OMEGA HEALTHCARE INVESTORS INC [OHI] Filings

10-Q 1 ohi-20230930x10q.htm 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

OMEGA HEALTHCARE INVESTORS, INC.

(Exact name of registrant as specified in its charter)


Maryland	1-11316	38-3041398
(State or other jurisdiction of incorporation or organization)	(Commission file number)	(IRS Employer Identification No.)

303 International Circle, Suite 200, Hunt Valley, MD 21030

(Address of principal executive offices)

(410) 427-1700

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.10 par value	OHI	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.


Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).


Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ⌧	Accelerated filer ◻	Non-accelerated filer ◻	Smaller reporting company ☐	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐

No ☒

As of October 31, 2023, there were 244,993,589 shares of common stock outstanding.

Table of Contents

OMEGA HEALTHCARE INVESTORS, INC.

FORM 10-Q

September 30, 2023


TABLE OF CONTENTS
		Page No.
PART I	Financial Information

Item 1.	Financial Statements of Omega Healthcare Investors, Inc. (Unaudited):
	Consolidated Balance Sheets	2
	September 30, 2023 and December 31, 2022
	Consolidated Statements of Operations	3
	Three and nine months ended September 30, 2023 and 2022
	Consolidated Statements of Comprehensive Income	4
	Three and nine months ended September 30, 2023 and 2022
	Consolidated Statements of Equity	5
	Three and nine months ended September 30, 2023 and 2022
	Consolidated Statements of Cash Flows	7
	Nine months ended September 30, 2023 and 2022
	Notes to Consolidated Financial Statements	8
	September 30, 2023

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	39

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59

Item 4.	Controls and Procedures	59

PART II	Other Information

Item 1.	Legal Proceedings	59

Item 1A.	Risk Factors	59

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	60

Item 6.	Exhibits	61

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1 - Financial Statements

OMEGA HEALTHCARE INVESTORS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)


	September 30,		December 31,
	2023		2022
	(Unaudited)
ASSETS
Real estate assets
Buildings and improvements	$	7,119,240	$	7,347,853
Land		901,282		923,605
Furniture and equipment		471,164		499,902
Construction in progress		120,243		88,904
Total real estate assets		8,611,929		8,860,264
Less accumulated depreciation		(2,419,324)		(2,322,773)
Real estate assets – net		6,192,605		6,537,491
Investments in direct financing leases – net		8,984		8,503
Real estate loans receivable – net		1,121,460		1,042,731
Investments in unconsolidated joint ventures		187,541		178,920
Assets held for sale		67,530		9,456
Total real estate investments		7,578,120		7,777,101
Non-real estate loans receivable – net		245,001		225,281
Total investments		7,823,121		8,002,382

Cash and cash equivalents		554,705		297,103
Restricted cash		3,212		3,541
Contractual receivables – net		9,511		8,228
Other receivables and lease inducements		199,530		177,798
Goodwill		643,335		643,151
Other assets		191,899		272,960
Total assets	$	9,425,313	$	9,405,163

LIABILITIES AND EQUITY
Revolving credit facility	$	19,530	$	19,246
Secured borrowings		289,615		366,596
Senior notes and other unsecured borrowings – net		4,982,127		4,900,992
Accrued expenses and other liabilities		276,711		315,047
Total liabilities		5,567,983		5,601,881

Preferred stock $1.00 par value authorized – 20,000 shares, issued and outstanding – none		—		—
Common stock $0.10 par value authorized – 350,000 shares, issued and outstanding – 244,989 shares as of September 30, 2023 and 234,252 shares as of December 31, 2022		24,498		23,425
Additional paid-in capital		6,657,211		6,314,203
Cumulative net earnings		3,625,580		3,438,401
Cumulative dividends paid		(6,666,439)		(6,186,986)
Accumulated other comprehensive income		28,143		20,325
Total stockholders’ equity		3,668,993		3,609,368
Noncontrolling interest		188,337		193,914
Total equity		3,857,330		3,803,282
Total liabilities and equity	$	9,425,313	$	9,405,163

See notes to consolidated financial statements.

