Loading...
01/10 05:05
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial metrics, strategic investments, and optimistic guidance, particularly in the senior housing sector. Despite the maintenance of guidance, the focus on SHOP investments and refinancing of debt are positive indicators. The Q&A reveals management's confidence in future growth, with strategic steps to stabilize and improve occupancy. The market cap suggests moderate volatility, leading to a positive stock price prediction in the range of 2% to 8%.
Cash NOI growth 15.9% excluding the 16 ex-Holiday properties included in same store, and 13.3% including them. The growth is attributed to stabilization and improved performance of transitioning facilities.
Managed senior housing portfolio contribution 26% of total annualized cash NOI, driven by recent acquisitions and reduced skilled nursing exposure below 50%.
Cash NOI and margin Increased 18.6% and 90 basis points sequentially, respectively, for the total managed portfolio. This was due to acquisitions and improved occupancy.
Occupancy Increased 60 basis points to 86.8% sequentially in the total managed portfolio, excluding non-stabilized communities. This reflects the quality of properties.
RevPAR Rose 4.3% sequentially in the total managed portfolio, excluding non-stabilized communities, due to strong property performance.
Revenue growth in same-store managed senior housing portfolio 5.4% year-over-year, with Canadian communities growing 10.2%.
Occupancy in same-store portfolio Increased 110 basis points to 86%, with domestic portfolio up 90 basis points to 82.6% and Canadian portfolio up 150 basis points to 93.1%.
RevPAR in same-store portfolio Increased 3.4% year-over-year, with Canadian portfolio growing 5.8%.
Cash NOI growth in same-store portfolio 13.3% year-over-year, and 15.9% excluding 16 properties formerly operated by Holiday. Canadian communities saw a 20.2% increase.
Normalized FFO and AFFO per share $0.36 and $0.38 for the quarter, representing year-to-date increases of 5% and 4%, respectively, over the same period in 2024.
Cash rental income from triple-net portfolio Decreased $3.5 million from the second quarter, primarily due to transitioning facilities to managed senior housing, facility sales, and lower percentage rents.
Cash NOI from managed senior housing portfolio Increased $4.7 million sequentially to $30.1 million, driven by investment activity and transitioning facilities.
Net debt to adjusted EBITDA ratio 4.96x as of September 30, 2025, a decrease from 5.00x in June 2025 and 5.30x in September 2024, due to refinancing and earnings growth.
SHOP portfolio growth: The SHOP portfolio has grown to 26% of the total portfolio, exceeding the initial target of 20%-30%. A new target of 40% has been set.
Cash NOI growth: Cash NOI growth was 15.9% excluding 16 ex-Holiday properties and 13.3% including them.
Investment target: The company will exceed its original investment target of $400-$500 million, with closed and awarded deals in 2025 totaling over $550 million.
Senior housing investments: $237 million was invested in managed senior housing during the quarter, with an additional $124 million awarded post-quarter end. The pipeline remains strong with $121 million in awarded deals expected to close by early 2026.
Occupancy and RevPAR: Occupancy increased to 86.8%, and RevPAR rose 4.3% sequentially in the managed portfolio.
EBITDAR rent coverage: Increased across all asset classes for the third consecutive quarter.
Leverage: Leverage decreased to below 5x.
Cash NOI margin: Increased by 90 basis points sequentially.
Portfolio balance: The company is focusing on balancing skilled nursing and senior housing, with senior housing being a stronger driver of earnings growth.
Debt management: Refinanced 2026 bonds with a 5-year term loan, improving debt metrics and maintaining no floating rate debt exposure in the permanent capital stack.
SHOP portfolio growth: The company is increasing its SHOP portfolio target from 26% to 40%, which may expose it to risks associated with over-reliance on this segment, including market volatility and operational challenges.
