Omega Healthcare moves 32 Florida nursing homes from Airamid to PACS Group
Rent on the portfolio is set to rise by $26.1 million in the first year and by a further $2.5 million in the second, with 2% annual increases after that
Published
Chart: OHI, one-minute prices, three sessions
Omega Healthcare Investors has transferred operation of 32 skilled nursing facilities in Florida from an operator managed by affiliates of Airamid Health Services to subsidiaries of PACS Group, effective October 1, 2026.
The properties are now folded into Omega's existing master lease with PACS. Rent on the portfolio is scheduled to rise by $26.1 million in the first year and by a further $2.5 million in the second, with 2% contractual escalators each year after that. Omega booked a one-time expense of approximately $90 million in connection with the transition.
The swap deepens Omega's reliance on PACS as a tenant across its Florida holdings, adding to the concentration of risk in a single operator. It also comes the same day as a change in Omega's leadership. The $90 million charge will weigh on near-term earnings, but the rent increases are contractual, giving Omega a higher and more predictable stream of cash flow once the transition costs are absorbed.
The move fits a pattern at Omega of moving underperforming or financially stressed operators into its existing master lease structures rather than terminating the leases and exiting the properties.