Omega Healthcare Investors, Inc. (OHI): Business Model Canvas [Dec-2025 Updated]

You're digging into Omega Healthcare Investors, Inc. (OHI), and honestly, what you're seeing is a masterclass in specialized real estate finance: they are the capital backbone for the US and UK senior care sector. As of $\text{Q3 2025}$, OHI manages a $\text{\$11.4 billion}$ portfolio, primarily by structuring long-term, triple-net leases that push the day-to-day operating risk right onto their partners, which is their core value proposition. This model generates steady rental income-they hit $\text{\$312 million}$ in revenue that quarter-but to truly assess this investment, you need to see exactly how they manage their key partnerships and the costs tied to their debt, like that $\text{\$2.3 billion}$ credit facility. Below, we break down their entire Business Model Canvas so you can see the mechanics behind the dividend.

Omega Healthcare Investors, Inc. (OHI) - Canvas Business Model: Key Partnerships

Omega Healthcare Investors, Inc. relies on a network of key external entities to execute its investment strategy, primarily focused on the post-acute and long-term care real estate sector.

Healthcare Operators and Portfolio Diversification

• Partnering with 88 regional and national healthcare providers across the U.S. and the U.K. as of 9/30/2025.
• The portfolio spans properties in 42 states, the District of Columbia, and the U.K..
• Gross real estate investments totaled about $11.4 billion.
• The portfolio includes 1,024 properties and 93,159 beds.
• No single operator accounts for 10% or more of total rent/interest as of 9/30/2025.
• The company has no scheduled material lease expirations until 2027.

Lenders for the Senior Unsecured Credit Facility

Omega Healthcare Investors, Inc. closed a new senior unsecured $2.3 billion credit facility on September 30, 2025, replacing a previous $1.45 billion facility. This facility was supported by over 20 incumbent and new financial institutions.

The $2.3 billion facility is comprised of a $2.0 billion revolving credit facility maturing September 28, 2029, and a $300.0 million delayed draw term loan facility maturing September 29, 2028. The facility includes an accordion feature allowing expansion up to $3.0 billion.

Joint Venture Partners

Omega Healthcare Investors, Inc. actively engages in joint ventures, notably deepening its relationship with Saber Healthcare Holdings, LLC.

• Formed a $222.4 million property joint venture (JV) in October 2025 with Saber affiliates to own and lease 64 facilities.
• Omega received a 49% equity stake in the JV, issuing approximately 5.5 million Omega OP Units valued at $222.4 million.
• The JV facilities generate $69.4 million in annual rent under triple-net leases.
• Omega also entered an agreement to invest $93 million (or $92.6 million cash) for a 9.9% equity interest in Saber's operating company, expected to close January 1, 2026.
• The OpCo investment is structured to yield a minimum annualized return of 8% through quarterly distributions.

Investment Banks for Capital Markets Access

Omega Healthcare Investors, Inc. maintains proven access to the largest public equity and debt capital markets. The syndicate for the $2.3 billion credit facility involved multiple financial institutions acting as arrangers, bookrunners, and agents. For instance, Bank of America, N.A. served as Administrative Agent and L/C Issuer. The company also issued $600 million of 5.2% senior unsecured notes due 2030 in Q2 2025.

Government Agencies

The revenue streams supporting Omega Healthcare Investors, Inc.'s partners are indirectly funded by government programs.

• The majority of Omega Healthcare Investors, Inc.'s operators are reimbursed through government-funded Medicare and Medicaid payments.
• This stable reimbursement model provides a buffer against economic volatility, provided reimbursements keep pace with inflation.

Omega Healthcare Investors, Inc. (OHI) - Canvas Business Model: Key Activities

The Key Activities for Omega Healthcare Investors, Inc. (OHI) center on deploying capital into healthcare real estate, managing the resulting asset base, and maintaining robust access to public capital markets to fuel growth and ensure tax efficiency as a REIT.

Acquiring and financing new healthcare real estate assets

Omega Healthcare Investors, Inc. actively pursues new investments, which, as of late 2025, included a mix of real estate acquisitions, loans, and equity interests in operating companies. The company completed approximately $978 million in new investments Year-to-Date through September 2025.

