Omega Announces First Quarter 2007 Financial Results and Adjusted FFO of $0.34 Per Share
TIMONIUM, Md.--(BUSINESS WIRE)--
Omega Healthcare Investors, Inc. (NYSE:OHI) today announced its results of operations for the quarter ended March 31, 2007. The Company also reported Funds From Operations ("FFO") available to common stockholders for the three months ended March 31, 2007 of $25.4 million or $0.42 per common share. The $25.4 million of FFO available to common stockholders for the first quarter includes an adjustment to the allowance for straight-line revenue (resulting in an increase in revenue of $5.0 million for the quarter), $0.1 million of non-cash consolidation adjustments due to Financial Accounting Standards Board Interpretation No. 46R, Consolidation of Variable Interest Entities ("FIN 46R") and $26 thousand of non-cash restricted stock expense. 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 $0.34 per common share for the three months ended March 31, 2007. Adjusted FFO is a non-GAAP financial measure, which excludes the impact of certain non-cash items and certain items of revenue or expenses, including: a non-cash straight line revenue allowance adjustment, FIN 46R consolidation adjustments 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 March 31, 2007, the Company reported net income of $20.7 million, net income available to common stockholders of $18.2 million, or $0.30 per diluted common share and operating revenues of $42.7 million. This compares to net income of $10.2 million, net income available to common stockholders of $7.7 million, or $0.13 per diluted common share, and operating revenues of $32.1 million for the same period in 2006. The increases in net income, operating revenues and net income available to common stockholders were due primarily to the acquisition of approximately $200 million in new investments in 2006, as well as, the impact of an allowance adjustment with respect to straight-line rent recognition.
FIRST QUARTER 2007 HIGHLIGHTS AND OTHER RECENT DEVELOPMENTS
-- Completed a 7.13 million share common stock offering on April
3, 2007, resulting in net proceeds to the Company of $113
million.
-- Increased the Company's available borrowing base under its
revolving credit facility by $55 million to $255 million.
-- In April, the Company increased the quarterly common dividend
per share by $0.01 to $0.27 per share.
-- Reinstated the Company's Dividend Reinvestment and Common
Stock Purchase Plan (the "Plan") effective immediately for
investment beginning May 15, 2007.
FIRST QUARTER 2007 RESULTS
Operating Revenues and Expenses - Operating revenues for the three months ended March 31, 2007 were $42.7 million. Operating expenses for the three months ended March 31, 2007 totaled $11.4 million, comprised of $8.8 million of depreciation and amortization expense, $2.5 million of general and administrative expenses and $26 thousand of restricted stock expense.
Other Income and Expense - Other income and expense for the three months ended March 31, 2007 was a net expense of $12.3 million and was primarily comprised of $11.8 million of interest expense and $0.5 million of amortization of deferred financing costs.
Funds From Operations - For the three months ended March 31, 2007, reportable FFO available to common stockholders was $25.4 million, or $0.42 per common share, compared to $15.5 million, or $0.27 per common share, for the same period in 2006. The $25.4 million of FFO for the quarter includes a $5.0 million adjustment to the allowance for straight-line revenue (resulting in an increase in revenue for the quarter), $0.1 million of non-cash FIN 46R consolidation adjustments and $26 thousand of non-cash restricted stock expense.
The $15.5 million of FFO for the three months ended March 31, 2006, includes the impact of: i) a one-time, non-cash charge of approximately $2.7 million relating to the write-off of deferred financing costs associated with the termination of an old credit facility; ii) $0.8 million of interest expense associated with the tender offer and purchase of the remaining 20.7% of the Company's $100 million aggregate principal amount of 2007 notes; iii) a $0.5 million provision for income taxes; iv) a $0.1 million non-cash provision for impairment charge; v) a $2.4 million non-cash increase in the fair value of a derivative; vi) $0.4 million in non-cash accretion investment income; and vii) $0.3 million of non-cash restricted stock amortization.
When excluding the above mentioned non-cash or non-recurring items in 2007 and 2006, adjusted FFO was $20.3 million, or $0.34 per common share, for the three months ended March 31, 2007, compared to $17.1 million, or $0.30 per common share, for the same period in 2006. For further information, see the attached "Funds From Operations" schedule and notes.
