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Omega Announces Second Quarter 2013 Financial Results; Adjusted FFO Of $0.62 Per Share For The Second Quarter

Stocks in this article: OHI

The $55.8 million of FFO for the three-month period ended June 30, 2012 includes the impact of the $1.7 million interest refinancing adjustment (gain), $1.5 million of stock-based compensation expense and $0.1 million of expense associated with recently completed acquisitions.

Adjusted FFO was $72.9 million, or $0.62 per common share, for the three months ended June 30, 2013, compared to $55.7 million, or $0.53 per common share, for the same period in 2012. The Company had 11.0 million additional weighted-average shares outstanding for the three months ended June 30, 2013 compared to the same period in 2012. For further information see “Funds From Operations” below.

FINANCING ACTIVITIES

$51 Million HUD Mortgage PayoffsOn May 31, 2013, the Company paid approximately $51 million to retire 11 mortgage loans guaranteed by the Department of Housing and Urban Development (“HUD”). The loans were assumed as part of the June 2010 purchase of 40 skilled nursing facilities (“SNFs”) from affiliates of CapitalSource, Inc. and had a blended interest rate of 6.61% per annum with maturities between January 2036 and May 2040. The payoff resulted in an $11.1 million gain on the extinguishment of the debt due to the write-off of the remaining fair market value adjustment offset by a prepayment fee of $0.2 million.

Equity Shelf Program and Dividend Reinvestment and Common Stock Purchase Plan – During the six-month period ended June 30, 2013, the Company sold the following shares of its common stock under its Equity Shelf Programs and its Dividend Reinvestment and Common Stock Purchase Plan:

 
Equity Shelf (At-The-Market) Program for 2013
(in thousands, except price per share)
     
Q1 Q2 Year
Total Total To Date
 
Number of shares 2,440 839 3,279
Average price per share $ 28.95 $ 35.74 $ 30.69
Gross proceeds $ 70,643 $ 29,999 $ 100,642
 
 
Dividend Reinvestment and Common Stock Purchase Program for 2013
(in thousands, except price per share)
     
Q1 Q2 Year
Total Total To Date
 
Number of shares 1,315 147 1,462
Average price per share $ 27.63 $ 35.89 $ 28.46
Gross proceeds $ 36,343 $ 5,280 $ 41,623
 

2013 PORTFOLIO AND RECENT DEVELOPMENTS

$25 Million Mezzanine Loan – On May 2, 2013, the Company invested $24.9 million in a mezzanine loan with a third party. The loan bears interest at 12% per annum and matures in December 2017.

$10 Million of Capital Renovation Projects in Q2 2013 – For the three-month period ending June 30, 2013, the Company invested approximately $10 million under its capital renovation programs.

Facility Sales For the three-month period ended June 30, 2013, the Company sold one facility in Texas for total cash proceeds of $2.2 million, resulting in a loss on sale of $1.2 million.

DIVIDENDS

On July 17, 2013, the Company’s Board of Directors announced a common stock dividend of $0.47 per share, increasing the quarterly common dividend by $0.01 per share over the prior quarter, to be paid August 15, 2013 to common stockholders of record on July 31, 2013.

2013 ADJUSTED FFO AND ADJUSTED FAD GUIDANCE

The Company revised its 2013 Adjusted FFO available to common stockholders to be between $2.48 and $2.51 per diluted share and its 2013 Adjusted Funds Available For Distribution (“FAD”) available to common stockholders to be between $2.23 and $2.26 per diluted share.

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