Workflow
Omega Healthcare Investors(OHI)
icon
Search documents
Omega Healthcare Investors (OHI) Upgraded to Buy: Here's What You Should Know
ZACKS· 2024-06-06 17:01
Omega Healthcare Investors (OHI) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by th ...
Omega Healthcare: You May Want To Wait For A Better Price
Seeking Alpha· 2024-06-03 10:30
SeventyFour/iStock via Getty Images Omega Healthcare Investors, Inc. (NYSE:OHI), incorporated in 1992 and headquartered in Hunt Valley, MD, is a REIT that owns and manages skilled nursing and assisted living facilities (SNFs/ALFs) in the United States. I believe that investors who are looking for a stable income source should consider some other vehicle because OHI hasn't performed very well in the past, it is uncertain when the market it serves will recover, and its dividend coverage is currently inadequat ...
Omega Healthcare: Clarity Regarding The Dividend Makes This 8.75% REIT Interesting
seekingalpha.com· 2024-05-21 19:00
PM Images Omega Healthcare Investors, Inc. (NYSE:OHI) has been one of my long-time favorite real estate investment trusts (REIT) because it focuses on long-term care (LTC) and skilled nursing facilities (SNF). The demand for SNF facilities is expected to increase over the next decade to the point where occupancy rates will outpace capacity, causing growth opportunities to bring on additional supply. Unlike the retail industry, where e-commerce is impacting brick-and-mortar locations, OHI will see a growing ...
Omega Healthcare Investors(OHI) - 2024 Q1 - Quarterly Report
2024-05-03 14:57
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OMEGA HEALTHCARE INVESTORS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...
Omega Healthcare Investors(OHI) - 2024 Q1 - Earnings Call Presentation
2024-05-03 14:20
($ in thousands) As of March 31, 2024 No. of Michigan New York Core Portfolio: Operator EBITDARM and EBITDAR Coverage 1) Cash yield for Washington D.C. is 6.0% in year 1, 7.0% in year 2, 8.0% in year 3, and 2.5% escalators for the remainder of the lease 2) Includes land and finance costs 3) Inception to Date Funding multiplied by Initial Cash Yield 4) Current quarter revenue already reflects fundings to date SELECTED CREDIT FACILITY AND UNSECURED NOTE COVENANTS (1) | --- | --- | --- | --- | --- | --- | --- ...
Omega Healthcare Investors(OHI) - 2024 Q1 - Quarterly Results
2024-05-02 20:33
[First Quarter 2024 Results and Recent Developments](index=1&type=section&id=First%20Quarter%202024%20Results%20and%20Recent%20Developments) [First Quarter 2024 Financial and Operational Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20and%20Operational%20Highlights) Omega reported strong Q1 2024 financial results with significant year-over-year growth in net income and Adjusted FFO, alongside substantial new investments and strategic debt repayment Q1 2024 Key Financial Metrics vs. Q1 2023 | Metric | Q1 2024 ($) | Q1 2023 ($) | | :--- | :--- | :--- | | Net Income | $69 million | $37 million | | Net Income per Share | $0.27 | $0.15 | | Nareit FFO | $153 million | $146 million | | Nareit FFO per Share | $0.60 | $0.60 | | Adjusted FFO (AFFO) | $176 million | $160 million | | AFFO per Share | $0.68 | $0.66 | | FAD | $168 million | $147 million | | FAD per Share | $0.65 | $0.60 | - Completed **$75 million** in new investments in Q1 2024 and an additional **$165 million** in Q2 2024 to date[5](index=5&type=chunk) - Repaid **$400 million** of senior unsecured notes on April 1, 2024[5](index=5&type=chunk) - Issued **1 million** common shares for gross proceeds of **$33 million**[5](index=5&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Taylor Pickett highlighted Q1 financial performance exceeding