Truist Securities and Baird have revised their price targets for Sabra Health Care REIT (NASDAQ: SBRA), signaling updated expectations for the healthcare real estate investment trust's valuation. Truist analyst Michael Lewis maintained a Buy rating and raised the target to $24 from $22. Separately, Baird analyst Wesley Golladay kept a Neutral rating while increasing the target to $23 from $22.

The adjustments reflect a revised outlook on the company's valuation. The new targets represent an upside from the previous level of $22. The endorsements from both firms indicate varying degrees of confidence in the trust's performance, with Truist taking a more bullish stance compared to Baird's Neutral view.

Sabra Health Care REIT, Inc. increased its full-year 2026 guidance for Normalized FFO and Normalized AFFO per share by 7% and 8%, respectively, following strategic portfolio transitions and debt reduction initiatives. The company expects Normalized FFO to range between $1.53 and $1.55 per share, while Normalized AFFO is projected to be between $1.59 and $1.61 per share. This update reflects the successful execution of its strategy to enhance portfolio quality and focus on core senior housing and skilled nursing segments.

Portfolio Transition and NOI Growth

Sabra entered into letters of intent to re-tenant all 26 properties leased to Avamere. Under the proposed transition, 22 properties will move to subsidiaries of Cascadia Healthcare, and four properties will transition to an existing Sabra tenant. Upon closing, the combined annualized cash rent is expected to be $53 million, a nearly 30% increase compared to the $41 million received during the trailing-twelve-month period ending March 31, 2026. The transition is expected to be completed in the second half of 2026.

Additionally, several smaller portfolio initiatives, including re-tenanting and rent resets, are expected to increase cash NOI by over $9 million per year on a run-rate basis compared to the twelve months ending March 31, 2026.

Debt Reduction and Balance Sheet

Sabra and Recovery Centers of America agreed to a reduced cash repayment of $200 million in full satisfaction of a $300 million mortgage maturing on November 1, 2026. The transaction closed on June 30, 2026, with proceeds used to reduce the balance on Sabra’s revolving line of credit. Pro forma for this announcement as of March 31, 2026, Net Debt to EBITDA declined from 5.0x to 4.8x, and behavioral health concentration decreased from 13% to 9% of Annualized Cash NOI.

Full-Year 2026 Guidance

The updated guidance ranges per diluted common share are as follows:

Guidance assumptions include low-single-digit Cash NOI growth for the triple-net portfolio and low-to-mid teens growth for the same-store Senior Housing - Managed portfolio. General and administrative expenses are projected at $61 million, including $13 million of stock-based compensation, and cash interest expense is estimated at $104 million.