Exhibit 99.1

Graphic

303 International Circle P: 410.427.1700

Suite 200 F: 410.427.8800

Hunt Valley, MD 21030

PRESS RELEASE – FOR IMMEDIATE RELEASE

OMEGA REPORTS SECOND QUARTER 2020 RESULTS

Completed $50 Million in New Investments

HUNT VALLEY, MARYLAND – August 5, 2020 – Omega Healthcare Investors, Inc. (NYSE: OHI) (the “Company” or “Omega”) today announced its results for the quarter ended June 30, 2020.  The Company reported net income of $102.0 million or $0.43 per common share. The Company also reported NAREIT Funds From Operations (“NAREIT FFO”) for the quarter of $186.5 million or $0.80 per common share, Adjusted Funds From Operations (“AFFO” or “Adjusted FFO”) of $189.8 million or $0.81 per common share, and Funds Available for Distribution (“FAD”) of $179.1 million.

NAREIT FFO, AFFO and FAD are supplemental non-GAAP financial measures that we believe are useful in evaluating the performance of real estate investment trusts.  For more information regarding these non-GAAP measures, see the “Funds From Operations” schedule below and the Company’s website at www.omegahealthcare.com.

CEO COMMENTS

Taylor Pickett, Omega’s Chief Executive Officer, stated, “While we are pleased to announce strong second quarter results, the pandemic continues to evolve and therefore our primary focus remains helping our tenants wherever possible.  Our operators continue to perform admirably in the face of further growth in cases within many regions, as they seek to provide ongoing quality care to residents, while implementing prudent protocols to limit the exposure of facilities to the virus.  Both occupancy and facility costs have been meaningfully impacted by COVID-19 and, while we have seen a moderating deterioration of operating metrics, it is too soon to conclude that we have reached a floor in operator financial performance.  In the face of these challenges, the federal government and many states have been proactive in providing vital financial support to the industry.  Their efforts are saving lives and highlight the importance of protecting this vulnerable segment of our society.  The industry continues to work closely with the government to ensure further necessary access to testing, equipment and financial support.”

Mr. Pickett continued, “The government efforts highlight the important role skilled nursing facilities play within the healthcare continuum. Despite the current challenges, as the lowest cost post-acute provider within the healthcare sector, with its needs-based nature, constrained supply and growing demand, we believe the attractive elements of this asset class will remain intact once this pandemic has been resolved.”

Mr. Pickett concluded, “We would once again like to highlight the remarkable efforts of our operators and their heroic employees, who risk their own health and that of their families to bravely protect and care for their residents.  Although their efforts are too often overlooked, we are aware of the sacrifices they are making and want to thank them wholeheartedly for their endeavors.”


2020 RECENT DEVELOPMENTS AND SECOND QUARTER HIGHLIGHTS

In Q3 2020, the Company…

declared a $0.67 per share quarterly common stock dividend.
collected over 99% of contractual rent and mortgage payments for the month of July (when excluding Daybreak, which is transitioning its portfolio pursuant to a forbearance agreement).

In Q2 2020, the Company

collected over 99% of second quarter contractual rent and mortgage payments (when excluding Daybreak).
sold 7 facilities for $38 million in cash, generating $13 million in gains.
completed $50 million of new investments.
invested $31 million in capital renovation and construction-in-progress projects.
repaid $300 million in credit facility borrowings.
paid a $0.67 per share quarterly common stock dividend.

In Q1 2020, the Company

suspended its Dividend Reinvestment and Stock Purchase Plan.
sold six facilities for $18 million in cash proceeds generating $2 million in gains.
completed $19 million of new investments.
invested $39 million in capital renovation and construction-in-progress projects.
borrowed $300 million on credit facility for liquidity.
authorized $200 million stock repurchase program.
paid a $0.67 per share quarterly common stock dividend.

NET INCOME

For the quarter ended June 30, 2020, the Company reported net income of $102.0 million, or $0.43 per common share, on revenues of $256.4 million.  This compares to net income of $75.7 million, or $0.34 per common share, on revenues of $225.3 million, for the same period in 2019.  

