Shares of Omega Healthcare Investors (OHI) plummeted 5.17% in pre-market trading on Friday, following the release of its first-quarter earnings report that fell short of analysts' expectations. The real estate investment trust, which focuses on the long-term healthcare industry, reported results that disappointed investors despite showing year-over-year growth.

According to the earnings summary, Omega Healthcare reported quarterly adjusted earnings of 40 cents per share for the quarter ended March 31, 2025. While this figure represents an improvement from the 27 cents per share reported in the same quarter last year, it fell below the mean expectation of 44 cents per share from five analysts. The company's revenue also missed the mark, coming in at $276.79 million, a 13.8% increase from the previous year but still short of the $288.69 million analysts had projected.

The significant stock drop reflects investor concerns about Omega Healthcare's performance relative to market expectations. Despite the company's growth trajectory, with shares having risen 2.5% over the quarter and 3.2% year-to-date prior to this report, the earnings miss has clearly shaken investor confidence. As Omega Healthcare continues to navigate the specialized REIT sector, investors will be closely watching for signs of improved performance in future quarters.