FINANCING ACTIVITIES
7.130 Million Common Stock Offering - As previously announced, on April 3, 2007, the Company closed an underwritten public offering of 7,130,000 shares of Omega common stock at $16.75 per share, less underwriting discounts. The sale included 930,000 shares sold in connection with the exercise of an over-allotment option granted to the underwriters. The Company received approximately $113 million in net proceeds from the sale of the shares, after deducting underwriting discounts and before estimated offering expenses.
Increase in Credit Facility - Pursuant to Section 2.01 of the Company's Credit Agreement, dated as of March 31, 2006, as amended, (the "Credit Agreement"), the Company was permitted under certain circumstances to increase its available borrowing base under the Credit Agreement from $200 million up to an aggregate of $300 million. Effective February 22, 2007, the Company exercised its right to increase its available borrowing base under the Credit Agreement from $200 million to $255 million and the Company consented to add 18 of its properties to the borrowing base assets under the Credit Agreement.
PORTFOLIO DEVELOPMENTS
Advocat - The Company continuously evaluates the payment history and financial strength of its operators and has historically established an allowance for straight-line rent adjustments for operators that do not meet the Company's internal revenue requirements. The Company considers factors such as payment history, the operator's financial condition as well as current and future anticipated operating trends when evaluating whether to establish contra revenue reserves.
The Company has reviewed Advocat's financial statements annually and noted that since 2000 the opinion of Advocat's external auditors contained a "going concern" qualification. During the first quarter of 2007, the Company reviewed Advocat's 2006 annual report and noted that Advocat's auditor's opinion no longer contained a going concern qualification. In addition, the Company also reviewed Advocat's financial statements and noted significant improvements in its financial condition since 2000. As a result, the Company determined that it should reverse approximately $5.0 million of straight-line allowance previously established. The change in estimate resulted in an additional $0.08 per share of income from continuing operations and net income for the quarter.
Asset Sales - On December 22, 2006, Residential Care VIII, LLC, a subsidiary of American Senior Communities, LLC, notified the Company of its intent to exercise its option to purchase two facilities. The two facilities were classified on the Company's December 31, 2006 consolidated balance sheet as assets held for sale with a net book value of approximately $1.9 million. On January 31, 2007, the Company received gross cash proceeds of approximately $3.6 million and recorded an accounting gain of approximately $1.7 million.
In two additional separate transactions during the first quarter of 2007, the Company sold two facilities for their approximate net book value, generating cash proceeds of approximately $0.8 million.
DIVIDENDS
Common Dividends - On April 18, 2007, the Company's Board of Directors announced a common stock dividend of $0.27 per share to be paid May 15, 2007 to common stockholders of record on April 30, 2007. At the date of this release, the Company had approximately 67 million outstanding common shares.
Series D Preferred Dividends - On April 18, 2007, 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 April 30, 2007. The stockholders of record of the Series D Preferred Stock on April 30, 2007 will be paid dividends in the amount of $0.52344 per preferred share on May 15, 2007. 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 February 1, 2007 through April 30, 2007.
Dividend Reinvestment and Common Stock Purchase Plan - The Company also previously announced the reinstatement of the Plan effective immediately for investment beginning May 15, 2007. All questions and requests in connection with the Plan should be directed to the Plan's administrator, Computershare, at (800) 519-3111.
2007 ADJUSTED FFO GUIDANCE AFFIRMATION
The Company affirms its 2007 adjusted FFO available to common stockholders guidance of between $1.32 and $1.36 per diluted share, as previously announced on December 14, 2006.
The Company's adjusted FFO guidance for 2007 excludes the future impacts of 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. There can be no assurance that the Company will achieve its projected results.
ANNUAL MEETING
As previously announced on February 6, 2007, the Company's 2007 Annual Meeting of Stockholders will be held on Thursday, May 24, 2007, at 10:00 a.m., local time, at the Holiday Inn Select, Baltimore-North, 2004 Greenspring Drive, Timonium, Maryland. Stockholders of record as of the close of business on April 20, 2007 will be entitled to receive notice of and to participate at the 2007 Annual Meeting of Stockholders.
CONFERENCE CALL
The Company will be conducting a conference call on Thursday, April 26, 2007, at 10 a.m. EDT to review the Company's 2007 first 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 March 31, 2007, the Company owned or held mortgages on 235 SNFs and assisted living facilities with approximately 26,996 beds located in 27 states and operated by 31 third-party healthcare operating companies.
