Omega Reports Fourth Quarter 2021 Results and Recent Developments
Omega Healthcare Investors (NYSE: OHI) reported a net income of $34.2 million for Q4 2021, translating to $0.14 per share, down from $63.1 million a year ago. Total revenues fell to $249.9 million, down from $263.8 million. Notably, Nareit FFO was $123.5 million, or $0.50 per share, with a decline attributed to operator rent non-payment due to the pandemic's toll on the industry. Despite challenges, the company announced a $500 million stock buyback program and a $0.67 dividend per share. The impact of the Omicron variant on occupancy levels remains a concern for future earnings.
- Authorized a $500 million stock repurchase program.
- Declared a quarterly cash dividend of $0.67 per share.
- Reported a year-over-year increase in total net income for 2021 to $428.3 million.
- Q4 2021 net income decreased to $34.2 million from $63.1 million in Q4 2020.
- Nareit FFO decreased to $123.5 million in Q4 2021 from $173.3 million in Q4 2020.
- Portfolio occupancy growth stalled amid labor market challenges and the Omicron variant.
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. For more information regarding these non-GAAP measures, see the “Non-GAAP Financial Measures” on the Company’s website at www.omegahealthcare.com.
CEO COMMENTS
2022 RECENT DEVELOPMENTS AND 2021 QUARTERLY HIGHLIGHTS
In Q1 2022, the Company…
-
completed
$16 million -
authorized a
$500 million -
declared a
$0.67 - was included in the 2022 Bloomberg Gender-Equality Index.
In Q4 2021, the Company…
-
invested
$20 million -
sold 3 facilities for
$8 million $1 million -
paid a
$0.67
In Q3 2021, the Company…
-
completed
$66 million -
invested
$96 million -
completed
$10 million -
sold 15 facilities for
$110 million $56 million -
paid a
$0.67
In Q2 2021, the Company…
-
collected over
99% of contractual rent and mortgage payments. -
entered into a new
$1.45 billion -
entered into a new
$50 million -
implemented a new
$1.0 billion -
completed
$6 million -
sold six facilities for
$13 million $4 million -
invested
$31 million -
paid a
$0.67
In Q1 2021, the Company…
-
collected over
99% of contractual rent and mortgage payments. -
issued
$700 million 3.250% Senior Notes due 2033. -
redeemed
$350 million 4.375% Senior Notes due 2023. -
completed
$595 million -
sold 24 facilities for
$188 million $100 million -
invested
$17 million -
announced the opening of Inspīr Carnegie Hill (Upper
East Side ,Manhattan ) to residents. -
paid a
$0.67 - was included in the 2021 Bloomberg Gender-Equality Index.
NET INCOME
The Company reported net income of
For the year ended
The year-over-year increase in net income for the year ended
Net income for the three months and year ended
FOURTH QUARTER 2021 RESULTS
Revenues – Revenues for the quarter ended
Expenses – Expenses for the quarter ended
Other Income and Expense – Other income for the quarter ended
Funds From Operations – Nareit FFO for the quarter ended
The
The
Adjusted FFO was
2021 ANNUAL RESULTS
Revenues – Revenues for the year ended
Expenses – Expenses for the year ended
Other Income and Expense – Other income for the year ended
Funds From Operations – Nareit FFO for the year ended
The
The
Adjusted FFO was
FINANCING ACTIVITIES
ATM Program and Dividend Reinvestment and Common Stock Purchase Plan – During the quarter ended
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At-the-Market Program for 2021 |
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(in thousands, except price per share) |
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Q1 |
|
Q2 |
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Q3 |
