Supplemental Information | Q1 2021 |
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 to a lesser extent the United Kingdom.
As of March 31, 2021, Omega has a portfolio of investments that includes over 950 properties located in 42 states and the UK (57 facilities) and operated by 70 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 |
Current Year Guidance ........................................ | 13 |
Quarterly Financials | |
Income Statements ............................................. | 14 |
Balance Sheets .................................................... | 15 |
Statements of Cash Flow..................................... | 16 |
Non‐GAAP Reconciliations | |
Net Income, FFO, Adjusted FFO and FAD............ | 17 |
EBITDA and Debt Coverage Ratios ...................... | 19 |
EBITDA and FC and Interest Coverage Ratios...... | 20 |
Selected Definitions ............................................ | 21 |
EXECUTIVE OFFICERS
Taylor Pickett, President and Chief Executive Officer
Dan Booth, Chief Operating Officer
Steven Insoft, Chief Corporate Development Officer
Bob Stephenson, Chief Financial Officer
Gail Makode, Chief Legal Officer
BOARD OF DIRECTORS
Craig R. Callen, Chair | Edward Lowenthal |
Kapila K. Anand | Stephen D. Plavin |
Barbara B. Hill | Burke W. Whitman |
Kevin J. Jacobs | Taylor Pickett |
ANALYSTS
Bank of America......................... | Joshua Dennerlein....... | (646) 855‐1681 |
Berenberg.................................... | Connor Siversky........... | (646) 949‐9037 |
BTIG............................................. | Michael Gorman.......... | (212) 738‐6138 |
Capital One Securities................ | Daniel Bernstein.......... | (571) 835‐7202 |
Citi............................................... | Nick Joseph.................. | (212) 816‐1909 |
Green Street Advisors................. | Lukas Hartwich............ | (949) 640‐8780 |
Jefferies....................................... | Jonathan Petersen....... | (212) 284‐1705 |
JMP Securities............................. | Aaron Hecht................. | (415) 835‐3963 |
Mizuho Securities....................... | Omotayo Okusanya..... | (646) 949‐9672 |
Raymond James.......................... | Jonathan Hughes......... | (727) 567‐2438 |
Scotiabank................................... | Nick Yulico................... | (212) 225‐6904 |
SMBC Nikko Securities............... | Rich Anderson............. | (646) 521‐2351 |
Stifel............................................ | Stephen Manaker........ | (212) 271‐3716 |
Truist Securities.......................... | Michael Lewis.............. | (212) 319‐5659 |
Wells Fargo................................. | Todd Stender............... | (562) 637‐1371 |
Stock Symbol: OHI | Exchange: | NYSE | CUSIP Number: 681936100 |
Shares & Units Outstanding March 31, 2021: | 239,783,170 | ||
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.computershare.com | ||
www.omegahealthcare.com |
1
Forward‐Looking Statements and Cautionary Language
Novel coronavirus ("COVID‐19") data has been provided by our operators. We caution that we have not independently validated facility virus incidence information, it may be reported on an inconsistent basis by our operators, and we can provide no assurance regarding its accuracy or that there have not been any changes since the time the information was obtained from our operators; we also undertake no duty to update this information.
This supplement 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 real estate investment trust ("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 impact of COVID‐19 on our business and the business of our operators, including without limitation, the extent and duration of the COVID‐19 pandemic, increased costs experienced by operators of SNFs and assisted living facilities ("ALFs") in connection therewith, the ability of operators to comply with new infection control and vaccine protocols, and the extent to which continued government support may be available to operators 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 us; (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 our operators; (xi) the effect of economic and market conditions generally, and particularly in the healthcare industry; (xii) changes in interest rates; (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 our operators that are beyond our or their 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 SEC. 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 supplement. 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 included 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‐GAAP Information: 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 March 31, 2021, unless specifically stated otherwise. We assume no duty to update or supplement the information provided.
