Omega Announces Fourth Quarter 2018 Financial Results
FFO for the fourth quarter of 2018 includes
GAAP NET INCOME
For the quarter ended
For the year ended
The increase in net income for 2018 compared to the prior year was primarily due to (i)
CEO COMMENTS
2019 RECENT DEVELOPMENTS AND 2018 HIGHLIGHTS
In Q1 2019, the Company…
- entered into a definitive merger agreement to acquire
MedEquities Realty Trust, Inc. - finalized the Orianna restructuring.
- declared a
$0.66 per share quarterly common stock dividend.
In Q4 2018, the Company…
- paid a
$0.66 per share quarterly common stock dividend. - completed
$53 million in new investments. - invested
$45 million in capital renovation and construction-in-progress projects. - sold 15 assets for cash consideration of
$67 million , recognizing a gain of$15.5 million .
In Q3 2018, the Company…
- transitioned 22 Orianna facilities for annual contractual rent of
$17 million . - sold 7 assets for consideration of
$26 million in cash and a$5 million seller note, recognizing a loss of$5.4 million . - completed
$131 million in new investments. - invested
$44 million in capital renovation and construction-in-progress projects. - paid a
$0.66 per share quarterly common stock dividend.
In Q2 2018, the Company…
- sold 47 assets for consideration of
$138 million in cash, a$25 million seller note and$53 million in buyer assumed debt, recognizing a loss of$2.9 million . - completed
$77 million in new investments. - invested
$54 million in capital renovation and construction-in-progress projects. - paid a
$0.66 per share quarterly common stock dividend.
In Q1 2018, the Company…
- sold 14 facilities and had 3 mortgage loans repaid, totaling
$98 million in net cash proceeds, recognizing a gain of$17.5 million . - invested
$38 million in capital renovation and construction-in-progress projects. - completed
$30 million in new investments. - increased its quarterly common stock dividend rate to
$0.66 per share.
FOURTH QUARTER 2018 RESULTS
Operating Revenues and Expenses – Operating revenues for the quarter ended
Operating expenses for the quarter ended
Other Income and Expense – Other income and expense for the quarter ended
Funds From Operations – For the quarter ended
The
The
Adjusted FFO was
2018 ANNUAL RESULTS
Operating Revenues and Expenses – Operating revenues for the year ended
Other Income and Expense – Other income and expense for the year ended
Funds From Operations – For the year ended
The
The
Adjusted FFO was
FINANCING ACTIVITIES
Equity Shelf Program and Dividend Reinvestment and Common Stock Purchase Plan – During the quarter ended
Equity Shelf (At-the-Market) Program for 2018 |
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(in thousands, except price per share) | |||||||||||||||
Q1 | Q2 | Q3 | Q4 | 2018 Total | |||||||||||
Number of shares | — | 912 | — | 1,364 | 2,276 | ||||||||||
Average price per share | $ | — | $ | 30.93 | $ | — | $ | 36.29 | $ | 34.14 | |||||
Gross proceeds | $ | — | $ | 28,218 | $ | — | $ | 49,499 | $ | 77,717 | |||||
Dividend Reinvestment and Common Stock Purchase Plan for 2018 |
|||||||||||||||
(in thousands, except price per share) | |||||||||||||||
Q1 | Q2 | Q3 | Q4 | 2018 Total | |||||||||||
Number of shares | 189 | 759 | 309 | 292 | 1,549 | ||||||||||
Average price per share | $ | 25.87 | $ | 29.22 | $ | 31.82 | $ | 33.93 | $ | 30.22 | |||||
Gross proceeds | $ | 4,886 | $ | 22,164 | $ | 9,854 | $ | 9,897 | $ | 46,801 | |||||
2018 FOURTH QUARTER AND RECENT PORTFOLIO ACTIVITY
Orianna – During the fourth quarter of 2018, the Company transitioned one legacy Orianna facility to an existing Omega operator with annual contractual rent of
During the fourth quarter, the Company signed an agreement to transition three of the legacy Orianna facilities to an existing Omega operator with annual contractual rents of
On
On
MedEquities Merger – As previously announced, on
Under the terms of the agreement, MedEquities stockholders will receive a fixed exchange ratio of 0.235 Omega common shares plus
Earlier today the Company filed a registration statement with the
Asset Impairments and Dispositions – During the fourth quarter of 2018, the Company sold 15 assets (nine previously classified as assets held for sale and one classified as a direct financing lease) for
As of
DIVIDENDS
On
TAX TREATMENT FOR 2018 DIVIDENDS
On
Dividend Payment Date |
% Taxable as Ordinary |
% Taxable as Return of |
% Taxable as Capital |
|||
|
64.0459% | 35.2800% | 0.6741% | |||
|
64.0459% | 35.2798% | 0.6744% | |||
|
64.0458% | 35.2798% | 0.6744% | |||
|
64.0458% | 35.2798% | 0.6744% | |||
2019 ADJUSTED FFO GUIDANCE
The Company currently expects its 2019 Adjusted FFO to be between
The following table presents a reconciliation of Omega’s guidance regarding Adjusted FFO to projected GAAP earnings.
