Post on 20-Jul-2020
Investor Presentation
February 2020
Investor Presentation - February 2020
Forward-looking Statements and Non-GAAP Information
2
➢ This presentation may include projections and other “forward-looking statements” within the meaning of the Private SecuritiesLitigation Reform Act of 1995. Such statements relate to future events and expectations and involve unknown risks anduncertainties. Omega’s actual results or actions may differ materially from those projected in the forward-looking statements.For a summary of the specific risk factors that could cause results to differ materially from those expressed in the forward-lookingstatements, see Omega’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission.
➢ This presentation may contain certain non-GAAP financial information including EBITDA, Adjusted EBITDA, Total Adjusted Debt(a/k/a, Funded Debt), Adjusted FFO, FAD, Total Cash Fixed Charges and certain related ratios. A reconciliation of these non-GAAPdisclosures is available in the Exhibit to this presentation or on our website under “Non-GAAP Financial Measures” atwww.omegahealthcare.com. Other financial information is also available on our website.
➢ Information is provided as of December 31, 2019, unless specifically stated otherwise. We assume no duty to update orsupplement the information provided.
Omega Overview
Investor Presentation - February 2020
Omega Overview: Key Credit Highlights
4
Financial Strength
Portfolio Strength
◼ Strong core portfolio TTM rent coverage of 1.66x (EBITDARM) and 1.30x (EBITDAR) at 9/30/2019
◼ Geographic and operator diversification with 71 operators across 40 states and the United Kingdom
◼ No upcoming material lease expirations and no material lease renewal risk
◼ Favorable near-term supply and demand outlook
◼ Conservative leverage level with Funded Debt / Adj. Pro Forma EBITDA of 5.19x (4Q 2019) (1)
◼ Consistent and stable free cash flow with strong fixed charge coverage of 4.00x (4Q 2019) (1)
◼ Minimal secured borrowing; $9.8 billion+ of unencumbered real estate assets
◼ Minimal short-term debt maturities
◼ Positive ratings trajectory with history of upgrades and commitment to investment grade profile
◼ Significant liquidity with ~$1.05 billion of cash and credit facility availability at 02/24/2020
Experienced Management
Team
◼ Senior management team (CEO, COO, & CFO) with average tenure over 18+ years
◼ Proven ability to execute on strategies
◼ Proven ability to handle troubled assets
1) See 4Q 2019 Supplemental for detailed calculation
Investor Presentation - February 2020
Omega Overview: Facility and Investment Overview at December 31, 2019
5
◼ Omega is the largest SNF-focused REIT
◼ As of December 31, 2019, Omega’s portfolio consisted of 964 (1) operating facilities
◼ During 2019, Omega completed approximately $1.7 billion of new investments in 2019 (including CAPEX funding)
Facility Investment Statistics Rent/Interest Statistics (2)
Skilled Nursing/Transitional
Care, 83.8%
Senior Housing,
16.2%
Rental Property,
86.0%
RE Tax & Ground Leases,
1.0%
Direct Financing
Leases, 0.1%
Mortgage Notes, 8.0%
Other, 4.9%
1) Excludes facilities which are non-operating, closed and/or not currently providing patient services2) 3 month period ended December 31, 2019
Investor Presentation - February 2020
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
$22.00
$24.00
$26.00
$28.00
$30.00
$32.00
$34.00
$36.00
$38.00
$40.00
$42.00
$44.00
$46.00
Financial Overview: Annual Shareholder Returns
6
1/1/2004 to 12/31/2019
OHI Share Price: 353.9%
RMZ Index: 118.5%
Annual Dividends as of 2/15/2020
3 Year Total Growth: 10.4%
5 Year Total Growth: 29.1%
10 Year Total Growth: 118.3%
1/1/2004 to 12/31/2019
Real Estate Investments: 17.3%
Operating Revenue: 16.8%
Adjusted FFO per Share: 8.9%
OHI Share Price: 9.9%
Dividend Yield at $0.67/Share Per Quarter 6.0%
(based on closing price on 2/21/2020 of $44.65)
Omega Share Price Growth, 12/31/2002-1/31/2020
Compounded Annual Growth Rates Total Growth Percentages
Investor Presentation - February 2020
72.0%57.0%
338.0%
23.3% 29.9%
177.5%
0%
50%
100%
150%
200%
250%
300%
350%
400%
3 Yr. Returns 5 Yr. Returns 10 Yr. Returns
Omega Peers
Financial Overview: Annual Shareholder Returns (cont’d)
7
Total Return (1) Ann. Equiv. Ranking (1)
3 Year: 72.2% 19.9% 4th
5 Year: 56.7% 9.4% 5th
10 Year: (2) 338.0% 15.9% 2nd
1) Ranking among healthcare REITs. Source of Total Returns and Ranking: KeyBanc Capital Markets The Leaderboard, December 31, 20192) Ranked 27th among all 113 publicly traded equity REITs with at least 10 years of return history. Source: KeyBanc Capital Markets The Leaderboard, December 31, 20193) Source: KeyBanc Capital Markets The Leaderboard, December 31, 2019. Peer returns are simple average of returns of NHI, HR, LTC, SABRA, VTR, WELL, and PEAK
Shareholder Returns Through 12/31/2019 Dividends per Share and Return of Capital %
Omega's Total Returns vs Healthcare REIT Averages (3)
(Years ending 12/31/2019)
Tax Treatment ($) Tax Treatment (%)
Total
Dividends
Ordinary (1)
Income
Return of (1)
Capital
Capital Gain (1)
Distribution
% Ordinary
Income
% Return of
Capital
% Capital Gain
Distribution
2014 2.02 1.83 0.19 - 90.8% 9.2% 0.0%
2015 2.18 1.13 1.05 - 52.0% 48.0% 0.0%
2016 2.36 1.97 0.32 0.07 83.4% 13.6% 3.0%
2017 2.54 1.57 0.93 0.04 61.8% 36.6% 1.6%
2018 2.64 1.69 0.93 0.02 64.0% 35.3% 0.7%
2019 2.65 1.76 0.59 0.30 66.5% 22.3% 11.2%
14.39$ 9.96$ 4.00$ 0.13$ 69.7% 27.5% 2.7%
1) Rounded to two decimals
Investor Presentation - February 2020
Omega Overview: Quarterly Highlights
8
1Q 2020
➢ Paid a $0.67 per share quarterly common stock dividend
4Q 2019
➢ Completed a $735 million acquisition (the “Encore Portfolio”)➢ Purchased a 49% interest in a U.K. senior housing joint venture for $90 million➢ Paid a $0.67 per share quarterly common stock dividend, a $0.01 increase over the prior quarter
3Q 2019
➢ Issued $500 million 3.625% Senior Notes due 2029
➢ Completed a 7.5 million share forward equity sale of common stock at an offering price of $40.32/share; shares will be issued by September 2020, as needed, for acquisitions and general corporate activities
➢ Signed a Purchase and Sale Agreement to acquire $735 million of skilled nursing and assisted living facilities
➢ Completed a $25 million acquisition in July
➢ Paid a $0.66 per share quarterly common stock dividend
2Q 2019
➢ Completed the $623 million acquisition by merger of MedEquities➢ Invested $55 million in capital renovation and construction-in-progress projects➢ Paid a $0.66 per share quarterly common stock dividend
1Q 2019
➢ Entered into a definitive merger agreement to acquire MedEquities Realty Trust, Inc.➢ Invested $42 million in capital renovation and construction-in-progress projects➢ Finalized the Orianna restructuring➢ Paid a $0.66 per share quarterly common stock dividend
4Q 2018
➢ Completed $53 million in new investments➢ Invested $45 million in capital renovation and construction-in-progress projects➢ Sold 15 assets for cash consideration of $67 million, recognizing a gain of $15.5 million➢ Paid a $0.66 per share quarterly common stock dividend
Investor Presentation - February 2020
Omega Overview Proven Track Record of Growth and New Investments
◼ Continue to pursue selective investments
➢ Additionally, the Company has approximately $170 million committed to its operators for capital improvement and new construction projects to be completed over the next 12-18 months (as of 12/31/2019)
