SBRA 10-Q filed 2026-11-02 | Key takeaways
SBRA filed its 10-Q; the most relevant disclosure change is reduced Loans receivable and other investments: Loans receivable and other investments, net decreased to $120.3 million as of September 30, 2026 from $434.1 million as of December 31, 2025, primarily due to a $100 million write-off on the Recovery Centers of America mortgage loan that was repaid at a reduce.
Key takeaways
Loan loss provision: Company recorded $104.6 million provision for loan losses in the nine-month period, including a $100 million write-off on the Recovery Centers of America mortgage loan that was repaid at a reduced amount of $200 million versus the $300 million principal balance.
Portfolio acquisitions: During the nine months ended September 30, 2026, the company acquired 14 SHOP communities and two skilled nursing/transitional care facilities for $511.4 million, plus one additional SNF acquired through loan workout.
Portfolio dispositions: The company sold 14 facilities for aggregate consideration of $166.9 million, resulting in a net gain on sale of $29.7 million for the nine-month period.
Revenue growth: Q3 2026 total revenues increased 31% to $249.6 million compared to $190.0 million in Q3 2025, driven by SHOP community acquisitions and transitions from triple-net lease to managed portfolio.
AFFO per share: Q3 2026 AFFO per diluted share was $0.45 compared to $0.37 in Q3 2025, and nine-month 2026 AFFO per diluted share was $1.22 versus $1.10 in the prior year period.
Liquidity: As of September 30, 2026, the company had $1.2 billion in liquidity consisting of $36.2 million cash, $873.5 million available under the revolving credit facility, and $292.5 million related to forward sale agreements.
Medicare reimbursement: CMS issued final rule for FY2027 Medicare rates for skilled nursing facilities providing an estimated net increase of 2.4% compared to FY2026, effective October 1, 2026.
Key metrics
Disclosure changes
- Loans receivable and other investments
Loans receivable and other investments, net decreased to $120.3 million as of September 30, 2026 from $434.1 million as of December 31, 2025, primarily due to a $100 million write-off on the Recovery Centers of America mortgage loan that was repaid at a reduced cash payment of $200 million in full satisfaction of the $300 million loan.
The significant reduction in loans receivable reflects a major credit loss event that materially impacted the company's financial results for the nine-month period. - Real estate acquisitions
During the nine months ended September 30, 2026, the company acquired 14 SHOP communities, two skilled nursing/transitional care facilities, and exercised its option to acquire one skilled nursing/transitional care facility under its loan receivable investment, for aggregate consideration of $511.4 million.
The company continued its acquisition pace in Q3 2026, adding SHOP communities to expand its managed portfolio operations. - Real estate dispositions
During the nine months ended September 30, 2026, the company completed the sale of 14 facilities for aggregate consideration of $166.9 million, resulting in a net gain on sale of $29.7 million.
The company executed significant dispositions in Q3 2026, generating $166.9 million in proceeds and a net gain of $29.7 million. - Senior housing operating portfolio (SHOP)
As of September 30, 2026, the company held 101 SHOP communities (10,540 beds/units) compared to 87 SHOP communities (8,677 beds/units) as of December 31, 2025. Q3 2026 resident fees and services revenue was $143.2 million, a 56% increase over Q3 2025.
The SHOP portfolio continues to grow as the company transitions properties from triple-net lease to managed operations, becoming a larger portion of total revenues. - Interest and other income
Interest and other income decreased to $19.0 million for the nine months ended September 30, 2026 from $33.1 million in the prior year period, primarily due to $10.9 million decrease from investments that were repaid and $2.8 million decrease in lease termination income.
The decrease reflects the payoff of loan investments and reduced lease termination activity. - Accumulated other comprehensive income
Accumulated other comprehensive income was $23.1 million as of September 30, 2026, compared to accumulated other comprehensive loss of $3.6 million as of December 31, 2025, primarily due to unrealized gains on cash flow hedges of $28.1 million.
The improvement reflects mark-to-market gains on interest rate swaps designated as cash flow hedges.
Primary source
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