Omega Announces Fourth Quarter 2019 Financial Results
Completed
Increased Quarterly Dividend by
Provides 2020 Net Income and AFFO Guidance
NAREIT FFO, AFFO and FAD are supplemental non-GAAP financial measures that we believe are useful in evaluating the performance of real estate investment trusts. For more information regarding these non-GAAP measures, see the “Funds From Operations” schedule below and the Company’s website at www.omegahealthcare.com.
GAAP NET INCOME
For the quarter ended
For the year ended
The year-to-date increase in net income compared to the prior year was primarily due to (i)
CEO COMMENTS
2020 RECENT DEVELOPMENTS AND FOURTH QUARTER HIGHLIGHTS
In Q1 2020, the Company…
- declared a
$0.67 per share quarterly common stock dividend.
In Q4 2019, the Company…
- completed the
$735 million Encore portfolio acquisition. - acquired a 49% interest in a
U.K. senior housing joint venture for$93 million from Healthpeak. - settled its 7.5 million common shares forward sale agreement executed in September, generating
$296 million in net proceeds. - sold 11 facilities for
$33 million in cash proceeds generating$3 million in gains. - invested
$57 million in capital renovation and construction-in-progress projects. - paid a
$0.67 per share quarterly common stock dividend, representing a$0.01 increase over Q3 2019.
In Q3 2019, the Company…
- issued
$500 million aggregate principal amount of 3.625% Senior Notes due 2029. - priced a public offering to sell 7.5 million common shares on a forward basis.
- sold 19 facilities for
$177 million in cash proceeds generating$53 million in gains. - completed
$33 million of new investments. - invested
$38 million in capital renovation and construction-in-progress projects. - paid a
$0.66 per share quarterly common stock dividend.
In Q2 2019, the Company…
- completed the
$623 million acquisition by merger of MedEquities. - invested
$55 million in capital renovation and construction-in-progress projects.
- paid a
$0.66 per share quarterly common stock dividend.
In Q1 2019, the Company…
- entered into a definitive merger agreement to acquire MedEquities.
- finalized the Orianna portfolio restructuring.
- invested
$42 million in capital renovation and construction-in-progress projects. - paid a
$0.66 per share quarterly common stock dividend.
FOURTH QUARTER 2019 RESULTS
Operating Revenues and Expenses – Revenues for the quarter ended
Expenses for the quarter ended
Other Income and Expense – Other income and expense for the quarter ended
Funds From Operations – For the quarter ended
The
The
Adjusted FFO was
2019 ANNUAL RESULTS
Revenues and Expenses – Revenues for the year ended
Expenses for the year ended
Other Income and Expense – Other income and expense for the year ended
Funds From Operations – For the year ended
The
The
Adjusted FFO was
FINANCING ACTIVITIES
7.5 Million Share Forward Stock Offering – On
Equity Shelf Program and Dividend Reinvestment and Common Stock Purchase Plan – During the quarter ended
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Equity Shelf (At-the-Market) Program for 2019 |
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(in thousands, except price per share) |
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Q1 |
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Q2 |
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Q3 |
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Q4 |
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Year To Date |
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Number of shares |
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2,221 |
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733 |
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124 |
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55 |
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3,133 |
Average price per share |
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$ |
35.26 |
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$ |
36.81 |
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$ |
36.54 |
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$ |
42.30 |
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$ |
35.80 |
Gross proceeds |
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$ |
78,325 |
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$ |
26,993 |
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$ |
4,498 |
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$ |
2,347 |
