Sabra Health Care REIT, Inc. (SBRA): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how a real estate investment trust (REIT) navigates the complexities of the healthcare sector? Sabra Health Care REIT, Inc. (SBRA), a self-administered and self-managed REIT, specializes in owning and investing in real estate serving the healthcare industry, with a portfolio including skilled nursing facilities and senior housing communities across the U.S. and Canada. With an enterprise value of $6.5 billion and liquidity of $1.0 billion as of December 31, 2024, how does Sabra strategically operate and generate revenue in this vital sector? Keep reading to discover Sabra's history, ownership structure, mission, and the mechanics of its business model.

Sabra Health Care REIT, Inc. (SBRA) History

Sabra Health Care REIT, Inc. Founding Timeline

Year established

The company was established in 2010.

Original location

The company is headquartered in Irvine, California.

Founding team members

The key founding team members were:

• Milton H. Walker
• Harold W. Andrews

Initial capital/funding

The initial capital and funding details are not readily available in the provided search results.

Sabra Health Care REIT, Inc. Evolution Milestones

Sabra Health Care REIT, Inc. Transformative Moments

• Strategic Shift to Private-Pay Assets: Sabra has been actively shifting its investment focus towards private-pay senior housing and away from skilled nursing facilities, aiming for higher revenue stability and growth potential.
• Portfolio Repositioning: The company has been strategically repositioning its portfolio through acquisitions, dispositions, and operator transitions to optimize asset quality and performance. For instance, in 2023, Sabra sold 84 senior living communities for $730 million.
• Investment in Senior Living Operators: Sabra's investments in senior living operators like Enlivant demonstrate a commitment to strengthening relationships and aligning interests for improved operational performance.
• Focus on Capital Allocation: Sabra has been focused on disciplined capital allocation, prioritizing investments with the highest potential returns and maintaining a strong balance sheet.

To gain more insights into the investors of the company, check this out: Exploring Sabra Health Care REIT, Inc. (SBRA) Investor Profile: Who’s Buying and Why?

Sabra Health Care REIT, Inc. (SBRA) Ownership Structure

Sabra Health Care REIT, Inc. operates as a publicly traded company. Its shares are listed on the NASDAQ under the ticker symbol SBRA. Being a publicly traded entity, Sabra is subject to regulatory requirements and regular financial reporting, providing transparency to investors.

Sabra Health Care REIT, Inc.'s Ownership Breakdown

As of December 31, 2024, the ownership of Sabra Health Care REIT, Inc. is distributed among various types of shareholders. Here is a summary:

Sabra Health Care REIT, Inc.'s Leadership

The leadership team at Sabra Health Care REIT, Inc. is responsible for the strategic direction and operational management of the company. Key figures include:

• Rick Matros: Chair and Chief Executive Officer
• Michael Costa: Chief Financial Officer
• Darrin Smith: Executive Vice President, Investments

These individuals, along with other members of the executive team, guide Sabra Health Care REIT, Inc.'s strategy and operations in the healthcare sector. To gain more insight into the values that drive their leadership, explore Mission Statement, Vision, & Core Values of Sabra Health Care REIT, Inc. (SBRA).

Sabra Health Care REIT, Inc. (SBRA) Mission and Values

Sabra Health Care REIT, Inc. focuses on investing in real estate serving the healthcare industry, demonstrating a commitment to providing quality facilities for residents and care providers, which is reflected in its mission and values.

Sabra Health Care REIT, Inc.'s Core Purpose

Official mission statement

While Sabra Health Care REIT, Inc. does not have a formal, publicly declared mission statement, its core purpose can be inferred from its operational activities and investment focus. This inferred mission revolves around:

• Optimizing investments in healthcare-related properties to ensure stable and growing returns for shareholders.
• Supporting healthcare operators by providing them with the real estate infrastructure needed to deliver high-quality care.
• Maintaining high occupancy rates and efficient operations across its portfolio to foster long-term sustainability and profitability.

Sabra's activities reflect a commitment to the healthcare sector, emphasizing responsible investment and support for quality care. For further insights into Sabra Health Care REIT, Inc.'s investor profile, see: Exploring Sabra Health Care REIT, Inc. (SBRA) Investor Profile: Who’s Buying and Why?

Vision statement

Similarly, Sabra Health Care REIT, Inc. does not explicitly publish a vision statement. However, based on its strategic initiatives and long-term goals, a deduced vision statement could be:

• To be a leading real estate investment trust specializing in the healthcare sector, recognized for its financial performance, operational excellence, and commitment to supporting quality healthcare services.
• Expanding and diversifying its portfolio to include a wide range of healthcare properties, ensuring resilience and adaptability in a changing market.
• Fostering strong, collaborative relationships with operators and other stakeholders to drive innovation and improve the delivery of care.

Company slogan/tagline

There is no officially recognized slogan or tagline for Sabra Health Care REIT, Inc. Nevertheless, an appropriate tagline that encapsulates its business approach might be:

• 'Investing in Health, Building Value.'
• 'Supporting Care, Delivering Returns.'
• 'The Foundation for Quality Healthcare.'

These potential taglines reflect Sabra's dual focus on supporting the healthcare industry and generating value for its investors.

Sabra Health Care REIT, Inc. (SBRA) How It Works

Sabra Health Care REIT, Inc. operates as a self-administered real estate investment trust (REIT) that invests in income-producing healthcare-related properties, including skilled nursing/transitional care facilities, senior housing, and specialty hospitals. The company primarily makes money by leasing these properties to healthcare operators under various lease agreements and, to a lesser extent, through mortgage loans and other investments.

