Sabra Health Care REIT Reports $25.2 Million Net Loss in Q2 2026 Despite Revenue Growth

Sabra Health Care REIT, Inc. reported a net loss of $25.2 million for the second quarter of 2026, a significant decline compared to a net income of $65.5 million in the same period last year. The company’s total revenues for the quarter reached $235.9 million, up from $189.2 million in the prior year, driven primarily by a 63% increase in resident fees and services, which totaled $128.8 million. Rental and related revenues also saw a modest increase, rising to $101.3 million from $99.8 million. However, the company faced increased expenses, particularly in depreciation and amortization, which surged to $56.4 million from $43.6 million, and a substantial provision for loan losses of $102.4 million, primarily linked to a reduced cash repayment on a significant mortgage loan.

In terms of strategic developments, Sabra made notable acquisitions during the first half of 2026, acquiring seven Senior Housing - Managed communities and two skilled nursing facilities for a total of $287.6 million. This included the purchase of operations for one Senior Housing - Managed community previously under a triple-net lease. The company also recognized a net gain of $37.7 million from the sale of seven facilities, reflecting a strong disposition strategy aimed at optimizing its portfolio. The total assets of Sabra increased to $5.5 billion as of June 30, 2026, compared to $5.5 billion at the end of 2025, indicating a stable asset base despite the operational challenges.

Operationally, Sabra's portfolio consisted of 364 properties as of June 30, 2026, with a focus on skilled nursing and transitional care facilities. The company reported a significant increase in resident fees and services, attributed to higher occupancy rates and the acquisition of new facilities. However, the company also faced challenges, including increased labor costs and operational expenses, particularly in its Senior Housing - Managed portfolio, which saw expenses rise to $88.6 million from $57.4 million year-over-year. The company’s employee headcount has also increased, reflecting its expansion efforts.

Looking ahead, Sabra's management expressed cautious optimism regarding future performance, emphasizing the importance of maintaining liquidity and managing operational costs. The company had approximately $1.3 billion in liquidity as of June 30, 2026, which includes cash and available borrowings under its revolving credit facility. The company plans to utilize this liquidity for future investments and to navigate the ongoing economic challenges, including inflation and labor shortages. Additionally, Sabra's board declared a quarterly cash dividend of $0.30 per share, reaffirming its commitment to returning value to shareholders while balancing growth and operational stability.