Sabra REIT Eyes Mid-Atlantic Assets

Sabra Health Care REIT, Inc. ( SBRA - Snapshot Report ) 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. ( HCN - Analyst Report ) currently retains a Zacks #3 Rank, which translates into a short term Hold rating.