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Omega – OHI – Announces Third Quarter 2012 Financial Results

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Omega Healthcare Investors, Inc. (NYSE:OHI) announced its results of operations for the three- and nine-month period ended September 30, 2012.

OHI – Third Quarter 2012 Highlights

  • In October 2012, the Company increased its quarterly common stock dividend to $0.44 per share.
  • In August 2012, the Company completed $206 million of new investments with an existing operator.
  • In July 2012, the Company declared its quarterly common dividend of $0.42 per share.
  • In July 2012, Fitch Ratings initiated a BBB- rating on the Company’s senior unsecured notes.

OHI also reported Funds From Operations (“FFO”) available to common stockholders for the three-month period ended September 30, 2012 of $56.7 million or $0.52 per common share. The $56.7 million of FFO available to common stockholders for the third quarter of 2012 includes $1.5 million of non-cash stock-based compensation expense and $0.5 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”). Normalized or Adjusted FFO was $0.54 per common share for the three-month period ended September 30, 2012. 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: acquisitions and stock-based compensation expense. For more information regarding FFO and Adjusted FFO, see the “Third Quarter 2012 Results – Funds From Operations” section below.

OHI – GAAP Net Income

For the three-month period ended September 30, 2012, the Company reported net income and net income available to common stockholders of $30.1 million, or $0.27 per diluted common share, on operating revenues of $87.1 million. This compares to net income and net income available to common stockholders of $21.4 million, or $0.21 per diluted common share, on operating revenues of $72.8 million, for the same period in 2011.

For the nine-month period ended September 30, 2012, the Company reported net income and net income available to common stockholders of $86.8 million, or $0.81 per diluted common share, on operating revenues of $255.4 million. This compares to net income of $33.3 million and net income available to common stockholders of $28.2 million, or $0.28 per diluted common share, on operating revenues of $215.9 million, for the same period in 2011.

The year-to-date increase in net income was primarily due to the impact of: (i) additional rental income and mortgage interest income associated with approximately $575 million of new investments made since October 1, 2011; (ii) $7.2 million in incremental gains on asset sales; (iii) $24.7 million net decrease in real estate impairments; and (iv) $4.1 million net decrease in provision for uncollectible accounts receivable. These increases were partially offset by: (i) $7.8 million in increased depreciation expense associated with the new investments; (ii) $10.9 million in increased interest expense primarily associated with financing the new investments; and (iii) $2.3 million in increased interest refinancing costs relating to a $7.1 million charge associated with the tender and redemption of all of the Company’s outstanding $175 million of 7% Senior Notes due 2016 in March 2012, partially offset by (a) a $1.7 million interest refinancing expense adjustment (gain) related to the write-off of the unamortized premium on four HUD mortgage loans that the Company paid off in June 2012 and (b) a $3.1 million write-off of deferred cost associated with the termination of the Company’s 2010 credit facility in August 2011.

About Omega Healthcare Investors – OHI

OHI is a real estate investment trust investing in and providing financing to the long-term care industry. At September 30, 2012, OHI owned or held mortgages on 460 skilled nursing facilities, assisted living facilities and other specialty hospitals with approximately 53,269 licensed beds (51,117 available beds) located in 33 states and operated by 47 third-party healthcare operating companies.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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