Update shared on03 Sep 2025
Fair value Increased 2.23%Analysts have raised Sabra Health Care REIT’s price target to $20.82, citing strong portfolio performance—highlighted by robust senior housing NOI growth, increased rent coverage, and supportive reimbursement trends—despite elevated leverage and valuation constraints.
Analyst Commentary
- Strong balance sheet and solid year-to-date stock performance, though leverage remains higher than some peers and valuation is at the upper end of historical range, limiting immediate earnings accretion from new acquisitions.
- Continued portfolio outperformance, with coverage ratios expanding and same-store Senior Housing Operating Portfolio NOI growing by 17%.
- Q2 earnings and revenues exceeded consensus estimates, with increased rent coverage across triple-net segments and supportive Medicare/Medicaid rates expected to benefit skilled nursing.
- Active investment in senior housing, moving toward increasing portfolio allocation from 20% to 30%, and ongoing diversification of major senior housing assets with new operator relationships.
- Anticipated strong move-in pace, sustained landlord pricing power due to affordability advantages of assisted living over home care across most REIT markets.
What's in the News
- Filed a $750 million at-the-market follow-on equity offering of common stock.
- Completed a $390.7 million at-the-market offering of 7.8 million shares at an average price of $16.93 per share.
- Updated 2025 earnings guidance to net income of $0.77–$0.79 per diluted share.
- Reported real estate impairment of $4.1 million for Q2, down from $15.3 million year-over-year.
- Dropped from the Russell 2000 Dynamic Index.
Valuation Changes
Summary of Valuation Changes for Sabra Health Care REIT
- The Consensus Analyst Price Target has risen slightly from $20.36 to $20.82.
- The Consensus Revenue Growth forecasts for Sabra Health Care REIT has significantly risen from 7.7% per annum to 9.4% per annum.
- The Future P/E for Sabra Health Care REIT has fallen slightly from 30.37x to 28.86x.
Disclaimer
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