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Q4 |
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Total |
|||||
Number of shares |
|
1,617 |
|
|
2,497 |
|
|
37 |
|
|
- |
|
|
|
4,151 |
Average price per share |
$ |
37.95 |
|
$ |
37.00 |
|
$ |
36.53 |
|
$ |
- |
|
|
$ |
37.37 |
Gross proceeds |
$ |
61,355 |
|
$ |
92,402 |
|
$ |
1,354 |
|
$ |
- |
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$ |
155,111 |
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Dividend Reinvestment and Common Stock Purchase Plan for 2021 |
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(in thousands, except price per share) |
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Q1 |
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Q2 |
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Q3 |
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Q4 |
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Total |
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Number of shares |
|
416 |
|
|
1,640 |
|
|
1,279 |
|
|
80 |
|
|
|
3,415 |
Average price per share |
$ |
37.23 |
|
$ |
37.69 |
|
$ |
36.88 |
|
$ |
28.30 |
|
|
$ |
37.11 |
Gross proceeds |
$ |
15,491 |
|
$ |
61,795 |
|
$ |
47,178 |
|
$ |
2,258 |
|
|
$ |
126,722 |
2022 RECENT AND 2021 FOURTH QUARTER PORTFOLIO ACTIVITY
Q1 2022 Portfolio Activity:
Operator Collectability – In
Q4 2021 Portfolio Activity:
Guardian –
Asset Sales and Impairments:
Impairments and Assets Held for Sale – During the fourth quarter of 2021, the Company recorded a
As of
BALANCE SHEET AND LIQUIDITY
As of
DIVIDENDS
On
TAX TREATMENT FOR 2021 DIVIDENDS
On
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Dividend Payment Date |
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% Taxable as Ordinary Income |
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% Taxable as Return of Capital |
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% Taxable as Capital Gain |
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ESG
On
2022 GUIDANCE
Given the continued 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, the Company will not be providing 2022 earnings guidance.
CONFERENCE CALL
The Company will be conducting a conference call on
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 under “Upcoming Events” in the Investor Relations section on Omega’s website homepage. Webcast replays of the call will be available on Omega’s website for approximately two weeks following the call. Additionally, a copy of the earnings release will be available in the “Featured Documents” and “Press Releases” sections of Omega’s website.
* * * * * *
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
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 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 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 the COVID-19 pandemic on our business and the business of our operators, including without limitation, the extent and duration of the COVID-19 pandemic, increased costs, staffing shortages and decreased occupancy levels experienced by operators of SNFs and assisted living facilities (“ALFs”) in connection therewith, the ability of operators to comply with infection control and vaccine protocols, the long-term impact of vaccinations on facility infection rates, 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 Omega; (vi) changes in Omega’s credit ratings and the ratings of its debt securities; (vii) competition in the financing of healthcare facilities; (viii) competition in the long-term healthcare industry and shifts in the perception of various types of long-term care facilities, including SNFs and ALFs; (ix) additional regulatory and other changes in the healthcare sector; (x) changes in the financial position of Omega’s operators; (xi) the effect of economic and market conditions generally, and particularly in the healthcare industry; (xii) changes in interest rates; (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
