AlphaMadera

SBRA Sabra Health Care REIT, Inc.

$18.74

Real Estate Investment Trust 85%

P/FFO × Healthcare REIT Multiple

Moderate · Conviction

Fair Value

Trading 23.4% below fair value

You pay $18.74

Bear $19.02

Fair $24.45

Bull $29.89

Bear $19.02 +1.5% $1.36 FFO × 14x

Fair $24.45 +30.5% $1.36 FFO × 18x

Bull $29.89 +59.5% $1.36 FFO × 22x

Adjust Assumptions

P/FFO Multiple

18.0x

FFO per Share

1.36$

Key Value Driver

FFO/share ($1.36) × healthcare P/FFO multiple

Terminal Value % of EV

Implied Market Multiple 13.8x

Market is pricing in (growth)

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (29 analysts) $22.57

Divergence from AlphaVal 8%

Summary

At $1.36 FFO/share with a 18x healthcare REIT multiple, the base-case value is $24.45 per share. Dividend yield: 6.4%. DDM cross-check: $22.36.

Warnings

⚠ Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.

⚠ Dividend yield of 6.4% is unusually high — make sure the company generates enough cash to keep paying it.

Key Risks

P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
Interest rate sensitivity: REIT multiples compress when rates rise
FFO approximation (NI + D&A) may include gains on property sales — verify