Sabra Health Care REIT, Inc. (SBRA): Marketing Mix Analysis [Dec-2025 Updated]

You're digging into Sabra Health Care REIT, Inc. (SBRA), and trying to fit their business into the classic 4Ps framework-it's not exactly selling soda, but the strategy is definitely there. Honestly, for a healthcare REIT, the 'Product' is their 363-property portfolio, which is strategically leaning into the SHOP model, and the 'Price' is really about shareholder returns, like that $1.20 annualized dividend yielding about 6.2% late in 2025. We'll break down how their geographic spread across the US and Canada and their recent Baa3 credit upgrade from Moody's in September directly feed into their capital structure and investor 'Promotion,' especially with 2025 Normalized AFFO guidance sitting between $1.49 to $1.51 per share. Let's look at the numbers driving this needs-based real estate play.

Sabra Health Care REIT, Inc. (SBRA) - Marketing Mix: Product

The product Sabra Health Care REIT, Inc. offers is a portfolio of specialized healthcare real estate assets, structured through various operating models to generate income. This offering is defined by the composition, quality, and operational structure of its physical properties.

As of Q3 2025, Sabra Health Care REIT, Inc. maintained a diversified portfolio consisting of 363 real estate properties held for investment across 60 relationships. This portfolio is intentionally balanced to capture both stable contractual rent increases and higher growth potential from direct operational participation. The company is actively managing this mix to align with favorable demographic trends, specifically the growing population over 80.

The core assets are segmented across several distinct healthcare property types. The asset class concentration, based on Annualized Cash NOI as of September 30, 2025, shows the following distribution:

Sabra Health Care REIT, Inc. employs a dual operating model to manage these assets. This involves:

• Triple-Net (NNN) Leases: Tenants are responsible for property operating costs, providing predictable cash flow.
• Managed Senior Housing (SHOP): Communities operated by third-party property managers under agreements where Sabra Health Care REIT, Inc. participates directly in the financial performance, capturing NOI growth.

The strategic direction involves a significant shift to increase the managed senior housing concentration for enhanced growth. As of Q3 2025, the Senior Housing - Managed (SHOP) segment accounted for approximately 26% of the total portfolio unit count. The company previously increased this concentration from 20% to 30% in the second quarter of 2025. The stated future target is to increase the SHOP segment to represent 40% of the total portfolio by unit count. This strategic pivot is supported by recent activity; in Q3 2025, Sabra Health Care REIT, Inc. acquired six managed senior housing properties for $217.5 million and converted four properties from triple-net lease structures to the SHOP segment for $19.7 million. The company expects total 2025 acquisitions to exceed $500 million, with an estimated 90% to 95% of the existing investment pipeline weighted toward SHOP assets.

For operational context on the product performance as of September 30, 2025, you can see the occupancy and coverage metrics:

• SNF/TC Occupancy: 83%; EBITDARM Coverage: 2.35x.
• SH-Leased Occupancy: 89%; EBITDARM Coverage: 1.52x.
• Behavioral Health/Hospital/Other Occupancy: 76%; EBITDARM Coverage: 3.90x.

Cash NOI from the managed senior housing portfolio specifically totaled $30.1 million for the third quarter of 2025. The skilled nursing exposure, which is primarily NNN, dropped below 50% of annualized cash NOI for the first time. Finance: draft 13-week cash view by Friday.

Sabra Health Care REIT, Inc. (SBRA) - Marketing Mix: Place

You're looking at how Sabra Health Care REIT, Inc. (SBRA) makes its real estate assets available to the healthcare operators who need them. For a REIT, 'Place' is about geographic reach, asset concentration, and the physical location of its management structure.

The geographic footprint for Sabra Health Care REIT, Inc.'s investment portfolio spans the United States and Canada. This broad reach across two countries helps mitigate regulatory risk tied to any single state or provincial jurisdiction. The company manages a decentralized asset base from its corporate headquarters, which is located at 1781 Flight Way, Tustin, California. This location serves as the administrative and financial operations hub for the entire portfolio.

Sabra Health Care REIT, Inc. maintains a focus on needs-based healthcare real estate, which is directly driven by long-term demographic trends. The demand underpinning this strategy is significant; for instance, the population aged 85 or older is projected to grow at an annual rate of 4% through 2040. This sustained demand supports the company's investment in specific property types.

As of September 30, 2025, the consolidated real estate properties held for investment totaled 36,998 beds/units across the United States and Canada. The company manages this portfolio through relationships with operators, reporting 59 operator relationships as of March 31, 2025. The distribution across property types shows a clear strategic weighting:

The Senior Housing - Managed (SHOP) segment is a key area of focus for distribution strategy, with management actively increasing its concentration. As of the third quarter of 2025, this segment included 83 properties spanning 8,282 units. The company has an explicit goal to increase its SHOP concentration to 40% of the total portfolio by unit count in the future, having already moved from 20% to 30% earlier in 2025. This shift in distribution strategy prioritizes assets that are a much stronger driver of earnings growth compared to the triple-net lease portfolio.

The distribution strategy involves both leasing and direct management agreements, which dictates how the properties are made available to the end-user:

• Leasing properties to tenants under triple-net lease agreements.
• Operating senior housing communities pursuant to property management agreements (SHOP segment).
• Holding investments in loans receivable and preferred equity.

