Post Earnings Coverage as Omega’s Quarterly EPS Surged Approximately 96%; FFO per Share Grew 29%

Upcoming AWS Coverage on Welltower Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 28, 2017 / Active Wall St. announces its post-earnings coverage on Omega Healthcare Investors, Inc. (NYSE: OHI). The Company released its fourth quarter fiscal 2016 financial results on February 08, 2017. The health care real estate investment trust surpassed revenue and FFO expectations. On the conference call, Omega’s management stated that in six out of the last seven years it has delivered double-digit adjusted FFO growth. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of Omega Healthcare Investors’ competitors within the REIT – Healthcare Facilities space, Welltower Inc. (NYSE: HCN), reported its Q4 2016 financial results before the market opened on February 22, 2017. AWS will be initiating a research report on Welltower in the coming days.

Today, AWS is promoting its earnings coverage on OHI; touching on HCN. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

Omega’s operating revenues for the three-month period ended December 31, 2016, totaled $234.5 million and included $0.7 million of cash proceeds from a legal settlement and $18.3 million of non-cash revenue compared to operating revenues of $210.5 million, for the same period in 2015. The Company’s revenue numbers surpassed analysts’ consensus of $221.3 million.

Omega’s operating expenses for Q4 2016 totaled $87.8 million and were comprised of $70.8 million of depreciation and amortization expense, $7.5 million of general and administrative expense, $5.9 million in provisions for uncollectible mortgages, notes, and straight-line receivables and $3.7 million of stock-based compensation expense.

For the three-month period ended December 31, 2016, the Company reported net income of $129.9 million, or $0.63 per common share. This compared to net income of $63.5 million, or $0.32 per common share, for Q4 2015.

For Q4 2016, Omega reported Funds from Operations (FFO) of $171.5 million, or $0.84 per common share, compared to $127.4 million, or $0.65 per common share for Q4 2015. The Company’s Q4 2016 FFO includes the impact of $5.9 million in provisions for uncollectible mortgages, notes, and straight-line receivables, and $3.7 million of non-cash stock-based compensation expense, which were offset by a $0.7 million of one-time non-cash revenue. Omega’s Q4 2016 adjusted FFO was $180.4 million, or $0.88 per common share, compared to $159.4 million, or $0.81 per common share, for the same period in 2015. Omega’s adjusted FFO numbers exceeded market estimates of $0.85 per share.

Yearly Results

For the twelve-month period ended December 31, 2016, Omega reported net income of $383.4 million, or $1.90 per common share, on operating revenues of $900.8 million. This compared to net income of $233.3 million, or $1.29 per common share, on operating revenues of $743.6 million, for FY15.

The year-to-date increase in net income compared to the prior year was primarily due to revenue associated with the acquisition by merger of Aviv REIT, Inc. on April 01, 2015, and new investments completed in 2015 and 2016, and the reduction in 2016 acquisition and merger related costs.

For FY16, Omega reported FFO of $660.1 million, or $3.27 per common share, compared to $455.3 million, or $2.52 per common for FY15. For the reported year, the Company posted adjusted FFO of $688.7 million, or $3.42 per common share, compared to $564.4 million, or $3.13 per common share, for the year ago same period.

Recent Developments

Financing Activities – During the three-month period ended December 31, 2016, the Company sold 1.0 million shares of its common stock generating $30.0 million of gross proceeds.

Portfolio Activity – In Q4 2016, the Company completed transactions totaling $50 million of a new investment and $40 million in capital renovations and new construction. On November 01, 2016, the Company invested approximately $50.0 million in a joint venture, Second Spring Healthcare Investments, to acquire 64 skilled nursing facilities from Welltower, Inc. for approximately $1.1 billion. Second Spring is approximately 85% owned by affiliates of Lindsey Goldberg LLC and approximately 15% owned by the Company. Simultaneously, Second Spring entered into a new 15-year Master Lease with Genesis Healthcare. In addition to the new investment, in Q4 2016, Omega invested approximately $40 million under its capital renovation and construction-in-progress programs.

Asset Dispositions and Impairments – During Q4 2016, Omega sold 18 facilities for approximately $104.8 million in net proceeds recognizing a gain of approximately $30.3 million. Eleven of the sold facilities were previously classified as assets held for sale. The Company stated that its strategy to prune underperforming assets and non-strategic relationships resulted in sales of 38 facilities for $169.6 million in cash proceeds resulting in a gain of $50.2 million for the year ended December 31, 2016. As part of that process, the Company recorded $58.7 million of asset impairments in FY16.

As of December 31, 2016, Omega had 20 facilities, totaling $52.9 million, classified as assets held for sales. The Company expects to sell these facilities over the next few quarters.

Balance Sheet

Omega announced that it invested over $1.3 billion and raised $1.3 billion in new capital. The Company stated that its balance sheet is particularly strong with annualized pro-forma EBITDA in excess of $900 million and a funded debt to EBITDA ratio of 4.7 times.

Adjusted FFO Guidance

Omega currently expects its FY17 annual adjusted FFO available to common stockholders to be between $3.40 and $3.44 per diluted share. The Company’s adjusted FFO guidance for 2017 includes approximately $100 million of planned capital renovation projects. Omega’s funds available for distribution FAD guidance are in the range of $3.10 to $3.14 per share for FY17.

Stock Performance

At the close of trading session on Monday, February 27, 2017, Omega Healthcare Investors’ stock price marginally rose 0.89% to end the day at $32.84. A total volume of 1.72 million shares were exchanged during the session. The stock has advanced 15.88% and 10.46% in the last three months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 7.09%. The stock is trading at a PE ratio of 18.10 and has a dividend yield of 7.55%. Additionally, the stock currently has a market cap of $6.37 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 456179