| SEGMENTS |
NOTE 21 – SEGMENTS Effective April 1, 2026, our Chief Executive Officer, who serves as our CODM, began separately evaluating the performance of our Triple-Net and Operating investments. This change was driven by the Company’s continued expansion of RIDEA-structured and other operating investments following its initial RIDEA transaction in the fourth quarter of 2025. As a result of this change in how the CODM evaluates performance and allocates resources (including employees and financial or capital resources), the Company changed its segment reporting structure from a single operating and reportable segment to two operating and reportable segments: (i) Triple-Net and (ii) Operating. Although the Operating segment does not meet the quantitative thresholds for separate disclosure under ASC 280, we have elected to present it as a reportable segment given its distinct operating characteristics and to enhance transparency for investors. In connection with this change in segment structure, the CODM also revised the segment profit measure and significant expense measures used to evaluate the business. Under the prior single-segment structure, the CODM primarily evaluated performance based on net income. With the two-segment structure, Net Operating Income ("NOI") is the primary measure used by the CODM to evaluate segment performance, as it better reflects property-level operating performance across both segments and excludes the impact of corporate-level financing and other non-operating items included in net income. Under the prior single-operating segment structure, interest expense was identified as the most significant segment expense because of its significance within a business model centered on deploying capital into long-term contractual financing arrangements. Upon transitioning to two segments and adopting NOI as the segment profit measure, property-level expenses represent the significant expense category included in the NOI measure and most regularly reviewed by the CODM to assess segment performance. The Company defines NOI as total revenues less property-level expenses for consolidated and unconsolidated entities. For unconsolidated entities, NOI reflects the Company's proportionate share of the unconsolidated entities’ NOI rather than GAAP income (loss) from unconsolidated entities, as this provides a consistent basis for evaluating investments regardless of ownership structure. The difference between proportionate NOI and GAAP income (loss) from unconsolidated entities is included as a reconciling item below. NOI is a non-GAAP measure and is reconciled to net income below. Prior period information for the comparable periods has been recast below to reflect the changes to the Company’s segments, segment profit measure, and significant segment expenses. The following table summarizes information for the reportable segments for the three months ended June 30, 2026: | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | | | | | | | Non-Segment/ | | | | | Triple-Net | | Operating | | Corporate(1) | | Total | | | (in thousands) | Revenues | | | | | | | | | | | | | Rental income | | $ | 266,486 | | $ | — | | $ | — | | $ | 266,486 | Interest income | | | 46,756 | | | — | | | — | | | 46,756 | Resident fees and services | | | — | | | 13,987 | | | — | | | 13,987 | Miscellaneous income | | | — | | | — | | | 1,017 | | | 1,017 | Total revenues | | | 313,242 | | | 13,987 | | | 1,017 | | | 328,246 | | | | | | | | | | | | | | Property-level expenses | | | (3,938) | | | (12,259) | | | — | | | (16,197) | Net operating income from unconsolidated entities | | | 15,211 | | | 3,654 | | | — | | | 18,865 | Net operating income | | | 324,515 | | | 5,382 | | | 1,017 | | | 330,914 | | | | | | | | | | | | | | Depreciation and amortization | | | | | | | | | | | | (81,842) | Interest expense | | | | | | | | | | | | (48,116) | General and administrative | | | | | | | | | | | | (41,997) | Acquisition, merger and transition related costs | | | | | | | | | | | | (4,660) | Impairment on real estate properties | | | | | | | | | | | | — | Recovery for credit losses | | | | | | | | | | | | 5,019 | Other expense - net | | | | | | | | | | | | (7,215) | Gain on assets sold - net | | | | | | | | | | | | 246,519 | Income tax expense | | | | | | | | | | | | (4,618) | Non-operating net loss from unconsolidated entities(2) | | | | | | | | | | | | (14,336) | Net income | | | | | | | | | | | $ | 379,668 |
| (1) | Represents items not allocated to either reportable segment. Presented for reconciliation purposes only. |
| (2) | Represents Omega’s share of non-operating losses from unconsolidated entities in which Omega holds a noncontrolling ownership interest. These losses primarily consist of depreciation and interest expenses. Income from unconsolidated entities reported on the Consolidated Statements of Operations is comprised of Net operating income from unconsolidated entities and Non-operating net loss from unconsolidated entities presented above. |
The following table summarizes significant expense categories by segment for the three months ended June 30, 2026: | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | | | | | | | Non-Segment/ | | | | | Triple-Net | | Operating | | Corporate | | Total | | | (in thousands) | Compensation | | $ | — | | $ | 7,179 | | $ | — | | $ | 7,179 | Utilities | | | — | | | 590 | | | — | | | 590 | Food | | | — | | | 737 | | | — | | | 737 | Repairs and maintenance | | | — | | | 360 | | | — | | | 360 | Property taxes | | | 3,510 | | | 462 | | | — | | | 3,972 | Other segment expenses(1) | | | 428 | | | 2,931 | | | — | | | 3,359 | Total property-level expenses(2) | | $ | 3,938 | | $ | 12,259 | | $ | — | | $ | 16,197 |
