Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Omega Reports Fourth Quarter 2021 Results and Recent Developments By: Omega Healthcare Investors, Inc. via Business Wire February 02, 2022 at 16:30 PM EST Omega Healthcare Investors, Inc. (NYSE: OHI) (the “Company” or “Omega”) announced today its results for the quarter and the year ended December 31, 2021. The Company reported net income for the quarter of $34.2 million or $0.14 per common share. The Company also reported Nareit Funds From Operations (“Nareit FFO”) for the quarter of $123.5 million or $0.50 per common share, Adjusted Funds From Operations (“Adjusted FFO” or “AFFO”) of $190.4 million or $0.77 per common share, and Funds Available for Distribution (“FAD”) of $178.8 million. Nareit FFO, AFFO and FAD are supplemental non-GAAP financial measures that the Company believes are useful in evaluating the performance of real estate investment trusts. For more information regarding these non-GAAP measures, see the “Non-GAAP Financial Measures” on the Company’s website at www.omegahealthcare.com. CEO COMMENTS Taylor Pickett, Omega’s Chief Executive Officer, stated, “Portfolio occupancy growth stalled in the fourth quarter, driven by a continuing stretched labor market and the early effects of the Omicron variant. This impacted consolidated operator profitability, which declined slightly in the quarter. In an industry where many operators continue to rely on federal and state support, it remains to be seen to what extent future support will be sufficient to fund operator obligations until occupancy returns to a sustainable level.” Mr. Pickett continued, “As expected, our near-term adjusted FFO and FAD financial results were impacted by non-payment of rent by a few operators as well as a reduction in the collateral supporting non-paying operators. This will likely continue in the next few quarters as we work to resolve these issues. At the same time, we believe that the strong appetite for these assets, as evidenced by the robust transaction market, and the secular tailwinds that continue to exist for this industry should result in a relatively modest long-term financial impact to the business from the resolution of these operator issues.” Mr. Pickett concluded, “As we have throughout this crisis, we would like to highlight the incredible efforts of our operators and their heroic employees, who continue to work tirelessly and bravely to protect and care for their residents.” 2022 RECENT DEVELOPMENTS AND 2021 QUARTERLY HIGHLIGHTS In Q1 2022, the Company… completed $16 million of real estate acquisitions. authorized a $500 million stock repurchase program. declared a $0.67 per share quarterly cash dividend on common stock. was included in the 2022 Bloomberg Gender-Equality Index. In Q4 2021, the Company… invested $20 million in capital renovation and construction-in-progress projects. sold 3 facilities for $8 million in cash proceeds, generating a $1 million gain. paid a $0.67 per share quarterly cash dividend on common stock. In Q3 2021, the Company… completed $66 million of mortgage loan investments. invested $96 million in capital renovation and construction-in-progress projects. completed $10 million of real estate acquisitions. sold 15 facilities for $110 million in cash proceeds, generating a $56 million gain. paid a $0.67 per share quarterly cash dividend on common stock. In Q2 2021, the Company… collected over 99% of contractual rent and mortgage payments. entered into a new $1.45 billion unsecured credit facility. entered into a new $50 million term loan. implemented a new $1.0 billion “at-the-market” (“ATM”) offering program. completed $6 million of mortgage loan investments. sold six facilities for $13 million in cash proceeds, generating a $4 million gain. invested $31 million in capital renovation and construction-in-progress projects. paid a $0.67 per share quarterly cash dividend on common stock. In Q1 2021, the Company… collected over 99% of contractual rent and mortgage payments. issued $700 million aggregate principal amount of 3.250% Senior Notes due 2033. redeemed $350 million aggregate principal amount of 4.375% Senior Notes due 2023. completed $595 million of real estate acquisitions. sold 24 facilities for $188 million in cash proceeds, generating a $100 million gain. invested $17 million in capital renovation and construction-in-progress projects. announced the opening of Inspīr Carnegie Hill (Upper East Side, Manhattan) to residents. paid a $0.67 per share quarterly cash dividend on common stock. was included in the 2021 Bloomberg Gender-Equality Index. NET INCOME The Company reported net income of $34.2 million, or $0.14 per common share, on revenues of $249.9 million for the quarter ended December 31, 2021. This compares to net income of $63.1 million, or $0.27 per common share, on revenues of $263.8 million, for the same period in 2020. For the year ended December 31, 2021, the Company reported net income of $428.3 million, or $1.76 per common share, on revenues of $1.1 billion. This compares to net income of $163.5 million, or $0.70 per common share, on revenues of $892.4 million, for the same period in 2020. The year-over-year increase in net income for the year ended December 31, 2021 was primarily due to (i) a $142.5 million increase in gain on the sale of assets, (ii) a $107.8 million decrease in the write-off of non-cash revenue (primarily straight-line revenue), (iii) $62.6 million in revenue from incremental new investments completed, (iv) a $27.8 million decrease in impairment on real estate properties and (v) a $9.9 million increase in income from unconsolidated joint ventures. The increase in net income was partially offset by (i) a $39.7 million increase in provision for credit losses, (ii) a $17.4 million increase in loss on early extinguishment of debt, (iii) a $12.1 million increase in depreciation and amortization expense from new investments, (iv) a $9.0 million increase in interest expense, (v) a $2.6 million increase in stock-based compensation expense and (vi) a $1.9 million increase in severance costs. Net income for the three months and year ended December 31, 2021 includes $0.1 million and $11.8 million of revenue recognized related to the application of security deposits and letters of credit proceeds, respectively. Net income for the three months and year ended December 31, 2021 also includes $14.8 million and $21.3 million, respectively, of revenue recognized based upon our ability to offset uncollected contractual rental obligations due from an operator against the interest and principal of certain Omega debt obligations. FOURTH QUARTER 2021 RESULTS Revenues – Revenues for the quarter ended December 31, 2021 totaled $249.9 million, which included $13.0 million of straight-line and other non-cash revenue, $7.4 million of non-recurring revenue and $3.5 million of real estate tax and ground rents, which were partially offset by a $16.4 million write-off of straight-line and other non-cash revenue. Expenses – Expenses for the quarter ended December 31, 2021 totaled $216.6 million, primarily consisting of $85.3 million of depreciation and amortization expense, $55.1 million of interest expense, a $49.7 million provision for credit losses, $13.0 million of general and administrative (“G&A”) expense (which included $2.7 million of severance costs), $4.5 million of stock-based compensation expense, $3.6 million of real estate tax and ground lease expense, $3.2 million of amortized deferred financing costs, and $2.2 million of impairment on real estate properties. Other Income and Expense – Other income for the quarter ended December 31, 2021 totaled $0.3 million, which included $1.0 million of gain on assets sold, which was offset by $0.6 million of other expense and $0.1 million in charges related to the early extinguishment of debt obligations. Funds From Operations – Nareit FFO for the quarter ended December 31, 2021 was $123.5 million, or $0.50 per common share, on 246.9 million weighted-average common shares outstanding, compared to $173.3 million, or $0.73 per common share, on 236.8 million weighted-average common shares outstanding, for the same period in 2020. The $123.5 million of Nareit FFO includes a $16.4 million write-off of straight-line and other non-cash revenue, a $50.6 million non-cash provision for credit losses, $4.5 million of non-cash stock-based compensation expense, $2.7 million of severance costs, and a $0.1 million loss on early extinguishment of debt, which were partially offset by $7.4 million of non-recurring revenue. The $173.3 million of Nareit FFO for the quarter ended December 31, 2020 included a $12.4 million loss on debt extinguishment, $4.4 million of non-cash stock-based compensation expense, $4.4 million in non-cash provision for credit losses, a $2.1 million write-off of straight-line and other non-cash revenue, $2.0 million of acquisition, merger and transition related costs offset by $4.3 million of non-recurring revenue and a $2.0 million recovery on direct financing leases. Adjusted FFO was $190.4 million, or $0.77 per common share, for the quarter ended December 31, 2021, compared to $192.5 million, or $0.81 per common share, for the same quarter in 2020. For further information, see the “Funds From Operations” schedule below and on the Company’s website. 