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Subject:  Opinions on Omega Healthcare Investors (OHI) Date:  9/11/2021  6:46 PM
Author:  Valuemongeragain Number:  86778 of 87038

Over the years I have been a bull on OHI and made a lot of money on it. From buying it in back in 2001 to holding it back when other SNF property owners were disposing their SNF properties and OHI was able to buy them quite cheaply while using funds borrowed at very low interest rates. OHI did quite well.

Then a couple of things occurred.

First the SNF issues that many properties owners feared when they disposed of their SNF properties occurred. Perhaps not as bad as some had feared, but there were industry headwinds.

Second is that OHI started raising their dividends faster in my opinion than they should have. Despite a dividend cut in 2018 OHI's dividend in 4Q2018 was 101% of FAD.

Today things appear better operationally and even after dividend increases in 2019 and 2020, OHI's dividend was down to 83% in 2Q2021 and it is now yielding 8.1% due to some share price weakness starting in early August.

Other than investors being worried about which way the political winds are blowing in Washington, I cannot figure out what is worrying the market about OHI and in 15+ years of following OHI the market was wrong as often as it was correct about federal Medicaid payments to SNF operators.

Anyone own or follow OHI? Opinions?

Unless I find something not to like about OHI soon, I will probably buy some OHI shares especially if the shares weaken any further.
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