Omega Completes $527m Investments In Q2 With Eye On More Growth Ahead

Omega Healthcare Investors (NYSE: OHI) completed $527 million worth of new investments in the second quarter of the year, the majority of which lies in acquisitions, as the company seeks to expand.

Those acquisitions included a 45-property portfolio of care homes in Scotland and Jersey in May that the company bought for an equivalent of $344 million. The Hunt Valley, Maryland-based real estate investment trust (REIT) also in the quarter acquired 12 properties – eight skilled nursing facilities and four assisted living communities – and brought in four existing operating partners and two new operators to manage them.

Omega has a total of 407 senior housing properties in its portfolio along with 647 skilled nursing facilities, according to the company’s most recent financial disclosure.

Currently, senior housing makes up more than one-third Omega’s total property count, which includes properties both in the U.S. and U.K.

As of the end of the second quarter, Omega, and the is reported a 95% occupancy rate for its Maplewood Senior Living portfolio, according to Chief Investment Officer Vikas Gupta.

Maplewood’s Inspir Embassy Row community, which opened in February, is currently reporting 30% occupancy while it is in the lease up stage. The operator paid $17.6 million in rent, which Gupta said is anticipated to increase as the operator “increases rates, pushes occupancy growth and realizes further operational efficiencies.”

Omega is in the process of pre-funding its investment pipeline as well, with 7 million common shares of equity issued for a total of $258 million in gross proceeds raised. To date in 2025, the REIT has invested $605 million in transactions, 93% of which went to real estate investments. The majority of those investments were completed in the second quarter, with $502 million in real estate acquisitions through five separate transactions, Gupta said.

Looking ahead, however, Omega is eager to get more senior housing deals, and the REIT is looking into a variety of structures outside of triple-net leases, according to President Matthew Gourmand.

“We’ve always looked at it. But quite frankly the market’s changed. Previously, there was more appetite for triple nets, and now that doesn’t seem to be the case,” Gourmand told investors during the Aug. 1 earnings call. “We’re just going to have to be incredibly disciplined, both with the operator and the real estate.”

As such, Gourmand added there is a possibility of utilizing REIT Investment Diversification and Empowerment Act (RIDEA) structures “where it makes sense,” but doesn’t anticipate it to become a “significant portion” of business over the next 12 months.

“We are going to be opportunistic. If it happens, it happens, but at the same time, if it doesn’t, because the opportunities aren’t presenting themselves, we still feel that there’s a decent pipeline available to us to continue to creatively invest,” Gourmand said.

Omega’s opportunities lie more in smaller portfolios or a small cluster of facilities, according to Gourmand. There are also opportunities for expansion and consolidation in the U.K. where the company has a significant and growing foothold. While it may not be the “lion’s share” of the pipeline, Gupta said, the pipeline is being driven by current operators. 

Gourmand said investing in the U.S. will come down to individual assets, though there is interest in independent living and continuing care retirement communities (CCRCs).

“We have a fairly decent understanding as to what each of these should be able to achieve and what the value is, what the cost to rebuild is,” Gourmand said. “And so we’re going to approach each one individually, especially in alignment with superior operating partners, to understand what they can achieve.”

Omega’s stock price closed at $39.95, up 2.7% from the previous close.

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