◼ Continue to pursue accretive transactions
◼ Leverage existing 71 operator relationships
◼ Invest primarily in current core markets
◼ Maintain focus on senior care facilities
◼ Use credit facility to make acquisitions and replenish availability with long-term debt and equity issuances
◼ Approximately $1.05 billion of combined cash and credit facility availability as of February 24, 2020
1) Includes approximately $3.9 billion acquisition via merger of Aviv REIT on April 1, 20152) Excludes investments made by Aviv prior to acquisition via merger by Omega3) Includes approximately $623 million acquisition via merger of MedEquities Realty Trust (MRT) on May 17, 2019
Omega’s Growth Strategy
9
➢ 2004 - 2007 Investments: $686 million
➢ 2008 New Investments: $197 million
➢ 2009 New Investments: $292 million
➢ 2010 New Investments: $638 million
➢ 2011 New Investments: $365 million
➢ 2012 New Investments: $510 million
➢ 2013 New Investments: $621 million
➢ 2014 New Investments: $566 million
➢ 2015 New Investments: $4,414 million (1)(2)
➢ 2016 New Investments: $1,328 million
➢ 2017 New Investments: $530 million
➢ 2018 New Investments: $471 million
➢ 2019 New Investments: $1,692 million (3)
$12.3 billion
Demographics to Drive Growth
Investor Presentation - February 2020
Industry Overview: Demographic Tailwinds Expected to Drive Occupancy Growth for Next 20 Years
11
➢ The SNF industry has been battling with unfavorable demographics for more than a decade with the aging of the "baby bust" generation
➢ Based on birth rates beginning in the 1940s and current SNF utilization information, we believe the industry is at the beginning of a 20+ year secular tailwind
➢ This belief is based on the following (as the subsequent slides illustrate):
▪ Medicare utilization of SNFs materially increases from 75 years old
▪ This utilization increases through their late 80's
▪ "Baby boomers" started turning 75 in 2016
▪ The age 75+ cohort will grow on both an absolute and relative basis through at least 2040 as the baby boomers replace the baby bust generation within the 75+ population
➢ The percentage of hospital discharges to SNFs has remained steady in recent years, suggesting SNFs are in a prime position to benefit from this demographic wave
Investor Presentation - February 2020
Industry Overview: Significant Increase in SNF Utilization by Those Aged 75+
12
Source: Avalere analysis of Medicare Part A 100% Standard Analytic File (SAF) for 2016
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95
SNF
Day
s p
er 1
,00
0 B
enef
icia
ries
SNF Utilization by Age
Average Annual Increase in SNF Utilization by Age(Per 1,000 Beneficiaries)
From age 65 to 75 99 days per year
From age 75 to 85 247 days per year
Investor Presentation - February 2020
Industry Overview: Baby Boomers Started Turning 75 in 2016
13
Source: www.cdc.gov
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Bir
ths
(00
0’s
)U.S. Birthrates, 1909 to 1980
1928 to 1940Avg. 2,476
1941 to 1964Avg. 3,767
Investor Presentation - February 2020
Industry Overview: Continued Significant Growth of 75+ as Percentage of Total U.S. Population
14
Note: Percentages represent percentage of total US populationSource: U.S. Census 2010, Weldon Cooper Center for Public Service, Demographics Research Group
4.0
%
5.5
%
5.7
%
4.8
%
3.0
%
4.4
% 5.1
%
4.5
%
2.4
% 3.0
% 4.1
%
4.3
%
1.9
%
1.9
% 2.8
%
3.3
%
1.8
%
1.9
%
2.1
% 2.9
%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
2010 2020 2030 2040
Age Cohort by Year
Age 65+ Cohorts as a Percentage of the Total U.S. Population
65-69 70-74 75-79 80-84 85+
75+6.1%
(18.8MM)
75+6.8%
(22.7MM)
75+9.0%
(32.5MM)
75+10.5%
(40.2MM)
Investor Presentation - February 2020
Industry Overview: Percentage of Hospital Discharges to SNFs has Remained Steady in Recent Years
15
19.3% 19.8% 20.2% 20.3% 20.0%
16.4% 16.8% 16.8% 17.0% 17.2%
6.0% 6.1% 6.2% 6.2% 6.1%
3.3% 3.4% 3.4% 3.3% 3.3%
2.7% 2.8% 2.9% 3.0% 3.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2012 2013 2014 2015 2016
Medicare FFS Hospital Discharge Destinations, 2012-2016(excludes discharges back to patients’ homes without home health)
Source: Avalere analysis of Medicare Standard Analytic File (SAF) for the period 2012 – 2016
Skilled Nursing Facilities
Home Health Care
Other(Incl. IRF & LTACH)
Death
Hospice
SNF Industry and Reimbursement Overview
Investor Presentation - February 2020
Attractive Fundamentals: Primary PAC Site
17
SNFs – preferred post-acute care environment with growing demand and limited supply
Medicare
Acute
Hospital
Discharges
44% Sent to Post-Acute
SNFs
48%
HHAs
41%
IRFs
9%
LTACHs
2%
Source: MedPAC Data Book, June 2019
Investor Presentation - February 2020
Growth in SNF Census, by Age Cohort
18
<65210
<65214
<65217
<65220
<65224
65-74224
65-74269
65-74302
65-74320
65-74311
75-84358
75-84427
75-84548
75-84661
75-84749
85+565
85+603
85+671
85+819
85+1,068
- 100 200 300 400 500 600 700 800 900
1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 2,500
2015 2020 2025 2030 2035
Nu
mb
er
of
SNF
Re
sid
en
ts (0
00
's)
<65 65-74 75-84 85+
Maximum current SNF capacity
Source: CMS Nursing Home Data Compendium (2015 Edition) for percentage of SNF residents by age cohort and US Census Bureau data for population growth projections by age cohort.
82%
91%
105%
122%
142% Occupancy
Aging demographics would drive SNF occupancy beyond capacity in less than 10 years without efforts to reduce lengths of stay and
increased utilization of alternative care sites.
Investor Presentation - February 2020
Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Dec '14 Dec '15 Dec '16 Dec '17 Dec '18
Certified Beds 1,667k 1,670k 1,665k 1,667k 1,666k 1,663k 1,662k 1,662k 1,662k 1,654k
Patients in Certified Beds 1,400k 1,394k 1,384k 1,383k 1,372k 1,368k 1,357k 1,347k 1,337k 1,319k
Certified Facilities 15.7k 15.7k 15.6k 15.7k 15.7k 15.6k 15.7k 15.7k 15.7k 15.6k
15.0k
15.1k
15.2k
15.3k
15.4k
15.5k
15.6k
15.7k
15.8k
15.9k
16.0k
1,300k
1,350k
1,400k
1,450k
1,500k
1,550k
1,600k
1,650k
1,700k
Ce
rtif
ied
Fac
ilit
ies
Be
ds
& P
atie
nts
Trend in Certified Nursing Facilities, Beds and Residents
Industry Overview: Attractive Fundamentals
19
Supply of facilities and beds to meet increasing future demand is limited due to CON restrictions, increasing occupancy prospects for existing facilities
(figures in 000s, unlessotherwise indicated)
Source: Compiled by American Health Care Association (AHCA) Research Department from CMS OSCAR/CASPER survey data (2009-2018)
Investor Presentation - February 2020
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
OHI Occ. % 84.6% 84.1% 84.0% 83.4% 83.3% 84.5% 82.5% 82.2% 82.2% 82.2%
Industry Occ. % 84.0% 83.4% 83.1% 82.9% 82.3% 82.3% 81.6% 81.1% 80.5% 79.7%
65.0%
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
SNF Industry and Omega Portfolio Occupancy Trends2009 through 2018
OHI Occ. % Industry Occ. %
Industry Overview: Attractive Fundamentals
20
➢ Occupancy Rate Trends
Source: Industry data compiled by AHCA Research Department from CMS OSCAR/CASPER survey data (2009-2018)
1) 2015 - 2018 OHI occupancy reflects inclusion of legacy Aviv REIT facilities
(1)
Investor Presentation - February 2020
Industry Overview: Reimbursement Outlook
21
Medicare➢ Inflationary increases for fee-for-service PPS rates set at 2.4% effective October 1, 2019.
