Omega Healthcare Investors OHI Q3 2026: A 72% EPS Beat and Raised Guidance

Omega Healthcare Investors posted adjusted AFFO-based earnings of $0.82 per share in Q3 2026, surging past the $0.48 consensus estimate by 71.58%. Revenue of $340.55 million also cleared Wall Street's $272.07 million forecast by 25.17%, growing 9.3% year over year. The quarter extended the company's streak of topping analyst expectations to six consecutive quarters.

A significant portion of the revenue outperformance came from the company's accelerating shift toward RIDEA operating structures, which contributed $30.76 million in resident fees and services that had no prior-year equivalent. That structural change, moving from traditional triple-net leases to a more direct operating arrangement, is now a meaningful and growing line in Omega's income statement. Lower interest expense of $44.5 million versus $58.1 million a year ago also helped lift the bottom line.

On the strength of those results, management raised its 2026 Adjusted FFO guidance to $3.28 to $3.30 per diluted share, up from a prior range of $3.22 to $3.26. CEO Matthew Gourmand noted the midpoint moved up five cents, and also pointed to leverage falling to the lowest level in the company's history. The quarterly dividend of $0.68 per share remains intact, with a payment date of November 16.

Omega's investment activity was equally busy. The company completed a large-scale $845.7 million mortgage loan to Foundation secured by the U.K. Runwood Portfolio, transitioned 32 Florida skilled nursing facilities to PACS raising annual rent by $26.1 million to $58.0 million, and converted 30 U.K. care homes from triple-net to RIDEA structures. Year-to-date investment activity reached roughly $1.50 billion when including post-quarter deployment.

Looking ahead, Gourmand said the deal pipeline remains strong and that management expects to make further accretive investments through the rest of 2026 and into early 2027. Operator EBITDAR coverage improved to 1.67x and EBITDARM coverage to 2.03x on a trailing twelve-month basis through June 30, 2026, suggesting the underlying health of Omega's tenant base continues to hold. Investors will get more detail on the November 4 earnings call.