Maryland
|
1-11316
|
38-3041398
|
(Omega Healthcare Investors, Inc.)
|
(Omega Healthcare Investors, Inc.)
|
(Omega Healthcare Investors, Inc.)
|
Delaware
|
33-203447-11
|
36-4796206
|
(OHI Healthcare Properties Limited Partnership)
|
(OHI Healthcare Properties Limited Partnership)
|
(OHI Healthcare Properties Limited Partnership)
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer
Identification No.)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $.10 par value
|
OHI
|
New York Stock Exchange
|
·
|
declared a $0.66 per share quarterly common stock dividend.
|
·
|
entered into a definitive merger agreement to acquire MedEquities Realty Trust, Inc.
|
·
|
finalized the Orianna portfolio restructuring.
|
·
|
invested $42 million in capital renovation and construction-in-progress projects.
|
·
|
paid a $0.66 per share quarterly common stock dividend.
|
(in thousands, except price per share)
|
Equity Shelf (At-the-Market) Program
|
Dividend Reinvestment and Common Stock Purchase Plan
|
||||||
Q 1 2019 |
||||||||
Number of shares
|
2,221
|
892
|
||||||
Average price per share
|
$
|
35.26
|
$
|
36.19
|
||||
Gross proceeds
|
$
|
78,325
|
$
|
32,286
|
2019 Q4 Pro Forma Adjusted FFO Guidance Range
(per diluted common share) |
2019 Annual Adjusted FFO
Guidance Range (per diluted common share) |
|||||||
Net Income
|
$
|
0.42 - $0.45
|
$
|
1.49 - $1.61
|
||||
Depreciation
|
0.34
|
1.37
|
||||||
Depreciation – unconsolidated joint venture
|
0.00
|
0.02
|
||||||
Unrealized gain on warrants
|
0.00
|
(0.00
|
)
|
|||||
Gain on assets sold – net
|
0.00
|
(0.00
|
)
|
|||||
FFO
|
$
|
0.76 - $0.79
|
$
|
2.88 - $3.00
|
||||
Adjustments:
|
||||||||
One-time revenue items
|
0.00
|
0.00
|
||||||
One-time termination payment
|
0.00
|
0.00
|
||||||
Interest – refinancing costs
|
0.00
|
0.00
|
||||||
Restructuring expenses
|
0.00
|
0.01
|
||||||
Impairment on direct financing leases
|
0.00
|
0.03
|
||||||
Stock-based compensation expense
|
0.02
|
0.08
|
||||||
Adjusted FFO
|
$
|
0.78 - $0.81
|
$
|
3.00 - $3.12
|
March 31,
|
December 31,
|
|||||||
2019
|
2018
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Real estate properties
|
||||||||
Real estate investments
|
$
|
7,818,209
|
$
|
7,746,410
|
||||
Less accumulated depreciation
|
(1,631,673
|
)
|
(1,562,619
|
)
|
||||
Real estate investments – net
|
6,186,536
|
6,183,791
|
||||||
Investments in direct financing leases – net
|
11,707
|
132,262
|
||||||
Mortgage notes receivable – net
|
703,739
|
710,858
|
||||||
6,901,982
|
7,026,911
|
|||||||
Other investments – net
|
474,066
|
504,626
|
||||||
Investment in unconsolidated joint venture
|
29,919
|
31,045
|
||||||
Assets held for sale – net
|
645
|
989
|
||||||
Total investments
|
7,406,612
|
7,563,571
|
||||||
Cash and cash equivalents
|
40,028
|
10,300
|
||||||
Restricted cash
|
1,372
|
1,371
|
||||||
Contractual receivables – net
|
33,346
|
33,826
|
||||||
Other receivables and lease inducements
|
338,177
|
313,551
|
||||||
Goodwill
|
644,190
|
643,950
|
||||||