➢ Fee-for-service payment reform commenced in October 2019. It eliminated PPS RUG-based payments and uses the replacement reimbursement model, Patient-Driven Payment Model (PDPM), effectively reducing payments for therapy services while enhancing payments for complex nursing care and incentivizing lower lengths of stay; overall revenue neutrality budgeted but margin increases should result from a reduction in required MDS patient care assessments and use of cost-effective group and concurrent therapy protocols.
Medicaid
➢ Healthy state budgets nationwide (per June 2019 NASBO (1) report) support expectation that rates will generally keep pace with growth in operating expenses for FY 2019/2020.
➢ Omega's geographic diversification helps minimize impact of rate changes in any particular state
Average Medicare and Medicaid Rates by Quarter for Omega’s Entire Portfolio (2)
(through September 30, 2019)
1) National Association of State Budget Officers2) Rate for each month is calculated by dividing total Portfolio Operator Medicare/Medicaid revenues by total Portfolio Operator Medicare/Medicaid days.
Portfolio Overview
Investor Presentation - February 2020
Portfolio Overview: Summary
23
➢ As of December 31, 2019
▪ 964 operating healthcare facilities, located in 40 states and the UK, operated by 71 third-party operators
▪ Gross real estate investments of approximately $10.4B
➢ Focused on leasing long-term care facilities (primarily skilled nursing facilities) to strong regional and local operators
➢ Long term triple-net master leases with cross collateralization provisions
▪ Strong credit profiles
▪ Security deposits of three to six months
▪ Monthly reporting requirements
➢ Property level expenses are operator’s responsibility (labor, insurance, property taxes, capital expenditures)
➢ Omega receives fixed rent payments from tenants, with annual escalators
➢ Operators receive revenues through reimbursement of Medicare, Medicaid and private pay for services
Investor Presentation - February 2020
Facility Map at December 31, 2019
24
1) Many operators have facilities in multiple states2) Excludes non-operating facilities, closed and/or
not currently providing patient services3) Includes New York City 2nd Avenue development project
(No. of Operators No. of Facilities)
<10 facilities
10 to 20 facilities
>20 facilities
State Concentration Key
425MS
16NM
11WI
410NV
1059CA
417WA
510ID
2 9AZ
16124TX
214 CO
29IA
518MO
29AR
216LA
769IN
951OH
321KY
635 TN
29AL
10129FL
310GA
541 NC
411WV
754PA
29MA
13 NH
11VT
14 RI
212 MD215
KS
36OK
MI348
WY
ND
SD11
NY
NJ
ME
36OR
28SC
722VA
23MT
14NE
13MN
28CT
255
UnitedKingdom
Operators: 71 (1)
Facilities: 964 (2)
States: 40 (3)
Foreign Countries: 1 (UK)
UT IL
Investor Presentation - February 2020
Portfolio Overview: Omega Geographic Diversification as of December 31, 2019
25
Contractual Rent/Interest Concentration by Location
Florida, 14.9%
Texas, 8.9%
Indiana, 7.5%
Michigan, 7.1%
Pennsylvania, 6.2%
California, 6.1%Ohio, 5.5%
United Kingdom, 4.1%
North Carolina, 3.9%
Tennessee, 3.1%
Remaining States, 32.9%
($ in thousands) 4Q 2019 Annualized Contractual
Rent/Interest (1)(2)
State Total ($000's) % of Total Operators (1) Properties (2) Occ. % (3)(4)
1 Florida 139,223 14.9% 10 129 88.2%
2 Texas 83,248 8.9% 16 124 71.4%
3 Indiana 69,775 7.5% 7 69 81.4%
4 Michigan 66,368 7.1% 3 48 87.5%
5 Pennsylvania 57,934 6.2% 7 54 87.6%
6 California 56,609 6.1% 10 59 92.5%
7 Ohio 51,799 5.5% 9 51 81.0%
8 United Kingdom 38,049 4.1% 2 55 90.7%
9 North Carolina 36,039 3.9% 5 41 86.1%
10 Tennessee 28,774 3.1% 6 35 71.2%
Remaining States 307,789 32.9% 298 81.6%
Total 935,608$ 100.0% 71 963 83.4%
1) Many operators operate in multiple states
2) Excludes one multi-tenant MOB and facilities which are non-operating, closed and/or not currently
providing patient services
3) As of September 30, 2019, TTM
4) Includes Core Portfolio only
Investor Presentation - February 2020
Ciena, $94.7MM
Consulate, $85.7MM
Genesis , $61.9MM
Communicare, $59.9MM
Maplewood , $56.2MM
Signature , $54.4MM
Saber , $48.1MMHHC , $36.7MM
Guardian , $35.5MM
Airamid, $28.MM
Remaining Operators, $374.6MM
Portfolio Overview: Omega Operator Diversification as of December 31, 2019
Contractual Rent/Interest Concentration by Operator
($ in thousands) 4Q 2019 Annualized Contractual
Rent/Interest (1)(2)
Operator Total ($000's) % of Total Properties (1)(3)
1 Ciena 94,698$ 10.1% 69
2 Consulate 85,678 9.2% 82
3 Genesis 61,895 6.6% 56
4 Communicare 59,937 6.4% 42
5 Maplewood 56,185 6.0% 15
6 Signature 54,378 5.8% 58
7 Saber 48,098 5.1% 48
8 HHC 36,658 3.9% 44
9 Guardian 35,506 3.8% 35
10 Airamid 28,007 3.0% 33
Remaining Operators 374,568 40.1% 481
935,608$ 100.0% 963
1)
2)
3)
Excludes facilities which are non-operating, closed and/or not currently providing patient services
