Completed $249 Million in New Investments in
Q4
Providing 2024 Adjusted FFO Guidance
Omega Healthcare Investors, Inc. (NYSE: OHI) (the “Company” or
“Omega”) announced today its results for the quarter and year ended
December 31, 2023.
FOURTH QUARTER 2023 AND RECENT
HIGHLIGHTS
- Net income for the quarter of $57 million, or $0.22 per common
share, compared to $47 million, or $0.19 per common share, for Q4
2022.
- Nareit Funds From Operations (“Nareit FFO”) of $129 million, or
$0.50 per common share, on 257 million weighted-average common
shares outstanding, compared to a loss of ($30) million, or ($0.13)
per common share, on 243 million weighted-average common shares
outstanding, for Q4 2022.
- Adjusted Funds From Operations (“Adjusted FFO” or “AFFO”) of
$173 million, or $0.68 per common share, compared to $177 million,
or $0.73 per common share, for Q4 2022.
- Funds Available for Distribution (“FAD”) of $163 million, or
$0.64 per common share, compared to FAD of $171 million, or $0.70
per common share, for Q4 2022.
- $249 million in new investments consisting of $167 million in
real estate loans and other loans and investments, $51 million in
real estate acquisitions and $31 million in capital renovation and
construction projects.
- Sold 32 facilities for $324 million in cash proceeds and debt
repayments, generating a $10 million gain.
- Repaid $227 million on 25 HUD mortgage loans related to
facility sales and transitions.
- Completed $27 million in new real estate loans in Q1 2024 to
date.
FULL YEAR 2023
HIGHLIGHTS
- Net income for 2023 of $249 million, or $1.00 per common share,
compared to $439 million, or $1.80 per common share, in 2022.
- Nareit FFO of $591 million, or $2.36 per common share, on 250
million weighted-average common shares outstanding, compared to
$461 million, or $1.89 per common share, on 244 million
weighted-average common shares outstanding, in 2022.
- AFFO of $699 million, or $2.79 per common share, compared to
$730 million, or $2.99 per common share, in 2022.
- FAD of $657 million, or $2.62 per common share, compared to FAD
of $678 million, or $2.77 per common share, in 2022.
- $667 million in new investments consisting of $322 million in
real estate loans and other loans and investments, $261 million in
real estate acquisitions and $84 million in capital renovation and
construction projects.
- Sold 69 facilities for $485 million in consideration, and
received repayment of a $105 million seller note, generating an $80
million gain on assets sold.
- Entered into a $429 million unsecured term loan.
- Repaid $350 million of senior unsecured notes due August 1,
2023.
- Repaid $296 million on 32 HUD mortgage loans related to
facility sales and transitions.
- Issued 11 million common shares for gross proceeds of $339
million.
Nareit FFO, AFFO and FAD are supplemental non-GAAP financial
measures that the Company believes are useful in evaluating the
performance of real estate investment trusts (“REITs”).
Reconciliations and further information regarding these non-GAAP
measures are provided at the end of this press release.
CEO COMMENTS
Taylor Pickett, Omega’s Chief Executive Officer, stated, “The
underlying operating performance of our portfolio has continued to
improve, with occupancy now above 80%, EBITDAR coverage at a
post-pandemic high of 1.28x, and the under 1.0x EBITDAR coverage
bucket reduced from 27.5% to 13.2%. As expected, our financial
performance was impacted by operators in the process of being
restructured. In general, the restructured portfolios have
meaningful long-term value and, although we are working to finalize
these restructurings as quickly as possible, our ultimate goal is
to maximize long-term sustainable cash flow.”
Mr. Pickett continued, “As a result, we anticipate our 2024
first and second quarter earnings to continue to be impacted by
these restructuring efforts, although we expect earnings will
improve as the year progresses and our operator issues are
resolved. Additionally, the acquisition pipeline remains solid, and
we expect further earnings growth from our accretive capital
allocation efforts. As a result of this improving operating
backdrop and the greater visibility into our financial performance,
Omega is able to start providing annual AFFO guidance for the first
time since the pandemic, and we expect our 2024 AFFO to be between
$2.70 and $2.80 per share.”