2019 Q4 Adjusted FFO |
2019 Annual Adjusted |
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Net Income | |
|
||
Depreciation | 0.34 | 1.37 | ||
Depreciation – unconsolidated joint venture | 0.00 | 0.02 | ||
Gain on assets sold – net | 0.00 | 0.00 | ||
FFO | |
|
||
Adjustments: | ||||
Acquisition/transaction costs | 0.00 | 0.09 | ||
Interest – refinancing costs | 0.00 | 0.00 | ||
Restructuring expenses | 0.00 | 0.01 | ||
Stock-based compensation expense | 0.02 | 0.08 | ||
Adjusted FFO | |
|
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Note: All per share numbers rounded to 2 decimals. |
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The Company's Adjusted FFO guidance for 2019 assumes the MedEquities merger is completed in the second quarter,
The Company's guidance is based on a number of assumptions, which are subject to change and many of which are outside the Company’s control. If actual results vary from these assumptions, the Company's expectations may change. Without limiting the generality of the foregoing, the timing and completion of acquisitions, divestitures, capital and financing transactions, and variations in stock-based compensation expense may cause actual results to vary materially from our current expectations. There can be no assurance that the Company will achieve its projected results. The Company may, from time to time, update its publicly announced Adjusted FFO guidance, but it is not obligated to do so.
CONFERENCE CALL
The Company will be conducting a conference call on
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.
Omega is a real estate investment trust that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the US, as well as in the
Additional Information and Where to Find It
In connection with the proposed transaction with MedEquities (the “Merger”), Omega has filed a registration statement on Form S-4 (File No. 333-229594) with the
Investors may obtain free copies of the registration statement, the preliminary proxy statement/prospectus, and all other relevant documents filed by Omega and MedEquities with the
Participants in the Solicitation
Omega, MedEquities and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from MedEquities’ stockholders in respect of the proposed Merger. Information regarding Omega’s directors and executive officers can be found in Omega’s definitive proxy statement filed with the
No Offer or Solicitation
This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to buy, sell or solicit any securities or any proxy, vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be deemed to be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding Omega’s or its tenants', operators', borrowers' or managers' expected future financial condition, results of operations, cash flows, funds from operations, dividends and dividend plans, financing opportunities and plans, capital markets transactions, business strategy, budgets, projected costs, operating metrics, capital expenditures, competitive positions, acquisitions, investment opportunities, dispositions, facility transitions, growth opportunities, expected lease income, continued qualification as a REIT, plans and objectives of management for future operations and statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will” and other similar expressions are forward-looking statements. These forward-looking statements are inherently uncertain, and actual results may differ from Omega's expectations.