For the six months ended June 30, 2020, the Company reported net income of $194.2 million, or $0.83 per common share, on revenues of $509.4 million.  This compares to net income of $147.9 million, or $0.68 per common share, on revenues of $449.0 million, for the same period in 2019.  

The year-to-date increase in net income was primarily due to (i) $60.5 million in revenue from incremental new investments, (ii) a $14.9 million increase in gains on the sale of assets, and (iii) a $4.2 million decrease in merger related costs.  The increase in net income was partially offset by (i) a $21.7 million increase in depreciation and amortization expense from new investments, (ii) a $9.1 million increase in interest expense, and (iii) and a $1.5 million increase in impairments on direct financing leases and real estate properties.

SECOND QUARTER 2020 RESULTS

Operating Revenues and Expenses – Revenues for the quarter ended June 30, 2020 totaled $256.4 million, which included $9.7 million of non-cash revenue, $4.1 million of real estate tax and ground rents, $3.2 million of one-time revenue, offset by a $1.2 million provision for uncollectible straight-line revenue.

Expenses for the quarter ended June 30, 2020 totaled $112.7 million, consisting of $83.6 million of depreciation and amortization expense, $12.0 million of impairment on real estate properties, $9.0 million of general and


administrative (“G&A”) expense, $4.6 million of stock-based compensation expense, $4.0 million of real estate tax and ground lease expense and an $0.8 million recovery on direct financing leases.

Other Income and Expense – Other income and expense for the quarter ended June 30, 2020 was a net expense of $55.1 million, primarily consisting of $52.8 million of interest expense and $2.5 million of amortized deferred financing costs.

Funds From Operations – For the quarter ended June 30, 2020, NAREIT FFO was $186.5 million, or $0.80 per common share, on 235 million weighted-average common shares outstanding, compared to $157.2 million, or $0.71 per common share, on 220 million weighted-average common shares outstanding, for the same period in 2019.

The $186.5 million of NAREIT FFO for the quarter ended June 30, 2020 includes $4.6 million of non-cash stock-based compensation expense, $1.2 million of interest refinancing cost related to an unconsolidated joint venture, a $1.2 million write-off of non-cash straight-line revenue and $0.3 million for merger related costs offset by $3.2 million of one-time revenue and an $0.8 million recovery on direct financing leases.

The $157.2 million of FFO for the quarter ended June 30, 2019 includes a $6.7 million write-off of non-cash revenue (primarily straight-line revenue), $4.0 million of non-cash stock-based compensation expense and $1.2 million of acquisition costs.

Adjusted FFO was $189.8 million, or $0.81 per common share, for the quarter ended June 30, 2020, compared to $169.2 million, or $0.77 per common share, for the same quarter in 2019.  For further information see the “Funds From Operations” schedule below and the Company’s website.

2020 SECOND QUARTER PORTFOLIO AND RECENT ACTIVITY

Q2 Portfolio Activity:

$81 Million of New Investments in Q2 2020 – In the second quarter of 2020, the Company completed approximately $50 million of new investments and invested $31 million in capital renovations and new construction projects consisting of the following:

$7 Million Acquisition – On June 30, 2020, the Company acquired one skilled nursing facility (“SNF”) located in Ohio from an unrelated third party for approximately $6.9 million.  The 112-bed facility was added to an existing operator’s master lease with an initial annual cash yield of 9.5% with 2.0% annual escalators.

$43 Million Mortgage Loan – On June 30, 2020, the Company entered into a $43.2 million first mortgage loan with an existing operator of the Company. The loan is secured by two SNFs with 375 beds located in Ohio. The loan bears an annual interest rate of 9.5%.

$31 Million of New InvestmentsIn the second quarter of 2020, the Company invested $31.5 million under its capital renovation and construction-in-progress programs.

Asset Sales and Impairments:

$38 Million in Assets Sales – In the second quarter of 2020, the Company sold 7 properties for $38.0 million in cash, recognizing a gain of approximately $12.8 million.

Impairments and Assets Held for Sale – During the second quarter of 2020, the Company recorded an impairment charge of $12.0 million to reduce the net book values on 10 properties to their estimated fair values or expected selling prices.


As of June 30, 2020, the Company had six properties classified as assets held for sale totaling approximately $70.5 million.

