Supplemental Information
Q2 2023
Omega Healthcare Investors, Inc. is a Real Estate Investment Trust ("REIT") providing financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities located in the United States and the United Kingdom.
As of June 30, 2023, Omega has a portfolio of investments that includes over 890 operating facilities located in 42 states and the UK (98 facilities) and operated by 66 different operators.
As a source of capital to the healthcare industry, Omega continually evaluates the opportunities, trends and challenges affecting the industry. Our goal is to identify long-term investments in quality healthcare properties with outstanding operators that provide the most favorable risk/reward ratio to our investors.
Table of Contents | |
Portfolio | |
Investment Summary | 3 |
Revenue Summary | 3 |
Operator Payor Mix and Coverage Summary | 3 |
Rent/Interest Concentration by Operator | 4 |
Lease and Mortgage Expirations | 4 |
Diversification | |
Operator Geographic Diversification | 5 |
Selected Metrics | |
Occupancy by State | 5 |
EBITDARM & EBITDAR Coverage Stratification | 6 |
EBITDAR Coverages less than 1.0x | 6 |
Investment Activity | 7 |
New Builds, Major Renovations & CAPEX | 7 |
Capitalization | |
Capital Structure and Rates | 8 |
Debt Maturity Schedule | 8 |
Senior Unsecured Debt Ratings | 8 |
Selected Covenants and Ratios | 9 |
Equity Issuance Summary | 10 |
Book and Market Capitalization | 11 |
Financial Performance | |
Historical AFFO, FAD and Dividends | 12 |
Quarterly Financials | |
Income Statements | 13 |
Balance Sheets | 14 |
Statements of Cash Flow | 15 |
Non-GAAP Reconciliations | |
Net Income, FFO, Adjusted FFO and FAD | 16 |
EBITDA and Debt Coverage Ratios | 18 |
EBITDA and FC and Interest Coverage Ratios | 19 |
Selected Definitions | 20 |
EXECUTIVE OFFICERS
Taylor Pickett, President and Chief Executive Officer
Bob Stephenson, Chief Financial Officer
Dan Booth, Chief Operating Officer
Gail Makode, Chief Legal Officer
BOARD OF DIRECTORS | |
Craig R. Callen, Chair | Kevin J. Jacobs |
Kapila K. Anand | Stephen D. Plavin |
Dr. Lisa Egbuonu-Davis | Burke W. Whitman |
Barbara B. Hill | Taylor Pickett |
ANALYSTS
Baird | Wes Gollady | (216) 737-7510 |
Barclays | Steve Valiquette | (212) 526-5496 |
Bank of America | Joshua Dennerlein.... | (646) 855-1681 |
Berenberg | Tao Qiu | (646) 949-9058 |
BMO Capital Markets | Juan Sanabria | (312) 845-4074 |
Citi | Michael Griffin | (212) 816-5871 |
Green Street Advisors | John Pawlowski | (949) 640-8780 |
Jefferies | Jonathan Petersen.... | (212) 284-1705 |
JMP Securities | Aaron Hecht | (415) 835-3963 |
Mizuho Securities | Vikram Malhotra | (212) 282-3827 |
Raymond James | Jonathan Hughes | (727) 567-2438 |
Scotiabank | Nick Yulico | (212) 225-6904 |
Stifel | Stephen Manaker | (212) 271-3716 |
Truist Securities | Michael Lewis | (212) 319-5659 |
Wells Fargo | Connor Siversky | (212) 214-8069 |
Wolfe Research | Andrew Rosivach | (646) 582-9250 |
Stock Symbol: OHI | Exchange: | NYSE | CUSIP Number: 681936100 |
Shares & Units Outstanding June 30, 2023: | 247,970,664 | ||
Contact Information | |||
Omega Healthcare Investors, Inc. | Transfer Agent Correspondence | ||
303 International Circle | Computershare, Inc. | ||
Suite 200 | P.O. Box 505000 | ||
Hunt Valley, MD 21030 | Louisville, KY 40233 | ||
(410) 427-1700 (Main) | (800) 368-5948 | ||
(866) 996-6342 (Investor Relations) | |||
www.omegahealthcare.com | www.computershare.com |
1
Forward-Looking Statements and Cautionary Language
This press release includes forward-looking statements within the meaning of the federal securities laws. All statements regarding Omega's or its tenants', operators', borrowers' or managers' expected future financial condition, results of operations, cash flows, funds from operations, dividends and dividend plans, financing opportunities and plans, capital markets transactions, business strategy, budgets, projected costs, operating metrics, capital expenditures, competitive positions, acquisitions, investment opportunities, dispositions, facility transitions, growth opportunities, expected lease income, continued qualification as a REIT, plans and objectives of management for future operations and statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will" and other similar expressions are forward-looking statements. These forward-looking statements are inherently uncertain, and actual results may differ from Omega's expectations.
