Dane Bowler
Value, hedge fund analyst, REITs, long/short equity

Imminent Capital Gains With Sabra

The Buy Thesis

Sabra Health Care (NASDAQ:SBRA) has dipped significantly on events which are likely to be resolved with minimal impact. Upon resolution, we anticipate SBRA's stock price jumping back up to where it was prior to the said events. In a nutshell, one of Sabra's tenants declared bankruptcy, and we anticipate SBRA getting a full recovery of its investment, plus interest in about a month.

Bankruptcy Details

Tenant bankruptcies concern three properties, one of which is wholly owned and the other two on which SBRA has a debt position:

  1. Forest Park-Frisco - wholly-owned property - $120.48mm investment and $18.5mm DIP loan
  2. Forest Park-Dallas - mortgage loan - $110mm principal
  3. Forest Park-Fort Worth - construction loan - $60.8mm
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