Demographics are an unstoppable force shaping the future of healthcare real estate, according to Omega Healthcare Investors CEO Taylor Pickett. He shared his insights on the evolving market during an interview last month with Nareit’s Sarah Borchersen-Keto.
“The most important thing is the demographic wave,” Pickett said. “It’s unavoidable and will continue to improve occupancies in both skilled nursing and assisted living.”
He noted that acuity levels in healthcare facilities are steadily rising, requiring increasingly sophisticated operators.
“It’s very important to choose the right operators to provide care for your residents in the way that is clinically acceptable in terms of reimbursement,” Pickett explained.
Government support remains a stabilizing factor for the industry in the U.S. and the U.K., he added.
Omega Healthcare is a publicly traded REIT focused on skilled nursing and assisted living facilities across both countries. The company emphasizes strong operator partnerships, disciplined financial management and strategic growth initiatives, with assets totaling more than $10 billion.
Pickett highlighted Omega’s emphasis on operational and financial consistency, including maintaining a strong balance sheet, low leverage and ample liquidity, which allow the company to evaluate opportunities across the spectrum and deliver on acquisitions, he said.
When asked about creating long-term shareholder value beyond dividends, Pickett underscored disciplined growth, including expansion into technology.
International expansion, particularly in the U.K., is a key part of Omega’s strategy.
“The demographics are as good or better in the U.K. than they are here in the U.S. The opportunity set is very strong,” Pickett said. Omega currently holds $2 billion of assets in the U.K. and expects that to grow.
“That being said, our core bread and butter is the skilled nursing facility here in the U.S., so we'll continue to grow that as well,” said Pickett.
“Importantly, from our perspective, the U.K. is a really dynamic market with a lot of opportunity that I think we're going to be able to capture over the next five to 10 years of the cycle.”
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