2021 ANNUAL RESULTS Revenues – Revenues for the year ended December 31, 2021 totaled $1.1 billion, which included $48.8 million of straight-line and other non-cash revenue, $19.4 million of non-recurring revenue, and $13.0 million of real estate tax and ground rents, which were partially offset by a $38.8 million write-off of straight-line and other non-cash revenue. Expenses – Expenses for the year ended December 31, 2021 totaled $777.0 million, primarily consisting of $342.0 million of depreciation and amortization expense, $222.3 million of interest expense, a $77.7 million provision for credit losses, $44.7 million of impairment on real estate properties, $41.8 million of G&A expense (which included $2.7 million of severance costs), $21.4 million of stock-based compensation expense, $13.7 million of real estate tax and ground lease expense, and $12.3 million of amortized deferred financing costs. Other Income and Expense – Other income for the year ended December 31, 2021 totaled $130.3 million, which included $161.6 million of gain on assets sold, which was offset by $30.8 million in charges related to the early extinguishment of debt obligations and $1.3 million of other expense. Funds From Operations – Nareit FFO for the year ended December 31, 2021 was $655.2 million, or $2.68 per common share, on 244.3 million weighted-average common shares outstanding, compared to $555.9 million, or $2.36 per common share, on 235.1 million weighted-average common shares outstanding, for the same period in 2020. The $655.2 million of Nareit FFO includes a $38.8 million write-off of straight-line and other non-cash revenue, a $78.6 million non-cash provision for credit losses, $21.4 million of non-cash stock-based compensation expense, $2.7 million of severance costs, and a $30.8 million loss on early extinguishment of debt, which were partially offset by $19.4 million of non-recurring revenue and a $0.7 million recovery on direct financing leases. The $555.9 million of Nareit FFO for the year ended December 31, 2020 included a $146.6 million write-off of straight-line and other non-cash revenue, $38.0 million of non-cash provision for credit losses, $18.8 million of non-cash stock-based compensation expense, $13.3 million of loss on debt extinguishment, $2.0 million of acquisition, merger and transition related costs, a $2.5 million loss on early extinguishment of debt related to an unconsolidated joint venture, a $1.6 provision for uncollectible receivables related to an unconsolidated joint venture, and $0.9 million in severance costs, which were partially offset by $16.2 million of non-recurring revenue and a $3.1 million recovery on direct financing leases. Adjusted FFO was $809.8 million, or $3.31 per common share, for the year ended December 31, 2021, compared to $760.4 million, or $3.23 per common share, for 2020. For further information, see the “Funds From Operations” schedule below and on the Company’s website. FINANCING ACTIVITIES $500 Million Stock Repurchase Program – As previously announced, in January 2022, the Board of Directors authorized a program allowing the repurchase of up to $500 million of Omega’s outstanding common stock through March 2025. The timing and amount of stock repurchases is at the discretion of management; however, management is under no obligation to repurchase any amount of stock. No shares of stock have been repurchased under the program. ATM Program and Dividend Reinvestment and Common Stock Purchase Plan – During the quarter ended December 31, 2021, the Company sold 80 thousand shares of its common stock under its ATM program and its Dividend Reinvestment and Common Stock Purchase Plan. Aggregate gross proceeds from these sales generated $2.3 million in the fourth quarter and $281.8 million year-to-date: At-the-Market Program for 2021 (in thousands, except price per share) Q1 Q2 Q3 Q4 Total Number of shares 1,617 2,497 37 - 4,151 Average price per share $ 37.95 $ 37.00 $ 36.53 $ - $ 37.37 Gross proceeds $ 61,355 $ 92,402 $ 1,354 $ - $ 155,111 Dividend Reinvestment and Common Stock Purchase Plan for 2021 (in thousands, except price per share) Q1 Q2 Q3 Q4 Total Number of shares 416 1,640 1,279 80 3,415 Average price per share $ 37.23 $ 37.69 $ 36.88 $ 28.30 $ 37.11 Gross proceeds $ 15,491 $ 61,795 $ 47,178 $ 2,258 $ 126,722 2022 RECENT AND 2021 FOURTH QUARTER PORTFOLIO ACTIVITY Q1 2022 Portfolio Activity: Operator Collectability – In January 2022, an operator representing 3.5% of Q4 2021 contractual annualized rent and mortgage interest revenue, did not pay its contractual amounts due under its lease agreement. The operator asked for a short-term rent deferral and negotiations with the operator are on-going. Omega holds a $1.0 million letter of credit from this operator. $8 Million Real Estate Acquisition – On January 31, 2022, the Company acquired one care home in the United Kingdom (similar to assisted living facilities in the United States) for approximately $8.2 million. The facility was added to an existing operator’s master lease with an initial cash yield of 8.0% with 2.5% annual escalators. $8 Million Real Estate Acquisition – On January 1, 2022, the Company acquired a Maryland skilled nursing facility (“SNF”) for $8.2 million and amended an operator’s existing lease, with an initial term expiring on December 31, 2032, to include the acquired facility. The incremental base rent for the additional facility in the initial year is $0.8 million and includes annual escalators of 2.5%. Q4 2021 Portfolio Activity: Guardian – Guardian Healthcare (“Guardian”) failed to make contractual rent and interest payments under its lease and mortgage loan agreements from October through December 2021. The Company is currently in negotiations to restructure and amend Guardian’s lease and loan agreements. As part of the restructuring negotiations, on December 30, 2021, the Company acquired 2 SNFs, previously subject to the Guardian mortgage loan, in consideration for a reduction of $8.7 million in the mortgage principal and added the facilities to Guardian’s master lease agreement. As a result of Guardian’s non-payment of contractual rent and interest and the anticipated restructuring plan, in the fourth quarter of 2021, the Company wrote-off $14.0 million of straight-line rent and lease inducements and recorded a $38.2 million provision for credit losses on its $103.8 million Guardian mortgage loan portfolio to reduce the carrying value of the loan to the fair value of the collateral. Gulf Coast – On October 14, 2021, Gulf Coast Health Care (“Gulf Coast”) commenced voluntary cases under Chapter 11 of the United States Bankruptcy Code. In connection with the bankruptcy, the Company entered into a restructuring support agreement with Gulf Coast and has agreed to provide up to $25 million in senior secured debtor-in-possession (“DIP”) financing, subject to certain conditions, to provide liquidity and assist with the transition of operations in the Company’s 23 open facilities. Operations of the 23 open facilities were transitioned to another operator on December 1, 2021. In the fourth quarter of 2021, the Company funded $20.5 million under the DIP facility and simultaneously fully reserved for the loan through a provision for credit losses. In the fourth quarter, the Company recorded $14.8 million of revenue based on Omega’s ability to offset its uncollected contractual rent against the interest and principal of certain debt obligations owed by Omega. $20 Million of Real Estate Investments – In the fourth quarter of 2021, the Company completed approximately $16.4 million in capital renovations and $4.1 million of new construction projects. Asset Sales and Impairments: $8 Million in Asset Sales – In the fourth quarter of 2021, the Company sold 3 facilities for $7.7 million in cash, recognizing a gain of approximately $1.0 million. All of these facilities were previously classified as held for sale. Impairments and Assets Held for Sale – During the fourth quarter of 2021, the Company recorded a $2.2 million net impairment charge to reduce the net book value of one SNF to its estimated fair value. As of December 31, 2021, the Company had 41 facilities classified as assets held for sale, totaling approximately $261.2 million in net book value. In December 2021, the Company entered into an agreement to sell 22 facilities formerly operated by Gulf Coast for gross proceeds of approximately $318 million. The sale is targeted to close on or around April 1, 2022. All of the remaining 19 facilities were under contract as of January 31, 2022. BALANCE SHEET AND LIQUIDITY As of December 31, 2021, the Company had $5.3 billion of outstanding indebtedness with a weighted-average annual interest rate of 4.17%. The Company’s indebtedness consisted of an aggregate principal amount of $4.9 billion of senior unsecured notes, a $50.0 million unsecured term loan, and $362.0 million of secured debt. As of December 31, 2021, total cash and cash equivalents were $20.5 million and the Company had its full $1.45 billion of undrawn capacity on its revolving credit facility. DIVIDENDS On January 27, 2022, the Board of Directors declared a quarterly cash dividend of $0.67 per share, to be paid February 15, 2022, to common stockholders of record as of the close of business on February 7, 2022. TAX TREATMENT FOR 2021 DIVIDENDS On February 16, 2021, May 17, 2021, August 13, 2021 and November 15, 2021, the Company paid dividends to its common stockholders in the per share amounts of $0.67 for stockholders of record on February 8, 2021, May 3, 2021, August 2, 2021 and November 5, 2021, respectively. The Company has determined the tax treatment for the dividends is as follows: Dividend Payment Date % Taxable as Ordinary Income % Taxable as Return of Capital % Taxable as Capital Gain February 16, 2021 74.1422% 21.4776% 4.3802% May 17, 2021 74.1422% 21.4776% 4.3802% August 13, 2021 74.1422% 21.4776% 4.3802% November 15, 2021 74.1422% 21.4776% 4.3802% ESG On January 26, 2022, Omega, for the third consecutive year, was named one of 418 companies across 50 industries included in the Bloomberg Gender-Equality Index (“GEI”). The GEI brings transparency to gender-related practices and policies at publicly listed companies, increasing the breadth of environmental, social and governance data available to investors. The GEI scoring methodology allows investors to assess company performance and compare across industry peer groups. The reference index measures gender equality across five pillars: female leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, sexual harassment policies, and pro-women brand. 2022 GUIDANCE Given the continued uncertainty related to the COVID-19 pandemic, its impact on the financial performance of the Company’s operators and the extent of future necessary government support to the operators, the Company will not be providing 2022 earnings guidance. CONFERENCE CALL The Company will be conducting a conference call on Thursday, February 3, 2022 at 10 a.m. Eastern time to review the Company’s 2021 fourth quarter results and current developments. Analysts and investors within the United States interested in participating are invited to call (877) 511-2891. The Canadian toll-free dial-in number is (855) 669-9657. All other international participants may use the dial-in number (412) 902-4140. Ask the operator to be connected to the “Omega Healthcare’s Fourth Quarter 2021 Earnings Call.” To listen to the conference call via webcast, log on to www.omegahealthcare.com and click the “Omega Healthcare Investors, Inc. 4Q Earnings Call” hyper link under “Upcoming Events” in the Investor Relations section on Omega’s website homepage. Webcast replays of the call will be available on Omega’s website for approximately two weeks following the call. Additionally, a copy of the earnings release will be available in the “Featured Documents” and “Press Releases” sections of Omega’s website. * * * * * * Omega is a real estate investment trust that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the United States, as well as in the United Kingdom. Forward-Looking Statements and Cautionary Language Novel coronavirus (“COVID-19”) data has been provided by our operators. We caution that we have not independently validated facility virus incidence information, it may be reported on an inconsistent basis by our operators, and we can provide no assurance regarding its accuracy or that there have not been any changes since the time the information was obtained from our operators; we also undertake no duty to update this information. This press release includes forward-looking