OMEGA HEALTHCARE INVESTORS, INC. OMEGA HEALTHCARE
INVESTORS
INVESTOR
PRESENTATION
March 2024
Disclaimers; Forward-looking Statements and Non-GAAP Information
- This presentation may include projections and other "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to future events and expectations and involve unknown risks and uncertainties. Omega's actual results or actions may differ materially from those projected in the forward-looking statements. For a summary of the specific risk factors that could cause results to differ materially from those expressed in the forward-looking statements, see Omega's filings with the Securities and Exchange Commission.
- This presentation may contain certain non-GAAP financial information including EBITDA, Adjusted EBITDA, Total Adjusted Debt (a/k/a, Funded Debt), Adjusted FFO, FAD, Total Cash Fixed Charges and certain related ratios. A reconciliation of these non-GAAP disclosures is available in our Quarterly Supplements posted on the Financial Information section of our website at https://www.omegahealthcare.com/investors. Other financial information is also available on our website.
- Information presented on operator revenue mix, census and coverage data is based on information provided by our operators for the indicated periods ended. We have not independently verified this information, and we are providing this data for informational purposes only. Information on operator coverage calculations can be found under "Portfolio Metrics" in our most recent quarterly supplement available at our Investor Relations website at www.omegahealthcare.com.
- Information is provided as of December 31, 2023, unless specifically stated otherwise. We assume no duty to update or supplement the information provided.
- The sourcing of all information provided in this presentation can be found starting on page 59.
INVESTOR PRESENTATION 2
Table of Contents
Page
4 Company Profile & Strategy
11 Why Invest?
15 Skilled Nursing Facilities:
What Makes it an Attractive Asset Class?
24 Strong Portfolio of Skilled Operators
34Benefits of Investing in Long-term Care
39 Excellent Financials and Execution Track Record
46 Proven Investment Strategy for Future Growth
51 Liquidity Structure & Credit Profile
57 Commitment to ESG Principles
59 Sources & Appendix
INVESTOR PRESENTATION | 3 |
1
Company
Profile &
Strategy
INVESTOR PRESENTATION | 4 |
OMEGA SNAPSHOT
(NYSE:OHI)
1992 | $9.9B | $12.9B |
Year Listed | Total RE Investments | Enterprise Value |
69 | 862 | 84,125 |
Operators | Properties (US & UK) | Number of Beds |
BBB- | 31% | 8.7% |
Investment Grade | 5-Year TSR | Dividend Yield |
For source information see page 59 onwards | INVESTOR PRESENTATION 5 |
Differentiators that Support Today's Strength and Tomorrow's Opportunity
1 | Largest Skilled |
Nursing Facilities | |
(SNF) focused REIT | |
2 | Consistent dividend |
growth | |
3 | Diversified geographic |
exposure and tenant base | |
4 | Proven acquisition and |
development capabilities |
Long-term triple net master leases provide lower risk, steady income
Positioned to benefit from macro tailwinds
Investment grade credit with ample liquidity
Strong corporate governance program
5
6
7
8
INVESTOR PRESENTATION | 6 |
Experienced and Proven Management Team
Taylor Pickett
Chief Executive Officer
39 years in industry
23 years at OHI
Gail Makode
Chief Legal Officer
25 years in industry
5 years at OHI
Vikas Gupta
SVP, Acquisitions & Development
21 years in industry
13 years at OHI
Dan Booth
Chief Operating Officer
38 years in industry
23 years at OHI
Neal Ballew
Chief Accounting Officer
14 years in industry
4 years at OHI
Megan Krull
SVP, Operations
24 years in industry
14 years at OHI
Bob Stephenson
Chief Financial Officer
38 years in industry
23 years at OHI
Matthew Gourmand
SVP, Corporate Strategy
26 years in industry
7 years at OHI
INVESTOR PRESENTATION | 7 |
Strategy that Supports Long-Term Shareholder Value Creation
Growth Through
Accretive Investments
Maintain | Shareholder | Continued |
Financial | Value Creation | Solid Dividend |
Strength | Growth |
Leverage Sound
Corporate Stewardship
Practices
INVESTOR PRESENTATION 8
COVID-19 Update
Impact | |
1 | COVID-19 is particularly impactful to |
the old and frail, a key cohort of SNFs | |
and Assisted Living Facilities (ALFs) | |
2 | Staff at SNFs and ALFs have risked their health |
and the health of their families to protect | |
residents | |
3 | Operators implemented new and evolving |
protocols to limit the spread of COVID-19 | |
4 | Occupancy declined ~13% between February |
2020 and January 2021 | |
5 | Expenses increased by as much as $45 PPD |
from January of 2020 due to staffing and PPE |
Response | |
1 | Federal and many State governments |
provided significant and necessary | |
relief to the industry | |
2 | However, State relief has varied |
significantly, and Federal relief has | |
slowed in the last 24 months | |
3 | Many states have increased their |
Medicaid reimbursement rates to | |
reflect increased cost pressures | |
4 | CMS increased their Medicare FFS SNF |
rate by 4.0%, effective October 2023. | |
This is net of the final 2.3% of the 4.6% | |
PDPM claw back that was mandated in | |
2020. |
Information provided as of February 8th, 2024
Outcomes | |
1 | Operators still face a difficult, albeit |
improving, environment | |
2 | Expenses per patient day have eased but |
remain elevated compared to January of | |
2020, primarily due to higher staffing | |
related costs | |
3 | Occupancy has increased ~8% from the |
low in January of 2021 | |
4 | We collected ~91% of our 4Q23 |
contractual rent and mortgage payments | |
from our operators. |
INVESTOR PRESENTATION 9
Operator Updates
(Previously Disclosed)
As expected, our 2023 fourth quarter financial performance was impacted by operators in the process of being restructured. In general, the restructured portfolios have meaningful long- term value and, although we are working to finalize these restructurings as quickly as possible, our ultimate goal is to maximize long-term sustainable cash flow.
As a result, we anticipate our 2024 first and second quarter earnings to continue to be impacted by these restructuring efforts; although we expect earnings will improve as the year progresses and our operator issues are resolved.
As a result of this improving operating backdrop and the greater visibility into our financial performance, Omega provided annual AFFO guidance for the first time since the pandemic. We expect our 2024 AFFO to be between $2.70 and $2.80 per share.
Operator Updates:
LaVie - We are currently in ongoing discussions with LaVie on the best overall future for each of the remaining 30 facilities. In January 2024, LaVie paid Omega approximately $1.45 million in rent.
Maplewood - In January 2024, Maplewood paid Omega approximately $3.8 million in rent.
Guardian - In January 2024, Omega drew the remaining $0.1 million from Guardian's security deposit to fund its unpaid January 2024 rent. Omega is in discussions to sell and/or release to another operator the six remaining Guardian facilities.
For additional information, please refer to our 4th Quarter 2023 Form 10-K at www.omegahealthcare.com
Information provided as of February 8th, 2024 | INVESTOR PRESENTATION 10 |
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Disclaimer
Omega Healthcare Investors Inc. published this content on 04 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 12:09:03 UTC.