expectations due to strong interest income and improving operating fundamentals, while expressing concerns about new staffing regulations - Q1 financial performance exceeded expectations due to higher interest income and earlier-than-anticipated cash payments from a turnaround asset[4](index=4&type=chunk) - Operating fundamentals are improving, with occupancy and agency labor usage trending favorably, resulting in a Q1 standalone **EBITDAR coverage of 1.42x**, excluding stimulus[4](index=4&type=chunk) - Restructuring of the Guardian portfolio is complete, while efforts for LaVie and Maplewood are ongoing with expectations for incremental cash payments as the year progresses[4](index=4&type=chunk) - The company expressed disappointment with the recently announced final ruling on minimum staffing, believing it will place an unnecessary burden on the industry[6](index=6&type=chunk) [Financial Performance](index=3&type=section&id=Financial%20Performance) [First Quarter 2024 Results (P&L Analysis)](index=3&type=section&id=First%20Quarter%202024%20Results) Q1 2024 saw total revenues increase to $243.3 million and expenses decrease, leading to a substantial rise in net income to $69.3 million Q1 2024 vs Q1 2023 Income Statement Summary | Item | Q1 2024 ($M) | Q1 2023 ($M) | Change ($M) | | :--- | :--- | :--- | :--- | | Total Revenues | 243.3 | 218.2 | +25.1 | | Total Expenses | 174.1 | 199.8 | -25.7 | | Other Income | 2.6 | 16.4 | -13.8 | | Net Income | 69.3 | 36.8 | +32.5 | - The increase in revenue was primarily driven by the timing and impact of operator restructurings and transitions, as well as revenue from new investments[6](index=6&type=chunk) - The decrease in expenses was mainly due to a lower impairment on real estate properties (**$5.3 million** in Q1 2024 vs **$39.0 million** in Q1 2023) and reduced depreciation and interest expenses[7](index=7&type=chunk)[42](index=42&type=chunk) [Balance Sheet and Liquidity](index=6&type=section&id=Balance%20Sheet%20and%20Liquidity) Omega maintained strong liquidity as of March 31, 2024, with $361.8 million in cash and $1.4 billion in undrawn credit, while managing $5.1 billion in total debt Debt Profile as of March 31, 2024 | Debt Component | Amount ($M) | | :--- | :--- | | Senior Unsecured Notes | 4,600.0 | | Unsecured Term Loans | 478.5 | | Secured Debt | 19.8 | | Revolving Credit Facility | 20.2 | | **Total Indebtedness** | **~5,100.0** | - As of March 31, 2024, the company had **$361.8 million** in cash and cash equivalents and **$1.4 billion** of undrawn capacity under its unsecured revolving credit facility[25](index=25&type=chunk) - On April 1, 2024, the company repaid its **$400.0 million** 4.950% senior notes that matured, using invested cash and borrowings from its credit facility[26](index=26&type=chunk) [Portfolio Activity and Operations](index=3&type=section&id=Portfolio%20Activity%20and%20Operations) [Portfolio Updates](index=3&type=section&id=2024%20First%20Quarter%20Portfolio%20and%20Recent%20Activity) Omega actively managed its portfolio in Q1 2024 through operator restructurings, new investments totaling $75 million, and asset sales, with accelerated investment activity into Q2 [Operator Updates](index=3&type=section&id=Operator%20Updates) Omega completed the Guardian portfolio restructuring in April, while LaVie and Maplewood made partial rent payments as their restructurings continue - **Guardian:** The restructuring was completed in April 2024 with the transition of the remaining six facilities to a new operator for an initial annual rent of **$5.5 million**[12](index=12&type=chunk) - **LaVie:** Paid **$4.4 million** in rent in Q1 2024 and **$1.5 million** in April 