Sabra Health Care REIT (SBRA) Q4 2024 earnings summary

Executive summary

• Delivered another strong quarter and full-year 2024, with operational and financial improvements and net income of $126.7 million, up from $13.8 million in 2023.

• Senior housing and skilled portfolios showed strengthening fundamentals, with labor challenges stabilizing and a focus on quality care and operator alignment.

• Management anticipates higher deal volume in 2025, building on a robust acquisition pipeline and successful 2024 strategy.

• ESG initiatives are integrated into business strategy, emphasizing sustainability, diversity, and stakeholder value.

• Portfolio strategy targets growing demand from an aging population, focusing on skilled nursing, senior housing, behavioral health, and needs-based care.

Financial highlights

• Q4 2024 FFO per diluted share: $0.36; Normalized FFO: $0.35; AFFO: $0.36; Normalized AFFO: $0.36.

• Full-year normalized FFO per share was $1.39 and normalized AFFO per share was $1.44, up over 7% year-over-year.

• SHOP cash NOI up 17.9% year-over-year; U.S. SHOP cash NOI up 15.2%, Canadian up 26.9%.

• Liquidity at year-end 2024 was approximately $980 million, including $60.5 million in cash.

• 399 investments across 60 operator relationships, with a weighted average remaining lease term of 7 years.

Outlook and guidance

• 2025 guidance: Net income per diluted share $0.67–$0.70; FFO $1.42–$1.45; Normalized FFO $1.43–$1.46; AFFO $1.47–$1.50; Normalized AFFO $1.48–$1.51.

• Midpoint guidance implies ~4% growth in normalized FFO and AFFO per share over 2024.

• Guidance assumes no new investments, dispositions, or capital markets activity in 2025.

• Triple-net portfolio NOI growth expected in low single digits; SHOP NOI growth in low to mid-teens, decelerating in 2H 2025.