This announcement includes forward-looking statements. 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) competition in the financing of healthcare facilities; (vii) the Company's ability to maintain its status as a real estate investment trust and to reach a closing agreement with the Internal Revenue Service with respect to the related party tenant issues described in our Form 10-K filed with the Securities and Exchange Commission on February 23, 2007 ("Form 10-K"); (viii) the impact of the material weakness identified in the management's report on internal control over financial reporting included in our Form 10-K, including expenses that may be incurred in efforts to remediate such weakness and potential additional costs in preparing and finalizing financial statements in view of such material weakness; and (ix) 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.
OMEGA HEALTHCARE INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2007 2006
-------------------------
(Unaudited) (Audited)
ASSETS
Real estate properties
Land and buildings at cost $1,238,733 $1,237,165
Less accumulated depreciation (196,957) (188,188)
-------------------------
Real estate properties - net 1,041,776 1,048,977
Mortgage notes receivable - net 32,085 31,886
-------------------------
1,073,861 1,080,863
Other investments - net 21,032 22,078
-------------------------
1,094,893 1,102,941
Assets held for sale - net 773 3,568
-------------------------
Total investments 1,095,666 1,106,509
Cash and cash equivalents 2,655 729
Restricted cash 4,016 4,117
Accounts receivable - net 56,287 51,194
Other assets 14,290 12,821
-------------------------
Total assets $1,172,914 $1,175,370
=========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Revolving line of credit $147,000 $150,000
Unsecured borrowings - net 485,000 485,000
Discount on unsecured borrowings - net (274) (269)
Other long-term borrowings 41,410 41,410
Accrued expenses and other liabilities 26,771 28,037
Income tax liabilities 5,646 5,646
Operating liabilities for owned properties 92 92
-------------------------
Total liabilities 705,645 709,916
-------------------------
Stockholders' equity:
Preferred stock 118,488 118,488
Common stock and additional paid-in-capital 699,439 700,177
Cumulative net earnings 313,425 292,766
Cumulative dividends paid (621,016) (602,910)
Cumulative dividends - redemption (43,067) (43,067)
-------------------------
Total stockholders' equity 467,269 465,454
-------------------------
Total liabilities and stockholders' equity $1,172,914 $1,175,370
=========================
OMEGA HEALTHCARE INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(in thousands, except per share amounts)
Three Months Ended
March 31,
-------------------
2007 2006
-------------------
Revenues
Rental income $40,877 $29,837
Mortgage interest income 1,009 1,184
Other investment income - net 645 937
Miscellaneous 137 109
--------- ---------
Total operating revenues 42,668 32,067
Expenses
Depreciation and amortization 8,799 7,485
General and administrative 2,547 2,056
Restricted stock expense 26 293
--------- ---------
Total operating expenses 11,372 9,834
--------- ---------
Income before other income and expense 31,296 22,233
Other income (expense):
Interest and other investment income 40 113
Interest (11,844) (9,609)
Interest - amortization of deferred financing
costs (459) (643)
Interest - refinancing costs -- (3,485)
Change in fair value of derivatives -- 2,434
--------- ---------
Total other expense (12,263) (11,190)
Income from continuing operations before income
taxes 19,033 11,043
Provision for income taxes -- (549)
--------- ---------
Income from continuing operations 19,033 10,494
Discontinued operations 1,626 (319)
--------- ---------
Net income 20,659 10,175
Preferred stock dividends (2,481) (2,481)
--------- ---------
Net income available to common $18,178 $7,694
========= =========
Income per common share:
Basic:
Income from continuing operations $0.28 $0.14
========= =========
Net income available to common $0.30 $0.13
========= =========
Diluted:
Income from continuing operations $0.28 $0.14
========= =========
Net income available to common $0.30 $0.13
========= =========
Dividends declared and paid per common share $0.26 $0.23
========= =========
Weighted-average shares outstanding, basic 60,094 57,412
========= =========
Weighted-average shares outstanding, diluted 60,118 57,474
========= =========
Components of other comprehensive income:
Net income $20,659 $10,175
Unrealized gain (loss) on common stock investment -- 699
Unrealized gain (loss) on preferred stock
investment -- (304)
--------- ---------
Total comprehensive income $20,659 $10,570
========= =========
OMEGA HEALTHCARE INVESTORS, INC.
