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Omega Announces Third Quarter 2013 Financial Results; Adjusted FFO Of $0.63 Per Share For The Third Quarter

Adjusted FFO is calculated as FFO available to common stockholders excluding the impact of non-cash stock-based compensation and certain revenue and expense items identified above. 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 currently expects its 2013 Adjusted FFO available to common stockholders to be between $2.48 and $2.51 per diluted share. The Company also expects its 2013 Adjusted FAD available to common stockholders to be between $2.23 and $2.26 per diluted share. The following table presents a reconciliation of our guidance regarding 2013 FFO and Adjusted FFO and FAD and Adjusted FAD to net income available to common stockholders:

   
2013 Projected Adjusted

FFO and FAD

Per diluted share:    
Net income available to common stockholders $ 1.46 $ 1.48
Add back loss from real estate dispositions   0.01         0.01  
Sub total 1.47 1.49
Elimination of non-cash items included in net income:
Depreciation and amortization 1.04 1.05
Provision for impairment on real estate assets   0.00         0.00  
Funds from operations available to common stockholders $ 2.51 $ 2.54
 
Adjustments:
Acquisition costs 0.00 0.00
Provision for uncollectible accounts receivable 0.02 0.02
Interest expense – refinancing costs (0.10 ) (0.10 )
Stock-based compensation expense   0.05         0.05  
Adjusted funds from operations available to common stockholders $ 2.48 $ 2.51
 
Adjustments:
Non-cash interest expense 0.01 0.01
Non-cash revenue   (0.26 )       (0.26 )
Funds available for distributions $ 2.23       $ 2.26  
 

The following tables present selected portfolio information, including operator and geographic concentrations, and revenue maturities for the period ended September 30, 2013:

         
As of September 30, 2013
Balance Sheet Data # of Properties    

# of OperatingBeds

    Investment

($000’s)

    % Investment
Real Property (1) 444     49,185     $ 3,078,003     93 %
Loans Receivable 33     3,696       241,490     7 %
Total Investments 477 52,881 $ 3,319,493 100 %
 
Investment Data # of Properties    

# of OperatingBeds

    Investment

($000’s)

    % Investment    

Investmentper Bed

Skilled Nursing Facilities (1) 450 51,264 $ 3,164,938 95 % $ 62
Assisted Living Facilities 16 1,074 91,504 3 % 85
Specialty Hospitals and Other 11     543       63,051     2 %       116
477 52,881 $ 3,319,493 100 % $ 63
 
Note: table above excludes two facilities classified as held-for-sale and one closed facility.
(1) Includes a $19.2 million lease inducement.
 
                 
Revenue Composition ($000's)
                   
Revenue by Investment Type Three Months Ended Nine Months Ended
September 30, 2013     September 30, 2013
Rental Property (1) $ 93,837 91 % $ 280,015 91 %
Mortgage Notes 7,289 7 % 22,070 7 %
Other Investment Income   2,175     2 %       5,341     2 %
$ 103,301 100 % $ 307,426 100 %
                   
Revenue by Facility Type Three Months Ended Nine Months Ended
September 30, 2013     September 30, 2013
Skilled Nursing Facilities (1) $ 96,704 94 % $ 288,807 94 %
Assisted Living Facilities 2,415 2 % 7,250 2 %
Specialty Hospitals 2,007 2 % 6,028 2 %
Other   2,175     2 %       5,341     2 %
$ 103,301 100 % $ 307,426 100 %
 
(1) 3rd quarter revenue includes $0.9 million reduction for lease inducement and $2.8 million year-to-date.
 
       
Operator Concentration by Investment ($000's) As of September 30, 2013
# of Properties     Investment     % Investment
Genesis Healthcare 52     $ 350,489     11 %
CommuniCare Health Services, Inc. 36 344,515 10 %
Health & Hospital Corporation 40 279,490 8 %
Airamid Health Management 37 255,125 8 %
Signature Holdings II, LLC 32 236,772 7 %
S&F Management Company, LLC 14 212,373 6 %
Gulf Coast Master Tenant I, LLC 17 149,054 5 %
Guardian LTC Management Inc. (1) 23 145,171 4 %
Affiliates of Capital Funding Group, Inc. 17 129,697 4 %
Consulate Health Care. 17 117,654 4 %
Remaining 38 Operators 192       1,099,153     33 %
477 $ 3,319,493 100 %
 
Note: table above excludes two facilities classified as held-for-sale and one closed facility.
(1) Investment amount includes a $19.2 million lease inducement.
 
