Omega Healthcare Traders (NYSE: OHI) accomplished $527 million price of recent investments within the second quarter of the 12 months, the vast majority of which lies in acquisitions, as the corporate seeks to broaden.
These acquisitions included a 45-property portfolio of care properties in Scotland and Jersey in Might that the corporate purchased for an equal of $344 million. The Hunt Valley, Maryland-based actual property funding belief (REIT) additionally within the quarter acquired 12 properties – eight expert nursing amenities and 4 assisted residing communities – and introduced in 4 present working companions and two new operators to handle them.
Omega has a complete of 407 senior housing properties in its portfolio together with 647 expert nursing amenities, in response to the corporate’s most up-to-date monetary disclosure.
At present, senior housing makes up greater than one-third Omega’s complete property depend, which incorporates properties each within the U.S. and U.Ok.
As of the top of the second quarter, Omega, and the is reported a 95% occupancy price for its Maplewood Senior Residing portfolio, in response to Chief Funding Officer Vikas Gupta.
Maplewood’s Inspir Embassy Row group, which opened in February, is at present reporting 30% occupancy whereas it’s within the lease up stage. The operator paid $17.6 million in lease, which Gupta stated is anticipated to extend because the operator “will increase charges, pushes occupancy progress and realizes additional operational efficiencies.”
Omega is within the strategy of pre-funding its funding pipeline as effectively, with 7 million widespread shares of fairness issued for a complete of $258 million in gross proceeds raised. To this point in 2025, the REIT has invested $605 million in transactions, 93% of which went to actual property investments. The vast majority of these investments had been accomplished within the second quarter, with $502 million in actual property acquisitions by 5 separate transactions, Gupta stated.
Wanting forward, nonetheless, Omega is raring to get extra senior housing offers, and the REIT is wanting into quite a lot of constructions exterior of triple-net leases, in response to President Matthew Gourmand.
“We’ve all the time checked out it. However fairly frankly the market’s modified. Beforehand, there was extra urge for food for triple nets, and now that doesn’t appear to be the case,” Gourmand informed buyers in the course of the Aug. 1 earnings name. “We’re simply going to need to be extremely disciplined, each with the operator and the actual property.”
As such, Gourmand added there’s a chance of using REIT Funding Diversification and Empowerment Act (RIDEA) constructions “the place it is smart,” however doesn’t anticipate it to develop into a “significant slice” of enterprise over the subsequent 12 months.
“We’re going to be opportunistic. If it occurs, it occurs, however on the identical time, if it doesn’t, as a result of the alternatives aren’t presenting themselves, we nonetheless really feel that there’s an honest pipeline out there to us to proceed to creatively make investments,” Gourmand stated.
Omega’s alternatives lie extra in smaller portfolios or a small cluster of amenities, in response to Gourmand. There are additionally alternatives for growth and consolidation within the U.Ok. the place the corporate has a major and rising foothold. Whereas it is probably not the “lion’s share” of the pipeline, Gupta stated, the pipeline is being pushed by present operators.
Gourmand stated investing within the U.S. will come right down to particular person property, although there’s curiosity in unbiased residing and persevering with care retirement communities (CCRCs).
“We now have a reasonably first rate understanding as to what every of those ought to be capable of obtain and what the worth is, what the fee to rebuild is,” Gourmand stated. “And so we’re going to method each individually, particularly in alignment with superior working companions, to grasp what they’ll obtain.”
Omega’s inventory value closed at $39.95, up 2.7% from the earlier shut.