Includes mezzanine and term loan interest
Excludes one multi-tenant medical office building
Investor Presentation - February 2020
Portfolio Overview: Capital Investment Summary as of December 31, 2019
27
Commitment
Year Location
# of
Projects
Property
Type
Initial
Cash
Yield (1)Beds /
Units
Investment
Commitment
Inception to Date
Funding (2)Remaining
Commitment
Estimated In
Service Date
Estimated
Additional
Quarterly
Rent (3)
2014 Middleburg, FL 1 SNF 9.00% 120 20,429,290$ 17,380,707$ 3,048,583$ Q1 2020 391,066$
2015 2nd Avenue, NY (4)1 ALF / MC 8.00% 214 287,711,161 286,422,821 1,288,340 Q1 2020 5,012,399
2017 Eastland, TX 1 SNF 9.25% 72 6,000,000 824,756 5,175,244 Q4 2020 19,072
2018 Thibodaux, LA 1 SNF 7.00% 110 21,000,000 6,234,903 14,765,097 Q4 2020 109,111
2019 Canton, OH 1 SH 9.00% 72 20,500,000 11,239,591 9,260,409 Q1 2020 252,891
2019 Plainsboro, NJ 1 ALF 8.00% 105 47,811,031 10,728,222 37,082,809 Q2 2021 187,744
Leased Facilities 6 693 403,451,482$ 332,831,000$ 70,620,482$ 5,972,283$
2019 West Columbus, OH 1 SNF 8.50% 97 14,000,000 3,248,593 10,751,407 Q3 2020
Mortgages (5) 1 97 14,000,000$ 3,248,593$ 10,751,407$
Additional CapEx (excluding New Builds) (5) 140 272,909,522 184,367,623 88,541,899
Total: 147 790 690,361,004$ 520,447,216$ 169,913,788$
1) Cash yield for 2nd Avenue and Plainsboro is 7.0% in year 1, 8.0% in year 2, and 2.5% escalators for the remainder of the lease
2) Includes land and finance costs
3) Inception to Date Funding multiplied by Initial Cash Yield
4) Inception to date funding includes two adjacent parcels of land totaling approximately $12 million
5) Current quarter revenue already reflects fundings to date
Investor Presentation - February 2020
Period Trailing Twelve Months (TTM) Period Trailing Twelve Months (TTM) Period Trailing Twelve Months (TTM)
Ending EBITDARM EBITDAR Ending EBITDARM EBITDAR Ending EBITDARM EBITDAR03/31/07 2.1 1.7 03/31/12 2.1 1.7 03/31/17 1.69 1.3306/30/07 2.2 1.7 06/30/12 2.0 1.6 06/30/17 1.71 1.3409/30/07 2.2 1.8 09/30/12 2.0 1.5 09/30/17 1.72 1.3512/31/07 2.2 1.8 12/31/12 2.0 1.5 12/31/17 1.71 1.3403/31/08 2.2 1.8 03/31/13 2.0 1.5 03/31/18 1.69 1.3306/30/08 2.1 1.7 06/30/13 1.9 1.5 06/30/18 1.70 1.3409/30/08 2.1 1.7 09/30/13 1.9 1.5 09/30/18 1.67 1.3212/31/08 2.0 1.6 12/31/13 1.9 1.4 12/31/18 1.67 1.323/31/09 2.0 1.6 3/31/14 1.8 1.4 03/31/19 1.67 1.316/30/09 2.0 1.6 6/30/14 1.8 1.4 06/30/19 1.66 1.309/30/09 2.0 1.6 9/30/14 1.8 1.4 09/30/19 1.66 1.30
12/31/09 2.0 1.6 12/31/14 1.8 1.403/31/10 2.0 1.6 03/31/15 1.78 1.3806/30/10 2.0 1.6 06/30/15 1.80 1.4109/30/10 2.1 1.6 09/30/15 1.79 1.4012/31/10 2.1 1.7 12/31/15 1.78 1.403/31/11 2.2 1.8 3/31/16 1.75 1.376/30/11 2.3 1.8 6/30/16 1.72 1.349/30/11 2.3 1.8 9/30/16 1.68 1.31
12/31/11 2.2 1.8 12/31/16 1.69 1.33
1.0
1.3
1.5
1.8
2.0
2.3
2.5
TTM EBITDARM & EBITDAR Coverage3/31/2002 to 9/30/2019, Quarterly
Exhibit F: Operator Coverage Trend
28
EBITDAR Coverage
EBITDARM Coverage
RUG-IV start(10/1/2010) →
RUG-IV adjustment (10/1/2011)
Investor Presentation - February 2020
Portfolio Overview: Minimal Near-Term Expirations as of December 31, 2019
Minimal Near-Term Expirations
• Approximately 90% of portfolio expirations occur after 2023
• Combined TTM EBITDAR coverage of lease and mortgages expiring through 2024 is 1.03x (1)
Note: Expiration percentages based on 4Q 2019 contractual rents and interest, annualized
1) Operator coverage, TTM September 30, 20192) Excludes one multi-tenant medical office building
Percentage of Portfolio Lease and Mortgage Expirations by Year (2)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Thereafter
0.2% 1.1%4.0%
0.8%4.1%
2.0% 1.4%
15.0%
17.8%
13.7%
39.9%
Financial Overview
Investor Presentation - February 2020
Financial Overview: Consistent Financial Policy
31
4Q 2019 (unless otherwise noted)
➢ Conservative capitalization
▪ Debt to adjusted proforma EBITDA ratio: 5.19x (see 4Q 2019 Financial Supplement (1) )
➢ Significant liquidity
▪ $1.25B revolving credit facility: ~$1.05 billion of availability (at 2/24/2020)
▪ Well-laddered debt maturities: No material maturities until 2022 (assuming allowable credit facility extensions)
➢ Financial flexibility
▪ Capital markets access
▪ Minimize encumbered assets 6.2% of Total Assets are encumbered
▪ Funded Debt to Total Asset Value: 50% (determined pursuant to bond covenants)
▪ Adjusted Fixed Charge Ratio >3.5x: 4.00x (see 4Q 2019 Financial Supplement (1) )
➢ Dividend payout ratios (2)
▪ AFFO Payout Ratio: 85.6%
▪ FAD Payout Ratio: 93.3%
▪ 17 consecutive yearly dividend increases: $0.67 as of 1Q 2020 ($2.68 annualized)
1) Quarterly Financial Supplements are located in the Investor Relations tab at www.omegahealthcare.com2) Historically, the Company has maintained AFFO and FAD payout ratios of less then 85% and 90%, respectively. See page 12 of Omega’s 4Q 2019 Financial Supplement.