Mr. Pickett concluded, “With operating metrics improving, state
and federal support remaining predominantly solid, and favorable
demographics set to provide a tailwind to industry occupancy for
the foreseeable future, we believe the most significant challenges
of the post-pandemic period are behind us. The primary remaining
concern is around CMS’s pending final rule on minimum staffing. We
believe there are fundamental flaws in the proposed rule,
especially at a time when labor capacity is the biggest issue
facing most facilities. The industry has provided feedback to CMS
on how they could achieve their clinical goals in a more efficient
manner, and we are hopeful that the final rule will reflect these
recommendations.”
FOURTH QUARTER 2023
RESULTS
Revenues – Revenues for the quarter ended December 31,
2023 totaled $239.3 million, an increase of $94.5 million over the
same period in 2022. The increase primarily resulted from (i)
timing of operator restructurings, transitions and net
straight-line write-offs and (ii) revenue from new investments
completed throughout 2022 and 2023. The increase was partially
offset by a decrease in revenue from (i) asset sales completed
throughout 2022 and 2023 and (ii) operators placed on a cash basis
of revenue recognition in 2023.
Expenses – Expenses for the quarter ended December 31,
2023 totaled $197.9 million, a decrease of $82.2 million over the
same period in 2022. The decrease primarily resulted from (i) a
$32.2 million decrease in acquisition, merger and transition
related costs, (ii) a $31.4 million favorable change in provision
for credit losses, (iii) a $13.3 million decrease in impairment on
real estate properties and (iv) an $8.1 million decrease in
depreciation and amortization expense, partially offset by (i) a
$2.0 million increase in stock compensation expense and (ii) a $0.5
million increase in interest expense.
Other Income and Expense – Other income for the quarter
ended December 31, 2023 totaled $20.4 million, a decrease of $162.9
million over the same period in 2022. The decrease primarily
resulted from (i) a $170.5 million decrease in gain on assets sold
and (ii) a $0.5 million increase in loss on debt extinguishment,
partially offset by an $8.1 million increase in other income
(expense) – net.
Net Income – Net income for the quarter ended December
31, 2023 totaled $56.5 million, an increase of $9.8 million over
the same period in 2022. The increase primarily resulted from the
aforementioned (i) $94.5 million increase in total revenue and (ii)
$82.2 million decrease in total expenses, that was partially offset
by (i) a $162.9 million decrease in other income and expense and
(ii) a $3.1 million increase in income tax expense.
2023 ANNUAL RESULTS
Revenues – Revenues for the year ended December 31, 2023
totaled $949.7 million, an increase of $71.5 million over the same
period in 2022. The increase primarily resulted from (i) timing of
operator restructurings, transitions and net straight-line
write-offs and (ii) revenue from new investments completed
throughout 2022 and 2023. The increase was partially offset by a
decrease in revenue from (i) asset sales completed throughout 2022
and 2023 and (ii) operators placed on a cash basis of revenue
recognition in 2022 and 2023.
Expenses – Expenses for the year ended December 31, 2023
totaled $793.6 million, a decrease of $6.1 million over the same
period in 2022. The decrease primarily resulted from (i) a $36.7
million decrease in acquisition, merger and transition related
costs, (ii) a $24.1 million favorable change in provision for
credit losses and (iii) a $12.7 million decrease in depreciation
and amortization expense, partially offset by (i) a $53.5 million
increase in impairment on real estate properties, (ii) a $7.8
million increase in stock-based compensation expense, (iii) a $3.9
million increase in general and administrative expenses primarily
related to payroll and benefits and professional services and (iv)
a $1.5 million increase in interest expense.
Other Income and Expense – Other income for the year
ended December 31, 2023 totaled $99.5 million, a decrease of $258.1
million over the same period in 2022. The decrease primarily
resulted from a $280.3 million decrease in gain on assets sold,
partially offset by a $22.3 million increase in other income
(expense) – net.
