Omega Announces Third Quarter 2009 Financial Results; Adjusted FFO of $0.37 Per Share for the Third Quarter
HUNT VALLEY, Md.--(BUSINESS WIRE)-- Omega Healthcare Investors, Inc. (NYSE:OHI) today announced its results of operations for the quarter ended September 30, 2009. The Company also reported Funds From Operations ("FFO") available to common stockholders for the three months ended September 30, 2009 of $30.0 million or $0.36 per common share. The $30.0 million of FFO available to common stockholders for the third quarter of 2009 includes a net loss of $0.1 million associated with owned and operated assets, $0.5 million of non-cash restricted stock expense and a $0.1 million non-cash provision for impairment on a real estate asset. FFO is presented in accordance with the guidelines for the calculation and reporting of FFO issued by the National Association of Real Estate Investment Trusts ("NAREIT"). Adjusted FFO was $0.37 per common share for the three months ended September 30, 2009. FFO and Adjusted FFO are non-GAAP financial measures. Adjusted FFO excludes the impact of certain non-cash items and certain items of revenue or expenses, including: results of operations of owned and operated facilities during the period, a non-cash provision for impairment and restricted stock expense. For more information regarding FFO and Adjusted FFO, see the "Funds From Operations" section below.
GAAP NET INCOME
For the three-month period ended September 30, 2009, the Company reported net income of $21.1 million, net income available to common stockholders of $18.9 million, or $0.22 per diluted common share on operating revenues of $49.8 million. This compares to net income of $28.1 million, net income available to common stockholders of $25.6 million, or $0.33 per diluted common share on operating revenues of $60.0 million for the same period in 2008.
For the nine-month period ended September 30, 2009, the Company reported net income of $65.9 million, net income available to common stockholders of $59.1 million, or $0.71 per diluted common share on operating revenues of $148.1 million. This compares to net income of $62.4 million, net income available to common stockholders of $55.0 million, or $0.76 per diluted common share on operating revenues of $144.6 million for the same period in 2008.
The year-to-date increases in net income and net income available to common stockholders were primarily due to the impact of: i) $4.0 million of net cash flow associated with legal settlements; ii) revenue associated with $60 million of new investments completed since September 2008; iii) a $2.1 million reduction in interest expense; and iv) a $4.3 million expense for uncollectible accounts receivable recorded in 2008 and a net change of $1.5 million provision for impairment charge. This impact was partially offset by: i) increased depreciation expense associated with the new investments and ii) a $0.5 million charge relating to the write-off of deferred financing credit facility costs recorded in the second quarter of 2009.
THIRD QUARTER 2009 RESULTS
Operating Revenues and Expenses - Operating revenues for the three months ended September 30, 2009, excluding nursing home revenues of owned and operated assets and therefore on a non-GAAP basis, were $45.0 million. Operating expenses for the three months ended September 30, 2009, on a non-GAAP basis excluding nursing home expenses for owned and operated assets, totaled $13.9 million, comprised of $11.1 million of depreciation and amortization expense, $2.2 million of general and administrative expenses, $0.5 million of restricted stock expense and a real estate impairment of $0.1 million. A reconciliation of these amounts to revenues and expenses reported in accordance with GAAP is provided at the end of this release.
Other Income and Expense - Other income and expense for the three months ended September 30, 2009 was a net expense of $9.9 million and was primarily comprised of $9.2 million of interest expense and $0.7 million of amortized deferred financing costs.
Funds From Operations - For the three months ended September 30, 2009, reportable FFO available to common stockholders was $30.0 million, or $0.36 per common share on 83.9 million weighted-average common shares outstanding, compared to $23.9 million, or $0.31 per common share on 76.7 million weighted-average common shares outstanding, for the same period in 2008.
The $30.0 million of FFO for the quarter includes the impact of $0.5 million of non-cash restricted stock expense, a $0.1 million net loss associated with owned and operated assets and a real estate impairment of $0.1 million. The $23.9 million of FFO for the three months ended September 30, 2008, includes the impact of: (i) a $1.5 million net loss associated with owned and operated assets; (ii) $0.5 million of non-cash restricted stock expense; (iii) a $0.2 million non-cash provision for real estate impairment; and (iv) $0.1 million reduction in the Company's provision for income taxes.
