Sabra Health Care REIT, Inc. Q4 FY2025 earnings call

• Sabra's NOI growth for the SHOP portfolio, excluding transition facilities, is expected to be sturdy in 2026. The transition facilities are expected to add to overall SHOP performance. • Guidance for 2026: net income $0.60 to $0.64, FFO and normalized FFO $1.49 to $1.53, AFFO and normalized AFFO $1.55 to $1.59, with midpoint expecting ~5% increase in normalized FFO and AFFO over 2025. • Pipeline is robust: completed ~$450,000,000 in investments in 2025, with $240,000,000 of awarded deals closing in Q1 and early Q2 2026. • Operational results impressive: SHOP operational performance had strong occupancy gains and increased cash NOI margins; same-store senior housing had occupancy gains and margin improvement; skilled nursing portfolio had increased rent coverage and occupancy; top 10 triple net relationships showed strong performance. • Senior housing portfolio: managed senior housing portfolio had sequential revenue and cash NOI growth; invested over $150,000,000 adding four properties, with additional assets closed and awarded; same-store managed senior housing portfolio had revenue growth, occupancy increase, etc.

For the fourth quarter of 2025, normalized FFO totaled $91,200,000 and normalized AFFO was $95,200,000. The managed senior housing portfolio, including non-stabilized communities and joint venture assets at share, had sequential revenue growth of 15.8%, cash NOI growth of 18.4% with a 60 basis point margin expansion. The triple net portfolio's cash NOI decreased $1,300,000 from the third quarter, while the managed senior housing portfolio's cash NOI increased $5,500,000, resulting in a net sequential increase of $4,200,000.

• Full-year 2026 guidance on diluted per share basis: net income $0.60 to $0.64, FFO and normalized FFO $1.49 to $1.53, AFFO and normalized AFFO $1.55 to $1.59. • Midpoint expects ~5% increase in normalized FFO and normalized AFFO over 2025. • Assumptions: cash NOI growth for triple net portfolio at low single digit midpoint, no additional tenants on cash or moved to accrual for revenue recognition, same-store managed senior housing portfolio average cash NOI growth low to mid-teens, G&A expense ~$52,000,000 (including $12,000,000 stock-based comp), cash interest expense ~$103,000,000.

• Forward-looking statements subject to risks in Form 10-K for year ended December 31, 2025 and earnings press release in Form 8-Ks. • Regulatory environment risks. • Competition risks, including potential cap rate compression and private equity involvement impacting investment landscape.

Q: William John Kilichowski asked about the building blocks of same-store growth and long-term prospects.

A: Michael Lourenco Costa discussed same-store guidance, occupancy growth expectations, rate growth, and expense considerations.

Q: Juan Sanabria inquired about the RCA loan and CapEx.

A: Richard K. Matros said they're in discussions with Deerfield and RCA, and Michael Lourenco Costa gave an estimate on maintenance and non-maintenance CapEx.

Q: Michael Griffin asked about occupancy and skilled nursing investment.

A: Richard K. Matros and Michael Lourenco Costa talked about occupancy potential and skilled nursing investment being minimal compared to senior housing.

Q: Austin Todd Wurschmidt asked about Holiday transition assets and Canadian occupancy.

A: Michael Lourenco Costa and Richard K. Matros discussed the catch-up opportunity for Holiday assets and reasons for Canadian occupancy acceleration.

Q: Seth Eugene Bergey asked about investment opportunity set and return requirements.

A: Elmer Chang and Richard K. Matros spoke about weighted SHOP investments and unchanged return expectations.

Q: Michael Lee Stroyeck asked about non same-store SHOP assets and pricing power.

A: Michael Lourenco Costa and Richard K. Matros discussed non same-store asset growth and pricing power expectations.

Q: Farrell Granath asked about SHOP asset occupancy and pricing power.

A: Richard K. Matros and Elmer Chang talked about asset occupancy entry and pricing power in Canada and US.

Q: Alex Hagen asked about deal flow and development.

A: Richard K. Matros and Elmer Chang discussed deal flow competition, cap rate compression, and preferred equity in developments.

Q: Omotayo Tejumade Okusanya asked about skilled nursing regulatory outlook and SHOP move-out activity.

A: Richard K. Matros responded on regulatory outlook being normal and move-out activity being muted.

Q: Richard Anderson asked about SHOP platform execution and lessons learned.

A: Richard K. Matros and Elmer Chang talked about operating complexity, internal infrastructure, and team acclimation in SHOP operations.