Omega Announces Third Quarter 2016 Financial Results; $428M Of New Investments And Increased Dividend For 17th Consecutive Quarter

Omega Healthcare Investors, Inc. (NYSE:OHI) (the "Company" or "Omega") today announced its results of operations for the three-month period ended September 30, 2016. The Company reported for the three-month period ended September 30, 2016 net income of $82.1 million, or $0.40 per common share, Funds From Operations ("FFO") of $162.6 million or $0.80 per common share, and Funds Available For Distribution ("FAD") of $152.6 million.

Omega's CEO, Taylor Pickett, said, "We are pleased to report another outstanding quarter as we continue to source attractive acquisitions and deliver superior earnings and dividend growth. As we stated in August, we have returned to our $0.01 dividend increase this quarter, marking the 17 th consecutive quarterly dividend increase." Mr. Pickett, continued, "We continue to aggressively prune underperforming assets and non-strategic relationships. As a result, we recognized modest impairments of $17 million during the quarter. Assuming the completion of asset sales currently contemplated, we expect that gains on future sales will approximately offset the impairments recorded in 2016."

For the three-month period ended September 30, 2016, the Company reported net income of $82.1 million, or $0.40 per common share, on operating revenues of $224.6 million. This compares to net income of $83.3 million, or $0.43 per common share, on operating revenues of $202.0 million, for the same period in 2015.

For the nine-month period ended September 30, 2016, the Company reported net income of $253.5 million, or $1.26 per common share, on operating revenues of $666.3 million. This compares to net income of $169.8 million, or $0.97 per common share, on operating revenues of $533.1 million, for the same period in 2015.

The year-to-date increase in net income compared to the prior year was primarily due to revenue associated with the acquisition by merger (the "Aviv Merger") of Aviv REIT, Inc. ("Aviv") on April 1, 2015 and new investments completed in 2015 and 2016. This increase was partially offset by (i) $46.3 million in increased depreciation and amortization expense, (ii) $44.1 million in increased impairments on real estate assets, (iii) $6.5 million in increased interest expense and interest refinancing expense, (iv) $4.8 million in incremental general and administrative expenses, (v) $3.7 million increase in provisions for uncollectible mortgages, notes and straight-line receivables resulting from the Company repositioning assets from one operator to another and (vi) a $3.4 million increase in stock-based compensation expense.

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