Omega’s 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 Omega’s properties, including those relating to reimbursement by third-party payors, regulatory matters and occupancy levels; (ii)the impact of healthcare reform and regulation, including cost containment measures and changes in reimbursement policies, procedures and rates; (iii) the ability of operators and borrowers to maintain the financial strength and liquidity necessary to satisfy their respective rent and debt obligations; (iv) the ability of any of Omega’s operators in bankruptcy to reject unexpired lease obligations, modify the terms of Omega’s mortgages and impede the ability of Omega to collect unpaid rent or interest during the pendency of a bankruptcy proceeding and retain security deposits for the debtor’s obligations, and other costs and uncertainties associated with operator bankruptcies; (v) the availability and cost of capital; (vi) changes in Omega’s credit ratings and the ratings of its debt securities; (vii) competition in the financing of healthcare facilities; (viii) Omega’s ability to maintain its status as a REIT and the impact of changes in tax laws and regulations affecting REITs; (ix) Omega’s ability to sell assets held for sale or complete potential asset sales on a timely basis and on terms that allow Omega to realize the carrying value of these assets; (x) Omega’s ability to re-lease, otherwise transition or sell underperforming assets on a timely basis and on terms that allow Omega to realize the carrying value of these assets; (xi) the effect of economic and market conditions generally, and particularly in the healthcare industry; (xii) the potential impact of changes in the SNF and ALF market or local real estate conditions on the Company’s ability to dispose of assets held for sale for the anticipated proceeds or on a timely basis, or to redeploy the proceeds therefrom on favorable terms; (xiii) changes in interest rates; and (xiv) other factors identified in Omega’s filings with the
In addition, the proposed acquisition of MedEquities presents additional factors that could cause Omega’s results to differ materially from those reflected in the forward-looking statements. Important risk factors related to the MedEquities transaction that may cause such a difference include, without limitation, risks and uncertainties related to (i) the risk that the conditions to closing of the Merger may not be satisfied including, without limitation, the MedEquities stockholder approval; (ii) the ability of Omega to integrate the acquired business successfully and to achieve anticipated cost savings and other synergies; (iii) the possibility that other anticipated benefits of the proposed Merger will not be realized, including, without limitation, anticipated revenues, expenses, earnings and other financial results; (iv) potential litigation relating to the proposed Merger that could be instituted; (v) the ability to meet expectations regarding the timing and closing of the Merger; and (vi) possible disruptions from the proposed Merger that could harm the businesses of Omega and/or MedEquities. These risks, as well as other risks associated with the proposed acquisition of MedEquities, are more fully discussed in the registration statement on Form S-4 that Omega has filed with the
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CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except per share amounts) |
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2018 | 2017 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Real estate properties | ||||||||