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$ |
112,163 |
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Dividend Reinvestment and Common Stock Purchase Plan for 2019 |
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(in thousands, except price per share) |
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Q1 |
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Q2 |
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Q3 |
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Q4 |
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Year To Date |
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Number of shares |
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892 |
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589 |
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997 |
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568 |
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3,046 |
Average price per share |
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$ |
36.19 |
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$ |
37.02 |
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$ |
37.87 |
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$ |
40.84 |
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$ |
37.77 |
Gross proceeds |
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$ |
32,286 |
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$ |
21,817 |
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$ |
37,742 |
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$ |
23,206 |
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$ |
115,051 |
2019 FOURTH QUARTER PORTFOLIO ACTIVITY
Q4 Portfolio Activity:
The 60 facilities, consisting of 58 skilled nursing facilities (“SNFs”) and two assisted living facilities (“ALFs”) representing 6,590 operating beds are located in
Asset Sales and Impairments:
Impairments and Assets Held for Sale – During the fourth quarter of 2019, the Company recorded an impairment charge of
As of
DIVIDENDS
On
TAX TREATMENT FOR 2019 DIVIDENDS
On
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Dividend Payment Date |
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% Taxable as Ordinary Income |
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% Taxable as Return of Capital |
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% Taxable as Capital Gain |
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66.5028% |
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22.3133% |
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11.1839% |
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66.5029% |
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22.3133% |
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11.1838% |
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66.5029% |
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22.3133% |
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11.1838% |
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66.5028% |
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22.3133% |
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11.1839% |
2020 GUIDANCE
The Company expects its 2020 annual net income to be between
The following table presents a reconciliation of Omega’s guidance regarding Adjusted FFO to projected GAAP earnings.
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2020 Annual |
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(per diluted common |
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share) |
Net Income |
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Depreciation |
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1.42 |
Depreciation – unconsolidated joint venture |
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0.05 |
Gain on assets sold – net |
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- |
NAREIT FFO |
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Adjustments: |
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Stock-based compensation expense |
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0.07 |
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 2020 includes (i) the annual impact of acquisitions completed in 2019, (ii) approximately
The Company's guidance is based on several 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 of collection of rental obligations from operators on a cash basis, 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
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