statements within the meaning of the federal securities laws. All statements regarding Omega’s or its tenants’, operators’, borrowers’ or managers’ expected future financial condition, results of operations, cash flows, funds from operations, dividends and dividend plans, financing opportunities and plans, capital markets transactions, business strategy, budgets, projected costs, operating metrics, capital expenditures, competitive positions, acquisitions, investment opportunities, dispositions, facility transitions, growth opportunities, expected lease income, continued qualification as a real estate investment trust (“REIT”), plans and objectives of management for future operations and statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will” and other similar expressions are forward-looking statements. These forward-looking statements are inherently uncertain, and actual results may differ from Omega's expectations. Omega’s actual results may differ materially from those reflected in such forward-looking statements as a result of a variety of factors, including, among other things: (i) uncertainties relating to the business operations of the operators of Omega’s properties, including those relating to reimbursement by third-party payors, regulatory matters and occupancy levels; (ii) the impact of the COVID-19 pandemic on our business and the business of our operators, including without limitation, the extent and duration of the COVID-19 pandemic, increased costs, staffing shortages and decreased occupancy levels experienced by operators of SNFs and assisted living facilities (“ALFs”) in connection therewith, the ability of operators to comply with infection control and vaccine protocols, the long-term impact of vaccinations on facility infection rates, and the extent to which continued government support may be available to operators to offset such costs and the conditions related thereto; (iii) the ability of any of Omega’s operators in bankruptcy to reject unexpired lease obligations, modify the terms of Omega’s mortgages and impede the ability of Omega to collect unpaid rent or interest during the pendency of a bankruptcy proceeding and retain security deposits for the debtor’s obligations, and other costs and uncertainties associated with operator bankruptcies; (iv) Omega’s ability to re-lease, otherwise transition or sell underperforming assets or assets held for sale on a timely basis and on terms that allow Omega to realize the carrying value of these assets; (v) the availability and cost of capital to Omega; (vi) changes in Omega’s credit ratings and the ratings of its debt securities; (vii) competition in the financing of healthcare facilities; (viii) competition in the long-term healthcare industry and shifts in the perception of various types of long-term care facilities, including SNFs and ALFs; (ix) additional regulatory and other changes in the healthcare sector; (x) changes in the financial position of Omega’s operators; (xi) the effect of economic and market conditions generally, and particularly in the healthcare industry; (xii) changes in interest rates; (xiii) the timing, amount and yield of any additional investments; (xiv) changes in tax laws and regulations affecting REITs; (xv) the potential impact of changes in the SNF and ALF market or local real estate conditions on the Company’s ability to dispose of assets held for sale for the anticipated proceeds or on a timely basis, or to redeploy the proceeds therefrom on favorable terms; (xvi) Omega’s ability to maintain its status as a REIT; (xvii) the effect of other factors affecting our business or the businesses of Omega’s operators that are beyond Omega’s or operators’ control, including natural disasters, other health crises or pandemics and governmental action, particularly in the healthcare industry, and (xviii) other factors identified in Omega’s filings with the Securities and Exchange Commission. Statements regarding future events and developments and Omega’s future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward looking statements. We caution you that the foregoing list of important factors may not contain all the material factors that are important to you. Accordingly, readers should not place undue reliance on those statements. All forward-looking statements are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. OMEGA HEALTHCARE INVESTORS, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) December 31, December 31, 2021 2020 (Unaudited) ASSETS Real estate assets Buildings and improvements $ 7,448,126 $ 7,269,596 Land 916,328 883,765 Furniture and equipment 511,271 518,664 Construction in progress 74,062 30,129 Total real estate assets 8,949,787 8,702,154 Less accumulated depreciation (2,160,696 ) (1,996,914 ) Real estate assets – net 6,789,091 6,705,240 Investments in direct financing leases – net 10,873 10,764 Mortgage notes receivable – net 835,086 885,313 7,635,050 7,601,317 Other investments – net 469,884 467,442 Investments in unconsolidated joint ventures 194,687 200,638 Assets held for sale 261,151 81,452 Total investments 8,560,772 8,350,849 Cash and cash equivalents 20,534 163,535 Restricted cash 3,877 4,023 Contractual receivables – net 11,259 10,408 Other receivables and lease inducements 251,815 234,666 Goodwill 651,417 651,737 Other assets 138,804 82,231 Total assets $ 9,638,478 $ 9,497,449 LIABILITIES AND EQUITY Revolving credit facility $ — $ 101,158 Secured borrowings 362,081 369,524 Senior notes and other unsecured borrowings – net 4,891,455 4,698,570 Accrued expenses and other liabilities 268,516 280,824 Deferred income taxes 8,200 10,766 Total liabilities 5,530,252 5,460,842 Equity: Preferred stock $1.00 par value authorized – 20,000 shares, issued and outstanding – none — — Common stock $.10 par value authorized – 350,000 shares, issued and outstanding – 239,061 shares as of December 31, 2021 and 231,199 shares as of December 31, 2020 23,906 23,119 Additional paid-in capital 6,427,566 6,152,887 Cumulative net earnings 3,011,474 2,594,735 Cumulative dividends paid (5,553,908 ) (4,916,097 ) Accumulated other comprehensive loss (2,200 ) (12,768 ) Total stockholders’ equity 3,906,838 3,841,876 Noncontrolling interest 201,388 194,731 Total equity 4,108,226 4,036,607 Total liabilities and equity $ 9,638,478 $ 9,497,449 OMEGA HEALTHCARE INVESTORS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited (in thousands, except per share amounts) Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 Revenues Rental income $ 214,314 $ 224,080 $ 910,722 $ 740,815 Real estate tax and ground lease income 3,483 3,089 12,955 12,612 Income from direct financing leases 257 258 1,029 1,033 Mortgage interest income 20,968 24,044 91,661 89,422 Other investment income 10,476 11,994 44,721 44,864 Miscellaneous income 451 320 1,721 3,635 Total revenues 249,949 263,785 1,062,809 892,381 Expenses Depreciation and amortization 85,269 82,623 342,014 329,924 General and administrative 13,036 10,381 41,757 39,619 Real estate tax and ground lease expense 3,624 3,230 13,716 13,764 Stock-based compensation expense 4,502 4,442 21,415 18,822 Acquisition, merger and transition related costs — 1,956 1,814 2,018 Impairment on real estate properties 2,205 28,762 44,658 72,494 Recovery on direct financing leases — (2,003 ) (717 ) (3,079 ) Provision for credit losses 49,710 4,420 77,733 37,997 Interest expense 55,062 55,981 222,316 213,313 Interest – amortization of deferred financing costs 3,163 2,692 12,288 10,076 Total expenses 216,571 192,484 776,994 734,948 Other income (expense) Other expense – net (632 ) (282 ) (1,298 ) (957 ) Loss on debt extinguishment (56 ) (12,444 ) (30,763 ) (13,340 ) Realized gain on foreign exchange 47 128 717 78 Gain on assets sold – net 975 5,181 161,609 19,113 Total other income (expense) 334 (7,417 ) 130,265 4,894 Income before income tax expense and income from unconsolidated joint ventures 33,712 63,884 416,080 162,327 Income tax expense (967 ) (2,299 ) (3,840 ) (4,925 ) Income from unconsolidated joint ventures 1,493 1,489 16,062 6,143 Net income 34,238 63,074 428,302 163,545 Net income attributable to noncontrolling interest (947 ) (1,678 ) (11,563 ) (4,218 ) Net income available to common stockholders $ 33,291 $ 61,396 $ 416,739 $ 159,327 Earnings per common share available to common stockholders: Basic: Net income available to common stockholders $ 0.14 $ 0.27 $ 1.76 $ 0.70 Diluted: Net income $ 0.14 $ 0.27 $ 1.75 $ 0.70 Dividends declared per common share $ 0.67 $ 0.67 $ 2.68 $ 2.68 OMEGA HEALTHCARE INVESTORS, INC. FUNDS FROM OPERATIONS Unaudited (in thousands, except per share amounts) Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 Net income (1)(2) $ 34,238 $ 63,074 $ 428,302 $ 163,545 Deduct gain from real estate dispositions (975 ) (5,181 ) (161,609 ) (19,113 ) (Deduct gain) add back loss from real estate dispositions of unconsolidated joint ventures (135 ) 544 (14,880 ) (5,894 ) Sub-total 33,128 58,437 251,813 138,538 Elimination of non-cash items included in net income: Depreciation and amortization 85,269 82,623 342,014 329,924 Depreciation - unconsolidated joint ventures 2,906 3,439 12,285 14,000 Add back provision for impairments on real estate properties 2,205 28,762 44,658 72,494 Add back provision for impairments on real estate properties of unconsolidated joint ventures — — 4,430 — Add back unrealized loss on warrants — 61 43 988 Nareit funds from operations (“Nareit FFO”) $ 123,508 $ 173,322 $ 655,243 $ 555,944 Weighted-average common shares outstanding, basic 239,649 228,785 236,933 227,741 Restricted stock and PRSUs 430 1,761 785 1,239 Omega OP Units 6,837 6,263 6,620 6,124 Weighted-average common shares outstanding, diluted 246,916 236,809 244,338 235,104 Nareit funds from operations available per share $ 0.50 $ 0.73 $ 2.68 $ 2.36 Adjustments to calculate adjusted funds from operations: Nareit FFO $ 123,508 $ 173,322 $ 655,243 $ 555,944 Add back: Uncollectible accounts receivable (3) 16,449 2,107 38,806 146,608 Non-cash provision for credit losses 50,582 4,420 78,605 37,997 Stock-based compensation expense 4,502 4,442 21,415 18,822 Loss on debt extinguishment 56 12,444 30,763 13,340 Acquisition, merger and transition related costs — 1,956 1,814 2,018 Severance 2,721 — 2,721 853 Deduct: Non-recurring revenue (7,436 ) (4,260 ) (19,350 ) (16,201 ) Recovery on direct financing leases — (2,003 ) (717 ) (3,079 ) Add back unconsolidated joint venture related: Uncollectible accounts receivable (3) — — — 1,584 Loss on debt extinguishment — 68 457 2,493 Adjusted funds from operations (“AFFO”) (1)(2) $ 190,382 $ 192,496 $ 809,757 $ 760,379 Adjustments to calculate funds available for distribution: Non-cash interest expense $ 2,114 $ 2,670 $ 8,266 $ 9,986 Capitalized interest (720 ) (321 ) (1,524 ) (10,029 ) Non-cash revenue (13,000 ) (11,923 ) (48,751 ) (40,709 ) Funds available for distribution (“FAD”) (1)(2) $ 178,776 $ 182,922 $ 767,748 $ 719,627 _______________ (1) The three