Company Overview - Omega Healthcare Investors (OHI) is the largest Skilled Nursing Facilities (SNF)-focused REIT with a total real estate investment of $9.9 billion[16] - The company has 866 properties across the US and the UK, operated by 73 different operators[16,104] - Omega collected approximately 91% of its 1Q24 contractual rent and mortgage payments from its operators[32] Financial Performance - Omega has demonstrated consistent growth with a 12.7% CAGR in gross investments and a 12.9% CAGR in Adjusted EBITDA[149,153] - The company's dividend yield is 8.5%, with a dividend CAGR of 7.1%[16,160] - Omega's management targets a Funded Debt to Adjusted EBITDA ratio between 40x and 50x[182] Market Dynamics and Strategy - SNFs are the highest discharge destination from Medicare FFS hospitals, accounting for 19.3% of discharges[70] - The company estimates that SNF demand will outstrip supply by 2030, driven by an aging population[140] - Omega's strategy includes growth through accretive investments, maintaining financial strength, and continuing solid dividend growth[29] - Omega committed $10 million to fund 50% of the expected debtor-in-possession financing for LaVie Care Centers[36]

Financial Data and Key Metrics Changes - Normalized FFO increased by 67.4% year-over-year to $77,800,000, while normalized FAD rose by 66% to $80,800,000 [18] - On a per share basis, normalized FFO increased by $0.07 or 20% to $0.42, and normalized FAD increased by $0.06 or 16.2% to $0.43 [18] - Total cash rental revenues for the year are projected to be approximately $284,000,000, excluding amortization of lease intangibles [20] Business Line Data and Key Metrics Changes - In Q1, the company completed three new investments totaling over $47,000,000 at a yield of approximately 10% [12] - Year-to-date investment total reached approximately $82,000,000 at a yield of approximately 10% [13] - The investment pipeline is currently strong, sitting at approximately $500,000,000, primarily consisting of real estate acquisitions [14] Market Data and Key Metrics Changes - The acquisition of Care REIT will diversify the company's business in terms of operator concentration, geography, payer sources, and asset classes [9] - The deal is expected to bring U.S. Skilled Nursing concentration down to approximately 49% by property count and 63% by rental income [9] Company Strategy and Development Direction - The strategic acquisition of Care REIT marks the company's entry into the UK market and is the largest deal in its history [6] - The acquisition is expected to be accretive in year one and adds a new growth engine for the company [10] - The company is focused on ensuring that its U.S. growth engine remains robust while expanding into the UK [11] Management's Comments on Operating Environment and Future Outlook - Management is monitoring potential Medicaid cuts but sees bipartisan support for Medicaid and care for seniors in nursing homes [28] - The company is optimistic about the strength of its overall portfolio, with coverage ratios improving [78] - Management expressed confidence in the UK market's potential and is actively reviewing acquisition opportunities [15] Other Important Information - The company raised guidance for normalized FFO per share to $1.69 to $1.73 and for normalized FAD per share to $1.73 to $1.77 [19] - Liquidity remains strong, with a net debt to normalized EBITDA ratio of 0.5 times and a fixed charge coverage ratio of 15.2 times [22][23] Q&A Session Summary Question: Comments on macro expectations regarding policy and provider taxes - Management is monitoring the process regarding potential Medicaid cuts and sees bipartisan support for Medicaid [28] Question: Conditions for entering into a debt investment - The company prioritizes acquisitions but may consider debt investments if they build strategic relationships [30] Question: Changes to annualized earnings or FAD accretion from the Care REIT transaction - Management will provide answers regarding the Care REIT transaction in a week [35] Question: Reasonable volume or investment pipeline for the UK market - The UK pipeline will take time to mature, with a wider range of cap rates expected compared to the U.S. [37] Question: Update on the performance of properties over the last six to nine months - Management is waiting for financial disclosures but believes the coverage ratios are strong [42] Question: Trends regarding cash-paying tenants and overall portfolio strength - Management feels confident about the strength of the overall portfolio and is managing non-paying tenants [78] Question: Access to financing for operators - Management is not seeing challenges in access to financing for operators [86]