Omega Acquires 15 Skilled Nursing Facilities for $200 Million

Omega Healthcare Investors, Inc. (NYSE: OHI) on Tuesday announced the purchase of 15 skilled nursing facilities in Indiana, adding 2,074 SNF beds to the real estate investment trust’s (REIT) portfolio.

The Hunt Valley, Md.-based Omega paid $190 million for the facilities from a pair of unrelated sellers, then leased the properties to a single existing operator. The deals closed on August 31, the company reported. It did not disclose the operators.

“We are excited to further strengthen our portfolios with one of our top SNF operators with this acquisition,” Omega CEO Taylor Pickett said in a statement announcing the deal. “We will continue to work with our operators to identify acquisitions and dispositions that strengthen portfolio cash flows.”


Omega is currently eyeing more than $200 million in potential dispositions that could close over the next year, Pickett said in the statement.

The REIT also used a $9.4 million loan to buy the leasehold interest in another Indiana SNF operated by the same provider as the other Hoosier State facilities, Omega reported.

Hurricane damage update


Omega has about 1,000 long-term care (LTC) properties in 42 states and the United Kingdom, with a group of 77 operator partners. Of those facilities, 32 are located in areas of Texas and Louisiana affected by Hurricane Harvey, and the REIT announced Tuesday that its assets suffered “relatively little damage.” Two facilities on the Sabine River, which flows through both states, were evacuated as a result of the historic storm, Pickett reported in a release.

“Omega sends its thoughts and prayers to our operators, their staff, the residents at the facilities, and the surrounding communities that have been impacted by Hurricane Harvey,” Pickett said. “It is much too early to assess the effect on the surrounding communities and the dedicated staff that cares for our facility residents.”

CareTrust REIT, Inc., another real estate investment trust that owns skilled nursing facilities, similarly reported last week that its seven properties in Harvey’s wake largely escaped flooding and wind damage.

Written by Alex Spanko

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