Omega Healthcare Investors, Inc. (OHI) Cash Flow Statement

The 2026Q3 payout ratio of 1.25x means dividends paid of $207.0M exceeded reported AFFO of $140.5M, which suggests the quarter was funded from balance sheet resources or other sources rather than recurring cash earnings. The 2026Q2 ratio of 0.45x appears to reflect an unusually large AFFO print of $435.9M, which may include non-recurring items, so the average coverage across recent quarters is a more reliable gauge. Investors should monitor whether AFFO stabilizes above the dividend run-rate, since sustained shortfalls would warrant further investigation into the dividend's durability.

Ratios well above 1.0x, such as the 2.37x in 2026Q3 and 2.00x in 2024Q4, imply that depreciation and non-cash real estate charges are large relative to GAAP earnings, which is typical for a REIT but makes the net income line a weak standalone signal. The 0.59x reading in 2026Q2 likely reflects a gain or other income item lifting net income above FFO, which suggests the reported beat may be partly non-recurring. Operating cash flow of $191.0M to $230.6M in recent quarters appears steadier than net income, pointing to FFO and OCF as the more dependable inputs.

In several quarters dividends consumed nearly all free cash flow, such as 2025Q1 where FCF of $162.9M compared with $189.2M in dividends, indicating the payout is structurally tight. The rising dividend load from $166.0M in 2024Q2 to $207.0M in 2026Q3 appears to outpace organic free cash growth, which may imply reliance on asset dispositions or capital markets to bridge gaps. Without disclosed financing detail in the supplied data, the precise funding source cannot be confirmed and warrants further investigation.