FINANCING ACTIVITIES

Equity Shelf Program and Dividend Reinvestment and Common Stock Purchase Plan – On March 23, 2020, the Company suspended its Dividend Reinvestment and Common Stock Purchase Plan until further notice.  

    

Equity Shelf (At-the-Market) Program for 2020

(in thousands, except price per share)

Q1

Q2

Year To Date

Number of shares

 

49

-

49

Average price per share

$

41.05

$

-

$

41.05

Gross proceeds

$

2,000

$

-

$

2,000

    

Dividend Reinvestment and Common Stock Purchase Plan for 2020

(in thousands, except price per share)

Q1

Q2

Year To Date

Number of shares

 

90

-

90

Average price per share

$

41.80

$

-

$

41.80

Gross proceeds

$

3,747

$

-

$

3,747

BALANCE SHEET AND LIQUIDITY

As of June 30, 2020, the Company had $5.3 billion of outstanding indebtedness with a weighted average interest rate of 4.1%.  The Company’s indebtedness consisted of an aggregate principal amount of $3.9 billion of senior unsecured notes, $798.6 million of unsecured term loans, $386.0 million of secured debt and $216.4 million of borrowings outstanding under its revolving credit facility.  Total cash and cash equivalents were $37.0 million as of June 30, 2020, and the Company has $1.0 billion of undrawn capacity on its unsecured credit facility revolver.

DIVIDENDS

On July 15, 2020, the Board of Directors declared a common stock dividend of $0.67 per share, to be paid August 14, 2020 to common stockholders of record as of the close of business on July 31, 2020.

Bob Stephenson, Omega’s CFO, commented, “Our historical dividend announcement date is the 15th day in the first month of each quarter, with a payment date approximately one month later or the 15th day of the mid-quarter month (all dependent on business days).  Starting with our next scheduled dividend, we will continue to adhere to our historical mid-quarter payment date; however, we plan to change the dividend announcement date to correspond with pre-scheduled Board and audit committee meeting dates for October and for the 2021 calendar year.  This change will extend our dividend announcement date by approximately one week with no impact to the scheduled payment date.”

2020 GUIDANCE

Given the uncertainty related to the COVID-19 pandemic, its impact on the financial performance of the Company’s operators and the extent of future necessary government support to the operators, 2020 earnings guidance was previously withdrawn.


CONFERENCE CALL

The Company will be conducting a conference call on Thursday, August 6, 2020 at 10 a.m. Eastern time to review the Company’s 2020 second quarter results and current developments.  Analysts and investors within the United States interested in participating are invited to call (877) 511-2891.  The Canadian toll-free dial-in number is (855) 669-9657.  All other international participants may use the dial-in number (412) 902-4140.  Ask the operator to be connected to the “Omega Healthcare’s Second Quarter 2020 Earnings Call.”

To listen to the conference call via webcast, log on to www.omegahealthcare.com and click the “earnings call” icon on the Company’s home page.  Webcast replays of the call will be available on the Company’s website for two weeks following the call.

* * * * * *

Omega is a real estate investment trust that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities.  Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the US, as well as in the UK.

FOR FURTHER INFORMATION, CONTACT

Matthew Gourmand, SVP, Investor Relations

or

Bob Stephenson, CFO at (410) 427-1700


Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 impact of 2019 novel coronavirus (“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, 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 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; (xiii) changes in interest rates; (xiii) the timing, amount and yield of any additional investments; (xiv) changes in tax laws and regulations affecting real estate investment trusts (“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 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.


OMEGA HEALTHCARE INVESTORS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

June 30, 

December 31, 

    

2020

    

2019

(Unaudited)

ASSETS

Real estate properties

Real estate investments

$

8,807,944

$

8,985,994

Less accumulated depreciation

 

(1,902,587)

 

(1,787,425)

Real estate investments – net

 

6,905,357

 

7,198,569

Investments in direct financing leases – net

 

10,870

 

11,488

Mortgage notes receivable – net

 

886,029

 

773,563

 

7,802,256

 

7,983,620

Other investments – net

 

434,653

 

419,228

Investments in unconsolidated joint ventures

 

195,546

 

199,884

Assets held for sale – net

 

70,516

 

4,922

Total investments

 

8,502,971

 

8,607,654

Cash and cash equivalents

 