FUNDS FROM OPERATIONS
Unaudited
(In thousands, except per share amounts)
Three Months Ended
March 31,
-------------------
2007 2006
--------- ---------
Net income available to common stockholders $18,178 $7,694
Add back loss (deduct gain) from real estate
dispositions (1) (1,597) 248
--------- ---------
Sub-total 16,581 7,942
Elimination of non-cash items included in net
income:
Depreciation and amortization (1) 8,799 7,527
--------- ---------
Funds from operations available to common
stockholders $25,380 $15,469
========= =========
Weighted-average common shares outstanding, basic 60,094 57,412
Effect of restricted stock awards -- 42
Assumed exercise of stock options 24 20
--------- ---------
Weighted-average common shares outstanding, diluted 60,118 57,474
========= =========
Funds from operations per share available to common
stockholders $0.42 $0.27
========= =========
Adjusted funds from operations:
Funds from operations available to common
stockholders $25,380 $15,469
Deduct non-cash increase in fair value of Advocat
derivative -- (2,434)
Deduct Advocat non-cash accretion investment
income -- (412)
Deduct Advocat one-time straight line adjustment (5,040) --
Deduct FIN 46R adjustment (76) --
Add back non-cash provision for income taxes -- 549
Add back non-cash provision for impairments on
real estate properties(1) -- 121
Add back non-cash restricted stock expense 26 293
Add back one-time non-cash interest refinancing
expense -- 3,485
-------------------
Adjusted funds from operations available to common
stockholders $20,290 $17,071
========= =========
(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 ("SEC") 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. FFO available to common stockholders per share is further adjusted for the effect of restricted stock awards and the exercise of in-the-money stock options. 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.
Adjusted FFO is calculated as FFO available to common stockholders less 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 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.
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 following table presents a reconciliation of our guidance regarding 2007 FFO and Adjusted FFO to net income available to common stockholders:
2007 Projected
-------------------
Per diluted share:
Net income available to common stockholders $0.86 - $0.90
Adjustments:
Depreciation and amortization 0.54 - 0.54
-------- --------
Funds from operations available to common
stockholders $1.40 - $1.44
Adjustments:
Advocat straight-line revenue adjustment (0.08) - (0.08)
FIN 46R non-cash revenue adjustment (0.00) - (0.00)
Restricted stock expense 0.00 - 0.00
-------- --------
Adjusted funds from operations available to common
stockholders $1.32 - $1.36
The following table summarizes the results of operations of assets held for sale and facilities sold during the three months ended March 31, 2007 and 2006, respectively.
Three Months Ended
March 31,
----------------------
2007 2006
----------------------
(in thousands)
Revenues
Rental income $32 $93
Other income -- --
----------------------
Subtotal revenues 32 93
Expenses
Depreciation and amortization -- 42
General and administrative 3 1
Provision for impairment -- 121
----------------------
Subtotal expenses 3 164
----------------------
Income (loss) before loss on sale of assets 29 (71)
Gain (loss) on assets sold - net 1,597 (248)
----------------------
Gain (loss) from discontinued operations $1,626 $(319)
======================
The following tables present selected portfolio information, including operator and geographic concentrations, and revenue maturities for the period ending March 31, 2007.
Portfolio
Composition
($000's)
----------------
Balance Sheet # of %
Data Properties # Beds Investment Investment
------------------------------------------
Real
Property(1)(2) 224 25,700 $1,257,933 97%
Loans
Receivable(3) 9 1,120 33,460 3%
------------------------------------------
Total
Investments 233 26,820 $1,291,393 100%
# of % Investment
Investment Data Properties # Beds Investment Investment per Bed
-----------------------------------------------------
Skilled Nursing
Facilities
(1)(3) 225 26,234 $1,237,578 96% $47
Assisted Living
Facilities 6 416 30,380 2% 73
Rehab Hospitals 2 170 23,435 2% 138
-----------------------------------------------------
233 26,820 $1,291,393 100% $48
(1) Excludes two held for sale facilities and includes a $19.2 million lease inducement.
(2) Includes 7 buildings worth $61.8 million resulting from FIN 46R Consolidation.
(3) Includes $1.4 million of unamortized principal.