When excluding the above mentioned items in 2009 and 2008, Adjusted FFO was $30.7 million, or $0.37 per common share, for the three months ended September 30, 2009, compared to $26.0 million, or $0.34 per common share, for the same period in 2008. The Company had 7.2 million additional weighted-average shares for the three months ended September 30, 2009, compared to the same period in 2008. The increase in weighted-average common shares was primarily a result of: i) a 6.0 million share common stock offering on September 19, 2008; ii) approximately 1.3 million common shares issued under the Company's Dividend Reinvestment and Common Stock Purchase Plan; and iii) approximately 1.4 million common shares issued under the Company's Equity Shelf Program. For further information, see the attached "Funds From Operations" schedule and notes.
FINANCING ACTIVITIES
New $200 Million Revolving Credit Facility - On June 30, 2009, the Company entered into a new $200 million revolving senior secured credit facility (the "New Credit Facility"). Banc of America Securities LLC and Deutsche Bank Trust Company Americas were joint lead arrangers for the New Credit Facility. Bank of America, N.A. was the administrative agent and UBS Securities LLC and General Electric Capital Corporation participated in the New Credit Facility in various agent capacities. The New Credit Facility will be used for acquisitions and general corporate purposes.
The New Credit Facility replaces the Company's previous senior secured credit facility (the "Prior Credit Facility"). The New Credit Facility matures in three years, on June 30, 2012, and includes an "accordion feature" that permits the Company to expand its borrowing capacity to $300 million in certain circumstances during the first two years thereof, and is currently priced at LIBOR plus 400 basis points with a 200 basis point LIBOR floor.
For the nine-month period ended September 30, 2009, the Company recorded a non-recurring, non-cash charge of approximately $0.5 million relating to the write-off of deferred financing costs associated with the replacement of the Prior Credit Facility. At September 30, 2009, the Company had $9.0 million of borrowings outstanding under the New Credit Facility.
Equity Shelf Program - On June 12, 2009, the Company entered into separate Equity Distribution Agreements with each of UBS Securities LLC, Deutsche Bank Securities Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, each as sales agents and/or principal (the "Managers"). Under the terms of these agreements, the Company may sell shares of its common stock, from time to time, through or to the Managers having an aggregate gross sales price of up to $100,000,000 (the "Equity Shelf Program"). Sales of the shares, if any, will be made by means of ordinary brokers' transactions on the New York Stock Exchange at market prices, or as otherwise agreed with the applicable Manager. The Company will pay each Manager, compensation for sales of the shares equal to 2% of the gross sales price per share of shares sold through such Manager, as sales agent, under the applicable agreement.
During the third quarter of 2009, the Company issued 1.4 million shares of its common stock under the Equity Shelf Program at an average price of $17.17 per share, resulting in net proceeds of approximately $23.8 million.
DIVIDENDS
Common Dividends - On October 20, 2009, the Company's Board of Directors announced a common stock dividend of $0.30 per share to be paid November 16, 2009 to common stockholders of record on November 2, 2009. At the date of this release, the Company had approximately 85.1 million outstanding common shares.
Series D Preferred Dividends - On October 20, 2009, the Company's Board of Directors declared the regular quarterly dividends for the Company's 8.375% Series D Cumulative Redeemable Preferred Stock ("Series D Preferred Stock") to stockholders of record on November 2, 2009. The stockholders of record of the Series D Preferred Stock on November 2, 2009 will be paid dividends in the amount of $0.52344 per preferred share on November 16, 2009. The liquidation preference for the Company's Series D Preferred Stock is $25.00 per share. Regular quarterly preferred dividends for the Series D Preferred Stock represent dividends for the period August 1, 2009 through October 30, 2009.
