Omega Healthcare Investors Inc. (NYSE: OHI) stock outpaced the market last month, rising 12% compared to a 2% decline in the S&P 500, according to S&P Global Market Intelligence. The rally pushed shares back into significantly positive territory for the year, up 18% so far compared to a 19% increase in the broader market.
Image source: Getty Images.
The real estate investment trust (REIT), which focuses on the healthcare industry, reported earnings results early in the month that Wall Street celebrated. Omega said in the report that funds from operations, a key industry growth metric, inched up to $157 million from $155 million a year earlier.
More importantly, the REIT accumulated a few new properties at attractive prices, including in a deal for over 60 skilled nursing and assisted living facilities for $735 million.
That deal should help Omega return to a faster growth pace this year, management said in a conference call with investors. However, there are several challenges to that bright forecast, including operating struggles with a major rent tenant located in Texas. Investors might also see new share issuances in the coming quarters, which would help boost capital levels at the expense of per-share returns.
10 stocks we like better than Omega Healthcare Investors
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Omega Healthcare Investors wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of June 1, 2019