2024[10](index=10&type=chunk) - **Maplewood:** Paid **$11.3 million** in rent in Q1 2024 and **$3.8 million** in April 2024[11](index=11&type=chunk) [Investment Activities](index=4&type=section&id=New%20Investments) Omega invested $75.0 million in Q1 2024, primarily in real estate loans, and accelerated investments in Q2 with an additional $165.4 million deployed Q1 2024 New Investments ($75.0M Total) | Investment Type | Amount ($M) | % of Total | | :--- | :--- | :--- | | Real estate loans receivable | 41.2 | 55.0% | | Construction-in-progress | 14.8 | 19.7% | | Real property | 13.3 | 17.7% | | Capital expenditures | 5.7 | 7.6% | - In Q2 2024 to date, the company closed on **$165.4 million** in new investments, including **$71.7 million** in loans and **$93.7 million** in real estate acquisitions[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) [Asset Dispositions](index=4&type=section&id=Asset%20Sales%20and%20Impairments) Omega sold four facilities for $10.1 million, recorded a $5.3 million impairment, and classified 16 facilities with an $81.5 million book value as held for sale - Sold four facilities for **$10.1 million** in cash, resulting in a loss of **$1.4 million**[17](index=17&type=chunk) - Recorded a **$5.3 million** net impairment charge to reduce the book value of three facilities to their estimated fair value[17](index=17&type=chunk) - As of quarter-end, **16 facilities** were classified as assets held for sale, with a total net book value of **$81.5 million**[18](index=18&type=chunk) [Operator Coverage Data](index=5&type=section&id=OPERATOR%20COVERAGE%20DATA) Operator portfolio fundamentals improved, with occupancy rising to 79.6% and EBITDAR coverage increasing to 1.33x, while Medicaid remained the primary payor source Operator Occupancy and Coverage Trends (Trailing 12-Months) | Period Ended | Occupancy | EBITDARM Coverage (Before Mgmt Fee) | EBITDAR Coverage (After Mgmt Fee) | | :--- | :--- | :--- | :--- | | Dec 31, 2023 | 79.6% | 1.69x | 1.33x | | Sep 30, 2023 | 79.1% | 1.63x | 1.28x | | Jun 30, 2023 | 78.6% | 1.50x | 1.15x | | Mar 31, 2023 | 78.0% | 1.44x | 1.10x | | Dec 31, 2022 | 77.0% | 1.38x | 1.04x | - For the three months ended December 31, 2023, the operator revenue mix was **55.3% Medicaid**, **28.0% Medicare/Insurance**, and **16.7% Private/Other**[20](index=20&type=chunk) [Outlook and Shareholder Information](index=6&type=section&id=Outlook%20and%20Shareholder%20Information) [2024 Guidance](index=6&type=section&id=2024%20GUIDANCE%20AFFIRMED) Omega affirmed its 2024 Adjusted FFO guidance of $2.70 to $2.80 per diluted share, noting it is subject to various operational and transactional factors - The company affirmed its 2024 Adjusted FFO guidance to be between **$2.70** and **$2.80 per diluted share**[28](index=28&type=chunk) - Guidance is subject to change based on factors like the timing of rent collection, acquisitions, divestitures, and restructurings[29](index=29&type=chunk) [Dividends](index=6&type=section&id=DIVIDENDS) The Board of Directors declared a quarterly cash dividend of $0.67 per common share on April 18, 2024, payable on May 15, 2024 - A quarterly cash dividend of **$0.67 per share** was declared on April 18, 2024[27](index=27&type=chunk) [Financial Statements](index=9&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=9&type=section&id=OMEGA%20HEALTHCARE%20INVESTORS%2C%20INC.