Investor Presentation - February 2020
Financial Overview: Long-Term Growth Strategy
32
➢ Pursue selective acquisitions
➢ Leverage existing 71 operator relationships
➢ Invest primarily in current core markets
➢ Maintain focus on senior care facilities
➢ Use credit facility to make acquisitions and replenish availability with long term debt and equity issuances
Investor Presentation - February 2020
Totals
10,052,265
854,834
482,380
394,018
524,817
12,308,315
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Acquisitions 114,287 245,550 196,000 39,500 112,135 269,393 588,718 187,696 468,153 561,190 131,689 4,313,953 972,190 364,246 104,855 1,382,710
Mortgages 6,500 61,750 - 345 70,000 3,509 20,656 130,041 11,969 3,379 412,307 47,696 31,482 11,000 44,200 -
Capex 5,536 3,821 6,805 6,187 14,683 18,609 28,403 18,896 29,436 56,289 21,514 52,295 41,033 59,424 52,985 66,464
CIP (2) - - - - - - - - - - - - 62,197 78,432 127,945 125,444
Other (3) - - - - - - - 28,000 - - - - 221,367 16,625 141,315 117,510
Total 126,323 311,121 202,805 46,032 196,818 291,511 637,777 364,633 509,558 620,858 565,510 4,413,944 1,328,269 529,727 471,300 1,692,128
-
200
400
600
800
1,000
1,200
1,400
1,600
Tho
usa
nd
s
Other (3) CIP (2) Capex Mortgages Acquisitions
Financial Overview: Investment History
33
Investments - 2004 through December 31, 2019
$11.1 billion of new investments since January 2010 (1)
1) Includes the $3.9 billion Aviv acquisition via merger on April 1, 2015; and the $623 million MRT acquisition via merger on May 17, 20192) Included in “Acquisitions” prior to 20163) Consists primarily of mezzanine and JV investments
For graphing purposes bar does not reflect
total investments for 2015
Investor Presentation - February 2020
$179$251
$292$350
$419$505
$744
$901 $908 $882$929
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
$1.80$2.50 $2.83
$3.33$3.92
$4.47
$8.11$9.17 $9.09 $9.13
$10.40
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Financial Overview: Attractive Growth Profile
34
Core Operations Revenue (1)Gross Investments
($ in billions) ($ in millions)
$9.6B as of 3Q:19 $682M YTD through 3Q:19
1) See our 4Q 2019 Financial Supplement posted on our website, www.omegahealthcare.com
Investor Presentation - February 2020
$123 $156$193
$236$299
$363
$564
$689 $683$638
$681
$0
$100
$200
$300
$400
$500
$600
$700
$800
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
$170$236 $279
$334$402
$487
$716
$870 $882 $843$893
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Financial Overview: Attractive Growth Profile
35
Adjusted Funds from Operations (2)Adjusted EBITDA (1)
1) Reflects adjustments for nursing home revenues and expenses, nonrecurring items, restricted stock amortization, provisions for impairment, provisions for uncollectible accounts, and adjustments to fair value (see Exhibit I “Adjusted EBITDA Reconciliation”)
2) See the Funds from Operations walk-down in our 4Q 2019 Earnings Release and Supplement
($ in millions) ($ in millions)
$658M YTD through 3Q:19 $503M YTD through 3Q:19
Investor Presentation - February 2020
Financial Overview: Conservative Capitalization
36
1) Adjusted annualized proforma EBITDA includes revenue for all new investments as if they occurred January 1 of their respective year. Debt amounts exclude the fair value adjustments on HUD debt and the net premium or discount on the unsecured notes (See “Selected Credit Statistics” in our 4Q 2019 Financial Supplement posted on our website, www.omegahealthcare.com)
2) See Leverage Reconciliation in Exhibit 1 to this presentation
3) Reflects adjusted EBITDA divided by the sum of cash interest and preferred dividends, if any (See Exhibit I: Non-GAAP Financial Reconciliation: Adjusted EBITDA Reconciliation for calculation )
Leverage (1)(2) Fixed Charge Coverage (3)
Target Funded Debt to Adjusted EBITDA Ratio of 4.0x – 5.0x
• Typically have used drawings under the revolver to make acquisitions and replenished revolver availability with long term debt and equity issuances
5.07x for 3Q:19 Annualized4.1x for 3Q:19
4.3x
4.8x 4.7x4.4x
4.6x 4.5x4.7x
4.9x5.2x 5.1x
0.7x0.9x 0.9x
0.6x 0.5x0.3x
0.1x 0.1x 0.0x0.4x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Total Debt / Adj. EBITDA Secured Debt / Adj. EBITDA
3.1x3.3x
3.5x
4.0x 4.1x
4.7x
5.1x
4.5x
4.1x 4.2x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Investor Presentation - February 2020
$250M
$700M4.375%Notes $400M
4.95%Notes
$400M4.50%Notes
$600M5.25%Notes
$700M4.50%Notes
$550M4.75%Notes
$500M3.625%Notes $387M
$23M
$129M
$75M
$350M
$207M
$1,043M
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
$1,300
$1,400
$1,500
$1,600
$1,700
$1,800
$1,900
$2,000
$2,100
$2,200
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2046+
$ M
illi
on
s
• $1.8B unsecured revolving credit and term loan facilities
➢ $1.25B revolver with a May 2021 maturity, and an additional one-year option
✓ $1.04B available at 2/24/2020
➢ $554MM unsecured term loans
✓ $75MM fixed at 3.29%
• $250MM unsecured term loan
➢ Fixed at 3.8%
• No near-term bond maturities
• Minimal secured debt (~$387MM)
• 87% of debt is fixed rate at 2/24/2020
Financial Overview: Conservative Capitalization
37
Debt Maturity Schedule at 2/24/2020
$1.25BRevolving
Credit Facility:$267M
drawn at11/1/2019
CreditFacility
Term Loans
(1)
1) Represents the £100 million term loan at the spot exchange rate of approximately $1.29 at 2/24/20202) Represents current HUD debt balance assumed via acquisition of the Encore portfolio on 10/31/2019
(2)
Investor Presentation - February 2020
Financial Covenant Review
• Strong balance sheet with significant cushion on all covenants
• Leverage ratios are key covenants
➢ Defined as “Funded Debt to TotalAsset Value” and “Unsecured Debt to Total Asset Value”, both not to exceed 60%, were 51% and 54%, respectively, at 4Q 2019
• Debt to Adjusted proforma EBITDA is 5.19x for 4Q 2019 (2)
• Minimal secured debt (~$389MM)
Financial Overview: Conservative Capitalization
38
Key Bond Covenants (1)
Key Credit Facility Covenants (1)
1) Covenants are based on calculations as defined in the Company’s Credit Agreement2) See page 19 in our 4Q 2019 Financial Supplement posted on our website, www.omegahealthcare.com for detail
(1) Covenants are based on calculations as defined in the Company’s Senior Note Indentures
Quarter Ending
Debt / Adj.
Total Assets
Unencumbered
Assets /
Unsecured Debt
Secured Debt /
Adj. Total Assets
Requirement <= 60% >= 150% <= 40%
March 31, 2019 49% 203% 0%June 30, 2019 49% 203% 0%September 30, 2019 49% 206% 0%December 31, 2019 50% 200% 4%
Status Pass Pass Pass
Consolidated
Quarter Ending
Leverage
Ratio
Unsecured
Leverage
Ratio
Fixed
Charge Cov.
Ratio
Unsecured
Interest Cov.
Ratio
Current
Tangible
Net Worth
Requirement <= 60% <= 60% >=1.50 to 1 >=2.00 to 1 >$3,640MM
March 31, 2019 50% 53% 4.3 3.7 Pass
June 30, 2019 49% 52% 4.4 3.9 Pass
September 30, 2019 50% 54% 4.4 3.9 Pass
December 31, 2019 51% 54% 4.4 3.9 Pass
Status Pass Pass Pass Pass Pass
Investor Presentation - February 2020
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Senior Notes 260,000 225,000 - - - - 775,000 - 400,000 - 650,000 1,300,000 700,000 700,000 - 500,000
Preferred Equity 118,488 - - - - - - - - - - - - - - -
Common Equity 74,909 68,019 33,171 138,359 230,574 102,120 221,474 91,363 191,690 338,847 134,954 609,721 260,433 59,796 124,518 529,614
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
Financial Overview: Financial Flexibility
Capital Markets Accessibility
• Seasoned market issuer
• Investment grade senior unsecured notes rated BBB- by S&P and Fitch; Baa3 by Moody’s
Note: Common Equity includes shares issued under Omega’s DRIP/DSPP and Omega’s ATM/ESP; 2015 Common Equity excludes 52.9MM combined shares and units issued for Aviv on April 1, 2015 (~$3.9B) and excludes 7.5MM shares to acquire MedEquities Reatly Trust.