We caution you that the foregoing list of important factors may not contain all of the material factors that are important to you. Accordingly, readers should not place undue reliance on those statements. All forward-looking statements are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) |
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2019 |
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2018 |
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(Unaudited) |
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ASSETS |
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Real estate properties |
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Real estate investments |
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$ |
8,985,994 |
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$ |
7,746,410 |
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Less accumulated depreciation |
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(1,787,425 |
) |
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(1,562,619 |
) |
Real estate investments – net |
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7,198,569 |
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6,183,791 |
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Investments in direct financing leases – net |
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11,488 |
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132,262 |
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Mortgage notes receivable – net |
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773,563 |
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710,858 |
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7,983,620 |
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7,026,911 |
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Other investments – net |
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419,228 |
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504,626 |
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Investments in unconsolidated joint ventures |
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199,884 |
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31,045 |
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Assets held for sale – net |
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4,922 |
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989 |
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Total investments |
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8,607,654 |
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7,563,571 |
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Cash and cash equivalents |
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24,117 |
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10,300 |
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Restricted cash |
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9,263 |
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|
1,371 |
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Contractual receivables – net |
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27,122 |
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|
33,826 |
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Other receivables and lease inducements |
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381,091 |
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313,551 |
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644,415 |
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643,950 |
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Other assets |
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102,462 |
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|
24,308 |
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Total assets |
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$ |
9,796,124 |
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$ |
8,590,877 |
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LIABILITIES AND EQUITY |
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Revolving line of credit |
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$ |
125,000 |
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$ |
313,000 |
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Term loans – net |
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804,738 |
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|
898,726 |
