Omega Healthcare Investors, Inc. functions as a Real Estate Investment Trust (REIT) primarily focused on the long-term healthcare sector. The company strategically ...
Omega Healthcare Investors, Inc. (OHI) is a real estate investment trust (REIT) that focuses on the long-term healthcare sector, particularly skilled nursing and assisted living facilities. The company was founded in 1992 and is headquartered in Hunt Valley, Maryland. It went public on the New York Stock Exchange in 1992. ...Omega Healthcare Investors, Inc. (OHI) is a real estate investment trust (REIT) that focuses on the long-term healthcare sector, particularly skilled nursing and assisted living facilities. The company was founded in 1992 and is headquartered in Hunt Valley, Maryland. It went public on the New York Stock Exchange in 1992. OHI's business model revolves around acquiring and leasing healthcare-related real estate properties to a diverse range of operators, predominantly under triple-net lease agreements, where the tenant is responsible for property taxes, insurance, and maintenance. This strategy provides a stable and predictable income stream, which supports the company's dividend payments to shareholders. As of recent data, OHI has a market capitalization of approximately $14.5 billion and employs 69 people. The company's portfolio is geographically diversified across the United States and includes properties in the United Kingdom. Financially, OHI has demonstrated solid performance with a return on equity of 16.5% and a dividend yield of about 5.6%. The CEO, C. Taylor Pickett, has been leading the company since 2001 and brings extensive experience in healthcare real estate. OHI continues to focus on smart growth to enhance shareholder value and support its operators' success. The company's financial health is indicated by its enterprise value of $18.47 billion and a debt-to-equity ratio of 0.745, reflecting a balanced leverage approach. With a strong focus on the growing demand for senior care, OHI is well-positioned to benefit from demographic trends and the increasing need for long-term healthcare services.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.2B
+14.0%
+3.9%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$590.1M
+45.2%
+140.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+44.5%
-54.9%
-52.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+62.6%
-0.3%
-12.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+49.3%
+27.4%
+131.1%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$878.6M
+23.3%
+6.2%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+73.3%
+8.2%
+2.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
82.1%
-23.0%
-12.9%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
3.46x
-56.9%
-70.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Hello, everyone. Thank you for joining us, and welcome to Omega Healthcare Investors Second Quarter Earnings Conference Call. After today's prepared remarks, we will host a question-and-answer session. I will now hand the conference over to Michele Reber. Please go ahead.
Michele Reber: Thank you, and good morning. With me today is Omega's CEO, Taylor Pickett; President, Matthew Gourmand, CFO, Bob Stephenson; CIO, Vikas Gupta; CIO, Neal Ballew; and Megan Krull, Senior Vice President, Data Intelligence and Government Relations. Comments made during this conference call that are not historical facts may be forward-looking statements such as statements regarding our financial projections, potential transactions, operator prospects and outlook generally. Factors that could cause actual results to differ materially from those in the forward-looking statements are detailed in the company's filings with the SEC. During the call today, we will refer to some non-GAAP financial measures,; such as NAREIT FFO, adjusted FFO, FAD and EBITDA. Reconciliations of these non-GAAP measures to the most comparable measure under generally accepted accounting principles are available in the quarterly supplement. In addition, certain operator coverage and financial information that we discuss is based on data provided by our operators that has not been independently verified by Omega. I will now turn the call over to Taylor.
C. Pickett: Thanks, Michele. Good morning, and thank you for joining our second quarter 2026 earnings conference call. For me and Bob, this is our 100th and our final Omega earnings call. Today, I'm going to reflect back on the evolution of nursing and senior housing industry and look forward to Omega's extremely bright future. In the 1990s, skilled nursing and senior housing facilities traded at very similar cap rates. Skilled nursing was considered a low-risk asset class with relatively low volatility. Medicare reimbursement was cost-based, and many state Medicaid rates were also cost based, resulting in low but predictable margins. Senior housing, particularly assisted living and memory care, was viewed as a less intensive but similar health care asset. Over the last 25 years, the cap rate difference between SNFs and senior housing has meaningfully [indiscernible] Why? In the late 1990s, Medicare reimbursement changed from an inefficient cost base system to a fixed fee acuity-driven system called PPS, five of the seven largest SNF public companies filed for bankruptcy, mostly caused by significant leverage used to acquire facilities and ancillary companies, rehab, pharmacy, respiratory, et cetera. The margins of the ancillary companies declined dramatically, making it impossible to maintain debt obligations, billions in investment dollars were lost. The phrase stroke of the pen risk related to SNFs has existed since this major capital market upheaval. As you would expect, SNF cap rates increased significantly. On the other hand, …