Totals
5,510,000
118,488
3,209,563
8,838,050
Investor Presentation - February 2020
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
AFF
O P
ayo
ut
Rat
io
Tota
l Yea
rly
Div
iden
d (
$)
Yearly Dividends and AFFO Payout Ratio2003 through 2019 (1)
Dividends Paid AFFO Payout Ratio
Financial Overview: Dividend History
40
79.4% (2)
1) As per page 12 in our 4Q 2019 Financial Supplement2) Reflects the unweighted AFFO Payout average from 2003 through 2019
Historically Strong Dividend Growth with Conservative AFFO Payout Ratios
• 17 consecutive yearly increases
• Increased dividend and AFFO during the 2007-9 financial crisis
• Confident in the sustainability of the current quarterly dividend rate of $0.67 per share
Exhibits
Investor Presentation - February 2020
Exhibit I: Non-GAAP Financial Reconciliation: Adjusted EBITDA Reconciliation
42
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Net Income.......................................................................................................................... $ 78,137 $ 82,111 $ 58,436 $ 52,606 $ 120,698 $ 172,521 $ 221,349 $ 233,315 $ 383,367 $ 104,910 $ 293,884 $ 351,947
Depreciation and amortization......................................................................................... 39,890 44,694 84,623 100,337 112,983 128,646 123,257 210,703 267,062 287,591 281,279 301,683
Depreciation and amortization unconsolidated joint ventures.......................................... - - - - - - - - 1,107 6,630 5,876 6,513
Interest expense - net & refinancing costs......................................................................... 39,746 39,075 90,602 86,899 106,096 92,048 126,869 183,208 175,561 219,976 201,269 208,269
Provision for income taxes................................................................................................ (72) - - - - - - 1,211 1,405 3,248 3,010 2,844
EBITDA.......................................................................................................................... 157,701 165,880 233,661 239,842 339,777 393,215 471,475 628,437 828,502 622,355 785,318 871,256
Nursing home revenues.................................................................................................... (24,170) (18,430) (7,336) - - - - - - - - -
Nursing home expenses.................................................................................................... 27,601 20,632 7,998 653 - - - - - - - -
Litigation/contractual settlement...................................................................................... (526) (4,527) (1,111) - - - - - - (10,412) - -
Acquisition and merger related costs................................................................................ - 1,561 1,554 1,204 909 245 3,948 57,525 9,582 (22) 383 5,115
(Gain) loss on assets sold - net.......................................................................................... (12,292) (753) 4 (1,670) (11,799) 1,151 (2,863) (6,353) (50,208) (53,912) (24,774) (55,696)
(Gain) loss on assets sold - unconsolidated joint ventures................................................. - - - - - - - - - - 670 (9,345)
One-time termination payment........................................................................................ - - - - - - - - - - - 1,118
Interest refinancing expense - unconsolidated joint ventures............................................ - - - - - - - - - - - 2,014
One-time straightline revenue write-off............................................................................ - - - - - - - - - - - -
Restructuring costs........................................................................................................... - - - - - - - - - - - 1,683
One-time revenue............................................................................................................. (702) - - - (536) (1,405) - - - (2,394) (1,110) (2,409)
Unrealized (gain) loss on warrents................................................................................... - - - - - - - - - - (160) (410)
(Deduct gain) add back loss foreign currency.................................................................... - - - - - - - - - (311) (32) 42
One-time non-cash deferred mortgage interest income.................................................... - - - - (236) - (585) - - - - -
One-time buy-out of purchase option............................................................................... - - - - - - - - - - 2,000 -
FIN 46R adjustment.......................................................................................................... (90) - - - - - - - - - - -
Settlement of prior operator's past due obligation............................................................ (650) - - - - - - - - - - -
Gain on Sale of CSFB Mortgage Certificates....................................................................... - - (789) - - - - - - - - -
Provisions for real estate impairment............................................................................... 5,584 159 155 26,344 272 415 3,660 17,681 58,726 99,070 29,839 45,264
Provisions for real estate impairment of unconsolidated joint ventures............................ - - - - - - - - - - 608 -
Impairment on direct financing leases.............................................................................. - - - - - - - - - 198,199 27,168 7,917
Provisions for uncollectible mortgages, notes and A/R...................................................... 4,248 3,935 - 6,439 - 2,141 2,723 7,871 9,845 14,580 6,689 11,120
Restricted Stock amortization expense............................................................................. 2,103 1,918 2,211 6,037 5,942 5,942 8,592 11,133 13,790 15,212 15,987 14,871 Adjusted EBITDA........................................................................................................... 158,807$ 170,375$ 236,347$ 278,849$ 334,329$ 401,704$ 486,950$ 716,294$ 870,237$ 882,365$ 842,586$ 892,540$
Proforma acquisition income............................................................................................ 15,360 30,315 32,807 37,153 45,420 55,696 22,194 70,727 47,335 24,702 21,266 96,614
Proforma CIP income........................................................................................................ - - - - - - - - - 14,568 19,379 22,463
Incremental proforma depreciation from unconsolidated joint ventures........................... - - - - - - - - - - - 1,836
Incremental revenue from Orianna transitioned assets..................................................... - - - - - - - - - 8,000 3,032 -
Incremental revenue from Daybreak................................................................................. - - - - - - - - - 7,146 2,909 -
Proforma revenue from asset divestitures........................................................................ - - - - - - - - - (5,052) (6,716) (3,921)
Adjusted Proforma EBITDA (1)..................................................................................... 174,167$ 200,690$ 269,154$ 316,002$ 379,749$ 457,400$ 509,144$ 787,021$ 917,572$ 931,729$ 882,456$ 1,009,532$
Cash Interest (2)............................................................................................................... 37,745$ 36,077$ 67,282$ 81,643$ 95,822$ 100,459$ 119,153$ 150,915$ 170,516$ 196,486$ 203,537$ 212,706$
Preferred Dividends.......................................................................................................... 9,714 9,086 9,086 1,691 - - - - - - - -
Total Fixed Charges...................................................................................................... 47,459$ 45,163$ 76,368$ 83,334$ 95,822$ 100,459$ 119,153$ 150,915$ 170,516$ 196,486$ 203,537$ 212,706$
Adjusted EBITDA / Cash Fixed Charge coverage ratio...................................................... 3.3 x 3.8 x 3.1 x 3.3 x 3.5 x 4.0 x 4.1 x 4.7 x 5.1 x 4.5 x 4.1 x 4.2 x
Adjusted Proforma EBITDA / Cash Fixed Charge coverage ratio...................................... 3.7 x 4.4 x 3.5 x 3.8 x 4.0 x 4.6 x 4.3 x 5.2 x 5.4 x 4.7 x 4.3 x 4.7 x
(1) Adjusted Proforma EBITDA assumes all new investments in each respective year had closed on January 1 of that respective year.
(2) Excludes interest refinance costs such as early extingishment premiums, amortization of deferred financing costs, HUD FMV and Amort of MIP.
