Financial Data and Key Metrics Changes - For Q1 2025, net income per diluted common share was $0.74, up 4.2% from the prior year [17] - Net FFO per diluted common share increased 3.6% to $1.14, while normalized FFO rose 2.7% to $1.15 compared to the prior year [17][18] - FAD for the quarter increased 9.9% to $56 million [18] - Cash rent from the Real Estate Investment segment increased by $2.6 million, attributed to acquisitions and percentage revenue rents [18] Business Line Data and Key Metrics Changes - SHOP segment NOI increased 4.9% year over year to $3.1 million, with resident fees up 5.2% driven by occupancy improvement [16][19] - The discretionary senior housing portfolio had a coverage of 1.67 times, while the SNF portfolio reported solid coverage of 3.06 times [14] Market Data and Key Metrics Changes - The company has an active investment pipeline of approximately $264 million, with a focus on senior housing [6][11] - The market shows a limited buyer pool, but an increasing number of sellers, leading to a competitive environment for acquisitions [11][78] Company Strategy and Development Direction - The company is focused on growing its SHOP portfolio through internal conversions and optimizing its existing portfolio [8][10] - A significant investment pipeline is being pursued, with a goal to surpass last year's total investments of $237.5 million [10][24] - The company is cautious about pursuing growth for growth's sake, emphasizing quality over quantity in acquisitions [7][56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the near-term outlook, raising normalized FFO guidance midpoint by $0.08 per share to $4.71, representing a year-over-year growth of 6.1% [6][23] - The company is maintaining its outlook for 12% to 15% NOI growth for the year, despite typical seasonality in the first quarter [9][24] Other Important Information - The company recorded a $1.2 million charge in transaction costs related to a large SHOP portfolio that was ultimately not pursued [7] - The balance sheet remains strong, with a net debt to adjusted EBITDA ratio of 4.1 times, well within the stated leverage policy [21][22] Q&A Session Summary Question: Update on NHC lease process and Medicaid clarity - Management is in dialogue with NHC regarding lease renewal and navigating Medicaid issues, with an independent committee assisting in strategy [31][32] Question: Reasons for low SHOP performance in Q1 - Management noted seasonality and a one-time expense affecting performance, but remains positive about future growth [34][35] Question: Status of SLM mezzanine loans - SLM situation is largely wrapped up, with potential for additional payments as facilities are sold [36] Question: Transition process with Discovery and potential rent impacts - Management anticipates some noise during the transition but is confident in maintaining FAD guidance [41][45] Question: Insights on the large SHOP portfolio that did not close - The decision was based on the portfolio not fitting the company's growth strategy at this time [54][56] Question: Timing for bond market tapping - The company is preparing to tap the bond market later in the year, with a minimum raise of $300 million expected [87][88]

Financial Data and Key Metrics Changes - The company reported a net income per diluted common share of $0.74, up 4.2% from the prior year [17] - Net FFO per diluted common share increased 3.6% to $1.14, while normalized FFO increased 2.7% to $1.15 compared to the prior year [17] - FAD for the quarter increased 9.9% to $56 million [17] - Cash rent from the Real Estate Investment segment increased by $2.6 million, attributed to acquisitions and percentage revenue rents [18] Business Line Data and Key Metrics Changes - The SHOP segment's NOI increased 4.9% year over year to $3.1 million, with resident fees up 5.2% driven by occupancy improvement [15][19] - The discretionary senior housing portfolio had a coverage of 1.67 times, while the SNF portfolio reported solid coverage of 3.06 times [14] Market Data and Key Metrics Changes - The company has an active investment pipeline of approximately $264 million, with a focus on senior housing [5][11] - The balance sheet remains strong, with a net debt to adjusted EBITDA ratio of 4.1 times, well within the stated leverage policy [21] Company Strategy and Development Direction - The company is focused on growing its SHOP portfolio through internal conversions and has made significant investments in acquisitions [5][6] - The company is not pursuing growth for growth's sake and is selective in its investment strategy [6][78] - The company aims to maintain a competitive cost of capital and solid access to debt and equity capital [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about surpassing last year's investment total of $237.5 million due to a strong start in 2025 [10] - The company maintains its outlook for 12% to 15% NOI growth this year, despite typical seasonality in the first quarter [8][16] - Management is closely