OHI Stock: Omega Healthcare Dividend vs AFFO, Cash-Basis Tenants

The $0.68 dividend against Nareit FFO, AFFO and FAD

Omega reports three cash-flow measures beside GAAP net income: Nareit FFO, Adjusted FFO (AFFO) and Funds Available for Distribution (FAD). The release says FAD is “Adjusted FFO less non-cash expense, such as the amortization of deferred financing costs, and non-cash revenue, such as straight-line rent,” and that Omega “uses FAD among the performance metrics for performance-based compensation of officers.” It also warns that its AFFO and FAD “may not be comparable” to similar measures at other REITs. Of the four healthcare REITs we cover, Omega is the one that publishes both AFFO and FAD; Welltower, Medical Properties Trust and American Healthcare REIT each use Normalized FFO.

Net income in Q2 was lifted by gains on assets sold of $246.5 million, so it overstates what the portfolio earned in the quarter. Nareit FFO removes the gain, and then depreciation is added back, but it still carries the severance and stock-compensation charges from the CEO transition. The build from net income to FAD, in the order the release shows it:

FAD per share was up 6.3% from Q2 2025, which the CEO attributed to “accretive investment activity, augmented by active portfolio management.” Diluted shares, including operating partnership units, grew 4.3% over the same twelve months (316,250 thousand against 303,246 thousand, our arithmetic), so most of the per-share gain came from earnings rather than from a smaller denominator.

Six quarters, two years and the guidance

All per-share figures are diluted and as the company reports them; the percentages are our arithmetic on those rounded numbers. Two full years show the same direction:

For the first six months of 2026, Omega paid $398.4 million of dividends to common stockholders against FAD of $494.3 million, or 81% (our arithmetic; FAD also belongs to holders of operating partnership units, so the ratio is approximate). The 2026 AFFO guidance has been raised twice since it was set in February:

In 2025 the same pattern was larger: the initial AFFO range of $2.90 to $2.98 was raised to $3.08 to $3.10 on October 30, 2025, and the result was $3.10. The July 2026 release also assumes that $148 million of loans to Genesis are repaid in Q4 2026, that $56 million of $144 million of maturing mortgages and other real-estate-backed investments are converted into owned real estate, and that asset sales run at $15 million to $25 million a quarter. Those are assumptions, not results, and the guidance excludes any new acquisitions and any provision for credit losses.

Operators on a cash basis: what the count means

Omega's accounting policy is that when it is no longer probable that substantially all rent over the life of a lease will be collected, “rental revenue related to the operator lease will be recognized only to the extent of cash payments received,” and the related receivables are written off. The count has risen, and so has its share of revenue:

On June 30, 2026 Omega had 22 operators on a cash basis, which represent 22.2% of total revenues for the six months ended June 30, 2026. Three operators were placed on a cash basis in the first half (one in Q1, two in Q2), and straight-line receivable write-offs for those placements were $2.4 million. The 10-Q says the two Q2 additions are new operators leasing facilities recently acquired through foreclosure, which is a different situation from a long-standing tenant that stops paying. Separately, $9.0 million of straight-line rent and lease-inducement write-offs went through rental income in the first half because facilities moved between operators. Straight-line receivables still on the balance sheet were $264.6 million at June 30, 2026; that is the kind of balance written off when a lease moves to a cash basis.

The figure that matters for reading AFFO is that cash-basis revenue is already cash. What can move is the amount: a cash-basis operator that pays less, or stops, reduces revenue one-for-one, because there is no accrual to absorb it.

Maplewood: cash basis for rent, non-accrual for the loan

The 10-Q states that “Maplewood is on a cash basis of revenue recognition for lease purposes and non-accrual status for loan purposes as a result of liquidity issues beginning in 2023.” Omega leases 17 facilities to Maplewood under a master lease amended and restated in December 2025, one more (Inspir Embassy Row in Washington, D.C.) under a separate lease with a Maplewood joint venture, and has a revolving credit facility with Maplewood that matures in June 2037 at 7%.

For a holder, Maplewood is a case where the headline rent is being paid but part of the contractual amount is deferred and added to a growing balance. The revolver adds principal each time interest is paid in kind, and it contributes nothing to AFFO. Omega's guidance for the rest of 2026 assumes Maplewood continues to pay $19.6 million a quarter.