| (1) | Other segment expenses for our Operating segment include management fees, insurance expense, marketing, supplies and other miscellaneous expenses. Triple-Net other segment expenses include right of use asset amortization for properties subject to ground leases and other miscellaneous expenses. |
| (2) | See Note 1 – Basis of Presentation and Significant Accounting Policies for additional information on the reclassification of property-level expenses. |
Omega had no facilities operating under the RIDEA structure during the three and six months ended June 30, 2025, and accordingly no amounts are shown in the Operating columns for those periods in the following tables. The following table summarizes information for the reportable segments for the three months ended June 30, 2025: | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | | | | | | Non-Segment/ | | | | | Triple-Net | | Operating | | Corporate(1) | | Total | | | (in thousands) | Revenues | | | | | | | | | | | | | Rental income | | $ | 239,202 | | $ | — | | $ | — | | $ | 239,202 | Interest income | | | 42,997 | | | — | | | — | | | 42,997 | Resident fees and services | | | — | | | — | | | — | | | — | Miscellaneous income | | | — | | | — | | | 307 | | | 307 | Total revenues | | | 282,199 | | | — | | | 307 | | | 282,506 | | | | | | | | | | | | | | Property-level expenses | | | (3,771) | | | — | | | — | | | (3,771) | Net operating income from unconsolidated entities | | | 2,504 | | | — | | | — | | | 2,504 | Net operating income | | | 280,932 | | | — | | | 307 | | | 281,239 | | | | | | | | | | | | | | Depreciation and amortization | | | | | | | | | | | | (80,509) | Interest expense | | | | | | | | | | | | (52,897) | General and administrative | | | | | | | | | | | | (23,318) | Acquisition, merger and transition related costs | | | | | | | | | | | | (2,010) | Impairment on real estate properties | | | | | | | | | | | | (14,215) | Recovery for credit losses | | | | | | | | | | | | 4,771 | Other income - net | | | | | | | | | | | | 13,751 | Gain on assets sold - net | | | | | | | | | | | | 22,886 | Income tax expense | | | | | | | | | | | | (4,528) | Non-operating net loss from unconsolidated entities(2) | | | | | | | | | | | | (4,691) | Net income | | | | | | | | | | | $ | 140,479 |
| (1) | Represents items not allocated to either reportable segment. Presented for reconciliation purposes only. |
| (2) | Represents Omega’s share of non-operating losses from unconsolidated entities in which Omega holds a noncontrolling ownership interest. These losses primarily consist of depreciation and interest expenses. Income from unconsolidated entities reported on the Consolidated Statements of Operations is comprised of Net operating income from unconsolidated entities and Non-operating net loss from unconsolidated entities presented above. |
The following table summarizes significant expense categories by segment for the three months ended June 30, 2025: | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | | | | | | Non-Segment/ | | | | | Triple-Net | | Operating | | Corporate | | Total | | | (in thousands) | Compensation | | $ | — | | $ | — | | $ | — | | $ | — | Utilities | | | — | | | — | | | — | | | — | Food | | | — | | | — | | | — | | | — | Repairs and maintenance | | | — | | | — | | | — | | | — | Property taxes | | | 3,251 | | | — | | | — | | | 3,251 | Other segment expenses(1) | | | 520 | | | — | | | — | | | 520 | Total property-level expenses(2) | | $ | 3,771 | | $ | — | | $ | — | | $ | 3,771 |
| (1) | Triple-Net other segment expenses include right of use asset amortization for properties subject to ground leases and other miscellaneous expenses. |
| (2) | See Note 1 – Basis of Presentation and Significant Accounting Policies for additional information on the reclassification of property-level expenses. |
The following table summarizes information for the reportable segments for the six months ended June 30, 2026: | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | | | | | | Non-Segment/ | | | | | Triple-Net | | Operating | | Corporate(1) | | Total | | | (in thousands) | Revenues | | | | | | | | | | | | | Rental income | | $ | 537,103 | | $ | — | | $ | — | | $ | 537,103 | Interest income | | | 91,911 | | | — | | | — | | | 91,911 | Resident fees and services | | | — | | | 20,644 | | | — | | | 20,644 | Miscellaneous income | | | — | | | — | | | 1,543 | | | 1,543 | Total revenues | | | 629,014 | | | 20,644 | | | 1,543 | | | 651,201 | | | | | | | | | | | | | | Property-level expenses | | | (7,954) | | | (17,686) | | | — | | | (25,640) | Net operating income from unconsolidated entities | | | 29,789 | | | 8,025 | | | — | | | 37,814 | Net operating income | | | 650,849 | | | 10,983 | | | 1,543 | | | 663,375 | | | | | | | | | | | | | | Depreciation and amortization | | | | | | | | | | | | (165,982) | Interest expense | | | | | | | | | | | | (97,871) | General and administrative | | | | | | | | | | | | (67,584) | Acquisition, merger and transition related costs | | | | | | | | | | | | (5,774) | Impairment on real estate properties | | | | | | | | | | | | (392) | Recovery for credit losses | | | | | | | | | | | | 8,313 | Other expense - net | | | | | | | | | | | | (6,139) | Gain on assets sold - net | | | | | | | | | | | | 249,543 | Income tax expense | | | | | | | | | | | | (9,724) | Non-operating net loss from unconsolidated entities(2) | | | | | | | | | | | | (29,521) | Net income | | | | | | | | | | | $ | 538,244 |