Twelve Year Ended December 31,
Investor Presentation - February 2020
Exhibit I: Non-GAAP Financial Reconciliation (cont’d): Leverage Reconciliation
43
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Funded Debt
Revolving Line of Credit - secured............................................................. 63,500$ 94,100$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Revolving Line of Credit - unsecured......................................................... - - - 272,500 158,000 326,000 85,000 230,000 190,000 290,000 313,000 125,000
Term Loan - secured................................................................................. - 100,000 - - - - - - - - - 2,275
2012 Term Loan - unsecured.................................................................... - - - - 100,000 200,000 - - - - - -
2014 Term Loan - unsecured Trache 1...................................................... - - - - - - 200,000 200,000 200,000 - - -
2015 Term Loan - unsecured Trache 2...................................................... - - - - - - - 200,000 200,000 - - -
2016 Term Loan - unsecured Trache 3...................................................... - - - - - - - - 350,000 - - -
$425M 2017 Term Loan........................................................................... - - - - - - - - - 425,000 425,000 350,000
$100M GDP Term Loan............................................................................ - - - - - - - - - 135,130 127,990 132,480
2015 OP Term Loan - unsecured............................................................... - - - - - - - 100,000 100,000 100,000 100,000 75,000
2015 7 Yr Term Loan - unsecured............................................................. - - - - - - - 250,000 250,000 250,000 250,000 250,000
HUD Debt - secured (1)............................................................................. - - 180,890 279,558 335,711 280,425 237,881 56,204 54,955 53,666 - 389,680
GEMSA - secured...................................................................................... - - - - - - - 180,000 - - - -
Other Borrowings - secured...................................................................... - 59,354 - - - - - - - - - -
Industrial Revenue Bonds - unsecured...................................................... - - - - - - - - - - - -
Subordinated Debt - unsecured (2)(4)....................................................... - - 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 13,541
Notes - unsecured (3)............................................................................... 485,000 485,000 950,000 950,000 1,175,000 1,175,000 1,825,000 2,350,000 3,053,000 3,351,500 3,350,000 3,850,000
Total Funded Debt................................................................................ 548,500$ 738,454$ 1,150,890$ 1,522,058$ 1,788,711$ 2,001,425$ 2,367,881$ 3,586,204$ 4,417,955$ 4,625,296$ 4,585,990$ 5,187,976$
Less: Cash on-hand................................................................................... (209) (2,170) (6,921) (351) (1,711) (2,616) (4,489) (5,424) (93,687) (85,937) (10,300) (24,117)
Adjusted Net Funded Debt................................................................... 548,291$ 736,284$ 1,143,969$ 1,521,707$ 1,787,000$ 1,998,809$ 2,363,392$ 3,580,780$ 4,324,268$ 4,539,359$ 4,575,690$ 5,163,859$
Secured Funded Debt (1).......................................................................... 63,500 253,454 180,890 279,558 335,711 280,425 237,881 236,204 54,955 53,666 - 391,955
Unsecured Funded Debt (2)(3).................................................................. 485,000 485,000 970,000 1,242,500 1,453,000 1,721,000 2,130,000 3,350,000 4,363,000 4,571,630 4,585,990 4,796,021
Less: Cash on-hand (209) (2,170) (6,921) (351) (1,711) (2,616) (4,489) (5,424) (93,687) (85,937) (10,300) (24,117)
Adjusted Net Funded Debt................................................................... 548,291$ 736,284$ 1,143,969$ 1,521,707$ 1,787,000$ 1,998,809$ 2,363,392$ 3,580,780$ 4,324,268$ 4,539,359$ 4,575,690$ 5,163,859$
Net Debt/Adjusted Proforma Annualized EBITDA (2).............................. 3.1x 3.7x 4.3x 4.8x 4.7x 4.4x 4.6x 4.5x 4.7x 4.9x 5.2x 5.1x
Secured Funded Debt/Adjusted Proforma Annualized EBITDA (2).......... 0.4x 1.3x 0.7x 0.9x 0.9x 0.6x 0.5x 0.3x 0.1x 0.1x 0.0x 0.4x
Notes:
All debt shown above excludes deferred financing related costs.
1) HUD debt for December 31, 2014, 2013, 2012 and 2011 excludes 13.6 million, $18.1 million, $30.8 million and $24.1 million of adjustments related to the acquisition date fair value premium, respectively.
2) Subordinated debt for December 31, 2018, 2017, 2016, 2015, 2014, 2013, 2012 and 2011 excludes $0.3 million, $0.4 million, $0.5 million, $ 0.6 million, $0.7 million, $0.9 million, $1.0 million and $1.2 million of adjustments related to
the acquisition date fair value premium, respectively.
3) The 2016 and 2017 unsecured note balance includes $3.0 million and $1.5 million, respectively of notes payable to a seller related to the purchase price consideration.
4) Subordinated debt for December 31, 2019 and 2018, excludes $0.2 million, $0.3 million of adjustments related to the acquisition date fair value premium, respectively.
Year Ended December 31, Twelve
Investor Presentation - February 2020
Exhibit 2: Growth of Per Share AFFO, FAD and Dividends (10 Years)
44
2020 Guidance
AFFO: $3.12 - $3.20
Quarterly Annually
Quarter Ended
Ending
Share
Price
Div. *
Yield
AFFO/
Share Dividend
Payout
Ratio
FAD/
Share
FAD
Payout
Ratio
Omega AFFO
Guidance (1)AFFO/
Share
%
Change
FAD/
Share
%
Change
Annual
Dividend
%
Change
2009 3/31/2009 $14.08 8.5% 0.3701$ 0.30$ 81.1% 0.3550$ 84.5% $1.47 - $1.50
6/30/2009 $15.52 7.7% 0.3714$ 0.30 80.8% 0.3569$ 84.1%
9/30/2009 $16.02 7.5% 0.3657$ 0.30 82.0% 0.3529$ 85.0%
12/31/2009 $19.45 6.2% 0.3604$ 0.32 88.8% 0.3401$ 94.1% $1.47 0.9% $1.40 2.1% $1.22 1.7%
2010 3/31/2010 $19.49 6.6% 0.3766$ 0.32$ 85.0% 0.3704$ 86.4% $1.60 - $1.68
6/30/2010 $19.93 6.4% 0.3652$ 0.36 98.6% 0.3957$ 91.0%
