Omega Healthcare Investors(US:OHI)2025-07-31 20:17Financial Performance - Net income for Q2 2025 was $140 million, or $0.46 per common share, compared to $117 million, or $0.45 per common share, for Q2 2024[6] - Adjusted Funds From Operations (AFFO) for Q2 2025 was $232 million, or $0.77 per common share, up from $185 million, or $0.71 per common share, for Q2 2024[6] - Funds Available for Distribution (FAD) for Q2 2025 was $223 million, or $0.74 per common share, compared to $177 million, or $0.68 per common share, for Q2 2024[6] - Total revenues for the three months ended June 30, 2025, increased to $282.5 million, up 11.8% from $252.7 million in the same period of 2024[44] - Net income for the three months ended June 30, 2025, was $140.5 million, compared to $117.1 million for the same period in 2024, representing a 19.9% increase[44] - Earnings per common share for the three months ended June 30, 2025, were $0.46, consistent with the same period in 2024[44] - Nareit Funds From Operations (FFO) for the three months ended June 30, 2025, were $213.5 million, an increase from $189.1 million in the same period of 2024[46] - Adjusted Funds From Operations (AFFO) for the three months ended June 30, 2025, were $232.2 million, compared to $185.0 million for the same period in 2024, reflecting a 25.3% increase[46] - Total expenses for the three months ended June 30, 2025, were $171.9 million, up from $149.9 million in the same period of 2024, marking a 14.7% increase[44] Investments and Acquisitions - The company completed approximately $527 million in new investments in Q2 2025, including $502 million in real estate acquisitions and $25 million in real estate loans[6] - The Company holds $233 million in mortgages and other real estate-backed investments set to mature in 2025, with $65 million expected to convert from loans to fee simple real estate[31] - The revised AFFO guidance for 2025 includes $605 million in new real property and loan investments completed year-to-date through June 2025[31] Debt and Financing - The company issued $600 million of 5.2% senior unsecured notes due in 2030[6] - As of June 30, 2025, the company had $5.0 billion in outstanding indebtedness with a weighted-average annual interest rate of 4.6%[26] - The company extended the maturity date of its $1.45 billion unsecured revolving credit facility to October 30, 2025[28] - The guidance assumes repayment of $600 million of senior unsecured notes due in January 2026[31] Dividends - A quarterly cash dividend of $0.67 per share was declared, to be paid on August 15, 2025[30] - The company declared dividends of $0.67 per common share for the three months ended June 30, 2025, unchanged from the same period in 2024[44] Assets and Liabilities - Total real estate assets increased to $9.611 billion as of June 30, 2025, compared to $9.060 billion as of December 31, 2024[42] - Cash and cash equivalents rose to $734.184 million as of June 30, 2025, up from $518.340 million as of December 31, 2024[42] - Total liabilities increased to $5.357 billion as of June 30, 2025, compared to $5.167 billion as of December 31, 2024[42] - The Company reported cumulative net earnings of $4.333 billion as of June 30, 2025, an increase from $4.087 billion as of December 31, 2024[42] Operational Updates - The company reported a gain on assets sold of $22.9 million for the three months ended June 30, 2025, compared to $12.9 million in the same period of 2024[44] - The company incurred $9.0 million in severance expenses during the six months ended June 30, 2025[46] - The company recognized a $15.5 million non-cash straight-line accounts receivable write-off related to an operator's transition to cash basis[47] Guidance and Future Outlook - The company increased its 2025 AFFO guidance to a range of $3.04 to $3.07 per share, up from the previous range of $2.95 to $3.01 per share[5] - The guidance assumes quarterly G&A expenses of approximately $13.5 million to $14.5 million[31] - The guidance assumes no material changes in foreign currency exchange rates due to derivative instruments entered into to minimize fluctuations in GBP spot rates[31] Conference Call - The Company will conduct a conference call on August 1, 2025, to review its second quarter results and current developments[35]