Sabra Health Care REIT Reports 6% Revenue Growth to $190M in Q3 2025

Sabra Health Care REIT, Inc. reported a total revenue of $190.0 million for the third quarter of 2025, reflecting a 6% increase from $178.0 million in the same period last year. The growth was primarily driven by a 25% rise in resident fees and services, which reached $92.0 million, compared to $73.7 million in the prior year. However, rental and related revenues decreased by 10% to $85.4 million, down from $94.6 million, attributed to non-cash revenue write-offs and properties transitioning to managed communities. For the nine months ending September 30, 2025, total revenues increased to $562.7 million from $520.9 million in 2024.

In terms of profitability, Sabra reported a net income of $22.5 million for the third quarter, down from $29.8 million a year earlier. The decline was influenced by increased operating expenses, including a $11.7 million rise in senior housing managed portfolio operating expenses. For the nine-month period, net income rose to $128.4 million, compared to $80.0 million in the previous year, reflecting improved operational performance despite the challenges faced in the third quarter.

Strategically, Sabra has been active in expanding its portfolio, acquiring seven Senior Housing - Managed communities and purchasing the operations of four previously leased communities for a total of $283.1 million during the nine months ended September 30, 2025. This is a significant increase compared to the two managed communities acquired in the same period last year. The company also recognized a net gain of $5.5 million from the sale of eight facilities, indicating a proactive approach to capital recycling and portfolio optimization.

Operationally, Sabra's total assets increased to $5.56 billion as of September 30, 2025, up from $5.30 billion at the end of 2024. The company reported a total of 363 properties held for investment, with a focus on skilled nursing and transitional care facilities. The company’s liquidity position remains strong, with approximately $1.1 billion available, including $200.6 million in cash and cash equivalents and $717.8 million in available borrowings under its revolving credit facility.

Looking ahead, Sabra anticipates continued growth in its investment portfolio while navigating the challenges posed by rising interest rates and operational costs. The company remains committed to maintaining its REIT status and expects to leverage its liquidity for future investments and capital expenditures. The board of directors has declared a quarterly cash dividend of $0.30 per share, reflecting the company's ongoing commitment to returning value to shareholders.