Real estate investments | $ | 7,746,410 | $ | 7,655,960 | ||||
Less accumulated depreciation | (1,562,619 | ) | (1,376,828 | ) | ||||
Real estate investments – net | 6,183,791 | 6,279,132 | ||||||
Investments in direct financing leases – net | 132,262 | 364,965 | ||||||
Mortgage notes receivable – net | 710,858 | 671,232 | ||||||
7,026,911 | 7,315,329 | |||||||
Other investments – net | 504,626 | 276,342 | ||||||
Investment in unconsolidated joint venture | 31,045 | 36,516 | ||||||
Assets held for sale – net | 989 | 86,699 | ||||||
Total investments | 7,563,571 | 7,714,886 | ||||||
Cash and cash equivalents | 10,300 | 85,937 | ||||||
Restricted cash | 1,371 | 10,871 | ||||||
Accounts receivable – net | 347,377 | 279,334 | ||||||
|
643,950 | 644,690 | ||||||
Other assets | 24,308 | 37,587 | ||||||
Total assets | $ | 8,590,877 | $ | 8,773,305 | ||||
LIABILITIES AND EQUITY | ||||||||
Revolving line of credit | $ | 313,000 | $ | 290,000 | ||||
Term loans – net | 898,726 | 904,670 | ||||||
Secured borrowings – net | — | 53,098 | ||||||
Senior notes and other unsecured borrowings – net | 3,328,896 | 3,324,390 | ||||||
Accrued expenses and other liabilities | 272,172 | 295,142 | ||||||
Deferred income taxes | 13,599 | 17,747 | ||||||
Total liabilities | 4,826,393 | 4,885,047 | ||||||
Equity: | ||||||||
Common stock |
20,235 |
19,831 |
||||||
Common stock – additional paid-in capital | 5,074,544 | 4,936,302 | ||||||
Cumulative net earnings | 2,130,511 | 1,839,356 | ||||||
Cumulative dividends paid | (3,739,197 | ) | (3,210,248 | ) | ||||
Accumulated other comprehensive loss | (41,652 | ) | (30,150 | ) | ||||
Total stockholders’ equity | 3,444,441 | 3,555,091 | ||||||
Noncontrolling interest | 320,043 | 333,167 | ||||||
Total equity | 3,764,484 | 3,888,258 | ||||||
Total liabilities and equity | $ | 8,590,877 | $ | 8,773,305 | ||||
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CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
Unaudited | ||||||||||||||||
(in thousands, except per share amounts) |
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Three Months Ended | Twelve Months Ended | |||||||||||||||
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|
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2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenue | ||||||||||||||||
Rental income | $ | 188,265 | $ | 194,579 | $ | 767,340 | $ | 775,176 | ||||||||
Income from direct financing leases | 262 | 614 | 1,636 | 32,336 | ||||||||||||
Mortgage interest income | 18,503 | 17,029 | 70,312 | 66,202 | ||||||||||||
Other investment income | 12,345 | 7,788 | 40,228 | 29,225 | ||||||||||||
Miscellaneous income | 375 | 1,196 | 2,166 | 5,446 | ||||||||||||
Total operating revenues | 219,750 | 221,206 | 881,682 | 908,385 | ||||||||||||
Expenses | ||||||||||||||||
Depreciation and amortization | 70,598 | 75,323 | 281,279 | 287,591 | ||||||||||||
General and administrative | 13,676 | 8,218 | 47,521 | 32,493 | ||||||||||||
Stock-based compensation | 3,880 | 3,862 | 15,987 | 15,212 | ||||||||||||
Acquisition costs | 383 | - | 383 | (22 | ) | |||||||||||
Impairment on real estate properties | 3,154 | 63,460 | 29,839 | 99,070 | ||||||||||||
Impairment on direct financing leases | 27,153 | 231 | 27,168 | 198,199 | ||||||||||||
Provision for uncollectible accounts | 326 | 913 | 6,689 | 14,580 | ||||||||||||
Total operating expenses | 119,170 | 152,007 | 408,866 | 647,123 | ||||||||||||
Other operating income | ||||||||||||||||
Gain on assets sold – net | 15,526 | 46,421 | 24,774 | 53,912 | ||||||||||||
Operating income |
116,106 | 115,620 | 497,590 | 315,174 | ||||||||||||