Genesis: Chapter 11 since July 2025, and still paying

Genesis Healthcare commenced Chapter 11 cases on July 9, 2025. Omega leases 31 facilities to Genesis under a master lease and, as a condition of the debtor-in-possession financings, Genesis must pay full contractual rent. The release states that since filing it “has made all required contractual rent and interest payments through July 2026.” The facts that decide what happens next:

• Rent and interest in Q2 2026. Omega recognized $13.3 million of Genesis rent and $5.9 million of interest, of which $0.7 million was cash and $5.2 million paid in kind.
• The loans. The super-priority DIP loan had $8.7 million outstanding after a $16.3 million paydown. Two secured term loans of $139.8 million in total principal matured on June 30, 2026; their collateral is now a second-priority lien on the equity of several Genesis ancillary businesses, their internal risk rating is 5, and all their interest accrues in kind at a weighted average default rate of 15.3%.
• The sale. The Bankruptcy Court approved a sale of Genesis' assets to 101 W State Street Holdings, LLC (WSSH) on January 26, 2026. Genesis intends to assume the Omega lease and assign it to WSSH, and the 10-Q says closing was scheduled on or before September 30, 2026. Omega's July release expects $148 million of Genesis loans to be repaid in Q4 2026.
• A dispute over collateral. The Statutory Unsecured Claimant's Committee has filed a proposed complaint regarding the collateral for Omega's term loans and payments Omega received in the 90 days before the bankruptcy filing.

As of October 16, 2026, we found no Omega filing after October 5, 2026, so no filing we read confirms whether the Genesis sale closed. That is the first item to look for in the Q3 10-Q.

LaVie: reorganized, and paying rent

LaVie Care Centers filed Chapter 11 in June 2024 and its plan became effective on May 1, 2025. The 10-K says the master lease was assumed by ENDMT LLC (Avardis) and restated with a term ending December 31, 2037 and rent of $3.1 million a month, escalating 2.5% a year, and that Avardis paid full contractual rent of $21.9 million in 2025. Two LaVie loans that had been fully reserved were discharged in the plan, effective June 1, 2025, per the 10-Q. The three LaVie loans outstanding at the end of 2025 carry paid-in-kind interest and are on non-accrual. So in Omega's filings LaVie is no longer a non-paying tenant: the lease was reassigned and paid in full in 2025, and what remains is loan exposure on non-accrual.

Concentration: no 10% tenant, three large names, and one country

At June 30, 2026 Omega's real estate portfolio was 1,022 operating facilities in 41 states, Washington, D.C., the U.K. and Jersey, operated or managed by 93 third-party operators or managers. The Triple-Net segment was 98.4% of Q2 NOI ($324.5 million of $329.9 million); the new Operating segment, where Omega owns senior housing and pays managers under the RIDEA structure, was $5.4 million and nine facilities.

The geographic list is shorter: the U.K. was 17.7% of real estate and mortgage investments at June 30, 2026, Texas 8.8% and Indiana 6.4%.

The Saber relationship is the most active change. Omega bought 9.9% of Saber's operating company for $92.8 million on January 1, 2026, with minimum quarterly cash distributions reflecting an annualized 8% yield, took 49% of a property company in October 2025, and moved 18 facilities out of a Ciena lease into Saber's master lease in Q2. The release says the Ciena lease being replaced had trailing twelve-month EBITDAR coverage of 0.87 times, against a portfolio mean of 1.65 times. The Saber property company has $582.0 million of mortgage debt at 5.6%, non-recourse to Omega. Saber leased 69 facilities directly from Omega for monthly contractual rent of $7.7 million at June 30.

On October 1, 2026 Omega moved 32 Florida skilled nursing facilities from an operator managed by affiliates of Airamid Health Services to subsidiaries of PACS Group. The October 5 release says rent on the portfolio is scheduled to rise by $26.1 million in year one and $2.5 million in year two, with 2% escalators after, and that Omega “incurred a one-time expense of approximately $90 million.” The release does not say how the expense will be treated in AFFO. Both the cost and the rent step-up will show in the Q3 and Q4 numbers.

The loan book: $1.8 billion of loans, a quarter of the non-real-estate loans reserved

Omega is also a lender. At June 30, 2026 gross mortgage notes were $918.5 million at a weighted 11.4% rate and other real estate loans $516.3 million at 8.6%; non-real-estate loans to operators or their principals were $365.8 million, with an allowance of $95.7 million, or 26% of the gross balance (our arithmetic). Within the non-real-estate book, one $5.9 million note is past due and reserved down to $4.6 million of collateral value, and a $6.4 million note is reserved down to zero. Loan interest was $46.8 million of Q2 revenue (our arithmetic: $35.7 million plus $11.0 million), 14% of the quarter's $328.2 million.