Omega's actual results may differ materially from those reflected in such forward-looking statements as a result of a variety of factors, including, among other things: (i) uncertainties relating to the business operations of the operators of Omega's properties, including those relating to reimbursement by third-party payors, regulatory matters and occupancy levels; (ii) the long-term impacts of the Novel coronavirus ("COVID-19") pandemic on our business and the business of our operators, including without limitation, the impact of the announced termination of the federally declared public health emergency and related government and regulatory support scheduled for May 11, 2023, the levels of staffing shortages, increased costs and decreased occupancy experienced by operators of skilled nursing facilities ("SNFs") and assisted living facilities ("ALFs") arising from the pandemic, the ability of our operators to comply with infection control and vaccine protocols and to manage facility infection rates or future infectious diseases, and the sufficiency of government support and reimbursement rates to offset such costs and the conditions related thereto; (iii) the ability of any of Omega's operators in bankruptcy to reject unexpired lease obligations, modify the terms of Omega's mortgages and impede the ability of Omega to collect unpaid rent or interest during the pendency of a bankruptcy proceeding and retain security deposits for the debtor's obligations, and other costs and uncertainties associated with operator bankruptcies; (iv) Omega's ability to re-lease, otherwise transition or sell underperforming assets or assets held for sale on a timely basis and on terms that allow Omega to realize the carrying value of these assets; (v) the availability and cost of capital to Omega; (vi) changes in Omega's credit ratings and the ratings of its debt securities; (vii) competition in the financing of healthcare facilities; (viii) competition in the long-term healthcare industry and shifts in the perception of various types of long-term care facilities, including SNFs and ALFs; (ix) additional regulatory and other changes in the healthcare sector; (x) changes in the financial position of Omega's operators; (xi) the effect of economic and market conditions generally, and particularly in the healthcare industry; (xii) changes in interest rates or the impact of inflation; (xiii) the timing, amount and yield of any additional investments; (xiv) changes in tax laws and regulations affecting REITs; (xv) the potential impact of changes in the SNF and ALF market or local real estate conditions on the Company's ability to dispose of assets held for sale for the anticipated proceeds or on a timely basis, or to redeploy the proceeds therefrom on favorable terms; (xvi) Omega's ability to maintain its status as a REIT; (xvii) the effect of other factors affecting our business or the businesses of Omega's operators that are beyond Omega's or operators' control, including natural disasters, other health crises or pandemics and governmental action, particularly in the healthcare industry, and (xviii) other factors identified in Omega's filings with the Securities and Exchange Commission. Statements regarding future events and developments and Omega's future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward looking statements.
We caution you that the foregoing list of important factors may not contain all the material factors that are important to you. Accordingly, readers should not place undue reliance on those statements. All forward-looking statements are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
Operator Information: This supplement includes information regarding the operators of our facilities such as EBITDAR and EBITDARM coverage ratios. The information related to operators that is provided in this supplement has been provided by the operators. We have not independently verified this information. We are providing this data for informational purposes only.
Non-GAAPInformation: This supplement also contains certain non-GAAP financial information including EBITDA, Adjusted Total Debt (or Funded Debt), Adjusted Book Capitalization, Nareit FFO, Adjusted FFO (or "AFFO"), Funds Available for Distribution ("FAD"), Total Cash Fixed Charges and certain related ratios. A reconciliation of these non-GAAP disclosures is available in the Financial Performance section of this supplement.
