‘opportunities Are In Shop’: Sabra Health Care Reit Targets More Senior Living Growth

Sabra Health Care REIT (Nasdaq: SBRA) is on track for the company’s senior housing operating portfolio (SHOP) to make up half of its portfolio by the end of next year. 

The Tustin, California-based real estate investment trust (REIT) in the third quarter of this year closed on the acquisition of a seven-community SHOP portfolio for about $222.8 million. After the end of the third quarter of this year, Sabra invested an additional $140.7 million to buy a four-property portfolio. 

All told, the REIT’s leaders have transacted on $747.2 million worth of investments this year, with more slated to come.

Sabra owned 117 SHOP properties and 207 skilled nursing facilities, among other properties, as of the third quarter of 2026.

The company is spinning up another $425 million in investments, with leaders devoting $385 million for more SHOP acquisitions, $25 million for skilled nursing deals and $15 million for preferred equity. The total set aside for SHOP includes development opportunities with operators that “have their own in-house capabilities” to that end. But the beginning of a larger development wave this is not.

“Very often, they’ve owned land for a while, so the basis is low,” Sabra CEO Rick Matros said during the compant’s third-quarter earnings call Tuesday. “They’re really distinct opportunities as opposed to the beginnings of any trend on the development side.”

Sabra’s leaders have over recent quarters had their eye on SHOP properties and Matros said he “sees no barriers” that would derail that strategy ahead. But he stressed during the company’s third-quarter earnings call with investors and analysts Tuesday that the company’s leaders want holdings with sufficient diversity, not just one product type.

On Tuesday, voters across the U.S. headed to the polls to cast their ballots for the 2026 midterm elections. At stake is control for both the U.S. House and Senate. According to Matros, a split control of Congress wouldn’t mean much for companies like Sabra as little would change from conditions today. If Democrats gain control of the House and the Senate, he expects they will seek to pass legislation related to long-term care, as evidenced by a recent request for information from the U.S. Senate Finance Committee relating to long-term care and health care.

“Things like staffing or private investment in healthcare facilities, that kind of stuff will bubble up again. When we beat those things down in the past, we did it with bipartisan support. Not everybody sees it that way on the Dem side,” Matros said.

But he added that the company’s leaders feel “pretty comfortable” with the prospect of a political change in Washington D.C.

“I think it’s going to be more noise and headlines than actual impact on the day-to-day business,” Matros said.

Sabra REIT stock grew more than 3% in value to end the trading day at $20.35 per share.

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