2009 ADJUSTED FFO GUIDANCE AFFIRMATION
The Company affirmed its 2009 Adjusted FFO available to common stockholders guidance of between $1.47 and $1.50 per diluted share, as previously announced on February 6, 2009.
The Company's Adjusted FFO guidance for 2009 excludes the impacts of future acquisitions, gains and losses from the sale of assets, additional divestitures, certain revenue and expense items, capital transactions and restricted stock amortization expense. A reconciliation of the Adjusted FFO guidance to the Company's projected GAAP earnings is provided on a schedule attached to this press release. The Company may, from time to time, update its publicly announced Adjusted FFO guidance, but it is not obligated to do so.
The Company's Adjusted FFO guidance is based on a number of assumptions, which are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company's expectations may change. Without limiting the generality of the foregoing, the completion of acquisitions, divestitures, capital and financing transactions, variations in restricted stock amortization expense, and the factors identified below may cause actual results to vary materially from our current expectations. There can be no assurance that the Company will achieve its projected results.
CONFERENCE CALL
The Company will be conducting a conference call on Thursday, October 29, 2009, at 10 a.m. EDT to review the Company's 2009 third quarter results and current developments. To listen to the conference call via webcast, log on to www.omegahealthcare.com and click the "earnings call" icon on the Company's home page. Webcast replays of the call will be available on the Company's website for two weeks following the call.
The Company is a real estate investment trust investing in and providing financing to the long-term care industry. At September 30, 2009, the Company owned or held mortgages on 254 skilled nursing facilities and assisted living facilities with approximately 29,126 licensed beds (27,708 available beds) located in 28 states and operated by 25 third-party healthcare operating companies.
This announcement includes forward-looking statements, including without limitation the information under the heading "2009 Adjusted FFO Guidance Affirmation." Actual results may differ materially from those reflected in such forward-looking statements as a result of a variety of factors, including, among other things: (i) uncertainties relating to the business operations of the operators of the Company's properties, including those relating to reimbursement by third-party payors, regulatory matters and occupancy levels; (ii) regulatory and other changes in the healthcare sector, including without limitation, changes in Medicare reimbursement; (iii) changes in the financial position of the Company's operators; (iv) the ability of operators in bankruptcy to reject unexpired lease obligations, modify the terms of the Company's mortgages, and impede the ability of the Company to collect unpaid rent or interest during the pendency of a bankruptcy proceeding and retain security deposits for the debtor's obligations; (v) the availability and cost of capital; (vi) the Company's ability to maintain its credit ratings; (vii) competition in the financing of healthcare facilities; (viii) the Company's ability to maintain its status as a real estate investment trust; (ix) the Company's ability to manage, re-lease or sell any owned and operated facilities; (x) the Company's ability to sell closed or foreclosed assets on a timely basis and on terms that allow the Company to realize the carrying value of these assets; (xi) the effect of economic and market conditions generally, and particularly in the healthcare finance industry; (xii) the potential impact of a general economic slowdown on governmental budgets and healthcare reimbursement expenditures; and (xiii) other factors identified in the Company's filings with the Securities and Exchange Commission. Statements regarding future events and developments and the Company's future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements. The Company undertakes no obligation to update any forward-looking statements contained in this material.
