Maryland
|
1-11316
|
38-3041398
|
(Omega Healthcare Investors, Inc.)
|
(Omega Healthcare Investors, Inc.)
|
(Omega Healthcare Investors, Inc.)
|
Delaware
|
333-203447-11
|
36-4796206
|
(OHI Healthcare Properties Limited Partnership)
|
(OHI Healthcare Properties Limited Partnership)
|
(OHI Healthcare Properties Limited Partnership)
|
(State of incorporation or organization)
|
(Commission File Number)
|
(IRS Employer
Identification No.)
|
·
|
declared a $0.66 per share quarterly common stock dividend rate.
|
·
|
sold 14 facilities and had 3 mortgage loans repaid, totaling $98.4 million in net cash proceeds.
|
·
|
invested $38 million in capital renovation and construction-in-progress projects.
|
·
|
completed $30 million in new investments.
|
·
|
increased its quarterly common stock dividend rate to $0.66 per share.
|
(in thousands, except price per share)
|
Equity Shelf (At-the-Market) Program
|
Dividend Reinvestment and Common Stock Purchase Plan
|
||||||
Q1 2018 | ||||||||
Number of shares
|
—
|
189
|
||||||
Average price per share
|
$
|
—
|
$
|
25.87
|
||||
Gross proceeds
|
$
|
—
|
$
|
4,886
|
2018 Annual Adjusted FFO
Guidance Range (per diluted common share) |
||||
Full Year
|
||||
Net Income
|
$
|
1.48 - $1.58
|
||
Depreciation
|
1.40
|
|||
Gain on assets sold
|
(0.08
|
)
|
||
Real estate impairment
|
0.03
|
|||
FFO
|
$
|
2.83 - $2.93
|
||
Adjustments:
|
||||
Unrealized gain on warrants
|
0.00
|
|||
Purchase option buyout
|
0.01
|
|||
Provision for uncollectible accounts
|
0.04
|
|||
Stock-based compensation expense
|
0.08
|
|||
Adjusted FFO
|
$
|
2.96 - $3.06
|
March 31,
|
December 31,
|
|||||||
2018
|
2017
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Real estate properties
|
||||||||
Real estate investments
|
$
|
7,611,038
|
$
|
7,655,960
|
||||
Less accumulated depreciation
|
(1,420,332
|
)
|
(1,376,828
|
)
|
||||
Real estate investments – net
|
6,190,706
|
6,279,132
|
||||||
Investments in direct financing leases – net
|
364,932
|
364,965
|
||||||
Mortgage notes receivable – net
|
653,319
|
671,232
|
||||||
7,208,957
|
7,315,329
|
|||||||
Other investments – net
|
322,249
|
276,342
|
||||||
Investment in unconsolidated joint venture
|
34,673
|
36,516
|
||||||
Assets held for sale – net
|
143,419
|
86,699
|
||||||
Total investments
|
7,709,298
|
7,714,886
|
||||||
Cash and cash equivalents
|
71,231
|
85,937
|
||||||
Restricted cash
|
7,868
|
10,871
|
||||||
Accounts receivable – net
|
319,713
|
279,334
|
||||||
Goodwill
|
645,214
|
644,690
|
||||||
Other assets
|
39,305
|
37,587
|
||||||
Total assets
|
$
|
8,792,629
|
$
|
8,773,305
|
||||
LIABILITIES AND EQUITY
|
||||||||
Revolving line of credit
|
$
|
355,000
|
$
|
290,000
|
||||
Term loans – net
|
910,019
|
904,670
|
||||||
Secured borrowings – net
|
52,775
|
53,098
|
||||||
Unsecured borrowings – net
|
3,325,885
|
3,324,390
|
||||||
Accrued expenses and other liabilities
|
262,573
|
295,142
|
||||||
Deferred income taxes
|
15,977
|
17,747
|
||||||
Total liabilities
|
4,922,229
|
4,885,047
|
||||||
Equity:
|
||||||||
Common stock $.10 par value authorized – 350,000 shares, issued and outstanding – 198,595 shares as of March 31, 2018 and 198,309 as of December 31, 2017
|
19,859
|
19,831
|
||||||
Common stock – additional paid-in capital
|
4,943,600
|
4,936,302
|
||||||
Cumulative net earnings
|
1,933,153
|
1,839,356
|
||||||
Cumulative dividends
