Omega Raises 2026 AFFO Guidance After $1.5 Billion of Deals

The Tip Desk · November 3, 2026 · 3 min read

Adjusted FFO guidance moved to $3.28–$3.30 a share after $946 million of post-quarter investments, including an $846 million U.K. mortgage.

Omega Healthcare Investors (OHI), a REIT that invests in skilled nursing, assisted living and care-home real estate, raised its full-year 2026 adjusted funds from operations outlook to $3.28 to $3.30 a diluted share from $3.22 to $3.26, lifting the midpoint five cents to $3.29.

The company completed $182 million of investments in the third quarter and $946 million after quarter-end, bringing 2026 investment activity to about $1.5 billion. Chief Executive Officer Matthew Gourmand said the company was again able to increase AFFO guidance and that the pipeline remained strong, with further accretive investments expected through the remainder of 2026 and into early 2027.

Net income was $87 million, or $0.27 a diluted share. Adjusted FFO was $262 million, or $0.82 a share, on 321 million weighted-average shares, versus $243 million, or $0.79 a share, on 308 million shares a year earlier. Funds available for distribution were $250 million, or $0.78 a share. Net operating income was $332 million.

Total revenues were $340.6 million, including $30.8 million of resident fees and services that were zero a year earlier and $11.0 million of miscellaneous income. Rental income was $252.8 million. Interest expense fell to $44.5 million from $58.1 million a year earlier. Acquisition, merger and transition costs were $59.9 million, severance expense was $18.8 million, property-level expenses were $29.9 million, and impairment on real estate was $11.4 million.

Third-quarter investments were $167.3 million of real property, $14.2 million of real estate loan fundings and $0.3 million of unconsolidated-entity stakes. The company acquired 17 facilities for $167.3 million, including six Texas SNFs for $73.4 million, five senior housing communities for $77.7 million and six U.K. care homes for $16.2 million. It also converted two U.K. triple-net relationships covering 30 care homes to RIDEA structures for $48 million.

The company issued 4.7 million common shares in the quarter for $234 million of gross proceeds. As of September 30, outstanding indebtedness was $4.1 billion at a 4.2% weighted-average annual interest rate, with $195.9 million of cash and $2.0 billion of undrawn revolver capacity. The board declared a $0.68 quarterly cash dividend.

Operator EBITDAR coverage for the twelve months ended June 30 was 1.67x and EBITDARM coverage 2.03x, versus 1.65x and 2.01x for the twelve months ended March 31. Occupancy was 82.7%. Medicare/Medicaid was 47.8% of operator revenue mix for the three months ended June 30.

In October, Omega transitioned 32 Florida SNFs to PACS Group, paying a $90 million termination fee and raising first-year annual contractual rent by $26.1 million to $58.0 million. The Genesis bankruptcy sale closed, with the lease assumed by NewGen and $149.5 million of DIP and term-loan repayments received. In the third quarter Omega recognized $13.3 million of rental income and $4.8 million of interest income related to Genesis. Maplewood paid $20.1 million of rent.

Post-quarter, the company funded an $845.7 million GBP-denominated mortgage to a Foundation affiliate secured by 48 U.K. care homes, bearing 8.72% interest and maturing in November 2031, and acquired additional U.S. senior housing and a Georgia continuing-care community. Guidance assumes NewGen pays $13.3 million of contractual rent per quarter, Maplewood continues $6.9 million monthly rent, quarterly G&A of $14.0 million to $15.5 million, $306 million of loans repaid in the fourth quarter, and $15 million to $25 million of asset sales.