Other assets
|
56,341
|
24,308
|
||||||
Total assets
|
$
|
8,520,066
|
$
|
8,590,877
|
||||
LIABILITIES AND EQUITY
|
||||||||
Revolving line of credit
|
$
|
195,000
|
$
|
313,000
|
||||
Term loans – net
|
901,345
|
898,726
|
||||||
Secured borrowing
|
2,275
|
—
|
||||||
Senior notes and other unsecured borrowings – net
|
3,330,400
|
3,328,896
|
||||||
Accrued expenses and other liabilities
|
271,902
|
272,172
|
||||||
Deferred income taxes
|
13,502
|
13,599
|
||||||
Total liabilities
|
4,714,424
|
4,826,393
|
||||||
Equity:
|
||||||||
Common stock $.10 par value authorized – 350,000 shares, issued and outstanding – 207,001 shares
as of March 31, 2019 and 202,346 as of December 31, 2018
|
20,700
|
20,235
|
||||||
Common stock – additional paid-in capital
|
5,240,714
|
5,074,544
|
||||||
Cumulative net earnings
|
2,200,213
|
2,130,511
|
||||||
Cumulative dividends paid
|
(3,875,884
|
)
|
(3,739,197
|
)
|
||||
Accumulated other comprehensive loss
|
(39,941
|
)
|
(41,652
|
)
|
||||
Total stockholders’ equity
|
3,545,802
|
3,444,441
|
||||||
Noncontrolling interest
|
259,840
|
320,043
|
||||||
Total equity
|
3,805,642
|
3,764,484
|
||||||
Total liabilities and equity
|
$
|
8,520,066
|
$
|
8,590,877
|
Three Months Ended
|
|||||||
March 31,
|
|||||||
2019
|
2018
|
||||||
Revenue
|
|||||||
Rental income
|
$
|
188,204
|
$
|
193,949
|
|||
Real estate tax and ground lease income
|
3,973
|
-
|
|||||
Income from direct financing leases
|
260
|
613
|
|||||
Mortgage interest income
|
18,134
|
16,579
|
|||||
Other investment income
|
11,914
|
8,527
|
|||||
Miscellaneous income
|
1,203
|
531
|
|||||
Total operating revenues
|
223,688
|
220,199
|
|||||
Expenses
|
|||||||
Depreciation and amortization
|
70,852
|
70,361
|
|||||
General and administrative
|
11,826
|
12,419
|
|||||
Real estate tax and ground lease expense
|
4,119
|
-
|
|||||
Stock-based compensation
|
4,070
|
4,056
|
|||||
Acquisition costs
|
2,949
|
-
|
|||||
Impairment on real estate properties
|
-
|
4,914
|
|||||
Impairment on direct financing leases
|
7,700
|
-
|
|||||
Provision for uncollectible accounts
|
-
|
7,814
|
|||||
Total operating expenses
|
101,516
|
99,564
|
|||||
Other operating income
|
|||||||
Gain on assets sold – net
|
3
|
17,500
|
|||||
Operating income
|
122,175
|
138,135
|
|||||
Other income (expense)
|
|||||||
Interest income and other – net
|
337
|
585
|
|||||
Interest expense
|
(48,100
|
)
|
(48,011
|
)
|
|||
Interest – amortization of deferred financing costs
|
(2,238
|
)
|
(2,243
|
)
|
|||
Realized gain on foreign exchange
|
26
|
59
|
|||||
Total other expense
|
(49,975
|
)
|
(49,610
|
)
|
|||
Income from continuing operations
|
72,200
|
88,525
|
|||||
Income tax expense
|
(675
|
)
|
(543
|
)
|
|||
Income (loss) from unconsolidated joint venture
|
657
|
(49
|
)
|
||||
Net income
|
72,182
|
87,933
|
|||||
Net income attributable to noncontrolling interest
|
(2,480
|
)
|
(3,713
|
)
|
|||
Net income available to common stockholders
|
$
|
69,702
|
$
|
84,220
|
|||