|
(3,341,765
|
)
|
(3,210,248
|
)
|
||||
Accumulated other comprehensive loss
|
(16,399
|
)
|
(30,150
|
)
|
||||
Total stockholders' equity
|
3,538,448
|
3,555,091
|
||||||
Noncontrolling interest
|
331,952
|
333,167
|
||||||
Total equity
|
3,870,400
|
3,888,258
|
||||||
Total liabilities and equity
|
$
|
8,792,629
|
$
|
8,773,305
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2018
|
2017
|
|||||||
Revenue
|
||||||||
Rental income
|
$
|
193,949
|
$
|
192,537
|
||||
Income from direct financing leases
|
613
|
15,646
|
||||||
Mortgage interest income
|
16,579
|
15,956
|
||||||
Other investment income
|
8,527
|
6,914
|
||||||
Miscellaneous income
|
531
|
691
|
||||||
Total operating revenues
|
220,199
|
231,744
|
||||||
Expenses
|
||||||||
Depreciation and amortization
|
70,361
|
69,993
|
||||||
General and administrative
|
12,419
|
8,780
|
||||||
Stock-based compensation
|
4,056
|
3,744
|
||||||
Acquisition costs
|
-
|
(41
|
)
|
|||||
Impairment loss on real estate properties
|
4,914
|
7,638
|
||||||
Provision for uncollectible accounts
|
7,814
|
2,404
|
||||||
Total operating expenses
|
99,564
|
92,518
|
||||||
Income before other income and expense
|
120,635
|
139,226
|
||||||
Other income (expense)
|
||||||||
Interest income and other – net
|
585
|
4
|
||||||
Interest expense
|
(48,011
|
)
|
(45,041
|
)
|
||||
Interest – amortization of deferred financing costs
|
(2,243
|
)
|
(2,502
|
)
|
||||
Contractual settlement
|
-
|
10,412
|
||||||
Realized gain on foreign exchange
|
59
|
61
|
||||||
Total other expense
|
(49,610
|
)
|
(37,066
|
)
|
||||
Income before gain on assets sold
|
71,025
|
102,160
|
||||||
Gain on assets sold – net
|
17,500
|
7,420
|
||||||
Income from continuing operations
|
88,525
|
109,580
|
||||||
Income tax expense
|
(543
|
)
|
(1,100
|
)
|
||||
(Loss) income from unconsolidated joint venture
|
(49
|
)
|
632
|
|||||
Net income
|
87,933
|
109,112
|
||||||
Net income attributable to noncontrolling interest
|
(3,713
|
)
|
(4,672
|
)
|
||||
Net income available to common stockholders
|
$
|
84,220
|
$
|
104,440
|
||||
Income per common share available to common stockholders:
|
||||||||
Basic:
|
||||||||
Net income available to common stockholders
|
$
|
0.42
|
$
|
0.53
|
||||
Diluted:
|
||||||||
Net income
|
$
|
0.42
|
$
|
0.53
|
||||
Dividends declared per common share
|
$
|
0.66
|
$
|
0.62
|
||||
Weighted-average shares outstanding, basic
|
198,911
|
197,013
|
||||||
Weighted-average shares outstanding, diluted
|
207,816
|
206,174
|
||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2018
|
2017
|
|||||||
Net income
|
$
|
87,933
|
$
|
109,112
|
||||
Deduct gain from real estate dispositions
|
(17,500
|
)
|
(7,420
|
)
|
||||
Sub – total
|
70,433
|
101,692
|
||||||
Elimination of non-cash items included in net income:
|
||||||||
Depreciation and amortization
|
70,361
|
69,993
|
||||||
Depreciation - unconsolidated joint venture
|
1,657
|
1,658
|
||||||
Add back non-cash provision for impairments on real estate properties
|
4,914
|
7,638
|
||||||
Add back non-cash provision for impairments on real estate properties of unconsolidated joint venture
|
608
|
—
|
||||||
Funds from operations ("FFO")
|
$
|
147,973
|
$
|
180,981
|
||||
Weighted-average common shares outstanding, basic
|
198,911
|
197,013
|
||||||
Restricted stock and PRSUs
|
136
|
347
|
||||||
Omega OP Units