Other income (expense) | ||||||||||||||||
Interest income and other – net | (183 | ) | 5 | 313 | 267 | |||||||||||
Interest expense | (48,605 | ) | (48,253 | ) | (192,462 | ) | (188,762 | ) | ||||||||
Interest – amortization of deferred financing costs | (2,237 | ) | (2,243 | ) | (8,960 | ) | (9,516 | ) | ||||||||
Interest – refinancing costs | - | - | - | (21,965 | ) | |||||||||||
Contractual settlement | - | - | - | 10,412 | ||||||||||||
Realized gain on foreign exchange | 12 | 76 | 32 | 311 | ||||||||||||
Total other expense | (51,013 | ) | (50,415 | ) | (201,077 | ) | (209,253 | ) | ||||||||
Income from continuing operations | 65,093 | 65,205 | 296,513 | 105,921 | ||||||||||||
Income tax expense | (825 | ) |
|
(558 | ) | (3,010 | ) | (3,248 | ) | |||||||
Income from unconsolidated joint venture | 635 |
|
509 | 381 | 2,237 | |||||||||||
Net income | 64,903 | 65,156 | 293,884 | 104,910 | ||||||||||||
Net income attributable to noncontrolling interest | (2,687 | ) | (2,756 | ) | (12,306 | ) | (4,491 | ) | ||||||||
Net income available to common stockholders | $ | 62,216 | $ | 62,400 | $ | 281,578 | $ | 100,419 | ||||||||
Earnings per common share available to common stockholders: | ||||||||||||||||
Basic: | ||||||||||||||||
Net income available to common stockholders | $ | 0.31 | $ | 0.31 | $ | 1.41 | $ | 0.51 | ||||||||
Diluted: | ||||||||||||||||
Net income | $ | 0.31 | $ | 0.31 | $ | 1.40 | $ | 0.51 | ||||||||
Dividends declared per common share | $ | 0.66 | $ | 0.65 | $ | 2.64 | $ | 2.54 | ||||||||
Weighted-average shares outstanding, basic | 201,799 | 198,614 | 200,279 | 197,738 | ||||||||||||
Weighted-average shares outstanding, diluted | 212,132 | 207,646 | 209,711 | 206,790 | ||||||||||||
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FUNDS FROM OPERATIONS | ||||||||||||||||
Unaudited | ||||||||||||||||
(in thousands, except per share amounts) |
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Three Months Ended | Twelve Months Ended | |||||||||||||||
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2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income | $ | 64,903 | $ | 65,156 | $ | 293,884 | $ | 104,910 | ||||||||
Deduct gain from real estate dispositions | (15,526 | ) | (46,421 | ) | (24,774 | ) | (53,912 | ) | ||||||||
Add back loss from real estate dispositions of unconsolidated joint venture | — | — | 670 | — | ||||||||||||
Sub-total | 49,377 | 18,735 | 269,780 | 50,998 | ||||||||||||
Elimination of non-cash items included in net income: | ||||||||||||||||
Depreciation and amortization | 70,598 | 75,323 | 281,279 | 287,591 | ||||||||||||
Depreciation - unconsolidated joint venture | 1,372 | 1,657 | 5,876 | 6,630 | ||||||||||||
Add back non-cash provision for impairments on real estate properties | 3,154 | 63,460 | 29,839 | 99,070 | ||||||||||||
Add back non-cash provision for impairments on real estate properties of unconsolidated joint venture | — | — | 608 | — | ||||||||||||
Funds from operations (“FFO”) | $ | 124,501 | $ | 159,175 | $ | 587,382 | $ | 444,289 | ||||||||
Weighted-average common shares outstanding, basic | 201,799 | 198,614 | 200,279 | 197,738 | ||||||||||||
Restricted stock and PRSUs | 1,619 | 260 | 691 | 269 | ||||||||||||
Omega OP Units | 8,714 | 8,772 | 8,741 | 8,783 | ||||||||||||
Weighted-average common shares outstanding, diluted | 212,132 | 207,646 | 209,711 | 206,790 | ||||||||||||
Funds from operations available per share | $ | 0.59 | $ | 0.77 | $ | 2.80 | $ | 2.15 | ||||||||
Adjustments to calculate adjusted funds from operations: | ||||||||||||||||
