Sabra Health Care: Buy This High Yield For Potentially Solid Total Returns
Sabra Health Care REIT has shown strong growth in its latest financial results. The company’s stock closed at $45.12 USD on November 18, 2025, while offering investors a 6.4% dividend yield. Management remains optimistic about future performance, citing solid fundamentals and expansion in key segments.
The company reported broad-based momentum in Q3 2025, with same-store net operating income (NOI) rising by 13.3% in its SHOP segment. This growth aligns with Sabra’s long-term strategy to increase its exposure to the fast-growing SHOP market, targeting 40% of NOI from this sector in the coming years.
Sabra’s portfolio spans skilled nursing, senior housing, behavioural health, and specialty hospitals. No single operator contributes more than **8%** of its NOI, ensuring a diversified revenue base. For the full year, management expects normalised funds from operations (FFO) per share to reach **$1.45**, marking a **4.3% increase** from the previous year. The stock currently trades at a forward price-to-FFO ratio of **12.8**, slightly above its historical average. Analysts suggest this valuation is supported by strong growth prospects and favourable demographic trends. The dividend remains well-covered, with an **82% payout ratio**, leaving room for potential future increases as earnings continue to expand.
Sabra Health Care REIT’s latest results highlight steady growth in its core operations. With a 6.4% yield, a diversified portfolio, and a focus on high-growth segments, the company is positioning itself for long-term stability. The current stock price of $45.12 USD reflects confidence in its strategic direction and financial health.
