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Risks
1. Dependence on Tenants: As a specialized healthcare real estate investment trust, Omega Healthcare Investors, Inc. is dependent on the rental income generated by its tenants, which can be affected by macroeconomic factors, regulatory changes, and the strength of the individual tenant.
2. Leverage: Omega Healthcare Investors, Inc. is highly leveraged, with high amounts of debt relative to its stockholders' equity. This increases the potential for greater volatility in its stock price, as well as additional costs associated with servicing its debt.
3. Competition: Omega Healthcare Investors, Inc. faces competition from other real estate investment trusts, as well as other healthcare investments, making its operating environment more competitive.
4. Regulatory Risks: Omega Healthcare Investors, Inc. is subject to both federal and state laws and regulations, which can affect its ability to invest in certain types of properties or or limit the types of services it can offer.
5. Interest Rate Risk: Omega Healthcare Investors, Inc. is highly sensitive to changes in interest rates. If interest rates increase, the company must refinance its debt at a higher rate, which would decrease its profitability.