months and year ended December 31, 2021, includes the application of $0.1 million and $11.8 million, respectively, of Agemo and Gulf Coast security deposits (letter of credit and cash deposits) in revenue. (2) The three months and year ended December 31, 2021, includes $14.8 million and $21.3 million, respectively, of revenue related to Gulf Coast recognized based on the Company’s ability to offset uncollected rent against the interest and principal of certain debt obligations owed by Omega; however, AFFO and FAD includes only $7.4 million and $13.9 million, respectively. (3) Straight-line accounts receivable write-off recorded as a reduction to rental income. Nareit Funds From Operations (“Nareit FFO”), Adjusted FFO and Funds Available for Distribution (“FAD”) are non-GAAP financial measures. For purposes of the Securities and Exchange Commission’s Regulation G, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that exclude amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable financial measure calculated and presented in accordance with GAAP in the income statement, balance sheet or statement of cash flows (or equivalent statements) of the company, or include amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable financial measure so calculated and presented. As used in this press release, GAAP refers to generally accepted accounting principles in the United States of America. Pursuant to the requirements of Regulation G, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. The Company calculates and reports Nareit FFO in accordance with the definition and interpretive guidelines issued by the National Association of Real Estate Investment Trusts (“Nareit”), and consequently, Nareit FFO is defined as net income (computed in accordance with GAAP), adjusted for the effects of asset dispositions and certain non-cash items, primarily depreciation and amortization and impairments on real estate assets, and after adjustments for unconsolidated partnerships and joint ventures and changes in the fair value of warrants. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis. Revenue recognized based on the application of security deposits and letters of credit or based on the ability to offset against other financial instruments is included within Nareit FFO. The Company believes that Nareit FFO, Adjusted FFO and FAD are important supplemental measures of its operating performance. Because the historical cost accounting convention used for real estate assets requires depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time, while real estate values instead have historically risen or fallen with market conditions. The term funds from operations was designed by the real estate industry to address this issue. Funds from operations described herein is not necessarily comparable to funds from operations of other real estate investment trusts, or REITs, that do not use the same definition or implementation guidelines or interpret the standards differently from the Company. Adjusted FFO is calculated as Nareit FFO excluding the impact of non-cash stock-based compensation and certain revenue and expense items (e.g., acquisition, merger and transition related costs, write-off of straight-line accounts receivable, recoveries and provisions for credit losses (excluding certain cash recoveries on impaired loans), severance, etc.). FAD is calculated as Adjusted FFO less non-cash interest expense and non-cash revenue, such as straight-line rent. The Company believes these measures provide an enhanced measure of the operating performance of the Company’s core portfolio as a REIT. The Company’s computation of Adjusted FFO and FAD may not be comparable to the Nareit definition of funds from operations or to similar measures reported by other REITs, but the Company believes that they are appropriate measures for this Company. The Company uses these non-GAAP measures among the criteria to measure the operating performance of its business. The Company also uses FAD among the performance metrics for performance-based compensation of officers. The Company further believes that by excluding the effect of depreciation, amortization, impairments on real estate assets and gains or losses from sales of real estate, all of which are based on historical costs, and which may be of limited relevance in evaluating current performance, funds from operations can facilitate comparisons of operating performance between periods and between other REITs. The Company offers these measures to assist the users of its financial statements in analyzing its operating performance and not as measures of liquidity or cash flow. These non-GAAP measures are not measures of financial performance under GAAP and should not be considered as measures of liquidity, alternatives to net income or indicators of any other performance measure determined in accordance with GAAP. Investors and potential investors in the Company’s securities should not rely on these non-GAAP measures as substitutes for any GAAP measure, including net income. The following tables present selected portfolio information, including operator and geographic concentrations, and lease and loan maturities: As of December 31, 2021 Total # of # of Balance Sheet Data Total # of Investment % of Operating Operating Facilities ($000’s) Investment Facilities (2) Beds (2) Real estate investments (1) 856 $ 8,960,660 91 % 880 89,216 Mortgage notes receivable 63 835,086 9 % 59 6,487 919 $ 9,795,746 100 % 939 95,703 Assets held for sale 41 261,151 Total investments 960 $ 10,056,897 As of December 31, 2021 Total # of # of Investment Investment Data Total # of Investment % of Operating Operating per Bed Facilities ($000’s) Investment Facilities (2) Beds (2) ($000’s) SNFs/Transitional care (1) 764 $ 7,527,240 77 % 784 84,623 $ 89 Senior housing (3) 155 2,268,506 23 % 155 11,080 $ 205 919 $ 9,795,746 100 % 939 95,703 $ 102 Assets held for sale 41 261,151 Total investments 960 $ 10,056,897 _______________ (1) Includes one facility under a direct financing lease totaling $10.9 million. (2) Excludes facilities which are non-operating, closed and/or not currently providing patient services. (3) Includes ALFs, memory care and independent living facilities. Revenue by Investment Type (000's) Three Months Ended Year Ended December 31, 2021 December 31, 2021 Rental property $ 214,571 85.8 % $ 911,751 85.8 % Real estate tax and ground lease income 3,483 1.4 % 12,955 1.2 % Mortgage notes 20,968 8.4 % 91,661 8.6 % Other investment income and miscellaneous income - net 10,927 4.4 % 46,442 4.4 % $ 249,949 100 % $ 1,062,809 100 % Revenue by Facility Type (000's) Three Months Ended Year Ended December 31, 2021 December 31, 2021 SNFs/Transitional care $ 187,054 74.8 % $ 815,002 76.7 % Senior housing 48,485 19.4 % 188,410 17.7 % Real estate tax and ground lease income 3,483 1.4 % 12,955 1.2 % Other 10,927 4.4 % 46,442 4.4 % $ 249,949 100 % $ 1,062,809 100 % As of 2021 Q4 % of Total December 31, 2021 Annualized Annualized Rent/Interest Concentration by Operator ($000’s) # of Contractual Contractual Facilities (1) Rent/Interest (1)(2) Rent/Interest Ciena 62 $ 97,432 10.0 % Consulate 85 95,632 9.8 % Maplewood 17 66,751 6.8 % Communicare 43 64,403 6.6 % Genesis 44 56,839 5.8 % Agemo 51 53,307 5.5 % Saber 50 53,053 5.4 % Brookdale 24 44,781 4.6 % HHC 44 38,139 3.9 % Guardian 35 37,174 3.8 % Remaining Operators (3) 460 369,975 37.8 % 915 $ 977,486 100.0 % ______________ (1) Excludes facilities which are non-operating, closed and/or not currently providing patient services. (2) Includes mezzanine and term loan interest. (3) Excludes 23 open facilities and 1 closed facility related to the Gulf Coast bankruptcy (declared in October 2021) and one multi-tenant medical office building. As of December 31, 2021 Geographic Concentration by Investment ($000’s) Total # of Total % of Total Facilities (1) Investment (1)(2) Investment Florida 115 $ 1,320,017 13.4 % Texas 114 995,386 10.1 % Michigan 46 648,738 6.6 % Indiana 70 643,640 6.5 % California 52 577,267 5.9 % Ohio 46 576,809 5.8 % Pennsylvania 54 554,741 5.6 % Virginia 28 422,024 4.3 % New York 1 336,069 3.4 % North Carolina 39 327,784 3.3 % Remaining 32 states 295 3,014,923 30.6 % 860 9,417,398 95.5 % United Kingdom 59 447,574 4.5 % 919 $ 9,864,972 100.0 % _______________ (1) Excludes 41 facilities with total investment of approximately $261.2 million classified as assets held for sale. (2) Excludes $69.2 million of allowance for credit losses. As of December 31, 2021 Operating Lease Expirations & Loan Maturities ($000's) (1) Lease (Rent) Interest Income Lease (Rent) and Interest Income % of Total Annualized Contractual Rent/Interest 2022 $ — $ 35 $ 35 0.0 % 2023 3,787 526 4,313 0.4 % 2024 4,130 7,388 11,518 1.2 % 2025 5,109 5,265 10,374 1.1 % 2026 41,178 — 41,178 4.2 % _______________ (1) Based on annualized 4th quarter 2021 contractual rent and interest. The following tables present operator revenue mix, census and coverage data based on information provided by our operators for the indicated periods. We have not independently verified this information, and we are providing this data for informational purposes only. Operator Revenue Mix (1) Medicare / Private / Medicaid Insurance Other Three-months ended September 30, 2021 53.1 % 33.3 % 13.6 % Three-months ended June 30, 2021 53.2 % 33.5 % 13.3 % Three-months ended March 31, 2021 50.6 % 38.2 % 11.2 % Three-months ended December 31, 2020 51.0 % 38.1 % 10.9 % Three-months ended September 30, 2020 51.6 % 37.2 % 11.2 % _______________ (1) Excludes all facilities considered non-core and does not include federal stimulus revenue. Coverage Data Before After Occupancy (2) Management Management Operator Census and Coverage (1) Fees (3) Fees (4) Twelve-months ended September 30, 2021 74.2 % 1.52x 1.18x Twelve-months ended June 30, 2021 74.2 % 1.63x 1.28x Twelve-months ended March 31, 2021 75.3 % 1.80x 1.44x Twelve-months ended December 31, 2020 78.1 % 1.86x 1.50x Twelve-months ended September 30, 2020 80.1 % 1.87x 1.51x _______________ (1) Excludes facilities considered non-core. (2) Based on available (operating) beds. (3) Represents EBITDARM of our operators, defined as earnings before interest, taxes, depreciation, amortization, Rent expense and management fees for the applicable period, divided by the total Rent payable to the Company by its operators during such period. “Rent” refers to the total monthly rent and mortgage interest due under the Company’s lease and mortgage agreements over the applicable period. (4) Represents EBITDAR of our operators, defined as earnings before interest, taxes, depreciation, amortization, and Rent (as defined in footnote 3) expense for the applicable period, divided by the total Rent payable to the Company by its operators during such period. Assumes a management fee of 4%. The following table presents a debt maturity schedule as of December 31, 2021: Unsecured Debt Debt Maturities ($000’s) Revolving Credit