Omega Healthcare Investors, Inc. (NYSE:OHI) (the “Company” or “Omega”) today announced its results of operations for the three- month period ended March 31, 2014. The Company also reported Funds From Operations (“FFO”) available to common stockholders for the three-month period ended March 31, 2014 of $84.4 million or $0.68 per common share. The $84.4 million of FFO available to common stockholders for the first quarter of 2014 includes $2.3 million of non-cash stock-based compensation expense, a charge of approximately $2.0 million of interest financing costs and $0.1 million of acquisition related costs. 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 $0.71 per common share for the three-month period ended March 31, 2014. FFO and Adjusted FFO are non-GAAP financial measures. Adjusted FFO is calculated as FFO available to common stockholders excluding the impact of certain non-cash items and certain items of revenue or expense, including, but not limited to: acquisition related costs, interest refinancing costs and stock-based compensation expense. For more information regarding FFO and Adjusted FFO, see the “First Quarter 2014 Results – Funds From Operations” section below.
GAAP NET INCOME
For the three-month period ended March 31, 2014, the Company reported net income available to common stockholders of $55.8 million, or $0.45 per diluted common share, on operating revenues of $121.0 million. This compares to net income available to common stockholders of $38.1 million, or $0.34 per diluted common share, on operating revenues of $101.8 million, for the same period in 2013.
The increase in net income was primarily due to additional operating revenue associated with approximately $717 million of net new investments made since January of 2013. These increases to revenue were partially offset by increased expenses associated with the new investments; including (i) $1.4 million in increased interest expense and (ii) $0.5 million in incremental general and administrative expenses. In addition, the Company recorded a $2.0 million loss relating to the write-off of deferred financing costs associated with the repayment and termination of the Company’s 2013 term loan facility.
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