I initially started writing about Omega Healthcare Investors (OHI) just under a year ago. In that article, I voiced my opinion that OHI was a value trap. OHI fell dramatically amid news of various tenants having problems paying rent, including two top ten tenants Orianna and Signature. However, over the last quarter, OHI has surged and recovered most of the initial drop and is trading in roughly the same range it was a year ago.
Source: Tradingview.com
Orianna & Signature
Much of the downward pressure was due to Orianna and Signature failing to pay full rent. On May 11th, the bankruptcy court approved OHI's plan for the sale or restructuring of the properties and management remains confident they can get $32-$38 million in annual rent from the properties. That is approximately 60-70% of the rent the properties paid in 2016.