Net Income – Net income for the year ended December 31,
2023 totaled $248.8 million, a decrease of $190.0 million over the
same period in 2022. The decrease primarily resulted from the
aforementioned (i) $258.1 million decrease in other income and
expense, as well as (ii) a $7.8 million decrease in income from
unconsolidated joint ventures and (iii) a $1.7 million increase in
income tax expense, partially offset by (i) a $71.5 million
increase in total revenue and (ii) a $6.1 million decrease in
expenses.
2023 FOURTH QUARTER PORTFOLIO AND
RECENT ACTIVITY
Operator Updates:
LaVie – During the fourth quarter, the Company sold 30
facilities that were leased to LaVie Care Centers, LLC (“LaVie”)
for $317.9 million. Consideration consisted of $104.6 million in
cash and $213.3 million for the pay-off of 22 HUD related
mortgages. In the fourth quarter of 2023, LaVie paid $5.3 million
in rent. In January 2024, LaVie paid Omega approximately $1.45
million in rent.
Maplewood – The Company recorded $11.6 million in revenue
during the fourth quarter related to Maplewood consisting of $9.8
million of cash payments received and $1.8 million in security
deposit applications. In January 2024, Maplewood paid $3.8 million
in rent.
Guardian – Guardian Healthcare (“Guardian”) failed to
make its fourth quarter contractual rent payments. The Company
recorded $4.4 million in revenue with the application of Guardian’s
security deposit. In January 2024, the Company drew the remaining
$0.1 million from Guardian’s security deposit to fund its unpaid
January 2024 rent. The Company is in discussions to sell and/or
release to another operator the six remaining Guardian
facilities.
New Investments:
The following table presents investment activity:
Three Months Ended
Year Ended
Investment Activity ($000's)
December 31, 2023
December 31, 2023
$ Amount
%
$ Amount
%
Real property
$
51,212
20.6
%
$
261,276
39.2
%
Construction-in-progress
15,429
6.2
%
46,905
7.0
%
Capital expenditures
14,893
6.0
%
36,439
5.5
%
Real estate loans receivable
117,277
47.1
%
230,749
34.6
%
Other
50,000
20.1
%
91,746
13.7
%
Total
$
248,811
100.0
%
$
667,115
100.0
%
$51 Million of Real Estate Acquisitions – In three
separate fourth quarter transactions, the Company acquired four
facilities for aggregate consideration of $51.2 million and leased
them to three existing operators. The facilities have a weighted
average initial annual cash yield of 9%, with 2.5% annual
escalators.
$117 Million in Real Estate Loans – In four separate
fourth quarter transactions, the Company funded $117.3 million in
mortgage and other real estate loans. The loans have a
weighted-average interest rate of 10.3% with maturity dates ranging
from December 21, 2024 through December 1, 2033.
$50 Million Term Loan – In December 2023, the
Company entered into a $50.0 million term loan to a principal of an
existing operator that bears interest at a fixed rate of 11% per
annum and matures on December 19, 2026.
$27 Million in Q1 2024 Investments – In January and
February 2024, the Company funded $27.3 million in mortgage and
other real estate loans to two new operators. The loans have a
weighted-average interest rate of 9.6% with maturities between
January 31, 2027, and January 31, 2029.
Asset Sales and
Impairments:
$324 Million in Asset Sales – In the fourth quarter of
2023, the Company sold 32 facilities for $110.4 million in cash and
$213.3 million for the payoff of HUD mortgages, recognizing a gain
of $9.7 million.
Impairments and Assets Held for Sale – During the fourth
quarter of 2023, the Company recorded a $4.0 million net impairment
charge to reduce the net book value of one facility to its
estimated fair value.
As of December 31, 2023, the Company had 17 facilities
classified as assets held for sale, totaling $93.7 million in net
book value.
OPERATOR COVERAGE DATA
The following tables present operator revenue mix, census and
coverage data based on information provided by the Company’s
operators for the indicated periods. The Company has not
independently verified this information, and it is providing this
data for informational purposes only.