Maturities are concentrated in 2026: $135.0 million of mortgage notes, $9.1 million of other real estate loans and $192.5 million of non-real-estate loans (our arithmetic), the last including the Genesis term loans. In Q2 Omega received $172.4 million of repayments at a weighted 11.4% rate, including early repayments on CommuniCare loans tied to the sale. Repayments at 11% are cash that has to be reinvested, and the CEO said the pipeline suggests “a significant increase in the amount of capital we are able to allocate” through early 2027. Q2 investments were $126.5 million and July added $93.2 million.

The U.K. and Canada

The U.K. is 17.7% of investments at June 30, 2026, the same share as at December 31, 2025, and the largest single location in the concentration list (Texas is 8.8%). Omega bought one U.K. care home for $10.5 million in Q2, and in July 2026 bought the operating company of four U.K. care homes for $20.2 million, its first U.K. care home operating company acquisition, moving them to a RIDEA structure. It hedges the currency with 11 forward contracts for £258.0 million designated as net investment hedges. Accumulated foreign currency translation, net of tax, went from a gain of $20.4 million at December 31, 2025 to a loss of $2.6 million at June 30, 2026. Canada is new: a development loan with a maximum commitment of C$87.6 million ($61.8 million), $16.2 million funded, at 10.0%, maturing December 2035, convertible at Omega's option into 34.9% of the borrower.

The risk list names the U.K. specifically, including “changes in immigration policy that may impact labor supply,” and a significant portion of operator revenue there comes from local authority funding.

Debt: $4.1 billion, 99.9% fixed, and what falls due

Total debt was $4.1 billion at a 4.2% weighted rate, 41.8% of total capitalization, with $39.0 million of cash, $2.0 billion of revolver availability and $1.8 billion of ATM capacity. No senior note matures in the rest of 2026; 2027 to 2029 holds 50.7% of principal (our arithmetic). Of the $4.1 billion, 99.9% has fixed payments after interest rate swaps. The 10-Q says the company was in compliance with all covenants and holds Baa3 from Moody's and BBB- from S&P Global and Fitch, ratings that affect the pricing of the revolver and the 2028 term loan. The 10-Q notes the next senior note maturity as the $700.0 million of 4.50% notes due April 2027, and says that its cash, revolver and ATM capacity, with cash from operations, “provides us with the ability to repay our upcoming debt maturities.” Refinancing $700 million of 4.50% money at a coupon nearer the 5.20% of the 2030 notes would cost about $5 million a year in interest on the same principal (our arithmetic; the new rate is an illustration, not a forecast).

Share count: what the ATM has done

Shares outstanding were 299.1 million on June 30, 2026 against 295.5 million on December 31, 2025, up 1.2% (our arithmetic). In the first half of 2026 Omega sold 3.34 million shares through its at-the-market program for $160.5 million gross, at an average net price of $47.48; in the first half of 2025 it sold 7.29 million shares at a net $36.97 for $272.3 million gross. In Q2 2026 the average gross price was $47.89, and on that dated price the annualized $2.72 dividend is a 5.7% yield (our arithmetic; this is not a current quote). The 10-Q puts the market value of the common shares at $14.3 billion on June 30, 2026. In the first half Omega also paid $83.9 million in cash to redeem operating partnership units. Dividends paid in the half were $398.4 million.

Medicaid, Medicare and what the filing says about reimbursement

The payer mix and coverage data in the earnings release come from operators and are not verified by Omega; they exclude non-core facilities.

Coverage before management fees (EBITDARM) was 2.01 times for the twelve months to March 31, 2026, against 1.88 times a year earlier. These are the figures that sit underneath the rent: a rise in coverage means operators have more room, a fall means the opposite, and the latest data cover the twelve months to March 31, 2026, one quarter behind the financials.

