An updated edition of the October 31, 2025, article.The powerful rise in senior and aging populations is reshaping healthcare demand, but investors looking to benefit from this shift risk leaving money on the table if they focus only on pharma, biotech and medical devices. While drug and technology breakthroughs address clinical needs, the demographic wave — with global adults aged 60+ expected to grow sharply over the next decade — is also fueling sustained demand for places to live, recover and receive da ...

Company Overview - Omega Healthcare Investors (OHI) is the largest Skilled Nursing Facilities (SNF)-focused REIT with a total real estate investment of $9.9 billion[16] - The company has 866 properties across the US and the UK, operated by 73 different operators[16,104] - Omega collected approximately 91% of its 1Q24 contractual rent and mortgage payments from its operators[32] Financial Performance - Omega has demonstrated consistent growth with a 12.7% CAGR in gross investments and a 12.9% CAGR in Adjusted EBITDA[149,153] - The company's dividend yield is 8.5%, with a dividend CAGR of 7.1%[16,160] - Omega's management targets a Funded Debt to Adjusted EBITDA ratio between 40x and 50x[182] Market Dynamics and Strategy - SNFs are the highest discharge destination from Medicare FFS hospitals, accounting for 19.3% of discharges[70] - The company estimates that SNF demand will outstrip supply by 2030, driven by an aging population[140] - Omega's strategy includes growth through accretive investments, maintaining financial strength, and continuing solid dividend growth[29] - Omega committed $10 million to fund 50% of the expected debtor-in-possession financing for LaVie Care Centers[36]

Financial Data and Key Metrics Changes - Normalized FFO increased by 67.4% year-over-year to $77,800,000, while normalized FAD rose by 66% to $80,800,000 [18] - On a per share basis, normalized FFO increased by $0.07 or 20% to $0.42, and normalized FAD increased by $0.06 or 16.2% to $0.43 [18] - Total cash rental revenues for the year are projected to be approximately $284,000,000, excluding amortization of lease intangibles [20] Business Line Data and Key Metrics Changes - In Q1, the company completed three new investments totaling over $47,000,000 at a yield of approximately 10% [12] - Year-to-date investment total reached approximately $82,000,000 at a yield of approximately 10% [13] - The investment pipeline is currently strong, sitting at approximately $500,000,000, primarily consisting of real estate acquisitions [14] Market Data and Key Metrics Changes - The acquisition of Care REIT will diversify the company's business in terms of operator concentration, geography, payer sources, and asset classes [9] - The deal is expected to bring U.S. Skilled Nursing concentration down to approximately 49% by property count and 63% by rental income [9] Company Strategy and Development Direction - The strategic acquisition of Care REIT marks the company's entry into the UK market and is the largest deal in its history [6] - The acquisition is expected to be accretive in year one and adds a new growth engine for the company [10] - The company is focused on ensuring that its U.S. growth engine remains robust while expanding into the UK [11] Management's Comments on Operating Environment and Future Outlook - Management is monitoring potential Medicaid cuts but sees bipartisan support for Medicaid and care for seniors in nursing homes [28] - The company is optimistic about the strength of its overall portfolio, with coverage ratios improving [78] - Management expressed confidence in the UK market's potential and is actively reviewing acquisition opportunities [15] Other Important Information - The company raised guidance for normalized FFO per share to $1.69 to $1.73 and for normalized FAD per share to $1.73 to $1.77 [19] - Liquidity remains strong, with a net debt to normalized EBITDA ratio of 0.5 times and a fixed charge coverage ratio of 15.2 times [22][23] Q&A Session Summary Question: Comments on macro expectations regarding policy and provider taxes - Management is monitoring the process regarding potential Medicaid cuts and sees bipartisan support for Medicaid [28] Question: Conditions for entering into a debt investment - The company prioritizes acquisitions but may consider debt investments if they build strategic relationships [30] Question: Changes to annualized earnings or FAD accretion from the Care REIT transaction - Management will provide answers regarding the Care REIT transaction in a week [35] Question: Reasonable volume or investment pipeline for the UK market - The UK pipeline will take time to mature, with a wider range of cap rates expected compared to the U.S. [37] Question: Update on the performance of properties over the last six to nine months - Management is waiting for financial disclosures but believes the coverage ratios are strong [42] Question: Trends regarding cash-paying tenants and overall portfolio strength - Management feels confident about the strength of the overall portfolio and is managing non-paying tenants [78] Question: Access to financing for operators - Management is not seeing challenges in access to financing for operators [86]