Operator Revenue Mix (1)
Medicare /
Private /
Medicaid
Insurance
Other
Three-months ended September 30, 2023
55.5
%
28.0
%
16.5
%
Three-months ended June 30, 2023
54.0
%
30.0
%
16.0
%
Three-months ended March 31, 2023
53.0
%
31.8
%
15.2
%
Three-months ended December 31, 2022
54.3
%
31.4
%
14.3
%
Three-months ended September 30, 2022
53.4
%
31.5
%
15.1
%
(1)
Excludes all facilities considered
non-core and does not include federal stimulus revenue. For
non-core definition, see Fourth Quarter 2023 Financial Supplemental
posted in the “Quarterly Supplements” section of Omega’s
website..
Coverage Data
Before
After
Occupancy (2)
Management
Management
Operator Census and Coverage
(1)
Fees (3)
Fees (4)
Twelve-months ended September 30, 2023
79.1
%
1.63x
1.28x
Twelve-months ended June 30, 2023
78.6
%
1.50x
1.15x
Twelve-months ended March 31, 2023
78.0
%
1.44x
1.10x
Twelve-months ended December 31, 2022
77.0
%
1.38x
1.04x
Twelve-months ended September 30, 2022
76.2
%
1.37x
1.04x
(1)
Excludes facilities considered
non-core.
(2)
Based on available (operating) beds.
(3)
Represents EBITDARM of our operators, defined as earnings before
interest, taxes, depreciation, amortization, Rent costs 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 contractual 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%.
FINANCING ACTIVITIES
Dividend Reinvestment and Common Stock Purchase Plan and ATM
Program – The following is a summary of the 2023 quarterly
common shares issued under the Dividend Reinvestment and Common
Stock Purchase Plan and ATM Program through December 31:
Dividend Reinvestment and Common
Stock Purchase Plan for 2023
(in thousands, except price per
share)
Q1
Q2
Q3
Q4
Total
Number of shares
82
77
3,529
27
3,715
Average price per share
$
27.88
$
29.30
$
31.70
$
31.39
$
31.57
Gross proceeds
$
2,278
$
2,252
$
111,895
$
834
$
117,259
ATM Program for 2023
(in thousands, except price per
share)
Q1
Q2
Q3
Q4
Total
Number of shares
—
6,529
466
248
7,243
Average price per share
$
—
$
30.54
$
30.95
$
31.93
$
30.61
Gross proceeds
$
—
$
199,397
$
14,400
$
7,935
$
221,732
$227 Million in HUD Mortgage Payoffs – In the fourth
quarter of 2023, the Company repaid 25 HUD mortgages totaling
$227.0 million from proceeds from assets sales and transitions (see
“Operator Updates: LaVie” above for more details).
BALANCE SHEET AND
LIQUIDITY
As of December 31, 2023, the Company had $5.1 billion of
outstanding indebtedness with a weighted-average annual interest
rate of 4.4%. The Company’s indebtedness consisted of an aggregate
principal amount of $4.55 billion of senior unsecured notes, $478.5
million of unsecured term loans, $61.6 million of secured debt and
$20.4 million of borrowings outstanding under its unsecured
revolving credit facility. As of December 31, 2023, total cash and
cash equivalents were $442.8 million, and the Company had $1.43
billion of undrawn capacity under its unsecured revolving credit
facility.
DIVIDENDS
On January 26, 2024, the Board of Directors declared a quarterly
cash dividend of $0.67 per share, to be paid February 15, 2024, to
common stockholders of record as of the close of business on
February 5, 2024.
2024 GUIDANCE
The Company expects its 2024 Adjusted FFO to be between $2.70
and $2.80 per diluted share.
The Company’s Adjusted FFO guidance for 2024 includes the annual
impact of acquisitions completed in 2023 and year-to-date 2024,
assumes quarterly G&A expense of approximately $11.5 million to
$13.5 million, $94 million in asset sales, repayment of $400
million in senior unsecured debt due 2024, timely completion of
anticipated operator restructurings and transitions, no material
changes in market interest rates, and that no additional operators
are placed on a cash-basis for revenue recognition. It excludes
additional acquisitions and asset sales, certain revenue and
expense items, interest refinancing expense, additional capital
transactions, acquisition costs, and additional provisions for
credit losses, if any.