Earnings per common share available to common stockholders:
|
|||||||
Basic:
|
|||||||
Net income available to common stockholders
|
$
|
0.34
|
$
|
0.42
|
|||
Diluted:
|
|||||||
Net income
|
$
|
0.34
|
$
|
0.42
|
|||
Dividends declared per common share
|
$
|
0.66
|
$
|
0.66
|
|||
Weighted-average shares outstanding, basic
|
204,558
|
198,911
|
|||||
Weighted-average shares outstanding, diluted
|
213,523
|
207,816
|
|||||
Three Months Ended
|
|||||||
March 31,
|
|||||||
2019
|
2018
|
||||||
Net income
|
$
|
72,182
|
$
|
87,933
|
|||
Deduct gain from real estate dispositions
|
(3
|
)
|
(17,500
|
)
|
|||
Sub-total
|
72,179
|
70,433
|
|||||
Elimination of non-cash items included in net income:
|
|||||||
Depreciation and amortization
|
70,852
|
70,361
|
|||||
Depreciation - unconsolidated joint venture
|
1,372
|
1,657
|
|||||
Add back non-cash provision for impairments on real estate properties
|
—
|
4,914
|
|||||
Add back non-cash provision for impairments on real estate properties of unconsolidated joint
venture
|
—
|
608
|
|||||
Deduct unrealized gain on warrants
|
(284
|
)
|
(581
|
)
|
|||
Funds from operations (“FFO”)
|
$
|
144,119
|
$
|
147,392
|
|||
Weighted-average common shares outstanding, basic
|
204,558
|
198,911
|
|||||
Restricted stock and PRSUs
|
1,688
|
136
|
|||||
Omega OP Units
|
7,277
|
8,769
|
|||||
Weighted-average common shares outstanding, diluted
|
213,523
|
207,816
|
|||||
Funds from operations available per share
|
$
|
0.67
|
$
|
0.71
|
|||
Adjustments to calculate adjusted funds from operations:
|
|||||||
Funds from operations
|
$
|
144,119
|
$
|
147,392
|
|||
Deduct one-time revenue
|
(972
|
)
|
—
|
||||
Add back acquisition costs
|
2,949
|
—
|
|||||
Add back one-time buy-out of purchase option
|
—
|
2,000
|
|||||
Add back one-time termination payment
|
1,118
|
—
|
|||||
Add back straight-line revenue write-off
|
1,229
|
—
|
|||||
Add back impairment for direct financing leases
|
7,700
|
—
|
|||||
Add back provision for uncollectible accounts
|
—
|
7,814
|
|||||
Add back restructuring costs
|
1,040
|
—
|
|||||
Add back non-cash stock-based compensation expense
|
4,070
|
4,056
|
|||||
Adjusted funds from operations (“AFFO”)
|
$
|
161,253
|
$
|
161,262
|
|||
Adjustments to calculate funds available for distribution:
|
|||||||
Non-cash interest expense
|
$
|
2,213
|
$
|
2,216
|
|||
Capitalized interest
|
(3,453
|
)
|
(2,296
|
)
|
|||
Non-cash revenues
|
(14,773
|
)
|
(17,380
|
)
|
|||
Funds available for distribution (“FAD”)
|
$
|
145,240
|
$
|
143,802
|
|||
As of March 31, 2019
|
As of March 31, 2019
|
|||||||||||||||||||
Balance Sheet Data
|
Total # of Properties
|
Total Investment ($000’s)
|
% of Investment
|
# of Operating Properties (1)
|
# of Operating Beds (1)
|
|||||||||||||||
Real Estate Investments
|
853
|
$
|
7,818,209
|
92
|
%
|
836
|
83,582
|
|||||||||||||
Direct Financing Leases
|
2
|
11,707
|
0
|
%
|
2
|
135
|
||||||||||||||
Mortgage Notes Receivable
|
53
|
703,739
|
8
|
%
|
53
|
5,715
|
||||||||||||||
908
|
$
|
8,533,655
