Cash flow generation remains complex, evidenced by an FFO to net income ratio of 2.41 in 2026Q1, which highlights the disconnect between accounting earnings and actual cash capacity.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 |
|---|
| Cash from Operations | 366.71M | 348.61M | 310.54M | 300.57M | 315.73M | 356.39M | 354.85M | 372.48M | 358.54M | 133.49M | 176.74M | 121.1M | 85.34M | 62.1M | 56.25M | 44.7M | 6.6M |
| Operating CF Growth % | 35.28% | 12.26% | 3.32% | -4.8% | -11.41% | 0.43% | -4.73% | 3.89% | 168.6% | -24.47% | 45.94% | 41.91% | 37.42% | 10.39% | 25.83% | 577.35% | - |
| Operating CF / Revenue % | 45.11% | 45% | 44.16% | 46.42% | 50.53% | 62.57% | 59.28% | 55.74% | 57.51% | 32.91% | 67.84% | 50.7% | 46.5% | 46.07% | 54.52% | 53.08% | 75% |
| Net Income | 156.19M | 155.51M | 126.71M | 13.76M | -77.61M | -113.26M | 138.42M | 69.02M | 279.12M | 158.37M | 70.2M | 79.38M | 46.91M | 33.72M | 19.51M | 12.84M | 0 |
| Depreciation & Amortization | 196.51M | 187M | 169.62M | 183.09M | 187.78M | 178.99M | 176.74M | 181.55M | 199.08M | 112.97M | 68.47M | 63.08M | 43.33M | 33.28M | 30.26M | 26.59M | 3.1M |
| Stock-Based Compensation | 11.75M | 11.36M | 8.99M | 7.92M | 7.45M | 7.91M | 7.91M | 9.82M | 7.65M | 8.36M | 7.5M | 6.12M | 9.85M | 7.82M | 8.28M | 4.6M | 0 |
| Other Non-Cash Items | 4.68M | 4.6M | 27.77M | 98.55M | 217.8M | 32.2M | 1.61M | -22.16M | -36.31M | -22.86M | -17.78M | -20.71M | -17.01M | -11.15M | -1.07M | 10.75M | 365K |
| Working Capital Changes | -2.33M | -9.85M | -22.55M | -2.73M | -19.69M | 22.7M | -2.74M | -23.51M | -18.5M | -90.31M | 6.31M | -19.78M | 1.01M | -1.75M | -2.38M | 781K | 2.6M |
| Cash from Investing | -466.61M | -377.96M | -109M | 103.13M | -216.25M | -336.2M | -136.45M | 262.84M | -258.49M | -240.07M | 142.36M | -489.23M | -826.47M | -297.51M | -218.65M | -204.59M | 67.1M |
| Acquisitions (Net) | 1.98M | 0 | 0 | -5.24M | -142.91M | -7.77M | -16.65M | 0 | -354.46M | 77.86M | -7.35M | -12.8M | -15.49M | -7.04M | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | -11.02M | -8.02M | -9.06M | -20.07M | -89.65M | -5.31M | -2.75M | -7.35M | -12.8M | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | -1.37M | 0 | 0 | 0 | 5.38M | 1.29M | 3.42M | 5.08M | 6.87M | 3.75M | 313.97M | 38.28M | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -467.21M | -377.96M | -109M | 119.39M | -70.69M | -287.05M | 2.44M | 347.42M | 1.06M | 15.19M | 157.06M | -463.62M | -810.99M | -290.47M | -218.65M | -86K | 67.1M |
| Cash from Financing | 194.1M | 40.76M | -181.56M | -410.3M | -161.71M | 30.14M | -202.11M | -646.18M | -629.34M | 598.82M | -300.9M | 314.08M | 798.62M | 222.62M | 137.25M | 127.9M | 500K |
| Dividends Paid | -293.78M | -289.5M | -280.15M | -277.45M | -277.16M | -262.92M | -278.3M | -335.44M | -325.22M | -182.09M | -119.26M | -109.9M | -81.49M | -58.15M | -48.93M | -31.64M | 0 |
| Common Dividends | -218.12M | -289.5M | -280.15M | -277.45M | -277.16M | -262.92M | -278.3M | -335.44M | -325.22M | -182.09M | -119.26M | -109.9M | -81.49M | -58.15M | -48.93M | -31.64M | 0 |
| Debt Issuance (Net) | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 0 |
| Share Repurchases | 0 | 0 | 0 | -2.68M | -4.81M | 0 | 0 | 0 | -143.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 122.59M | -5.24M | -94K | -36.04M | -2.52M | -39.51M | -830K | -10.82M | -2.54M | -15.75M | -5.94M | -1.27M | -19.13M | -10.25M | -6.8M | -677K | 500K |
| Net Change in Cash | 94.55M | 11.8M | 19.62M | -7.21M | -61.95M | 50.36M | 16.38M | -10.52M | -527.79M | 492.97M | 18.23M | -54.36M | 57.48M | -12.79M | -25.15M | -31.98M | 74.2M |
| Exchange Rate Effect | 410K | 391K | -359K | -614K | 268K | 29K | 88K | 346K | -539K | 738K | 25K | -312K | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 78.14M | 66.34M | 46.72M | 53.93M | 115.89M | 65.52M | 49.14M | 59.66M | 587.45M | 25.66M | 7.43M | 61.79M | 4.31M | 17.1M | 42.25M | 74.23M | 0 |