|
8,769
|
8,814
|
||||||
Weighted-average common shares outstanding, diluted
|
207,816
|
206,174
|
||||||
Funds from operations available per share
|
$
|
0.71
|
$
|
0.88
|
||||
Adjustments to calculate adjusted funds from operations:
|
||||||||
Funds from operations
|
$
|
147,973
|
$
|
180,981
|
||||
Deduct unrealized gain on warrants
|
(581
|
)
|
—
|
|||||
Deduct contractual settlement
|
—
|
(10,412
|
)
|
|||||
Deduct acquisition costs
|
—
|
(41
|
)
|
|||||
Add back one-time buy-out of purchase option
|
2,000
|
—
|
||||||
Add back provision for uncollectible accounts
|
7,814
|
2,404
|
||||||
Add back non-cash stock-based compensation expense
|
4,056
|
3,744
|
||||||
Adjusted funds from operations ("AFFO")
|
$
|
161,262
|
$
|
176,676
|
||||
Adjustments to calculate funds available for distribution:
|
||||||||
Non-cash interest expense
|
$
|
2,216
|
$
|
2,810
|
||||
Capitalized interest
|
(2,296
|
)
|
(1,989
|
)
|
||||
Non-cash revenues
|
(17,380
|
)
|
(18,129
|
)
|
||||
Funds available for distribution ("FAD")
|
$
|
143,802
|
$
|
159,368
|
||||
As of March 31, 2018
|
As of March 31, 2018
|
|||||||||||||||||||
Balance Sheet Data
|
Total # of Properties
|
Total Investment ($000's)
|
% of Investment
|
# of Operating Properties (1)
|
# of Operating Beds (1)
|
|||||||||||||||
Real Estate Investments
|
850
|
$
|
7,611,038
|
88
|
%
|
873
|
86,622
|
|||||||||||||
Direct Financing Leases
|
41
|
364,932
|
4
|
%
|
41
|
4,264
|
||||||||||||||
Mortgage Notes Receivable
|
49
|
653,319
|
8
|
%
|
49
|
5,314
|
||||||||||||||
940
|
$
|
8,629,289
|
100
|
%
|
963
|
96,200
|
||||||||||||||
Assets held for sale
|
33
|
143,419
|
||||||||||||||||||
Total Investments
|
973
|
$
|
8,772,708
|
Investment Data
|
Total # of Properties
|
Total Investment ($000's)
|
% of Investment
|
# of Operating Properties(1)
|
# of Operating Beds (1)
|
Investment per Bed ($000's)
|
||||||||||||||||||
Skilled Nursing Facilities/Transitional Care
|
809
|
$
|
7,135,981
|
83
|
%
|
836
|
88,363
|
$
|
81
|
|||||||||||||||
Senior Housing (2)
|
131
|
1,493,308
|
17
|
%
|
127
|
7,837
|
$
|
191
|
||||||||||||||||
940
|
$
|
8,629,289
|
100
|
%
|
963
|
96,200
|
$
|
90
|
||||||||||||||||
Assets held for sale
|
33
|
143,419
|
||||||||||||||||||||||
Total Investments
|
973
|
$
|
8,772,708
|
|||||||||||||||||||||
(1) (1) Excludes facilities which are non-operating, closed and/or not currently providing patient services.
(2) Includes ALFs, memory care and independent living facilities.
|
Revenue Composition ($000's)
|
||||||||
Revenue by Investment Type
|
Three Months Ended
|
|||||||
March 31, 2018
|
||||||||
Rental Property
|
$
|
193,949
|
88
|
%
|
||||
Direct Financing Leases
|
613
|
0
|
%
|
|||||
Mortgage Notes
|
16,579
|
8
|
%
|
|||||
Other Investment Income and Miscellaneous Income - net
|
9,058
|
4
|
%
|
|||||
$
|
220,199
|
100
|
%
|
Revenue by Facility Type
|
Three Months Ended
|
|||||||
March 31, 2018
|
||||||||
Skilled Nursing Facilities/Transitional Care
|
$
|
182,253
|
83
|
%
|
||||
Senior Housing
|
28,888
|
13
|
%
|
|||||
Other
|
9,058
|
4
|
%
|
|||||
$
|
220,199
|
100
|
%
|
|||||
Rent/Interest Concentration by Operator
($000's)
|
# of Properties (1)
|
Total
Annualized Contractual Rent/Interest (1)(2)
|
% of Total
Annualized Contractual Rent/Interest
|
|||||||||
Ciena Healthcare
|
70
|
$
|
86,895
|
10.9
|
%
|
|||||||
CommuniCare Health Services, Inc.
