A Look at Sabra Health Care REIT’s (SBRA) Valuation Following Senior Housing Growth, Acquisitions, and Moody’s Upgrade

Sabra Health Care REIT (SBRA) reported third-quarter results that highlight its growth in managed senior housing, with $217.5 million in acquisitions and a 13% increase in same-store cash NOI compared to the previous year.

The company’s strategic focus on senior housing appears to be paying off. Sabra also earned a credit rating upgrade from Moody’s and raised its 2025 earnings guidance, while maintaining the quarterly dividend.

See our latest analysis for Sabra Health Care REIT.

Sabra Health Care REIT’s recent string of acquisitions and upgrades has caught the market’s attention, with the stock now trading at $18.88. The momentum is reflected in a 10.7% share price return year-to-date. The company’s three-year total shareholder return of 83% demonstrates that even with some quarterly bumps, long-term investors have been amply rewarded.

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With strong acquisition momentum, improved guidance, and a recently upgraded credit rating, investors may wonder whether Sabra’s impressive run is already reflected in the current price or if the stock still presents a compelling buying opportunity.

Most Popular Narrative: 9% Undervalued

With analysts pegging fair value at $20.82, Sabra Health Care REIT’s last close of $18.88 puts it below consensus targets, inviting deeper review of what justifies this pricing gap.

Persistent and accelerating demand for senior housing, assisted living, and memory care driven by the aging U.S. population, specifically the Baby Boomer cohort, continues to outpace new supply due to high barriers to development. This supports higher occupancy, rising rents, and long-term revenue and cash NOI growth across Sabra's property portfolio.

Read the complete narrative.

Why is the outlook so bullish? The narrative’s punch comes from strong sector demand and big calls on cash flow growth. But a couple of forecast levers are doing the hard work behind this valuation. Want to know which future numbers analysts believe will push Sabra’s price higher? Dive in to see the projections and logic that shape this consensus view.

Result: Fair Value of $20.82 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, execution risks around new operator transitions and unexpected changes in reimbursement rates could quickly challenge even the most optimistic projections for Sabra.

Find out about the key risks to this Sabra Health Care REIT narrative.

Story Continues

Build Your Own Sabra Health Care REIT Narrative

If you see things differently or want to dig deeper, you can quickly build your own perspective and narrative in just a few minutes. Do it your way.

A great starting point for your Sabra Health Care REIT research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SBRA.

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