As a large skilled nursing facility-focused real estate investment trust, Omega Healthcare Investors appears to be on an upward financial trajectory, according to a February investor presentation. As reported by Seeking Alpha, the company has had a steady track record with compound annual growth of 15.2% and a yearly dividend increase pegged at 9.3% from 2003 to 2020. It’s also now positioned near its all-time high stock price and is a strong contender for continued share price growth.
At the close of 2019, Omega’s portfolio consisted of 964 operating facilities, and investors shared that the REIT had an impressive $1.7 billion dedicated solely to investments for 2019. The agency expects a strong performance as 2020 continues, according to Omega CEO Taylor Pickett.
“We expect the momentum of 2019 to carry into 2020, Pickett said in a press release about Omega’s fourth-quarter 2019 financial performance. “We are excited for our Maplewood-run Carnegie Hill assisted living facility to begin accepting residents in the coming months. The new Medicare reimbursement model, the Patient Driven Payment Model, or PDPM, has received positive feedback from operators. While it’s too early to make any definitive conclusions, when combined with the recent 2.4% increase in Medicare reimbursement and the promising demographic tailwinds, we believe our operators are well-positioned to weather the continued labor cost pressures and generate solid financial performance over time.”