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Get filing alertsSabra re-tenants 26 Avamere properties at 30% rent increase, settles RCA mortgage at $200M discount
Filed July 21, 2026 · Period ending July 21, 2026 · ~1 min read
Key Changes
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high
Re-tenanting all 26 Avamere properties to Cascadia Healthcare (22 properties) and existing tenant (4 properties), increasing annualized cash rent $53M (nearly 30% increase), expected to close in second half of 2026.
Exhibit 99.1 view on EDGAR → -
high
Settled $300M RCA mortgage for $200M cash on June 30, 2026, accepting $100M discount for early satisfaction. Proceeds reduced revolver borrowings, lowering Net Debt to EBITDA from 5.0x to 4.8x and behavioral health concentration from 13% to of annualized cash NOI.
Exhibit 99.1 view on EDGAR → -
high
Raised full-year 2026 guidance: Normalized FFO $1.53-$1.55 per share (midpoint $1.54, up 7% over 2025) and Normalized AFFO $1.59-$1.61 per share (midpoint $1.60, up 8% over 2025).
Exhibit 99.1 view on EDGAR → -
medium
Completed or agreed to several smaller portfolio initiatives (re-tenanting, rent resets, lease amendments) that will collectively increase cash NOI by over annually on a run-rate basis, with most already closed.
Exhibit 99.1 view on EDGAR →
Summary
Sabra announced a significant portfolio repositioning that addresses two legacy challenges while improving earnings power. The company is re-tenanting all 26 properties currently leased to Avamere, whose founder indicated a desire to exit skilled nursing earlier this year.
Separately, Sabra settled a $300 million RCA mortgage for $200 million on June 30, accepting a $100 million discount to exit the position early and reduce behavioral health exposure from 13% to of cash NOI. Management notes they have recouped their initial investment including interest earned since 2021.
The combined impact of these transactions, along with over in additional annual cash NOI from smaller portfolio initiatives, drove a guidance increase across all metrics. At the midpoint, Normalized FFO of $1.54 per share represents 7% growth over 2025, while Normalized AFFO of $1.60 per share is up 8%. The company's Net Debt to EBITDA improved from 5.0x to 4.8x pro forma. The Avamere re-tenanting represents a material upgrade in portfolio quality and cash flow, while the RCA settlement removes a near-term maturity and reduces concentration risk in a challenged sector.
Section-by-Section Diff
Event · Exhibit 99.1
Sabra re-tenants 26 Avamere properties, settles RCA mortgage at $200M discount, and raises 2026 guidance on improved portfolio quality.
Added in current filing · view on EDGAR →
Earnings guidance above assumes:
•low-single-digit Cash NOI growth for the triple-net portfolio at the midpoint, ignoring the impact of acquisitions, dispositions and completed or planned tenant transitions;
•average full-year Cash NOI growth for the same-store Senior Housing - Managed portfolio in the low-to-mid teens;
•general and administrative expenses at the midpoint of $61 million, which includes $13 million of stock-based compensation expense;
•cash interest expense of $104 million at the midpoint;
•weighted average share count of 258 million and 259 million for Normalized FFO and Normalized AFFO, respectively;
•only investments, dispositions and capital markets activity completed as of July 21, 2026.
The updated guidance assumes low-single-digit cash NOI growth for the triple-net portfolio, low-to-mid teens growth for same-store senior housing managed properties, $61 million in G&A expenses (including $13 million stock-based compensation), $104 million in cash interest expense, and weighted average share counts of 258-259 million. Only transactions completed as of July 21, 2026 are included.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 22, 2026 · How we verify