Transition of facilities: Transitioning 4 previously triple-net leased senior housing facilities to managed senior housing resulted in a $9.2 million write-off of straight-line rent receivables and $1.2 million lease termination expense, indicating financial risks during transitions.
Cash rental income decrease: Cash rental income from the triple-net portfolio decreased by $3.5 million, primarily due to facility sales and transitions, which could impact overall revenue stability.
Competition for assets: While pricing remains reasonable, competition for high-quality properties is real, which could lead to challenges in acquiring assets at favorable terms.
Interest expense increase: Cash interest expense increased due to higher borrowings under the revolving credit facility, which could strain financial resources if borrowing costs continue to rise.
Regulatory environment: Although currently stable, the regulatory environment for skilled nursing could pose future risks if changes occur.
Economic uncertainties: The company’s reliance on acquisitions and investments to drive growth exposes it to economic uncertainties and potential market downturns.
SHOP portfolio growth target: The company has set a new target to increase its SHOP portfolio from the current 26% to 40% of the total portfolio.
Investment targets: The company will exceed its original investment target of $400 million to $500 million, surpassing $500 million. The pipeline remains robust, with deals expected to strengthen 2026 performance.
Managed senior housing investments: Sabra invested $237 million in managed senior housing during the quarter and was awarded an additional $124 million in investments, expected to close by early 2026. The total closed and awarded deals in 2025 exceed $550 million.
Earnings guidance for 2025: The implied midpoint for normalized FFO and AFFO remains unchanged at $1.46 and $1.50 per share, respectively. Full-year average same-store cash NOI growth for managed senior housing is expected to be in the mid-teens.
Debt and liquidity: The company maintains a strong balance sheet with a net debt to adjusted EBITDA ratio of 4.96x and no floating rate debt exposure in its permanent capital stack. Liquidity stands at approximately $1.1 billion.
Senior housing market trends: Development of new senior housing remains low, suggesting a favorable supply-demand equation for the foreseeable future.
Quarterly cash dividend: Sabra's Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock. The dividend will be paid on November 28, 2025, to common stockholders of record as of the close of business on November 17, 2025. The dividend represents a payout of 79% of the third quarter normalized AFFO per share.
The earnings call highlights strong financial metrics, strategic investments, and optimistic guidance, particularly in the senior housing sector. Despite the maintenance of guidance, the focus on SHOP investments and refinancing of debt are positive indicators. The Q&A reveals management's confidence in future growth, with strategic steps to stabilize and improve occupancy. The market cap suggests moderate volatility, leading to a positive stock price prediction in the range of 2% to 8%.
The earnings call reflects a positive sentiment, with strong financial metrics such as increased FFO and AFFO, a steady dividend, and a busy deal pipeline. Though management provided moderate guidance, they expressed optimism about occupancy trends and market demand. The Q&A highlighted positive occupancy trends, a robust acquisition pipeline, and no major risks, reinforcing a positive outlook. Given the market cap, a 2% to 8% stock price increase is expected.
The earnings call reveals strong financial performance with a 6.3% revenue increase, improved occupancy rates, and solid cash NOI growth. The declaration of a $0.30 dividend and a decrease in net debt to adjusted EBITDA ratio indicate financial stability. Despite some concerns in the Q&A, such as unclear guidance on senior housing acquisitions and Medicaid impacts, the overall sentiment is positive. With a market cap of around $3.5 billion, the positive financial metrics and optimistic outlook are likely to result in a stock price increase of 2% to 8% over the next two weeks.
The earnings call reveals strong financial performance, with increased revenue, FFO, and AFFO per share. The company maintains a stable interest expense and a reduced net debt to EBITDA ratio, indicating financial health. Positive guidance on occupancy and pricing, along with a robust deal pipeline, supports growth. The dividend payout is stable, and while forward equity issuance may dilute shares, it is outweighed by the strong financials and optimistic market strategy. The Q&A section reveals confidence in deal closures and occupancy growth, reinforcing a positive outlook.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
