Omega Healthcare Investors, Inc. announced its first-quarter results for the period ended March 31, 2025. The company reported revenues of $276.8 million, representing a $33.5 million increase over the same period in 2024. Net income for the quarter rose by $42.7 million year-over-year to $112.1 million.
The company's funds from operations (FFO) for the first quarter stood at $0.75 per share, aligning with Wall Street expectations. Omega demonstrated significant capital deployment, completing $423 million in new investments year-to-date through April 2025.
Key investments included $58.3 million in real estate acquisitions for six facilities in Q1, with a weighted average initial annual cash yield of 10.0%, and $20.0 million in real estate loans at a 10.8% weighted average interest rate. Notably, in April 2025, Omega acquired 45 facilities in the U.K. and Jersey for approximately $344.2 million, securing annual rent of $34.4 million with annual escalators.
Omega also actively managed its portfolio by selling 27 facilities for $120.9 million in Q1 2025, realizing a gain of $10.1 million. The company repaid $400 million in senior notes on January 15, 2025, and a $50 million term loan in April 2025, while extending its $1.45 billion revolving credit facility to October 30, 2025.
The company raised its 2025 Adjusted FFO (AFFO) guidance to a range of $2.95 to $3.01 per diluted share, an increase from its previous guidance of $2.90 to $2.98 per share. This updated outlook reflects the strong Q1 performance and the impact of recent accretive investments.
Regarding operator updates, Genesis Healthcare, Inc. failed to make its March 2025 rent payment of $4.2 million and one loan interest payment, leading Omega to draw $4.3 million from a letter of credit. However, Genesis subsequently paid its full contractual rent and interest of $4.8 million in April 2025, and Omega's operator EBITDAR coverage remained stable at 1.51x as of December 31, 2024.
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