Omega Healthcare Traders (NYSE: OHI) anticipates that 2026 will embrace “an honest quantity of” U.S.-based senior residing transaction alternatives “predominantly in a non-triple-net [lease] format,” based on Chief Funding Officer Vikas Gupta.
Gupta made the feedback throughout Friday’s third-quarter earnings name. Omega accomplished $1.1 billion in new offers year-to-date in 2025 together with expert nursing and senior residing belongings. The corporate additionally shaped a $222 million property three way partnership with associates of Saber Healthcare to personal and lease 64 expert nursing amenities beforehand wholly owned by Saber.
“We have been in that form of cadence the place we might allocate an analogous quantity of capital,” Gupta stated. He added that it’s his “suspicion” that 2026 will “seem like an excellent yr for us” with regard to expert nursing belongings, U.Ok.-based care properties and senior residing alternatives.
“I feel the pipeline seems good on all of them, however it’s actually simply going to be decided by what alternatives current themselves and supply a threat adjusted return that appears compelling to us,” Gupta added.
As new alternatives emerge, Omega CEO Taylor Pickett stated Omega can “take a look at much more kinds of transactions,” particularly the place “yields are greater than our conventional” triple-net codecs.
The remark comes as a number of REITs convert triple-net leases to REIT Funding Diversification and Empowerment Act (RIDEA) constructions, together with latest exercise this yr from LTC Properties (NYSE: LTC), Nationwide Well being Traders (NYSE: NHI) and Ventas (NYSE: VTR).
“We’re ready to do conventional RIDEA,” Pickett stated. “We spent quite a lot of time ensuring we add the instruments right here to deal with that.”
Omega’s triple-net portfolio is its “core portfolio,” based on the corporate’s most up-to-date monetary disclosure. In whole, Omega owns 408 senior residing communities spanning assisted residing, reminiscence care and impartial residing.
Omega acquired one persevering with care retirement neighborhood (CCRC) at an preliminary money yield of 10% with escalators starting from 2% to 2.5%. On the identical time, the corporate sees “particular person and regional clusters of senior housing belongings” which might be “underperforming and non-stabilized,” creating transaction alternatives “meaningfully under alternative prices,” Pickett stated.
Omega inventory rose $2.14 on Friday to relaxation at $42.03 per share, a rise of 5.36%.
Omega’s third-quarter funds from operations (FFO) have been roughly $0.78 per diluted share.
Relating to Maplewood Senior Residing, Omega leaders famous that the operator’s incremental income resulted in $18.7 million in lease funds in the course of the third quarter, a rise of $1.1 million in comparison with the second quarter. Maplewood continues to pay $6.3 million monthly in lease which is “constant” with benchmarks set by the corporate.
Pickett known as Maplewood properties in luxurious, prosperous markets “extremely fascinating properties.” For instance, the Inspir Carnegie Hill location is 96% occupied and is “principally full,” Pickett stated.
“They’ll push price…and we anticipate additional cashflow development there,” Pickett added.
Omega made a mortgage funding in an assisted residing facility in Connecticut and the operator refinanced this month.