Information is provided as of June 30, 2023, unless specifically stated otherwise. We assume no duty to update or supplement the information provided.
2
Portfolio: Summary by Asset and Property Type
INVESTMENT SUMMARY
As of June 30, 2023
Total No. of | No. of |
Balance Sheet Data | ||||
Real estate Investments | (1) | |||
Real estate loans receivable | (2) | |||
Non-real estate loans receivable | ||||
Assets held-for-sale | ||||
Total Investments | ||||
Investment Data | ||||
Skilled nursing/transitional care | (1)(4) | |||
Senior housing | (4)(5) | |||
Other real estate loans receivable | ||||
Non-real estate loans receivable | ||||
Assets held for sale | ||||
Total Investments |
Total No. of | Investment | % of | Operating | Operating | ||||
Facilities | ($000's) | Investment | Facilities | (3) | Beds | (3) | ||
873 | $ | 8,942,520 | 89% | 849 | 83,667 | |||
49 | 1,096,806 | 11% | 44 | 4,655 | ||||
922 | $ | 10,039,326 | 100% | 893 | 88,322 | |||
- | 227,916 | - | - | |||||
1 | 1,400 | - | - | |||||
923 | $ | 10,268,642 | 893 | 88,322 | ||||
Total No. of | No. of | |||||||
Total No. of | Investment | % of | Operating | Operating | Investment | |||
Facilities | ($000's) | Investment | Facilities | (3) | Beds | (3) | Per Bed | |
725 | $ | 7,089,562 | 74% | 703 | 75,293 | $94 | ||
197 | 2,483,170 | 26% | 190 | 13,029 | $191 | |||
922 | $ | 9,572,732 | 100% | 893 | 88,322 | $108 | ||
- | 466,594 | - | - | |||||
- | 227,916 | - | - | |||||
1 | 1,400 | - | - | |||||
923 | $ | 10,268,642 | 893 | 88,322 |
- Includes one asset under direct financing leases totalling $9.0 million.
- Only includes number of facilities and operating beds related to mortgage notes receivable, not other real estate loans.
- Excludes properties which are non-operating, closed and/or not currently providing patient services.
- Includes real estate assets and mortgage notes receivable.
- Includes ALFs, memory care and independent living properties.
REVENUE SUMMARY
Revenue by Investment Type | ($ in thousands) | Three Months Ended | Six Months Ended | ||||
June 30, 2023 | June 30, 2023 | ||||||
Rental property | $ | 215,267 | 86.1% | $ | 400,622 | 85.6% | |
Real estate tax and ground lease income | 4,088 | 1.6% | 8,064 | 1.7% | |||
Real estate loans interest income | 23,979 | 9.6% | 47,376 | 10.1% | |||
Non-real estate loans interest income and misc income - net | 6,853 | 2.7% | 12,327 | 2.6% | |||
$ | 250,187 | 100.0% | $ | 468,389 | 100.0% | ||
Revenue by Facility Type | ($ in thousands) | Three Months Ended | Six Months Ended | ||||
June 30, 2023 | June 30, 2023 | ||||||
SNFs/transitional care | $ | 179,901 | 71.9% | $ | 343,764 | 73.4% | |
Senior housing | 52,364 | 20.9% | 90,404 | 19.3% | |||
Real estate tax and ground lease income | 4,088 | 1.6% | 8,064 | 1.7% | |||
Other real estate loans interest income | 6,981 | 2.8% | 13,830 | 3.0% | |||
Non-real estate loans interest income and misc income - net | 6,853 | 2.8% | 12,327 | 2.6% | |||
$ | 250,187 | 100.0% | $ | 468,389 | 100.0% |
OPERATOR PAYOR MIX AND COVERAGE SUMMARY
