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Here are 1-3 brief analogies for Sabra Health Care REIT (SBRA):

• Think of it as the McDonald's of healthcare properties – they own hospitals and nursing homes and lease them out.
• It's like Public Storage, but they own and lease hospitals and senior care facilities instead of storage units.

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• Skilled Nursing Facility Leasing: Leasing of properties that provide post-acute care and long-term skilled nursing services to third-party operators.
• Senior Housing Community Leasing: Leasing of properties offering independent living, assisted living, and memory care services to seniors.
• Behavioral Health Facility Leasing: Leasing of properties focused on mental health and substance use disorder treatment services.
• Real Estate Debt Investments: Providing mortgage loans and other forms of secured financing to healthcare operators and owners.

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Sabra Health Care REIT (SBRA) is a Real Estate Investment Trust (REIT) that primarily owns and leases healthcare properties to third-party operators. Therefore, its major customers are other companies, not individuals.

Based on their recent financial filings (as of Q1 2024), Sabra's major customer companies (tenants) are:

• Ensign Group, Inc. (ENSG)
• Avamere Group (private company)
• Holiday Retirement (private company)
• Signature Healthcare (private company)
• Genesis Healthcare, Inc. (GEN)

These companies operate the skilled nursing facilities, senior housing communities, and other healthcare properties owned by Sabra.

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Deloitte & Touche LLP

Goodwin Procter LLP

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Richard K. Matros, Chief Executive Officer, President and Chairman of the Board

Richard K. Matros has served as Sabra's President and Chief Executive Officer since May 2010, and as Chair of the Board since November 2010. Prior to Sabra's formation in 2010, he was Chairman and Chief Executive Officer of Sun Healthcare Group, Inc. from 2001, where he led the company out of bankruptcy. Mr. Matros founded and served as Chief Executive Officer and President of Bright Now! Dental from 1998 to 2000, remaining a Director until its sale in 2010. He was also a Principal and Partner of CareMeridian, LLC from 1998 until the sale of its operations in 2006. From 1988 to 1997, he held CEO and other executive positions at Care Enterprises, Inc. and Regency Health Services, Inc., both publicly held long-term care operators.

Michael Costa, Chief Financial Officer, Secretary and Executive Vice President

Michael Costa has served as Sabra's Chief Financial Officer, Secretary and Executive Vice President since January 2022. He previously served as Sabra's Chief Accounting Officer from January 2021 through December 2021, and as Executive Vice President – Finance from August 2017 through December 2021. From Sabra's inception in 2010 until June 2016, he was the company's Controller. Mr. Costa has over 20 years of experience in commercial real estate finance and accounting, with previous roles at KBS Realty Advisors and Ernst & Young's Real Estate Assurance practice.

Talya Nevo-Hacohen, Chief Investment Officer, Treasurer and Executive Vice President

Talya Nevo-Hacohen has served as Sabra's Chief Investment Officer, Treasurer and Executive Vice President since November 2010. She is expected to retire effective December 31, 2025. From August 2008 to February 2009, Ms. Nevo-Hacohen was a Managing Director with Cerberus Real Estate Capital Management, LLC, an affiliate of Cerberus Capital Management, L.P., a private investment firm. From 2003 to 2006, she served as Senior Vice President—Capital Markets and Treasurer for HCP, Inc. (now Healthpeak Properties Inc.). Prior to that, from 1993 to 2003, she worked for Goldman Sachs & Co. as a Vice President in the investment banking and finance, operations, and administration divisions. She also advised private real estate developers and operators on acquisitions, dispositions, and capital raising between 2006-2008 and 2009-2010.

Jessica Flores, Chief Accounting Officer and Executive Vice President

Jessica Flores has been the Chief Accounting Officer and Executive Vice President of Sabra since 2024. Before this role, she served as Sabra's Senior Vice President of Finance and Controller. Ms. Flores possesses 15 years of experience in accounting, finance, and real estate investments, including previous positions at KBS Realty Advisors and Deloitte & Touche LLP.

