Core Viewpoint - Sabra Health Care REIT significantly outperformed market expectations in Q2 2025, with strong growth in both normalized FFO and revenue, indicating robust operational momentum and balance sheet improvement [1][2]. Financial Performance - Normalized FFO per diluted share was $0.37, exceeding the analyst forecast of $0.17, and up 5.7% from $0.35 in Q2 2024 [2]. - Revenue (GAAP) reached $189.15 million, surpassing estimates of $180.97 million, and reflecting a 7.4% increase compared to Q2 2024 [1][2]. - Net income per diluted common share (GAAP) was $0.27, a significant increase of 170.0% from $0.10 in Q2 2024 [2]. Operational Highlights - Managed senior housing was a key driver of performance, with a 17.1% year-over-year increase in same-store managed senior housing Cash NOI in Q2 2025 [5]. - The company aims to increase the share of managed senior housing in its portfolio from 20% to 30% [4]. - Operational disruptions from transitioning 21 senior housing properties to new operators were minimal, indicating effective management [5]. Investment Activity - Sabra closed $122.3 million in new senior housing investments year-to-date as of Q2 2025, with an additional $220 million in awarded deals pending [5][7]. - Expected cash yields on new investments are projected to be in the high-7% range [7]. Financial Management - The company refinanced $500 million in unsecured notes with a five-year unsecured term loan at a lower fixed rate, expected to reduce future interest expenses [8]. - Net debt to adjusted EBITDA improved to 5.00x as of June 30, 2025, down from 5.19x as of March 31, 2025 [9]. Future Outlook - Management provided updated guidance for FY2025, projecting net income between $0.77 and $0.79, FFO between $1.52 and $1.54, and normalized FFO between $1.45 and $1.47 [12]. - The outlook anticipates low single-digit growth in triple-net cash net operating income and low- to mid-teens growth in managed senior housing cash NOI for 2025 [12]. - The company is focused on executing over $350 million in senior housing investments and monitoring EBITDARM coverage as new Medicare and Medicaid rates take effect [13].