Omega Reports Third Quarter 2024 Results and Recent Developments
Omega Healthcare Investors (NYSE: OHI) reported strong Q3 2024 results with net income of $115 million ($0.42 per share), up from $94 million in Q3 2023. The company completed $834 million in new investments year-to-date, including $440 million in Q3. Revenue increased by $34 million to $276 million compared to Q3 2023. The company raised its 2024 AFFO guidance to $2.84-$2.86 per share from previous $2.78-$2.84. Notable Q3 activities include issuing 14 million common shares for $530 million and acquiring the remaining 51% stake in Cindat JV for $100.9 million plus assumed mortgage.
Omega Healthcare Investors (NYSE: OHI) ha riportato risultati solidi per il terzo trimestre del 2024, con un utile netto di $115 milioni ($0,42 per azione), in aumento rispetto ai $94 milioni del terzo trimestre del 2023. La società ha completato $834 milioni di nuovi investimenti dall'inizio dell'anno, di cui $440 milioni nel terzo trimestre. I ricavi sono aumentati di $34 milioni a $276 milioni rispetto al terzo trimestre del 2023. L'azienda ha alzato le previsioni di AFFO per il 2024 a $2,84-$2,86 per azione, rispetto ai precedenti $2,78-$2,84. Tra le attività significative del terzo trimestre vi è stata l'emissione di 14 milioni di azioni comuni per $530 milioni e l'acquisto della restante partecipazione del 51% in Cindat JV per $100,9 milioni più il mutuo assunto.
Omega Healthcare Investors (NYSE: OHI) informó resultados sólidos para el tercer trimestre de 2024, con un ingreso neto de $115 millones ($0.42 por acción), un aumento desde los $94 millones en el tercer trimestre de 2023. La compañía completó $834 millones en nuevas inversiones en lo que va del año, incluyendo $440 millones en el tercer trimestre. Los ingresos aumentaron en $34 millones, alcanzando los $276 millones en comparación con el tercer trimestre de 2023. La empresa elevó su guía de AFFO para 2024 a $2.84-$2.86 por acción, desde los anteriores $2.78-$2.84. Las actividades destacadas del tercer trimestre incluyen la emisión de 14 millones de acciones comunes por $530 millones y la adquisición del 51% restante de Cindat JV por $100.9 millones más la hipoteca asumida.
오메가 헬스케어 인베스터스 (NYSE: OHI)는 2024년 3분기 실적을 발표하며 순이익이 1억 1,500만 달러(주당 0.42 달러)로, 2023년 3분기의 9,400만 달러에서 증가했다고 보고했습니다. 회사는 올해 누적 8억 3,400만 달러의 신규 투자를 완료했으며, 이 중 4억 4,000만 달러가 3분기에 이루어졌습니다. 수익은 3분기 3억 6,600만 달러에 비해 3,400만 달러 증가하여 2억 7,600만 달러에 달했습니다. 회사는 2024년 AFFO 가이던스를 이전의 2.78-2.84달러에서 2.84-2.86달러로 상향 조정했습니다. 3분기의 주요 활동으로는 5억 3천만 달러에 1,400만 주의 보통주를 발행하고, Cindat JV의 나머지 51% 지분을 1억 9,000만 달러 및 인수된 담보 대출로 구입한 것이 포함됩니다.
Omega Healthcare Investors (NYSE: OHI) a annoncé de solides résultats pour le troisième trimestre 2024, avec un bénéfice net de 115 millions de dollars (0,42 dollar par action), en hausse par rapport aux 94 millions de dollars du troisième trimestre 2023. L'entreprise a réalisé 834 millions de dollars de nouveaux investissements depuis le début de l'année, dont 440 millions de dollars au troisième trimestre. Les revenus ont augmenté de 34 millions de dollars pour atteindre 276 millions de dollars par rapport au troisième trimestre 2023. L'entreprise a révisé ses prévisions d'AFFO pour 2024, passant de 2,78-2,84 dollars par action à 2,84-2,86 dollars. Les activités notables du troisième trimestre incluent l'émission de 14 millions d'actions ordinaires pour 530 millions de dollars et l'acquisition des 51% restants de Cindat JV pour 100,9 millions de dollars, plus l'hypothèque assumée.
