Omega Healthcare Traders (NYSE: OHI) is constant to extend its investments in senior residing, together with in its rising senior housing working portfolio.
The Hunt Valley, Maryland-based actual property funding belief (REIT) in 2025 accomplished its first REIT Funding Diversification and Empowerment Act (RIDEA) construction buy. Of the $1.1 billion in investments it made all year long about two-thirds went towards senior housing or U.Ok.-based care properties.
Within the fourth quarter of 2025, Omega acquired 5 properties – 4 senior housing communities within the U.S. introduced beneath a RIDEA construction and one care house within the U.Ok. – for $52 million. The acquisitions will likely be managed by two third celebration operators, Gupta stated. Moreover, the REIT closed on $64 million to develop 5 alternative long run care services in Ontario, Canada.
Omega is bringing that technique and momentum into 2026 by buying underperforming properties under alternative value after which turning them round with operators. Trying forward, the corporate’s leaders see much more alternatives to purchase this 12 months with a “robust” pipeline filled with off-market alternatives in Canada and the U.S.
Omega’s internet revenue for the quarter totaled $172 million, up from $116 million in comparison with the earlier 12 months. Adjusted Funds from Operations (Adjusted FFO) totaled $250 million on 313 million weighted-average frequent shares excellent, in comparison with $214 million on 287 million shares within the fourth quarter of 2024.
Omega Healthcare Traders owns 936 properties, 359 of that are senior housing communities.
In response to President Matthew Gourmand, Omega’s shift to RIDEA is supposed to assist create “a better danger, probably higher-return mannequin.” The corporate has studied the whole lot from operational budgets to the causes of occupancy declines “to actually perceive what the dangers are round this,” he stated Thursday through the firm’s fourth-quarter 2025 earnings name with traders and analysts.
“It is smart for us to dip our toe into this judiciously. I wouldn’t search for us to be doing a billion greenback deal anytime quickly,” Gourmand stated. “The flexibility to deploy capital over the course of a decade for it to develop into not solely a significant a part of our enterprise, however a extremely accretive and priceless a part of our enterprise. I believe we take a look at over the following decade, proper right here, being an analogous alternative.”
Gourmand famous every of the sector varieties are buying and selling for a premium within the cases OHI has accomplished trades, however the REIT would quite selectively select the services it’s seeking to purchase quite than getting concerned in bigger offers.
Maplewood Senior Residing, considered one of OHI’s operators, paid $18.9 million in lease within the fourth quarter, a rise of $200,000 within the third quarter, and the quantity is anticipated to extend by means of single digit price will increase. Omega reported that Maplewood’s portfolio carries a 96% occupancy price.
The REIT’s inventory worth is $45.56, up 6.1% from the earlier shut.