Peter Nyland, Executive Vice President, Asset Management

Peter Nyland has served as Sabra's Executive Vice President, Asset Management since joining the company in January 2013. Prior to Sabra, he served as Senior Vice President Purchasing, Asset Development and Real Estate at Sun Healthcare Group, and President of Americare Health Services, a subsidiary of Sun Healthcare Group, beginning in 2002. From 1983 to 2002, Mr. Nyland held various senior-level positions at Beverly Enterprises, including Vice President of Strategic Development and Vice President of Respiratory Services.

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Here are the key risks to Sabra Health Care REIT (SBRA):

1. Tenant Concentration and Operator Performance: Sabra Health Care REIT faces significant risk due to its high exposure to its top three tenants, which collectively account for a substantial portion of its Net Operating Income (NOI). Financial difficulties, mismanagement, or operational challenges experienced by these key tenants could severely impact Sabra's financial performance and outlook. Furthermore, the company's success is directly tied to its tenants' ability to effectively manage their facilities, meaning factors such as declining occupancy rates, increasing operating expenses, or issues with regulatory compliance at the tenant level can negatively affect Sabra's rental income.
2. Interest Rate Risk and Indebtedness: Sabra carries a substantial amount of indebtedness, totaling approximately $2.4 billion as of December 31, 2024, and maintains the capacity to incur additional debt. An increase in market interest rates could lead to higher interest costs on its existing borrowings and any future debt, consequently impacting its profitability and stock valuation. The ability to refinance this debt on favorable terms is critical, as a failure to do so could result in increased interest expenses and reduced overall profitability.
3. Regulatory Changes and Healthcare Industry Risks: The healthcare sector, in which Sabra's tenants operate, is subject to extensive and evolving regulations. Changes in governmental policies, particularly those related to reimbursement rates under Medicare and Medicaid, can significantly influence the financial health and operational performance of Sabra's tenants. This, in turn, can have a direct adverse effect on Sabra's rental income and overall financial condition.

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1. **Accelerating Shift to Home and Community-Based Care:** There is a significant and increasing trend towards providing healthcare services in less institutional settings, such as patients' homes or outpatient clinics. This is driven by payer incentives (including Medicare and private insurers), advancements in technology (like telehealth and remote monitoring), and patient preferences for care in more familiar environments. This shift directly reduces the demand for skilled nursing facilities and traditional senior housing properties, which constitute a substantial portion of Sabra's portfolio. The consequence for Sabra is potentially lower occupancy rates in their properties, downward pressure on rental income, and reduced property valuations as the market adjusts to changing healthcare delivery models.

2. **Persistent and Escalating Labor Shortages for Healthcare Providers:** Sabra's tenants, who operate the healthcare facilities, are contending with severe and ongoing shortages of critical skilled labor, including registered nurses, certified nursing assistants (CNAs), and other essential healthcare professionals. This necessitates higher wage costs, increased reliance on more expensive agency staff, and can lead to operational challenges such as reduced occupancy capacity (due to insufficient staffing levels) and declining profitability for the operators. These acute operational and financial pressures on tenants directly impact their ability to reliably pay rent to Sabra, increasing the risk of lease defaults or requests for rent concessions.

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Sabra Health Care REIT (SBRA) invests in a diversified portfolio of healthcare real estate. The addressable markets for their main products and services in the U.S. are sized as follows:

• Skilled Nursing/Transitional Care Facilities: The U.S. market for skilled nursing facilities is estimated to be approximately USD 202.4 billion in 2025 and is anticipated to reach USD 279.9 billion by 2035.
• Senior Housing: The U.S. senior living market size was estimated at USD 907.59 billion in 2024 and is expected to reach USD 1.33 trillion by 2033.
• Acute Care Hospitals: The U.S. acute hospital care market size was estimated at USD 1.27 trillion in 2024 and is projected to be worth around USD 2.43 trillion by 2034.
• Behavioral Health Facilities: The U.S. behavioral health market size is estimated to be USD 96.9 billion in 2025 and is expected to be worth USD 151.62 billion by 2034.
• Medical Office Buildings: The U.S. medical office buildings market is estimated at USD 22.4 billion in 2024.