monitoring the potential impact of Medicaid cuts on the portfolio but believes geographic exposure can mitigate risks [14] Other Important Information - The company declared a $0.90 per share dividend for shareholders of record on June 30, 2025 [23] - The updated full-year guidance for NAREIT FFO and normalized FFO per diluted common share is $4.67 and $4.71, representing increases of 2.6% and 6.1% respectively over 2024 [23][24] Q&A Session Summary Question: Update on NHC and Medicaid clarity - Management is in dialogue with NHC regarding lease renewal and is cautious about discussing land and buildings due to legal monitoring [30] Question: SHOP performance in Q1 - Management acknowledged a one-time expense affecting performance but noted that seasonality was expected [34] Question: Status of SLM mezz loans - Management indicated that SLM is largely wrapped up, with potential for additional payments as facilities are sold [36] Question: Discovery transition and potential disruptions - Management expects some noise during the transition but is confident in maintaining FAD guidance [40][44] Question: Impact of percentage rent on tenant profitability - Management stated that the percentage rent was factored into projections and that tenant performance is improving [46] Question: SHOP occupancy and incentives - Management explained that occupancy challenges are due to a subset of buildings not reaching 90% and the need for incentives to maintain occupancy [62] Question: Large SHOP portfolio that fell out of pipeline - Management decided not to pursue the portfolio due to concerns about its fit and potential returns [53] Question: Unidentified new investments mix - Management indicated a mix of property investments and debt financing, primarily focusing on fee simple arrangements [55] Question: Timing for NOI transition with Discovery - Management is targeting the third quarter for the transition, subject to legal review [57] Question: Drivers of increased deal flow - Management noted that sellers are realizing current market conditions, leading to increased activity [74]

Financial Performance - Net income per diluted share increased from $0.71 in Q1 2024 to $0.74 in Q1 2025[8] - NAREIT FFO per diluted share increased from $1.10 in Q1 2024 to $1.14 in Q1 2025[8] - Funds Available for Distribution (FAD) increased by 9.9% from $50.975 million in Q1 2024 to $56.001 million in Q1 2025[8] - Lease revenue excluding straight-line, lease amortization, and escrow reimbursement revenue of $65.3 million increased 8.0% compared to Q1 2024[11] SHOP Performance - SHOP NOI increased by 4.9% to $3.1 million in Q1 2025 compared to the prior year period[11] - SHOP NOI margin was 22.1% in Q1 2025, a decrease of 10 bps compared to the prior year period[11] - Average SHOP occupancy increased by 390 bps year-over-year to 89.2% in Q1 2025[11] - The company continues to estimate 12%-15% NOI growth for SHOP in 2025[11, 21] Balance Sheet and Investments - Net Debt to Adjusted EBITDA was 4.1x, at the low end of the company's target range of 4.0x – 5.0x[11] - The company announced 2025 YTD investments totaling $174.9 million at an average initial yield of approximately 8.2%[11] - The company is evaluating a pipeline of investment opportunities valued at approximately $264 million[11]

Financial Data and Key Metrics Changes - Adjusted funds from operations (AFFO) for Q1 2025 were $0.75 per share, and funds available for distribution (FAD) were $0.71 per share, reflecting revenue and EBITDA growth, with leverage reduced to 3.7x debt to EBITDA [5][12] - Revenue for Q1 2025 was $277 million, up from $243 million in Q1 2024, primarily due to new investments and operator restructurings [9] - Net income for Q1 2025 was $112 million or $0.33 per share, compared to $69 million or $0.27 per share in Q1 2024 [10] Business Line Data and Key Metrics Changes - The percentage of private pay and other revenue increased from 8% ten years ago to 39% today, with expectations for continued growth in this area [8] - Maplewood paid $15.6 million in rent in Q1 2025, an increase of $3.3 million from Q4 2024, and occupancy for the Maplewood portfolio reached 94% as of April 2025 [20] Market Data and Key Metrics Changes - The UK market accounted for approximately 93% of total new investments in Q1 2025, with a strong pipeline of opportunities [23][25] - The trailing twelve-month operator EBITDAR coverage for the core portfolio increased to 1.51x as of December 31, 2024, indicating improved performance [18] Company Strategy and Development Direction - The company is focused on disciplined and sustainable investment decisions while expanding its operator base in both the US and UK markets [18][24] - Omega is looking to opportunistically fund investments with equity, positioning itself for outsized adjusted FFO growth [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability of Genesis to continue paying rent despite recent liquidity issues, citing strong coverage metrics [6][33] - The