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Secured borrowings |
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|
389,680 |
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— |
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Senior notes and other unsecured borrowings – net |
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3,816,722 |
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|
3,328,896 |
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Accrued expenses and other liabilities |
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|
312,040 |
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|
272,172 |
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Deferred income taxes |
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|
11,350 |
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|
13,599 |
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Total liabilities |
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5,459,530 |
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|
4,826,393 |
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Equity: |
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Common stock |
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22,663 |
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|
20,235 |
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Common stock – additional paid-in capital |
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5,992,733 |
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5,074,544 |
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Cumulative net earnings |
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2,463,436 |
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2,130,511 |
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Cumulative dividends paid |
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|
(4,303,546 |
) |
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|
(3,739,197 |
) |
Accumulated other comprehensive loss |
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|
(39,858 |
) |
|
|
(41,652 |
) |
Total stockholders’ equity |
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|
4,135,428 |
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|
3,444,441 |
|
Noncontrolling interest |
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|
201,166 |
|
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|
320,043 |
|
Total equity |
|
|
4,336,594 |
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|
|
3,764,484 |
|
Total liabilities and equity |
|
$ |
9,796,124 |
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$ |
8,590,877 |
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CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited (in thousands, except per share amounts) |
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Three Months Ended |
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Year Ended |
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2019 |
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2018 |
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2019 |
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2018 |
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Operating revenues |
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Rental income |
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$ |
212,175 |
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$ |
188,265 |
|
|
$ |
791,168 |
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$ |
767,340 |
|
Real estate tax and ground lease income |
|
|
2,437 |
|
|
|
— |
|
|
12,908 |
|
|
|
— |
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Income from direct financing leases |
|
|
259 |
|
|
|
262 |
|
|
|
1,036 |
|
|
|
1,636 |
|
Mortgage interest income |
|
|
19,780 |
|
|
|
18,503 |
|
|
|
76,542 |
|
|
|
70,312 |
|
Other investment income |
|
|
10,364 |
|
|
|
12,345 |
|
|
|
43,400 |
|
|
|
40,228 |
|
Miscellaneous income |
|
|
1,653 |
|
|
|
375 |
|
|
|
3,776 |
|
|
|
2,166 |
|
Total operating revenues |
|
|
246,668 |
|
|
|
219,750 |
|
|
|
928,830 |
|
|
|
881,682 |
|
|
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|
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|
|
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|
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Operating expenses |
|
|
|
|
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|
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|
|
|
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|