37,022

 

24,117

Restricted cash

 

4,543

 

9,263

Contractual receivables – net

 

27,579

 

27,122

Other receivables and lease inducements

 

403,313

 

381,091

Goodwill

 

643,491

 

644,415

Other assets

 

68,665

 

102,462

Total assets

$

9,687,584

$

9,796,124

LIABILITIES AND EQUITY

 

  

Revolving line of credit

$

216,434

$

125,000

Term loans – net

 

796,349

 

804,738

Secured borrowings

 

385,976

 

389,680

Senior notes and other unsecured borrowings – net

 

3,826,799

 

3,816,722

Accrued expenses and other liabilities

 

284,959

 

312,040

Deferred income taxes

 

9,675

 

11,350

Total liabilities

 

5,520,192

 

5,459,530

Equity:

 

  

Common stock $.10 par value authorized – 350,000 shares, issued and outstanding – 226,943 shares as of June 30, 2020 and 226,631 as of December 31, 2019

 

22,694

 

22,663

Common stock – additional paid-in capital

 

5,999,972

 

5,992,733

Cumulative net earnings

 

2,624,630

 

2,463,436

Cumulative dividends paid

 

(4,610,828)

 

(4,303,546)

Accumulated other comprehensive loss

 

(66,235)

 

(39,858)

Total stockholders’ equity

 

3,970,233

 

4,135,428

Noncontrolling interest

 

197,159

 

201,166

Total equity

 

4,167,392

 

4,336,594

Total liabilities and equity

$

9,687,584

$

9,796,124


OMEGA HEALTHCARE INVESTORS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(in thousands, except per share amounts)

Three Months Ended

 

Six Months Ended

June 30, 

 

June 30, 

    

2020

    

2019

 

2020

    

2019

Operating revenues

 

  

 

  

  

 

  

Rental income

$

217,403

$

191,812

$

435,528

$

380,016

Real estate tax and ground lease income

 

4,129

 

3,005

 

7,504

 

6,978

Income from direct financing leases

 

259

 

259

 

517

 

519

Mortgage interest income

 

21,680

 

18,832

 

41,365

 

36,966

Other investment income

 

10,932

 

11,133

 

21,584

 

23,047

Miscellaneous income

 

1,992

 

238

 

2,921

 

1,441

Total operating revenues

 

256,395

 

225,279

 

509,419

 

448,967

Operating expenses

 

  

 

  

 

  

 

  

Depreciation and amortization

 

83,586

 

73,637

 

166,229

 

144,489

General and administrative

 

8,983

 

9,548

 

19,910

 

21,374

Real estate tax and ground lease expense

 

4,018

 

4,317

 

8,045

 

8,436

Stock-based compensation

 

4,623

 

4,040

 

9,258

 

8,110

Acquisition and merger related costs

 

251

 

1,236

 

26

 

4,185

Impairment on real estate properties

 

11,988

 

5,709

 

15,627

 

5,709

(Recovery) impairment on direct financing leases

 

(752)

 

 

(752)

 

7,700

Provision for credit losses

 

15

 

 

1,501

 

Total operating expenses

 

112,712

 

98,487

 

219,844

 

200,003

Other operating income

 

  

 

  

 

  

 

  

Gain (loss) on assets sold – net

 

12,843

 

(267)

 

14,681

 

(264)

Operating income

 

156,526

 

126,525

 

304,256

 

248,700

Other income (expense)

 

  

 

  

 

  

 

  

Interest income and other – net

 

141

 

(191)

 

(593)

 

146

Interest expense

 

(52,791)

 

(48,380)

 

(105,532)

 

(96,480)

Interest – amortization of deferred financing costs

 

(2,461)

 

(2,238)

 

(4,922)

 

(4,476)

Realized gain (loss) on foreign exchange

 

1

 

(195)

 

(69)

 

(169)

Total other expense

 

(55,110)

 

(51,004)

 

(111,116)

 

(100,979)

Income before income tax expense and income from unconsolidated joint ventures

 

101,416

 

75,521

 

193,140

 

147,721

Income tax expense

 

(858)

 

(793)

 

(1,863)

 

(1,468)

Income from unconsolidated joint ventures

 