| (1) | Represents items not allocated to either reportable segment. Presented for reconciliation purposes only. |
| (2) | Represents Omega’s share of non-operating losses from unconsolidated entities in which Omega holds a noncontrolling ownership interest. These losses primarily consist of depreciation and interest expenses. Income from unconsolidated entities reported on the Consolidated Statements of Operations is comprised of Net operating income from unconsolidated entities and Non-operating net loss from unconsolidated entities presented above. |
The following table summarizes significant expense categories by segment for the six months ended June 30, 2026: | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | | | | | | Non-Segment/ | | | | | Triple-Net | | Operating | | Corporate | | Total | | | (in thousands) | Compensation | | $ | — | | $ | 10,358 | | $ | — | | $ | 10,358 | Utilities | | | — | | | 934 | | | — | | | 934 | Food | | | — | | | 1,049 | | | — | | | 1,049 | Repairs and maintenance | | | — | | | 522 | | | — | | | 522 | Property taxes | | | 7,093 | | | 720 | | | — | | | 7,813 | Other segment expenses(1) | | | 861 | | | 4,103 | | | — | | | 4,964 | Total property-level expenses(2) | | $ | 7,954 | | $ | 17,686 | | $ | — | | $ | 25,640 |
| (1) | Other segment expenses for our Operating segment include management fees, insurance expense, marketing, supplies and other miscellaneous expenses. Triple-Net other segment expenses include right of use asset amortization for properties subject to ground leases and other miscellaneous expenses. |
| (2) | See Note 1 – Basis of Presentation and Significant Accounting Policies for additional information on the reclassification of property-level expenses. |
The following table summarizes information for the reportable segments for the six months ended June 30, 2025: | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | | | | | | Non-Segment/ | | | | | Triple-Net | | Operating | | Corporate(1) | | Total | | | (in thousands) | Revenues | | | | | | | | | | | | | Rental income | | $ | 471,380 | | $ | — | | $ | — | | $ | 471,380 | Interest income | | | 86,113 | | | — | | | — | | | 86,113 | Resident fees and services | | | — | | | — | | | — | | | — | Miscellaneous income | | | — | | | — | | | 1,798 | | | 1,798 | Total revenues | | | 557,493 | | | — | | | 1,798 | | | 559,291 | | | | | | | | | | | | | | Property-level expenses | | | (7,597) | | | — | | | — | | | (7,597) | Net operating income from unconsolidated entities | | | 4,915 | | | — | | | — | | | 4,915 | Net operating income | | | 554,811 | | | — | | | 1,798 | | | 556,609 | | | | | | | | | | | | | | Depreciation and amortization | | | | | | | | | | | | (160,384) | Interest expense | | | | | | | | | | | | (105,177) | General and administrative | | | | | | | | | | | | (54,860) | Acquisition, merger and transition related costs | | | | | | | | | | | | (3,474) | Impairment on real estate properties | | | | | | | | | | | | (15,450) | Provision for credit losses | | | | | | | | | | | | (321) | Other income - net | | | | | | | | | | | | 16,798 | Gain on assets sold - net | | | | | | | | | | | | 32,961 | Income tax expense | | | | | | | | | | | | (8,139) | Non-operating net loss from unconsolidated entities(2) | | | | | | | | | | | | (6,024) | Net income | | | | | | | | | | | $ | 252,539 |
| (1) | Represents items not allocated to either reportable segment. Presented for reconciliation purposes only. |
| (2) | Represents Omega’s share of non-operating losses from unconsolidated entities in which Omega holds a noncontrolling ownership interest. These losses primarily consist of depreciation and interest expenses. Income from unconsolidated entities reported on the Consolidated Statements of Operations is comprised of Net operating income from unconsolidated entities and Non-operating net loss from unconsolidated entities presented above. |
The following table summarizes significant expense categories by segment for the six months ended June 30, 2025: | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | | | | | | Non-Segment/ | | | | | Triple-Net | | Operating | | Corporate | | Total | | | (in thousands) | Compensation | | $ | — | | $ | — | | $ | — | | $ | — | Utilities | | | — | | | — | | | — | | | — | Food | | | — | | | — | | | — | | | — | Repairs and maintenance | | | — | | | — | | | — | | | — | Property taxes | | | 6,562 | | | — | | | — | | | 6,562 | Other segment expenses(1) | | | 1,035 | | | — | | | — | | | 1,035 | Total property-level expenses(2) | | $ | 7,597 | | $ | — | | $ | — | | $ | 7,597 |
| (1) | Triple-Net other segment expenses include right of use asset amortization for properties subject to ground leases and other miscellaneous expenses. |
| (2) | See Note 1 – Basis of Presentation and Significant Accounting Policies for additional information on the reclassification of property-level expenses. |
Total assets by reportable business segment are not disclosed as our CODM does not review such information to evaluate business performance and allocate resources.
|