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Depreciation and amortization |
|
|
80,498 |
|
|
|
70,598 |
|
|
|
301,683 |
|
|
|
281,279 |
|
General and administrative |
|
|
9,917 |
|
|
|
13,676 |
|
|
|
41,790 |
|
|
|
47,521 |
|
Real estate tax and ground lease expense |
|
|
3,442 |
|
|
|
— |
|
|
16,141 |
|
|
|
— |
||
Stock-based compensation |
|
|
3,840 |
|
|
|
3,880 |
|
|
|
14,871 |
|
|
|
15,987 |
|
Acquisition and merger related costs |
|
|
43 |
|
|
|
383 |
|
|
|
5,115 |
|
|
|
383 |
|
Impairment on real estate properties |
|
|
35,719 |
|
|
|
3,154 |
|
|
|
45,264 |
|
|
|
29,839 |
|
Impairment on direct financing leases |
|
|
217 |
|
|
|
27,153 |
|
|
|
7,917 |
|
|
|
27,168 |
|
Provision for uncollectible accounts |
|
|
— |
|
|
326 |
|
|
|
— |
|
|
6,689 |
|
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Total operating expenses |
|
|
133,676 |
|
|
|
119,170 |
|
|
|
432,781 |
|
|
|
408,866 |
|
|
|
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|
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|
|
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|
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Other operating income |
|
|
|
|
|
|
|
|
|
|
|
|
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Gain on assets sold – net |
|
|
2,893 |
|
|
|
15,526 |
|
|
|
55,696 |
|
|
|
24,774 |
|
Operating income |
|
|
115,885 |
|
|
|
116,106 |
|
|
|
551,745 |
|
|
|
497,590 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
||||
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income and other – net |
|
|
735 |
|
|
|
(183 |
) |
|
|
856 |
|
|
|
313 |
|
Interest expense |
|
|
(52,793 |
) |
|
|
(48,605 |
) |
|
|
(199,151 |
) |
|
|
(192,462 |
) |
Interest – amortization of deferred financing costs |
|
|
(2,811 |
) |
|
|
(2,237 |
) |
|
|
(9,564 |
) |
|
|
(8,960 |
) |
Realized gain (loss) on foreign exchange |
|
|
104 |
|
|
|
12 |
|
|
|
(42 |
) |
|
|
32 |
|
Total other expense |
|
|
(54,765 |
) |
|
|
(51,013 |
) |
|
|
(207,901 |
) |
|
|
(201,077 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from continuing operations |
|
|
61,120 |
|
|
|
65,093 |
|
|
|
343,844 |
|
|
|
296,513 |
|
Income tax expense |
|
|
(893 |
) |
|
|
(825 |
) |
|
|
(2,844 |
) |
|
|
(3,010 |
) |
Income from unconsolidated joint ventures |
|
|
919 |
|
|
|
635 |
|
|
|
10,947 |
|
|
|
381 |
|
Net income |
|
|
61,146 |
|
|
|
64,903 |
|
|
|
351,947 |
|
|
|
293,884 |
|
Net income attributable to noncontrolling interest |
|
|
(1,606 |
) |
|
|
(2,687 |
) |
|
|
(10,824 |
) |
|
|
(12,306 |
) |
Net income available to common stockholders |
|
$ |
59,540 |
|
|
$ |
62,216 |
|
|
$ |
341,123 |
|
|
$ |
281,578 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
||||
Earnings per common share available to common stockholders: |
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|
|
|
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|
||||
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income available to common stockholders |
|
$ |
0.27 |
|
|
$ |
0.31 |
|
|
$ |
1.60 |
|
|
$ |
1.41 |
|
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
0.27 |
|
|
$ |
0.31 |
|
|
$ |
1.58 |
|
|
$ |
1.40 |
|
Dividends declared per common share |
|
$ |
0.67 |
|
|
$ |
0.66 |
|
|
$ |
2.65 |
|
|
$ |
2.64 |
|
Weighted-average shares outstanding, basic |
|
|
219,668 |
|
|
|
201,799 |
|
|
|
213,404 |
|
|
|
200,279 |
|
Weighted-average shares outstanding, diluted |
|
|
227,980 |
|
|
|
212,132 |
|
|
|
222,125 |
|
|
|
209,711 |
|
FUNDS FROM OPERATIONS Unaudited (in thousands, except per share amounts) |
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|
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|
|
Three Months Ended |
|
Year Ended |
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|
|
|
|
|
||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
61,146 |
|
|
$ |
64,903 |
|
|
$ |
351,947 |
|
|
$ |
293,884 |
|
Deduct gain from real estate dispositions |
|
|
(2,893 |
) |
|
|
(15,526 |
) |
|
|
(55,696 |
) |
|
|
(24,774 |
) |
(Deduct gain) add back loss from real estate dispositions of unconsolidated joint ventures |
|
|
— |
|
|
— |
|
|
(9,345 |
) |
|
|
670 |
|
||
Sub-total |
|
|
58,253 |
|
|
|
49,377 |
|
|
|
286,906 |
|
|
|
269,780 |
|
Elimination of non-cash items included in net income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
80,498 |
|
|
|
70,598 |
|
|
|
301,683 |
|
|
|
281,279 |
|
Depreciation - unconsolidated joint ventures |
|
|
1,625 |
|
|
|
1,372 |
|
|
|
6,513 |
|
|
|
5,876 |
|
Add back non-cash provision for impairments on real estate properties |