Recent investment activity highlights include:

• Completed $151 million in Q3 2025 new investments.
• Closed a $222 million acquisition for a 49% equity interest in a portfolio of 64 healthcare facilities with Sabre Healthcare in October 2025.
• Committed $93 million for a 9.9% equity stake in Sabre Healthcare Holdings' operating company.
• Investments completed through April 2025 totaled $423 million.
• New real estate acquisitions in Q2 2025 totaled $502 million.
• New investments carry a weighted average initial annual cash yield of 10.0% with annual escalators ranging from 2.0% to 2.5%.

Managing and restructuring the 1,024 property portfolio

The management activity focuses on maintaining a large, diversified physical footprint and optimizing the portfolio through sales and structural changes. As of September 30, 2025, Omega Healthcare Investors, Inc. held a portfolio of 1,024 Properties across the US & UK, encompassing 93,159 Beds. The gross real estate investments stood at about $11.4 billion, with Total Assets reported at $10.596B for the quarter ending September 30, 2025. The portfolio is operated by 88 third-party operators, with no single operator accounting for 10% or more of total rent/interest as of 9/30/2025.

Portfolio restructuring involved asset sales and strategic shifts:

Raising capital through debt and equity markets

Omega Healthcare Investors, Inc. actively accesses public markets to fund its investment pipeline and manage its balance sheet structure. The company completed a significant equity raise in late 2025.

Capital raising events include:

• Raised approximately US$709.92 million via an at-the-market follow-on equity offering in early November 2025, issuing over 16 million shares.
• Issued 7 million common shares in Q2 2025 for gross proceeds of $258 million.
• Issued 7 million common shares in Q1 2025 for gross proceeds of $264 million.
• Issued $600 million of 5.2% senior unsecured notes due 2030 in Q2 2025.
• Repaid $600 million of senior unsecured notes at par value on October 15, 2025.
• Entered a new $2.3 billion senior unsecured credit facility, replacing the previous $1.45 billion facility.

Monitoring operator financial health and rent coverage (EBITDAR)

A core activity is the continuous assessment of operator viability, which directly impacts rental income streams. The metrics show improvement as of late 2025.

Key operator health indicators:

• Trailing 12-month operator EBITDAR coverage for the core portfolio increased to 1.55x.
• This 1.55x coverage represents the highest level in 12 years.
• The portion of rent with coverage below 1x dropped to 4.3%.
• For Genesis, the trailing 12-month EBITDAR coverage exceeded 1.6x as of Q1 2025.

Maintaining REIT compliance for tax-efficient operations

Operational performance supports the REIT structure, evidenced by strong cash flow metrics relative to shareholder distributions. The company raised its full-year 2025 Adjusted FFO guidance to between $3.08 to $3.10 per diluted share.

Financial metrics supporting this structure include:

• Q3 2025 Adjusted FFO (AFFO) was $0.79 per diluted share.
• Q3 2025 Funds Available for Distribution (FAD) was $0.75 per diluted share.
• The dividend payout ratio fell to 85% of AFFO and 89% of FAD for Q3 2025.
• Leverage was reduced to 3.59x, with a fixed charge coverage ratio of 5.1x.
• Q3 2025 Revenue totaled $312 million.

Omega Healthcare Investors, Inc. (OHI) - Canvas Business Model: Key Resources

You're looking at the bedrock assets Omega Healthcare Investors, Inc. (OHI) uses to generate returns, which is really about owning the right real estate and having the capital ready to deploy. Honestly, for a REIT like this, the physical assets and the credit lines are the engine.

The first, and most obvious, resource is the real estate itself. As of the end of the third quarter of 2025, Omega Healthcare Investors, Inc. reported its Total Real Estate Investments stood at $11.4 billion. This portfolio is spread across the U.S. and the U.K., partnering with a diverse group of operators.

Next up is liquidity and borrowing power. You need dry powder to keep growing, especially when the investment pipeline is active. Omega Healthcare Investors, Inc. secured a new $2.3 billion senior unsecured credit facility recently, replacing an older, smaller one. This access to capital is key for funding acquisitions or managing operator needs without stretching leverage too far.

The structure of the leases is a core resource, too. Omega Healthcare Investors, Inc. focuses on long-term, triple-net master lease agreements. That structure means the operator, not OHI, handles most property expenses like taxes, insurance, and maintenance, which helps stabilize the cash flow coming in. Still, management is expanding investment structures beyond just traditional triple-net leases, looking at joint ventures and minority interest investments to sustainably grow Funds Available for Distribution (FAD) per share.