The total number of real estate properties held for investment as of September 30, 2025, was 363.

Sabra Health Care REIT, Inc. (SBRA) - Marketing Mix: Promotion

For Sabra Health Care REIT, Inc. (SBRA), promotion heavily relies on formal financial communications, which serve to assure the market of its stability and growth trajectory. You see this focus because, as a REIT, the primary audience for promotional messaging is the investment community.

Investor relations and public disclosures are the core of this communication strategy. Sabra Health Care REIT, Inc. (SBRA) uses quarterly earnings releases and conference calls to disseminate key performance indicators and strategic updates. For instance, the Third Quarter 2025 results were announced on November 5, 2025, followed by a conference call on November 6, 2025, where management discussed performance and outlook. Similarly, the Second Quarter 2025 results were released on August 4, 2025. These scheduled events, along with investor decks and supplemental data available on their investor relations site, are the primary vehicles for conveying the company's value proposition.

The company actively promotes its balance sheet strength through capital raising activities. Sabra Health Care REIT, Inc. (SBRA) raised capital via an At-The-Market (ATM) equity program, which is a key promotional tool signaling access to capital markets. Specifically, during the third quarter of 2025, Sabra Health Care REIT, Inc. (SBRA) issued 9.6 million shares in settlement of outstanding forward sale agreements. This settlement generated net proceeds of $165.0 million, based on a weighted average price of $17.26 per share, net of commissions. Furthermore, on August 5, 2025, Sabra Health Care REIT, Inc. (SBRA) entered into a new $750 million ATM Program, providing significant capacity for future funding needs.

Strategic portfolio management is promoted as a driver of asset quality and operational improvement. A significant move involved the strategic portfolio transitions, where 21 managed senior housing properties formerly operated by Holiday were transitioned to three trusted operators on April 1, 2025. Discovery Senior Living assumed operations of 11 properties, Inspirit Senior Living took five, and Sunshine Retirement Living took the remainder. This realignment is promoted as a way to enhance long-term asset value and diversify management within their largest senior housing portfolio.

A major promotional highlight is the validation from credit rating agencies, which directly impacts perceived debt access and stability. Moody's Ratings upgraded Sabra Health Care REIT, Inc. (SBRA)'s senior unsecured notes rating to Baa3 from Ba1 and assigned a Baa3 issuer rating on September 10, 2025, assigning a Stable outlook. This upgrade to investment grade is heavily promoted as a direct result of sound operating performance and prudent financial management. As of September 30, 2025, the company reported its Net Debt to Adjusted EBITDA ratio at 4.96x, a metric Moody's cited as improved, compared to 5.1x for the last twelve months ending 2Q25.

You can see how these operational and financial achievements are packaged for the investment community:

The company also promotes its current operational performance through key coverage ratios reported publicly. These figures help assure stakeholders about the underlying asset health:

• EBITDARM Coverage for Skilled Nursing/Transitional Care: 2.35x for Q3 2025.
• EBITDARM Coverage for Senior Housing - Leased: 1.52x for Q3 2025.
• EBITDARM Coverage for Behavioral Health, Specialty Hospitals and Other: 3.90x for Q3 2025.
• Same store managed senior housing Cash NOI increased 13.3% year-over-year in Q3 2025.
• The dividend declared on November 5, 2025, represented a payout of 79% of the third quarter normalized AFFO per share.

The narrative around the portfolio transition also included specific performance data; excluding the 16 properties formerly operated by Holiday that remain in the same store pool, same store Cash NOI growth was 15.9% year-over-year in Q3 2025. Finance: draft 13-week cash view by Friday.

Sabra Health Care REIT, Inc. (SBRA) - Marketing Mix: Price

Price, in the context of Sabra Health Care REIT, Inc. (SBRA), is largely reflected in the yield offered to equity holders and the underlying financial health that supports those distributions and debt obligations. You see this directly in the stated return metrics for investors. As of late 2025, Sabra Health Care REIT, Inc. (SBRA) maintained an annualized dividend of $1.20 per share, which translated to a current dividend yield of approximately 6.2%.

Looking ahead, the company's operational performance is projected to support this pricing structure. The full-year 2025 Normalized AFFO guidance is set between $1.49 to $1.51 per diluted share. This guidance was reaffirmed following strong Q3 2025 results, where the quarterly dividend of $0.30 per share represented a payout of 79% of that quarter's normalized AFFO of $0.38 per share.

The cost of capital and debt management are critical components that influence the overall pricing strategy and perceived value of the equity. Sabra Health Care REIT, Inc. (SBRA) has actively managed its balance sheet, achieving metrics that suggest investment-grade standing and favorable financing terms.

The structure of the underlying assets also plays a role in the stability of the price, as it dictates the predictability of the cash flow used for distributions. Lease structures include fixed rent escalators, providing predictable cash flow growth. The operational health of the underlying properties, particularly the triple-net segment, reinforces the confidence in this pricing.

• Triple-net Skilled Nursing EBITDARM coverage hit a post-pandemic high of 2.35x in Q3 2025.
• Senior Housing - Leased EBITDARM coverage was 1.52x in Q3 2025.
• Behavioral Health, Specialty Hospitals and Other EBITDARM coverage was 3.90x in Q3 2025.
• The next material debt maturity is scheduled for 2028.