1,402

 

943

 

2,962

 

1,600

Net income

 

101,960

 

75,671

 

194,239

 

147,853

Net income attributable to noncontrolling interest

 

(2,653)

 

(2,530)

 

(5,017)

 

(5,010)

Net income available to common stockholders

$

99,307

$

73,141

$

189,222

$

142,843

Earnings per common share available to common stockholders:

 

  

 

  

 

  

 

  

Basic:

 

  

 

  

 

  

 

  

Net income available to common stockholders

$

0.44

$

0.35

$

0.83

$

0.69

Diluted:

 

  

 

  

 

  

 

  

Net income

$

0.43

$

0.34

$

0.83

$

0.68

Dividends declared per common share

$

0.67

$

0.66

$

1.34

$

1.32

Weighted-average shares outstanding, basic

 

227,411

 

211,569

 

227,336

 

208,064

Weighted-average shares outstanding, diluted

 

234,523

 

220,479

 

234,515

 

217,002


OMEGA HEALTHCARE INVESTORS, INC.

FUNDS FROM OPERATIONS

Unaudited

(in thousands, except per share amounts)

Three Months Ended

 

Six Months Ended

June 30, 

 

June 30, 

2020

    

2019

 

2020

    

2019

Net income

$

101,960

$

75,671

$

194,239

$

147,853

(Deduct gain) add back loss from real estate dispositions

(12,843)

267

(14,681)

264

Deduct gain from real estate dispositions of unconsolidated joint ventures

 

(1,838)

 

 

(1,955)

 

Sub-total

 

87,279

 

75,938

 

177,603

 

148,117

Elimination of non-cash items included in net income:

 

  

 

  

 

  

 

  

Depreciation and amortization

 

83,586

 

73,637

 

166,229

 

144,489

Depreciation - unconsolidated joint ventures

 

3,550

 

1,675

 

7,182

 

3,047

Add back non-cash provision for impairments on real estate properties

 

11,988

 

5,709

 

15,627

 

5,709

Add back (deduct) unrealized loss (gain) on warrants

 

65

 

270

 

840

 

(14)

NAREIT funds from operations (“NAREIT FFO”)

$

186,468

$

157,229

$

367,481

$

301,348

Weighted-average common shares outstanding, basic

 

227,411

 

211,569

 

227,336

 

208,064

Restricted stock and PRSUs

 

1,030

 

1,592

 

1,146

 

1,640

Omega OP Units

 

6,082

 

7,318

 

6,033

 

7,298

Weighted-average common shares outstanding, diluted

 

234,523

 

220,479

 

234,515

 

217,002

NAREIT funds from operations available per share

$

0.80

$

0.71

$

1.57

$

1.39

Adjustments to calculate adjusted funds from operations:

 

  

 

  

 

  

 

  

NAREIT FFO

$

186,468

$

157,229

$

367,481

$

301,348

Deduct one-time revenue

 

(3,162)

 

 

(3,828)

 

(972)

Add back acquisition costs

 

251

 

1,236

 

26

 

4,185

Add back one-time termination payment

 

 

 

 

1,118

Add back interest refinancing cost - unconsolidated joint ventures

1,198

1,198

(Deduct) add back (recovery) impairment for direct financing leases

 

(752)

 

 

(752)

 

7,700

Add back provision for credit losses

 

15

 

 

1,501

 

Add back uncollectible accounts

 

1,205

 

6,730

 

1,205

 

7,959

Add back restructuring costs

 

 

 

 

1,040

Add back non-cash stock-based compensation expense

 

4,623

 

4,040

 

9,258

 

8,110

Adjusted funds from operations (“AFFO”)

$

189,846

$

169,235

$

376,089

$

330,488

Adjustments to calculate funds available for distribution:

 

  

 

  

 

  

 

  

Non-cash interest expense

$

2,438

$

2,213

$

4,876

$

4,426

Capitalized interest

 

(3,454)

 

(3,801)

 

(7,100)

 

(7,254)

Non-cash revenues

 

(9,735)

 

(17,036)

 

(20,498)

 

(31,809)

Funds available for distribution (“FAD”)

$

179,095

$

150,611

$

353,367

$

295,851

NAREIT Funds From Operations (“NAREIT FFO”), Adjusted FFO and Funds Available for Distribution (“FAD”) are non-GAAP financial measures.  For purposes of the Securities and Exchange Commission’s Regulation G, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that exclude amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable financial measure calculated and presented in accordance with GAAP in the income statement, balance sheet or statement of cash flows (or equivalent statements) of the company, or include amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable financial measure so calculated and presented.  As used in this press release, GAAP refers to generally accepted accounting principles in the United States of America.  


