Research · Sep 3, 2026
[OHI] Omega Healthcare Investors Thesis 2026: Skilled Nursing Recovery Sustains AFFO Guided Growth
Omega Healthcare Investors, Inc. FY25 revenue $1.20B (+14%); op income $749M (+14%); NI $590M (+45%); EPS $1.94 (+25%). FCF $879M (+23%). Q4 revenue $319M (vs $279M Q4 FY24). Q4 adjusted funds from operations (AFFO) $250M / $0.80/share; FAD $238M / $0.76/share. Q4 dividend payout ratio 84% AFFO / 88% FAD. Full year 2025 AFFO + FAD growth exceeded 8% YoY, driven in part by $1.1B+ capital deployment including RIDEA transactions in US senior housing + UK care homes. Investments in 1,111 facilities (62% skilled nursing + transitional care + 38% US senior housing + UK care homes). Core portfolio operator EBITDAR coverage 1.57x as of September 30, 2025. Genesis filed Chapter 11 bankruptcy — coverage remains strong, second auction result ongoing. Expanded Sabra relationship; committed capital in Canada; delevered balance sheet. Total debt $4.26B (-12% YoY); dividends $780M (+14%). FY26 guide: full-year AFFO $3.15-$3.25/share; $157M mortgages + other real estate loans repaid in 2026; $196M non-real estate backed loans repaid (including $137M Genesis loans); $15-$25M/quarter asset sales. Risks: SNF operator credit risk, Medicare + Medicaid reimbursement, labor environment, RIDEA performance, UK FX, interest rate environment, REIT competitive landscape (Welltower, Ventas, Healthpeak, Sabra, CareTrust, LTC).