Funds from operations | $ | 124,501 | $ | 159,175 | $ | 587,382 | $ | 444,289 | ||||||||
Deduct one-time revenue | (1,110 | ) | (513 | ) | (1,110 | ) | (2,394 | ) | ||||||||
Add back (deduct) unrealized loss (gain) on warrants | 211 | — | (160 | ) | — | |||||||||||
Deduct contractual settlement | — | — | — | (10,412 | ) | |||||||||||
Add back (deduct) acquisition costs | 383 | — | 383 | (22 | ) | |||||||||||
Add back one-time buy-out of purchase option | — | — | 2,000 | — | ||||||||||||
Add back impairment for direct financing leases | 27,153 | 231 | 27,168 | 198,199 | ||||||||||||
Add back provision for uncollectible accounts | 326 | 913 | 6,689 | 14,580 | ||||||||||||
Add back interest refinancing expense | — | — | — | 23,539 | ||||||||||||
Add back non-cash stock-based compensation expense | 3,880 | 3,862 | 15,987 | 15,212 | ||||||||||||
Adjusted funds from operations (“AFFO”) | $ | 155,344 | $ | 163,668 | $ | 638,339 | $ | 682,991 | ||||||||
Adjustments to calculate funds available for distribution: | ||||||||||||||||
Non-cash interest expense | $ | 2,212 | $ | 2,215 | $ | 8,855 | $ | 10,076 | ||||||||
Capitalized interest | (3,291 | ) |
|
(2,124 | ) | (11,093 | ) | (7,991 | ) | |||||||
Non-cash revenues | (16,029 | ) |
|
(14,718 | ) | (69,738 | ) | (64,117 | ) | |||||||
Funds available for distribution (“FAD”) | $ | 138,236 | $ | 149,041 | $ | 566,363 | $ | 620,959 | ||||||||
Funds From Operations (“FFO”), Adjusted FFO and Funds Available for Distribution (“FAD”) are non-GAAP financial measures. 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 exclude 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 income statement, balance sheet or statement of cash flows (or equivalent statements) of the company, or include 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 Company calculates and reports FFO in accordance with the definition and interpretive guidelines issued by the
Adjusted FFO is calculated as FFO excluding the impact of non-cash stock-based compensation and certain revenue and expense items identified above. FAD is calculated as Adjusted FFO less non-cash interest expense and non-cash revenue, such as straight-line rent. The Company believes these measures provide an enhanced measure of the operating performance of the Company’s core portfolio as a REIT. The Company’s computation of Adjusted FFO and FAD are not comparable to the NAREIT definition of FFO or to similar measures reported by other REITs, but the Company believes that they are appropriate measures for this Company.
The Company uses these non-GAAP measures among the criteria to measure the operating performance of its business. The Company also uses Adjusted FFO among the performance metrics for performance-based compensation of officers. The Company further believes that by excluding the effect of depreciation, amortization, impairments on real estate assets 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 these measures to assist the users of its financial statements in analyzing its operating performance and not as measures of liquidity or cash flow. These non-GAAP measures are not measures of financial performance under GAAP and should not be considered as measures of liquidity, alternatives to net income or indicators of any other performance measure determined in accordance with GAAP. Investors and potential investors in the Company’s securities should not rely on these non-GAAP measures as substitutes for any GAAP measure, including net income.
The following tables present selected portfolio information, including operator and geographic concentrations, and lease and loan maturities for the period ended |
