Omega Healthcare Investors, Inc. announced its financial results for the second quarter ended June 30, 2025, reporting strong performance. The company's Adjusted FFO (AFFO) for the quarter was $0.77 per share, and Funds Available for Distribution (FAD) stood at $0.74 per share. Net cash provided by operating activities increased by $85.64 million to $421.22 million for the first six months of 2025, driven by higher rental and interest income.
Omega continued its aggressive investment strategy, completing $527 million in new investments during Q2, bringing the year-to-date total to $605 million. This included $502.1 million in real estate acquisitions for 57 facilities, notably a $344.2 million acquisition of 45 facilities in the U.K. and Jersey in April, and $157.9 million for 12 U.S. facilities. Additionally, $24.8 million was funded in real estate loans.
The company further strengthened its balance sheet and liquidity, issuing $600 million of 5.2% senior notes due 2030 on June 20, 2025. It also repaid a $50 million term loan in April 2025 and extended its $1.45 billion revolving credit facility in April, along with a $428.5 million term loan in July 2025, ensuring financial flexibility and managing debt maturities.
Omega raised its 2025 AFFO guidance for the second time this year, now projecting a range of $3.04 to $3.07 per diluted share, up from the previous range of $2.95 to $3.01 per share. This increased outlook reflects the positive impact of recent investments and strong operational execution.
Key operator updates included the successful completion of LaVie Care Centers, LLC's bankruptcy proceedings on June 1, 2025, with its master lease assigned to Avardis and rental income now recognized on a straight-line basis at $3.6 million per month. Avardis paid full contractual rent of $3.1 million in July 2025.
Despite Genesis Healthcare, Inc. filing for Chapter 11 bankruptcy protection on July 9, 2025, Omega proactively provided an $8.0 million debtor-in-possession (DIP) financing. This financing requires Genesis to pay full contractual rent during the bankruptcy process, and Omega anticipates continued full rental and interest income due to this arrangement and substantial collateral supporting its term loans.
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