Why Sabra Health Care REIT Stock Soared Today

Sabra Health Care REIT (SBRA) jumped 10.20% after announcing a pair of transactions that will boost cash flow and cut debt. The company is retenantin 26 properties previously leased to Avamere, with new leases expected to generate $53 million in annual rent—a nearly 30% increase from prior levels.

Sabra also structured a $300 million mortgage payoff with Recovery Centers of America for $200 million in cash, deploying proceeds to pay down debt. The combined impact prompted management to raise 2026 normalized adjusted funds from operations guidance to $1.59–$1.61 per share. Headline net income guidance declined due to one-time costs tied to the transactions.

The Avamere retenant represents a significant upgrade in rental income from the same asset base, improving the quality of Sabra's cash flows. The Recovery Centers deal provides immediate liquidity while reducing leverage, a priority for healthcare REITs navigating higher interest rates.