Sabra Health Care REIT, Inc.SBRA

Sabra Health Care REIT, Inc. Income Taxes Disclosure

10-KFiled Feb 12, 20262 min read
INCOME TAXES
The Company elected to be treated as a REIT with the filing of its U.S. federal income tax return for the taxable year beginning January 1, 2011. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement to distribute at least 90% of its taxable ordinary income. In addition, the Company is required to meet certain asset and income tests. As a REIT, the Company generally will not be subject to corporate level federal income tax on taxable income that it distributes to its stockholders. The Company also elected to treat certain of its consolidated subsidiaries as taxable REIT subsidiaries, which are subject to federal, state and foreign income taxes. In addition, as a result of our investments in Canada, the Company is subject to income taxes under the laws of Canada.
The following is a summary of the Company’s provision for income taxes and deferred taxes (in thousands):
Year Ended December 31,
202520242023
Provision for federal, state and local income taxes$1,726 $1,006 $2,002 
Provision for (recovery of) foreign income taxes111 (1)— 
Income tax expense$1,837 $1,005 $2,002 
As of December 31,
20252024
Deferred tax assets:
Federal$12,489 $10,597 
Valuation allowance on federal(12,489)(10,597)
Foreign3,730 4,944 
Valuation allowance on foreign(3,730)(4,944)
$— $— 
The Company classifies interest and penalties from significant uncertain tax positions as interest expense and operating expenses, respectively, in its consolidated financial statements. During the years ended December 31, 2025, 2024 and 2023, the Company did not incur any such interest or penalties. With certain exceptions, the tax years 2022 and thereafter remain open to examination by the major taxing jurisdictions with which the Company files tax returns.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 19, 2025
2023Feb 27, 2024
2022Feb 21, 2023
2021Feb 22, 2022
2020Feb 22, 2021
2019Feb 24, 2020
2018Feb 25, 2019
2017Feb 21, 2018
2016Feb 22, 2017
2015Feb 22, 2016

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.

Other Available Disclosures

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