OMEGA HEALTHCARE INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2009 2008
(Unaudited)
ASSETS
Real estate properties
Land and buildings $ 1,385,625 $ 1,372,012
Less accumulated depreciation (284,782 ) (251,854 )
Real estate properties - net 1,100,843 1,120,158
Mortgage notes receivable - net 100,531 100,821
1,201,374 1,220,979
Other investments - net 29,440 29,864
1,230,814 1,250,843
Assets held for sale - net 887 150
Total investments 1,231,701 1,250,993
Cash and cash equivalents 646 209
Restricted cash 6,678 6,294
Accounts receivable - net 81,274 75,037
Other assets 12,145 18,613
Operating assets for owned and operated properties 3,949 13,321
Total assets $ 1,336,393 $ 1,364,467
LIABILITIES AND STOCKHOLDERS' EQUITY
Revolving line of credit $ 9,000 $ 63,500
Unsecured borrowings - net 484,685 484,697
Accrued expenses and other liabilities 27,106 25,420
Operating liabilities for owned and operated 1,449 2,862
properties
Total liabilities 522,240 576,479
Stockholders' equity:
Preferred stock issued and outstanding - 4,340
shares Series D with an aggregate liquidation 108,488 108,488
preference of $108,488
Common stock $.10 par value authorized - 200,000
shares: issued and outstanding - 84,904 shares as 8,490 8,238
of September 30, 2009 and 82,382 as of December
31, 2008
Common stock - additional paid-in-capital 1,095,578 1,054,157
Cumulative net earnings 506,149 440,277
Cumulative dividends paid (904,552 ) (823,172 )
Total stockholders' equity 814,153 787,988
Total liabilities and stockholders' equity $ 1,336,393 $ 1,364,467
OMEGA HEALTHCARE INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Revenues
Rental income $ 41,226 $ 37,265 $ 123,626 $ 115,052
Mortgage interest income 2,915 3,007 8,686 6,536
Other investment income - net 694 313 1,844 1,531
Miscellaneous 160 73 364 2,140
Nursing home revenues of owned 4,758 19,341 13,545 19,341
and operated assets
Total operating revenues 49,753 59,999 148,065 144,600
Expenses
Depreciation and amortization 11,093 10,076 33,014 29,185
General and administrative 2,195 2,399 7,481 7,413
Restricted stock expense 480 526 1,439 1,577
Impairment loss on real estate 89 170 159 1,684
properties
Provision for uncollectible - - - 4,268
accounts receivable
Nursing home expenses of owned 4,899 20,833 15,750 20,833
and operated assets
Total operating expenses 18,756 34,004 57,843 64,960
Income before other income and 30,997 25,995 90,222 79,640
expense
Other income (expense):
Interest and other investment 2 74 19 197
income
Interest (9,171 ) (9,375 ) (26,656 ) (28,805 )
Interest - amortization of (690 ) (500 ) (1,690 ) (1,500 )
deferred financing costs
Interest - refinancing costs - - (526 ) -
Litigation settlements - - 4,527 526
Total other expense (9,859 ) (9,801 ) (24,326 ) (29,582 )
Income before gain (loss) on 21,138 16,194 65,896 50,058
assets sold
Gain (loss) on assets sold - - 11,806 (24 ) 11,852
net
Income from continuing 21,138 28,000 65,872 61,910
operations before income taxes
Income taxes - 72 - 72
Income from continuing 21,138 28,072 65,872 61,982
operations
Discontinued operations - - - 446
Net income 21,138 28,072 65,872 62,428
Preferred stock dividends (2,271 ) (2,480 ) (6,814 ) (7,442 )
Net income available to common $ 18,867 $ 25,592 $ 59,058 $ 54,986
stockholders
Income per common share
available to common
stockholders:
Basic:
Income from continuing $ 0.23 $ 0.33 $ 0.71 $ 0.75
operations
Net income $ 0.23 $ 0.33 $ 0.71 $ 0.76
Diluted:
Income from continuing $ 0.22 $ 0.33 $ 0.71 $ 0.75
operations
Net income $ 0.22 $ 0.33 $ 0.71 $ 0.76
Dividends declared and paid $ 0.30 $ 0.30 $ 0.90 $ 0.89
per common share
Weighted-average shares 83,740 76,590 82,903 72,737
outstanding, basic
Weighted-average shares 83,858 76,702 83,004 72,829
outstanding, diluted
Components of other
comprehensive income:
Net income $ 21,138 $ 28,072 $ 65,872 $ 62,428
Total comprehensive income $ 21,138 $ 28,072 $ 65,872 $ 62,428
OMEGA HEALTHCARE INVESTORS, INC.