Sabra Health Care REIT, Inc.'s Product/Service Portfolio

Sabra Health Care REIT, Inc.'s Operational Framework

Sabra's operational framework revolves around strategic property acquisitions, proactive asset management, and disciplined capital allocation. Here's a breakdown:

• Property Acquisition: The company identifies and acquires healthcare properties that align with its investment criteria, focusing on properties with strong operating histories, favorable demographics, and growth potential.
• Lease Management: Sabra actively manages its lease portfolio, working closely with tenants to ensure properties are well-maintained and operated effectively. They also monitor tenant financial performance to mitigate risk.
• Capital Allocation: The company allocates capital to the most promising investment opportunities, including property acquisitions, renovations, and new developments. They also use capital to repay debt, repurchase shares, and pay dividends.
• Financial Management: Sabra maintains a conservative balance sheet with a focus on managing debt levels and interest rate risk. They also use various financial tools to hedge against market volatility.

Sabra Health Care REIT, Inc.'s Strategic Advantages

Sabra Health Care REIT, Inc. has several strategic advantages that enable it to succeed in the competitive healthcare real estate market:

• Diversified Portfolio: Sabra has a diversified portfolio of healthcare properties across various geographic locations and property types, which reduces its reliance on any single market or operator.
• Experienced Management Team: The company has an experienced management team with a proven track record of success in the healthcare real estate industry.
• Strong Relationships: Sabra has strong relationships with leading healthcare operators, which provides it with access to attractive investment opportunities.
• Access to Capital: As a publicly traded REIT, Sabra has access to a variety of capital sources, which allows it to fund its growth and investment activities.

To gain more insights into the investors behind Sabra Health Care REIT, Inc., check out this related article: Exploring Sabra Health Care REIT, Inc. (SBRA) Investor Profile: Who’s Buying and Why?

Sabra Health Care REIT, Inc. (SBRA) How It Makes Money

Sabra Health Care REIT, Inc. primarily makes money by investing in and financing real estate serving the healthcare industry. This includes properties like skilled nursing facilities, senior housing, and hospitals, from which they derive income through leases and loans.

Sabra Health Care REIT, Inc.'s Revenue Breakdown

Here's a breakdown of Sabra Health Care REIT, Inc.'s revenue streams:

Sabra Health Care REIT, Inc.'s Business Economics

Sabra's business economics are influenced by several factors:

• Occupancy Rates: Higher occupancy rates in their facilities lead to increased rental income.
• Lease Agreements: The structure and terms of their lease agreements, including rent escalations, significantly impact revenue.
• Interest Rates: As a REIT that provides financing, interest rates affect their interest income and borrowing costs.
• Healthcare Industry Trends: Changes in healthcare regulations, reimbursement rates, and demographics (aging population) all play a crucial role.

Sabra Health Care REIT, Inc.'s Financial Performance

Key aspects of Sabra Health Care REIT, Inc.'s financial performance include:

• Funds From Operations (FFO): A critical metric for REITs, FFO indicates the cash flow generated from their operations. For the year 2024, Sabra reported an FFO of $1.80 per share.
• Revenue: Sabra Health Care REIT, Inc. reported total revenue of $302.7 million for the fourth quarter of 2024.
• Net Income/Loss: Demonstrating profitability is essential. The net loss for the fourth quarter of 2024 was $14.7 million, or $0.06 per share.
• Dividend Payouts: REITs are known for dividends. Sabra's dividend payout ratio is closely watched by investors. The company declared a quarterly cash dividend of $0.30 per share of common stock.
• Portfolio Diversification: Diversifying across different types of healthcare facilities and operators reduces risk.
• Balance Sheet Strength: A strong balance sheet with manageable debt levels is vital for financial stability. As of December 31, 2024, the Company had cash and cash equivalents of approximately $163.8 million and available borrowing capacity of $770.0 million under its revolving credit facility.

To gain a deeper understanding of Sabra Health Care REIT, Inc.'s financial health, you can explore this resource: Breaking Down Sabra Health Care REIT, Inc. (SBRA) Financial Health: Key Insights for Investors

Sabra Health Care REIT, Inc. (SBRA) Market Position & Future Outlook

Sabra Health Care REIT is navigating a dynamic healthcare real estate market, focusing on strategic investments and portfolio management to drive growth. The company's future outlook is shaped by its ability to capitalize on emerging opportunities while mitigating industry-specific risks.

Competitive Landscape

The competitive landscape for healthcare REITs is diverse, with several key players vying for market share. Here's a snapshot of how Sabra stacks up against its competitors:

Note: Market share percentages are approximate and based on the latest available data, reflecting the competitive dynamics in the healthcare REIT sector.

Opportunities & Challenges

Sabra Health Care REIT faces a mix of opportunities and challenges that will shape its strategic direction.

Industry Position

Sabra Health Care REIT maintains a notable position within the healthcare REIT sector. Here are some key aspects of its industry standing:

• Portfolio diversification across different healthcare property types.
• Focus on building strong relationships with operators to ensure stable rental income.
• Active management of its portfolio to optimize performance and mitigate risks.

For more insights into the company's core values and strategic vision, explore: Mission Statement, Vision, & Core Values of Sabra Health Care REIT, Inc. (SBRA).