The team running the show definitely counts as a key resource. You have a specialized management team with deep healthcare real estate expertise. Their ability to manage operator risk and secure accretive deals is reflected in the portfolio's performance metrics, like the trailing 12-month operator EBITDAR coverage for the core portfolio hitting 1.55x.

Finally, the cash on hand provides immediate flexibility. At the close of Q3 2025, the balance sheet held $737 million in cash, specifically reported as $737.2 million in total cash and cash equivalents as of September 30, 2025. This liquidity supports immediate actions, like the repayment of $600 million of senior unsecured notes at par value in October 2025.

Here's a quick look at some of the key financial figures supporting these resources as of the third quarter of 2025:

The operational strength underpinning these resources is visible in a few other key areas:

• Year-to-date new investments completed: $978 million (YTD 2025)
• Q3 new real estate acquisitions: $67 million (aggregate consideration of $67.3 million)
• Recent equity investment in Sabre's operating company: 9.9% stake
• Dividend payout ratio for AFFO: 85% (Q3 2025)
• Dividend payout ratio for FAD: 89% (Q3 2025)

The management team is also actively managing operator risk, which is a critical, though less tangible, resource. They reported that Genesis Healthcare made all required contractual payments in Q3 2025, recording $12.9 million in rental income from Genesis for the quarter. Also, the company completed a 49% equity interest acquisition in a 64-facility portfolio from Sabre for $222 million in October 2025.

Finance: draft 13-week cash view by Friday.

Omega Healthcare Investors, Inc. (OHI) - Canvas Business Model: Value Propositions

You're building a portfolio that needs reliable, long-term income from essential healthcare assets. Here's the core value Omega Healthcare Investors, Inc. (OHI) delivers to its stakeholders, grounded in the numbers as of late 2025.

Stable, long-term capital for healthcare operators' growth strategies

Omega Healthcare Investors, Inc. provides the essential capital base that allows healthcare operators to execute their growth plans without tying up their own balance sheets in long-term real estate ownership. This is about providing the foundation for their care delivery.

The company's investment activity reflects this commitment to growth capital deployment:

• Year-to-date through Q3 2025, Omega Healthcare Investors, Inc. completed approximately $978 million in new investments.
• In Q3 2025 alone, new investments totaled approximately $151 million.
• This Q3 deployment included $67 million in real estate acquisitions and $8 million in real estate loans.
• The pipeline for the remainder of 2025 and into 2026 is described as very favorable.

Triple-net lease structure transfers property operating risk to the tenant

The primary structure Omega Healthcare Investors, Inc. uses is the triple-net lease. This means the tenant operator assumes responsibility for property-level expenses, which is a key de-risking factor for the REIT. This structure helps ensure a more predictable rental stream for Omega Healthcare Investors, Inc. shareholders.

The strength of the underlying operator base directly supports this value proposition:

• Trailing 12-month operator EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent) coverage for the core portfolio rose to a healthy 1.55x as of Q3 2025.
• The portion of rent with coverage below 1x dropped to 4.3%.
• The company has no scheduled material lease expirations until 2027.

Diversified portfolio across 42 US states and the UK reduces single-market risk

You get exposure to a geographically broad base of essential healthcare real estate, which smooths out regional economic or regulatory volatility. This diversification is a cornerstone of the investment thesis.

Here's a look at the scale and spread of the portfolio as of September 30, 2025:

Furthermore, Omega Healthcare Investors, Inc. maintains operator diversification, with no single operator accounting for 10% or more of total rent/interest as of 9/30/2025. That's defintely important for stability.

Predictable, high-yield income stream for investors

The goal is to deliver consistent, high-yield cash distributions, supported by the predictable lease revenue. The company's guidance and quarterly results show this stream is growing.

Key income metrics from the third quarter of 2025:

• Funds Available for Distribution (FAD) for Q3 2025 was $231 million, or $0.75 per diluted share.
• Adjusted Funds From Operations (AFFO) for Q3 2025 was $243 million, or $0.79 per diluted share.
• The dividend payout ratio to AFFO for the quarter was 85%.
• Full-year 2025 AFFO guidance was raised to a range of $3.08 to $3.10 per diluted share.

