Sabra Health Care REIT, Inc. (Nasdaq: SBRA) raised its full-year 2026 earnings guidance after announcing plans to re-tenant 26 properties previously leased to Avamere and settling a $300 million mortgage at a reduced amount, according to a company statement.

Under letters of intent, 22 of the Avamere properties would be transferred to subsidiaries of Cascadia Healthcare, while the remaining four would go to an existing Sabra tenant. The combined annualized cash rent from the portfolio is expected to reach $53 million upon closing, compared with $41 million received from Avamere in the trailing twelve months ending March 31, 2026. The transition is expected to be completed in the second half of 2026.

Separately, Sabra and Recovery Centers of America agreed to a $200 million cash repayment to fully satisfy a $300 million mortgage that had been set to mature in November 2026. The transaction closed June 30, 2026, with proceeds applied to Sabra's revolving credit facility. Pro forma for the transaction, Sabra's Net Debt to EBITDA ratio declined from 5.0x to 4.8x, and behavioral health's share of annualized cash NOI fell from 13% to 9%.

Sabra also said several smaller portfolio initiatives, including re-tenanting, rent resets and lease amendments, are expected to collectively increase cash NOI by more than $9 million annually on a run-rate basis.

Updated full-year 2026 guidance per diluted common share is as follows:

• Net Income: $0.37–$0.39
• FFO: $1.12–$1.14
• Normalized FFO: $1.53–$1.55
• AFFO: $1.58–$1.60
• Normalized AFFO: $1.59–$1.61

CEO Rick Matros said in the statement that at the midpoint, Normalized FFO and Normalized AFFO per share are now expected to increase 7% and 8%, respectively, over 2025. Guidance assumes only investments and capital markets activity completed as of July 21, 2026.