Omega Healthcare Investors, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $87 million ($0.27 per diluted share) for the quarter ended September 30, 2026, compared to $184.9 million ($0.60 per diluted share) in the same period in 2025.
• Adjusted Funds From Operations (AFFO) totaled $262 million ($0.82 per diluted share) for the quarter, up from $243 million ($0.79 per diluted share) in Q3 2025.
• Funds Available for Distribution (FAD) reached $250 million ($0.78 per diluted share), an increase from $231 million ($0.75 per diluted share) in Q3 2025.
• Net Operating Income (NOI) was $332 million for the quarter, compared to $310 million in Q3 2025.
• Total revenues for the quarter were $340.6 million, compared to $311.6 million in Q3 2025.
• Rental income was $252.8 million for the quarter, down from $260.7 million in Q3 2025.
• As of September 30, 2026, the Company had $4.1 billion in outstanding indebtedness with a weighted average annual interest rate of 4.2%.
• Total cash and cash equivalents were $195.9 million as of September 30, 2026, with $2.0 billion in undrawn capacity under its unsecured revolving credit facility.

Guidance and Future Outlook:

• Raised full-year 2026 Adjusted FFO guidance to a range of $3.28 to $3.30 per diluted share, up from the previous range of $3.22 to $3.26 per diluted share.
• Guidance assumes NewGen pays full contractual rental obligations of $13.3 million per quarter following the lease assumption, equating to approximately $14.0 million in straight-line revenue per quarter.
• Guidance assumes Maplewood continues to pay monthly rent of $6.9 million.
• Guidance assumes quarterly General and Administrative (G&A) expenses of approximately $14 million to $15.5 million.
• Guidance assumes quarterly dividends of $0.68 per share.
• Guidance excludes the impact of asset sales of approximately $15 million to $25 million expected in the fourth quarter.
• Management expects to make further accretive investments through the remainder of 2026 and into early 2027.

Business Segments and Product Lines:

• Completed $182 million of investments during the third quarter, bringing total 2026 investment activity to approximately $1.5 billion.
• Completed $946 million in new investments since the quarter-end.
• Acquired 17 facilities for $167.3 million in the third quarter, including:
  • A $73.4 million triple-net acquisition of six skilled nursing facilities (SNFs) in Texas.
  • A $77.7 million operating portfolio acquisition of five senior housing communities in the U.S.
  • A $16.2 million triple-net acquisition of six care homes in the U.K.
• Funded $14.2 million in real estate loans in the third quarter, including $12.8 million (CAD 18.0 million) in additional funding for a Canadian development loan.
• Converted two U.K. triple-net operator relationships covering 30 care homes to RIDEA structures for a payment of $48 million.
• Transitioned 32 Florida SNFs to PACS Group, Inc. in October 2026, increasing annual contractual rent by $26.1 million in the first year.
• Finalized the Genesis Healthcare bankruptcy sale in October 2026, with Omega's lease assumed by NewGen and DIP/term loans repaid.
• Saber PropCo JV, in which Omega holds a 49% equity interest, owns 71 facilities leased to Saber Healthcare Holdings under triple-net leases generating $83.1 million in annual contractual rent.

Market and Competitive Landscape:

• Operator revenue mix for the twelve months ended June 30, 2026, consisted of 47.8% Medicaid, 26.9% Medicare/Insurance, and 25.3% Private/Other.
• Operator census and coverage data for the twelve months ended June 30, 2026, showed 82.7% occupancy, 2.03x EBITDARM coverage, and 1.67x EBITDAR coverage.
• The Company operates a portfolio spanning the U.S., U.K., and Canada, primarily structured under long-term triple-net leases with an increasing portion managed through RIDEA structures.

Risks and Challenges:

• The press release notes risks related to operator bankruptcies, including the potential for operators to reject unexpired lease obligations or modify mortgage terms.
• Risks include staffing shortages, increased costs, and the sufficiency of governmental reimbursement rates to offset costs.
• Potential impacts from regulatory changes, including minimum staffing requirements and changes to Medicaid/Medicare reimbursements.
• Risks associated with changes in tax laws, interest rates, foreign currency exchange rates, and inflation.
• Operational risks related to regulatory transaction approvals and management of operating expenses for RIDEA structures.

Management Commentary and Tone:

• CEO Matthew Gourmand stated the Company reported strong third-quarter results, growing FAD per share year-over-year while reducing leverage to the lowest level in the Company's history.
• Management highlighted that the pipeline remains strong and operating metrics continue to be robust with improving operator coverage.
• Mr. Gourmand noted the backdrop for delivering strong shareholder returns remains in place, supported by a strong balance sheet and cost of capital.

Other Key Points:

• Issued 4.7 million common shares in the quarter for gross proceeds of $234 million.
• The Board of Directors declared a quarterly cash dividend of $0.68 per share, payable November 16, 2026, to stockholders of record on November 5, 2026.
• Recorded an $11.4 million net impairment charge related to one facility in the third quarter.
• One care home with a net book value of $1.3 million was classified as held for sale as of September 30, 2026.
• Received $149.5 million in October 2026 related to repayments of amounts outstanding under DIP and term loans from the Genesis bankruptcy finalization.
• In November 2026, funded an $845.7 million GBP-denominated mortgage loan secured by 48 U.K. care homes and leasehold interests in 7 additional care homes, with an interest rate of 8.72% maturing in November 2031.