Omega Healthcare Investors (NYSE: OHI) hat für das dritte Quartal 2024 starke Ergebnisse mit einem Nettoergebnis von 115 Millionen Dollar (0,42 Dollar pro Aktie) gemeldet, was einen Anstieg von 94 Millionen Dollar im dritten Quartal 2023 bedeutet. Das Unternehmen hat 834 Millionen Dollar in neue Investitionen seit Jahresbeginn abgeschlossen, davon 440 Millionen Dollar im dritten Quartal. Der Umsatz stieg im Vergleich zum dritten Quartal 2023 um 34 Millionen Dollar auf 276 Millionen Dollar. Das Unternehmen hat die AFFO-Prognose für 2024 auf 2,84 bis 2,86 Dollar pro Aktie angehoben, nach zuvor 2,78 bis 2,84 Dollar. Zu den bemerkenswerten Aktivitäten im dritten Quartal gehören die Ausgabe von 14 Millionen Stammaktien für 530 Millionen Dollar und der Erwerb der verbleibenden 51% Beteiligung an Cindat JV für 100,9 Millionen Dollar zuzüglich übernommener Hypothek.
- Net income increased 22.3% YoY to $115 million
- Revenue grew by $34 million to $276 million compared to Q3 2023
- AFFO guidance raised to $2.84-$2.86 per share
- Completed $834 million in new investments year-to-date
- Operator coverage ratios improved to 1.49x after management fees
- LaVie Care Centers filed for Chapter 11 bankruptcy protection
- $8.6 million net impairment charge recorded on five facilities
- $0.2 million loss recognized on asset sales
- $76 million in assets classified as held for sale
Insights
Completed
Increased Full Year Adjusted FFO Guidance
THIRD QUARTER 2024 AND RECENT HIGHLIGHTS
-
Net income for the quarter of
$115 million $0.42 $94 million $0.37 -
Nareit Funds From Operations (“Nareit FFO”) for the quarter of
$196 million $0.71 $161 million $0.63 -
Adjusted Funds From Operations (“Adjusted FFO” or “AFFO”) for the quarter of
$203 million $0.74 $182 million $0.71 -
Funds Available for Distribution (“FAD”) for the quarter of
$192 million $0.70 $174 million $0.68 -
Completed
$440 million $390 million $243 million $50 million -
Issued 14 million common shares in Q3 for gross proceeds of
$530 million -
Completed
$119 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, “We are pleased with our third quarter results, as we continued to grow FAD per share, while also meaningfully de-levering the balance sheet. We have accretively invested approximately
THIRD QUARTER 2024 RESULTS
Revenues – Revenues for the quarter ended September 30, 2024 totaled
Expenses – Expenses for the quarter ended September 30, 2024 totaled
Other Income and Expense – Other (expense) income for the quarter ended September 30, 2024 totaled
Net Income – Net income for the quarter ended September 30, 2024 totaled
2024 THIRD QUARTER PORTFOLIO AND RECENT ACTIVITY
Operator Updates:
LaVie – As previously disclosed, LaVie Care Centers, LLC (“LaVie”) filed for Chapter 11 bankruptcy protection in June 2024. The Company committed
Maplewood – In July 2024, Omega reached an agreement with the estate of the deceased principal and CEO of Maplewood Senior Living (“Maplewood”) to transition control of Maplewood, including assumption of Omega’s lease and loan agreements, to key members of the existing Maplewood management team. The agreement was approved by the probate court in August 2024 and is subject to further regulatory approvals. In the third quarter of 2024, Maplewood paid
Guardian – In April 2024, the Company transitioned its remaining six Guardian facilities to a new operator. Since the transition, Omega has recognized quarterly contractual rent of
New Investments:
The following table presents investment activity for the three and nine months ended September 30, 2024:
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Three Months Ended |
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Nine Months Ended |