Table of Contents

OMEGA HEALTHCARE INVESTORS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(in thousands, except per share amounts)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Revenues
Rental income	$	209,948	$	207,588	$	618,126	$	635,899
Income from direct financing leases		254		256		762		768
Interest income		30,623		31,344		88,275		93,861
Miscellaneous income		1,207		242		3,258		2,866
Total revenues		242,032		239,430		710,421		733,394

Expenses
Depreciation and amortization		80,798		82,709		244,008		248,668
General and administrative		20,287		18,242		62,971		53,402
Real estate taxes		3,892		4,175		11,814		11,495
Acquisition, merger and transition related costs		121		185		1,183		5,658
Impairment on real estate properties		27,890		10,015		87,992		21,221
Provision for credit losses		2,733		4,106		11,643		4,367
Interest expense		58,778		58,238		176,100		174,755
Total expenses		194,499		177,670		595,711		519,566

Other income (expense)
Other income (expense) – net		5,402		(176)		9,151		(5,038)
Loss on debt extinguishment		—		(376)		(6)		(389)
Gain on assets sold – net		44,076		40,930		69,956		179,747
Total other income		49,478		40,378		79,101		174,320

Income before income tax expense and income from unconsolidated joint ventures		97,011		102,138		193,811		388,148
Income tax expense		(1,758)		(1,191)		(2,092)		(3,535)
(Loss) income from unconsolidated joint ventures		(1,345)		4,117		555		7,522
Net income		93,908		105,064		192,274		392,135
Net income attributable to noncontrolling interest		(2,527)		(2,790)		(5,095)		(10,787)
Net income available to common stockholders	$	91,381	$	102,274	$	187,179	$	381,348

Earnings per common share available to common stockholders:
Basic:
Net income available to common stockholders	$	0.37	$	0.44	$	0.78	$	1.61
Diluted:
Net income available to common stockholders	$	0.37	$	0.43	$	0.78	$	1.60

See notes to consolidated financial statements.

Table of Contents

OMEGA HEALTHCARE INVESTORS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Unaudited

(in thousands)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Net income	$	93,908	$	105,064	$	192,274	$	392,135
Other comprehensive income (loss)
Foreign currency translation		(18,634)		(14,753)		5,366		(47,903)
Cash flow hedges		5,041		17,573		2,690		56,595
Total other comprehensive (loss) income		(13,593)		2,820		8,056		8,692
Comprehensive income		80,315		107,884		200,330		400,827
Comprehensive income attributable to noncontrolling interest		(2,144)		(2,868)		(5,333)		(11,036)
Comprehensive income attributable to common stockholders	$	78,171	$	105,016	$	194,997	$	389,791

See notes to consolidated financial statements.

Table of Contents

OMEGA HEALTHCARE INVESTORS, INC.

CONSOLIDATED STATEMENTS OF EQUITY

Three Months Ended September 30, 2023 and 2022

Unaudited

(in thousands, except per share amounts)


									Accumulated
	Common		Additional		Cumulative		Cumulative		Other		Total
	Stock		Paid-in		Net		Dividends		Comprehensive		Stockholders’		Noncontrolling		Total
	Par Value		Capital		Earnings		Paid		Income		Equity		Interest		Equity
Balance at June 30, 2023	$	24,099	$	6,526,367	$	3,534,199	$	(6,501,899)	$	41,353	$	3,624,119	$	188,473	$	3,812,592
Stock related compensation		—		8,810		—		—		—		8,810		—		8,810
Issuance of common stock		399		125,734		—		—		—		126,133		—		126,133
Common dividends declared ($0.67 per share)		—		—		—		(164,540)		—		(164,540)		—		(164,540)
Vesting/exercising of Omega OP Units		—		(3,704)		—		—		—		(3,704)		3,704		—
Omega OP Units distributions		—		—		—		—		—		—		(5,984)		(5,984)
Net change in noncontrolling interest holder in consolidated JV		—		4		—		—		—		4		—		4
Other comprehensive loss		—		—		—		—		(13,210)		(13,210)		(383)		(13,593)
Net income		—		—		91,381		—		—		91,381		2,527		93,908
Balance at September 30, 2023	$	24,498	$	6,657,211	$	3,625,580	$	(6,666,439)	$	28,143	$	3,668,993	$	188,337	$	3,857,330

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10-Q	[2015-05-08]
10-K	[2015-02-27]
10-Q	[2014-11-07]
10-Q	[2014-08-06]
10-Q	[2014-05-07]
10-K	[2014-02-11]
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