|
48
|
61,736
|
7.7
|
%
|
||||||||
Genesis Healthcare
|
50
|
57,236
|
7.2
|
%
|
||||||||
Signature Holdings II, LLC
|
60
|
56,706
|
7.1
|
%
|
||||||||
Saber Health Group
|
45
|
42,229
|
5.3
|
%
|
||||||||
Health & Hospital Corporation
|
44
|
35,234
|
4.4
|
%
|
||||||||
Guardian LTC Management Inc.
|
32
|
30,664
|
3.8
|
%
|
||||||||
Maplewood Real Estate Holdings, LLC
|
14
|
30,057
|
3.8
|
%
|
||||||||
Diversicare Healthcare Services
|
35
|
28,822
|
3.6
|
%
|
||||||||
Daybreak Venture, LLC.
|
54
|
27,864
|
3.5
|
%
|
||||||||
Remaining Operators (3)
|
453
|
341,252
|
42.7
|
%
|
||||||||
905
|
$
|
798,695
|
100.0
|
%
|
||||||||
(1) (1) Excludes facilities which are non-operating, closed and/or not currently providing patient services.
(2) 1Q 2018 contractual rent/interest annualized; includes mezzanine and term loan interest.
(3) (3) Excludes Orianna and Preferred Care facilities due to their bankruptcy status: all facilities of these 2 operators are expected to be transitioned or sold.
|
Geographic Concentration by Investment ($000's)
|
Total # of Properties (1)
|
Total
Investment (1)
|
% of Total Investment
|
|||||||||
Florida
|
95
|
$
|
815,486
|
9.4
|
%
|
|||||||
Texas
|
113
|
809,597
|
9.4
|
%
|
||||||||
Ohio
|
68
|
669,955
|
7.8
|
%
|
||||||||
Michigan
|
49
|
632,752
|
7.3
|
%
|
||||||||
Indiana
|
65
|
583,112
|
6.8
|
%
|
||||||||
California
|
54
|
497,853
|
5.8
|
%
|
||||||||
Pennsylvania
|
43
|
463,630
|
5.4
|
%
|
||||||||
Tennessee
|
40
|
331,218
|
3.8
|
%
|
||||||||
Virginia
|
18
|
283,370
|
3.3
|
%
|
||||||||
North Carolina
|
33
|
273,028
|
3.2
|
%
|
||||||||
Remaining 31 states (2)
|
307
|
2,836,780
|
32.8
|
%
|
||||||||
885
|
8,196,781
|
95.0
|
%
|
|||||||||
United Kingdom
|
55
|
432,508
|
5.0
|
%
|
||||||||
940
|
$
|
8,629,289
|
100.0
|
%
|
||||||||
(1) Excludes 33 properties with total investment of $143.4 million classified as assets held for sale.
(2) # of states and Total Investment includes New York City 2nd Avenue development project.
|
Rent and Loan Maturities ($000's)
|
As of March 31, 2018
|
||||||||||||||||
Operating Lease Expirations
& Loan Maturities
|
Year
|
2018 Lease Rent
|
2018 Interest
|
2018 Lease and Interest Rent
|
%
|
||||||||||||
2018
|
$
|
8,607
|
$
|
1,423
|
$
|
10,030
|
1.3
|
%
|
|||||||||
2019
|
3,259
|
-
|
3,259
|
0.4
|
%
|
||||||||||||
2020
|
5,681
|
3,353
|
9,034
|
1.1
|
%
|
||||||||||||
2021
|
6,210
|
935
|
7,145
|
0.9
|
%
|
||||||||||||
2022
|
38,988
|
2,879
|
41,867
|
5.2
|
%
|
||||||||||||
2023
|
36,062
|
-
|
36,092
|
4.5
|
%
|
||||||||||||
Notes: Based on annualized 1st quarter 2018 contractual rent and interest.
