Sabra Health Care REIT, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income per diluted common share for Q3 2026 was $0.11, compared to $0.09 in Q3 2025.
• Funds from operations (FFO) per diluted common share for Q3 2026 was $0.40, compared to $0.33 in Q3 2025.
• Normalized FFO per diluted common share for Q3 2026 was $0.39, compared to $0.36 in Q3 2025.
• Adjusted funds from operations (AFFO) per diluted common share for Q3 2026 was $0.45, compared to $0.37 in Q3 2025.
• Normalized AFFO per diluted common share for Q3 2026 was $0.41, compared to $0.38 in Q3 2025.
• Total revenues for Q3 2026 were $249.6 million, up from $190.0 million in Q3 2025.
• Net income attributable to Sabra Health Care REIT, Inc. for the nine months ended September 30, 2026, was $44.3 million, compared to $128.4 million in the same period in 2025.
• Net Debt to Adjusted EBITDA was 4.54x as of September 30, 2026.
• EBITDARM coverage ratios for Q3 2026 were 2.52x for Skilled Nursing/Transitional Care, 1.58x for Senior Housing - Leased, and 3.91x for Specialty Hospitals and Other.
• Same property Senior Housing Operating Portfolio (SHOP) Cash NOI increased 14.6% year-over-year for Q3 2026.

Guidance and Future Outlook:

• Updated full-year 2026 Net Income guidance is $0.265 - $0.275 per diluted common share.
• Updated full-year 2026 FFO guidance is $1.145 - $1.155 per diluted common share.
• Updated full-year 2026 Normalized FFO guidance is $1.540 - $1.550 per diluted common share.
• Updated full-year 2026 AFFO guidance is $1.625 - $1.635 per diluted common share.
• Updated full-year 2026 Normalized AFFO guidance is $1.600 - $1.610 per diluted common share.
• Guidance assumes low-single-digit Cash NOI growth for the triple-net portfolio at the midpoint, ignoring acquisitions, dispositions, and tenant transitions.
• Guidance assumes average full-year Cash NOI growth for same-store SHOP in the mid-teens.
• Guidance assumes general and administrative expenses of $63 million at the midpoint, including nearly $15 million in stock-based compensation.
• Guidance assumes cash interest expense of $106 million at the midpoint.
• Guidance assumes weighted average share counts of 260 million for Normalized FFO and 261 million for Normalized AFFO.
• Management expects SHOP concentration to reach approximately 40% on a run-rate basis by year-end 2026 and 50% by the end of 2027.

Business Segments and Product Lines:

• Closed acquisition of seven SHOP communities in Q3 2026 for an aggregate price of $222.8 million with an estimated yield of 7.7%.
• Year-to-date investments closed totaled $747.2 million with an estimated yield of 8.0%.
• Awarded an additional $425 million of investments, including approximately $385 million in SHOP, $25 million in skilled nursing, and $15 million in preferred equity, with an estimated yield of 7.0%.
• Closed transition of 26 properties formerly leased to Avamere to subsidiaries of Cascadia Healthcare (22 properties) and Ensign Group (4 properties) effective October 1, 2026.
• Annualized cash rent for the 26 transitioned properties increased to $53 million from $48 million following the transition.
• Portfolio as of September 30, 2026, included 364 real estate properties: 207 skilled nursing/transitional care facilities, 32 senior housing - leased communities, 24 specialty hospitals and other facilities, and 101 SHOP communities.
• Portfolio included 37,513 beds/units across the United States and Canada.

Market and Competitive Landscape:

• Management stated that same-store SHOP Cash NOI margins and REVPOR growth are among the best in the space.
• Investment activity remains robust with $425 million currently awarded and more expected before year-end.
• Management does not foresee barriers slowing current momentum or the shift in portfolio mix toward SHOP.
• The triple-net skilled nursing and senior housing portfolios showed increased rent coverage.

Risks and Challenges:

• Forward-looking statements include risks such as the ability to reach definitive agreements for awarded investments and close acquisitions on expected terms.
• Risks include increases in market interest rates, inflation, pandemics, operational risks with SHOP communities, increased labor costs, and labor shortages.
• Risks include competitive conditions, loss of key management, uninsured losses, impairment charges, and risks associated with unconsolidated joint ventures.
• Risks include catastrophic weather, climate change effects, increased operating costs, healthcare regulation, and tenant dependency on government reimbursement.
• Risks include tenant bankruptcy, inability to find replacement tenants, litigation, rising insurance costs, and environmental compliance costs.
• Risks include concentration in the healthcare property sector, significant indebtedness, debt covenants, adverse credit rating changes, and ability to maintain REIT status.
• Risks include ownership limits, takeover defenses, and currency fluctuations for property ownership outside the U.S.

Management Commentary and Tone:

• Rick Matros, CEO and Chair, described the quarter as "another strong quarter" with solid occupancy and cash NOI growth.
• Management highlighted robust investment activity and a strategic shift to increase SHOP concentration.
• Management expressed confidence in the exceptionally strong triple-net skilled nursing portfolio supporting the shift to SHOP.
• Management noted that leverage ticked down and guidance was increased at the midpoint.

Other Key Points:

• The Board of Directors declared a quarterly cash dividend of $0.30 per share, payable November 30, 2026, to stockholders of record as of November 13, 2026.
• Sabra utilized the forward feature of its ATM program to sell up to 0.1 million shares at a weighted average price of $19.94 per share during Q3 2026.
• As of September 30, 2026, 15.0 million shares remained outstanding under forward sale agreements at a weighted average price of $19.53 per share.
• Liquidity as of September 30, 2026, was approximately $1.2 billion, consisting of $36.2 million in unrestricted cash, $873.5 million in available borrowings under the revolving credit facility, and $292.5 million related to shares under forward sale agreements.
• $332.7 million remained available under the ATM program as of September 30, 2026.
• A conference call to discuss results was held on November 3, 2026.