9/30/2010 $22.45 6.4% 0.4531$ 0.37 81.7% 0.4218$ 87.7%
12/31/2010 $22.44 6.6% 0.4566$ 0.37 81.0% 0.4074$ 90.8% $1.65 12.5% $1.60 13.6% $1.42 16.4%
2011 3/31/2011 $22.34 6.6% 0.4432$ 0.38$ 85.7% 0.4009$ 94.8% $1.80 - $1.86
6/30/2011 $21.01 7.2% 0.4748$ 0.40 84.2% 0.4345$ 92.1%
9/30/2011 $15.93 10.0% 0.4769$ 0.40 83.9% 0.4392$ 91.1%
12/31/2011 $19.35 8.3% 0.4963$ 0.41 82.6% 0.4623$ 88.7% $1.89 14.5% $1.74 8.9% $1.59 12.0%
2012 3/31/2012 $21.26 7.7% 0.5469$ 0.42$ 76.8% 0.4738$ 88.6% $2.06 - $2.12
6/30/2012 $22.50 7.5% 0.5252$ 0.42 80.0% 0.4535$ 92.6%
9/30/2012 $22.73 7.4% 0.5353$ 0.44 82.2% 0.4702$ 93.6%
12/31/2012 $23.85 7.4% 0.5776$ 0.45 77.9% 0.5236$ 85.9% $2.18 15.3% $1.92 10.6% $1.73 8.8%
2013 3/31/2013 $30.36 5.9% 0.6313$ 0.46$ 72.9% 0.5739$ 80.2% $2.45 - $2.50
6/30/2013 $31.02 5.9% 0.6227$ 0.47 75.5% 0.5614$ 83.7%
9/30/2013 $29.87 6.3% 0.6260$ 0.48 76.7% 0.5682$ 84.5%
12/31/2013 $29.80 6.4% 0.6471$ 0.49 75.7% 0.5861$ 83.6% $2.53 15.9% $2.29 19.2% $1.90 9.8%
2014 3/31/2014 $33.52 5.8% 0.7112$ 0.50$ 70.3% 0.6506$ 76.9% $2.69 - $2.72
6/30/2014 $36.86 5.4% 0.6859$ 0.51 74.4% 0.6257$ 81.5%
9/30/2014 $34.19 6.0% 0.7320$ 0.52 71.0% 0.6690$ 77.7%
12/31/2014 $39.07 5.3% 0.7232$ 0.53 73.3% 0.6621$ 80.0% $2.85 12.9% $2.61 13.9% $2.06 8.4%
2015 3/31/2015 $40.57 5.2% 0.7084$ 0.54$ 76.2% 0.6492$ 83.2% $2.98 - $3.04
6/30/2015 $34.33 6.3% 0.7696$ 0.55 71.5% 0.7000$ 78.6%
9/30/2015 $35.15 6.3% 0.7913$ 0.56 70.8% 0.7168$ 78.1%
12/31/2015 $34.98 6.4% 0.8067$ 0.57 70.7% 0.7237$ 78.8% $3.08 7.8% $2.79 7.0% $2.22 7.8%
2016 3/31/2016 $35.30 6.5% 0.8336$ 0.58$ 69.6% 0.7488$ 77.5% $3.25 - $3.30
6/30/2016 $33.95 6.8% 0.8684$ 0.60 69.1% 0.7731$ 77.6%
9/30/2016 $35.45 6.8% 0.8327$ 0.61 73.3% 0.7477$ 81.6%
12/31/2016 $31.26 7.8% 0.8803$ 0.62 70.4% 0.7965$ 77.8% $3.42 11.0% $3.07 9.9% $2.41 8.6%
2017 3/31/2017 $32.99 7.5% 0.8569$ 0.63$ 73.5% 0.7730$ 81.5% $3.40 - $3.44
6/30/2017 $33.02 7.6% 0.8661$ 0.64 73.9% 0.7838$ 81.7%
9/30/2017 $31.91 8.0% 0.7918$ 0.65 82.1% 0.7285$ 89.2%
12/31/2017 $27.54 9.4% 0.7882$ 0.66 83.7% 0.7178$ 91.9% $3.30 -3.3% $3.00 -2.1% $2.58 7.1%
2018 3/31/2018 $27.04 9.8% 0.7760$ 0.66$ 85.1% 0.6920$ 95.4% $2.96 - $3.06
6/30/2018 $31.00 8.5% 0.7633$ 0.66 86.5% 0.6730$ 98.1%
9/30/2018 $32.77 8.1% 0.7727$ 0.66 85.4% 0.6844$ 96.4%
12/31/2018 $35.15 7.5% 0.7323$ 0.66 90.1% 0.6517$ 101.3% $3.04 -7.8% $2.70 -10.1% $2.64 2.3%
2019 3/31/2019 $38.15 6.9% 0.7552$ 0.66$ 87.4% 0.6802$ 97.0% $3.00 - $3.12
6/30/2019 $36.75 7.2% 0.7676$ 0.66 86.0% 0.6831$ 96.6%
9/30/2019 $41.79 6.3% 0.7618$ 0.67 87.9% 0.6912$ 96.9%
12/31/2019 $42.35 6.3% 0.7823$ 0.67 85.6% 0.7180$ 93.3% $3.07 0.7% 2.7725$ 2.6% 2.66$ 0.8%
* Based on the annualized dividend announced the previous quarter
1) This was the guidance provided at the beginning of each fiscal year and does
not reflect mid-year guidance changes
Investor Presentation - February 2020
Exhibit 3: DRIP/DSPP and Equity Shelf Program (ESP) Activity
45
Dividend Reinvestment Optional/Initial Purchases/Waiver Total Purchases
Date Shares Avg. Price Net Proceeds Shares Avg. Price Net Proceeds Shares Avg. Price Net Proceeds
2009 54,888 15.345$ 842,261$ 1,636,690 16.170$ 26,465,921$ 1,691,578 16.144$ 27,308,181$
2010 47,110 19.812$ 933,356$ 2,913,613 20.458$ 59,605,405$ 2,960,723 20.447$ 60,538,761$
2011 687,944 18.432$ 12,680,187$ 2,164,804 21.521$ 46,588,707$ 2,852,748 20.776$ 59,268,894$
2012 799,082 21.885$ 17,487,618$ 4,262,944 22.157$ 94,453,583$ 5,062,026 22.114$ 111,941,200$
2013 801,917 30.649$ 24,577,834$ 1,128,490 27.731$ 31,294,119$ 1,930,407 28.943$ 55,871,953$
2014 466,354 34.436$ 16,059,177$ 1,617,145 34.284$ 55,442,759$ 2,083,499 34.318$ 71,501,936$
2015 722,187 35.496$ 25,634,519$ 3,461,644 36.178$ 125,236,640$ 4,183,831 36.061$ 150,871,159$
2016 1,438,336 30.890$ 44,429,942$ 5,776,939 33.861$ 195,611,433$ 7,215,275 33.268$ 240,041,375$
2017 1,094,555 30.563$ 33,453,095$ 104,052 31.415$ 3,268,773$ 1,198,607 30.637$ 36,721,869$
2018 1,092,995 30.229$ 33,040,342$ 455,772 30.191$ 13,760,342$ 1,548,767 30.218$ 46,800,684$
January-19 - -$ -$ 3,408 37.349$ 127,284$ 3,408 37.349$ 127,284$
February-19 881,518 36.185$ 31,897,905$ 3,155 36.551$ 115,317$ 884,673 36.187$ 32,013,223$
March-19 - -$ -$ 3,981 36.460$ 145,146$ 3,981 36.460$ 145,146$
April-19 - -$ -$ 3,595 36.813$ 132,344$ 3,595 36.813$ 132,344$
May-19 579,270 37.021$ 21,444,923$ 2,789 37.394$ 104,293$ 582,059 37.022$ 21,549,216$
June-19 - -$ -$ 3,641 37.279$ 135,734$ 3,641 37.279$ 135,734$
July-19 - -$ -$ 319,794 37.853$ 12,105,175$ 319,794 37.853$ 12,105,175$
August-19 670,902 37.856$ 25,397,733$ 2,913 38.238$ 111,389$ 673,815 37.858$ 25,509,122$
September-19 - -$ -$ 3,130 40.889$ 127,983$ 3,130 40.889$ 127,983$
October-19 - -$ -$ 3,173 43.393$ 137,685$ 3,173 43.393$ 137,685$
November-19 559,689 40.820$ 22,846,225$ 2,666 41.232$ 109,924$ 562,355 40.821$ 22,956,149$
December-19 - -$ -$ 2,732 41.015$ 112,053$ 2,732 41.015$ 112,053$
January-20 - -$ -$ 2,676 43.257$ 115,757$ 2,676 43.257$ 115,757$
Total DRIP / DSPP: 41,951,365 26.513$ 1,112,258,535$
Investor Presentation - February 2020
Exhibit 3: DRIP/DSPP and Equity Shelf Program (ESP) Activity (cont’d)
46
ATM/ESP Program ATM/ESP Program
Program
Settlement
Year / Month Total Shares
Average
Price (Net)
Gross
Proceeds
1) $100MM 2009 1,412,835 $17.16 24,250,810$
2010 3,786,565 $19.99 75,699,809
Program #1 Total 5,199,400 $19.22 99,950,620$
2) $140MM 2010 3,078,808 $21.67 66,712,751$
2011 1,419,149 $22.61 32,093,672
2012 758,719 $21.27 16,135,656
Program #2 Total 5,256,676 $21.87 114,942,079$
3) $245MM 2012 2,639,643 $24.10 63,613,501$
2013 983,766 $28.29 27,827,048
Program #3 Total 3,623,409 $25.24 91,440,548$
4) $250MM 2013 5,520,047 $30.87 170,392,847$
2014 1,848,170 $34.33 63,451,652
Program #4 Total 7,368,217 $31.74 233,844,499$
5) $500MM 2016 655,635 $31.10 20,392,064$
2017 717,853 $32.14 23,074,336
2018 2,276,364 $34.14 77,717,431
2019 3,133,109 $35.80 112,163,256
Program #5 Total 6,782,961 $34.40 233,347,086$
ATM/ESP Grand Totals 28,230,663 $27.40 773,524,833$