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.
CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) |
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2021 |
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2020 |
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(Unaudited) |
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ASSETS |
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Real estate assets |
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Buildings and improvements |
|
$ |
7,448,126 |
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$ |
7,269,596 |
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Land |
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|
916,328 |
|
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|
883,765 |
|
Furniture and equipment |
|
|
511,271 |
|
|
|
518,664 |
|
Construction in progress |
|
|
74,062 |
|
|
|
30,129 |
|
Total real estate assets |
|
|
8,949,787 |
|
|
|
8,702,154 |
|
Less accumulated depreciation |
|
|
(2,160,696 |
) |
|
|
(1,996,914 |
) |
Real estate assets – net |
|
|
6,789,091 |
|
|
|
6,705,240 |
|
Investments in direct financing leases – net |
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|
10,873 |
|
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|
10,764 |
|
Mortgage notes receivable – net |
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|
835,086 |
|
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|
885,313 |
|
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|
7,635,050 |
|
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|
7,601,317 |
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Other investments – net |
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|
469,884 |
|
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|
467,442 |
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Investments in unconsolidated joint ventures |
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|
194,687 |
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|
200,638 |
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Assets held for sale |
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261,151 |
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|
81,452 |
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Total investments |
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8,560,772 |
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|
8,350,849 |
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Cash and cash equivalents |
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|
20,534 |
|
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|
163,535 |
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Restricted cash |
|
|
3,877 |
|
|
|
4,023 |
|
Contractual receivables – net |
|
|
11,259 |
|
|
|
10,408 |
|
Other receivables and lease inducements |
|
|
251,815 |
|
|
|
234,666 |
|
|
|
|
651,417 |
|
|
|
651,737 |
|
Other assets |
|
|
138,804 |
|
|
|
82,231 |
|
Total assets |
|
$ |
9,638,478 |
|
|
$ |
9,497,449 |
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LIABILITIES AND EQUITY |
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|
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Revolving credit facility |
|
$ |
— |
|
|
$ |
101,158 |
|
Secured borrowings |