As of |
As of |
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Balance Sheet Data |
Total # of |
Total |
% of |
# of |
# of |
|||||||
Real Estate Investments | 850 | $ | 7,746,410 | 90 | % | 838 | 83,883 | |||||
Direct Financing Leases | 17 | 132,262 | 2 | % | 17 | 1,639 | ||||||
Mortgage Notes Receivable | 54 | 710,858 | 8 | % | 54 | 5,814 | ||||||
921 | $ | 8,589,530 | 100 | % | 909 | 91,336 | ||||||
Assets Held For Sale | 3 | 989 | ||||||||||
Total Investments | 924 | $ | 8,590,519 | |||||||||
Investment Data |
Total # of |
Total |
% of |
# of |
# of |
Investment |
|||||||||
Skilled Nursing Facilities/Transitional Care |
792 |
$ |
7,077,402 |
82 |
% |
785 |
83,558 |
$ |
85 |
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|
129 | 1,512,128 | 18 | % | 124 | 7,778 | $ | 194 | |||||||
921 | $ | 8,589,530 | 100 | % | 909 | 91,336 | $ | 94 | |||||||
Assets Held For Sale | 3 | 989 | |||||||||||||
Total Investments | 924 | $ | 8,590,519 | ||||||||||||
(1) Excludes facilities which are non-operating, closed and/or not currently providing patient services. | |||||||||||||||
(2) Includes ALFs, memory care and independent living facilities. | |||||||||||||||
Revenue Composition ( |
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Revenue by Investment Type | Three Months Ended | Twelve Months Ended | ||||||||||
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Rental Property | $ | 188,265 | 86 | % | $ | 767,340 | 87 | % | ||||
Direct Financing Leases | 262 | 0 | % | 1,636 | 0 | % | ||||||
Mortgage Notes | 18,503 | 8 | % | 70,312 | 8 | % | ||||||
Other Investment Income and Miscellaneous Income - net | 12,720 | 6 | % | 42,394 | 5 | % | ||||||
$ | 219,750 | 100 | % | $ | 881,682 | 100 | % | |||||
Revenue by Facility Type | Three Months Ended | Twelve Months Ended | ||||||||||
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|
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Skilled Nursing Facilities/Transitional Care | $ | 180,023 | 82 | % | $ | 728,233 | 82 | % | ||||
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27,007 | 12 | % | 111,055 | 13 | % | ||||||
Other | 12,720 | 6 | % | 42,394 | 5 | % | ||||||
$ | 219,750 | 100 | % | $ | 881,682 | 100 | % | |||||
Rent/Interest Concentration by Operator |
# of |
2018 Q4 |
% of Total |
|||||
Ciena | 74 | $ | 94,466 | 11.9 | % | |||
|
45 | 59,489 | 7.5 | % | ||||
Genesis | 59 | 59,397 | 7.5 | % | ||||
Signature | 58 | 51,079 | 6.4 | % | ||||
Saber | 45 | 43,419 | 5.4 | % | ||||
HHC | 44 | 35,939 | 4.5 | % | ||||
Guardian | 35 | 34,712 | 4.3 | % | ||||
|
14 | 31,437 | 3.9 | % | ||||
Daybreak | 57 | 30,026 | 3.8 | % | ||||
Diversicare | 34 | 29,232 | 3.7 | % | ||||
Remaining Operators (3) | 421 | 327,650 | 41.1 | % | ||||
886 | $ | 796,846 | 100.0 | % | ||||
(1) | Excludes facilities which are non-operating, closed and/or not currently providing patient services. | |
(2) | Includes mezzanine and term loan interest. | |
(3) | Excludes 18 Orianna facilities, 4 Preferred Care facilities and one Safe Haven facility due to their bankruptcy status: all facilities of these three operators are expected to be transitioned or sold. |
Geographic Concentration by |
Total # of |
Total |
% of Total |
|||||
|
93 | $ | 839,303 | 9.8 | % | |||
|
114 | 826,333 | 9.6 | % | ||||
|
53 | 689,004 | 8.0 | % | ||||
|
58 | 592,798 | 6.9 | % | ||||
|
66 | 591,106 | 6.9 | % | ||||
|
47 | 499,430 | 5.8 | % | ||||
|
54 | 497,586 | 5.8 | % | ||||
|
19 | 280,717 | 3.3 | % | ||||
|
34 | 280,557 | 3.3 | % | ||||
|
32 | 277,436 | 3.2 | % | ||||
Remaining 31 states (2) | 296 | 2,820,117 | 32.8 | % | ||||