Facility and OP Term Loan (1) Senior Notes (1) Secured Debt Total Debt Maturities 2022 $ — $ — $ 2,275 $ 2,275 2023 — 350,000 — 350,000 2024 — 400,000 — 400,000 2025 50,000 400,000 — 450,000 2026 — 600,000 — 600,000 2027 — 700,000 — 700,000 Thereafter — 2,450,000 359,806 2,809,806 $ 50,000 $ 4,900,000 $ 362,081 $ 5,312,081 _______________ (1) Excludes issuance and deferred financing costs. The following table presents real estate investment activity: Three Months Ended Year Ended Real Estate Investment Activity ($000's) December 31, 2021 December 31, 2021 $ Amount % $ Amount % Real property $ — — % $ 604,121 71.8 % Construction-in-progress 4,133 20.2 % 113,180 13.5 % Capital expenditures 16,351 79.8 % 51,138 6.1 % Mortgages — — % 72,420 8.6 % Other — — % — — % Total $ 20,484 100.0 % $ 840,859 100.0 % View source version on businesswire.com: https://www.businesswire.com/news/home/20220202005880/en/Contacts Matthew Gourmand, SVP, Corporate Strategy & Investor Relations or Bob Stephenson, CFO at (410) 427-1700 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Omega Reports Fourth Quarter 2021 Results and Recent Developments By: Omega Healthcare Investors, Inc. via Business Wire February 02, 2022 at 16:30 PM EST Omega Healthcare Investors, Inc. (NYSE: OHI) (the “Company” or “Omega”) announced today its results for the quarter and the year ended December 31, 2021. The Company reported net income for the quarter of $34.2 million or $0.14 per common share. The Company also reported Nareit Funds From Operations (“Nareit FFO”) for the quarter of $123.5 million or $0.50 per common share, Adjusted Funds From Operations (“Adjusted FFO” or “AFFO”) of $190.4 million or $0.77 per common share, and Funds Available for Distribution (“FAD”) of $178.8 million. Nareit FFO, AFFO and FAD are supplemental non-GAAP financial measures that the Company believes are useful in evaluating the performance of real estate investment trusts. For more information regarding these non-GAAP measures, see the “Non-GAAP Financial Measures” on the Company’s website at www.omegahealthcare.com. CEO COMMENTS Taylor Pickett, Omega’s Chief Executive Officer, stated, “Portfolio occupancy growth stalled in the fourth quarter, driven by a continuing stretched labor market and the early effects of the Omicron variant. This impacted consolidated operator profitability, which declined slightly in the quarter. In an industry where many operators continue to rely on federal and state support, it remains to be seen to what extent future support will be sufficient to fund operator obligations until occupancy returns to a sustainable level.” Mr. Pickett continued, “As expected, our near-term adjusted FFO and FAD financial results were impacted by non-payment of rent by a few operators as well as a reduction in the collateral supporting non-paying operators. This will likely continue in the next few quarters as we work to resolve these issues. At the same time, we believe that the strong appetite for these assets, as evidenced by the robust transaction market, and the secular tailwinds that continue to exist for this industry should result in a relatively modest long-term financial impact to the business from the resolution of these operator issues.” Mr. Pickett concluded, “As we have throughout this crisis, we would like to highlight the incredible efforts of our operators and their heroic employees, who continue to work tirelessly and bravely to protect and care for their residents.” 2022 RECENT DEVELOPMENTS AND 2021 QUARTERLY HIGHLIGHTS In Q1 2022, the Company… completed $16 million of real estate acquisitions. authorized a $500 million stock repurchase program. declared a $0.67 per share quarterly cash dividend on common stock. was included in the 2022 Bloomberg Gender-Equality Index. In Q4 2021, the Company… invested $20 million in capital renovation and construction-in-progress projects. sold 3 facilities for $8 million in cash proceeds, generating a $1 million gain. paid a $0.67 per share quarterly cash dividend on common stock. In Q3 2021, the Company… completed $66 million of mortgage loan investments. invested $96 million in capital renovation and construction-in-progress projects. completed $10 million of real estate acquisitions. sold 15 facilities for $110 million in cash proceeds, generating a $56 million gain. paid a $0.67 per share quarterly cash dividend on common stock. In Q2 2021, the Company… collected over 99% of contractual rent and mortgage payments. entered into a new $1.45 billion unsecured credit facility. entered into a new $50 million term loan. implemented a new $1.0 billion “at-the-market” (“ATM”) offering program. completed $6 million of mortgage loan investments. sold six facilities for $13 million in cash proceeds, generating a $4 million gain. invested $31 million in capital renovation and construction-in-progress projects. paid a $0.67 per share quarterly cash dividend on common stock. In Q1 2021, the Company… collected over 99% of contractual rent and mortgage payments. issued $700 million aggregate principal amount of 3.250% Senior Notes due 2033. redeemed $350 million aggregate principal amount of 4.375% Senior Notes due 2023. completed $595 million of real estate acquisitions. sold 24 facilities for $188 million in cash proceeds, generating a $100 million gain. invested $17 million in capital renovation and construction-in-progress projects. announced the opening of Inspīr Carnegie Hill (Upper East Side, Manhattan) to residents. paid a $0.67 per share quarterly cash dividend on common stock. was included in the 2021 Bloomberg Gender-Equality Index. NET INCOME The Company reported net income of $34.2 million, or $0.14 per common share, on revenues of $249.9 million for the quarter ended December 31, 2021. This compares to net income of $63.1 million, or $0.27 per common share, on revenues of $263.8 million, for the same period in 2020. For the year ended December 31, 2021, the Company reported net income of $428.3 million, or $1.76 per common share, on revenues of $1.1 billion. This compares to net income of $163.5 million, or $0.70 per common share, on revenues of $892.4 million, for the same period in 2020. The year-over-year increase in net income for the year ended December 31, 2021 was primarily due to (i) a $142.5 million increase in gain on the sale of assets, (ii) a $107.8 million decrease in the write-off of non-cash revenue (primarily straight-line revenue), (iii) $62.6 million in revenue from incremental new investments completed, (iv) a $27.8 million decrease in impairment on real estate properties and (v) a $9.9 million increase in income from unconsolidated joint ventures. The increase in net income was partially offset by (i) a $39.7 million increase in provision for credit losses, (ii) a $17.4 million increase in loss on early extinguishment of debt, (iii) a $12.1 million increase in depreciation and amortization expense from new investments, (iv) a $9.0 million increase in interest expense, (v) a $2.6 million increase in stock-based compensation expense and (vi) a $1.9 million increase in severance costs. Net income for the three months and year ended December 31, 2021 includes $0.1 million and $11.8 million of revenue recognized related to the application of security deposits and letters of credit proceeds, respectively. Net income for the three months and year ended December 31, 2021 also includes $14.8 million and $21.3 million, respectively, of revenue recognized based upon our ability to offset uncollected contractual rental obligations due from an operator against the interest and principal of certain Omega debt obligations. FOURTH QUARTER 2021 RESULTS Revenues – Revenues for the quarter ended December 31, 2021 totaled $249.9 million, which included $13.0 million of straight-line and other non-cash revenue, $7.4 million of non-recurring revenue and $3.5 million of real estate tax and ground rents, which were partially offset by a $16.4 million write-off of straight-line and other non-cash revenue. Expenses – Expenses for the quarter ended December 31, 2021 totaled $216.6 million, primarily consisting of $85.3 million of depreciation and amortization expense, $55.1 million of interest expense, a $49.7 million provision for credit losses, $13.0 million of general and administrative (“G&A”) expense (which included $2.7 million of severance costs), $4.5 million of stock-based compensation expense, $3.6 million of real estate tax and ground lease expense, $3.2 million of amortized deferred financing costs, and $2.2 million of impairment on real estate properties. Other Income and Expense – Other income for the quarter ended December 31, 2021 totaled $0.3 million, which included $1.0 million of gain on assets sold, which was offset by $0.6 million of other expense and $0.1 million in charges related to the early extinguishment of debt obligations. Funds From Operations – Nareit FFO for the quarter ended December 31, 2021 was $123.5 million, or $0.50 per common share, on 246.9 million weighted-average common shares outstanding, compared to $173.3 million, or $0.73 per common share, on 236.8 million weighted-average common shares outstanding, for the same period in 2020. The $123.5 million of Nareit FFO includes a $16.4 million write-off of straight-line and other non-cash revenue, a $50.6 million non-cash provision for credit losses, $4.5 million of non-cash stock-based compensation expense, $2.7 million of severance costs, and a $0.1 million loss on early extinguishment of debt, which were partially offset by $7.4 million of non-recurring revenue. The $173.3 million of Nareit FFO for the quarter ended December 31, 2020 included a $12.4 million loss on debt extinguishment, $4.4 million of non-cash stock-based compensation expense, $4.4 million in non-cash provision for credit losses, a $2.1 million write-off of straight-line and other non-cash revenue, $2.0 million of acquisition, merger and transition related costs offset by $4.3 million of non-recurring revenue and a $2.0 million recovery on direct financing leases. Adjusted FFO was $190.4 million, or $0.77 per common share, for the quarter ended December 31, 2021, compared to $192.5 million, or $0.81 per common share, for the same quarter in 2020. For further information, see the “Funds From Operations” schedule below and on the Company’s website. 