Sabra Health Care REIT, Inc. (SBRA) Stock Analysis

Sabra Health Care REIT’s primary competitive advantage lies in its diversified portfolio and disciplined capital allocation. As of June 2025, Sabra owns 359 healthcare properties across the U.S. and Canada, spanning skilled nursing, senior housing (leased and managed), behavioral health, and specialty hospitals. This diversification reduces exposure to single-operator or regional risks—no tenant accounts for more than 10% of revenue.

Relative to peers such as Omega Healthcare Investors (OHI) and LTC Properties (LTC), Sabra’s portfolio is less concentrated: skilled nursing comprises 51% of annualized cash net operating income (NOI), versus 92% for CareTrust REIT (CTRE) and 60% for LTC. This mix provides greater resilience to regulatory or reimbursement shocks in any one segment.

Sabra’s operator relationships are another strength. The company partners with regional, mission-driven operators, supporting them with flexible capital and operational expertise. EBITDARM coverage ratios—a measure of tenant financial health—are robust: 2.27x for skilled nursing and 1.49x for senior housing-leased, both above sector averages.

Financially, Sabra maintains investment-grade metrics: net debt to adjusted EBITDA is 5.0x, and interest coverage is 4.4x. Liquidity is ample, with $1.2 billion available as of June 2025. The company’s prudent leverage and staggered debt maturities (no major maturities until 2028) further enhance stability.

While Sabra’s focus on healthcare real estate exposes it to sector-specific risks, its balanced asset mix, strong operator partnerships, and conservative balance sheet underpin a durable competitive edge.