% Revenue Mix (1)(3) | Coverage Data (3) | ||||||
Medicare / | Private / | ||||||
Three Months Ended… | Medicaid | Insurance | Other | Twelve Months Ended… | Occ. % (2) | EBITDARM | EBITDAR |
March 31, 2023 | 53.0% | 31.8% | 15.2% | March 31, 2023 | 78.0% | 1.44x | 1.10x |
December 31, 2022 | 54.3% | 31.4% | 14.3% | December 31, 2022 | 77.0% | 1.38x | 1.04x |
September 30, 2022 | 53.4% | 31.5% | 15.1% | September 30, 2022 | 76.2% | 1.37x | 1.04x |
June 30, 2022 | 53.5% | 31.5% | 15.0% | June 30, 2022 | 75.8% | 1.39x | 1.06x |
March 31, 2022 | 51.0% | 35.8% | 13.2% | March 31, 2022 | 75.1% | 1.44x | 1.10x |
- Excludes facilities considered non-core and does not include federal stimulus revenue
- Based on available (operating) beds
- See page 20 for definitions of Core, and EBITDARM and EBITDAR Coverage
3
Portfolio: Operator Diversification and Lease Maturities
RENT/INTEREST CONCENTRATION BY OPERATOR
($ in thousands) | 2Q 2023 Annualized Contractual | |||||||||||||||||||
Rent/Interest | (1)(2) | per non-GAAP disclosures | ||||||||||||||||||
Operator | Total | % of Total | Facilities | (1)(3) | ||||||||||||||||
1 Communicare | 96,536 | 9.8% | 51 | |||||||||||||||||
2 Ciena | 86,978 | 8.9% | 54 | |||||||||||||||||
3 La Vie (f/k/a Consulate) | 86,452 | 8.8% | 72 | |||||||||||||||||
4 Maplewood | 69,264 | 7.1% | 17 | |||||||||||||||||
5 Genesis | 67,740 | 6.9% | 42 | |||||||||||||||||
6 Saber | 62,844 | 6.4% | 56 | |||||||||||||||||
7 Brookdale | 48,457 | 4.9% | 24 | |||||||||||||||||
8 HHC | 38,902 | 4.0% | 44 | |||||||||||||||||
9 Providence | 38,402 | 3.9% | 37 | |||||||||||||||||
10 Nexion | 33,565 | 3.4% | 45 | |||||||||||||||||
Remaining Operators | 352,715 | 35.9% | 451 | |||||||||||||||||
$ | 981,855 | 100.0% | 893 | |||||||||||||||||
LEASE AND MORTGAGE EXPIRATIONS | ||||||||||||||||||||
2Q 2023 | (1)(2)(3) | Gross Investment Amounts | (1)(3) | Operating Facilites | Operating Beds | |||||||||||||||
Contractual | Mortgage & | |||||||||||||||||||
Rent/Interest | Other RE Backed | |||||||||||||||||||
Year | Annualized | % | Lease | Investments | Total | % | No. | % | No. | % | ||||||||||
1 | 2023 | $ | 8,568 | 0.9% | $ | 31,255 | $ | 51,782 | $ | 83,037 | 0.8% | 6 | 0.7% | 719 | 0.8% | |||||
2 | 2024 | 18,150 | 1.8% | 49,755 | 110,235 | 159,990 | 1.6% | 4 | 0.4% | 407 | 0.5% | |||||||||
3 | 2025 | 9,129 | 0.9% | - | 96,521 | 96,521 | 1.0% | - | 0.0% | - | 0.0% | |||||||||
4 | 2026 | 9,720 | 1.0% | 142,653 | 5,000 | 147,653 | 1.5% | 7 | 0.8% | 780 | 0.9% | |||||||||
5 | 2027 | 145,473 | 14.8% | 1,287,186 | 124,793 | 1,411,979 | 14.2% | 129 | 14.4% | 13,234 | 15.0% | |||||||||
6 | 2028 | 36,278 | 3.7% | 356,411 | 12,000 | 368,411 | 3.7% | 41 | 4.6% | 4,847 | 5.5% | |||||||||
7 | 2029 | 53,721 | 5.5% | 484,922 | 72,221 | 557,143 | 5.6% | 47 | 5.3% | 4,018 | 4.5% | |||||||||
8 | 2030 | 82,388 | 8.4% | 347,974 | 464,982 | 812,956 | 8.2% | 80 | 9.0% | 7,280 | 8.2% | |||||||||
9 | 2031 | 89,334 | 9.1% | 574,601 | - | 574,601 | 5.8% | 69 | 7.7% | 6,522 | 7.4% | |||||||||