|
|
362,081 |
|
|
|
369,524 |
|
Senior notes and other unsecured borrowings – net |
|
|
4,891,455 |
|
|
|
4,698,570 |
|
Accrued expenses and other liabilities |
|
|
268,516 |
|
|
|
280,824 |
|
Deferred income taxes |
|
|
8,200 |
|
|
|
10,766 |
|
Total liabilities |
|
|
5,530,252 |
|
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|
5,460,842 |
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Equity: |
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Preferred stock |
|
|
— |
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|
— |
|
Common stock |
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|
23,906 |
|
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|
23,119 |
|
Additional paid-in capital |
|
|
6,427,566 |
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|
6,152,887 |
|
Cumulative net earnings |
|
|
3,011,474 |
|
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|
2,594,735 |
|
Cumulative dividends paid |
|
|
(5,553,908 |
) |
|
|
(4,916,097 |
) |
Accumulated other comprehensive loss |
|
|
(2,200 |
) |
|
|
(12,768 |
) |
Total stockholders’ equity |
|
|
3,906,838 |
|
|
|
3,841,876 |
|
Noncontrolling interest |
|
|
201,388 |
|
|
|
194,731 |
|
Total equity |
|
|
4,108,226 |
|
|
|
4,036,607 |
|
Total liabilities and equity |
|
$ |
9,638,478 |
|
|
$ |
9,497,449 |
|
CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited (in thousands, except per share amounts) |
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Three Months Ended |
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Year Ended |
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2021 |
|
2020 |
|
|
2021 |
|
2020 |
||||||||
Revenues |
|
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|
||||
Rental income |
|
$ |
214,314 |
|
|
$ |
224,080 |
|
|
|
$ |
910,722 |
|
|
$ |
740,815 |
|
Real estate tax and ground lease income |
|
|
3,483 |
|
|
|
3,089 |
|
|
|
|
12,955 |
|
|
|
12,612 |
|
Income from direct financing leases |
|
|
257 |
|
|
|
258 |
|
|
|
|
1,029 |
|
|
|
1,033 |
|
Mortgage interest income |
|
|
20,968 |
|
|
|
24,044 |
|
|
|
|
91,661 |
|
|
|
89,422 |
|
Other investment income |
|
|
10,476 |
|
|
|
11,994 |
|
|
|
|
44,721 |
|
|
|
44,864 |
|
Miscellaneous income |
|
|
451 |
|
|
|
320 |
|
|
|
|
1,721 |
|
|
|
3,635 |
|
Total revenues |
|
|
249,949 |
|
|
|
263,785 |
|
|
|
|
1,062,809 |
|
|
|
892,381 |
|
|
|
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|
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|
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|
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|
||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
85,269 |
|
|
|
82,623 |
|
|
|
|
342,014 |
|
|
|
329,924 |
|
General and administrative |
|
|
13,036 |
|
|
|
10,381 |
|
|
|
|
41,757 |
|
|
|
39,619 |
|
Real estate tax and ground lease expense |
|
|
3,624 |
|
|
|
3,230 |
|
|
|
|
13,716 |
|
|
|
13,764 |
|
Stock-based compensation expense |
|
|
4,502 |
|
|
|
4,442 |
|
|
|
|
21,415 |
|
|
|
18,822 |
|
Acquisition, merger and transition related costs |
|
|
— |
|
|
|
1,956 |
|
|
|
|
1,814 |
|
|
|
2,018 |
|
Impairment on real estate properties |
|
|
2,205 |
|
|
|
28,762 |
|
|
|
|
44,658 |
|
|
|
72,494 |
|
Recovery on direct financing leases |
|
|
— |
|
|
|
(2,003 |
) |
|
|
|
(717 |
) |
|
|
(3,079 |
) |
Provision for credit losses |
|
|
49,710 |
|
|
|
4,420 |
|
|
|
|
77,733 |
|
|
|
37,997 |
|
Interest expense |
|
|
55,062 |
|
|
|
55,981 |
|
|
|
|
222,316 |
|
|
|
213,313 |
|
Interest – amortization of deferred financing costs |
|
|
3,163 |
|
|
|
2,692 |
|
|
|
|
12,288 |
|
|
|
10,076 |
|
Total expenses |
|
|
216,571 |
|
|
|
192,484 |
|
|
|
|
776,994 |
