Daybreak Rent Deferrals Hit Omega’s Bottom Line in Fourth Quarter

Omega Healthcare Investors, Inc. (NYSE:OHI) once again ran into problems with skilled nursing tenant Daybreak Venture in the fourth quarter of 2018, with the Denton, Texas-based operator underpaying about $4 million in rent. The Hunt Valley, Md.-based real estate investment trust (REIT) reported fourth-quarter net income of $64.9 million, or $0.31 per common share, compared […]

Orianna Close to Wrapping Bankruptcy as Former Owner Returns to Fold

Orianna Health Systems, a skilled nursing operator that entered a protracted and litigious bankruptcy last year, will effectively cease to exist after its plan of liquidation was confirmed last week. In a separate process, the company also transferred the ownership and the operations of 15 remaining facilities owned by the bankrupt operator, legally known as […]

Skilled Nursing Rents 10% Too High, Analysts Say

Skilled nursing rents must decline by about 10% across the board in order to ensure the facilities’ long-term stability, a Wednesday report from Green Street Advisors has concluded. Real estate investment trusts (REITs) must achieve rent coverage of around 1.9 times to achieve stability for their tenants, the real estate research firm’s analysts Lukas Hartwich […]

Omega to Acquire MedEquities in $600M REIT Deal

Omega Healthcare Investors (NYSE: OHI) kicked off 2019 by announcing the $600 million acquisition of MedEquities Realty Trust (NYSE: MRT), marking the ownership shift of 34 skilled nursing and other health care properties. The boards of both real estate investment trusts (REITs) approved the deal unanimously, Omega announced early Wednesday morning, with a final transaction […]

Omega Expects to Be a Buyer in ’19 After Year of Sell-Offs

After months of repositioning, Omega Healthcare Investors (NYSE: OHI) beat analyst expectations in its third-quarter earnings, and the company expects to continue the momentum next year. “We expect that in 2019, acquisitions will meaningfully outpace dispositions as we return to our historical growth mode,” CEO Taylor Pickett said on Omega’s third-quarter earnings conference call on Monday. Omega […]

Omega CEO: Skilled Nursing Headwinds Will Die Down in Three Years

Fresh off a major restructuring effort with key tenant Signature HealthCARE, the CEO of Omega Healthcare Investors (NYSE: OHI) had a decidedly sunny outlook for the skilled nursing industry’s short-term future — as well as Signature’s. “We’ll look three years out,” Taylor Pickett said of his company’s restructuring strategy during a panel discussion at the […]

Diversicare, Omega Agree to New Master Lease on 34 Skilled Nursing Facilities

Diversicare Healthcare Services (Nasdaq: DVCR) on Monday announced a new lease deal with landlord Omega Healthcare Investors (NYSE: OHI), which will see 34 skilled nursing facilities consolidated under a single agreement. The Brentwood, Tenn.-based skilled nursing provider previously had 23 facilities — scattered across Texas, Kentucky, Alabama, Florida, Ohio, and Tennessee — under one lease […]

Has the Skilled Nursing Industry Finally Hit Bottom?

As summer ends, it’s tempting to start looking ahead to what 2019 will hold for the skilled nursing industry. While the widely praised new payment model will likely grab the most attention, next year could also signal an upward climb out of an industry valley, or more troubled times ahead — depending on who you […]

PDPM Piles the Pressure on Smaller Skilled Nursing Operators

The new skilled nursing payment model has received mostly praise from the industry since its finalization in late July, but it could have the side effect of leading more mom-and-pop SNFs to exit the space altogether. It’s important to note, however, that it’s not the only reason they’re leaving. “While PDPM is a big factor […]

Editor’s Take: Multiple CEOs (Probably) Can’t Be Wrong on PDPM

When covering any industry that operates under heavy government scrutiny, hearing one CEO praise a new set of regulations is a surprise. Hearing near-unanimous support is frankly shocking. But that’s where the skilled nursing industry finds itself with the Patient-Driven Payment Model, the latest overhaul of the way SNFs receive reimbursements from Medicare. On its […]

Omega Joins CareTrust in Predicting Post-PDPM Wave of Skilled Nursing Sales

Leaders at two major real estate investment trusts (REITs) focused on health care assets have predicted a coming wave of mergers-and-acquisitions volume as smaller providers refuse to adapt to new skilled nursing payment rules. As mom-and-pop operators begin to unpack the changes associated with the Patient-Driven Payment Model (PDPM) — the new set of therapy […]

Orianna Strikes Back at Omega Over Terminated Restructuring Deal

Orianna Health Systems fired back at landlord Omega Healthcare Investors (NYSE: OHI), claiming that the real estate investment trust’s (REIT) decision to terminate a restructuring deal will prove detrimental to both parties. “Orianna is disappointed by Omega’s actions, which we believe will only cause delay in finalizing Orianna’s reorganization and impair the recovery ultimately realized […]

Omega Pulls Plug on Restructuring Agreement with Struggling Orianna Skilled Nursing Chain

Omega Healthcare Investors, Inc. (NYSE: OHI) has pulled out of a proposed restructuring agreement with troubled tenant Orianna Health Systems, citing frustration with the process and a desire to protect its shareholders. The Hunt Valley, Md.-based real estate investment trust (REIT) said Monday that Omega will terminate its participation in the deal effective July 25. […]

Distressed SNF Takeovers Can Pay Off, But Risks Abound

Struggling skilled nursing facilities present a minefield of potential risks for new owners and operators, but there are ways to mitigate them, even when the current operator is facing serious financial distress. That’s according to Louis Robichaux, senior managing director at the consulting firm Ankura who focuses on health care restructuring, and George Mesires, leader of the senior […]

Shifting List of Top-Paid Skilled Nursing CEOs Shows Industry Volatility

What a difference a year makes. In 2017, Skilled Nursing News profiled the salaries of the seven highest-paid CEOs at the biggest skilled nursing companies for the previous year. Of those executives, three didn’t make it to the 2018 roundup of the highest-paid CEOs — but that’s mainly a function of the upheaval that’s shaken […]

Omega Gets Approval to Transition Majority of Orianna Portfolio

Real estate investment trust (REIT) Omega Healthcare Investors (NYSE: OHI) received approval from the U.S. Bankruptcy Court for the Northern District of Texas to transition 23 of 42 facilities operated by its skilled nursing tenant, 4 West Holdings, Inc., to new operators. 4 West Holdings, known with its affiliates as Orianna Health Systems, entered Chapter 11 Bankruptcy in March. […]

Omega Inks New Deal with Signature, Sees Hot Local M&A Market

One day after Sabra Health Care REIT (Nasdaq: SBRA) announced a major restructuring deal with skilled nursing provider Signature HealthCARE, fellow real estate investment trust (REIT) Omega Healthcare Investors (NYSE: OHI) followed with an agreement of its own. The Louisville, Ky.-based Signature had fallen about $25 million behind on its rent payments to Omega by […]

ProMedica-ManorCare Deal May Affirm Skilled Nursing’s Future in Senior Living

The splashiest skilled nursing deal of the year portends better things to come for the industry as a whole, according to the leader of one prominent senior living real estate investment trust (REIT). National Healthcare Investors (NYSE: NHI) CEO Eric Mendelsohn touted the recent $1.95 billion acquisition agreement between Welltower Inc. (NYSE: WELL) and Quality Care Properties (NYSE: QCP) […]