|
100
|
%
|
891
|
89,432
|
||||||||||||||
Assets Held For Sale
|
2
|
645
|
||||||||||||||||||
Total Investments
|
910
|
$
|
8,534,300
|
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
|
779
|
$
|
6,984,762
|
82
|
%
|
767
|
81,655
|
$
|
86
|
|||||||||||||||
Senior Housing (2)
|
129
|
1,548,893
|
18
|
%
|
124
|
7,777
|
$
|
199
|
||||||||||||||||
908
|
$
|
8,533,655
|
100
|
%
|
891
|
89,432
|
$
|
95
|
||||||||||||||||
Assets Held For Sale
|
2
|
645
|
||||||||||||||||||||||
Total Investments
|
910
|
$
|
8,534,300
|
|||||||||||||||||||||
(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, 2019
|
||||||||
Rental Property
|
$
|
188,204
|
84
|
%
|
||||
Real Estate Tax and Ground Lease Income
|
3,973
|
2
|
%
|
|||||
Direct Financing Leases
|
260
|
0
|
%
|
|||||
Mortgage Notes
|
18,134
|
8
|
%
|
|||||
Other Investment Income and Miscellaneous Income - net
|
13,117
|
6
|
%
|
|||||
$
|
223,688
|
100
|
%
|
Revenue by Facility Type
|
Three Months Ended
|
|||||||
March 31, 2019
|
||||||||
Skilled Nursing Facilities/Transitional Care
|
$
|
179,383
|
80
|
%
|
||||
Senior Housing
|
27,215
|
12
|
%
|
|||||
Real Estate Tax and Ground Lease Income
|
3,973
|
2
|
%
|
|||||
Other
|
13,117
|
6
|
%
|
|||||
$
|
223,688
|
100
|
%
|
|||||
Rent/Interest Concentration by Operator
($000’s)
|
# of Properties (1)
|
2019 Q1
Annualized Contractual Rent/Interest (1)(2)
|
% of Total
Annualized Contractual Rent/Interest
|
|||||||||
Ciena
|
74
|
$
|
94,787
|
11.8
|
%
|
|||||||
Genesis
|
59
|
60,816
|
7.6
|
%
|
||||||||
Communicare
|
43
|
60,216
|
7.5
|
%
|
||||||||
Signature
|
58
|
51,138
|
6.4
|
%
|
||||||||
Saber
|
45
|
43,779
|
5.4
|
%
|
||||||||
HHC
|
44
|
35,939
|
4.5
|
%
|
||||||||
Guardian
|
35
|
34,695
|
4.3
|
%
|
||||||||
Maplewood
|
14
|
31,517
|
3.9
|
%
|
||||||||
Daybreak
|
57
|
29,888
|
3.7
|
%
|
||||||||
Diversicare
|
34
|
29,232
|
3.6
|
%
|
||||||||
Remaining Operators (3)
|
425
|
331,537
|
41.3
|
%
|
||||||||
888
|
$
|
803,544
|
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 three facilities due to their bankruptcy status; these facilities are expected to be transitioned or sold.
|
Geographic Concentration by Investment ($000’s)
|
Total # of Properties (1)
|
Total
Investment (1)
|
% of Total Investment
|
|||||||||
Florida
|
94
|
$
|
851,675
|
10.0
|
%
|
|||||||
Texas
|
114
|
830,656
|
9.7
|
%
|
||||||||
Michigan
|
53
|
693,818
|
8.1
|
%
|
||||||||
Indiana
|
66
|
596,962
|
7.0
|
%
|
||||||||
Ohio
|
58
|
591,963
|
6.9
|
%
|
||||||||
Pennsylvania
|
47
|
499,745
|
5.9
|
%
|
||||||||
California
|
54
|
497,585
|
5.8
|
%
|
||||||||
Virginia
|
19
|
281,534
|
3.3
|
%
|
||||||||
Tennessee
|
34
|
280,635
|
3.3
|
%
|
||||||||
Connecticut
|
6
|
277,267
|
3.3
|
%
|
||||||||
Remaining 31 states (2)
|
308
|
2,729,002
|
32.0
|
%
|
||||||||
853
|
8,130,842
|
95.3
|
%
|
|||||||||
United Kingdom
|
55
|
402,813
|
4.7
|
%
|
||||||||
908
|
$
|
8,533,655
|
100.0
|
%
|
||||||||
(1) Excludes two properties with total investment of $0.6 million classified as assets held for sale.
