The qualified audits of skilled nursing operators Genesis Healthcare and Signature Healthcare have raised concern about the sector among some investors. But one investment banking firm is predicting strong third-quarter earnings for skilled nursing focused real estate investment trusts such as Omega Healthcare Investors and Sabra Health Care REIT. That’s according to an analysis in GlobeSt.com this week.
Omega Healthcare Investors announced Thursday that it will move to a cash-basis accounting method for tenants Genesis Healthcare and Agemo Holdings LLC (f/k/a Signature Healthcare). The move comes as Omega was informed by the two firms of doubt regarding their ability to continue as a “going concern” in relation to the uncertainty around future cash flows caused by the COVID-19 pandemic.
A week after the sector’s largest companies reported first-quarter earnings, several analysts have shared their views on how healthcare real estate investment trusts are faring amidst the ongoing COVID-19 pandemic, according to an S&P Global Market Intelligence article.
Senior living and skilled nursing communities in Omega Healthcare Investors’ portfolio are weathering the effects of COVID-19 through declining occupancy and significantly elevated costs, according to executives on a first quarter earnings call.
Historically, investors have often viewed independent and assisted living communities — most often paid for out-of-pocket by residents — as safer bets than skilled nursing facilities, which generally are paid for via government programs such as Medicare and Medicaid. So they encouraged operators in their senior housing portfolios to engage in efforts to attract private-pay residents. The COVID-19 pandemic may be turning that assumption on its head, according to an article published Thursday by The Motley Fool. This could be good news SNF-focused real estate investment trust Omega Healthcare Investors.
Omega Healthcare Investors announced a common stock dividend of $0.67 per share Monday, in line with previous quarters. The dividend is payable May 15 to common stockholders of record as of the close of business on April 30.
As the biggest SNF-focused real estate investment trust (REIT), 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.
With the Inspir Carnegie Hill assisted living and memory care community expected to open early next year in Manhattan, Omega Healthcare Investors and Maplewood Senior Living are “actively looking for the next big opportunity” in urban senior living development, Omega CEO Taylor Pickett said Wednesday.
Omega Healthcare Investors and CVS Health Corp. executives talked about the importance of senior living to their plans Wednesday on their second-quarter earnings calls.
Weeks before a meeting at which a vote on their planned $600 million merger is set to take place, Omega Healthcare Investors and MedEquities Realty Trust are facing four lawsuits that seek to prevent the deal, the real estate investment trusts said Monday in a filing with the Securities and Exchange Commission.