2021 ANNUAL RESULTS Revenues – Revenues for the year ended December 31, 2021 totaled $1.1 billion, which included $48.8 million of straight-line and other non-cash revenue, $19.4 million of non-recurring revenue, and $13.0 million of real estate tax and ground rents, which were partially offset by a $38.8 million write-off of straight-line and other non-cash revenue. Expenses – Expenses for the year ended December 31, 2021 totaled $777.0 million, primarily consisting of $342.0 million of depreciation and amortization expense, $222.3 million of interest expense, a $77.7 million provision for credit losses, $44.7 million of impairment on real estate properties, $41.8 million of G&A expense (which included $2.7 million of severance costs), $21.4 million of stock-based compensation expense, $13.7 million of real estate tax and ground lease expense, and $12.3 million of amortized deferred financing costs. Other Income and Expense – Other income for the year ended December 31, 2021 totaled $130.3 million, which included $161.6 million of gain on assets sold, which was offset by $30.8 million in charges related to the early extinguishment of debt obligations and $1.3 million of other expense. Funds From Operations – Nareit FFO for the year ended December 31, 2021 was $655.2 million, or $2.68 per common share, on 244.3 million weighted-average common shares outstanding, compared to $555.9 million, or $2.36 per common share, on 235.1 million weighted-average common shares outstanding, for the same period in 2020. The $655.2 million of Nareit FFO includes a $38.8 million write-off of straight-line and other non-cash revenue, a $78.6 million non-cash provision for credit losses, $21.4 million of non-cash stock-based compensation expense, $2.7 million of severance costs, and a $30.8 million loss on early extinguishment of debt, which were partially offset by $19.4 million of non-recurring revenue and a $0.7 million recovery on direct financing leases. The $555.9 million of Nareit FFO for the year ended December 31, 2020 included a $146.6 million write-off of straight-line and other non-cash revenue, $38.0 million of non-cash provision for credit losses, $18.8 million of non-cash stock-based compensation expense, $13.3 million of loss on debt extinguishment, $2.0 million of acquisition, merger and transition related costs, a $2.5 million loss on early extinguishment of debt related to an unconsolidated joint venture, a $1.6 provision for uncollectible receivables related to an unconsolidated joint venture, and $0.9 million in severance costs, which were partially offset by $16.2 million of non-recurring revenue and a $3.1 million recovery on direct financing leases. Adjusted FFO was $809.8 million, or $3.31 per common share, for the year ended December 31, 2021, compared to $760.4 million, or $3.23 per common share, for 2020. For further information, see the “Funds From Operations” schedule below and on the Company’s website. FINANCING ACTIVITIES $500 Million Stock Repurchase Program – As previously announced, in January 2022, the Board of Directors authorized a program allowing the repurchase of up to $500 million of Omega’s outstanding common stock through March 2025. The timing and amount of stock repurchases is at the discretion of management; however, management is under no obligation to repurchase any amount of stock. No shares of stock have been repurchased under the program. ATM Program and Dividend Reinvestment and Common Stock Purchase Plan – During the quarter ended December 31, 2021, the Company sold 80 thousand shares of its common stock under its ATM program and its Dividend Reinvestment and Common Stock Purchase Plan. Aggregate gross proceeds from these sales generated $2.3 million in the fourth quarter and $281.8 million year-to-date: At-the-Market Program for 2021 (in thousands, except price per share) Q1 Q2 Q3 Q4 Total Number of shares 1,617 2,497 37 - 4,151 Average price per share $ 37.95 $ 37.00 $ 36.53 $ - $ 37.37 Gross proceeds $ 61,355 $ 92,402 $ 1,354 $ - $ 155,111 Dividend Reinvestment and Common Stock Purchase Plan for 2021 (in thousands, except price per share) Q1 Q2 Q3 Q4 Total Number of shares 416 1,640 1,279 80 3,415 Average price per share $ 37.23 $ 37.69 $ 36.88 $ 28.30 $ 37.11 Gross proceeds $ 15,491 $ 61,795 $ 47,178 $ 2,258 $ 126,722 2022 RECENT AND 2021 FOURTH QUARTER PORTFOLIO ACTIVITY Q1 2022 Portfolio Activity: Operator Collectability – In January 2022, an operator representing 3.5% of Q4 2021 contractual annualized rent and mortgage interest revenue, did not pay its contractual amounts due under its lease agreement. The operator asked for a short-term rent deferral and negotiations with the operator are on-going. Omega holds a $1.0 million letter of credit from this operator. $8 Million Real Estate Acquisition – On January 31, 2022, the Company acquired one care home in the United Kingdom (similar to assisted living facilities in the United States) for approximately $8.2 million. The facility was added to an existing operator’s master lease with an initial cash yield of 8.0% with 2.5% annual escalators. $8 Million Real Estate Acquisition – On January 1, 2022, the Company acquired a Maryland skilled nursing facility (“SNF”) for $8.2 million and amended an operator’s existing lease, with an initial term expiring on December 31, 2032, to include the acquired facility. The incremental base rent for the additional facility in the initial year is $0.8 million and includes annual escalators of 2.5%. Q4 2021 Portfolio Activity: Guardian – Guardian Healthcare (“Guardian”) failed to make contractual rent and interest payments under its lease and mortgage loan agreements from October through December 2021. The Company is currently in negotiations to restructure and amend Guardian’s lease and loan agreements. As part of the restructuring negotiations, on December 30, 2021, the Company acquired 2 SNFs, previously subject to the Guardian mortgage loan, in consideration for a reduction of $8.7 million in the mortgage principal and added the facilities to Guardian’s master lease agreement. As a result of Guardian’s non-payment of contractual rent and interest and the anticipated restructuring plan, in the fourth quarter of 2021, the Company wrote-off $14.0 million of straight-line rent and lease inducements and recorded a $38.2 million provision for credit losses on its $103.8 million Guardian mortgage loan portfolio to reduce the carrying value of the loan to the fair value of the collateral. Gulf Coast – On October 14, 2021, Gulf Coast Health Care (“Gulf Coast”) commenced voluntary cases under Chapter 11 of the United States Bankruptcy Code. In connection with the bankruptcy, the Company entered into a restructuring support agreement with Gulf Coast and has agreed to provide up to $25 million in senior secured debtor-in-possession (“DIP”) financing, subject to certain conditions, to provide liquidity and assist with the transition of operations in the Company’s 23 open facilities. Operations of the 23 open facilities were transitioned to another operator on December 1, 2021. In the fourth quarter of 2021, the Company funded $20.5 million under the DIP facility and simultaneously fully reserved for the loan through a provision for credit losses. In the fourth quarter, the Company recorded $14.8 million of revenue based on Omega’s ability to offset its uncollected contractual rent against the interest and principal of certain debt obligations owed by Omega. $20 Million of Real Estate Investments – In the fourth quarter of 2021, the Company completed approximately $16.4 million in capital renovations and $4.1 million of new construction projects. Asset Sales and Impairments: $8 Million in Asset Sales – In the fourth quarter of 2021, the Company sold 3 facilities for $7.7 million in cash, recognizing a gain of approximately $1.0 million. All of these facilities were previously classified as held for sale. Impairments and Assets Held for Sale – During the fourth quarter of 2021, the Company recorded a $2.2 million net impairment charge to reduce the net book value of one SNF to its estimated fair value. As of December 31, 2021, the Company had 41 facilities classified as assets held for sale, totaling approximately $261.2 million in net book value. In December 2021, the Company entered into an agreement to sell 22 facilities formerly operated by Gulf Coast for gross proceeds of approximately $318 million. The sale is targeted to close on or around April 1, 2022. All of the remaining 19 facilities were under contract as of January 31, 2022. BALANCE SHEET AND LIQUIDITY As of December 31, 2021, the Company had $5.3 billion of outstanding indebtedness with a weighted-average annual interest rate of 4.17%. The Company’s indebtedness consisted of an aggregate principal amount of $4.9 billion of senior unsecured notes, a $50.0 million unsecured term loan, and $362.0 million of secured debt. As of December 31, 2021, total cash and cash equivalents were $20.5 million and the Company had its full $1.45 billion of undrawn capacity on its revolving credit facility. DIVIDENDS On January 27, 2022, the Board of Directors declared a quarterly cash dividend of $0.67 per share, to be paid February 15, 2022, to common stockholders of record as of the close of business on February 7, 2022. TAX TREATMENT FOR 2021 DIVIDENDS On February 16, 2021, May 17, 2021, August 13, 2021 and November 15, 2021, the Company paid dividends to its common stockholders in the per share amounts of $0.67 for stockholders of record on February 8, 2021, May 3, 2021, August 2, 2021 and November 5, 2021, respectively. The Company has determined the tax treatment for the dividends is as follows: Dividend Payment Date % Taxable as Ordinary Income % Taxable as Return of Capital % Taxable as Capital Gain February 16, 2021 74.1422% 21.4776% 4.3802% May 17, 2021 74.1422% 21.4776% 4.3802% August 13, 2021 74.1422% 21.4776% 4.3802% November 15, 2021 74.1422% 21.4776% 4.3802% ESG On January 26, 2022, Omega, for the third consecutive year, was named one of 418 companies across 50 industries included in the Bloomberg Gender-Equality Index (“GEI”). The GEI brings transparency to gender-related practices and policies at publicly listed companies, increasing the breadth of environmental, social and governance data available to investors. The GEI scoring methodology allows investors to assess company performance and compare across industry peer groups. The reference index measures gender equality across five pillars: female leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, sexual harassment policies, and pro-women brand. 