Sabra Healthcare REIT Inc . (NASDAQ:SBRA) stock reached a 52-week high this week, touching $19.32 amid a broader market rally. This milestone reflects a significant recovery for the healthcare-focused real estate investment trust, which has seen a remarkable 42.36% increase in its stock price over the past year. Investors have shown increased confidence in the company's portfolio of properties, which primarily include skilled nursing and senior housing facilities. The 52-week high represents a notable turnaround from earlier periods of volatility, signaling a potentially robust financial performance and a positive outlook for the company's future.
In other recent news, Sabra Healthcare REIT Inc. has been the subject of several notable developments. Mizuho has raised its price target for the company from $18.00 to $20.00, maintaining an Outperform rating. This adjustment comes as the firm recalibrates the adjusted funds from operations (AFFO) estimates for the upcoming years, now set at $1.42 for 2024 and $1.51 for 2025.
Truist Securities also increased its price target for Sabra Healthcare to $18 from $16, based on the company's funds from operations (FFO) multiple. The firm suggests that Sabra Healthcare's relative discount could narrow, especially if the company's near-term growth meets projections.
Sabra Healthcare reported a 17.7% increase in cash NOI in the second quarter of 2024, improved occupancy rates in senior housing and skilled nursing facilities, and a quarterly cash dividend of $0.30 per share. The company also raised its full-year 2024 guidance, indicating confidence in continued growth.
The company's investment pipeline is robust, with approximately $0.75 billion of deals under review. Sabra's focus is on small, digestible deals rather than large portfolio acquisitions. The company projects a steady-state portfolio growth of 5% in AFFO per share once the managed portfolio stabilizes. These are the recent developments in the company.
InvestingPro Insights
Sabra Healthcare REIT's recent achievement of a 52-week high is further supported by several key metrics and insights from InvestingPro. The company's stock has demonstrated impressive momentum, with a 54.43% total return over the past year and a strong 40.02% return in the last six months. This aligns with the article's mention of the 42.36% increase in stock price over the past year.
InvestingPro data reveals that Sabra's revenue growth stands at 22.99% for the last twelve months as of Q2 2024, indicating solid financial performance. The company's EBITDA growth of 28.51% over the same period further underscores its operational efficiency and profitability.
Two notable InvestingPro Tips highlight Sabra's financial strength and investor appeal. Firstly, the company has maintained dividend payments for 14 consecutive years, which is particularly attractive for REIT investors seeking stable income. Secondly, Sabra's liquid assets exceed short-term obligations, suggesting a strong balance sheet and financial stability.
These insights complement the article's narrative of Sabra's recovery and investor confidence in its portfolio of healthcare properties. For readers interested in a deeper analysis, InvestingPro offers 9 additional tips that could provide further context to Sabra's recent performance and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.