Omega Healthcare Investors Continues to Thrive with Strong Q4 Earnings and Active Acquisition Pipeline
Omega Healthcare Investors (Omega) recently reported its fourth-quarter earnings, showcasing impressive financial growth and a robust acquisition pipeline. In the call held on February 6, CEO Taylor Pickett emphasized the company's ability to reduce leverage while delivering FAD (Funds Available for Distribution) growth.
For the fourth quarter of 2024, Omega's revenue reached $279 million, up from $239 million in the same period last year. This increase is primarily attributed to new investments, operator restructurings, and transitions. Net Operating Income before Reconciliation (NAREIT FFO) for the quarter was $196 million or $0.68 per share, as compared to $129 million or $0.50 per share in 2023.
The company's Adjusted Funds from Operations (AFFO) was $214 million or $0.74 per share for the quarter, with FAD at $202 million or $0.70 per share. Both AFFO and FAD exclude several items outlined in the NAREIT FFO, adjusted FFO, and FAD reconciliations to net income. Notably, Omega's Q4 FAD was just under $0.005 greater than its Q3, a testament to the company's financial discipline.
In 2024, the team successfully closed over $1 billion in transactions, deploying approximately $1.1 billion in capital while maintaining a strong balance sheet with over $500 million in cash at year-end. Omega's CEO, Taylor Pickett, expressed confidence in the company's ability to prefund investments by issuing equity as long as its equity currency remains favorable.
The company recently announced management changes, appointing Matthew Gorman as President and Vikas Gupta as Chief Investment Officer. Taylor Pickett praised Dan Booth for his significant contributions to Omega's outperformance over 23 years and expressed gratitude for the opportunity to work with him.
Omega's active acquisition pipeline remains strong, with a potential $1.45 billion credit facility available for future investments. The company is poised to continue its growth trajectory in 2025, with FFO guidance set at $2.90 per share to $2.98 per share. This reflects the first quarter of 2025's dilutive impact from significant share issuances, offset by escalators and other opportunities throughout the year.