(2) Includes Inspir Carnegie Hill (f/k/a 2nd Avenue) development project.
|
Rent and Loan Maturities ($000's)
|
As of March 31, 2019
|
|||||||||||||||||||
Operating Lease Expirations
& Loan Maturities
|
Year
|
Lease Rent
|
Interest
|
Lease and Interest Rent
|
% of Total Annualized Contractual Rent/Interest
|
|||||||||||||||
2019
|
$ | - | $ | - | $ |
-
|
0.0
|
%
|
||||||||||||
2020
|
5,459
|
3,585 |
9,044 |
1.1
|
%
|
|||||||||||||||
2021
|
4,826 |
-
|
4,826 |
0.6
|
%
|
|||||||||||||||
2022
|
37,836 |
-
|
37,836 |
4.7
|
%
|
|||||||||||||||
2023
|
16,290 |
-
|
16,290 |
2.0
|
%
|
|||||||||||||||
Notes: Based on annualized 1st quarter 2019 contractual rent and interest.
|
Operator Revenue Mix (1)
|
Medicaid
|
Medicare / Insurance
|
Private / Other
|
|||||||||
Three-months ended December 31, 2018
|
54.8
|
%
|
33.3
|
%
|
11.9
|
%
|
||||||
Three-months ended September 30, 2018
|
53.9
|
%
|
33.7
|
%
|
12.4
|
%
|
||||||
Three-months ended June 30, 2018
|
52.7
|
%
|
34.8
|
%
|
12.5
|
%
|
||||||
Three-months ended March 31, 2018
|
51.3
|
%
|
36.4
|
%
|
12.3
|
%
|
||||||
Three-months ended December 31, 2017
|
52.9
|
%
|
34.6
|
%
|
12.5
|
%
|
||||||
(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, 2018
|
82.8
|
%
|
1.67
|
x
|
1.32
|
x
|
||||||
Twelve-months ended September 30, 2018
|
82.3
|
%
|
1.67
|
x
|
1.32
|
x
|
||||||
Twelve-months ended June 30, 2018
|
82.5
|
%
|
1.70
|
x
|
1.34
|
x
|
||||||
Twelve-months ended March 31, 2018
|
82.4
|
%
|
1.69
|
x
|
1.33
|
x
|
||||||
Twelve-months ended December 31, 2017
|
82.3
|
%
|
1.71
|
x
|
1.34
|
x
|
||||||
(1) Excludes all facilities considered non-core.
(2) Based on available (operating) beds.
|
Debt Maturities ($000’s)
|
Unsecured Debt
|
|||||||||||||||
Year
|
Line of Credit and Term Loans (1)
|
Senior Notes/Other (2)
|
Sub Notes (3)
|
Total Debt Maturities
|
||||||||||||
2019
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
2020
|
-
|
-
|
-
|
-
|
||||||||||||
2021
|
195,000
|
-
|
20,000
|
215,000
|
||||||||||||
2022
|
905,310
|
-
|
-
|
905,310
|
||||||||||||
2023
|
-
|
700,000
|
-
|
700,000
|
||||||||||||
2024
|
-
|
400,000
|
-
|
400,000
|
||||||||||||
Thereafter
|
-
|
2,250,000
|
-
|
2,250,000
|
||||||||||||
$
|
1,100,310
|
$
|
3,350,000
|
$
|
20,000
|
$
|
4,470,310
|
|||||||||
(1) The $195 million Line of Credit borrowings exclude $3.5 million net deferred financing costs and can be extended into 2022. The $905 million is comprised of a: $425 million term loan, £100
million term loan (equivalent to $130 million), $100 million term loan to Omega’s operating partnership and $250 million term loan (excludes $4.0 million net deferred financing costs related to the term loans). Excludes a $2 million secured
term loan related to the Company’s consolidated joint venture.
(2) Excludes net discounts and deferred financing costs.
(3) Excludes $0.2 million of fair market valuation adjustments.
|
||||||||||||||||
Investment Activity ($000's)
|
Three Months Ended
|
|||||||
March 31, 2019
|
||||||||
Funding by Investment Type
|
$ Amount
|
%
|
||||||
Construction-in-Progress
|
$
|
27,225
|
57.2
|
%
|
||||
Capital Expenditures
|
14,545
|
30.6
|
%
|
|||||
Other
|
5,799
|
12.2
|
%
|
|||||
Total
|
$
|
47,569
|
100.0
|
%
|
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