Key Highlights

  • Total revenues rose 31% to USD 249.6 million, led by resident fees of USD 143.2 million versus USD 92.0 million.
  • Rental revenues rose to USD 103.2 million, while interest and other income fell to USD 3.2 million.
  • Net income attributable to the company rose to USD 28.6 million from USD 22.5 million.
  • Total Liquidity was approximately USD 1.2 billion, and the nine-month Loan loss provision totaled USD 104.6 million.

Quarter in Numbers

Sabra Health Care REIT, Inc. (NASDAQ:SBRA), a healthcare real estate Investment trust, reported third-quarter 2026 total revenues of USD 249.6 million, up from USD 190.0 million. Rental and related revenues rose to USD 103.2 million from USD 85.4 million, with no material contingent rental income in either period, and leases that carry annual escalators based on the Consumer Price Index, subject to minimums and maximums of 1.0% to 5.0%. Resident fees and services rose 56% to USD 143.2 million from USD 92.0 million, and interest and other income fell to USD 3.2 million from USD 12.7 million.

Expenses were USD 214.9 million versus USD 162.0 million. Depreciation and amortization rose to USD 64.8 million from USD 48.5 million, interest expense was USD 29.2 million versus USD 28.9 million, senior housing operating portfolio expenses rose to USD 99.3 million from USD 65.9 million, and general and administrative expense rose to USD 15.6 million from USD 12.6 million. A provision for loan losses and other reserves was USD 2.4 million versus a recovery of USD 0.2 million.

Earnings

A net loss on sales of real estate of USD 8.1 million, versus USD 4.4 million, reduced other income. Income before unconsolidated joint ventures and income tax was USD 26.4 million versus USD 21.7 million. Income from unconsolidated joint ventures was USD 2.2 million versus USD 1.2 million, and income tax expense was USD 0.1 million. Net Income was USD 28.6 million versus USD 22.5 million, an increase of about 27%.

By our calculation, the senior housing operating portfolio generated net Operating Income of about USD 43.9 million, a Margin of about 30.7%, versus USD 26.1 million and 28.4% a year earlier, so the segment's growth contributed more to Revenue than to margin. Depreciation and amortization grew about 33.5% against revenue growth of 31.3%, while interest expense was nearly flat at USD 29.2 million, and triple-net portfolio operating expenses held at USD 3.7 million.

Nine-Month Results

For the nine months, total revenues were USD 707.2 million versus USD 562.7 million, but net income fell to USD 44.1 million from USD 128.4 million. The difference reflects a provision for loan losses and other reserves of USD 104.6 million versus a recovery of USD 0.6 million, partly offset by net gains on sales of real estate of USD 29.7 million versus USD 5.5 million. Depreciation and amortization was USD 174.3 million versus USD 135.6 million, and Impairment of real estate was USD 0.4 million versus USD 6.7 million.

Liquidity and Portfolio Indicators

The company had approximately USD 1.2 billion of liquidity at September 30, 2026, including unrestricted cash and available borrowing capacity. Items to track include resident fee growth and margin in the operating portfolio, interest and other income as loans are repaid or reserved, real estate sale results, depreciation growth from acquisitions and further loan loss provisions.