2022 GUIDANCE Given the continued uncertainty related to the COVID-19 pandemic, its impact on the financial performance of the Company’s operators and the extent of future necessary government support to the operators, the Company will not be providing 2022 earnings guidance. CONFERENCE CALL The Company will be conducting a conference call on Thursday, February 3, 2022 at 10 a.m. Eastern time to review the Company’s 2021 fourth quarter results and current developments. Analysts and investors within the United States interested in participating are invited to call (877) 511-2891. The Canadian toll-free dial-in number is (855) 669-9657. All other international participants may use the dial-in number (412) 902-4140. Ask the operator to be connected to the “Omega Healthcare’s Fourth Quarter 2021 Earnings Call.” To listen to the conference call via webcast, log on to www.omegahealthcare.com and click the “Omega Healthcare Investors, Inc. 4Q Earnings Call” hyper link under “Upcoming Events” in the Investor Relations section on Omega’s website homepage. Webcast replays of the call will be available on Omega’s website for approximately two weeks following the call. Additionally, a copy of the earnings release will be available in the “Featured Documents” and “Press Releases” sections of Omega’s website. * * * * * * Omega is a real estate investment trust that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the United States, as well as in the United Kingdom. Forward-Looking Statements and Cautionary Language Novel coronavirus (“COVID-19”) data has been provided by our operators. We caution that we have not independently validated facility virus incidence information, it may be reported on an inconsistent basis by our operators, and we can provide no assurance regarding its accuracy or that there have not been any changes since the time the information was obtained from our operators; we also undertake no duty to update this information. This press release includes forward-looking statements within the meaning of the federal securities laws. All statements regarding Omega’s or its tenants’, operators’, borrowers’ or managers’ expected future financial condition, results of operations, cash flows, funds from operations, dividends and dividend plans, financing opportunities and plans, capital markets transactions, business strategy, budgets, projected costs, operating metrics, capital expenditures, competitive positions, acquisitions, investment opportunities, dispositions, facility transitions, growth opportunities, expected lease income, continued qualification as a real estate investment trust (“REIT”), plans and objectives of management for future operations and statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will” and other similar expressions are forward-looking statements. These forward-looking statements are inherently uncertain, and actual results may differ from Omega's expectations. Omega’s actual results may differ materially from those reflected in such forward-looking statements as a result of a variety of factors, including, among other things: (i) uncertainties relating to the business operations of the operators of Omega’s properties, including those relating to reimbursement by third-party payors, regulatory matters and occupancy levels; (ii) the impact of the COVID-19 pandemic on our business and the business of our operators, including without limitation, the extent and duration of the COVID-19 pandemic, increased costs, staffing shortages and decreased occupancy levels experienced by operators of SNFs and assisted living facilities (“ALFs”) in connection therewith, the ability of operators to comply with infection control and vaccine protocols, the long-term impact of vaccinations on facility infection rates, and the extent to which continued government support may be available to operators to offset such costs and the conditions related thereto; (iii) the ability of any of Omega’s operators in bankruptcy to reject unexpired lease obligations, modify the terms of Omega’s mortgages and impede the ability of Omega to collect unpaid rent or interest during the pendency of a bankruptcy proceeding and retain security deposits for the debtor’s obligations, and other costs and uncertainties associated with operator bankruptcies; (iv) Omega’s ability to re-lease, otherwise transition or sell underperforming assets or assets held for sale on a timely basis and on terms that allow Omega to realize the carrying value of these assets; (v) the availability and cost of capital to Omega; (vi) changes in Omega’s credit ratings and the ratings of its debt securities; (vii) competition in the financing of healthcare facilities; (viii) competition in the long-term healthcare industry and shifts in the perception of various types of long-term care facilities, including SNFs and ALFs; (ix) additional regulatory and other changes in the healthcare sector; (x) changes in the financial position of Omega’s operators; (xi) the effect of economic and market conditions generally, and particularly in the healthcare industry; (xii) changes in interest rates; (xiii) the timing, amount and yield of any additional investments; (xiv) changes in tax laws and regulations affecting REITs; (xv) the potential impact of changes in the SNF and ALF market or local real estate conditions on the Company’s ability to dispose of assets held for sale for the anticipated proceeds or on a timely basis, or to redeploy the proceeds therefrom on favorable terms; (xvi) Omega’s ability to maintain its status as a REIT; (xvii) the effect of other factors affecting our business or the businesses of Omega’s operators that are beyond Omega’s or operators’ control, including natural disasters, other health crises or pandemics and governmental action, particularly in the healthcare industry, and (xviii) other factors identified in Omega’s filings with the Securities and Exchange Commission. Statements regarding future events and developments and Omega’s future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward looking statements. We caution you that the foregoing list of important factors may not contain all the material factors that are important to you. Accordingly, readers should not place undue reliance on those statements. All forward-looking statements are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. OMEGA HEALTHCARE INVESTORS, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) December 31, December 31, 2021 2020 (Unaudited) ASSETS Real estate assets Buildings and improvements $ 7,448,126 $ 7,269,596 Land 916,328 883,765 Furniture and equipment 511,271 518,664 Construction in progress 74,062 30,129 Total real estate assets 8,949,787 8,702,154 Less accumulated depreciation (2,160,696 ) (1,996,914 ) Real estate assets – net 6,789,091 6,705,240 Investments in direct financing leases – net 10,873 10,764 Mortgage notes receivable – net 835,086 885,313 7,635,050 7,601,317 Other investments – net 469,884 467,442 Investments in unconsolidated joint ventures 194,687 200,638 Assets held for sale 261,151 81,452 Total investments 8,560,772 8,350,849 Cash and cash equivalents 20,534 163,535 Restricted cash 3,877 4,023 Contractual receivables – net 11,259 10,408 Other receivables and lease inducements 251,815 234,666 Goodwill 651,417 651,737 Other assets 138,804 82,231 Total assets $ 9,638,478 $ 9,497,449 LIABILITIES AND EQUITY Revolving credit facility $ — $ 101,158 Secured borrowings 362,081 369,524 Senior notes and other unsecured borrowings – net 4,891,455 4,698,570 Accrued expenses and other liabilities 268,516 280,824 Deferred income taxes 8,200 10,766 Total liabilities 5,530,252 5,460,842 Equity: Preferred stock $1.00 par value authorized – 20,000 shares, issued and outstanding – none — — Common stock $.10 par value authorized – 350,000 shares, issued and outstanding – 239,061 shares as of December 31, 2021 and 231,199 shares as of December 31, 2020 23,906 23,119 Additional paid-in capital 6,427,566 6,152,887 Cumulative net earnings 3,011,474 2,594,735 Cumulative dividends paid (5,553,908 ) (4,916,097 ) Accumulated other comprehensive loss (2,200 ) (12,768 ) Total stockholders’ equity 3,906,838 3,841,876 Noncontrolling interest 201,388 194,731 Total equity 4,108,226 4,036,607 Total liabilities and equity $ 9,638,478 $ 9,497,449 OMEGA HEALTHCARE INVESTORS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited (in thousands, except per share amounts) Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 Revenues Rental income $ 214,314 $ 224,080 $ 910,722 $ 740,815 Real estate tax and ground lease income 3,483 3,089 12,955 12,612 Income from direct financing leases 257 258 1,029 1,033 Mortgage interest income 20,968 24,044 91,661 89,422 Other investment income 10,476 11,994 44,721 44,864 Miscellaneous income 451 320 1,721 3,635 Total revenues 249,949 263,785 1,062,809 892,381 Expenses Depreciation and amortization 85,269 82,623 342,014 329,924 General and administrative 13,036 10,381 41,757 39,619 Real estate tax and ground lease expense 3,624 3,230 13,716 13,764 Stock-based compensation expense 4,502 4,442 21,415 18,822 Acquisition, merger and transition related costs — 1,956 1,814 2,018 Impairment on real estate properties 2,205 28,762 44,658 72,494 Recovery on direct financing leases — (2,003 ) (717 ) (3,079 ) Provision for credit losses 49,710 4,420 77,733 37,997 Interest expense 55,062 55,981 222,316 213,313 Interest – amortization of deferred financing costs 3,163 2,692 12,288 10,076 Total expenses 216,571 192,484 776,994 734,948 Other income (expense) Other expense – net (632 ) (282 ) (1,298 ) (957 ) Loss on debt extinguishment (56 ) (12,444 ) (30,763 ) (13,340 ) Realized gain on foreign exchange 47 128 717 78 Gain on assets sold – net 975 5,181 161,609 19,113 Total other income (expense) 334 (7,417 ) 130,265 4,894 Income before income tax expense and income from unconsolidated joint ventures 33,712 63,884 416,080 162,327 Income tax expense (967 ) (2,299 ) (3,840 ) (4,925 ) Income from unconsolidated joint ventures 1,493 1,489 16,062 6,143 Net income 34,238 63,074 428,302 163,545 Net income attributable to noncontrolling interest (947 ) (1,678 ) (11,563 ) (4,218 ) Net income available to common stockholders $ 33,291 $ 61,396 $ 416,739 $ 159,327 Earnings per common share available to common stockholders: Basic: Net income available to common stockholders $ 0.14 $ 0.27 $ 1.76 $ 0.70 Diluted: Net income $ 0.14 $ 0.27 $ 1.75 $ 0.70 Dividends declared per common share $ 0.67 $ 0.67 $ 2.68 $ 2.68 OMEGA HEALTHCARE INVESTORS, INC. FUNDS FROM OPERATIONS Unaudited (in thousands, except per share amounts) Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 Net income (1)(2) $ 34,238 $ 63,074 $ 428,302 $ 163,545 Deduct gain from real estate dispositions (975 ) (5,181 ) (161,609 ) (19,113 ) (Deduct gain) add back loss from real estate dispositions of unconsolidated joint ventures (135 ) 544 (14,880 ) (5,894 ) Sub-total 33,128 58,437 251,813 138,538 Elimination of non-cash items included in net income: Depreciation and amortization 85,269 82,623 342,014 329,924 Depreciation - unconsolidated joint ventures 2,906 3,439 12,285 14,000 Add back provision for impairments on real estate properties 2,205 28,762 44,658 72,494 Add back provision for impairments on real estate properties of unconsolidated joint ventures — — 4,430 — Add back unrealized loss on warrants — 61 43 988 Nareit funds from operations (“Nareit FFO”) $ 123,508 $ 173,322 $ 655,243 $ 555,944 Weighted-average common shares outstanding, basic 239,649 228,785 236,933 227,741 Restricted stock and PRSUs 430 1,761 785 1,239 Omega OP Units 6,837 6,263 6,620 6,124 Weighted-average common shares outstanding, diluted 246,916 236,809 244,338 235,104 Nareit funds from operations available per share $ 0.50 $ 0.73 $ 2.68 $ 2.36 Adjustments to calculate adjusted funds from operations: Nareit FFO $ 123,508 $ 173,322 $ 655,243 $ 555,944 Add back: Uncollectible accounts