Sabra Health Care REIT Inc Shares Fall 2.88% to $17.55 on May 21

Sabra Health Care REIT Inc (SBRA) shares fell 2.88% to $17.55 on May 21, down from its previous close of $18.07. The stock is 12.38% below its 52-week high of $20.03 and 26.53% above its 52-week low of $13.87. Analysts forecast an average target price of $19.58, with a high estimate of $21.00 and a low estimate of $18.00, implying an upside of 11.59% from the current price. The estimated GF Value for Sabra Health Care REIT Inc in one year is $16.05, suggesting a downside of 8.55% from the current price.

Sabra Health Care REIT Inc (SBRA) shares fell 2.88% to $17.55 on May 21, down from its previous close of $18.07. The stock is 12.38% below its 52-week high of $20.03 and 26.53% above its 52-week low of $13.87. Analysts forecast an average target price of $19.58, with a high estimate of $21.00 and a low estimate of $18.00, implying an upside of 11.59% from the current price. The estimated GF Value for Sabra Health Care REIT Inc in one year is $16.05, suggesting a downside of 8.55% from the current price [1].

Sabra Health Care REIT Inc, a healthcare-focused real estate investment trust with a market capitalization of $4.15 billion, has been navigating the post-pandemic landscape with resilience and strategic growth initiatives. The company maintains a "GREAT" financial health score according to InvestingPro analysis and continues to strengthen its portfolio and expand its presence in the senior housing market [2].

Sabra's financial performance has been steady, with the company reporting Core Funds From Operations (FFO) of $0.35 per share for the first quarter of 2025, aligning with some analysts’ expectations but falling slightly short of consensus. The company has achieved impressive revenue growth of 10.76% over the last twelve months, while trading at a P/E ratio of 29.08 [2].

In a notable development, JMP Securities upgraded SBRA to Market Outperform from Market Perform in January 2025, setting a price target of $20.00. This upgrade was based on the resolution of tenant operating issues from the pandemic, improving skilled nursing rent coverage ratios, and the expectation of substantial NOI growth in senior housing assets due to a development shortfall [2].

Sabra's portfolio has shown strong performance across its segments. The triple net segments have maintained high rent coverages, while the same-store SHOP has demonstrated impressive growth, with Net Operating Income (NOI) increasing by 17% year-over-year in the first quarter of 2025. The company has been actively pursuing growth opportunities, with a pipeline of SHOP deals worth approximately $200 million expected to close by the end of the second quarter of 2025 [2].

Sabra has maintained its quarterly dividend at $0.30 per share, currently offering an attractive annual yield of 6.88%. The company has demonstrated remarkable consistency in its dividend payments, maintaining them for 15 consecutive years according to InvestingPro analysis [2].

The senior housing sector is experiencing favorable trends, including a development shortfall that is expected to drive NOI growth in existing assets. Sabra is well-positioned to capitalize on these trends, with its strategic focus on increasing exposure to SHOP assets potentially leading to multiple expansion and attracting investor interest due to strong fundamentals [2].

References:
[1] https://www.investing.com/news/swot-analysis/sabra-health-care-reits-swot-analysis-strong-portfolio-fuels-stocks-potential-93CH-4063177
[2] https://www.investing.com/news/swot-analysis/sabra-health-care-reits-swot-analysis-strong-portfolio-fuels-stocks-potential-93CH-4063177