Omega Healthcare Investors Inc. said Wednesday that it plans to expand its holdings to the United Kingdom, in a $175 million deal for 23 assisted living facilities.
The acquisition, announced on a conference call with investors to discuss the Hunt Valley firm's first quarter earnings, is expected to close in the next two weeks, said CEO C. Taylor Pickett. It is the firm's first foray internationally for many years.
The purchase follows the firm's merger with the smaller, Chicago-based Aviv REIT, which closed at the end of last quarter, and brought Omega's portfolio to more than 900 properties in 41 states, including 16 in Maryland.
Acquisition costs, along with refinancing expenses, were some of the drags on the firm's performance in the first three months of the year.
Omega reported net income of $43.1 million, or 32 cents per share, down from net income of $55.8 million, or 45 cents per share, during the same period in 2014. Operating revenue rose 10 percent, to $133.4 million, while operating expenses rose nearly 25 percent, to $47.5 million.
After adjustments, the firm's funds from operations per share — the metric preferred by real estate investment trusts — was flat year-over-year at 71 cents per share.
Omega stock closed Wednesday at $36.65, down roughly 2.9 percent for the day.