The quarter in five facts
Omega Healthcare Investors (NYSE: OHI) reported third-quarter 2026 results on November 3 and discussed them on November 4.
- AFFO of $0.82 per share, up from $0.79 a year earlier, with FAD of $0.78 and NOI of $332 million. Full-year AFFO guidance moved up for the fifth time, to $3.28–$3.30.
- Thirty U.K. care homes moved from triple-net leases to RIDEA. Omega paid £35.8 million (about $48 million) largely to terminate the leases, and three existing U.K. operators now manage the homes. Before conversion those homes paid £20.1 million a year in rent at 1.47× EBITDAR coverage.
- Ten U.S. senior housing communities went into RIDEA structures — five in the quarter for $78 million and five more in October for $49.3 million — under third-party managers.
- The SHOP sleeve is 44 communities out of 415 senior housing assets and 620 skilled nursing assets. Third-quarter SHOP occupancy was 88.8%, RevPOR $6,658, and operating margin 16.9%; the operating segment produced $9.7 million of NOI, about 3% of the total.
- About $1.5 billion invested year to date, including $946 million since quarter-end, the largest piece an $846 million U.K. mortgage loan with a purchase option on 48 care homes.
Asked where the pipeline is heading, Chief Investment Officer Vikas Gupta said it is leaning more toward senior housing RIDEA and U.K. care homes, both triple-net and RIDEA.
- AFFO per share
- $0.82, up from $0.79 a year earlier
- FAD per share
- $0.78
- NOI
- $332 million
- FY 2026 AFFO guidance
- Raised for the fifth time, to $3.28–$3.30
- U.K. care homes moved to RIDEA
- 30, from triple-net leases
- U.S. communities moved to RIDEA
- 10 (five in the quarter, five in October)
- SHOP occupancy / RevPOR / margin
- 88.8% / $6,658 / 16.9%
- Invested year to date
- About $1.5 billion
Source: Omega Q3 2026 results release (November 3, 2026). All figures as reported, point-in-time and unaudited; comparisons are to the prior-year quarter.
The sentence that matters most
Omega’s release reports its operators’ occupancy (82.7%), EBITDAR coverage (1.67×), and payer mix for the twelve months to June 30, 2026. Directly beneath those figures it says: "The Company has not independently verified this information and is providing this data for informational purposes only."
That is not a confession. It is the correct description of how a triple-net owner knows what it knows. A lessor’s own number is the rent, which is contractual. Everything about the building underneath — census, labor, margin — is the tenant’s number, supplied quarterly, and the owner’s job is to judge whether the rent is covered, not to produce the figures.
Omega has disclosed this for years, and it is more candid about it than most. What is new this quarter is that for 30 homes in the U.K. and ten communities in the U.S., the arrangement just flipped. Under RIDEA, the operating figures are no longer informational. They are Omega’s reported NOI.
What changes when a lease becomes an operation
The 30 U.K. homes are a clean experiment. Last quarter they produced £20.1 million of rent from two tenants. This quarter they produce operating NOI from three managers. The buildings did not change. The residents did not change. What changed is whose number Omega reports, and what Omega has to be able to say about it.
Under the leases, if a tenant’s census and Omega’s own view of the building disagreed, nothing happened to Omega’s financials. The rent was still the rent. Under RIDEA, that disagreement lands in Omega’s NOI, its guidance, and the covenant package its lenders read. Someone has to decide which figure governs, and the decision has to be reproducible when an auditor asks six months later.
Three specific things become Omega’s problem the day a lease converts:
- Definitions
- Three U.K. managers under CQC regulation and a handful of U.S. managers under state rules each count occupancy, available units, and move-in dates their own way. Omega now has to pick one definition per figure and hold every manager to it.
- Continuity
- The homes have years of history as leased assets. Whether that history is comparable to the first RIDEA quarter depends on whether the definitions were carried across the conversion or restarted.
- Authority
- When a manager’s census and Omega’s roll disagree, the lease had an answer built in: the rent. RIDEA has no built-in answer. Either Omega writes the rule in advance, or the figure is settled by whoever is in the room.
None of this is a criticism of Omega. The 44-community SHOP sleeve is about 3% of NOI; a capable asset-management team handles it by hand. The question is what happens as the pipeline tilts the way management says it is tilting. The owners that went this road earlier — Sabra, Diversified Healthcare Trust, National Healthcare Properties — are now reporting SHOP as a large share or the whole of their NOI, and each faces these three questions.
What to watch
- The first full RIDEA quarter
- Fourth-quarter results in February will show the 30 U.K. homes as operations for the first time. Whether Omega presents them with a same-store definition, and how it bridges from rent to NOI, will say more about its reporting than any commentary.
- The margin series
- SHOP margin ran 18.5% in Q1, 12.5% in Q2, 16.9% in Q3, on a population that changed every quarter. A reader cannot tell operating improvement from mix shift without a governed pool rule. Watch whether one appears.
- The next conversion
- Management says the pipeline leans RIDEA. Each one adds a manager’s source systems to a reporting line that used to be a rent check. The disclosure to look for is not the yield; it is how the figures arrive and who signs off.
The question for every lessor going RIDEA
When the manager’s census, the owner’s roll and the general ledger say three different things, which record governs, and can a lender follow the trail without a phone call?
For a decade the honest answer to "how do you know your operators’ numbers?" was the one Omega prints: we don’t verify them, and we don’t have to. That answer stops working on the day the owner reports the operation as its own.
The replacement is not more data from the manager. It is a rule, set before the disagreement, about which record governs — and a trail from the reported figure back to the building. Owners that write that rule early will scale RIDEA cleanly. Owners that don’t will discover the question in diligence.
SeniorCRE® is operator-controlled operating infrastructure for senior housing & care. The Operator-Controlled Operating Record is designed and not yet implemented in any community; no customer outcomes are claimed. Omega and its operators are not SeniorCRE customers or endorsers.
Coherence before Intelligence.
Frequently asked questions
- What is Omega’s stock symbol?
- Omega Healthcare Investors trades on the New York Stock Exchange under the symbol OHI.
- Does this post say Omega’s reported figures are wrong?
- No. It asserts no reporting deficiency at Omega or any operator. Omega’s unverified-data statement is quoted as the sector’s own description of how triple-net reporting works.
- Why does a RIDEA conversion change the owner’s reporting question?
- Under a lease the owner reports contractual rent; under RIDEA it reports occupancy, rate, labor and margin produced in each manager’s systems as its own NOI, so it must govern definitions, continuity and authority.
- What would a 30-minute assessment cover?
- Bring five contested numbers and leave with a written map of where the authority gaps are, whether or not you ever buy anything.
For institutional owners and operators
If your organization reports operating figures that originate in someone else’s systems, bring five contested numbers and leave with a written map of where the authority gaps are, whether or not you ever buy anything. Request a 30-Minute Assessment.