FUNDS FROM OPERATIONS
Unaudited
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Net income available to $ 18,867 $ 25,592 $ 59,058 $ 54,986
common stockholders
(Deduct gain) add back loss
from real estate dispositions -- (11,806 ) 24 (12,283 )
(1)
Sub-total 18,867 13,786 59,082 42,703
Elimination of non-cash items
included in net income:
Depreciation and amortization 11,093 10,076 33,014 29,185
(1)
Funds from operations
available to common $ 29,960 $ 23,862 $ 92,096 $ 71,888
stockholders
Weighted-average common 83,740 76,590 82,903 72,737
shares outstanding, basic
Effect of restricted stock 107 100 89 80
awards
Assumed exercise of stock 11 12 11 12
options
Deferred stock -- -- 1 --
Weighted-average common 83,858 76,702 83,004 72,829
shares outstanding, diluted
Fund from operations per
share available to common $ 0.36 $ 0.31 $ 1.11 $ 0.99
stockholders
Adjusted funds from
operations:
Funds from operations
available to common $ 29,960 $ 23,862 $ 92,096 $ 71,888
stockholders
Deduct litigation settlements -- -- (4,527 ) (526 )
Deduct one-time cash revenue -- -- -- (702 )
Deduct FIN 46R adjustment -- -- -- (90 )
Deduct collection of prior
operator's past due rental -- -- -- (650 )
obligation
Deduct provision for income -- (72 ) -- (72 )
taxes
Deduct nursing home revenues (4,758 ) (19,341 ) (13,545 ) (19,341 )
Add back non-cash provision
for uncollectible accounts -- -- -- 4,268
receivable
Add back non-cash provision
for impairments on real 89 170 159 1,684
estate properties(1)
Add back nursing home 4,899 20,833 15,750 20,833
expenses
Add back one-time interest -- -- 526 --
refinancing expense
Add back non-cash restricted 480 526 1,439 1,577
stock expense
Adjusted funds from
operations available to $ 30,670 $ 25,978 $ 91,898 $ 78,869
common stockholders
(1) Includes amounts in discontinued operations
This press release includes Funds From Operations, or FFO, which is a non-GAAP financial measure. For purposes of the Securities and Exchange Commission's Regulation G, a non-GAAP financial measure is a numerical measure of a company's historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable financial measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows (or equivalent statements) of the company, or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable financial measure so calculated and presented. As used in this press release, GAAP refers to generally accepted accounting principles in the United States of America. Pursuant to the requirements of Regulation G, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
The Company calculates and reports FFO in accordance with the definition and interpretive guidelines issued by the National Association of Real Estate Investment Trusts ("NAREIT"), and consequently, FFO is defined as net income available to common stockholders, adjusted for the effects of asset dispositions and certain non-cash items, primarily depreciation and amortization. The Company believes that FFO is an important supplemental measure of its operating performance. Because the historical cost accounting convention used for real estate assets requires depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time, while real estate values instead have historically risen or fallen with market conditions. The term FFO was designed by the real estate industry to address this issue. FFO herein is not necessarily comparable to FFO of other real estate investment trusts, or REITs, that do not use the same definition or implementation guidelines or interpret the standards differently from the Company.
In February 2004, NAREIT informed its member companies that it was adopting the position of the SEC with respect to asset impairment charges and would no longer recommend that impairment write-downs be excluded from FFO. In the tables included in this press release, the Company has applied this interpretation and has not excluded asset impairment charges in calculating its FFO. As a result, its FFO may not be comparable to similar measures reported in previous disclosures. According to NAREIT, there is inconsistency among NAREIT member companies as to the adoption of this interpretation of FFO. Therefore, a comparison of the Company's FFO results to another company's FFO results may not be meaningful.
The Company uses FFO as one of several criteria to measure the operating performance of its business. The Company further believes that by excluding the effect of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs and which may be of limited relevance in evaluating current performance, FFO can facilitate comparisons of operating performance between periods and between other REITs. The Company offers this measure to assist the users of its financial statements in analyzing its performance; however, this is not a measure of financial performance under GAAP and should not be considered a measure of liquidity, an alternative to net income or an indicator of any other performance measure determined in accordance with GAAP. Investors and potential investors in the Company's securities should not rely on this measure as a substitute for any GAAP measure, including net income.