10 | 2032 | 36,945 | 3.8% | 471,227 | - | 471,227 | 4.7% | 46 | 5.2% | 4,334 | 4.9% | |||||||||
2033+ | 492,149 | 50.1% | 4,954,720 | 335,940 | 5,290,660 | 52.9% | 464 | 51.9% | 46,181 | 52.3% | ||||||||||
TOTAL | $ | 981,855 | 100.0% | $ | 8,700,704 | $ | 1,273,474 | $ | 9,974,178 | 100.0% | 893 | 100.0% | 88,322 | 100.0% | ||||||
Note: $ in thousands and all percentages rounded to one decimal | ||||||||||||||||||||
60.0% | 50.1% | |||||||||||||||||||
50.0% | ||||||||||||||||||||
40.0% | ||||||||||||||||||||
30.0% | ||||||||||||||||||||
20.0% | 14.8% | |||||||||||||||||||
9.1% | ||||||||||||||||||||
5.5% | 8.4% | |||||||||||||||||||
10.0% | 1.0% | 3.7% | 3.8% | |||||||||||||||||
0.9% | 1.8% | 0.9% | ||||||||||||||||||
0.0% | ||||||||||||||||||||
2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033+ |
- Excludes facilities from unconsolidated joint ventures, non-operating, closed and/or not currently providing patient services. Also excludes rent/facilities from Q2 asset divestitures and principal repayments assuming an April 1st sale date. Includes incremental rent and interest from new investments in Q2 assuming an April 1st inservice date. Includes $36.5 million of Q2 annualized contractual deferred rent and interest.
- Includes interest from mortgages and other real estate backed other investments
- UK Investments and rents translated at foreign currency exchange rates as of June 30, 2023
4
Portfolio: Operator Geographic Diversification as of June 30, 2023
(No. of Operators No. of Facilities) | Operators: | 66 (1) |
Facilities: | 893(2) | |
States: | 42 | |
Foreign Countries: | 1 (UK) |
State Concentration Key
<10 facilities
10 to 20 facilities
- Many operators have facilities in multiple states
- Excludes non-operating facilities, closed and/or not currently providing patient services
>20 facilities
GEOGRAPHIC CONCENTRATION BY INVESTMENT
($ in thousands) | As of June 30, 2023 | ||||
No. of | % | % | |||
Facilities (1) | Investment (1)(2) | Investment | Occupancy (3)(4) | ||
Florida | 97 | $ | 1,099,290 | 11.4% | 81.6% |
Texas | 110 | 984,145 | 10.2% | 63.2% | |
Indiana | 69 | 637,987 | 6.6% | 74.2% | |
California | 51 | 564,355 | 5.9% | 88.3% | |
Michigan | 37 | 504,649 | 5.3% | 80.6% | |
Ohio | 43 | 458,956 | 4.8% | 76.5% | |
Virginia | 28 | 425,224 | 4.4% | 81.5% | |
North Carolina | 45 | 406,669 | 4.2% | 84.2% | |
Pennsylvania | 37 | 388,821 | 4.0% | 82.6% | |
New York | 1 | 333,082 | 3.5% | n/a | |
Remaining States | 306 | 3,230,388 | 33.6% | 77.8% | |
824 | $ | 9,033,566 | 93.9% | ||
United Kingdom | 98 | 581,663 | 6.1% | 86.9% | |
Total | 922 | $ | 9,615,229 | 100.0% | 78.0% |
- Excludes one property with total investment of $1.4 million classified as assets held for sale.
- Excludes $42.5 million reserve for credit losses
- As of March 31, 2023, TTM
- Includes real estate assets, mortgages notes receivable and a direct financing lease
5
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Omega Healthcare Investors Inc. published this content on 02 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2023 21:21:12 UTC.