Sabra REIT Eyes Mid-Atlantic Assets


Sabra Health Care REIT, Inc. (SBRA) recently announced that it has entered into an agreement to acquire four skilled nursing facilities for $97.5 million in the Mid-Atlantic Region. The facilities will be functional under a long-term lease and are expected to provide a yield of 8.75% on cash rent. The transaction is expected to be completed by the third quarter of 2011.

Additionally, Sabra Health Care acquired a 70-bed hospital named Texas Regional Medical Center and a 120-bed skilled nursing facility named Oak Brook Health Care Center in Texas.

This acquisition is a strategic move on the company’s part to expand and diversify its portfolio in the Mid-Atlantic region. The company primarily intends to expand its portfolio through the acquisition of skilled nursing and long-term care facilities. The company’s strategy of diversifying its portfolio is backed by an excellent management team.

Sabra Health Care is a self-administered real estate investment trust (:REIT) and through its subsidiaries owns and invests in real estate serving the healthcare industry. It invests in assets that provide the best opportunity to create long-term shareholder value. As of March 31, 2011, Sabra Health Care had properties located in 19 states including 9,603 licensed beds.  

Sabra Health Care currently retains a Zacks #4 Rank, which translates into a short-term Underperform rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Health Care REIT Inc. (NYSE:HCN - News) currently retains a Zacks #3 Rank, which translates into a short term Hold rating.

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