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Sabra Health Care REIT (SBRA) is positioned for future revenue growth over the next two to three years, driven by several strategic initiatives and favorable market trends:

1. Expansion of the Senior Housing Operating Portfolio (SHOP): Sabra is strategically increasing its exposure to managed senior housing. The company has grown its SHOP portfolio from 20% to 26% of its total assets and aims to reach 40%. This shift capitalizes on strong demographic trends, particularly the growing elderly population, which fuels demand for senior care services.
2. Increased Occupancy and Revenue Per Available Room (RevPAR) in Senior Housing: Sabra has demonstrated robust performance in its senior housing portfolio. In the third quarter of 2025, same-store managed senior housing Cash Net Operating Income (NOI) increased by 13.3% year-over-year. Additionally, RevPAR for the same period grew 3.4% year-over-year in the U.S. portfolio and 5.8% in the Canadian portfolio, indicating a growing customer base and pricing power. Overall portfolio occupancy rose to 86.8%.
3. Strategic Acquisitions and Investments: Sabra is actively pursuing acquisitions, particularly in managed senior housing, to expand its asset base. In Q3 2025, the company invested $237 million in managed senior housing properties, including the acquisition of operations for four previously leased facilities. Total closed and awarded investments for 2025 are projected to exceed $550 million, predominantly in the senior housing segment, which will directly contribute to future revenue streams.
4. Stabilization and Recovery in Skilled Nursing Facilities (SNFs): Despite a strategic pivot towards senior housing, skilled nursing remains a core part of Sabra’s portfolio. The company noted improvements in occupancy, skilled mix, and rent coverage within its SNF segment during Q3 2025. Furthermore, positive trends in reimbursement rates, such as increases in Medicaid and Medicare rates, contribute to the financial stability of operators, which can lead to consistent rental income and potential growth for Sabra.

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Share Repurchases

• Sabra Health Care REIT did not repurchase any shares of its common stock for the years ended December 31, 2024, 2023, and 2022.

Share Issuance

• In the third quarter of 2025, Sabra issued 9.6 million shares to settle outstanding forward sale agreements, generating net proceeds of $165.0 million.
• On August 5, 2025, the company launched a new $750 million at-the-market (ATM) program, which included utilizing a forward feature for the sale of up to 3.2 million shares at a weighted average price of $18.45 per share, net of commissions.
• The number of common shares outstanding increased from 231,159,401 as of February 14, 2023, to 237,936,460 as of April 28, 2025, indicating ongoing issuance activity.

Outbound Investments

• In the third quarter of 2025, Sabra acquired six managed senior housing properties for $217.5 million and purchased the operations of four additional properties for $19.7 million.
• Year-to-date through the third quarter of 2025, Sabra closed investments totaling $421.9 million, with an additional $120 million in senior housing investments awarded.
• Sabra aims to exceed $500 million in acquisitions for 2025, with a robust investment pipeline primarily focused on Senior Housing Operating Portfolio (SHOP) assets, and a strategic goal to increase its SHOP segment to 40% of its total portfolio by unit count.

Capital Expenditures

• Aggregate capital expenditures for the years ended December 31, 2024, 2023, and 2022 were $54.7 million, $84.9 million, and $54.5 million, respectively.
• As of December 31, 2024, Sabra committed approximately $16 million for future capital expenditures related to triple-net operating lease facilities, with about $6 million expected to be spent within the next 12 months, primarily for property improvements.
• Approximately half of the $1 billion investment required to achieve the SHOP portfolio's growth target to 30% of annualized cash net operating income is expected to be made by the end of 2025.