Flexibility in investment structures, including real estate and mortgage loans

Omega Healthcare Investors, Inc. is not limited to just buying and leasing properties; they use a broader toolkit to seek accretive returns, including debt and equity investments. This flexibility allows them to capture higher yields when real estate opportunities are priced too tightly.

Recent examples of this expanded structure include:

• A $222 million acquisition in October 2025 for a 49% equity interest in a 64-facility portfolio with Saber Healthcare.
• A $93 million commitment for a 9.9% equity stake in Sabre Healthcare Holdings' operating company.
• In Q3 2025, the company funded $8 million in real estate loans with a weighted average interest rate of 10.0%.

Omega Healthcare Investors, Inc. (OHI) - Canvas Business Model: Customer Relationships

Omega Healthcare Investors, Inc. (OHI) views its operator relationships as long-term partnerships, fundamentally anchored by contractual obligations but actively managed to ensure mutual sustainability.

Long-term, contractual relationships via master lease agreements form the backbone of the structure. These are not simple leases; they are complex, multi-facility master lease agreements that often span decades. For instance, the LaVie master lease, after its tenant's reorganization, was assigned to ENDMT LLC ("Avardis") with a lease term extending through December 31, 2037, featuring annual rent escalators of 2.5%. This long duration provides revenue visibility, which is key for a Real Estate Investment Trust (REIT).

The relationships are tested during operator financial stress, which necessitates active portfolio management and operator support. You saw this play out with Genesis Healthcare, Inc., which filed for Chapter 11 bankruptcy protection on July 9, 2025. Omega responded by providing $8.0 million in debtor-in-possession (DIP) financing to keep operations going. Even while in bankruptcy, Genesis paid its full contractual rent in October 2025, covering the $52 million annual rent obligation across the thirty-one facilities covered by Omega's lease. This proactive support is part of the capital partner approach, not just being a passive landlord.

The commitment to being a capital partner approach, not just a passive landlord, is evident in Omega Healthcare Investors, Inc.'s evolving investment toolkit. Instead of only traditional triple-net leases, the company is increasingly using joint ventures and minority investments to support growth. In Q3 2025, Omega completed a $222 million acquisition for a 49% equity interest in an entity holding 64 facilities with Sabre Healthcare. Furthermore, as of late 2025, Omega has a pending commitment of $93 million for a 9.9% equity stake in Sabre Healthcare Holdings, which is structured to provide minimum quarterly cash distributions equivalent to an annualized yield of 8% on that investment.

The focus is definitely focused on maintaining high EBITDAR coverage with operators, as this metric is the primary indicator of tenant health and rent-paying ability. The Investor Relations team provides detailed quarterly financial reporting to track this. For the core portfolio, the trailing 12-month operator EBITDAR coverage climbed to 1.55x as of Q3 2025, which management noted was the highest level in 12 years. The percentage of total rent coming from operators with coverage below 1x has shrunk significantly, dropping to just 4.3% of total rent. This focus on coverage directly supports the company's financial guidance, with the raised 2025 Adjusted Funds From Operations (AFFO) guidance midpoint at $3.09 per share, representing 8% year-over-year growth versus 2024 AFFO of $2.87 per share.

The investor relations function translates this operational strength into clear financial metrics for stakeholders. For the third quarter ended September 30, 2025, Omega reported Adjusted Funds From Operations (AFFO) of $0.79 per diluted share and Funds Available for Distribution (FAD) of $0.75 per diluted share. This led to a reduction in the FAD dividend payout ratio to 89% for the quarter.

Here's a look at the portfolio composition and the resulting coverage metrics as of the latest reporting periods:

The relationships are managed across a broad base of operators, with Omega partnering with 88 regional and national healthcare providers in the U.S. and U.K. as of September 30, 2025. The company is clearly signaling a preference for operators who can demonstrate strong financial performance, as evidenced by the continuous improvement in coverage ratios and the resulting raised 2025 AFFO guidance to $3.08 to $3.10 per share.

You should review the Q4 2025 pipeline details to see how the new joint venture structures are progressing against the traditional master lease renewals.

