Omega Healthcare Raises 2026 AFFO Guidance to $3.28-$3.30 as Q3 AFFO Rises 3.8% to $0.82 a Share

Omega Healthcare Investors raised its 2026 outlook again on Tuesday after third-quarter adjusted funds from operations rose 3.8% per share, and the skilled nursing landlord said it has now completed $1.5 billion of new investments this year.

The real estate investment trust reported AFFO of $262 million, or $0.82 per diluted share, up from $243 million, or $0.79, a year earlier, according to the earnings release it filed with an 8-K. Funds available for distribution climbed 4.0% to $0.78 per share from $0.75.

Total revenue rose 9.3% to $340.6 million from $311.6 million. Net income fell to $86.8 million, or $0.27 per diluted share, from $185.0 million, or $0.59, as the year-ago quarter included a $28.3 million gain on asset sales and this quarter carried $59.9 million of acquisition, merger and transition costs plus $18.8 million of severance expense. Nareit FFO came in at $0.60 per share versus $0.78.

Guidance moves up again

Omega now expects 2026 AFFO of $3.28 to $3.30 per diluted share, up from its previous range of $3.22 to $3.26. The outlook assumes quarterly dividends of $0.68 per share and that $306 million of loans outstanding at Sept. 30 are repaid in the fourth quarter.

"We continued to grow FAD per share year over year, while reducing leverage to the lowest level in the Company's history," CEO Matthew Gourmand said in the release. He said the company was able to move its AFFO guidance midpoint "up by five cents to $3.29."

A big U.K. loan after quarter-end

Omega invested $182 million during the third quarter and another $946 million since Sept. 30. The largest piece is a £631.7 million ($845.7 million) mortgage loan to an affiliate of existing operator Foundation Partners, secured by 48 U.K. care homes and leasehold interests in 7 more. The loan carries an 8.72% rate, rising to 8.94% in year two, and Omega holds an option to buy the underlying real estate.

During the quarter, the company also paid $48.0 million to convert 30 U.K. care homes from triple-net leases to RIDEA operating structures.

Operator updates

On Oct. 1, Omega moved 32 Florida skilled nursing facilities to PACS Group, paying the prior operator a $90.0 million termination fee. Initial annual rent on the facilities is $58.0 million, $26.1 million more than before. The Genesis Healthcare bankruptcy sale was also finalized in October, with Omega's master lease assumed by the buyer and $149.5 million of loan repayments received.

Operator EBITDAR coverage improved to 1.67x for the 12 months ended June 30 from 1.65x for the 12 months ended March 31.

Balance sheet and dividend

Omega ended September with $4.1 billion of debt at a 4.2% weighted average rate, $195.9 million of cash and $2.0 billion of undrawn revolver capacity. It issued 4.7 million shares in the quarter for gross proceeds of $234 million.

The board declared a quarterly dividend of $0.68 per share, payable Nov. 16 to holders of record on Nov. 5.

By the numbers

• AFFO per share: $0.82, up 3.8%
• FAD per share: $0.78, up 4.0%
• Revenue: $340.6 million, up 9.3%
• Diluted EPS: $0.27, versus $0.59
• 2026 AFFO guidance: $3.28 to $3.30, from $3.22 to $3.26
• Quarterly dividend: $0.68

Sources

1. Omega Healthcare Investors, Inc. Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0000888491-26-000028)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

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