S&P Global Ratings revised its outlook on Sabra Health Care REIT Inc. (NYSE:SBRA) to positive from stable, affirming all ratings including BB+ issuer credit rating and BBB- issue-level rating on senior unsecured notes.
The agency cited the company's strengthened credit profile through expansion of its managed senior housing platform. Sabra grew its managed portfolio to 90 consolidated properties from 60 over the past year.
Same-property cash net operating income grew 14.4%. Funding came from forward at-the-market equity issuance and borrowings under its revolving credit facility. Adjusted debt to EBITDA was 5.4x as of March 31, 2026, with expected improvement to about 5.0x by year-end.
Sabra has closed or been awarded $400 million in investments year-to-date and maintains an active pipeline of $690 million in additional managed senior housing opportunities. Net investment activity in 2026 is expected to materially exceed the $500 million deployed in 2025.
The company invested approximately $96 million in Q1 2026, bringing total gross investments to roughly $6.6 billion across 395 properties in 40 U.S. states and Canada. For the first time, over 50% of payor mix will be private pay revenues due to the senior housing platform build-out.
S&P said the positive outlook reflects its view that Sabra will continue expanding its senior housing portfolio while maintaining disciplined leverage and strong tenant coverage metrics. The agency projects debt to EBITDA will improve to the low-5x area over the next 12 months.