|
|
|
734,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other expense – net |
|
|
(632 |
) |
|
|
(282 |
) |
|
|
|
(1,298 |
) |
|
|
(957 |
) |
Loss on debt extinguishment |
|
|
(56 |
) |
|
|
(12,444 |
) |
|
|
|
(30,763 |
) |
|
|
(13,340 |
) |
Realized gain on foreign exchange |
|
|
47 |
|
|
|
128 |
|
|
|
|
717 |
|
|
|
78 |
|
Gain on assets sold – net |
|
|
975 |
|
|
|
5,181 |
|
|
|
|
161,609 |
|
|
|
19,113 |
|
Total other income (expense) |
|
|
334 |
|
|
|
(7,417 |
) |
|
|
|
130,265 |
|
|
|
4,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income before income tax expense and income from unconsolidated joint ventures |
|
|
33,712 |
|
|
|
63,884 |
|
|
|
|
416,080 |
|
|
|
162,327 |
|
Income tax expense |
|
|
(967 |
) |
|
|
(2,299 |
) |
|
|
|
(3,840 |
) |
|
|
(4,925 |
) |
Income from unconsolidated joint ventures |
|
|
1,493 |
|
|
|
1,489 |
|
|
|
|
16,062 |
|
|
|
6,143 |
|
Net income |
|
|
34,238 |
|
|
|
63,074 |
|
|
|
|
428,302 |
|
|
|
163,545 |
|
Net income attributable to noncontrolling interest |
|
|
(947 |
) |
|
|
(1,678 |
) |
|
|
|
(11,563 |
) |
|
|
(4,218 |
) |
Net income available to common stockholders |
|
$ |
33,291 |
|
|
$ |
61,396 |
|
|
|
$ |
416,739 |
|
|
$ |
159,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per common share available to common stockholders: |
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|
|
|
|
|
|
|
|
|
|
||||
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income available to common stockholders |
|
$ |
0.14 |
|
|
$ |
0.27 |
|
|
|
$ |
1.76 |
|
|
$ |
0.70 |
|
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
0.14 |
|
|
$ |
0.27 |
|
|
|
$ |
1.75 |
|
|
$ |
0.70 |
|
Dividends declared per common share |
|
$ |
0.67 |
|
|
$ |
0.67 |
|
|
|
$ |
2.68 |
|
|
$ |
2.68 |
|
FUNDS FROM OPERATIONS Unaudited (in thousands, except per share amounts) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (1)(2) |
|
$ |
34,238 |
|
|
$ |
63,074 |
|
|
$ |
428,302 |
|
|
$ |
163,545 |
|
Deduct gain from real estate dispositions |
|
|
(975 |
) |
|
|
(5,181 |
) |
|
|
(161,609 |
) |
|
|
(19,113 |
) |
(Deduct gain) add back loss from real estate dispositions of unconsolidated joint ventures |
|
|
(135 |
) |
|
|
544 |
|
|
|
(14,880 |
) |
|
|
(5,894 |
) |
Sub-total |
|
|
33,128 |
|
|
|
58,437 |
|
|
|
251,813 |
|
|
|
138,538 |
|
Elimination of non-cash items included in net income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
85,269 |
|
|
|
82,623 |
|
|
|
342,014 |
|
|
|
329,924 |
|
Depreciation - unconsolidated joint ventures |
|
|
2,906 |
|
|
|
3,439 |
|
|
|
12,285 |
|
|
|
14,000 |
|
Add back provision for impairments on real estate properties |
|
|
2,205 |
|
|
|
28,762 |
|
|
|
44,658 |
|
|
|
72,494 |
|
Add back provision for impairments on real estate properties of unconsolidated joint ventures |
|
|
— |
|
|
|
— |
|
|
|
4,430 |
|
|
|
— |
|
Add back unrealized loss on warrants |
|
|
— |
|
|
|
61 |
|
|
|
43 |
|
|
|
988 |
|
Nareit funds from operations (“Nareit FFO”) |
|
$ |
123,508 |
|
|
$ |
173,322 |
|
|
$ |
655,243 |
|
|
$ |
555,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding, basic |
|
|
239,649 |
|
|
|
228,785 |
|
|
|
236,933 |
|
|
|
227,741 |
|
Restricted stock and PRSUs |
|
|
430 |
|
|
|
1,761 |
|
|
|
785 |
|
|
|
1,239 |
|
Omega OP Units |
|
|
6,837 |
|
|
|
6,263 |
|
|
|
6,620 |
|
|
|
6,124 |
|
Weighted-average common shares outstanding, diluted |
|
|
246,916 |
|
|
|
236,809 |
|
|
|
244,338 |
|
|
|
235,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Nareit funds from operations available per share |
|
$ |
0.50 |
|
|
$ |
0.73 |
|
|
$ |
2.68 |
|
|
$ |
