Sabra Healthcare Reit Is Worried About This – Should You Be Worried Too?

Sabra Healthcare Reit (SBRA) has disclosed a new risk, in the Share Price & Shareholder Rights category.

Sabra Healthcare REIT faces a significant business risk due to its charter’s stringent ownership restrictions, which are crucial for maintaining its REIT status. The charter caps beneficial and constructive ownership at 9.9% of either the value or number of outstanding common shares, or the value of all stock classes, to prevent more than 50% ownership by fewer than five individuals. These limitations, governed by complex constructive ownership rules, may inadvertently consolidate ownership attribution, thus limiting investment flexibility and potentially deterring large investors.

Overall, Wall Street has a Moderate Buy consensus rating on SBRA stock based on 4 Buys and 2 Holds.

To learn more about Sabra Healthcare Reit’s risk factors, click here.