Sabra reports Q2 2026 normalized AFFO of $0.40/share, closes $599M YTD investments

Sabra disclosed its second quarter 2026 operating results through a press release. The 8-K itself does not contain the actual financial figures; those appear in the attached press release (Exhibit 99.1) and non-GAAP reconciliations (Exhibit 99.3), which are incorporated by reference and available on the company's investor relations website.

Sabra disclosed its Q2 2026 earnings results via press release and supplemental information package. The filing references these materials as Exhibits 99.1 and 99.2, making them available on the company's investor website. This is a routine quarterly earnings disclosure under Regulation FD.

Sabra reported a net loss of $0.10 per diluted share for Q2 2026, driven by a $102.4 million provision for loan losses and other reserves. However, normalized AFFO — the company's preferred operating metric — was $0.40 per share, reflecting healthy underlying operations. The company also reported strong same-property managed senior housing Cash NOI growth of 13.7% year-over-year.

Sabra closed $274.1 million of investments in Q2 2026 at an 8.1% initial cash yield, and an additional $223.0 million post-quarter. Year-to-date investments total $599.0 million at a 7.5% yield. The company has another $100 million of awarded investments expected to close by year-end at approximately 7.7% yield, to be funded with available liquidity including proceeds from forward equity sales.

Sabra reset the rent on its Avamere lease to $48 million annually (retroactive to February 1, 2026), up from $41 million paid in 2025. This represents a $7 million annual increase. The new rent will remain in effect until the previously announced Avamere transition closes.

Sabra's Net Debt to Adjusted EBITDA ratio improved to 4.61x as of June 30, 2026. The company had approximately $1.3 billion of liquidity, including $231.6 million of cash, $682.5 million available on its revolving credit facility, and $411.8 million from outstanding forward equity sale agreements. An additional $334.1 million was available under the ATM program.

Sabra's Board declared a quarterly dividend of $0.30 per share, payable August 31, 2026, to shareholders of record as of August 14, 2026. This maintains the company's regular quarterly distribution.

Sabra reported a net loss of $25.2 million for Q2 2026, compared to net income of $65.5 million in Q2 2025. The loss was driven by a $102.4 million provision for loan losses and other reserves, a sharp reversal from a $0.2 million recovery in the prior-year quarter. This provision suggests deterioration in the credit quality of certain loans or investments in the portfolio.

The company recognized a $37.7 million gain on sales of real estate during Q2 2026, up from $10.0 million in Q2 2025. This gain partially offset the impact of the loan-loss provision on net income. The filing does not detail which properties were sold or the strategic rationale.

Sabra's Senior Housing - Managed portfolio grew to 94 properties and 9,745 units as of June 30, 2026, up from 73 properties and 6,981 units a year earlier. Occupancy improved to 85.4%, resident fees rose to $128.5 million, and Cash NOI increased to $40.1 million with a 31.2% margin. The expansion reflects acquisitions and improved operating performance in this segment.

Sabra invested $297.5 million in the first half of 2026, primarily in Senior Housing - Managed properties ($221.0 million across seven properties) and Skilled Nursing / Transitional Care facilities ($73.2 million across four properties). The blended expected initial cash yield on these investments is 7.91%. The company also funded a $0.7 million preferred equity investment at a 13.0% return and $1.0 million in loans receivable at 9.90%.

Sabra's consolidated debt stood at $2.65 billion as of June 30, 2026, with $682.5 million available under its $1.0 billion revolving credit facility. Cash and cash equivalents increased to $231.6 million from $71.5 million at year-end 2025. The company maintains a weighted average debt maturity of 3.6 years and a 4.01% weighted average effective interest rate.

Sabra reported a net loss of $25.2 million ($0.10 per share) for Q2 2026, compared to net income of $65.5 million ($0.27 per share) in Q2 2025. The loss was driven by a $102.4 million provision for loan losses and other reserves, partially offset by a $37.7 million net gain on real estate sales. The loan loss provision reflects credit deterioration in the portfolio.

Sabra provided 2026 guidance with net income of $0.37–$0.39 per share, Normalized FFO of $1.53–$1.55 per share, and Normalized AFFO of $1.59–$1.61 per share. The guidance assumes low-single-digit Cash NOI growth for the triple-net portfolio, low-to-mid-teens same-store Cash NOI growth for Senior Housing - Managed, $61 million in G&A expenses, and $104 million in cash interest expense at the midpoint. Note: these figures were previously disclosed in the company's Jul 21, 2026 8-K.

Sabra reported Q2 2026 Normalized FFO of $98.2 million ($0.38 per share) and Normalized AFFO of $103.5 million ($0.40 per share), up from $89.2 million ($0.37 per share) and $91.6 million ($0.38 per share), respectively, in Q2 2025. These metrics exclude the loan loss provision and other normalizing items to reflect core operating performance.

Sabra's same-store Senior Housing - Managed portfolio showed sequential quarterly Cash NOI growth from $25.1 million in Q2 2025 to $28.6 million in Q2 2026, representing a 13.7% year-over-year increase. This reflects continued occupancy and rate recovery in the senior housing sector.

Sabra reported Net Debt of $2.41 billion and a Net Debt to Adjusted EBITDA ratio of 4.61x as of June 30, 2026. This leverage metric indicates the company's debt burden relative to its annualized operating cash flow.

Sabra reiterated its full-year 2026 guidance ranges for net income, FFO, and adjusted FFO. The Normalized FFO midpoint of $1.54 and Normalized AFFO midpoint of $1.60 imply approximately 7% and 8% year-over-year growth, respectively. The guidance assumes low-single-digit Cash NOI growth for the triple-net portfolio and low-to-mid-teens same-store Cash NOI growth for Senior Housing - Managed, among other assumptions.

Sabra disclosed that it has signed letters of intent to transition all 26 properties currently leased to Avamere to new operators. The transition is expected to complete in the second half of 2026 and will generate combined annualized cash rent of $53 million. Avamere represented 8.4% of Sabra's Annualized Cash NOI as of June 30, 2026, making this a material portfolio event.

Sabra outlined its AI and data platform strategy, including building a proprietary data foundation, piloting AI-assisted investment processes, and developing operator intelligence tools. The company is deploying AI to improve operational efficiency, accelerate deal velocity, and provide operators with better performance management capabilities. Near-term emphasis is on creating a unified data platform to shorten decision-making cycles.