2.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments to calculate adjusted funds from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Nareit FFO |
|
$ |
123,508 |
|
|
$ |
173,322 |
|
|
$ |
655,243 |
|
|
$ |
555,944 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Uncollectible accounts receivable (3) |
|
|
16,449 |
|
|
|
2,107 |
|
|
|
38,806 |
|
|
|
146,608 |
|
Non-cash provision for credit losses |
|
|
50,582 |
|
|
|
4,420 |
|
|
|
78,605 |
|
|
|
37,997 |
|
Stock-based compensation expense |
|
|
4,502 |
|
|
|
4,442 |
|
|
|
21,415 |
|
|
|
18,822 |
|
Loss on debt extinguishment |
|
|
56 |
|
|
|
12,444 |
|
|
|
30,763 |
|
|
|
13,340 |
|
Acquisition, merger and transition related costs |
|
|
— |
|
|
|
1,956 |
|
|
|
1,814 |
|
|
|
2,018 |
|
Severance |
|
|
2,721 |
|
|
|
— |
|
|
|
2,721 |
|
|
|
853 |
|
Deduct: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-recurring revenue |
|
|
(7,436 |
) |
|
|
(4,260 |
) |
|
|
(19,350 |
) |
|
|
(16,201 |
) |
Recovery on direct financing leases |
|
|
— |
|
|
|
(2,003 |
) |
|
|
(717 |
) |
|
|
(3,079 |
) |
Add back unconsolidated joint venture related: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Uncollectible accounts receivable (3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,584 |
|
Loss on debt extinguishment |
|
|
— |
|
|
|
68 |
|
|
|
457 |
|
|
|
2,493 |
|
Adjusted funds from operations (“AFFO”) (1)(2) |
|
$ |
190,382 |
|
|
$ |
192,496 |
|
|
$ |
809,757 |
|
|
$ |
760,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments to calculate funds available for distribution: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-cash interest expense |
|
$ |
2,114 |
|
|
$ |
2,670 |
|
|
$ |
8,266 |
|
|
$ |
9,986 |
|
Capitalized interest |
|
|
(720 |
) |
|
|
(321 |
) |
|
|
(1,524 |
) |
|
|
(10,029 |
) |
Non-cash revenue |
|
|
(13,000 |
) |
|
|
(11,923 |
) |
|
|
(48,751 |
) |
|
|
(40,709 |
) |
Funds available for distribution (“FAD”) (1)(2) |
|
$ |
178,776 |
|
|
$ |
182,922 |
|
|
$ |
767,748 |
|
|
$ |
719,627 |
|
| _______________ | |
(1) |
The three months and year ended |
(2) |
The three months and year ended |
(3) |
Straight-line accounts receivable write-off recorded as a reduction to rental income. |
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 Company calculates and reports Nareit FFO in accordance with the definition and interpretive guidelines issued by the
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), severance, 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 |
|||||||
|
|
|
Total |
|
|
# of |
# of |
||
Balance Sheet Data |
|
Total # of |
Investment |
% of |
|
Operating |
Operating |
||
|
|
Facilities |
( |
Investment |
|
Facilities (2) |
Beds (2) |
||
Real estate investments (1) |
|
856 |
$ |
8,960,660 |
91 |
% |
|
880 |
89,216 |
Mortgage notes receivable |
|
63 |
|
835,086 |
9 |
% |
|
59 |
6,487 |
|
|
919 |
$ |
9,795,746 |
100 |
% |
|
939 |
95,703 |
Assets held for sale |
|
41 |
|
261,151 |
|
|
|
|
|
Total investments |
|
960 |
$ |
10,056,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|||||||||
|
|
|
Total |
|
|
|
# of |
# of |
Investment |
||
Investment Data |
|
Total # of |
Investment |
% of |
|
Operating |
Operating |
per Bed |
|||
|
|
Facilities |
( |
Investment |
|
Facilities (2) |
Beds (2) |
( |
|||
SNFs/Transitional care (1) |
|
764 |
$ |
7,527,240 |
77 |
% |
|
784 |
84,623 |
$ |
89 |
Senior housing (3) |
|
155 |
|
2,268,506 |
23 |
% |
|
155 |
11,080 |
$ |
205 |
|
|
919 |
$ |
9,795,746 |
100 |
% |
|
939 |
95,703 |
$ |
102 |
Assets held for sale |
|
41 |
|
261,151 |
|
|
|
|
|
|
|
Total investments |
|
960 |
$ |
10,056,897 |
|
|
|
|
|
|
|
| _______________ | |
(1) |
Includes one facility under a direct financing lease totaling |