866 | 8,194,387 | 95.4 | % | |||||
|
55 | 395,143 | 4.6 | % | ||||
921 | $ | 8,589,530 | 100.0 | % | ||||
|
(1) | Excludes three properties with total investment of |
|
(2) |
Includes |
Rent and Loan Maturities ( |
As of |
||||||||||||||||
Operating Lease Expirations & Loan Maturities |
Year | Lease Rent | Interest |
Lease and Interest Rent |
% of Total Annualized Contractual Rent/Interest |
||||||||||||
2019 | 524 | 1,442 | 1,966 | 0.2% | |||||||||||||
2020 | 5,428 | 3,514 | 8,942 | 1.1% | |||||||||||||
2021 | 5,411 | - | 5,411 | 0.7% | |||||||||||||
2022 | 37,822 | - | 37,822 | 4.7% | |||||||||||||
2023 | 14,755 | - | 14,755 | 1.9% | |||||||||||||
Notes: |
Based on annualized 4th quarter 2018 contractual rent and interest. |
||||||||||||||||
Excludes Safe Haven contractual revenue of approximately |
|||||||||||||||||
The following tables present operator revenue mix, census and coverage data based on information provided by our operators as of |
Operator Revenue Mix (1) | As of |
||||||||
Medicaid |
Medicare / Insurance |
Private / Other | |||||||
Three-months ended |
53.9% | 33.7% | 12.4% | ||||||
Three-months ended |
52.7% | 34.8% | 12.5% | ||||||
Three-months ended |
51.3% | 36.4% | 12.3% | ||||||
Three-months ended |
52.9% | 34.6% | 12.5% | ||||||
Three-months ended |
52.9% | 34.7% | 12.4% | ||||||
(1) Excludes all facilities considered non-core. | |||||||||
Operator Census and Coverage (1) | Coverage Data | ||||||||
Occupancy (2) |
Before Management Fees |
After Management Fees |
|||||||
Twelve-months ended |
82.3% | 1.67x | 1.32x | ||||||
Twelve-months ended |
82.5% | 1.70x | 1.34x | ||||||
Twelve-months ended |
82.4% | 1.69x | 1.33x | ||||||
Twelve-months ended |
82.3% | 1.71x | 1.34x | ||||||
Twelve-months ended |
82.2% | 1.72x | 1.35x | ||||||
(1) Excludes all facilities considered non-core. | |||||||||
(2) Based on available (operating) beds. | |||||||||
The following table presents a debt maturity schedule as of |
||||||||||||||||
Debt Maturities |
Unsecured Debt |
|||||||||||||||
Year |
Line of Credit and Term Loans (1) |
Senior Notes/Other (2) |
Sub Notes (3) |
Total Debt Maturities |
||||||||||||
2019 | $ | - | $ | - | $ | - | $ | - | ||||||||
2020 | - | - | - | - | ||||||||||||
2021 | 313,000 | - | 20,000 | 333,000 | ||||||||||||
2022 | 902,990 | - | - | 902,990 | ||||||||||||
2023 | - | 700,000 | - | 700,000 | ||||||||||||
2024 | - | 400,000 | - | 400,000 | ||||||||||||
Thereafter | - | 2,250,000 | - | 2,250,000 | ||||||||||||
$ | 1,215,990 | $ | 3,350,000 | $ | 20,000 | $ | 4,585,990 | |||||||||
(1) | The |
|
(2) | Excludes net discounts and deferred financing costs. | |
(3) | Excludes |
|
The following table presents investment activity for the three and twelve month periods ended |
||||||||||||||||
Investment Activity ( |
Three Months Ended | Twelve Months Ended | ||||||||||||||
|
|
|||||||||||||||
Funding by Investment Type | $ Amount | % | $ Amount | % | ||||||||||||
Real Property | $ | 52,358 | 53.7 | % | $ | 104,855 | 22.2 | % | ||||||||
Construction-in-Progress | 37,274 | 38.2 | % | 127,945 | 27.2 | % | ||||||||||
Capital Expenditures | 7,950 | 8.1 | % | 52,985 | 11.2 | % | ||||||||||
Investment in Direct Financing Leases | - | 0.0 | % | 15 | 0.0 | % | ||||||||||
Mortgages | - | 0.0 | % | 44,200 | 9.4 | % | ||||||||||
Other | - | 0.0 | % | 141,300 | 30.0 | % | ||||||||||
Total | $ | 97,582 | 100.0 | % | $ | 471,300 | 100.0 | % | ||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190211005754/en/
Matthew Gourmand, SVP, Investor Relations
or
(410) 427-1700
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