|
|
35,719 |
|
|
|
3,154 |
|
|
|
45,264 |
|
|
|
29,839 |
|
Add back non-cash provision for impairments on real estate properties of unconsolidated joint ventures |
|
|
— |
|
|
— |
|
|
— |
|
|
608 |
|
|||
(Deduct) add back unrealized (gain) loss on warrants |
|
|
(580 |
) |
|
|
211 |
|
|
|
(410 |
) |
|
|
(160 |
) |
NAREIT funds from operations (“NAREIT FFO”) |
|
$ |
175,515 |
|
|
$ |
124,712 |
|
|
$ |
639,956 |
|
|
$ |
587,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding, basic |
|
|
219,668 |
|
|
|
201,799 |
|
|
|
213,404 |
|
|
|
200,279 |
|
Restricted stock and PRSUs |
|
|
1,977 |
|
|
|
1,619 |
|
|
|
1,753 |
|
|
|
691 |
|
Net forward share contract |
|
|
397 |
|
|
|
— |
|
|
179 |
|
|
|
— |
||
Omega OP Units |
|
|
5,938 |
|
|
|
8,714 |
|
|
|
6,789 |
|
|
|
8,741 |
|
Weighted-average common shares outstanding, diluted |
|
|
227,980 |
|
|
|
212,132 |
|
|
|
222,125 |
|
|
|
209,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NAREIT funds from operations available per share |
|
$ |
0.77 |
|
|
$ |
0.59 |
|
|
$ |
2.88 |
|
|
$ |
2.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments to calculate adjusted funds from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Funds from operations |
|
$ |
175,515 |
|
|
$ |
124,712 |
|
|
$ |
639,956 |
|
|
$ |
587,222 |
|
Deduct one-time revenue |
|
|
(1,437 |
) |
|
|
(1,110 |
) |
|
|
(2,409 |
) |
|
|
(1,110 |
) |
Add back acquisition and merger related costs |
|
|
43 |
|
|
|
383 |
|
|
|
5,115 |
|
|
|
383 |
|
Add back one-time buy-out of purchase option |
|
|
— |
|
|
|
— |
|
|
— |
|
|
2,000 |
|
||
Add back one-time termination payment |
|
|
— |
|
|
|
— |
|
|
1,118 |
|
|
|
— |
||
Add back interest refinancing cost - unconsolidated joint ventures |
|
|
— |
|
|
|
— |
|
|
2,014 |
|
|
|
— |
||
Add back impairment for direct financing leases |
|
|
217 |
|
|
|
27,153 |
|
|
|
7,917 |
|
|
|
27,168 |
|
Add back uncollectible accounts (1) |
|
|
150 |
|
|
|
326 |
|
|
|
11,120 |
|
|
|
6,689 |
|
Add back restructuring costs |
|
|
21 |
|
|
|
— |
|
|
1,683 |
|
|
|
— |
||
Add back non-cash stock-based compensation expense |
|
|
3,840 |
|
|
|
3,880 |
|
|
|
14,871 |
|
|
|
15,987 |
|
Adjusted funds from operations (“AFFO”) |
|
$ |
178,349 |
|
|
$ |
155,344 |
|
|
$ |
681,385 |
|
|
$ |
638,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments to calculate funds available for distribution: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-cash interest expense |
|
$ |
2,788 |
|
|
$ |
2,212 |
|
|
$ |
9,467 |
|
|
$ |
8,855 |
|
Capitalized interest |
|
|
(3,341 |
) |
|
|
(3,291 |
) |
|
|
(13,876 |
) |
|
|
(11,093 |
) |
Non-cash revenues |
|
|
(14,096 |
) |
|
|
(16,029 |
) |
|
|
(60,861 |
) |
|
|
(69,738 |
) |
Funds available for distribution (“FAD”) |
|
$ |
163,700 |
|
|
$ |
138,236 |
|
|
$ |
616,115 |
|
|
$ |
566,363 |
|
(1) In 2019, the provision or charges for uncollectible rental revenue accounts (straight-line and contractual) are recorded through rental income. |
||||||||||||||||
NAREIT Funds From Operations (“NAREIT 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 NAREIT FFO in accordance with the definition and interpretive guidelines issued by the
Adjusted FFO is calculated as NAREIT 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 may not be comparable to the NAREIT definition of funds from operations 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 FAD 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, funds from operations 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
As of |
||||||||
|
|
|
|
Total |
|
|
|
# of |
|
# of |
||
Balance Sheet Data |
|
Total # of |
|
Investment |
|
% of |
|
Operating |
|
Operating |
||
|
|
Properties |
|
($000’s) |
|
Investment |
|
Properties (1) |
|
Beds (1) |
||
Real Estate Investments |
|
926 |
|
$ |
8,985,994 |
|
92 |
% |
|
913 |
|
91,784 |
Direct Financing Leases |
|
2 |
|
|
11,488 |
|
— |
% |
|
2 |
|
135 |
Mortgage Notes Receivable |
|
53 |
|
|
773,563 |
|
8 |
% |
|
49 |
|
5,465 |
|
|
981 |
|
$ |
9,771,045 |
|
100 |
% |
|
964 |
|
97,384 |
Assets Held For Sale |
|
6 |
|
|
4,922 |
|
|
|
|
|
|
|
Total Investments |
|
987 |
|
$ |
9,775,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
# of |
# of |
Investment |
|||||||
Investment Data |
|
Total # of |
Investment |
% of |
|
Operating |
Operating |
per Bed |
|||||||
|
|
Properties |
($000’s) |
Investment |
|
Properties (1) |
Beds (1) |
($000’s) |
|||||||
Skilled Nursing Facilities/Transitional Care |
|
852 |
|
$ |
8,192,307 |
|
84 |
% |
|
838 |
|
89,437 |
|
$ |
92 |
|
|
129 |
