Form 4: Sabra Health Care REIT Executive VP, CFO & Secretary Michael Lourenco Costa Reports Stock Unit Vesting

Michael Lourenco Costa, Executive VP, CFO & Secretary of Sabra Health Care REIT, reported the vesting of 63,782 stock units and the holding of 340,755 stock units.

Summary

• Michael Lourenco Costa, an executive at Sabra Health Care REIT, has reported a transaction involving the vesting of stock units.
• On January 15, 2025, 63,782 stock units vested as part of a performance incentive plan.
• These units were granted on December 28, 2021, and were subject to a relative total stockholder return (TSR) condition.
• The Compensation Committee determined that the TSR units earned were 200% of the target, based on the company's performance compared to a peer group over a three-year period.
• The vested units will be converted to shares of common stock on a one-for-one basis around January 2, 2026.
• Mr. Costa also holds 340,755 stock units that will be paid in shares of common stock upon settlement.
• Additionally, Mr. Costa has 784 shares held in his IRA and 207 shares held in his spouse's IRA.

Sentiment

Score: 7

Explanation: The document indicates strong performance leading to a 200% vesting of stock units, which is a positive sign. The executive's significant holdings also suggest confidence in the company's future.

Positives

• The vesting of stock units at 200% of the target suggests strong performance relative to peers.
• The executive's significant holdings of stock units and shares indicate a strong alignment with shareholder interests.

Future Outlook

The vested stock units will be converted to shares of common stock on or about January 2, 2026, subject to earlier payment in the event of death, disability or change of control.

Industry Context

This filing is a routine disclosure of insider transactions, which is common in publicly traded companies. The vesting of stock units based on performance metrics is a typical method of executive compensation in the REIT sector.

Comparison to Industry Standards

• The use of TSR-based vesting is a common practice among REITs to align executive compensation with shareholder returns.
• Many REITs use similar performance metrics and vesting schedules for their executive compensation plans.
• The 200% target achievement suggests that Sabra's performance was strong compared to its peer group, which is a positive indicator for investors.

Stakeholder Impact

• Shareholders may view the vesting of stock units at 200% of the target as a positive sign of the company's performance.
• The executive's significant holdings of stock units and shares align his interests with those of shareholders.

Next Steps

• The vested stock units will be converted to shares of common stock on or about January 2, 2026.

Key Dates

Keywords

stock units, vesting, TSR, performance incentive plan, executive compensation, Sabra Health Care REIT, insider trading, SEC Form 4