Omega Healthcare Investors (OHI) risk factors, FY2025 10-K

Risks Related to the Operators of Our Facilities

1. 01The bankruptcy or insolvency of our operators could limit or delay our ability to recover on our investments
2. 02Failure by operators to comply with government regulations may adversely impact their ability to make debt or lease payments or meet their obligations to us71% rewritten
3. 03Our operators depend on reimbursement from governmental and other third-party payors, and reimbursement rates from such payors may be reduced, modified or delayed, including through reductions to the Medicare and Medicaid programs for U.S. operators24% rewritten
4. 04We may be unable to find a replacement operator for one or more of our leased properties
5. 05Our operators may be subject to significant legal actions that could result in their increased operating costs and substantial uninsured liabilities, which may affect their ability to meet their obligations to us; and we may become party to such legal actions25% rewritten
6. 06Increased competition as well as increased operating costs, including due to macroeconomic trends, result in lower revenues for some of our operators and may affect the ability of our operators to meet their obligations to us62% rewritten
7. 07We may be unable to successfully foreclose on the collateral securing our loans, and even if we are successful in our foreclosure efforts, we may be unable to successfully find a replacement operator, or operate or occupy the underlying real estate, which may adversely affect our ability to recover our investments
8. 08Uninsured losses or losses in excess of our operators’ insurance coverage could adversely affect our financial position and our cash flow
9. 09Our development and redevelopment projects may not yield anticipated returns
10. 10We are exposed to operational risks with respect to our properties managed in RIDEA structures that could have a material adverse effect on our business, results of operations and financial conditionNew

Risks Related to Us and Our Operations

1. 11Severe respiratory disease seasons, epidemics, pandemics or other widespread illnesses could adversely affect our properties and could have a material adverse effect on our business, results of operations, cash flows and financial condition35% rewritten
2. 12There are no assurances of our ability to pay dividends in the future
3. 13We rely on external sources of capital to fund future capital needs, and if we encounter difficulty in obtaining such capital, we may not be able to make future investments necessary to grow our business or meet maturing commitments
4. 14Our ability to raise capital through equity sales is dependent, in part, on the market price of our common stock, and our failure to meet market expectations with respect to our business, or other factors we do not control, could negatively impact such market price and availability of equity capital
5. 15We are subject to risks associated with debt financing, including changes in our credit ratings, which could negatively impact our business and limit our ability to make distributions to our stockholders and to repay maturing debt
6. 16We may be subject to additional risks in connection with our acquisitions of long-term care facilities
7. 17Our assets, including our real estate and loans, are subject to impairment charges, and our valuation and reserve estimates are based on assumptions and may be subject to adjustment
8. 18Our indebtedness could adversely affect our financial condition
9. 19Covenants in our debt documents limit our operational flexibility, and a covenant breach could materially adversely affect our operations
10. 20We are subject to particular risks associated with real estate ownership, which could result in unanticipated losses or expenses
11. 21Our real estate investments are relatively illiquid, and we may not be able to acquire or dispose of properties or otherwise redeploy capital when desired or on favorable termsNew
12. 22We face possible risks and costs associated with severe weather conditions, natural disasters or the physical effects of climate change
13. 23As an owner or lender with respect to real property, we may be exposed to possible environmental liabilities
14. 24The industry in which we operate is highly competitive. Increasing investor interest in our sector and consolidation at the operator or REIT level could increase competition and reduce our profitability
15. 25Our charter and bylaws contain significant anti-takeover provisions which could delay, defer or prevent a change in control or other transactions that could provide our stockholders with the opportunity to realize a premium over the then-prevailing market price of our common stock
16. 26Our assets are concentrated in the long-term care industry and face geographic and operator concentration risk41% rewritten
17. 27Our primary assets are the units of partnership interest in Omega OP and, as a result, we will depend on distributions from Omega OP to pay dividends and expenses
18. 28Members of our management and Board hold partnership interests in Omega OP, and their interests may differ from those of our public stockholders
19. 29Our investments in joint ventures or other equity investments could be adversely affected by shared decision-making authority, our counterparty’s financial condition, and our exposure to potential losses from the actions of our counterparties65% rewritten

Risks Related to Taxation

1. 30There is a risk of changes in the tax law applicable to REITs82% rewritten

Risks Related to Our Stock and Capital Structure

1. 31Our success depends in part on our ability to retain key personnel and our ability to attract or retain other qualified personnel
2. 32We rely on information technology in our operations, and any material failure, inadequacy, interruption or security failure of that technology could harm our business. Privacy and security laws and regulations may also increase costs for our business28% rewritten
3. 33Failure to maintain effective internal control over financial reporting could have a material adverse effect on our business, results of operations, financial condition and stock price