Omega Healthcare Investors, Inc. (OHI) - Canvas Business Model: Channels

You're looking at how Omega Healthcare Investors, Inc. (OHI) gets its deals done and communicates with the market as of late 2025. It's a mix of direct team effort, public financing, and deep industry relationships. Here's the breakdown of their Channels block.

Direct Investment Team for Sourcing and Underwriting New Acquisitions

The internal team is clearly busy, driving significant capital deployment through various structures. Year-to-date through the third quarter of 2025, Omega Healthcare Investors, Inc. completed $978 million in new real property and loan investments. This channel isn't just about traditional buys; it involves structuring complex deals, like the October 2025 joint venture with Saber Healthcare Holdings, LLC, where OHI acquired a 49% equity interest in an entity holding 64 facilities for $222 million. Furthermore, they are actively expanding their toolkit, noting an agreement in October 2025 to acquire a 9.9% equity interest in Saber's operating company for a committed cash consideration of $92.6 million.

Here's a look at the investment deployment through the first three quarters of 2025:

The weighted average initial annual cash yield on new real property and loan investments year-to-date through Q2 2025 was 10.0% with escalators between 2.0% and 2.5%.

Public Capital Markets (NYSE: OHI) for Common Stock and Debt Issuance

Omega Healthcare Investors, Inc. actively uses the public markets to fund growth and manage its balance sheet. They closed a new senior unsecured credit facility totaling $2.3 billion in September 2025, which replaced the previous $1.45 billion facility. This move provided increased funding flexibility and helped manage maturities. They also issued $600 million of 5.2% senior unsecured notes due in 2030 during the second quarter of 2025, which were subsequently redeemed at par value on October 15, 2025.

Equity issuance channels were used to raise capital for investments:

• Q1 2025: Issued 7 million common shares for gross proceeds of $264 million.
• Q2 2025: Issued 7 million common shares for gross proceeds of $258 million.
• Q3 2025: Issued 2 million common shares for gross proceeds of $89 million.

As of the quarter ended September 30, 2025, the Long-Term Debt & Capital Lease Obligation stood at $4,995 million, against Total Stockholders Equity of $5,036 million, resulting in a Debt-to-Equity ratio of 0.99.

Investor Relations Website and Quarterly Conference Calls

Communication with the investment community is channeled through regular, scheduled events and a dedicated website section. Omega Healthcare Investors, Inc. reported its third quarter 2025 results on October 30, 2025, following a press release and an announced conference call date of October 3, 2025. The second quarter 2025 earnings conference call took place on Friday, August 1, 2025, at 10 a.m. Eastern Time. The Investor Relations page on the Omega Healthcare Investors website serves as the hub for accessing News & Events, Financial Info, Stock Data, Dividends, and SEC Filings. As of December 4, 2025, the common stock was trading at $46.197 with a volume of 448.53k shares. The company increased its full-year 2025 Adjusted FFO guidance to a range of $3.08 to $3.10 per diluted share.

Real Estate Brokers and Industry Contacts for Deal Flow

While the direct team underwrites, the initial deal flow is sourced through established industry networks, focusing on the long-term healthcare sector across the U.S. and the U.K. As of September 30, 2025, Omega Healthcare Investors, Inc. served 88 Operators across 1,024 Properties in 42 States and 1 Foreign Country. Management described the investment pipeline as very active. The company's strategy involves leveraging its strong balance sheet and cost of capital to pursue accretive investments. The portfolio metrics show strong operator health, with trailing 12-month operator EBITDAR coverage for the core portfolio increasing to 1.55x.

Direct Negotiation with Existing Operators for Portfolio Expansion

A key channel involves direct negotiation and partnership with existing operators to expand or restructure the portfolio. This is evident in the company's shift toward non-traditional structures like joint ventures and minority equity stakes.

Examples of direct operator engagement in 2025 include:

• The $222 million October 2025 transaction with affiliates of Saber Healthcare Holdings, LLC, resulting in a 49% equity ownership in 64 facilities leased back to Saber subsidiaries, generating $69.4 million in annual contractual rent.
• In Q2 2025, $158 million was invested to acquire 12 facilities (8 SNFs, 4 ALFs) leased to two existing operators and two new operators.
• In April 2025, $344 million was invested in 45 care homes across the U.K. and Jersey, leased to four existing operators and two new operators.
• Regarding distressed assets, Omega provided $8.0 million in debtor-in-possession financing to Genesis Healthcare, Inc. after its Chapter 11 filing on July 9, 2025, with the condition that Genesis pay full contractual rent. Genesis made all required contractual rent and interest payments in Q3 2025.

