same growth rate will continue.
The company reported $249.6 million in quarterly revenue, up from $190.0 million a year earlier. Net income was 11 cents per diluted share. Its normalized funds from operations were 39 cents per diluted share, while normalized adjusted funds from operations reached 41 cents. FFO and AFFO are industry measures that adjust GAAP results and should not be treated as substitutes for net income.
More deals, with a substantial amount still pending
Sabra estimated the $425 million pipeline would carry a 7.0% investment yield if completed. The company said the transactions could be funded through available liquidity, including proceeds from shares under forward-sale arrangements. It reported about $1.2 billion in liquidity at September 30, including undrawn credit-facility capacity and proceeds available through those arrangements.
In a separate operating change, Sabra transferred 26 properties previously leased to Avamere to operators affiliated with Cascadia Healthcare and the Ensign Group on October 1. The company said annualized cash rent on those assets increased to $53 million from $48 million following the transition.
For the full year, Sabra now forecasts normalized FFO of $1.540 to $1.550 per diluted share and normalized AFFO of $1.600 to $1.610. Its board declared a 30-cent quarterly dividend, payable November 30 to shareholders of record November 13.
The investment pipeline is sizable relative to the $747.2 million already closed this year, but awarded transactions remain conditional. Financing availability, operator performance and the cost of capital will shape whether management’s planned shift toward operating senior housing delivers the projected returns.
Source: Sabra Health Care REIT third-quarter 2026 earnings release and financial statements, November 2, 2026.
Featured photograph: illustrative residential building by Yiquan Zhang/Unsplash; not a Sabra-owned property.
