Sabra Health Care REIT, Inc. (SBRA) — ESG & Values Scores

Environment story

Sabra demonstrates minimal environmental disclosure and carries significant climate exposure through its real estate portfolio. The company acknowledges climate risks (extreme weather, catastrophic events) affecting properties and has identified need for energy-efficient measures, but provides no quantified Scope 1, 2, or 3 emissions data, renewable energy percentage, or net-zero commitment. The company mentions engaging tenants on sustainable practices but offers no verified decarbonization initiatives or third-party environmental certifications. Exposure to climate-vulnerable properties (hurricanes, flooding, earthquakes) is noted in risk factors but not mitigated by disclosed capital allocation to resilience. No evidence of greenwashing detected, but material absence of climate accountability metrics results in substantial deduction.

Criticisms on file

Climate change risk exposure; properties located in areas susceptible to catastrophic weather, floods, earthquakes, hurricanes; no disclosed climate adaptation capital allocation.
Source: SBRA 10-K, Risk Factors section: 'Catastrophic weather and other natural or man-made disasters, the physical effects of climate change and a failure to implement sustainable and energy-efficient measures could affect our properties.'
Environmental compliance liabilities; potential contamination at real estate properties; reliance on tenant indemnification with no quantified environmental remediation reserves.
Source: SBRA 10-K, Risk Factors: 'As an owner of real property, we or our subsidiaries are subject to various federal, state and local environmental and health and safety laws and regulations...we could be liable for certain other costs, including governmental fines and injuries to persons, property or natural resources.'

Disclosed initiatives

Sustainable Property Management Engagement

Company states it engages in discussions with tenants and operators to identify measures that increase energy efficiency and water conservation and enhance safety and quality.

Unquantified; no baseline or targets provided; primarily tenant-dependent.

Social story

Sabra operates in a labor-intensive healthcare real estate sector and acknowledges significant social risks related to workforce attraction, retention, and labor cost pressures. The company discloses labor shortages, wage inflation, and difficulty attracting qualified personnel (caregivers, nurses) as material operational challenges. No disclosed CEO-to-worker pay ratio, workforce diversity percentages, or formal labor relations policies are provided in the 10-K. No evidence of active union suppression or major strikes within 24 months. The company mentions diversity and inclusion as a strategic need ('if we are unable to provide competitive salaries, benefits, or a diverse and inclusive workplace for our personnel, our business may be adversely affected') but provides no quantified diversity metrics, DEI program structure, or supply-chain labor audits. Senior Housing - Managed communities face regulatory scrutiny regarding quality of care and potential litigation, indicating underlying social governance risks.

Criticisms on file

Labor shortage and wage inflation pressures; inability to attract and retain qualified caregivers, nurses, and other trained personnel; increased operating costs due to minimum staffing requirements and inflationary wage pressures.
Source: SBRA 10-K, Risk Factors: 'Increased labor costs and labor shortages may adversely affect our business...A shortage of caregivers or other trained personnel, minimum staffing requirements or general inflationary pressures on wages has and may continue to force tenants, borrowers and Senior Housing - Managed communities to enhance pay and benefits packages.'
Quality of care litigation; advocacy group monitoring; lawsuits from patients, residents, families; rising liability and medical malpractice insurance costs.
Source: SBRA 10-K, Risk Factors: 'Our tenants and borrowers may be subject to lawsuits filed by advocacy groups that monitor the quality of care at healthcare facilities or by patients, facility residents or their families. Significant damage awards are possible in cases where neglect has been found.'
CMS Minimum Staffing Standards repeal (effective Feb 2, 2026); prior standards required minimum nurse staffing ratios; repeal may reduce staffing pressure on operators but potentially harm resident care quality.
Source: SBRA 10-K, MD&A: 'On April 22, 2024, CMS issued a final rule that (i) established minimum nurse staffing requirements for long-term care facilities (the 'Minimum Staffing Standards')...The Minimum Staffing Standards were repealed by CMS, effective February 2, 2026.'

Disclosed initiatives

Talent Attraction and Retention

Company acknowledges need to provide competitive salaries, benefits, and diverse and inclusive workplace to attract and retain personnel at all levels.

No quantified metrics; stated as risk mitigation objective rather than achieved initiative.
Quality of Care Monitoring

Company discusses engagement with Senior Housing - Managed communities on quality-of-care standards and compliance with licensure, certification and inspection laws.

Unquantified; dependent on third-party operators' execution.

Governance story

Sabra maintains a REIT structure with disclosed governance framework but exhibits material governance risks. The company has not disclosed board independence percentage, dual-class share structure status, or lobbying expenditures in the provided 10-K excerpt. Board composition and voting rights are not detailed. The company acknowledges Maryland business combination statutes and anti-takeover provisions (control share provisions exemption, classified board authorization, charter ownership restrictions) which may limit shareholder rights and change-of-control mechanisms. Exclusive forum provision in bylaws restricts shareholder litigation to Maryland courts. No disclosed antitrust, consumer-safety, or financial-fraud regulatory proceedings are mentioned in the 10-K. REIT compliance requirements are extensive and detailed, indicating material governance focus on tax qualification. Debt covenants are numerous and restrictive, limiting operational flexibility. No evidence of shareholder proposals or contested votes is provided.

Criticisms on file

Anti-takeover provisions; Maryland business combination statute (5-year moratorium on interested stockholders); control share exemption in bylaws; charter permits board-authorized share reclassification and stock issuance without stockholder vote; exclusive forum provision restricts shareholder litigation to Maryland courts.
Source: SBRA 10-K, Risk Factors: 'Provisions of the Maryland General Corporation Law...and of our charter and bylaws could inhibit a change of control of Sabra or reduce the value of our stock...Our bylaws require advance notice of stockholder proposals and director nominations. These provisions, as well as other provisions of our charter and bylaws, may delay, defer, or prevent a transaction or a change in control.'
Exclusive forum provision in bylaws limits shareholder ability to bring disputes in chosen judicial forum; may discourage lawsuits and increase litigation costs for out-of-state shareholders.
Source: SBRA 10-K, Risk Factors: 'Our bylaws provide that...the Circuit Court for Baltimore City, Maryland, or, if that court does not have jurisdiction, the United States District Court for the District of Maryland, Baltimore Division, will be the sole and exclusive forum...This exclusive forum provision may limit a stockholder's ability to bring a claim in a judicial forum of its choosing.'
Substantial indebtedness ($2.6 billion as of December 31, 2025) limits operational flexibility; debt covenants restrict dividend payments, asset sales, acquisitions, and other major transactions; high financial leverage increases vulnerability to economic downturns and interest rate increases.
Source: SBRA 10-K, Risk Factors: 'We have substantial indebtedness...Our high level of indebtedness may have the following important consequences to us: It may increase our cost of borrowing; It may limit our ability to obtain additional financing...It may place us at a competitive disadvantage against less leveraged competitors.'

Disclosed initiatives

REIT Compliance Framework

Company maintains formal processes to ensure compliance with REIT qualification requirements, including 90% income distribution test, asset diversification tests, ownership concentration limits, and real estate asset composition tests.

Critical to REIT status maintenance; failure would result in corporate-level taxation and loss of REIT benefits.
Debt Covenant Compliance

Company monitors compliance with covenants in Credit Agreement, Term Loan Credit Agreement, and Senior Notes Indentures, including leverage ratios, fixed charge coverage, net worth, and unencumbered asset ratios.

As of December 31, 2025, company reports compliance with all applicable covenants.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Sabra Health Care REIT, Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Sabra Health Care REIT, Inc. in the app for interactive charts and portfolio building.

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