||||||||
Investment Activity ( |
|
September 30, 2024 |
|
September 30, 2024 |
||||||||
|
|
$ Amount |
|
% |
|
$ Amount |
|
% |
||||
Real property (1) |
|
$ |
389,545 |
|
83.4 |
% |
|
$ |
517,541 |
|
65.0 |
% |
Real estate loans receivable |
|
|
50,381 |
|
10.8 |
% |
|
|
197,518 |
|
24.8 |
% |
Total real property and loan investments |
|
|
439,926 |
|
94.2 |
% |
|
|
715,059 |
|
89.8 |
% |
Construction-in-progress |
|
|
15,266 |
|
3.3 |
% |
|
|
55,955 |
|
7.0 |
% |
Capital expenditures |
|
|
11,952 |
|
2.5 |
% |
|
|
25,072 |
|
3.2 |
% |
Total capital investments |
|
|
27,218 |
|
5.8 |
% |
|
|
81,027 |
|
10.2 |
% |
Total |
|
$ |
467,144 |
|
100.0 |
% |
|
$ |
796,086 |
|
100.0 |
% |
| _______________ | |
(1) |
Real property investments include the assumption of a |
Through October 30, 2024, the Company has completed
Asset Sales and Impairments:
Impairments – During the third quarter of 2024, the Company recorded an
Assets Held for Sale – As of September 30, 2024, the Company had 15 facilities classified as assets held for sale, totaling
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 is providing this data for informational purposes only.
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Operator Revenue Mix (1) |
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Medicare / |
Private / |
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|
|
Medicaid |
Insurance |
Other |
|||
Three-months ended June 30, 2024 |
|
53.2 |
% |
28.9 |
% |
17.9 |
% |
Three-months ended March 31, 2024 |
|
52.7 |
% |
30.0 |
% |
17.3 |
% |
Three-months ended December 31, 2023 |
|
55.3 |
% |
28.0 |
% |
16.7 |
% |
Three-months ended September 30, 2023 |
|
55.5 |
% |
28.0 |
% |
16.5 |
% |
Three-months ended June 30, 2023 |
|
54.0 |
% |
30.0 |
% |
16.0 |
% |
| _______________ | |
(1) |
Excludes all facilities considered non-core and does not include federal stimulus revenue. For non-core definition, see Third Quarter 2024 Financial Supplemental posted in the “Quarterly Supplements” section of Omega’s website. |
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Coverage Data |
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|
Before |
After |
|
|
|
Occupancy (2) |
Management |
Management |
|
Operator Census and Coverage (1) |
|
|
Fees (3) |
Fees (4) |
|
Twelve-months ended June 30, 2024 |
|
80.9 |
% |
1.85x |
1.49x |
Twelve-months ended March 31, 2024 |
|
80.2 |
% |
1.78x |
1.42x |
Twelve-months ended December 31, 2023 |
|
79.6 |
% |
1.69x |
1.33x |
Twelve-months ended September 30, 2023 |
|
79.1 |
% |
1.63x |
1.28x |
Twelve-months ended June 30, 2023 |
|
78.6 |
% |
1.50x |
1.15x |
| _______________ | |
(1) |
Excludes facilities considered non-core. For information regarding non-core facilities, see the most recent Quarterly Supplement posted on the Company’s website. |
(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 |
FINANCING ACTIVITIES
Dividend Reinvestment and Common Stock Purchase Plan and ATM Program – The following is a summary of the 2024 quarterly Common Stock Purchase Plan and ATM Program through September 30:
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Dividend Reinvestment and Common Stock Purchase Plan for 2024 |
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(in thousands, except price per share) |
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Q1 |
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Q2 |
|
Q3 |
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Total |
||||
Number of shares |
|
29 |
|
|
413 |
|
|
2,575 |
|
|
3,017 |
Average price per share |
$ |
30.44 |
|
$ |
31.52 |
|
$ |
35.13 |
|
$ |
34.59 |
Gross proceeds |
$ |
882 |
|
$ |
13,015 |
|
$ |
90,469 |
|
$ |
104,366 |
|
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|
