Investors seeking reliable income often look to healthcare properties for stability, which makes the choice between Community Healthcare Trust (CHCT +0.22%) and Sabra Health Care REIT (SBRA +1.30%) a compelling comparison for 2026.
Community Healthcare Trust carves out a niche by focusing on smaller outpatient facilities, whereas Sabra Health Care REIT operates as an industry giant with a wide reaching portfolio of long-term care beds. Both companies offer unique advantages depending on your preference for specialized niche properties or broad scale within the medical facility landscape.
The case for Community Healthcare Trust
Community Healthcare Trust targets a specific niche within the healthcare sector by acquiring outpatient facilities in non-urban and suburban markets. The portfolio consists of nearly 198 properties across 35 states, serving a variety of medical providers such as behavioral health and specialty clinics. While the company maintains a broad tenant base, its largest rent contributors include US HealthVest at roughly 7.3% and Lifepoint Health at approximately 6.4% of annualized rent.
In FY 2025, revenue reached approximately $121.2 million, which represents a growth rate of nearly 4.7% compared to the prior year. The company reported a net income of roughly $5.1 million during this period, yielding a net margin of about 4.2%. This return to profitability is notable after the business experienced a net loss in the previous fiscal year, indicating a stabilization in the company’s operating results for its investors.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 1.2x. This metric measures the company’s total debt relative to shareholder equity, indicating how much the company relies on borrowed funds to finance its property acquisitions. The current ratio, which tracks the ability to pay short-term obligations with liquid assets, is roughly 0.2x, while free cash flow reached close to $56.4 million in FY 2025.
The case for Sabra Health Care REIT
Sabra Health Care REIT operates as a large-scale landlord with a primary focus on senior housing, skilled nursing, and behavioral health facilities. Its massive portfolio includes close to 361 properties and more than 36,412 beds across the United States and Canada. This broad diversification across different types of care facilities is a central pillar for those interested in real estate investing within the medical sector.
During FY 2025, revenue reached nearly $774.6 million, marking a growth rate of approximately 10.2% over the prior year. The company achieved a net income of roughly $155.6 million, resulting in a net margin of close to 20.1% for the year. This level of profitability highlights the company’s ability to generate significant earnings from its long term lease agreements and managed senior housing communities during a period of rising demand.
The balance sheet from December 2025 shows a debt-to-equity ratio of about 0.9x. This ratio shows that the company uses roughly $0.90 in debt for every dollar of equity, which helps investors understand the company’s financial leverage and capital structure. The current ratio is roughly 0.6x, and free cash flow, which represents cash from operations minus capital expenditures, was approximately $348.6 million for the fiscal year.
SBRA & CHCT: Performance Comparison
Key Financial Metrics
SBRA – Sabra Health Care REIT
$18.73
+1.30% (+$0.24)
CHCT – Community Healthcare Trust
$17.91
+0.22% (+$0.04)
Market Cap
$4.7B
52wk Range
$17.16 – $21.28
Gross Margin
39.14%
P/E Ratio
29.64
EPS (TTM)
$0.63
Dividend & Yield
$1.20 (6.41%)
Market Cap
$512M
52wk Range
$13.23 – $18.29
Gross Margin
45.25%
P/E Ratio
164.01
EPS (TTM)
$0.11
Dividend & Yield
$1.91 (10.64%)
SBRA – Sabra Health Care REIT
$18.73
+1.30% (+$0.24)
Market Cap
$4.7B
52wk Range
$17.16 – $21.28
Gross Margin
39.14%
P/E Ratio
29.64
EPS (TTM)
$0.63
Dividend & Yield
$1.20 (6.41%)
CHCT – Community Healthcare Trust
$17.91
+0.22% (+$0.04)
Market Cap
$512M
52wk Range
$13.23 – $18.29
Gross Margin
45.25%
P/E Ratio
164.01
EPS (TTM)
$0.11
Dividend & Yield
$1.91 (10.64%)
Risk profile comparison
Community Healthcare Trust faces risks related to its concentration in the healthcare industry, which makes it sensitive to changes in medical reimbursement and regulation. Approximately 26.7% of its annualized rent comes from properties in Texas and Florida, creating significant exposure to regional economic shifts or natural disasters. The company also deals with tenant financial stability risks, where the bankruptcy of a major provider could lead to lease non-renewals or a sudden loss of rental income.
Sabra Health Care REIT is sensitive to rising interest rates, which can increase the cost of its debt and impact the overall stock price. The company faces operational risks in its senior housing managed communities, including labor shortages and rising wages that can eat into profits. It also competes for property acquisitions and tenants with much larger peers like Welltower and Ventas, which may have greater financial resources to outbid it for prime real estate.
Valuation comparison
Sabra Health Care REIT appears more attractively priced based on future earnings estimates, while Community Healthcare Trust trades at a lower multiple relative to its current sales levels.
| Metric | Community Healthcare Trust | Sabra Health Care REIT | Sector Benchmark |
|---|---|---|---|
| Forward P/E | 37.2x | 27.4x | 32.2x |
| P/S ratio | 4.1x | 6.0x | n/a |
Sector benchmark uses the SPDR XLRE sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Choosing between Sabra Health Care and Community Healthcare Trust may ultimately come down to what you believe the future looks like for senior care. America is greying, as the massive baby boomer generation ages. Projections indicate that by 2035, adults 65 and older will number 77 million, surpassing the number of children under age 18 (76.5 million) for the first time in U.S. history. By 2060, nearly 25% of the population is expected to be over age 65. This narrative alone is a strong case for investing in senior care facilities and adjacent companies like Sabra.
Sabra hit a losing streak in June, dropping 15% and losing almost $800 million in market cap on investor fears about persistently high interest rates and share dilution from an at-the-market equity program, but analysts following the stock maintain their hold or buy ratings, with none recommending selling at this time. Indeed, with concerns already priced in, now may be the time to dig into Sabra stock, which has already begun to rebound. Its 6.41% dividend yield may also be a nice incentive to wait out the volatility.