(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 by Investment Type (000's) |
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
|
|
|
||||||||
Rental property |
|
$ |
214,571 |
|
85.8 |
% |
|
$ |
911,751 |
|
85.8 |
% |
Real estate tax and ground lease income |
|
|
3,483 |
|
1.4 |
% |
|
|
12,955 |
|
1.2 |
% |
Mortgage notes |
|
|
20,968 |
|
8.4 |
% |
|
|
91,661 |
|
8.6 |
% |
Other investment income and miscellaneous income - net |
|
|
10,927 |
|
4.4 |
% |
|
|
46,442 |
|
4.4 |
% |
|
|
$ |
249,949 |
|
100 |
% |
|
$ |
1,062,809 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Facility Type (000's) |
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
|
|
|
||||||||
SNFs/Transitional care |
|
$ |
187,054 |
|
74.8 |
% |
|
$ |
815,002 |
|
76.7 |
% |
Senior housing |
|
|
48,485 |
|
19.4 |
% |
|
|
188,410 |
|
17.7 |
% |
Real estate tax and ground lease income |
|
|
3,483 |
|
1.4 |
% |
|
|
12,955 |
|
1.2 |
% |
Other |
|
|
10,927 |
|
4.4 |
% |
|
|
46,442 |
|
4.4 |
% |
|
|
$ |
249,949 |
|
100 |
% |
|
$ |
1,062,809 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
As of |
2021 Q4 |
% of Total |
||||
|
|
|
Annualized |
Annualized |
||||
Rent/Interest Concentration by Operator ( |
|
# of |
Contractual |
Contractual |
||||
|
|
Facilities (1) |
Rent/Interest (1)(2) |
Rent/Interest |
||||
Ciena |
|
62 |
|
$ |
97,432 |
|
10.0 |
% |
Consulate |
|
85 |
|
|
95,632 |
|
9.8 |
% |
Maplewood |
|
17 |
|
|
66,751 |
|
6.8 |
% |
|
|
43 |
|
|
64,403 |
|
6.6 |
% |
Genesis |
|
44 |
|
|
56,839 |
|
5.8 |
% |
Agemo |
|
51 |
|
|
53,307 |
|
5.5 |
% |
Saber |
|
50 |
|
|
53,053 |
|
5.4 |
% |
Brookdale |
|
24 |
|
|
44,781 |
|
4.6 |
% |
HHC |
|
44 |
|
|
38,139 |
|
3.9 |
% |
Guardian |
|
35 |
|
|
37,174 |
|
3.8 |
% |
Remaining Operators (3) |
|
460 |
|
|
369,975 |
|
37.8 |
% |
|
|
915 |
|
$ |
977,486 |
|
100.0 |
% |
| ______________ | |
(1) |
Excludes facilities which are non-operating, closed and/or not currently providing patient services. |
(2) |
Includes mezzanine and term loan interest. |
(3) |
Excludes 23 open facilities and 1 closed facility related to the |
|
|
|
|
|
|
|
|
|
|
|
As of |
||||||
Geographic Concentration by Investment ( |
|
Total # of |
Total |
% of Total |
||||
|
|
Facilities (1) |
Investment (1)(2) |
Investment |
||||
|
|
115 |
|
$ |
1,320,017 |
|
13.4 |
% |
|
|
114 |
|
|
995,386 |
|
10.1 |
% |
|
|
46 |
|
|
648,738 |
|
6.6 |
% |
|
|
70 |
|
|
643,640 |
|
6.5 |
% |
|
|
52 |
|
|
577,267 |
|
5.9 |
% |
|
|
46 |
|
|
576,809 |
|
5.8 |
% |
|
|
54 |
|
|
554,741 |
|
5.6 |
% |
|
|
28 |
|
|
422,024 |
|
4.3 |
% |
|
|
1 |
|
|
336,069 |
|
3.4 |
% |
|
|
39 |
|
|
327,784 |
|
3.3 |
% |
Remaining 32 states |
|
295 |
|
|
3,014,923 |
|
30.6 |
% |
|
|
860 |
|
|
9,417,398 |
|
95.5 |
% |
|
|
59 |
|
|
447,574 |
|
4.5 |
% |
|
|
919 |
|
$ |
9,864,972 |
|
100.0 |
% |
| _______________ | |
(1) |
Excludes 41 facilities with total investment of approximately |
(2) |
Excludes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
||||||||||
Operating Lease Expirations & Loan Maturities ( |
|
Lease (Rent) |
Interest Income |
Lease (Rent) and Interest Income |
% of Total Annualized Contractual Rent/Interest |
|||||||
2022 |
|
$ |
— |
|
$ |
35 |
|
$ |
35 |
|
0.0 |
% |
2023 |
|
|
3,787 |
|
|
526 |
|
|
4,313 |
|
0.4 |
% |
2024 |
|
|
4,130 |
|
|
7,388 |
|
|
11,518 |
|
1.2 |
% |
2025 |
|
|
5,109 |
|
|
5,265 |
|
|
10,374 |
|
1.1 |
% |
2026 |
|
|
41,178 |
|
|
— |
|
|
41,178 |
|
4.2 |
% |
| _______________ | |
(1) |
Based on annualized 4th quarter 2021 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. We have not independently verified this information, and we are providing this data for informational purposes only.