Pursuant to the requirements of Regulation G, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

The Company calculates and reports NAREIT FFO in accordance with the definition and interpretive guidelines issued by the National Association of Real Estate Investment Trusts (“NAREIT”), and consequently, NAREIT FFO is defined as net income (computed in accordance with GAAP), adjusted for the effects of asset dispositions and certain non-cash items, primarily depreciation and amortization and impairments on real estate assets, and after adjustments for unconsolidated partnerships and joint ventures and changes in the fair value of warrants.  Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis.  The Company believes that NAREIT FFO, Adjusted FFO and FAD are important supplemental measures of its operating performance.  Because the historical cost accounting convention used for real estate assets requires depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time, while real estate values instead have historically risen or fallen with market conditions.  The term funds from operations was designed by the real estate industry to address this issue.  Funds from operations described herein is not necessarily comparable to funds from operations of other real estate investment trusts, or REITs, that do not use the same definition or implementation guidelines or interpret the standards differently from the Company.

Adjusted FFO is calculated as NAREIT FFO excluding the impact of non-cash stock-based compensation and certain revenue and expense items (e.g., acquisition and merger related costs, provisions for uncollectible accounts, provisions for current expected credit losses, etc.). FAD is calculated as Adjusted FFO less non-cash interest expense and non-cash revenue, such as straight-line rent. The Company believes these measures provide an enhanced measure of the operating performance of the Company’s core portfolio as a REIT. The Company’s computation of Adjusted FFO and FAD may not be comparable to the NAREIT definition of funds from operations or to similar measures reported by other REITs, but the Company believes that they are appropriate measures for this Company.

The Company uses these non-GAAP measures among the criteria to measure the operating performance of its business.  The Company also uses FAD among the performance metrics for performance-based compensation of officers. The Company further believes that by excluding the effect of depreciation, amortization, impairments on real estate assets and gains or losses from sales of real estate, all of which are based on historical costs and which may be of limited relevance in evaluating current performance, funds from operations can facilitate comparisons of operating performance between periods and between other REITs.  The Company offers these measures to assist the users of its financial statements in analyzing its operating performance and not as measures of liquidity or cash flow. These non-GAAP measures are not measures of financial performance under GAAP and should not be considered as measures of liquidity, alternatives to net income or indicators of any other performance measure determined in accordance with GAAP.  Investors and potential investors in the Company’s securities should not rely on these non-GAAP measures as substitutes for any GAAP measure, including net income.


The following tables present selected portfolio information, including operator and geographic concentrations, and lease and loan maturities:

As of June 30, 2020

As of June 30, 2020

    

    

Total

    

    

# of

    

# of

Balance Sheet Data

Total # of

Investment

% of

Operating

Operating

Properties

($000’s)

Investment

Properties (2)

Beds (2)

Real estate investments (1)

 

911

$

8,818,814

 

91

%  

902

 

90,375

Mortgage notes receivable

 

64

 

886,029

 

9

%  

57

 

6,234

 

975

$

9,704,843

 

100

%  

959

 

96,609

Assets held for sale

 

6

 

70,516

 

  

 

  

 

  

Total investments

 

981

$

9,775,359

 

  

 

  

 

  

    

    

Total

    

# of

# of

Investment

Investment Data

Total # of

Investment

% of

Operating

Operating

per Bed

Properties

($000’s)

Investment

Properties (2)

Beds (2)

($000’s)

SNFs/Transitional care

 

845

$

8,112,755

 

84

%  

831

 

88,579

$

92

Senior housing (3)

 

130

 

1,592,088

 

16

%  

128

 

8,030

$

198

 

975

$

9,704,843

 

100

%  

959

 

96,609

$

100

Assets held for sale

 

6

 

70,516

Total investments

 

981

$

9,775,359


(1) Includes one asset under a direct financing lease totaling $10.9 million.

