Omega Healthcare Buyers (NYSE: OHI) continues to see alternative investing in senior housing in the UK, whereas additionally rising its senior residing funding pipeline within the U.S.
The Hunt Valley, Maryland-based actual property funding belief (REIT) highlighted the acquisition of a 45-property portfolio of care properties in Scotland and Jersey for roughly £259.8 million, which at immediately’s trade charges complete about $344 million. The portfolio shall be leased to 4 present Omega-affiliated operators and two operators that haven’t labored with the REIT.
OHI inventory fell 3.99% to $37.02 on Friday after monetary markets closed.
The properties have an preliminary money yield of 10% and the transaction was closed final month, with U.Okay.-based transactions representing 93% of the corporate’s investments made within the first quarter. At current, Omega has 14 operators it really works with within the U.Okay., and the transactions are underwritten equally to U.S.-based offers, in accordance with Omega Chief Funding Officer Vikas Gupta.
“These property match properly,” Gupta mentioned throughout Friday’s earnings name. “They’re everywhere in the U.Okay., Scotland and Jersey and all of our operators took them. It matches rather well of their geographies and good high quality property which have an excellent helpful life.”
Gupta added that the transaction was an instance of “how robust our platform is.”
Omega within the first quarter of 2025 executed new actual property investments price greater than $423 million and $34 million of CapEx investments. Omega additionally made a purchase-lease transaction for 2 communities in Texas and 4 care properties within the U.Okay.
The corporate continues to see alternatives within the U.S. and U.Okay. for future investments, together with acquisitions of actual property within the U.S. this 12 months. The alternatives span institutional actual property sellers, Gupta mentioned.
Gupta additionally highlighted the corporate’s funding pipeline, describing it as “wholesome” together with being “extra U.S.-heavy in the mean time.” The corporate accomplished $78 million of recent investments within the first quarter, together with $58 million in actual property acquisitions and $20 million in actual property loans paired with the $344 million acquisition within the U.Okay. final month.
Omega leaders additionally highlighted Maplewood Senior Residing’s constructive momentum on occupancy, noting the operator had reached a degree of 94% occupancy throughout its 17 “core properties” and paid $13.5 million in hire within the first quarter, an enchancment of $1.3 million within the fourth quarter and an enchancment from $2.3 million from 1Q24.
Maplewood’s Inspir Embassy Row neighborhood in Washington, D.C., which opened in February, has reached 20% occupancy.
The corporate at present has a senior housing portfolio of 359 communities, with senior housing contributing $83.3 million in income within the first quarter as occupancy stays at 81.1% for the U.S.-based property and 89.8% occupied within the U.Okay. portfolio, in accordance with a current monetary disclosure from Omega.