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ATM Program for 2024 |
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(in thousands, except price per share) |
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|
Q1 |
|
Q2 |
|
Q3 |
|
Total |
||||
Number of shares |
|
1,041 |
|
|
7,212 |
|
|
11,630 |
|
|
19,883 |
Average price per share |
$ |
31.02 |
|
$ |
32.16 |
|
$ |
37.81 |
|
$ |
35.40 |
Gross proceeds |
$ |
32,295 |
|
$ |
231,920 |
|
$ |
439,685 |
|
$ |
703,900 |
BALANCE SHEET AND LIQUIDITY
As of September 30, 2024, the Company had
DIVIDENDS
On October 25, 2024, the Board of Directors declared a quarterly cash dividend of
2024 AFFO GUIDANCE INCREASED
The Company increased its expected 2024 Adjusted FFO range to be between
The Company’s revised Adjusted FFO guidance for 2024 includes the annual impact of
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, restructurings 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 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 Third Quarter 2024 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, October 31, 2024, at 10 a.m. Eastern time to review the Company’s 2024 third quarter results and current developments. Analysts and investors within the
To listen to the conference call via webcast, log on to www.omegahealthcare.com and click the “Omega Healthcare Investors, Inc. 3Q 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
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, occupancy levels and quality of care, including management of infectious diseases; (ii) the timing of our operators’ recovery from staffing shortages, increased costs and decreased occupancy arising from the Novel coronavirus (“COVID-19”) pandemic, and the sufficiency of previous government support and current 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 skilled nursing facilities (“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) changes in tax laws and regulations affecting real estate investment trusts (“REITs”), including as the result of any policy changes driven by the current focus on capital providers to the healthcare industry; (vi) 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 or to redeploy the proceeds therefrom on favorable terms, including due to the potential impact of changes in the SNF and assisted living facility (“ALF”) markets or local real estate conditions; (vii) the availability and cost of capital to Omega; (viii) changes in Omega’s credit ratings and the ratings of its debt securities; (ix) competition in the financing of healthcare facilities; (x) competition in the long-term healthcare industry and shifts in the perception of various types of long-term care facilities, including SNFs and ALFs; (xi) changes in the financial position of Omega’s operators; (xii) the effect of economic and market conditions generally, and particularly in the healthcare industry; (xiii) changes in interest rates and the impact of inflation; (xiv) the timing, amount and yield of any additional investments; (xv) Omega’s ability to maintain its status as a REIT; (xvi) 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 (xvii) 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) |
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September 30, |
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December 31, |
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2024 |
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2023 |
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(Unaudited) |
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ASSETS |
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Real estate assets |
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|