(2) Excludes facilities which are non-operating, closed and/or not currently providing patient services.

(3) Includes ALFs, memory care and independent living facilities.

Revenue Composition ($000’s)

Revenue by Investment Type

Three Months Ended

Six Months Ended

June 30, 2020

    

June 30, 2020

Rental property (1)

    

$

217,662

    

85

%

$

436,045

    

86

%

Real estate tax and ground lease income

4,129

2

%

7,504

1

%

Mortgage notes

 

21,680

 

8

%

 

41,365

 

8

%

Other investment income and miscellaneous income - net

 

12,924

 

5

%

 

24,505

 

5

%

$

256,395

 

100

%

$

509,419

 

100

%

Revenue by Facility Type

Three Months Ended

Six Months Ended

    

June 30, 2020

    

June 30, 2020

SNFs/Transitional care

$

211,547

    

82

%

    

$

421,621

    

83

%

Senior housing

 

27,795

 

11

%

 

55,789

 

11

%

Real estate tax and ground lease income

 

4,129

 

2

%

 

7,504

 

1

%

Other

 

12,924

 

5

%

 

24,505

 

5

%

$

256,395

 

100

%

$

509,419

 

100

%


(1) Includes one asset under a direct financing lease totaling $0.3 million.


    

    

2020 Q2

% of Total

Annualized

Annualized

# of

Contractual

Contractual

Rent/Interest Concentration by Operator ($000’s)

Properties (1)

Rent/Interest (1)(2)

Rent/Interest 

Ciena

 

69

$

95,628

 

10.2

%

Consulate

 

81

 

85,583

 

9.1

%

Genesis

 

52

 

62,046

 

6.6

%

CommuniCare

 

43

 

61,416

 

6.6

%

Maplewood (3)

 

15

 

57,397

 

6.1

%

Signature

 

54

 

50,171

 

5.4

%

Saber

 

47

 

47,850

 

5.1

%

HHC

 

44

 

36,658

 

3.9

%

Guardian

 

35

 

35,883

 

3.8

%

Gulf Coast

 

23

 

28,820

 

3.1

%

Remaining Operators (4)

 

495

 

375,966

 

40.1

%

 

958

$

937,418

 

100.0

%


(1) Excludes properties which are non-operating, closed and/or not currently providing patient services.

(2) Includes mezzanine and term loan interest.

(3) Includes Inspīr Carnegie Hill (f/k/a 2nd Avenue) revenue which is contractually effective 1/1/2020.

(4) Excludes one multi-tenant medical office building.

    

Total # of

Total

% of Total

Geographic Concentration by Investment ($000’s)

Properties (1)

Investment (1)(2)(3)

Investment

Florida

 

129

$

1,401,344

 

14.4

%

Texas

 

124

 

903,924

 

9.3

%

Michigan

 

50

 

663,043

 

6.8

%

Ohio

 

57

 

643,448

 

6.6

%

Indiana

 

70

 

639,590

 

6.6

%

California

 

59

 

599,739

 

6.2

%

Pennsylvania

 

55

 

589,701

 

6.1

%

North Carolina

 

41

 

349,834

 

3.6

%

Virginia

 

22

 

332,080

 

3.4

%

New York (3)

 

 

324,797

 

3.3

%

Remaining 30 states

 

311

 

2,884,338

 

29.6

%

 

918

 

9,331,838

 

95.9

%

United Kingdom

 

57

 

398,394

 

4.1

%

 

975

$

9,730,232

 

100.0

%


(1) Excludes six properties with total investment of $70.5 million classified as assets held for sale.

(2) Excludes $25 million reserve for credit losses.

(3) Includes Inspīr Carnegie Hill development project.

Operating Lease Expirations & Loan Maturities ($000's) (1)

As of June 30, 2020

Year

Lease (Rent)

Interest Income

Lease (Rent) and Interest Income

% of Total Annualized Contractual Rent/Interest

2020

$

1,493

$

90

$

1,583

 

0.2

%

2021

 

4,302

 

5,875

 

10,177

 

1.1

%

2022

 

36,903

 

274

 

37,177

 

4.0

%

2023

 

6,507

 

905

 

7,412

 

0.8

%

2024

 

36,070

 

2,943

 

39,013

 

4.2

%


(1) Based on annualized 2nd quarter 2020 contractual rent and interest.