|
|||||||||||||||||
Excludes Preferred Care's contractual revenue of approximately $11.0 million expiring in 2022 due to its bankruptcy status.
|
|||||||||||||||||
|
Operator Revenue Mix(1)
|
As of December 31, 2017
|
|||||||||||
Medicaid
|
Medicare / Insurance
|
Private / Other
|
||||||||||
Three-months ended December 31, 2017
|
52.9
|
%
|
34.6
|
%
|
12.5
|
%
|
||||||
Three-months ended September 30, 2017
|
52.9
|
%
|
34.7
|
%
|
12.4
|
%
|
||||||
Three-months ended June 30, 2017
|
51.9
|
%
|
35.9
|
%
|
12.2
|
%
|
||||||
Three-months ended March 31, 2017
|
51.0
|
%
|
37.3
|
%
|
11.7
|
%
|
||||||
Three-months ended December 31, 2016
|
52.6
|
%
|
35.8
|
%
|
11.6
|
%
|
||||||
(1) Excludes all facilities considered non-core.
|
Operator Census and Coverage (1)
|
Coverage Data
|
|||||||||||
Occupancy (2)
|
Before
Management Fees
|
After
Management Fees
|
||||||||||
Twelve-months ended December 31, 2017
|
82.3
|
%
|
1.71
|
x
|
1.34
|
x
|
||||||
Twelve-months ended September 30, 2017
|
82.2
|
%
|
1.72
|
x
|
1.35
|
x
|
||||||
Twelve-months ended June 30, 2017
|
82.4
|
%
|
1.71
|
x
|
1.34
|
x
|
||||||
Twelve-months ended March 31, 2017
|
82.5
|
%
|
1.69
|
x
|
1.33
|
x
|
||||||
Twelve-months ended December 31, 2016
|
82.2
|
%
|
1.69
|
x
|
1.33
|
x
|
||||||
(1) Excludes all facilities considered non-core.
(2) Based on available (operating) beds.
|
Debt Maturities ($000's)
|
Secured Debt
|
Unsecured Debt
|
||||||||||||||||||
Year
|
HUD Mortgages (1)
|
Line of Credit and Term Loans (2)(3)
|
Senior Notes/Other
(4)
|
Sub Notes
(5)
|
Total Debt
Maturities
|
|||||||||||||||
2018
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
2019
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
2020
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
2021
|
-
|
1,250,000
|
-
|
20,000
|
1,270,000
|
|||||||||||||||
2022
|
-
|
915,180
|
-
|
-
|
915,180
|
|||||||||||||||
2023
|
-
|
-
|
700,000
|
-
|
700,000
|
|||||||||||||||
Thereafter
|
53,338
|
-
|
2,650,000
|
-
|
2,703,338
|
|||||||||||||||
$
|
53,338
|
$
|
2,165,180
|
$
|
3,350,000
|
$
|
20,000
|
$
|
5,588,518
|
|||||||||||
(1) Mortgages guaranteed by HUD (excluding net deferred financing costs of $0.6 million).
(2) Reflected at 100% borrowing capacity.
(3) $1.25 billion line of credit excludes a $700 million accordion feature and $5.2 million net deferred financing costs. The $915 million is comprised of a: $425 million US Dollar term loan, £100 million term loan (equivalent to $140 million in US dollars), $100 million term loan to Omega's operating partnership and $250 million term loan (excludes $5.2 million net deferred financing costs related to the term loans) assuming the exercise of existing extension rights.
(4) Excludes net discounts, deferred financing costs and a $1.5 million promissory note.
(5) Excludes $0.3 million of fair market valuation adjustments.
|
Investment Activity ($000's)
|
Three Months Ended
|
|||||||
March 31, 2018
|
||||||||
Funding by Investment Type
|
$ Amount
|
%
|
||||||
Real Property
|
$
|
29,672
|
43.9
|
%
|
||||
Construction-in-Progress
|
19,485
|
28.8
|
%
|
|||||
Capital Expenditures
|
18,462
|
27.3
|
%
|
|||||
Investment in Direct Financing Leases
|
15
|
0.0
|
%
|
|||||
Total
|
$
|
67,634
|
100.0
|
%
|
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