|
|
1,578,738 |
|
16 |
% |
|
126 |
|
7,947 |
|
$ |
199 |
|
|
981 |
|
$ |
9,771,045 |
|
100 |
% |
|
964 |
|
97,384 |
|
$ |
100 |
Assets Held For Sale |
|
6 |
|
|
4,922 |
|
|
|
|
|
|
|
|
|
|
Total Investments |
|
987 |
|
$ |
9,775,967 |
|
|
|
|
|
|
|
|
|
|
____________________ | |||||||||||||||
(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 ($000’s)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Investment Type |
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
|
|
|
||||||||
Rental Property |
|
$ |
212,175 |
|
86 |
% |
|
$ |
791,168 |
|
86 |
% |
Real Estate Tax and Ground Lease Income |
|
|
2,437 |
|
1 |
% |
|
|
12,908 |
|
1 |
% |
Direct Financing Leases |
|
|
259 |
|
— |
% |
|
|
1,036 |
|
— |
% |
Mortgage Notes |
|
|
19,780 |
|
8 |
% |
|
|
76,542 |
|
8 |
% |
Other Investment Income and Miscellaneous Income - net |
|
|
12,017 |
|
5 |
% |
|
|
47,176 |
|
5 |
% |
|
|
$ |
246,668 |
|
100 |
% |
|
$ |
928,830 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Facility Type |
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
|
|
|
||||||||
Skilled Nursing Facilities/Transitional Care |
|
$ |
204,668 |
|
83 |
% |
|
$ |
758,298 |
|
82 |
% |
|
|
|
27,546 |
|
11 |
% |
|
|
110,448 |
|
12 |
% |
Real Estate Tax and Ground Lease Income |
|
|
2,437 |
|
1 |
% |
|
|
12,908 |
|
1 |
% |
Other |
|
|
12,017 |
|
5 |
% |
|
|
47,176 |
|
5 |
% |
|
|
$ |
246,668 |
|
100 |
% |
|
$ |
928,830 |
|
100 |
% |
|
|
|
|
|
|
|
|
||
|
|
|
|
2019 Q4 |
|
% of Total |
|||
|
|
|
|
Annualized |
|
Annualized |
|||
|
|
# of |
|
Contractual |
|
Contractual |
|||
Rent/Interest Concentration by Operator ($000’s) |
|
Properties (1) |
|
Rent/Interest (1)(2) |
|
Rent/Interest |
|||
Ciena |
|
69 |
$ |
94,698 |
|
10.1 |
% |
||
Consulate |
|
82 |
|
85,678 |
|
9.2 |
% |
||
Genesis |
|
56 |
|
61,895 |
|
6.6 |
% |
||
|
|
42 |
|
59,937 |
|
6.4 |
% |
||
|
|
15 |
|
56,185 |
|
6.0 |
% |
||
Signature |
|
58 |
|
54,378 |
|
5.8 |
% |
||
Saber |
|
48 |
|
48,098 |
|
5.1 |
% |
||
HHC |
|
44 |
|
36,658 |
|
3.9 |
% |
||
Guardian |
|
35 |
|
35,506 |
|
3.8 |
% |
||
Airamid |
|
33 |
|
28,007 |
|
3.0 |
% |
||
Remaining Operators (3) |
|
481 |
|
374,568 |
|
40.1 |
% |
||
|
|
963 |
$ |
935,608 |
|
100.0 |
% |
||
___________________________________ | ||
(1) |
|
Excludes properties which are non-operating, closed and/or not currently providing patient services. |
(2) |
|
Includes mezzanine and term loan interest. |
(3) |
|
Excludes one multi-tenant medical office building. |
(4) |
|
Includes Carnegie Hill (2nd Avenue) revenue which is contractually effective 1/1/2020. |
|
|
|
|
|
|
|
|
||
|
|
Total # of |
|
Total |
|
% of Total |
|||
Geographic Concentration by Investment ($000’s) |
|
Properties (1) |
|
Investment (1) |
|
Investment |
|||
|
|
132 |
$ |
1,420,419 |
|
14.5 |
% |
||
|
|
127 |
|
940,434 |
|
9.6 |
% |
||
|
|
50 |
|
675,203 |
|
6.9 |
% |
||
|
|
69 |
|
635,086 |
|
6.5 |
% |
||
|
|
59 |
|
610,536 |
|
6.3 |
% |
||
|
|
55 |
|
596,330 |
|
6.1 |
% |
||
|
|
55 |
|
589,701 |
|
6.0 |
% |
||
|
|
41 |
|
349,446 |
|
3.6 |
% |
||
|
|
22 |
|
330,876 |
|
3.4 |
% |
||
|
|
— |
|
305,006 |
|
3.1 |
% |
||
Remaining 30 states |
|
316 |
|
2,906,002 |
|
29.8 |
% |
||
|
|
926 |
|
9,359,039 |
|
95.8 |
% |
||
|
|
55 |
|
412,006 |
|
4.2 |
% |
||
|
|
981 |
$ |
9,771,045 |
|
100.0 |
% |
___________________________________ | ||
(1) |
|
Excludes six properties with total investment of |
(2) |
|
Includes Inspīr Carnegie Hill (f/k/a |
The following tables present operator revenue mix, census and coverage data based on information provided by our operators for the indicated periods ended:
|
|
|
|
|
|
|
|
|
|
|||
Operating Lease Expirations & Loan Maturities ( |
|
As of |
||||||||||
|
|
|
|
|
|
|
|
% of Total |
||||
|
|
|
|
|
|
Annualized |
||||||
|
|
|
|
Lease and |
|
Contractual |
||||||
Year |
Lease Rent |
|
Interest |
|
Interest Rent |
|
Rent/Interest |
|||||
2020 |
|
$ |
1,611 |
$ |
125 |
$ |
1,736 |
0.2 |
% |
|||
2021 |
|
|
4,260 |
|
5,703 |
|
9,963 |
1.1 |
% |
|||
2022 |
|
|
36,903 |
|
102 |
|
37,005 |
4.0 |
% |
|||
2023 |
|
|
7,906 |
|
— |
|
7,906 |
0.8 |
% |
|||
2024 |
|
|
35,540 |
|
2,911 |
|
38,451 |
4.1 |
% |
|||
___________________________________ | ||
(1) |
Based on annualized 4th quarter 2019 contractual rent and interest. |
|
The following tables present operator revenue mix, census and coverage data based on information provided by our operators for the indicated periods ended. We have not independently verified this information, and we are providing this data for informational purposes only.
