Hunt Valley, Maryland — Omega Healthcare Investors says it still sees skilled nursing as a long-term bet, even as the real estate investment trust trims part of its CommuniCare exposure and navigates a highly competitive deal market.
During the company’s first-quarter earnings discussion this week, President Matthew Gourmand said skilled nursing assets continue to attract serious interest because of limited supply, regulatory barriers in many states, and the sector’s room for margin growth when occupancy improves.
That message came as Omega moved ahead with a strategic sale of 18 CommuniCare-operated facilities in Maryland and West Virginia for a contractual purchase price of about $480 million. Company disclosures show 12 Maryland facilities were sold in April, with the remaining six West Virginia properties expected to close in the second quarter.
Even with that divestment underway, Omega made clear it is not backing away from nursing home investments. The company reported $326 million in year-to-date investment activity, including $251 million completed in the first quarter. That total included a $109 million acquisition of 13 skilled nursing facilities in Georgia, along with other post-quarter investments.
The company’s latest results suggest why investors are still leaning in. Omega said its adjusted funds from operations reached $0.82 per diluted share for the quarter, up from $0.75 a year earlier. Executives also pointed to improving operator performance, with skilled nursing EBITDAR coverage rising to 1.58x and occupancy holding at 82.6%.
Those numbers matter beyond Wall Street. They reinforce the idea that capital is still flowing into the sector, particularly when operators can show steadier reimbursement, better execution, and room to refinance into cheaper debt. That lines up with recent skilled nursing deal activity across the market, where lenders and buyers are still finding reasons to deploy money despite reimbursement and labor pressure.
Selective, not retreating
Omega’s executives described the current environment as disciplined rather than defensive. In other words, the company is still shopping for opportunities, but it is being more selective about where it places capital and which tenants it wants to strengthen.
That distinction matters for operators watching the financing market. While some portfolios are being pared back, the broader signal from Omega is that skilled nursing remains investable when assets are in the right markets and backed by tenants with a credible operating story.
For nursing home owners and executives, the takeaway is straightforward: capital has not disappeared. But it’s getting choosier.
