I really urge you to at least read this one page from OHI website: omegahealthcare.com. once on that page, click to expand the "Portfolio Strength" section... there you will find a lot of nuggets:
"our largest operator accounting for only 10% of total rent / interest."
"Property-level expenses – labor, insurance, property taxes, and capital expenditures – are the operator’s responsibility,meaning OHI has no operating risk."
"Omega receives fixed rent payments from tenants, with annual escalators."
"No upcoming material lease expirations until 2020 and no material lease renewal risk."
Simply put: operators worry about reimbursement and OHI simply collects the rent -- this is no different from O or NNN.
And Morningstar has this: "Omega Healthcare Investors Inc., the largest REIT focused solely on skilled nursing properties, saw its net income nearly double in the first half this year compared with the same period last year, mainly from acquisitions and other investments. Its share price is down around 7% over the past year.
"Most of our tenants are experiencing modest earning pressure as a result of CMS's [Centers for Medicare & Medicaid Services'] continued push towards episodic payment systems," but lease payments aren't affected, said Omega spokesman Thomas H. Peterson. The Centers for Medicare & Medicaid Services' has been moving away from a fee-for-service payment model for years now, but the vast majority of Omega's tenants have cash flow that exceeds their rent obligations, he said."
I can find no news wrt OHI spinning anything off... Ventas is the only outfit that pops up in my searches in that respect... but there is nothing on OHI's website, or indeed anything I Google on, that suggests OHI is spinning anything off... their business is really quite simple and straight forward... instead of speculating on this or that, spend 15 mins. on their website and I think you'll see what I mean. |