|
|
|
|
|
|
|
|
Operator Revenue Mix (1) |
|
|
|
Medicare / |
Private / |
||
|
|
Medicaid |
Insurance |
Other |
|||
Three-months ended |
|
53.1 |
% |
33.3 |
% |
13.6 |
% |
Three-months ended |
|
53.2 |
% |
33.5 |
% |
13.3 |
% |
Three-months ended |
|
50.6 |
% |
38.2 |
% |
11.2 |
% |
Three-months ended |
|
51.0 |
% |
38.1 |
% |
10.9 |
% |
Three-months ended |
|
51.6 |
% |
37.2 |
% |
11.2 |
% |
| _______________ | |
| (1) | Excludes all facilities considered non-core and does not include federal stimulus revenue. |
|
|
|
|
|
|
|
|
|
|
Coverage Data |
|
|
|
|
Before |
After |
|
|
|
Occupancy (2) |
Management |
Management |
|
Operator Census and Coverage (1) |
|
|
Fees (3) |
Fees (4) |
|
Twelve-months ended |
|
74.2 |
% |
1.52x |
1.18x |
Twelve-months ended |
|
74.2 |
% |
1.63x |
1.28x |
Twelve-months ended |
|
75.3 |
% |
1.80x |
1.44x |
Twelve-months ended |
|
78.1 |
% |
1.86x |
1.50x |
Twelve-months ended |
|
80.1 |
% |
1.87x |
1.51x |
| _______________ | |
(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 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 |
The following table presents a debt maturity schedule as of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured Debt |
|
|
|
|
|
|||||
Debt Maturities ( |
|
Revolving Credit Facility and OP Term Loan (1) |
Senior Notes (1) |
Secured Debt |
Total Debt Maturities |
|||||||
2022 |
|
$ |
— |
|
$ |
— |
|
$ |
2,275 |
|
$ |
2,275 |
2023 |
|
|
— |
|
|
350,000 |
|
|
— |
|
|
350,000 |
2024 |
|
|
— |
|
|
400,000 |
|
|
— |
|
|
400,000 |
2025 |
|
|
50,000 |
|
|
400,000 |
|
|
— |
|
|
450,000 |
2026 |
|
|
— |
|
|
600,000 |
|
|
— |
|
|
600,000 |
2027 |
|
|
— |
|
|
700,000 |
|
|
— |
|
|
700,000 |
Thereafter |
|
|
— |
|
|
2,450,000 |
|
|
359,806 |
|
|
2,809,806 |
|
|
$ |
50,000 |
|
$ |
4,900,000 |
|
$ |
362,081 |
|
$ |
5,312,081 |
| _______________ | |
(1) |
Excludes issuance and deferred financing costs. |
The following table presents real estate investment activity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
Real Estate Investment Activity ( |
|
|
|
|
||||||||
|
|
$ Amount |
|
% |
|
$ Amount |
|
% |
||||
Real property |
|
$ |
— |
|
— |
% |
|
$ |
604,121 |
|
71.8 |
% |
Construction-in-progress |
|
|
4,133 |
|
20.2 |
% |
|
|
113,180 |
|
13.5 |
% |
Capital expenditures |
|
|
16,351 |
|
79.8 |
% |
|
|
51,138 |
|
6.1 |
% |
Mortgages |
|
|
— |
|
— |
% |
|
|
72,420 |
|
8.6 |
% |
Other |
|
|
— |
|
— |
% |
|
|
— |
|
— |
% |
Total |
|
$ |
20,484 |
|
100.0 |
% |
|
$ |
840,859 |
|
100.0 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220202005880/en/
Matthew Gourmand, SVP, Corporate Strategy & Investor Relations
or
Source:
FAQ
What were Omega Healthcare Investors' Q4 2021 financial results?
How much was Omega Healthcare's Nareit FFO for Q4 2021?
When will Omega Healthcare pay its next dividend?
What challenges did Omega Healthcare face in Q4 2021?
Did Omega Healthcare authorize a stock buyback program?