The 10-Q is direct about the reimbursement risk. It says “a significant portion of our operators' revenue is derived from government-funded reimbursement programs, consisting primarily of Medicare and Medicaid in the U.S. and local authority funding in the U.K.” and, on the One Big Beautiful Bill Act, that “while the OBBBA does not directly lower reimbursements related to long term care providers, it may indirectly impact our operators to the extent states in which they operate reduce reimbursement levels generally.” It adds that this could happen “as a result of reduced Medicaid funds allocated by states to long-term care providers due to lower reimbursement levels for hospitals and other healthcare providers.” The forward-looking list also names staffing-ratio rules for skilled nursing facilities. The 10-K risk factors say the Bankruptcy Code “would limit or, at a minimum, delay” Omega's ability to collect unpaid pre-bankruptcy rents, which is the Genesis situation in practice.

What changed in the latest quarter, and what comes next

• The dividend. Raised $0.01 to $0.68 effective August 3, 2026, after $2.68 a year in 2024 and 2025.
• The portfolio. 26 facilities sold for $562.6 million, $126.5 million invested in Q2 and $93.2 million in July, 20 Ciena facilities moved to Saber and others, a new Operating segment reported separately for the first time.
• The cash-basis count. From 20 to 22 operators.
• The leadership. On May 19, 2026 the Board agreed that CEO C. Taylor Pickett's employment would end on October 1, 2026 and that CFO Robert O. Stephenson's would end on August 1, 2026; Neal A. Ballew became Chief Financial Officer on August 1, and Matthew P. Gourmand, the company's President since January 1, 2025, became President and Chief Executive Officer on October 1. The transition cost $18.9 million in Q2 (severance expense), and $31.8 million of incremental non-cash stock compensation and $5.7 million of cash expenses in total, of which $14.7 million and $4.2 million were in Q2 and the rest falls in Q3.
• Florida. 32 facilities moved from Airamid affiliates to PACS on October 1, with about $90 million of one-time expense.
• What is not filed. The 10-Q and earnings release for the quarter ended September 30, 2026. Last year Omega released Q3 results on October 30, 2025 and filed the 10-Q on October 31, 2025, but the filings we read give no date for 2026.

What a holder can do with this

• Choose the cash-flow line that matches your question. If you want what the company says funds the dividend, use FAD per share ($0.78 in Q2) and the 87% at $0.68. If you want a stricter line, Nareit FFO ($0.71) leaves the dividend at 96%, but it includes one-time CEO transition costs.
• Track four operator facts each quarter. The cash-basis count and share of revenue (22 and 22.2% now), the Maplewood deferred rent balance ($56.6 million) and revolver principal ($335.5 million), the Genesis sale and the repayment of the $148 million of loans, and whether any operator crosses 10% of revenues.
• Watch the dated items. The Q3 2026 10-Q (not filed as of October 16, 2026), the effect of the $90 million Florida expense on AFFO, the April 2027 maturity of $700 million of 4.50% notes, and any change to the $0.68.
• Know what kind of income it is. Omega's dividends are REIT dividends whose tax character is reported after year-end; our pages on return of capital and Section 199A explain the boxes on Form 1099-DIV.
• Size it against what else you own. OHI is one stock with a large U.K. share and a few big operators; it is also in broad REIT funds, so you may hold it indirectly (REIT ETF holdings). A listed share can be sold on any trading day at a price that moves; a non-traded REIT repurchases under rules its board controls (listed vs non-traded), and our page on a non-traded healthcare REIT that ended in a merger is here.

This is analysis of public documents, not investment, legal or tax advice. If Omega, or a mix of listed and non-traded healthcare REITs, is a large share of your portfolio, a conversation with a qualified adviser about how it fits may be worth having.

FAQ

Sources, read on October 16, 2026: Omega Healthcare Investors, Inc. (CIK 888491) Form 10-K for 2025 (accession 0000888491-26-000008, filed February 9, 2026); Forms 10-Q for the quarters ended March 31, 2026 (0000888491-26-000018, filed April 29, 2026) and June 30, 2026 (0000888491-26-000024, filed July 30, 2026); earnings-release Forms 8-K (Exhibit 99.1) of October 30, 2025 (0000888491-25-000038), February 4, 2026 (0000888491-26-000003), April 28, 2026 (0000888491-26-000016) and July 29, 2026 (0000888491-26-000022); Forms 8-K of October 1, 2026 (0001104659-26-112589) and October 5, 2026 with Exhibit 99.1 (0001104659-26-113450). Payout percentages, sums, the share of debt due by year, the Maplewood contractual-rent total, the allowance ratio, the loan-interest share, the refinancing illustration and the yield on the Q2 average price are our arithmetic. This is analysis of public documents, not investment, legal or tax advice.