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1. Company Snapshot

1.a. Company Description

Omega is a real estate investment trust that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities.Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure.The assets span all regions within the US, as well as in the UK.

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1.b. Last Insights on OHI

Omega Healthcare Investors' recent performance was driven by strong Q3 results, including AFFO growth to $0.79 per share, beating estimates. The company's net income rose to $185 million, with a robust acquisition pipeline and strategic investments in US and UK healthcare facilities. A 6.44% dividend yield and solid FFO coverage add to its appeal. Recent upgrades to a Buy rating by Zacks and improved fundamentals further support the stock. DekaBank Deutsche Girozentrale also raised its stake, signaling confidence in OHI's prospects.

1.c. Company Highlights

2. Strong Q3 Earnings: A Closer Look

The company's third-quarter adjusted funds from operations (AFFO) of $0.79 per share exceeded estimates of $0.77, driven by robust revenue and EBITDA growth, largely fueled by strategic acquisitions and active portfolio management. Revenue for the quarter reached $312 million, up from $276 million in the same period last year. Net income for the third quarter was $185 million, or $0.59 per common share, compared to $112 million, or $0.42 per common share, in the third quarter of 2024. The NAREIT FFO for the third quarter was $242 million, or $0.78 per share, up from $196 million, or $0.71 per share, in the third quarter of 2024.

Publication Date: Nov -06

📋 Highlights
  • AFFO & FAD Growth:: Adjusted funds from operations (AFFO) reached $0.79/share, and FAD hit $0.75/share, driven by acquisitions and active portfolio management.
  • Dividend Payout Ratio:: Reduced to 85% for AFFO and 89% for FAD, reflecting improved financial discipline.
  • Investment Activity:: $151 million in Q3 investments, including a $222 million joint venture with Sabre Healthcare, expanding a $900 million real estate portfolio.
  • Balance Sheet Strength:: Secured a $2.3 billion credit facility, ended Q3 with $737 million in cash, and repaid $246 million in secured debt.
  • EBITDAR Coverage:: Core portfolio coverage rose to 1.55x (June 2025), up from 1.51x in Q1 2025, with <1x coverage dropping to 4.3% of total rent.

Operational Highlights

The company's occupancy and coverage metrics continue to show improvement, with EBITDAR coverage reaching its highest level in 12 years. The below 1x rent coverage bucket has dropped to 4.3% of total rent, indicating a strong operational performance. As Megan Krull from Omega Healthcare Investors noted, labor availability issues have not resurfaced in the U.S., and operators are focusing on retaining staff, which is expected to drive further growth.

Investment and Growth Opportunities

The company remains committed to exploring various investment structures, including RIDEA structures, to align with operating partners and sustainably grow FAD per share. The recent investment in a $222 million real estate joint venture with Sabre Healthcare is expected to yield a high-teens return on investment. The company's pipeline transaction outlook for the remainder of 2025 and into 2026 remains favorable, with substantial market opportunities in both the U.S. and the U.K.

Valuation and Dividend

With a P/E Ratio of 23.4 and a Dividend Yield of 6.23%, the company's valuation appears reasonable, considering its strong earnings growth prospects. Analysts estimate next year's revenue growth at 7.6%, indicating a positive outlook. The company's commitment to returning to a dividend growth path is evident, and the setup of its balance sheet will be crucial in determining the possibility of a dividend increase.

Industry Outlook

The long-term care industry is expected to continue growing, driven by increasing occupancy and cash flow growth. The company's exposure to skilled nursing facilities and senior housing is well-positioned to benefit from this trend. However, the impact of potential Medicaid cuts and the automatic 4% cut in Medicare effective 2026 will need to be closely monitored.

3. NewsRoom

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Omega Healthcare Investors, Inc. $OHI Shares Sold by Edgestream Partners L.P.

Dec -04

Source: defenseworld.net

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PINE or OHI: Which Is the Better Value Stock Right Now?