The following tables present operator revenue mix, census and coverage data based on information provided by our operators for the indicated periods ended.  We have not independently verified this information, and we are providing this data for informational purposes only.

    

  

Medicare /

 

Operator Revenue Mix (1)

Medicaid

Insurance

Private / Other

Three-months ended March 31, 2020

 

52.6

%  

35.7

%  

11.7

%

Three-months ended December 31, 2019

 

52.7

%  

34.6

%  

12.7

%

Three-months ended September 30, 2019

 

53.4

%  

33.4

%  

13.2

%

Three-months ended June 30, 2019

 

54.2

%  

33.3

%  

12.5

%

Three-months ended March 31, 2019

 

53.7

%  

34.0

%  

12.3

%


(1) Excludes all facilities considered non-core.

Operator Census and Coverage (1)

Coverage Data

    

    

Before

After

Occupancy (2)

Management

Management

Fees (3)

Fees (4)

Twelve-months ended March 31, 2020

 

83.6

%  

1.68x

1.32x

Twelve-months ended December 31, 2019

 

83.6

%  

1.64x

1.29x

Twelve-months ended September 30, 2019

 

83.4

%  

1.66x

1.30x

Twelve-months ended June 30, 2019

 

83.3

%  

1.66x

1.30x

Twelve-months ended March 31, 2019

 

82.7

%  

1.67x

1.31x


(1)

Excludes all properties considered non-core.

(2)

Based on available (operating) beds.

(3)

Represents EBITDARM of our operators, defined as earnings before interest, taxes, depreciation, amortization, Rent expense and management fees for the applicable period, divided by the total Rent payable to the Company by its operators during such period. “Rent” refers to the total monthly rent and mortgage interest due under the Company’s lease and mortgage agreements over the applicable period.

(4)

Represents EBITDAR of our operators, defined as earnings before interest, taxes, depreciation, amortization, and Rent (as defined in footnote 3) expense for the applicable period, divided by the total Rent payable to the Company by its operators during such period. Assumes a management fee of 4%.

The following table presents a debt maturity schedule as of June 30, 2020:

Debt Maturities ($000’s)

Unsecured Debt

Year

Line of Credit and Term Loans (1)

Senior Notes/Other (2)

Sub Notes (3)

Secured Debt

Total Debt Maturities

2020

$

$

$

$

$

2021

 

216,434

 

 

20,000

2,275

 

238,709

2022

 

798,560

 

 

 

798,560

2023

 

 

700,000

 

 

700,000

2024

 

 

400,000

 

 

400,000

2025

 

 

400,000

 

 

400,000

Thereafter

 

 

2,350,000

 

383,701

 

2,733,701

$

1,014,994

$

3,850,000

$

20,000

$

385,976

$

5,270,970


(1) The Line of Credit and Term Loans exclude $1.5 million of net deferred financing costs and can be extended into 2022. The $799 million is comprised of a: $350 million term loan, £100 million term loan (equivalent to $124 million), $75 million term loan to Omega’s operating partnership, $250 million term loan and excludes $2.2 million net deferred financing costs.

(2) Excludes net discounts and deferred financing costs.

(3) Excludes $0.1 million of fair market valuation adjustments.


The following table presents investment activity:

Investment Activity ($000's)

Three Months Ended

Six Months Ended

June 30, 2020

June 30, 2020

Funding by Investment Type

$ Amount

    

%

    

$ Amount

    

%

Real property

$

6,850

8.4

%

$

25,906

18.5

%

Construction-in-progress

15,535

 

19.1

%

39,598

 

28.3

%

Capital expenditures

 

15,941

 

19.5

%

 

31,359

 

22.4

%

Mortgages

43,150

53.0

%

43,150

30.8

%

Other

 

 

%

 

 

%

Total

$

81,476

 

100.0

%

$

140,013

 

100.0

%


View differences made from one to another to evaluate Ohi Healthcare Properties Limited Partnership's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Ohi Healthcare Properties Limited Partnership.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account