The Company's guidance is based on several assumptions including
those noted above, which are subject to change and many of which
are outside the Company’s control. If actual results vary from
these assumptions, the Company's expectations may change. Without
limiting the generality of the foregoing, the timing of collection
of rental obligations from operators on a cash basis, the timing
and completion of acquisitions, divestitures, and capital and
financing transactions may cause actual results to vary materially
from our current expectations. There can be no assurance that the
Company will achieve its projected results. The Company may, from
time to time, update its publicly announced Adjusted FFO guidance,
but it is not obligated to do so.
The Company does not provide a reconciliation for its Adjusted
FFO guidance to GAAP net income because it is unable to determine
meaningful or accurate estimates of reconciling items without
unreasonable effort. This is due to the inherent difficulty of
forecasting the timing and/or amounts of various items that would
impact future net income. This includes, but is not limited to,
changes in the provision for credit losses, real estate
impairments, acquisition, merger and transition related costs,
straight-line write-offs, gain/loss on assets sold, etc. In
particular, the Company is unable to predict with reasonable
certainty the amount of the change in the provision for credit
losses in future periods, which is often a significant reconciling
adjustment.
ADDITIONAL INFORMATION
Additional information regarding the Company can be found in its
Fourth Quarter 2023 Financial Supplemental posted under “Financial
Info” in the Investors section of Omega’s website. The information
contained on, or that may be accessed through, Omega’s website,
including the information contained in the aforementioned
supplemental, is not incorporated by any reference into, and is not
part of, this document.
CONFERENCE CALL
The Company will be conducting a conference call on Thursday,
February 8, 2024, at 10 a.m. Eastern time to review the Company’s
2023 fourth quarter results and current developments. Analysts and
investors within the U.S. interested in participating are invited
to call (877) 407-9124. The international toll-free dial-in number
is (201) 689-8584. Ask the operator to be connected to the “Omega
Healthcare’s Fourth Quarter 2023 Earnings Call.”
To listen to the conference call via webcast, log on to
www.omegahealthcare.com and click the “Omega Healthcare
Investors, Inc. 4Q Earnings Call” hyper-link on the “Investors”
page of Omega’s website. Webcast replays of the call will be
available on Omega’s website for a minimum of two weeks following
the call. Additionally, a copy of the earnings release will be
available in the “Financial Info” section and “SEC Filings” section
on the “Investors” page of Omega’s website.
Omega is a REIT 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 U.S., as well as
in the U.K.
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 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) additional
regulatory and other changes in the healthcare sector, including
federal minimum staffing requirements for SNFs that may further
exacerbate labor and occupancy challenges for Omega’s operators;
(iv) 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; (v) 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; (vi) the
availability and cost of capital to Omega; (vii) changes in Omega’s
credit ratings and the ratings of its debt securities; (viii)
competition in the financing of healthcare facilities; (ix)
competition in the long-term healthcare industry and shifts in the
perception of various types of long-term care facilities, including
SNFs and ALFs; (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.