|
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|
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Buildings and improvements |
|
$ |
7,266,469 |
|
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$ |
6,879,034 |
|
Land |
|
|
972,602 |
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|
|
867,486 |
|
Furniture and equipment |
|
|
503,499 |
|
|
|
467,393 |
|
Construction in progress |
|
|
201,360 |
|
|
|
138,410 |
|
Total real estate assets |
|
|
8,943,930 |
|
|
|
8,352,323 |
|
Less accumulated depreciation |
|
|
(2,652,372 |
) |
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|
(2,464,227 |
) |
Real estate assets – net |
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|
6,291,558 |
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|
|
5,888,096 |
|
Investments in direct financing leases – net |
|
|
9,450 |
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|
|
8,716 |
|
Real estate loans receivable – net |
|
|
1,323,469 |
|
|
|
1,212,162 |
|
Investments in unconsolidated joint ventures |
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|
92,598 |
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|
188,409 |
|
Assets held for sale |
|
|
75,973 |
|
|
|
81,546 |
|
Total real estate investments |
|
|
7,793,048 |
|
|
|
7,378,929 |
|
Non-real estate loans receivable – net |
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|
335,717 |
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|
|
275,615 |
|
Total investments |
|
|
8,128,765 |
|
|
|
7,654,544 |
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Cash and cash equivalents |
|
|
342,444 |
|
|
|
442,810 |
|
Restricted cash |
|
|
17,866 |
|
|
|
1,920 |
|
Contractual receivables – net |
|
|
10,337 |
|
|
|
11,888 |
|
Other receivables and lease inducements |
|
|
241,399 |
|
|
|
214,657 |
|
Goodwill |
|
|
644,588 |
|
|
|
643,897 |
|
Other assets |
|
|
186,472 |
|
|
|
147,686 |
|
Total assets |
|
$ |
9,571,871 |
|
|
$ |
9,117,402 |
|
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|
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|
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LIABILITIES AND EQUITY |
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|
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Revolving credit facility |
|
$ |
— |
|
|
$ |
20,397 |
|
Secured borrowings |
|
|
265,239 |
|
|
|
61,963 |
|
Senior notes and other unsecured borrowings – net |
|
|
4,592,963 |
|
|
|
4,984,956 |
|
Accrued expenses and other liabilities |
|
|
313,370 |
|
|
|
287,795 |
|
Total liabilities |
|
|
5,171,572 |
|
|
|
5,355,111 |
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Preferred stock |
|
|
— |
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|
|
— |
|
Common stock |
|
|
26,823 |
|
|
|
24,528 |
|
Additional paid-in capital |
|
|
7,480,051 |
|
|
|
6,671,198 |
|
Cumulative net earnings |
|
|
3,973,566 |
|
|
|
3,680,581 |
|
Cumulative dividends paid |
|
|
(7,335,238 |
) |
|
|
(6,831,061 |
) |
Accumulated other comprehensive income |
|
|
62,738 |
|
|
|
29,338 |
|
Total stockholders’ equity |
|
|
4,207,940 |
|
|
|
3,574,584 |
|
Noncontrolling interest |
|
|
192,359 |
|
|
|
187,707 |
|
Total equity |
|
|
4,400,299 |
|
|
|
3,762,291 |
|
Total liabilities and equity |
|
$ |
9,571,871 |
|
|
$ |
9,117,402 |
|
OMEGA HEALTHCARE INVESTORS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited (in thousands, except per share amounts) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
|
September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Rental income |
|
$ |
227,773 |
|
|
$ |
206,159 |
|
|
|
$ |
641,379 |
|
|
$ |
606,781 |
|
Real estate tax and ground lease income |
|
|
3,712 |
|
|
|
4,043 |
|
|
|
|
11,342 |
|
|
|
12,107 |
|