Revenue Composition ($000's)
----------------------------
Revenue by Investment Type Three Months Ended
March 31, 2007
-------------------
Rental Property (1) $40,877 96%
Mortgage Notes 1,009 2%
Other Investment Income 645 2%
-------------------
$42,531 100%
Revenue by Facility Type Three Months Ended
March 31, 2007
-------------------
Assisted Living Facilities $512 1%
Skilled Nursing Facilities 41,374 97%
Other 645 2%
-------------------
$42,531 100%
(1) Revenue includes $0.8 million reduction for lease inducements.
Operator Concentration ($000's)
-------------------------------
Concentration by Investment # of %
Properties Investment Investment
----------------------------------
Sun Healthcare Group, Inc. 38 $210,222 16%
Communicare 19 193,278 15%
Haven 15 117,230 9%
Advocat, Inc. 32 107,697 8%
Guardian (1) 17 105,181 8%
HQM 13 98,369 8%
Remaining Operators 99 459,416 36%
----------------------------------
233 $1,291,393 100%
(1) Investment amount includes a $19.2 million lease inducement.
Geographic Concentration ($000's)
---------------------------------
Concentration by Region # of %
Properties Investment Investment
------------------------------------
South (1) 109 $522,098 41%
Midwest 53 337,225 26%
Northeast 37 259,131 20%
West 34 172,939 13%
------------------------------------
233 $1,291,393 100%
Concentration by State # of %
Properties Investment Investment
------------------------------------
Ohio 37 $279,170 22%
Florida 25 173,435 13%
Pennsylvania 17 110,208 9%
Texas 21 82,757 6%
California 15 60,665 5%
Remaining States (1) 118 585,158 45%
------------------------------------
233 $1,291,393 100%
(1) Investment amount includes a $19.2 million lease inducement.
Revenue
Maturities
($000's)
-----------------
Operating Lease Current Lease and
Expirations & Current Lease Interest Interest
Loan Maturities Year Revenue (1) Revenue (1) Revenue %
----------------------------------------------------
2007 3,510 - 3,510 3%
2008 1,071 - 1,071 1%
2009 - - - 0%
2010 11,210 1,445 12,655 9%
2011 11,500 218 11,718 8%
Thereafter 109,930 2,133 112,063 79%
------------------------------------------
$137,221 $3,796 $141,017 100%
(1) Based on 2007 contractual rents and interest (assumes no annual
escalators).
Selected Facility
Data
-----------------
TTM ending Coverage Data
12/31/06
------------------------
% Payor Mix
------------------- Before After
Census Private Medicare Mgmt. Fees Mgmt. Fees
----------------------------------------------------
All Healthcare
Facilities 82.7% 11.5% 13.7% 2.1 x 1.7 x
The following tables present selected financial information, including leverage and interest coverage ratios, as well as a debt maturity schedule for the period ending March 31, 2007.
Current Capitalization ($000's)
-------------------------------
Outstanding
Balance %
---------------------------
Borrowings Under Bank Lines $147,000 12.9%
Long-Term Debt Obligations (1) 526,410 46.1%
Stockholders' Equity 467,269 41.0%
---------------------------
Total Book Capitalization $1,140,679 100.0%
(1) Excludes net discount of $0.3 million on unsecured borrowings. Includes $39.0 million of non-recourse debt pursuant to FIN 46R consolidation.
Leverage & Performance Ratios
Debt / Total Book Cap 59.0%
Debt / Total Market Cap 36.9%
Interest Coverage:
1st quarter 2007 3.26 x
Debt
Maturities
($000's) Secured Debt
----------------------------------------------------------------------
Lines of FIN 46R Senior
Year Credit Consolidation Other Notes Total
(1)
----------------------------------------------------------
2007 $- $- $415 $- $415
2008 - - 435 - 435
2009 - - 465 - 465
2010 255,000 - 495 - 255,495
Thereafter - 39,000 600 485,000 524,600
------------------------------------------------
$255,000 $39,000 $2,410 $485,000 $781,410
---------
(1) Reflected at 100% borrowing capacity.
The following table presents investment activity for the three-month period ending March 31, 2007.
Investment Activity ($000's)
----------------------------
Three Months Ended
March 31, 2007
--------------------
$ Amount %
--------------------
Funding by Investment Type:
Real Property $- 0%
Mortgages 345 33%
Other 691 67%
--------------------
Total $1,036 100%
Source: Omega Healthcare Investors, Inc.
Released April 26, 2007