OMEGA HEALTHCARE INVESTORS,
INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except per share
amounts)
December 31,
December 31,
2023
2022
(Unaudited)
ASSETS
Real estate assets
Buildings and improvements
$
6,863,177
$
7,347,853
Land
866,866
923,605
Furniture and equipment
466,291
499,902
Construction in progress
138,410
88,904
Total real estate assets
8,334,744
8,860,264
Less accumulated depreciation
(2,458,809
)
(2,322,773
)
Real estate assets – net
5,875,935
6,537,491
Investments in direct financing leases –
net
8,716
8,503
Real estate loans receivable – net
1,212,162
1,042,731
Investments in unconsolidated joint
ventures
188,409
178,920
Assets held for sale
93,707
9,456
Total real estate investments
7,378,929
7,777,101
Non-real estate loans receivable – net
275,615
225,281
Total investments
7,654,544
8,002,382
Cash and cash equivalents
442,810
297,103
Restricted cash
1,920
3,541
Contractual receivables – net
11,888
8,228
Other receivables and lease
inducements
214,657
177,798
Goodwill
643,897
643,151
Other assets
147,686
272,960
Total assets
$
9,117,402
$
9,405,163
LIABILITIES AND EQUITY
Revolving credit facility
$
20,397
$
19,246
Secured borrowings
61,963
366,596
Senior notes and other unsecured
borrowings – net
4,984,956
4,900,992
Accrued expenses and other liabilities
287,795
315,047
Total liabilities
5,355,111
5,601,881
Preferred stock $1.00 par value authorized
– 20,000 shares, issued and outstanding – none
—
—
Common stock $.10 par value authorized –
350,000 shares, issued and outstanding – 245,282 shares as of
December 31, 2023 and 234,252 shares as of December 31, 2022
24,528
23,425
Additional paid-in capital
6,671,198
6,314,203
Cumulative net earnings
3,680,581
3,438,401
Cumulative dividends paid
(6,831,061
)
(6,186,986
)
Accumulated other comprehensive income
29,338
20,325
Total stockholders’ equity
3,574,584
3,609,368
Noncontrolling interest
187,707
193,914
Total equity
3,762,291
3,803,282
Total liabilities and equity
$
9,117,402
$
9,405,163
OMEGA HEALTHCARE INVESTORS,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
Unaudited
(in thousands, except per share
amounts)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Revenues
Rental income
$
203,998
$
110,149
$
810,017
$
734,236
Real estate tax and ground lease
income
3,256
4,159
15,363
15,972
Income from direct financing leases
252
255
1,014
1,023
Real estate loans interest income
25,492
24,955
97,766
110,322
Non-real estate loans interest income
6,121
5,103
22,122
13,597
Miscellaneous income
200
228
3,458
3,094
Total revenues
239,319
144,849
949,740
878,244
Expenses
Depreciation and amortization
75,674
83,739
319,682
332,407
General and administrative
9,273
8,840
44,572
40,626
Real estate tax and ground lease
expense
3,709
4,373
16,889
16,969
Stock-based compensation expense
8,762
6,787
35,068
27,302
Acquisition, merger and transition related
costs
4,158
36,348
5,341
42,006
Impairment on real estate properties
3,951
17,230
91,943
38,451
Provision for credit losses
32,913
64,296
44,556
68,663
Interest expense
55,724
55,238
221,832
220,296
Interest – amortization of deferred
financing costs
3,705
3,251
13,697
12,948
Total expenses
197,869
280,102
793,580
799,668
Other income (expense)
Other income (expense) – net
11,146
3,041
20,297
(1,997
)
Loss on debt extinguishment
(486
)
—
(492
)
(389
)
Gain on assets sold – net
9,712
180,205
79,668
359,951
Total other income
20,372
183,246
99,473
357,565
Income before income tax expense and
(loss) income from unconsolidated joint ventures
61,822
47,993
255,633
436,141
Income tax expense
(4,163
)
(1,026
)
(6,255
)
(4,561
)
(Loss) income from unconsolidated joint
ventures
(1,137
)
(261
)
(582
)
7,261
Net income
56,522
46,706
248,796
438,841
Net income attributable to noncontrolling
interest
(1,521
)
(1,127
)
(6,616
)
(11,914
)
Net income available to common
stockholders
$
55,001
$
45,579
$
242,180
$
426,927
Earnings per common share available to
common stockholders:
Basic:
Net income available to common
stockholders
$
0.22
$
0.19
$
1.01
$
1.81
Diluted:
Net income available to common
stockholders
$
0.22
$
0.19
$
1.00
$
1.80
Dividends declared per common share
$
0.67
$
0.67
$
2.68
$
2.68
OMEGA HEALTHCARE INVESTORS,
INC.