|
|
|
|
|
|
|
|
||
|
|
|
|
|
Medicare / |
|
|
||
Operator Revenue Mix (1) |
|
Medicaid |
|
Insurance |
|
Private / Other |
|||
Three-months ended |
|
53.4 |
% |
33.4 |
% |
13.2 |
% |
||
Three-months ended |
|
54.2 |
% |
33.3 |
% |
12.5 |
% |
||
Three-months ended |
|
53.7 |
% |
34.0 |
% |
12.3 |
% |
||
Three-months ended |
|
54.8 |
% |
33.3 |
% |
11.9 |
% |
||
Three-months ended |
|
53.9 |
% |
33.7 |
% |
12.4 |
% |
||
___________________________________ | ||
(1) |
|
Excludes all facilities considered non-core. |
|
|
|
|
|
|
||
Operator Census and Coverage (1) |
|
|
|
|
Coverage Data |
||
|
|
|
|
Before |
|
After |
|
|
|
Occupancy (2) |
|
Management |
|
Management |
|
|
|
|
|
Fees |
|
Fees |
|
|
|
|
|
|
|
||
Twelve-months ended |
|
83.4 |
% |
1.66x |
1.30x |
||
Twelve-months ended |
|
83.3 |
% |
1.66x |
1.30x |
||
Twelve-months ended |
|
82.7 |
% |
1.67x |
1.31x |
||
Twelve-months ended |
|
82.8 |
% |
1.67x |
1.32x |
||
Twelve-months ended |
|
82.3 |
% |
1.67x |
1.32x |
||
___________________________________ | ||
(1) |
|
Excludes all properties considered non-core. |
(2) |
|
Based on available (operating) beds. |
The following table presents a debt maturity schedule as of
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Debt Maturities ($000’s) |
|
Unsecured Debt |
|
|
|
|
|
|
|||||||
|
|
Line of Credit and |
|
Senior |
|
|
|
|
|
Total Debt |
|||||
Year |
Term Loans (1) |
|
Notes/Other (2) |
|
Sub Notes (3) |
|
Secured Debt |
|
Maturities |
||||||
2020 |
|
$ |
— |
$ |
— |
$ |
— |
|
$ |
— |
$ |
— |
|||
2021 |
|
|
125,000 |
|
— |
|
13,541 |
|
|
2,275 |
|
140,816 |
|||
2022 |
|
|
807,480 |
|
— |
|
— |
|
|
— |
|
807,480 |
|||
2023 |
|
|
— |
|
700,000 |
|
— |
|
|
— |
|
700,000 |
|||
2024 |
|
|
— |
|
400,000 |
|
— |
|
|
— |
|
400,000 |
|||
2025 |
|
|
— |
|
400,000 |
|
— |
|
|
— |
|
400,000 |
|||
Thereafter |
|
|
— |
|
2,350,000 |
|
— |
|
|
387,405 |
|
2,737,405 |
|||
|
|
$ |
932,480 |
$ |
3,850,000 |
$ |
13,541 |
|
$ |
389,680 |
$ |
5,185,701 |
|||
___________________________________ | ||
(1) |
|
The Line of Credit and Term Loans exclude |
(2) |
|
Excludes net discounts and deferred financing costs. |
(3) |
|
Excludes |
The following table presents investment activity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Activity ( |
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
|
|
|
||||||||
Funding by Investment Type |
|
$ Amount |
|
% |
|
$ Amount |
|
% |
||||
Real Property |
|
$ |
735,181 |
|
82.0 |
% |
|
$ |
760,065 |
|
44.9 |
% |
Construction-in-Progress |
|
|
38,158 |
|
4.3 |
% |
|
|
125,444 |
|
7.4 |
% |
Capital Expenditures |
|
|
18,729 |
|
2.1 |
% |
|
|
66,464 |
|
3.9 |
% |
Investment in Direct Financing Leases |
|
|
— |
|
— |
% |
|
|
— |
|
— |
% |
Mortgages |
|
|
— |
|
— |
% |
|
|
— |
|
— |
% |
Other |
|
|
103,962 |
|
11.6 |
% |
|
|
740,155 |
|
43.8 |
% |
Total |
|
$ |
896,030 |
|
100.0 |
% |
|
$ |
1,692,128 |
|
100.0 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20200205005804/en/
Matthew Gourmand, SVP, Investor Relations
or
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