Omega Healthcare Investors Reports 14% Revenue Growth to $276.8 Million in Q1 2025

Omega Healthcare Investors, Inc. reported significant financial performance for the first quarter of 2025, with total revenues reaching $276.8 million, a 14% increase from $243.3 million in the same period of 2024. The growth was primarily driven by a rise in rental income, which amounted to $232.2 million, up from $206.9 million year-over-year. Net income attributable to common stockholders also saw a substantial increase, rising to $109.0 million, or $0.34 per share, compared to $67.4 million, or $0.27 per share, in the prior year.

The company experienced notable changes in its financial metrics compared to the previous fiscal period. Total expenses increased slightly to $175.3 million from $174.1 million, with depreciation and amortization expenses rising to $79.9 million, reflecting the impact of recent acquisitions and capital improvements. Interest expenses decreased to $52.3 million from $57.8 million, attributed to the repayment of $400 million in senior notes that matured in January 2025. The overall net income for the quarter was $112.1 million, significantly higher than the $69.3 million reported in the first quarter of 2024.

Strategically, Omega Healthcare made several key developments during the quarter, including the acquisition of six facilities for a total of $58.3 million, with an initial cash yield of approximately 10%. The company also invested $35.3 million in construction and capital improvement projects. Notably, in April 2025, Omega closed on the acquisition of 45 facilities in the U.K. and the Bailiwick of Jersey for £259.8 million, which will be leased to both existing and new operators.

Operationally, Omega Healthcare's portfolio consisted of 1,004 healthcare facilities across 42 states and the U.K., with a focus on skilled nursing facilities (SNFs) and assisted living facilities (ALFs). As of March 31, 2025, the company had 20 operators on a cash basis for revenue recognition, representing 18.6% of total revenues. The company also reported a decrease in cash and cash equivalents to $404.1 million, down from $548.7 million at the end of 2024, primarily due to increased financing activities and capital expenditures.

Looking ahead, Omega Healthcare remains cautious about the ongoing impacts of inflation, labor shortages, and regulatory changes affecting the healthcare sector. The company continues to monitor the financial health of its operators, particularly those facing challenges in meeting contractual obligations. Despite these uncertainties, Omega anticipates that its strategic investments and acquisitions will position the company for continued growth in the long term.