Omega Healthcare Investors, Inc. (OHI) - Canvas Business Model: Customer Segments

You're looking at the core groups Omega Healthcare Investors, Inc. (OHI) serves, which are primarily the operators of the facilities they finance, and the investors who provide the capital. Here's the quick math on who those customers are as of late 2025, based on the latest filings.

Operator Segments: Facility Operators

The primary customer base consists of operators who need long-term capital structures for their physical assets. Omega Healthcare Investors, Inc. focuses on senior healthcare facilities across the US and the United Kingdom. As of September 30, 2025, the portfolio breakdown shows the scale of this segment:

• Total Properties: 1,024
• Total Beds: 93,159
• Geographic Footprint: 42 states, the District of Columbia, and the U.K.
• Number of Third-Party Operators: 88

The portfolio is structured to mitigate concentration risk with its operators. As of September 30, 2025, no single operator accounted for more than 10% of total rent/interest.

The facility types served include both Skilled Nursing Facilities (SNF) and Assisted Living Facilities (ALF), with recent acquisitions showing activity in both US and UK markets. For example, in the third quarter of 2025, Omega Healthcare Investors, Inc. acquired two facilities, one being a U.K. care home. Also in Q3 2025, one U.S. real estate acquisition was completed for $58.6 million. Post-quarter end in October 2025, a major joint venture involved 64 facilities, which are leased to SABR under long-term triple-net leases.

Omega Healthcare Investors, Inc. also engages in real estate loan investments. In Q2 2025, the Company funded $25 million in mortgage and other real estate loans with a weighted average interest rate of 10.0%.

Investor Segments: Capital Providers

The second major customer group is the investment community, which provides the equity capital necessary for Omega Healthcare Investors, Inc.'s acquisitions. This group is segmented into institutional and retail investors.

For institutional investors seeking stable, dividend-paying REIT exposure, the recent activity shows significant capital flow:

• Amount of Institutional Buying (Last 6 Months): $3.9B
• Current Institutional Ownership Percentage: 115.52%
• Leverage Ratio (Post Q3 2025 activity): Down to approximately 3.59x

Retail investors are drawn to the income stream, which Omega Healthcare Investors, Inc. has consistently delivered. The company has 21 consecutive years of dividend payments.

Healthcare Companies Needing Sale-Leaseback Transactions

While the specific number of sale-leaseback transactions as a distinct customer segment isn't explicitly quantified separately from general acquisitions, the core business model involves acquiring real estate and leasing it back to operators. The $502 million in real estate acquisitions completed in Q2 2025, for instance, aligns with this need for capital deployment against existing assets. The strategy prioritizes long-term leases with fixed-rate escalators, which is the structure used in these transactions.

Omega Healthcare Investors, Inc. (OHI) - Canvas Business Model: Cost Structure

You\'re looking at the expenses that drive the operations for Omega Healthcare Investors, Inc. (OHI) as of late 2025. For a Real Estate Investment Trust (REIT) like OHI, the cost structure is heavily weighted toward financing and maintaining its massive portfolio.

Interest expense on debt, including the new $2.3 billion credit facility is a major component. As of September 30, 2025, Omega Healthcare Investors, Inc. had $5.0 billion in outstanding indebtedness, carrying a weighted average annual interest rate of 4.6% on that total debt. This debt profile was recently refreshed by closing a new $2.3 billion senior unsecured credit facility in September 2025, which replaced the previous $1.45 billion revolving credit facility. This new package includes a $2.0 billion four-year revolving credit facility and a $300.0 million three-year delayed draw term loan facility. Furthermore, Omega Healthcare Investors, Inc. proactively managed liabilities by repaying $600 million of senior unsecured notes at par value on October 15, 2025.

General and administrative (G&A) expenses are projected with some precision for near-term planning. The initial 2025 guidance assumed quarterly G&A expense would run between $12 million to $14 million. However, for the fourth quarter of 2025, management projected this expense to be between $13.5 million to $14.5 million.

