Form 4: Sabra Health Care CFO Receives Dividend Equivalent Stock Units

Sabra Health Care REIT's Executive VP, CFO & Secretary, Michael Lourenco Costa, was credited with 3,457 common stock units as dividend equivalent payments.

Summary

• Michael Lourenco Costa, Executive VP, CFO & Secretary of Sabra Health Care REIT, Inc. (SBRA), acquired 3,457 shares of common stock.
• The acquisition occurred on November 28, 2025, at a price of $0 per share.
• These shares represent stock units credited as dividend equivalent payments on previously granted stock units under the Issuer's 2009 Performance Incentive Plan.
• The units will vest and become payable on the same terms as the original stock units to which they relate.
• Following this transaction, Mr. Costa directly beneficially owns 355,279 shares, and indirectly owns 784 shares via his IRA and 207 shares via his spouse's IRA.
• The direct beneficial ownership includes 228,237 stock units that, upon settlement, will be paid on a one-for-one basis in shares of the Issuer's Common Stock.

Sentiment

Score: 7

Explanation: The transaction is a routine, non-discretionary acquisition of stock units as dividend equivalents, which is a positive for the executive's ownership alignment but generally neutral for the company's immediate stock price.

Positives

• Michael Lourenco Costa, a key executive, increased his beneficial ownership in Sabra Health Care REIT, Inc. by 3,457 common stock units.
• The acquisition of stock units through dividend equivalent payments aligns management's interests with shareholders, as these units vest under the same terms as original grants.
• The transaction reflects the ongoing operation of the company's 2009 Performance Incentive Plan, indicating a structured approach to executive compensation and retention.

Future Outlook

The filing indicates that the acquired stock units will vest and become payable on the same terms as the original stock units to which they relate, implying future share issuance upon vesting.

Industry Context

This transaction is a routine insider filing for a Real Estate Investment Trust (REIT) executive, reflecting standard compensation practices that often include equity awards and dividend equivalents to align management incentives with shareholder returns. It does not provide broader industry trends.

Comparison to Industry Standards

• Compensation structures involving stock units and dividend equivalents are common practice for executives in publicly traded companies, particularly REITs, to foster long-term alignment with shareholder interests. No specific comparable companies or projects are mentioned in the filing.

Related Party Transactions

• The transaction involves an executive (Michael Lourenco Costa) and the issuer (Sabra Health Care REIT, Inc.), which is a related party transaction in the context of executive compensation, specifically the crediting of dividend equivalent stock units.

Stakeholder Impact

• Shareholders: Increased alignment of executive interests with shareholders due to increased equity ownership.
• Employees: Reflects standard executive compensation practices, potentially signaling stability in compensation structures.

Next Steps

• The acquired stock units will vest and become payable on the same terms as the original stock units.

Key Dates

Recommendation

This Form 4 reports a routine, non-discretionary acquisition of dividend equivalent stock units by a key executive. While it slightly increases insider ownership and aligns interests, it does not represent a discretionary open market purchase or sale that would typically signal a strong buy or sell recommendation. The information is generally neutral for immediate stock price movement, thus a "hold" recommendation is appropriate as it doesn't provide new fundamental insights to change an existing investment thesis.

Keywords

Sabra Health Care REIT, SBRA, Michael Lourenco Costa, Form 4, Insider Transaction, Stock Units, Dividend Equivalents, Executive Compensation, REIT, Healthcare REIT