                   
Concentration by State # of Properties     Investment     % Investment
Florida 85     $ 609,517     18 %
Ohio 50 372,309 11 %
Indiana 50 318,585 10 %
California 22 187,032 6 %
Pennsylvania 25 180,858 5 %
Maryland 16 174,077 5 %
Texas 31 171,576 5 %
Michigan 21 154,872 5 %
Arkansas 23 125,912 4 %
Tennessee 16 118,922 4 %
Arizona 10 98,014 3 %
West Virginia (1) 11 94,996 3 %
Colorado 12 79,659 2 %
Kentucky 15 67,502 2 %
North Carolina 10 59,296 2 %
Massachusetts 8 57,347 2 %
Remaining 17 States 72       449,019     13 %
477 $ 3,319,493 100 %
 
Note: table above excludes two facilities classified as held-for-sale and one closed facility.
(1) Investment amount includes a $19.2 million lease inducement.
 
       
Revenue Maturities ($000's) As of September 30, 2013
Operating Lease Expirations & Loan Maturities Year    

Current LeaseRevenue (1)

   

CurrentInterestRevenue (1)

   

Lease andInterestRevenue

    %  
2013     268     550     818     0.2 %
2014 - - - 0.0 %
2015 3,237 - 3,237 0.9 %
2016 29,446 - 29,446 7.9 %
2017 7,525 - 7,525 2.0 %
 
(1) Based on 2013 contractual rents and interest (without giving effect to annual escalators).
 

The following tables present operator revenue mix, census and coverage data based on information provided by our operators:

       
Operator Revenue Mix % Revenue Mix
Medicaid    

Medicare /Insurance

    Private / Other
       
Three-months ended June 30, 2013 53.2% 38.8% 8.0%
Three-months ended March 31, 2013 51.9% 40.2% 7.9%
Three-months ended December 31, 2012 53.2% 38.0% 8.8%
Three-months ended September 30, 2012 53.3% 38.3% 8.4%
Three-months ended June 30, 2012 52.6% 39.1% 8.3%
 
           
Operator Census and Coverage       Coverage Data

Census (1)

   

BeforeManagement Fees

   

AfterManagement Fees

   
Twelve-months ended June 30, 2013 83.8% 1.9x 1.5x
Twelve-months ended March 31, 2013 83.9% 2.0x 1.5x
Twelve-months ended December 31, 2012 83.4% 2.0x 1.5x
Twelve-months ended September 30, 2012 83.6% 2.0x 1.5x
Twelve-months ended June 30, 2012 83.7% 2.0x 1.6x
 

(1) Based on available beds.

 

The following table presents a debt maturity schedule as of September 30, 2013:

                   
Debt Maturities ($000’s) Secured Debt     Unsecured Debt    
Year HUD Mortgages (1)     Line of Credit (2)(3)     Senior Notes

(4)

    Sub Notes (5)     Total Debt
2013 $ -     $ -     $ -     $ - $ -
2014 - - - - -
2015 - - - - -
2016 - 500,000 - - 500,000
2017 - 200,000 - - 200,000
Thereafter   281,648       -       1,175,000       20,000       1,476,648
$ 281,648     $ 700,000     $ 1,175,000     $ 20,000     $ 2,176,648
 
(1) Excludes $18.4 million of fair market valuation (adjustments).
(2) Reflected at 100% borrowing capacity.
(3) Comprised of a $500 million revolver due 2016 and a $200 million term loan due 2017.
(4) Excludes net premium of $4.1 million.
(5) Excludes $0.9 million of fair market valuation (adjustments).
 

The following table presents investment activity for the three- and nine-month period ended September 30, 2013:

             
Investment Activity ($000's) Three Months Ended     Nine Months Ended
September 30, 2013     September 30, 2013
Funding by Investment Type: $ Amount     %       $ Amount     %  
       
Real Property $ - 0 % $ - 0 %
Mortgages 358 5 % 3,228 6 %
Other   6,425     95 %       48,674     94 %
Total $ 6,783 100 % $ 51,902 100 %
 




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