Why Omega Healthcare Investors Stock Tumbled 18% in 2021
Shares of Omega Healthcare Investors (NYSE: OHI) plunged 18.5% in 2021, according to data provided by S&P Global Market Intelligence. That significantly underperformed the S&P 500, which gained nearly 27% last year. Weighing on the real estate investment trust (REIT) were the continued headwinds facing the senior housing sector from the ongoing pandemic.
The pandemic hit the senior housing sector hard. That impacted facility occupancy levels, which Omega noted remained "meaningfully below pre-pandemic levels" as of the third quarter. Because of that, many operators were struggling to generate enough revenue to meet their financial obligations like paying rent. While federal and state governments were providing some support, Omega warned in the third quarter that this might not be enough to fund its obligations as the pandemic continues.
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Source Fool.com