company remains optimistic about the overall coverage and fundamentals improving in the healthcare sector, despite potential Medicaid cuts [28][29] Other Important Information - The company raised and narrowed its full-year adjusted FFO guidance to a range between $2.95 to $3.01 per share [14] - The company has a strong balance sheet with $368 million in cash and full borrowing capacity of its $1.45 billion credit facility [12] Q&A Session Summary Question: Details on Genesis and its rent payment issues - Management indicated that Genesis's recent rent payment issues were a one-time event related to their ABL lender tightening availability, and they expect continued payments moving forward [31][33] Question: Insights on the UK portfolio acquisition - The UK acquisition was facilitated by a strong platform and relationships with multiple operators, allowing for a quick and efficient transaction [39][41] Question: Impact of immigration on labor availability - No significant impact on labor availability or wage pressures has been observed at this time [45] Question: Genesis's operating fundamentals - Coverage metrics for Genesis have improved, with the portfolio consistently above 1.5 times [47] Question: Provider tax and Medicaid changes - The greatest risk to traditional Medicaid is provider taxes, which may see slight reductions, but the overall impact remains uncertain [76][78] Question: Disposition strategy and market opportunities - The company executed dispositions to redeploy capital effectively, taking advantage of attractive offers for non-core assets [82][84]

Financial Data and Key Metrics Changes - Adjusted funds from operations (AFFO) for Q1 2025 were $0.75 per share, and funds available for distribution (FAD) were $0.71 per share, reflecting revenue and EBITDA growth [6][11] - Revenue for Q1 2025 was $277 million, up from $243 million in Q1 2024, primarily due to new investments and operator restructurings [10] - Net income for Q1 2025 was $112 million, or $0.33 per share, compared to $69 million, or $0.27 per share, in Q1 2024 [10][11] - NAREIT FFO for Q1 was $184 million, or $0.62 per share, compared to $153 million, or $0.60 per share, in Q1 2024 [11] Business Line Data and Key Metrics Changes - The percentage of private pay and other revenue increased from 8% ten years ago to 39% today, with expectations for continued growth [9] - Maplewood's occupancy for its core portfolio reached 94% as of April 2025, with rent payments improving significantly [20] Market Data and Key Metrics Changes - The trailing twelve-month operator EBITDAR coverage for the core portfolio increased to 1.51x as of December 31, 2024, compared to 1.50x for the previous period [18] - Omega's investment activity in Q1 2025 included over $423 million in new real estate investments and $34 million in CapEx investments [22] Company Strategy and Development Direction - The company raised and narrowed its full-year adjusted FFO guidance to a range between $2.95 to $3.01 per share, assuming no change in revenue related to operators [14] - Omega is focusing on disciplined and sustainable investment decisions while serving a complex resident population across various asset types and markets [19] - The company continues to prioritize capital allocation towards accretive owned real estate deals that grow its balance sheet [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability of Genesis to continue paying rent, despite recent liquidity issues [7][35] - The company remains optimistic about the overall coverage and fundamentals improving, with no significant changes expected in the lending environment [29][63] - Management is closely monitoring potential Medicaid reforms and their implications for the business [29][81] Other Important Information - The company completed a $344 million investment for a portfolio of 45 care homes across the UK and Jersey, with an initial cash yield of 10% [24] - The federal judge ruled in favor of the industry regarding staffing mandates, which is expected to save the federal government $22 billion over ten years [28] Q&A Session Summary Question: Details on Genesis not paying rent and interest in March - Management indicated that Genesis has a weak balance sheet, and the shortfall was a one-time issue related to their ABL lender [34][36] Question: More details on the UK portfolio acquisition - The acquisition involved six operators and was completed quickly due to the company's strong platform in the UK [41][42] Question: Impact of immigration on labor availability and wage pressures - Management has not seen any significant impact from immigration on labor availability or wage pressures at this time [46] Question: Genesis operating fundamentals - Coverage metrics for Genesis have improved, with the portfolio consistently above 1.5 times [47] Question: Cap rates for yields on first quarter dispositions - Management indicated that the dispositions were both opportunistic and part of a cleanup of non-core assets [85]