Nareit FFO, Adjusted FFO and
FAD Reconciliation
Unaudited
(in thousands, except per share
amounts)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Net income (1)
$
56,522
$
46,706
$
248,796
$
438,841
Deduct gain from real estate
dispositions
(9,712
)
(180,205
)
(79,668
)
(359,951
)
Deduct gain from real estate dispositions
of unconsolidated joint ventures
—
—
—
(93
)
Sub-total
46,810
(133,499
)
169,128
78,797
Elimination of non-cash items included in
net income:
Depreciation and amortization
75,674
83,739
319,682
332,407
Depreciation - unconsolidated joint
ventures
2,482
2,623
10,423
10,881
Add back provision for impairments on real
estate properties
3,951
17,230
91,943
38,451
Nareit funds from operations (“Nareit
FFO”)
$
128,917
$
(29,907
)
$
591,176
$
460,536
Weighted-average common shares
outstanding, basic
245,751
234,863
240,493
236,256
Restricted stock and PRSUs
3,589
1,378
2,923
1,198
Omega OP Units
7,219
6,752
7,035
6,836
Weighted-average common shares
outstanding, diluted
256,559
242,993
250,451
244,290
Nareit funds from operations available
per share
$
0.50
$
(0.13
)
$
2.36
$
1.89
Adjustments to calculate adjusted funds
from operations
Nareit FFO
$
128,917
$
(29,907
)
$
591,176
$
460,536
Add back:
Stock-based compensation expense
8,762
6,787
35,068
27,302
Uncollectible accounts receivable (2)
—
96,133
20,633
124,758
Non-cash provision for credit losses
34,082
67,027
51,966
77,109
Acquisition, merger and transition related
costs
4,158
36,348
5,341
42,006
Non-recurring expense
384
722
2,277
3,722
Loss on debt extinguishment
486
—
492
389
Non-recognized cash interest
207
—
6,378
—
Deduct:
Non-recurring revenue
(4,587
)
(2,372
)
(17,368
)
(4,934
)
Add back (deduct) unconsolidated JV
related non-recurring loss (revenue)
1,054
1,940
2,710
(645
)
Adjusted funds from operations (“AFFO”)
(1)(3)
$
173,463
$
176,678
$
698,673
$
730,243
Adjustments to calculate funds
available for distribution
Non-cash interest expense
$
2,676
$
2,222
$
9,581
$
8,832
Capitalized interest
(1,324
)
(859
)
(4,340
)
(3,158
)
Non-cash revenue
(11,403
)
(6,979
)
(47,011
)
(58,269
)
Funds available for distribution
(“FAD”) (1)(3)
$
163,412
$
171,062
$
656,903
$
677,648
(1)
The three months and year ended December
31, 2023 includes the application of $6.2 million and $17.6
million, respectively, of security deposits (letters of credit and
cash deposits) in revenue. The three months and year ended December
31, 2022 includes the application of $1.6 million and $11.0
million, respectively, of security deposits (letters of credit and
cash deposits) in revenue.
(2)
The year ended December 31, 2023 includes
a $12.5 million lease inducement write-off recorded as a reduction
to rental income related to the Maplewood option termination fee.
All other amounts represent straight-line accounts receivable
write-offs also recorded as a reduction to rental income.
(3)
Adjusted funds from operations per share
and funds available for distribution per share can be calculated
using weighted-average common shares outstanding, diluted, as shown
above.
Nareit Funds From Operations (“Nareit FFO”), Adjusted FFO and
Funds Available for Distribution (“FAD”) are non-GAAP financial
measures. As used in this press release, GAAP refers to generally
accepted accounting principles in the United States of America. 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. Revenue
recognized based on the application of security deposits and
letters of credit or based on the ability to offset against other
financial instruments is included within Nareit FFO. 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, merger and transition related costs,
write-off of straight-line accounts receivable, recoveries and
provisions for credit losses (excluding certain cash recoveries on
impaired loans), cash interest received but not included in
revenue, non-recognized cash interest, severance, legal reserve
expenses, 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. The Company offers these measures to assist the
users of its financial statements in analyzing its operating
performance. These non-GAAP measures are not measures of financial
performance under GAAP and should not be considered as measures of
liquidity or cash flow, 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240207384980/en/
Matthew Gourmand, SVP, Corporate Strategy & Investor
Relations or Bob Stephenson, CFO at (410) 427-1700
Omega Healthcare Investors (NYSE:OHI)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Omega Healthcare Investors (NYSE:OHI)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024