Sabra Health Care REITNASDAQ: SBRA

Generating steady income from rentals and a historical resilience in the face of economic adversities make real investment trusts (REITs) a viable choice for growth investors and those hedging against inflation. While residential REITs may be the most familiar type of REITs, medical and healthcare REITs can also be one of the most profitable additions to your investment portfolio.

The headline numbers for Sabra (SBRA) give insight into how the company performed in the quarter ended December 2023, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Sabra Healthcare (SBRA) came out with quarterly funds from operations (FFO) of $0.33 per share, missing the Zacks Consensus Estimate of $0.34 per share. This compares to FFO of $0.37 per share a year ago.

Sabra Health Care REIT has strong upside potential with a diverse and stable portfolio, high occupancy rates, and a history of consistent dividend payments. The company is well-positioned to benefit from tailwinds, such as the aging population and rising healthcare spending. However, investors should be aware of headwinds, including regulatory uncertainty and high leverage, as well as the potential for near-term volatility with the upcoming Q4 2023 earnings announcement.

Sabra Healthcare has risen since our last piece and has outperformed the broader indices. The senior housing and skilled nursing sectors are showing signs of improvement and SBRA's numbers are filled with green shoots. 2024 should see some growth after multiple years of declines, but we still think there is a better choice over this 8.22% yielding REIT.

Sabra Health Care REIT, Inc. (NASDAQ:SBRA ) Q3 2023 Earnings Conference Call November 7, 2023 1:00 PM ET Company Participants Lukas Hartwich - Senior Vice President, Finance Rick Matros - Chief Executive Officer, President and Chairman Talya Nevo-Hacohen - Chief Investment Officer, Treasurer and Executive Vice President Michael Costa - Chief Financial Officer, Secretary and Executive Vice President Conference Call Participants Joshua Dennerlein - Bank of America Juan Sanabria - BMO Capital Markets Rich Anderson - Wedbush Wes Golladay - Baird Michael Griffin - Citi John Pawlowski - Green Street Operator Good day, everyone. My name is Briana and I will be your conference operator today.

While the top- and bottom-line numbers for Sabra (SBRA) give a sense of how the business performed in the quarter ended September 2023, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

Sabra Health Care REIT has defied our expectations and stabilized its funds from operations over the last 9 months. The company has seen occupancy gains in senior housing-leased and behavioral health categories, leading to increased tenant EBITDARM coverage. We give you our outlook for this 9% yielder.

Although the revenue and EPS for Sabra (SBRA) give a sense of how its business performed in the quarter ended June 2023, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.