Real estate loans interest income |
|
|
33,621 |
|
|
|
24,898 |
|
|
|
|
93,318 |
|
|
|
72,274 |
|
Non-real estate loans interest income |
|
|
6,320 |
|
|
|
5,725 |
|
|
|
|
20,501 |
|
|
|
16,001 |
|
Miscellaneous income |
|
|
4,602 |
|
|
|
1,207 |
|
|
|
|
5,532 |
|
|
|
3,258 |
|
Total revenues |
|
|
276,028 |
|
|
|
242,032 |
|
|
|
|
772,072 |
|
|
|
710,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
77,245 |
|
|
|
80,798 |
|
|
|
|
226,036 |
|
|
|
244,008 |
|
General and administrative |
|
|
12,165 |
|
|
|
11,031 |
|
|
|
|
36,412 |
|
|
|
35,299 |
|
Real estate tax and ground lease expense |
|
|
4,079 |
|
|
|
4,392 |
|
|
|
|
12,645 |
|
|
|
13,180 |
|
Stock-based compensation expense |
|
|
9,083 |
|
|
|
8,756 |
|
|
|
|
27,498 |
|
|
|
26,306 |
|
Acquisition, merger and transition related costs |
|
|
6,437 |
|
|
|
121 |
|
|
|
|
10,820 |
|
|
|
1,183 |
|
Impairment on real estate properties |
|
|
8,620 |
|
|
|
27,890 |
|
|
|
|
22,094 |
|
|
|
87,992 |
|
(Recovery) provision for credit losses |
|
|
(9,061 |
) |
|
|
2,733 |
|
|
|
|
(14,763 |
) |
|
|
11,643 |
|
Interest expense |
|
|
52,777 |
|
|
|
55,290 |
|
|
|
|
157,525 |
|
|
|
166,108 |
|
Interest – amortization of deferred financing costs |
|
|
1,913 |
|
|
|
3,488 |
|
|
|
|
8,951 |
|
|
|
9,992 |
|
Total expenses |
|
|
163,258 |
|
|
|
194,499 |
|
|
|
|
487,218 |
|
|
|
595,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other (expense) income – net |
|
|
(1,044 |
) |
|
|
5,402 |
|
|
|
|
7,595 |
|
|
|
9,151 |
|
Loss on debt extinguishment |
|
|
(137 |
) |
|
|
— |
|
|
|
|
(1,633 |
) |
|
|
(6 |
) |
(Loss) gain on assets sold – net |
|
|
(238 |
) |
|
|
44,076 |
|
|
|
|
11,282 |
|
|
|
69,956 |
|
Total other (expense) income |
|
|
(1,419 |
) |
|
|
49,478 |
|
|
|
|
17,244 |
|
|
|
79,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income before income tax expense and income (loss) from unconsolidated joint ventures |
|
|
111,351 |
|
|
|
97,011 |
|
|
|
|
302,098 |
|
|
|
193,811 |
|
Income tax expense |
|
|
(3,316 |
) |
|
|
(1,758 |
) |
|
|
|
(7,877 |
) |
|
|
(2,092 |
) |
Income (loss) from unconsolidated joint ventures |
|
|
6,879 |
|
|
|
(1,345 |
) |
|
|
|
7,118 |
|
|
|
555 |
|
Net income |
|
|
114,914 |
|
|
|
93,908 |
|
|
|
|
301,339 |
|
|
|
192,274 |
|
Net income attributable to noncontrolling interest |
|
|
(3,152 |
) |
|
|
(2,527 |
) |
|
|
|
(8,354 |
) |
|
|
(5,095 |
) |
Net income available to common stockholders |
|
$ |
111,762 |
|
|
$ |
91,381 |
|
|
|
$ |
292,985 |
|
|
$ |
187,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per common share available to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income available to common stockholders |
|
$ |
0.43 |
|
|
$ |
0.37 |
|
|
|
$ |
1.16 |
|
|
$ |
0.78 |
|
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income available to common stockholders |
|
$ |
0.42 |
|
|
$ |
0.37 |
|
|
|
$ |
1.14 |
|
|
$ |
0.78 |
|
Dividends declared per common share |
|
$ |
0.67 |
|
|
$ |
0.67 |
|
|
|
$ |
2.01 |
|
|
$ |
2.01 |
|
OMEGA HEALTHCARE INVESTORS, INC. Nareit FFO, Adjusted FFO and FAD Reconciliation Unaudited (in thousands, except per share amounts) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net income (1) |
|
$ |
114,914 |
|
|
$ |
93,908 |
|
|
$ |
301,339 |
|
|
$ |
192,274 |
|
Add back loss (deduct gain) from real estate dispositions |
|
|
238 |
|
|
|
(44,076 |
) |
|
|
(11,282 |
) |
|
|
(69,956 |
) |
Deduct gain from real estate dispositions of unconsolidated joint ventures |
|
|
(6,260 |
) |
|
|
— |
|
|
|
(6,260 |
) |
|
|
— |
|
Sub-total |
|
|
108,892 |
|
|
|
49,832 |
|
|
|
283,797 |
|
|
|
122,318 |
|
Elimination of non-cash items included in net income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
77,245 |
|
|
|
80,798 |
|
|
|
226,036 |
|
|
|
