SBRA - Sabra Healthcare REIT: An Attractive Value Proposition With Moderate Leverage
2024-05-09 14:56:39 ET
Summary
- Sabra Health Care REIT has outperformed the Vanguard Real Estate Index Fund ETF in 2024.
- I expect the robust performance to continue, with the company confirming its normalized FFO outlook of $1.36/share, up 4.6% Y/Y.
- Tenant EBITDARM metrics are improving and the company has no exposure to bankrupt Steward Healthcare.
- Sabra has no significant debt maturities in 2024 and 2025, with a third of the debt locked in at 3.2% until 2031.
- The market cap rate stands at about 7.4% prior to capex.
Introduction
Sabra Health Care REIT ( SBRA ) has delivered a stellar performance so far in 2024, significantly outperforming the Vanguard Real Estate Index Fund ETF ( VNQ ):
SBRA vs VNQ in 2024 (Seeking Alpha)