Omega Healthcare Investors Inc (NYSE: OHI)

Omega Healthcare Investors, Inc. is a Maryland corporation that invests in healthcare related real estate properties in the United States the United Kingdom and Canada and has elected to be taxed as a REIT. The company owns and operates a diversified portfolio of skilled nursing facilities assisted living facilities independent living facilities specialty facilities and continuing care retirement communities. It also provides real estate loans and uses RIDEA structures to generate income from property operations.

Omega Healthcare Investors, Inc. generates revenue primarily from triple net lease agreements where tenants pay rent and all operating expenses. It earns interest income from mortgage loans and other real estate loans secured by healthcare properties. The company receives management fees from RIDEA arrangements in which it contracts third party property managers to operate facilities. Additionally it records equity earnings from investments in unconsolidated entities and interest income from non real estate loans to operators.

The company operates through the following segments.

• Healthcare Real Estate Investments – This segment includes the acquisition and ownership of skilled nursing facilities assisted living facilities independent living facilities specialty facilities and continuing care retirement communities. It also encompasses real estate loans RIDEA structures and investments in unconsolidated entities that support the long term healthcare industry.

Omega Healthcare Investors, Inc. competes with other public and private REITs investment companies private equity hedge fund investors healthcare operators lenders developers and institutional investors for acquisitions of healthcare real estate. Its competitive advantages stem from a long term triple net lease structure that shifts operating costs to tenants a geographically diverse portfolio across multiple property types and a focus on partnering with creditworthy operators. The company’s scale and REIT status provide access to capital and tax efficiency while its use of RIDEA structures offers flexibility to participate in facility operations.

The company serves third party healthcare operating companies that lease its properties and third party property managers that manage facilities under RIDEA agreements. It also works with joint venture partners in unconsolidated entities that own or finance healthcare real estate.