Independent Living Drives Occupancy Gains for Sabra Health Care REIT

Sabra Health Care REIT (Nasdaq: SRBA) saw continued recovery in its senior living portfolio with strength stemming from occupancy gains and independent living (IL) demand. 

With an annualized cash net operating income (NOI) opportunity across senior living managed assets of approximately $27 million, leadership highlighted the company’s continued recovery.

Revenue per occupied room (RevPOR) in the third quarter was up in IL to $2,819 from $2,811 in June while assisted living RevPOR fell from $6,571 in June to $6,524 in the third quarter. Cash net operating income margin rose in the third quarter to 27.5%, up from 26.5% in June.


“During the quarter, our senior housing managed portfolio showed strong improvement in all critical metrics. Our balance sheet continues to be exemplary and that, together with our strategy of focusing on our internal growth, has led to improvements in our cost of capital,” CEO Rick Matros said in the company’s third quarter earnings news release.

Occupancy for Sabra’s senior housing portfolio totaled 81.9% by the end of September, up from 80.2% in June. The third quarter occupancy figure was 0.4% higher than the September 2022 census of 81.5%, the company’s supplemental shows.

By care type, occupancy for independent living was up to 81.6% by the end of the third quarter, from 79.2% in June. Assisted living saw a 0.2% occupancy increase from the previous quarter to 82.9%. 


The company received $80 million of gross proceeds from the sale of 13 skilled nursing and two senior housing assets in the third quarter, which in turn reduced the company’s revolving credit facility balance. 

For senior living in the quarter, Sabra reported earnings before interest, taxes, depreciation, amortization, rental and management fees (EBITDARM) of 1.17x. Sabra’s senior living investment portfolio includes 43 leased senior housing assets and 61 communities operated via third-party management.

In July, Sabra transitioned 11 owned senior living properties formerly operated by Enlivant to Inspirit Senior Living, with performance having “exceeded expectations” as demonstrated by the recent occupancy gains.

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