Here's a quick look at those G&A projections:

Property-related costs during operator transitions or restructurings are variable but material. For the third quarter ended September 30, 2025, the reported Acquisition, merger and transition related costs were $6,437 (presumably in thousands, based on context). During that same quarter, the company also recorded $1,144 (likely in thousands) for Impairment on real estate properties. These costs are a direct reflection of the active portfolio management, which includes dealing with operators like Genesis Healthcare, which filed for Chapter 11 bankruptcy.

While specific line items for professional fees are not explicitly broken out in the latest reports, these costs are inherently part of the investment process. The due diligence and legal work associated with closing $978 million in new investments year-to-date through October 2025 would certainly involve significant professional fees. These fees are part of the overall expense associated with acquiring assets, such as the $222 million total consideration for the 49% equity interest in the Saber Healthcare Holdings, LLC joint venture in October 2025.

Finally, the cost of rewarding shareholders through dividend payments is a fixed commitment for Omega Healthcare Investors, Inc. The Board declared a cash dividend of $0.67 per share for the third quarter of 2025, payable on November 17, 2025. This translates to a dividend payout ratio of 89% based on Funds Available for Distribution (FAD) for Q3 2025.

The key cost drivers are:

• Interest expense on $5.0 billion of debt at a 4.6% weighted average rate.
• Projected Q4 2025 G&A expense between $13.5 million and $14.5 million.
• Variable transition costs, such as Q3 2025 Acquisition, merger and transition related costs of $6,437 (in thousands).
• A regular quarterly cash dividend of $0.67 per share.

Omega Healthcare Investors, Inc. (OHI) - Canvas Business Model: Revenue Streams

You're looking at the core ways Omega Healthcare Investors, Inc. brings in money as of late 2025. The company's revenue structure is built on real estate cash flow, supplemented by lending and investment gains.

For the third quarter of 2025, Omega Healthcare Investors, Inc. reported total revenue of $312 million. This compares to revenue of $276 million for the third quarter of 2024.

Rental income from triple-net master leases (primary source)

The bulk of Omega Healthcare Investors, Inc.'s revenue comes from rental payments under triple-net master leases. This is the bedrock of the business model, representing predictable, long-term cash flow from its portfolio of senior care facilities.

Specific rental streams include:

• The Genesis lease covers thirty-one facilities, representing $52 million in annual rent.
• Maplewood paid $18.7 million in rent during the third quarter.

Interest income from real estate mortgage loans and secured loans

Omega Healthcare Investors, Inc. also generates income by acting as a lender, providing mortgage and other real estate-backed loans to operators. This provides a yield component to the overall revenue mix.

Recent activity in this area includes:

• In the second quarter of 2025, the company funded $24.8 million in mortgage and other real estate loans with a weighted average interest rate of 10.0%.
• In the third quarter of 2025, Omega invested $84 million in real estate loans across 4 separate transactions, carrying an interest rate of 10%.
• These loan investments sometimes include an option for Omega to acquire an ownership interest in the underlying real estate upon refinancing.

Income from joint venture equity investments, like the Saber JV

Omega Healthcare Investors, Inc. is actively diversifying into deeper equity partnerships, such as joint ventures, which can offer higher potential returns than pure real estate ownership or lending. This involves sharing in both the cash flow and the upside of the underlying operations.

The recent Saber Healthcare partnership is a prime example of this revenue stream:

• Omega invested $222 million in October 2025 for a 49% equity stake in a real estate joint venture holding 64 facilities.
• These 64 facilities are leased to Saber and generate $69.4 million in contractual rent per annum.
• Omega anticipates receiving an initial annual return on this investment of 9.3%.
• The company also entered an agreement for a 9.9% equity interest in Saber's operating company for $92.6 million, expecting an 8% minimum quarterly cash yield.

Proceeds from accretive asset sales and dispositions

Selling assets, especially those sold at a gain, provides non-recurring income that can be redeployed into new, accretive investments. These sales are considered part of the active portfolio management that supports overall revenue and earnings growth.

For the third quarter of 2025, Omega Healthcare Investors, Inc. reported:

In the first quarter of 2025, the company sold 27 facilities for $120.9 million in cash.

Here is a look at the key Q3 2025 financial metrics related to revenue generation:

Finance: draft 13-week cash view by Friday.