Omega Buys 45-property U.k. Care Home Portfolio For $344 Million

Omega Healthcare Investors (NYSE: OHI) continues to see opportunity investing in senior housing in the United Kingdom, while also growing its senior living investment pipeline in the U.S.

The Hunt Valley, Maryland-based real estate investment trust (REIT) highlighted the acquisition of a 45-property portfolio of care homes in Scotland and Jersey for approximately £259.8 million, which at today’s exchange rates total about $344 million. The portfolio will be leased to four existing Omega-affiliated operators and two operators that haven’t worked with the REIT.

OHI stock fell 3.99% to $37.02 on Friday after financial markets closed.

The properties have an initial cash yield of 10% and the transaction was closed last month, with U.K.-based transactions representing 93% of the company’s investments made in the first quarter. At present, Omega has 14 operators it works with in the U.K., and the transactions are underwritten similarly to U.S.-based deals, according to Omega Chief Investment Officer Vikas Gupta. 

“These assets fit well,” Gupta said during Friday’s earnings call. “They’re all over the U.K., Scotland and Jersey and all of our operators took them. It fits really well in their geographies and good quality assets that have a very good useful life.”

Gupta added that the transaction was an example of “how strong our platform is.”

Omega in the first quarter of 2025 executed new real estate investments worth more than $423 million and $34 million of CapEx investments. Omega also made a purchase-lease transaction for two communities in Texas and four care homes in the U.K. 

The company continues to see opportunities in the U.S. and U.K. for future investments, including acquisitions of real estate in the U.S. this year. The opportunities span institutional real estate sellers, Gupta said.

Gupta also highlighted the company’s investment pipeline, describing it as “healthy” along with being “more U.S.-heavy at the moment.” The company completed $78 million of new investments in the first quarter, including $58 million in real estate acquisitions and $20 million in real estate loans paired with the $344 million acquisition in the U.K. last month.

Omega leaders also highlighted Maplewood Senior Living’s positive momentum on occupancy, noting the operator had reached a level of 94% occupancy across its 17 “core properties” and paid $13.5 million in rent in the first quarter, an improvement of $1.3 million in the fourth quarter and an improvement from $2.3 million from 1Q24.

Maplewood’s Inspir Embassy Row community in Washington, D.C., which opened in February, has reached 20% occupancy.

The company currently has a senior housing portfolio of 359 communities, with senior housing contributing $83.3 million in revenue in the first quarter as occupancy remains at 81.1% for the U.S.-based assets and 89.8% occupied in the U.K. portfolio, according to a recent financial disclosure from Omega. 

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