Dec -02

Source: zacks.com

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5 Top Stocks For AI Fatigue

Nov -28

Source: seekingalpha.com

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Dividend Harvesting Portfolio Week 247: $24,700 Allocated, $2,737.06 In Projected Dividends

Nov -27

Source: seekingalpha.com

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B&I Capital AG Acquires 5,650 Shares of Omega Healthcare Investors, Inc. $OHI

Nov -27

Source: defenseworld.net

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The State Of REITs: November 2025 Edition

Nov -18

Source: seekingalpha.com

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PINE vs. OHI: Which Stock Is the Better Value Option?

Nov -14

Source: zacks.com

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Omega Healthcare Investors, Inc. $OHI Shares Acquired by Allworth Financial LP

Nov -14

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Investments in Healthcare-Related Real Estate Properties

Expected Growth: 6.5%

The aging population and increasing demand for healthcare services drive growth in this segment. Omega Healthcare Investors' diversified portfolio and strong management capabilities position it for continued success, warranting a slightly higher growth rate than the global hypothesis of 6.0%. The company's ability to adapt to changing market conditions and its commitment to maintaining high-quality properties also support this growth expectation.

7. Detailed Products

Skilled Nursing Facilities

Omega Healthcare Investors, Inc. invests in skilled nursing facilities that provide 24-hour skilled care and rehabilitation services to patients who require intensive therapy and nursing care.

Assisted Living Facilities

Omega Healthcare Investors, Inc. invests in assisted living facilities that provide supportive care and services to seniors who require assistance with daily living activities.

Memory Care Facilities

Omega Healthcare Investors, Inc. invests in memory care facilities that provide specialized care and services to individuals with Alzheimer's disease and other dementias.

Rehabilitation and Therapy Services

Omega Healthcare Investors, Inc. invests in rehabilitation and therapy services that provide physical, occupational, and speech therapy to patients in skilled nursing facilities and assisted living facilities.

Home Healthcare Services

Omega Healthcare Investors, Inc. invests in home healthcare services that provide medical and non-medical care to patients in their homes.

8. Omega Healthcare Investors, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Omega Healthcare Investors, Inc. operates in a niche market, providing financing solutions to healthcare operators. While there are some substitutes available, such as traditional lenders, the company's specialized knowledge and expertise in the healthcare industry reduce the threat of substitutes.

Bargaining Power Of Customers

Omega Healthcare Investors, Inc.'s customers are primarily healthcare operators, who have limited bargaining power due to the company's specialized financing solutions and expertise in the healthcare industry.

Bargaining Power Of Suppliers

Omega Healthcare Investors, Inc. has a diversified portfolio of investments, which reduces its dependence on any single supplier, thereby limiting the bargaining power of suppliers.

Threat Of New Entrants

The healthcare financing industry has high barriers to entry, including regulatory hurdles and the need for specialized knowledge and expertise, which limits the threat of new entrants.

Intensity Of Rivalry

While there are some competitors in the healthcare financing industry, Omega Healthcare Investors, Inc.'s specialized expertise and diversified portfolio of investments help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 58.64%
Debt Cost 4.76%
Equity Weight 41.36%
Equity Cost 8.44%
WACC 6.28%
Leverage 141.76%

11. Quality Control: Omega Healthcare Investors, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Omega Healthcare

A-Score: 6.8/10

Value: 3.5

Growth: 3.0

Quality: 8.5

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
National Health Investors

A-Score: 6.7/10

Value: 3.0

Growth: 4.3

Quality: 8.1

Yield: 9.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
CareTrust REIT

A-Score: 6.7/10

Value: 2.2

Growth: 4.4

Quality: 7.9

Yield: 9.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Sabra Health Care REIT

A-Score: 6.5/10

Value: 4.1

Growth: 3.4

Quality: 6.8

Yield: 10.0

Momentum: 5.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Healthcare Realty Trust

A-Score: 5.9/10

Value: 4.4

Growth: 2.9

Quality: 3.3

Yield: 10.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Ventas

A-Score: 5.4/10

Value: 1.3

Growth: 3.6

Quality: 4.2

Yield: 7.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

45.74$

Current Price

45.74$

Potential

-0.00%

Expected Cash-Flows