Omega Healthcare Investors raises annual guidance on higher net income
The healthcare real estate investment trust reported net income of $380 million for the second quarter.
Omega Healthcare Investors (OHI) reported a significant increase in net income for the second quarter, driven by a large asset sale and improved operational performance.
The healthcare real estate investment trust shifted its reporting structure this quarter to separate its business into Triple-Net Investments and Operating Portfolio segments. This transition coincided with a period of portfolio optimization and a reduction in exposure to distressed operators.
Net income for the second quarter rose to $380 million, or $1.19 a share, compared to $140 million, or $0.46 a share, in the same period last year. Adjusted Funds From Operations (AFFO) increased to $261 million, or $0.83 a share, from $232 million, or $0.77 a share, in the prior-year quarter.
The company recognized a gain of $231.7 million following the sale of 18 CommuniCare facilities for gross proceeds of $480 million. While new investment volume slowed to $126 million from $251 million in the first quarter, Net Operating Income rose to $331 million from $281 million a year ago.
Operational metrics showed improvement in tenant stability. Operator coverage after management fees rose to 1.65x for the twelve months ended March 31, 2026, up from 1.51x for the prior twelve-month period. Additionally, Genesis Healthcare reduced its DIP financing outstanding balance to $8.7 million following a $16.3 million paydown during the quarter.
Omega raised its full-year 2026 Adjusted FFO guidance to a range of $3.22 to $3.26 a share, with a midpoint of $3.24, up from the previous midpoint of $3.22.
The company increased its quarterly common dividend by $0.01 to $0.68 a share, effective August 3, 2026.