Omega Healthcare Investors, Inc. Q4 FY2025 earnings call

• Fourth quarter adjusted funds from operations (AFFO) was $0.80 per share and funds available for distribution (FAD) was $0.76 per share, with dividend payout ratio at 84% for AFFO and 88% for FAD.
• 2025 was strong with over $1.1 billion in new investments, including RIDEA transactions in U.S. senior housing and U.K. care homes.
• Genesis filed for Chapter 11 bankruptcy, but Omega's coverage remains strong, and the bankruptcy process is ongoing with a second auction result.
• Expanded Sabra relationship, committed capital in Canada, and delevered balance sheet.
• Core portfolio operator EBITDAR coverage increased to 1.57x as of September 30, 2025.

Omega Healthcare Investors Inc. has investments in 1,111 facilities. 62% are skilled nursing and transitional care facilities, and 38% are U.S. senior housing and U.K. care homes. Fourth quarter 2025 revenue was $319 million, compared to $279 million in the fourth quarter of 2024. Adjusted FFO was $250 million, or $0.80 per share for the quarter, and FAD was $238 million, or $0.76 per share. Full year 2025 AFFO and FAD growth exceeded 8% year-over-year, driven in part by $1.1 billion in capital deployment.

• Full year adjusted FFO guidance is a range between $3.15 to $3.25 per share, including assumptions on new investments, $157 million of mortgages and other real estate loans repaid in 2026, $196 million of non-real estate backed loans repaid (including $137 million Genesis loans), and $15 million to $25 million per quarter in asset sales.
• Assumes impact of new investments completed as of February 4 and scheduled loan repayments and potential asset sales.

• Uncertainty around the Genesis bankruptcy process outcome.
• Potential impact of state reactions to legislation and Medicare/Medicare Advantage developments on operators' referral sources and reimbursement.
• Regulatory risks related to staffing standards and investigations in the U.K.

Q: Just wanted to dive in a little to the SHOP strategy? And kind of curious how you think of it being differentiated versus peers and the ability to grow just given the competition and the capital that has been moving into that space.

A: Matthew Gourmand said differentiation is from smaller rifle shot deals, aligning with operators who can turn around facilities, targeting low- to mid-teens unlevered IRRs, and structuring promotes to align interests.

Q: I was wondering if you guys can give any update on PACS, like do you guys have any insight around the outcome of the federal investigation?

A: Vikas Gupta said no more info than public knows, and PACS buildings perform strongly with good credit and operating results.

Q: Considering guidance assumes rental payments at the current run rate, is it reasonable to assume Maplewood returns to the contractual rate by year-end?

A: Vikas Gupta said Maplewood is paying all cash flow now, and Matthew Gourmand said they don't focus on contractual rent but on cash flow from improved operations Q: Similar, I guess, to that question is, thinking about the investment mix in '26. I'm just curious if what you've already closed in January of '26 and early February is kind of in line of how we should be thinking of a mixture of loans as well as triple net and SHOP?

A: Vikas Gupta said pipeline is strong, with about 1/3 skilled nursing, 1/3 senior housing, 1/3 U.K. care homes, and U.K. and U.S. senior housing being RIDEA-focused Q: Similar, I guess, to that question is, thinking about the investment mix in '26. I'm just curious if what you've already closed in January of '26 and early February is kind of in line of how we should be thinking of a mixture of loans as well as triple net and SHOP?

A: Vikas Gupta said pipeline is strong, with about 1/3 skilled nursing, 1/3 senior housing, 1/3 U.K. care homes, and U.K. and U.S. senior housing being RIDEA-focused