244,008 |
|
Depreciation - unconsolidated joint ventures |
|
|
1,317 |
|
|
|
2,514 |
|
|
|
6,384 |
|
|
|
7,941 |
|
Add back provision for impairments on real estate properties |
|
|
8,620 |
|
|
|
27,890 |
|
|
|
22,094 |
|
|
|
87,992 |
|
Nareit funds from operations (“Nareit FFO”) |
|
$ |
196,074 |
|
|
$ |
161,034 |
|
|
$ |
538,311 |
|
|
$ |
462,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding, basic |
|
|
262,720 |
|
|
|
245,033 |
|
|
|
252,719 |
|
|
|
238,740 |
|
Restricted stock and PRSUs |
|
|
5,088 |
|
|
|
3,825 |
|
|
|
4,476 |
|
|
|
2,701 |
|
Omega OP Units |
|
|
7,749 |
|
|
|
7,097 |
|
|
|
7,590 |
|
|
|
6,974 |
|
Weighted-average common shares outstanding, diluted |
|
|
275,557 |
|
|
|
255,955 |
|
|
|
264,785 |
|
|
|
248,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Nareit funds from operations available per share |
|
$ |
0.71 |
|
|
$ |
0.63 |
|
|
$ |
2.03 |
|
|
$ |
1.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments to calculate adjusted funds from operations |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Nareit FFO |
|
$ |
196,074 |
|
|
$ |
161,034 |
|
|
$ |
538,311 |
|
|
$ |
462,259 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stock-based compensation expense |
|
|
9,083 |
|
|
|
8,756 |
|
|
|
27,498 |
|
|
|
26,306 |
|
Acquisition, merger and transition related costs |
|
|
6,437 |
|
|
|
121 |
|
|
|
10,820 |
|
|
|
1,183 |
|
Non-recurring expense |
|
|
3,084 |
|
|
|
— |
|
|
|
3,316 |
|
|
|
1,893 |
|
Uncollectible accounts receivable (2) |
|
|
1,136 |
|
|
|
7,232 |
|
|
|
1,136 |
|
|
|
20,633 |
|
Non-recognized cash interest |
|
|
307 |
|
|
|
1,753 |
|
|
|
914 |
|
|
|
6,171 |
|
Loss on debt extinguishment |
|
|
137 |
|
|
|
— |
|
|
|
1,633 |
|
|
|
6 |
|
Unconsolidated JV related non-recurring loss |
|
|
— |
|
|
|
1,834 |
|
|
|
— |
|
|
|
1,656 |
|
Deduct: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-cash (recovery) provision for credit losses |
|
|
(7,879 |
) |
|
|
3,916 |
|
|
|
(11,228 |
) |
|
|
17,884 |
|
Non-recurring revenue |
|
|
(5,305 |
) |
|
|
(2,466 |
) |
|
|
(8,243 |
) |
|
|
(12,781 |
) |
Adjusted funds from operations (“AFFO”) (1)(3) |
|
$ |
203,074 |
|
|
$ |
182,180 |
|
|
$ |
564,157 |
|
|
$ |
525,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments to calculate funds available for distribution |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-cash expense(4) |
|
$ |
3,333 |
|
|
$ |
2,459 |
|
|
$ |
9,280 |
|
|
$ |
6,905 |
|
Capitalized interest |
|
|
(1,933 |
) |
|
|
(1,117 |
) |
|
|
(5,209 |
) |
|
|
(3,016 |
) |
Non-cash revenue |
|
|
(12,092 |
) |
|
|
(9,889 |
) |
|
|
(31,307 |
) |
|
|
(35,608 |
) |
Funds available for distribution (“FAD”) (1)(3) |
|
$ |
192,382 |
|
|
$ |
173,633 |
|
|
$ |
536,921 |
|
|
$ |
493,491 |
|
| _______________ | |
(1) |
The three and nine months ended September 30, 2024 include the application of |
(2) |
The nine months ended September 30, 2023 includes a |
(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. |
(4) |
For the three and nine months ended September 30, 2024, Non-cash expense is not adjusted to include |
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 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 expense, such as the amortization of deferred financing costs, and non-cash revenue, such as straight-line rent. FAD includes the non-cash amortization of premiums associated with the fair value of debt assumed in acquisitions. 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/20241030129723/en/
Andrew Dorsey, VP, Corporate Strategy & Investor Relations
or
David Griffin, Director, Corporate Strategy & Investor Relations at (410) 427-1700
Source: Omega Healthcare Investors, Inc.
FAQ
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