Sabra Health Care REIT shares slipped 0.8% to $21.16 at the latest close. The latest filing puts a much larger split on the page: revenue rose 24.7% to $235.9 million, while net income swung from a $65.5 million profit to a $25.2 million loss versus the comparable period a year earlier.
That pushed diluted EPS from $0.27 to negative $0.10 and turned a 34.7% net margin into negative 10.7%. The business produced more reported revenue, but the bottom line did not follow it through the door.
The operating details are less dramatic than the net-income line. Sabra points to higher occupancy and rates, alongside lower depreciation on fully depreciated assets, as contributors to an increase in one reported operating measure. The company also recorded $2.7 million of other expense, primarily tied to terminating the lease on one community moved from its triple-net portfolio into managed senior housing. That charge is real, but it does not by itself account for the $90.7 million year-over-year swing in net income. Sabra does not disclose one explanation for the full change in the supplied filing receipts.
Management’s operating bridge points to changes at the property level:
"The $1.4 million net increase is primarily related to a $0.8 million increase in revenues net of operating expenses primarily due to increased occupancy and rates and a $0.6 million decrease in depreciation expense primarily due to assets that have been fully depreciated."
Sabra, 10-Q filed August 3, 2026
In plain English, the properties generated more after operating costs, and depreciation fell. Those are useful facts for reading the real-estate engine, though they do not erase the GAAP loss.
Cash supplies the second complication. The balance rose 143.3% to $231.6 million, but Sabra’s six-month financing activity included $100.8 million of net revolver borrowings and $47.7 million of proceeds from shares sold through its prior ATM program, alongside $151.3 million of dividends.
The company describes that financing mix this way:
"Cash Flows from Financing Activities During the six months ended June 30, 2026, net cash used in financing activities was $5.3 million and included $151.3 million of dividends paid to stockholders, a $1.2 million contingent consideration payment and $1.1 million of principal repayments on secured debt, partially offset by $100.8 million of net borrowings from our Revolving Credit Facility and $47.7 million of proceeds from shares sold through our Prior ATM Program, net of costs related to payroll tax payments related to the issuance of common stock pursuant to equity compensation arrangements."
Sabra, 10-Q filed August 3, 2026
So the cash increase is not the same thing as stronger earnings or internally generated cash. It sits alongside borrowing, equity issuance, dividends, and an operating business that management says benefited from occupancy and rate gains. REIT accounting rarely offers a tidy single scoreboard, because apparently one was not enough.
Sabra’s own annual results show the same growth thread in a broader frame: revenue reached $356.9 million in 2025, up 25.4% from the prior year. The latest filing therefore extends a familiar expansion pattern, while adding a sharper question about how much of that growth reaches net income and how much cash comes from financing activity.
Sabra’s next 10-Q will add the missing comparison between net income, operating cash flow, and the sources behind the cash balance. The tension is simple: property-level gains, negative earnings.