Adjusted FFO is calculated as FFO available to common stockholders less non-cash stock-based compensation and one-time revenue and expense items. The Company believes that Adjusted FFO provides an enhanced measure of the operating performance of the Company's core portfolio as a REIT. The Company's computation of Adjusted FFO is not comparable to the NAREIT definition of FFO or to similar measures reported by other REITs, but the Company believes it is an appropriate measure for this Company.
The following table presents a reconciliation of our guidance regarding 2009 FFO and Adjusted FFO to net income available to common stockholders:
2009 Projected
Per diluted share:
Net income available to common stockholders $ 0.95 $ 0.98
Adjustments:
Depreciation and amortization 0.52 0.52
Funds from operations available to common stockholders $ 1.47 $ 1.50
Adjustments:
Legal settlement income (0.05 ) (0.05 )
Nursing home revenue and expense - net 0.02 0.02
Interest expense - refinancing 0.01 0.01
Impairment on real estate assets 0.00 0.00
Restricted stock expense 0.02 0.02
Adjusted funds from operations available to common $ 1.47 $ 1.50
stockholders
The table below reconciles reported revenues and expenses to revenues and expenses excluding nursing home revenues and expenses of owned and operated assets:
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
(in thousands)
Total operating revenues $ 49,753 $ 59,999 $ 148,065 $ 144,600
Nursing home revenues of owned and 4,758 19,341 13,545 19,341
operated assets
Revenues excluding nursing home $ 44,995 $ 40,658 $ 134,520 $ 125,259
revenues of owned and operated assets
Total operating expenses $ 18,756 $ 34,004 $ 57,843 $ 64,960
Nursing home expenses of owned and 4,899 20,833 15,750 20,833
operated assets
Expenses excluding nursing home $ 13,857 $ 13,171 $ 42,093 $ 44,127
expenses of owned and operated assets
This press release includes references to revenues and expenses excluding nursing home and operated assets, which are non-GAAP financial measures. The Company believes that presentation of the Company's revenues and expenses, excluding nursing home owned and operated assets, provides a useful measure of the operating performance of the Company's core portfolio as a real estate investment trust in view of the disposition of all but two of the Company's owned and operated assets and short term holding of owned and operated assets. The table below reconciles reported revenues and expenses to revenues and expenses excluding nursing home revenues and expenses of owned and operated assets.
The following tables present selected portfolio information, including operator and geographic concentrations, and revenue maturities for the period ending September 30, 2009:
Portfolio
Composition
($000's)
# of
Licensed
Balance # of Beds Investment % Investment
Sheet Data Properties
Real
Property(1) 239 27,141 $ 1,404,825 93 %
(3)
Loans
Receivable 15 1,985 100,531 7 %
(2)
Total 254 29,126 $ 1,505,356 100 %
Investments
# of Investment per
Licensed
Investment # of Beds Investment % Investment Bed
Data Properties
Skilled
Nursing 243 28,499 $ 1,445,665 96 % $ 51
Facilities
(1) (2) (3)
Assisted
Living 7 393 29,854 2 % 76
Facilities
Rehab 4 234 29,837 2 % 128
Hospitals
254 29,126 $ 1,505,356 100 % $ 52
(1) Includes $19.2 million for lease inducement.
(2) Includes $1.0 million of unamortized principal.
(3) Excludes two facilities classified as held for sale.
Revenue Composition ($000's)
Revenue by Investment Type(1) Three Months Ended Nine Months Ended
September 30, 2009 September 30, 2009
Rental Property $ 41,226 92 % $ 123,626 92 %
Mortgage Notes 2,915 7 % 8,686 7 %
Other Investment Income 694 1 % 1,844 1 %
$ 44,835 100 % $ 134,156 100 %
Revenue by Facility Type(1) Three Months Ended Nine Months Ended
September 30, 2009 September 30, 2009
Skilled Nursing Facilities $ 43,239 96 % $ 129,600 97 %
Assisted Living Facilities 597 1 % 1,796 1 %
Specialty Hospitals 305 1 % 916 1 %
Other 694 2 % 1,844 1 %
$ 44,835 100 % $ 134,156 100 %
(1) Excludes revenue from owned and operated assets.