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Portfolio: Summary by Asset and Property Type
INVESTMENT SUMMARY
($ in thousands) | As of March 31, 2021 | ||||||
Total No. of | No. of | ||||||
Balance Sheet Data | Total No. of | % of | Operating | Operating | |||
Properties | Investment | Investment | Properties (2) | Beds (2) | |||
Real Estate Investments (1) | 905 | $ | 9,271,947 | 91% | 896 | 90,383 | |
Mortgage Notes Receivable | 63 | 890,068 | 9% | 58 | 6,270 | ||
968 | $ | 10,162,015 | 100% | 954 | 96,653 | ||
Assets Held for Sale | 6 | 7,922 | |||||
Total Investments | 974 | $ | 10,169,937 | ||||
Total No. of | No. of | ||||||
Investment Data | Total No. of | % of | Operating | Operating | Investment | ||
Skilled Nursing/Transitional Care | Properties | Investment | Investment | Properties (2) | Beds (2) | Per Bed | |
812 | $ | 7,967,363 | 78% | 801 | 85,980 | $93 | |
Senior Housing (3) | 156 | 2,194,652 | 22% | 153 | 10,673 | $206 | |
968 | $ | 10,162,015 | 100% | 954 | 96,653 | $105 | |
Assets Held for Sale | 6 | 7,922 | |||||
Total Investments | 974 | $ | 10,169,937 |
- Includes one asset under direct financing leases totaling $10.8 million
- Excludes facilities which are non‐operating, closed and/or not currently providing patient services
- Includes assisted living facilities, memory care and independent living facilities
REVENUE SUMMARY
($ in thousands) | Revenue by Investment Type | Three Months Ended | |||
March 31, 2021 | |||||
Rental Property (1) | $ | 235,083 | 86% | ||
Real Estate Tax and Ground Lease Income | 2,936 | 1% | |||
Mortgage Notes | 23,625 | 9% | |||
Other Investment Income & Misc Income ‐ net | 12,124 | 4% | |||
$ | 273,768 | 100.0% |
Revenue by Facility Type | Three Months Ended | |||
Skilled Nursing / Transitional Care | March 31, 2021 | |||
$ | 215,069 | 78% | ||
Senior Housing | 43,639 | 16% | ||
Real Estate Tax and Ground Lease Income | 2,936 | 1% | ||
Other | 12,124 | 4% | ||
$ | 273,768 | 100% |
- Includes one asset under a direct financing lease totaling $0.3 million for the three months ended March 31, 2021
OPERATOR PAYOR MIX AND COVERAGE SUMMARY (1)
% Revenue Mix | Coverage Data (3) | |||||||||||||
Medicare / | Private / | Occ. % (2) | ||||||||||||
Three Months Ended… | Medicaid | Insurance | Other | Twelve Months Ended… | EBITDARM | EBITDAR | ||||||||
December 31, 2020 | 51.0% | 38.1% | 10.9% | December 31, 2020 | 78.1% | 1.86x | 1.50x | |||||||
September 30, 2020 | 51.6% | 37.2% | 11.2% | September 30, 2020 | 80.1% | 1.87x | 1.51x | |||||||
June 30, 2020 | 52.4% | 36.4% | 11.2% | June 30, 2020 | 82.2% | 1.84x | 1.48x | |||||||
March 31, 2020 | 52.6% | 35.7% | 11.7% | March 31, 2020 | 83.6% | 1.68x | 1.32x | |||||||
December 31, 2019 | 52.7% | 34.6% | 12.7% | December 31, 2019 | 83.6% | 1.64x | 1.29x |
- Includes Core Portfolio only (see page 21 for definition)
- Based on available (operating) beds
- See page 21 for definitions of EBITDARM and EBITDAR Coverage
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Portfolio: Operator Diversification and Lease Maturities
RENT/INTEREST CONCENTRATION BY OPERATOR
($ in thousands) | 1Q 2021 Annualized Contractual | ||||
Rent/Interest (1)(2) | |||||
Operator | Total ($000's) | % of Total | Properties (1)(3) | ||
1 | Ciena | $ | 96,438 | 9.7% | 65 |
2 | Consulate | 94,403 | 9.5% | 86 | |
3 | Maplewood | 62,351 | 6.3% | 15 | |
4 | Genesis | 57,290 | 5.8% | 45 | |
5 | Communicare | 55,752 | 5.6% | 36 | |
6 | Agemo | 53,646 | 5.4% | 54 | |
7 | Saber | 51,993 | 5.2% | 49 | |
8 | Brookdale | 43,101 | 4.4% | 24 | |
9 | HHC | 37,391 | 3.8% | 44 | |
10 | Guardian | 36,313 | 3.7% | 35 | |
Remaining Operators (3) | 401,911 | 40.6% | 500 | ||