| Cash at End | 123.45M | 78.14M | 66.34M | 46.72M | 53.93M | 115.89M | 65.52M | 49.14M | 59.66M | 518.63M | 25.66M | 7.43M | 61.79M | 4.31M | 17.1M | 42.25M | 74.2M |
| Free Cash Flow | 366.71M | 348.61M | 310.54M | 300.57M | 315.73M | 322.78M | 249.26M | 372.48M | 451.89M | -200.64M | 176.74M | 121.1M | 85.34M | 62.1M | 56.25M | -159.79M | 6.6M |
| FCF Growth % | 8.49% | 12.26% | 3.32% | -4.8% | -2.18% | 29.5% | -33.08% | -17.57% | 325.22% | -213.52% | 45.94% | 41.91% | 37.42% | 10.39% | 135.2% | -2521.14% | - |
| FCF / Revenue % | 45.11% | 45% | 44.16% | 46.42% | 50.53% | 56.67% | 41.64% | 55.74% | 72.49% | -49.46% | 67.84% | 50.7% | 46.5% | 46.07% | 54.52% | -189.72% | 75% |
Labor cost margin compression
As reported in quarterly financial filings, the ratio of FFO to GAAP net income reached 2.41 in 2026Q1, highlighting a persistent disconnect between accounting earnings and actual cash flow generation that complicates the assessment of the company's true underlying economic performance across its diverse healthcare portfolio.
The significant variance between FFO and GAAP net income suggests that non-cash charges, particularly depreciation, continue to obscure the REIT's actual cash-generating capacity. Investors should monitor this conversion ratio closely, as the volatility in FFO relative to operating cash flow may indicate underlying instability in the managed portfolio's contribution to total liquidity.
Based on the provided financial data, the dividend payout ratio relative to FFO fluctuated between 0.65 and 1.16 over the last ten quarters, suggesting that the company's ability to sustain current distribution levels remains highly sensitive to operational performance within its managed senior housing and behavioral health segments.
The inconsistent coverage ratio implies that the dividend is not always supported by recurring cash flow, forcing the company to rely on capital recycling or balance sheet flexibility. This lack of a consistent buffer warrants further investigation into whether future distributions may require a more conservative adjustment to align with long-term cash generation.
According to historical financial statements, GAAP net income consistently understates the company's economic reality, with non-cash depreciation charges creating a structural distortion that necessitates a focus on FFO to accurately gauge the REIT's ability to fund operations and meet its ongoing debt service obligations.
The reliance on GAAP net income as a performance metric appears misleading given the capital-intensive nature of healthcare facilities. Analysts should prioritize FFO as the primary indicator of cash flow, as the current GAAP figures fail to account for the recurring capital requirements inherent in maintaining high-acuity medical assets.
Financial disclosures suggest that the Enlivant joint venture remains a significant source of opacity, as unconsolidated debt and potential cash obligations within this entity are not fully reflected in the primary cash flow statements, creating a potential blind spot for investors evaluating the company's total leverage profile.
The complexity of the Enlivant structure may hide off-balance-sheet liabilities that could impact future cash availability. Investors should remain cautious, as the resolution of these legacy investments appears to be a recurring challenge that may periodically constrain the company's liquidity and capital allocation flexibility.
Quick answers to the most common questions about buying SBRA stock.
Sabra Health Care REIT, Inc. (SBRA) generated $348.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sabra Health Care REIT, Inc. (SBRA) generated $348.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Sabra Health Care REIT, Inc. (SBRA) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Sabra Health Care REIT, Inc. (SBRA) returned $289.5M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.