Operator Concentration ($000's)
Concentration by Investment # of Properties Investment % Investment
CommuniCare Health Services 36 $ 317,822 21 %
Sun Healthcare Group, Inc. 40 215,160 14 %
Advocat Inc. 40 151,775 10 %
Guardian LTC Management (1) 23 145,171 10 %
Signature Holdings, LLC 18 142,460 10 %
Formation Capital 14 120,699 8 %
Nexion Health, Inc. 19 80,113 5 %
Essex Healthcare Corp. 13 79,564 5 %
Alpha Healthcare Properties, LLC 8 55,834 4 %
Mark Ide Limited Liability Company 10 36,264 2 %
Remaining Operators (2) (3) 33 160,494 11 %
254 $ 1,505,356 100 %
(1) Investment amount includes a $19.2 million lease inducement.
(2) Includes $1.0 million of unamortized principal.
(3) Excludes two facilities classified as held for sale.
Concentration by State # of Properties Investment % Investment
Ohio 47 $ 333,972 22 %
Florida (2) 25 173,107 11 %
Pennsylvania 23 150,225 10 %
Texas 20 85,644 6 %
West Virginia (1) 10 74,867 5 %
Maryland 7 69,928 5 %
Louisiana 14 55,343 4 %
Colorado 8 54,322 3 %
Alabama 10 45,195 3 %
Arkansas 11 44,791 3 %
Rhode Island 4 39,741 3 %
Massachusetts 6 39,576 3 %
Kentucky 10 37,253 2 %
California 11 34,756 2 %
Connecticut 4 31,573 2 %
Remaining States (3) 44 235,063 16 %
254 $ 1,505,356 100 %
(1) Investment amount includes a $19.2 million lease inducement.
(2) Includes $1.0 million of unamortized principal.
(3) Excludes two facilities classified as held for sale.
Revenue
Maturities
($000's)
Current Lease and
Current Lease Interest Interest
Operating Lease
Expirations & Year Revenue (1) Revenue (1) Revenue %
Loan Maturities
2009 - - - 0 %
2010 496 1,431 1,927 1 %
2011 4,598 68 4,666 3 %
2012 3,175 - 3,175 2 %
2013 24,717 - 24,717 14 %
Thereafter 126,003 9,887 135,890 80 %
$ 158,989 $ 11,386 $ 170,375 100 %
(1) Based on 2009 contractual rents and interest (assumes no annual escalators).
Selected
Facility Data
TTM ending Coverage Data
6/30/09
% Revenue Mix Before After
Census (1) Private Medicare Mgmt. Fees Mgmt. Fees
Total Portfolio 85.5 % 9.2 % 25.4 % 2.1 x 1.6 x
(1) Based on available beds.
The following table presents a debt maturity schedule for the period ending September 30, 2009:
Debt Maturities ($000's) Secured Debt
Lines of
Year Credit (1) Senior Notes Total
2009 $ - $ - $ -
2010 - - -
2011 - - -
2012 200,000 - 200,000
2013 - - -
Thereafter - 485,000 485,000
$ 200,000 $ 485,000 $ 685,000
(1) Reflected at 100% borrowing capacity.
The following table presents investment activity for the three- and nine- month periods ending September 30, 2009:
Investment Activity ($000's)
Three Months Ended Nine Months Ended
September 30, 2009 September 30, 2009
$ Amount % $ Amount %
Funding by Investment Type:
Real Property $ - 0 % $ - 0 %
Mortgages - 0 % - 0 %
Other 5,966 100 % 12,641 100 %
Total $ 5,966 100 % $ 12,641 100 %
Source: Omega Healthcare Investors, Inc.
Released October 29, 2009