%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2024, Omega reported total assets of **$9.01 billion**, total liabilities of **$5.31 billion**, and total equity of **$3.70 billion**, showing slight changes from year-end 2023 Consolidated Balance Sheet Summary (in thousands) | | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Total real estate investments** | **$7,357,181** | **$7,378,929** | | Cash and cash equivalents | $361,773 | $442,810 | | **Total assets** | **$9,011,848** | **$9,117,402** | | **Total liabilities** | **$5,311,255** | **$5,355,111** | | **Total equity** | **$3,700,593** | **$3,762,291** | | **Total liabilities and equity** | **$9,011,848** | **$9,117,402** | [Consolidated Statements of Operations](index=10&type=section&id=OMEGA%20HEALTHCARE%20INVESTORS%2C%20INC.%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q1 2024, Omega's total revenues increased to **$243.3 million**, resulting in net income available to common stockholders of **$67.4 million**, or **$0.27 per diluted share** Consolidated Statements of Operations Summary (in thousands) | | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | Total revenues | $243,299 | $218,202 | | Total expenses | $174,072 | $199,831 | | Net income | $69,346 | $36,845 | | **Net income available to common stockholders** | **$67,361** | **$35,942** | | **Diluted EPS** | **$0.27** | **$0.15** | [Reconciliation of Non-GAAP Measures](index=11&type=section&id=OMEGA%20HEALTHCARE%20INVESTORS%2C%20INC.%20Nareit%20FFO%2C%20Adjusted%20FFO%20and%20FAD%20Reconciliation) For Q1 2024, Net Income of **$69.3 million** was reconciled to **Nareit FFO of $153.1 million**, **Adjusted FFO (AFFO) of $176.1 million**, and **Funds Available for Distribution (FAD) of $167.9 million** Q1 2024 Reconciliation from Net Income to FAD (in thousands) | Metric | Amount (in thousands) | | :--- | :--- | | Net income | $69,346 | | Adjustments (Depreciation, Impairment, etc.) | +$83,776 | | **Nareit FFO** | **$153,122** | | Adjustments (Credit losses, stock comp, etc.) | +$22,996 | | **Adjusted FFO (AFFO)** | **$176,118** | | Adjustments (Non-cash revenue/expense) | -$8,201 | | **Funds Available for Distribution (FAD)** | **$167,917** |
Omega Healthcare Investors: Dividend Safety Has Become A Concern (Rating Downgrade)
Seeking Alpha· 2024-04-30 16:34
Khosrork/iStock via Getty Images OHI stock downgraded to SELL Readers following my writings know that I have been a bull for Omega Healthcare Investors (NYSE:OHI) since 2021 after the COVID-19 interruption. Besides the rebound potential I expect after the pandemic, its dividend was another draw. At the time of my earlier bullish writings, the stock has been yielding around 9% (see the chart below). More recently, in Oct 2023, I wrote an update to downgrade the stock from BUY to HOLD (see the second char ...
Omega Healthcare Investors(OHI) - 2023 Q4 - Annual Report
2024-02-12 15:07
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OMEGA HEALTHCARE INVESTORS, INC. (Exact Name of Registrant as Specified in its Charter) (Omega Healthcare Investors, Inc.) (Omega Healthcare Investors, Inc. ...
Omega Healthcare Investors(OHI) - 2023 Q4 - Earnings Call Presentation
2024-02-08 18:35
| --- | --- | --- | --- | |------------------------------------|---------------------------|----------------------------------------|-----------------------------------| | U NSECURED N OTES Quarter Ending | Debt / Adj. Total Assets | Unencumbered Assets / Unsecured Debt | Secured Debt / Adj. Total Assets | | Requirement | <= 60% | >= 150% | <= 40% | | March 31, 2023 | 50% | 197% | 0% | | June 30, 2023 | 48% | 202% | 0% | | September 30, 2023 | 48% | 202% | 0% | | December 31, 2023 | 48% | 203% | 0% | | Stat ...
Omega Healthcare Investors(OHI) - 2023 Q3 - Quarterly Report
2023-11-03 15:14
Table of Contents FORM 10-Q (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 303 International Circle, Suite 200, Hunt Valley, MD 21030 (Address of principal executive offices) (410) 427-1700 (Exact name of registrant as specified in its charter) ...