$ | 990,589 | 100.0% | 953 |
- Excludes properties which are non‐operating, closed and/or not currently providing patient services
- Includes mezzanine and term loan interest
- Excludes one multi‐tenant medical office building
LEASE AND MORTGAGE EXPIRATIONS (1)(2)
($ in thousands) | 1Q 2021 | Operating Facilites (1) | |||||||||||||||||
Contractual | Investment Amounts | Operating Beds | |||||||||||||||||
Rent/Interest | |||||||||||||||||||
Year | Annualized | % | Lease | Capital Lease | Mortgage | Total | % | No. | % | No. | % | ||||||||
1 | 2021 | $ | 6,710 | 0.7% | $ | 54,877 | $ | ‐ | $ | 77,344 | $ | 132,220 | 1.3% | 17 | 1.8% | 512 | 0.5% | ||
2 | 2022 | 41,664 | 4.2% | 304,698 | ‐ | ‐ | 304,698 | 3.0% | 45 | 4.7% | 4,414 | 4.6% | |||||||
3 | 2023 | 4,444 | 0.4% | 36,928 | ‐ | 7,544 | 44,472 | 0.4% | 6 | 0.6% | 467 | 0.5% | |||||||
4 | 2024 | 12,836 | 1.3% | 126,669 | ‐ | ‐ | 126,669 | 1.2% | 8 | 0.8% | 944 | 1.0% | |||||||
5 | 2025 | 18,018 | 1.8% | 81,730 | ‐ | 66,621 | 148,351 | 1.5% | 10 | 1.1% | 1,197 | 1.2% | |||||||
6 | 2026 | 34,919 | 3.5% | 329,704 | ‐ | ‐ | 329,704 | 3.2% | 28 | 3.0% | 3,242 | 3.3% | |||||||
7 | 2027 | 161,321 | 16.3% | 1,591,777 | ‐ | 112,500 | 1,704,277 | 16.8% | 162 | 17.0% | 14,168 | 14.7% | |||||||
8 | 2028 | 122,188 | 12.3% | 1,094,879 | ‐ | 35,964 | 1,130,843 | 11.1% | 108 | 11.3% | 13,054 | 13.5% | |||||||
9 | 2029 | 118,768 | 12.0% | 553,439 | ‐ | 617,332 | 1,170,772 | 11.5% | 100 | 10.5% | 9,664 | 10.0% | |||||||
10 | 2030 | 107,427 | 10.9% | 1,162,353 | ‐ | ‐ | 1,162,353 | 11.4% | 141 | 14.8% | 15,293 | 15.8% | |||||||
Thereafter | 362,295 | 36.6% | 3,911,709 | 11,446 | ‐ | 3,923,155 | 38.6% | 328 | 34.4% | 33,698 | 34.9% | ||||||||
TOTAL | $ | 990,589 | 100.0% | $ | 9,248,763 | $ | 11,446 | $ | 917,305 | $ | 10,177,513 | 100.0% | 953 | 100.0% | 96,653 | 100.0% |
Note: All percentages rounded to one decimal
- Excludes one multi‐tenant medical office building
- Excludes $29 million provision for credit losses
4
Portfolio: Operator Geographic Diversification at March 31, 2020
(No. of Operators No. of Facilities) | Operators: | 70 | (1) |
Facilities: | 954 | (2) | |
States: | 42 | ||
Foreign Countries: | 1 | (UK) |
State Concentration Key
<10 facilities
10 to 20 facilities
>20 facilities
- Many operators have facilities in multiple states
- Excludes non‐operating facilities, closed and/or not currently providing patient services
GEOGRAPHIC CONCENTRATION BY INVESTMENT
($ in thousands) | As of March 31, 2021 | ||||||
No. of | % | % | |||||
Properties (1) | Investment (1)(2) | Investment | Occupancy (3)(4) | ||||
Florida | 135 | $ | 1,561,075 | 15.3% | 83.0% | ||
Texas | 118 | 1,009,015 | 9.9% | 65.6% | |||
Michigan | 49 | 651,885 | 6.4% | 79.8% | |||
Indiana | 70 | 639,590 | 6.3% | 76.9% | |||
California | 53 | 580,659 | 5.7% | 83.5% | |||
Pennsylvania | 54 | 580,216 | 5.7% | 80.6% | |||
Ohio | 42 | 530,988 | 5.2% | 78.8% | |||
Virginia | 28 | 419,743 | 4.1% | 82.6% | |||
New York | 1 | 333,780 | 3.3% | n/a | |||
North Carolina | 39 | 327,531 | 3.2% | 79.8% | |||
Remaining 32 states | 322 | 3,109,102 | 30.5% | 75.9% | |||
911 | $ | 9,743,584 | 95.6% | ||||
United Kingdom | 57 | 446,356 | 4.4% | 86.5% | |||
Total | 968 | $ | 10,189,940 | 100.0% | 78.1% |
- Excludes six properties with total investment of $7.9 million classified as Assets held for sale ‐ net
- Excludes $28 million reserve for credit losses
- As of December 31, 2020, TTM
- Includes Core Portfolio only (see page 21 for definition of Core Portfolio)
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Omega Healthcare Investors Inc. published this content on 03 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 May 2021 21:52:02 UTC.