Current Analysis: Sabra Health Care REIT

person using macbook pro on black table

Image Source: Unsplash

Sabra Health Care REIT Inc (SBRA) is a healthcare facility real estate investment trust. The company operates one segment that owns and invests in healthcare real estate. All of the company's revenue is generated in the United States.

Sabra's operations consist of nursing facilities, assisted living centers, and mental health facilities. The company considers merger and acquisition investment as a component of its operational growth strategy. Sabra works with existing operators to identify strategic development opportunities.

As of September 30, 2023, Sabra’s real estate properties held for investment included 37,606 beds/units, spread across the United States and Canada.

The company began paying quarterly variable dividends in June 2011 and is headquartered in Irvine, CA.

Three key data points gauge

Sabra Health Care REIT Inc. or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

SBRA Price

Over the past year, Sabra's share price increased about .05% from $13.32 to $13.39 as of Thursday’s market close.

If SBRA trades in the range of $10.00 to $18.00 this next year, its recent $13.38 share price might rise to $15.50 by next year. Of course, SBRAs price could drop about the same $2.11 estimated amount or more.

My annual upside estimate of $2.11 however, $0.42 less than the median of annual price upsides calculated by 12 analysts tracking SBRA for brokers.

SBRA Dividend

Sabra Health Care REIT Inc. has declared variable quarterly dividends since June 2011. SBRA’s most recent Q dividend of $0.30 was declared on February 1 to shareholders of record on February 12th. The annual payout will total $1.20 and the pending Q payment is to be made on February 29th.

A forward-looking $1.20 annual dividend yields 8.96% at Thursday’s $13.39 share price.

SBRA Returns

To put it all together, add the estimated annual dividend of $1.20 to the estimated price upside of $2.11 to find a $3.31 gross gain.

At Thursday’s $13.39 share price, a little over $1000 would buy 75 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.13 per share.

Subtracting that likely $0.13 brokerage cost from the $3.31 gross gain produces a net gain of $3.18 X 75 shares = $238.50 for a 23.75% estimated net gain.

You might choose to pounce on Sabra Health Care REIT Inc. It is a 12-year dividend-paying California-based healthcare facility real estate investment trust.

Furthermore, the estimated $89.60 of annual dividend income from $1k invested is about 6.7 times greater than SBRA’s recent $13.39 single share price.

The exact track of SBRA’s ongoing future price and dividend will be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


More By This Author:

Current Analysis: Rithm Capital
Current Analysis: Merlin Properties
Current Analysis: CubeSmart

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with