receivable (3) 16,449 2,107 38,806 146,608 Non-cash provision for credit losses 50,582 4,420 78,605 37,997 Stock-based compensation expense 4,502 4,442 21,415 18,822 Loss on debt extinguishment 56 12,444 30,763 13,340 Acquisition, merger and transition related costs — 1,956 1,814 2,018 Severance 2,721 — 2,721 853 Deduct: Non-recurring revenue (7,436 ) (4,260 ) (19,350 ) (16,201 ) Recovery on direct financing leases — (2,003 ) (717 ) (3,079 ) Add back unconsolidated joint venture related: Uncollectible accounts receivable (3) — — — 1,584 Loss on debt extinguishment — 68 457 2,493 Adjusted funds from operations (“AFFO”) (1)(2) $ 190,382 $ 192,496 $ 809,757 $ 760,379 Adjustments to calculate funds available for distribution: Non-cash interest expense $ 2,114 $ 2,670 $ 8,266 $ 9,986 Capitalized interest (720 ) (321 ) (1,524 ) (10,029 ) Non-cash revenue (13,000 ) (11,923 ) (48,751 ) (40,709 ) Funds available for distribution (“FAD”) (1)(2) $ 178,776 $ 182,922 $ 767,748 $ 719,627 _______________ (1) The three months and year ended December 31, 2021, includes the application of $0.1 million and $11.8 million, respectively, of Agemo and Gulf Coast security deposits (letter of credit and cash deposits) in revenue. (2) The three months and year ended December 31, 2021, includes $14.8 million and $21.3 million, respectively, of revenue related to Gulf Coast recognized based on the Company’s ability to offset uncollected rent against the interest and principal of certain debt obligations owed by Omega; however, AFFO and FAD includes only $7.4 million and $13.9 million, respectively. (3) Straight-line accounts receivable write-off recorded as a reduction to rental income. Nareit Funds From Operations (“Nareit FFO”), Adjusted FFO and Funds Available for Distribution (“FAD”) are non-GAAP financial measures. For purposes of the Securities and Exchange Commission’s Regulation G, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that exclude amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable financial measure calculated and presented in accordance with GAAP in the income statement, balance sheet or statement of cash flows (or equivalent statements) of the company, or include amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable financial measure so calculated and presented. As used in this press release, GAAP refers to generally accepted accounting principles in the United States of America. Pursuant to the requirements of Regulation G, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. The Company calculates and reports Nareit FFO in accordance with the definition and interpretive guidelines issued by the National Association of Real Estate Investment Trusts (“Nareit”), and consequently, Nareit FFO is defined as net income (computed in accordance with GAAP), adjusted for the effects of asset dispositions and certain non-cash items, primarily depreciation and amortization and impairments on real estate assets, and after adjustments for unconsolidated partnerships and joint ventures and changes in the fair value of warrants. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis. Revenue recognized based on the application of security deposits and letters of credit or based on the ability to offset against other financial instruments is included within Nareit FFO. The Company believes that Nareit FFO, Adjusted FFO and FAD are important supplemental measures of its operating performance. Because the historical cost accounting convention used for real estate assets requires depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time, while real estate values instead have historically risen or fallen with market conditions. The term funds from operations was designed by the real estate industry to address this issue. Funds from operations described herein is not necessarily comparable to funds from operations of other real estate investment trusts, or REITs, that do not use the same definition or implementation guidelines or interpret the standards differently from the Company. Adjusted FFO is calculated as Nareit FFO excluding the impact of non-cash stock-based compensation and certain revenue and expense items (e.g., acquisition, merger and transition related costs, write-off of straight-line accounts receivable, recoveries and provisions for credit losses (excluding certain cash recoveries on impaired loans), severance, etc.). FAD is calculated as Adjusted FFO less non-cash interest expense and non-cash revenue, such as straight-line rent. The Company believes these measures provide an enhanced measure of the operating performance of the Company’s core portfolio as a REIT. The Company’s computation of Adjusted FFO and FAD may not be comparable to the Nareit definition of funds from operations or to similar measures reported by other REITs, but the Company believes that they are appropriate measures for this Company. The Company uses these non-GAAP measures among the criteria to measure the operating performance of its business. The Company also uses FAD among the performance metrics for performance-based compensation of officers. The Company further believes that by excluding the effect of depreciation, amortization, impairments on real estate assets and gains or losses from sales of real estate, all of which are based on historical costs, and which may be of limited relevance in evaluating current performance, funds from operations can facilitate comparisons of operating performance between periods and between other REITs. The Company offers these measures to assist the users of its financial statements in analyzing its operating performance and not as measures of liquidity or cash flow. These non-GAAP measures are not measures of financial performance under GAAP and should not be considered as measures of liquidity, alternatives to net income or indicators of any other performance measure determined in accordance with GAAP. Investors and potential investors in the Company’s securities should not rely on these non-GAAP measures as substitutes for any GAAP measure, including net income. The following tables present selected portfolio information, including operator and geographic concentrations, and lease and loan maturities: As of December 31, 2021 Total # of # of Balance Sheet Data Total # of Investment % of Operating Operating Facilities ($000’s) Investment Facilities (2) Beds (2) Real estate investments (1) 856 $ 8,960,660 91 % 880 89,216 Mortgage notes receivable 63 835,086 9 % 59 6,487 919 $ 9,795,746 100 % 939 95,703 Assets held for sale 41 261,151 Total investments 960 $ 10,056,897 As of December 31, 2021 Total # of # of Investment Investment Data Total # of Investment % of Operating Operating per Bed Facilities ($000’s) Investment Facilities (2) Beds (2) ($000’s) SNFs/Transitional care (1) 764 $ 7,527,240 77 % 784 84,623 $ 89 Senior housing (3) 155 2,268,506 23 % 155 11,080 $ 205 919 $ 9,795,746 100 % 939 95,703 $ 102 Assets held for sale 41 261,151 Total investments 960 $ 10,056,897 _______________ (1) Includes one facility under a direct financing lease totaling $10.9 million. (2) Excludes facilities which are non-operating, closed and/or not currently providing patient services. (3) Includes ALFs, memory care and independent living facilities. Revenue by Investment Type (000's) Three Months Ended Year Ended December 31, 2021 December 31, 2021 Rental property $ 214,571 85.8 % $ 911,751 85.8 % Real estate tax and ground lease income 3,483 1.4 % 12,955 1.2 % Mortgage notes 20,968 8.4 % 91,661 8.6 % Other investment income and miscellaneous income - net 10,927 4.4 % 46,442 4.4 % $ 249,949 100 % $ 1,062,809 100 % Revenue by Facility Type (000's) Three Months Ended Year Ended December 31, 2021 December 31, 2021 SNFs/Transitional care $ 187,054 74.8 % $ 815,002 76.7 % Senior housing 48,485 19.4 % 188,410 17.7 % Real estate tax and ground lease income 3,483 1.4 % 12,955 1.2 % Other 10,927 4.4 % 46,442 4.4 % $ 249,949 100 % $ 1,062,809 100 % As of 2021 Q4 % of Total December 31, 2021 Annualized Annualized Rent/Interest Concentration by Operator ($000’s) # of Contractual Contractual Facilities (1) Rent/Interest (1)(2) Rent/Interest Ciena 62 $ 97,432 10.0 % Consulate 85 95,632 9.8 % Maplewood 17 66,751 6.8 % Communicare 43 64,403 6.6 % Genesis 44 56,839 5.8 % Agemo 51 53,307 5.5 % Saber 50 53,053 5.4 % Brookdale 24 44,781 4.6 % HHC 44 38,139 3.9 % Guardian 35 37,174 3.8 % Remaining Operators (3) 460 369,975 37.8 % 915 $ 977,486 100.0 % ______________ (1) Excludes facilities which are non-operating, closed and/or not currently providing patient services. (2) Includes mezzanine and term loan interest. (3) Excludes 23 open facilities and 1 closed facility related to the Gulf Coast bankruptcy (declared in October 2021) and one multi-tenant medical office building. As of December 31, 2021 Geographic Concentration by Investment ($000’s) Total # of Total % of Total Facilities (1) Investment (1)(2) Investment Florida 115 $ 1,320,017 13.4 % Texas 114 995,386 10.1 % Michigan 46 648,738 6.6 % Indiana 70 643,640 6.5 % California 52 577,267 5.9 % Ohio 46 576,809 5.8 % Pennsylvania 54 554,741 5.6 % Virginia 28 422,024 4.3 % New York 1 336,069 3.4 % North Carolina 39 327,784 3.3 % Remaining 32 states 295 3,014,923 30.6 % 860 9,417,398 95.5 % United Kingdom 59 447,574 4.5 % 919 $ 9,864,972 100.0 % _______________ (1) Excludes 41 facilities with total investment of approximately $261.2 million classified as assets held for sale. (2) Excludes $69.2 million of allowance for credit losses. As of December 31, 2021 Operating Lease Expirations & Loan Maturities ($000's) (1) Lease (Rent) Interest Income Lease (Rent) and Interest Income % of Total Annualized Contractual Rent/Interest 2022 $ — $ 35 $ 35 0.0 % 2023 3,787 526 4,313 0.4 % 2024 4,130 7,388 11,518 1.2 % 2025 5,109 5,265 10,374 1.1 % 2026 41,178 — 41,178 4.2 % _______________ (1) Based on annualized 4th quarter 2021 contractual rent and interest. The following tables present operator revenue mix, census and coverage data based on information provided by our operators for the indicated periods. We have not independently verified this information, and we are providing this data for informational purposes only. Operator Revenue Mix (1) Medicare / Private / Medicaid Insurance Other Three-months ended September 30, 2021 53.1 % 33.3 % 13.6 % Three-months ended June 30, 2021 53.2 % 33.5 % 13.3 % Three-months ended March 31, 2021 50.6 % 38.2 % 11.2 % Three-months ended December 31, 2020 51.0 % 38.1 % 10.9 % Three-months ended September 30, 2020 51.6 % 37.2 % 11.2 % _______________ (1) Excludes all facilities considered non-core and does not include federal stimulus revenue. Coverage Data Before After Occupancy (2) Management Management Operator Census and Coverage (1) Fees (3) Fees (4) Twelve-months ended September 30, 2021 74.2 % 1.52x 1.18x Twelve-months ended June 30, 2021 74.2 % 1.63x 1.28x Twelve-months ended March 31, 2021 75.3 % 1.80x 1.44x Twelve-months ended December 31, 2020 78.1 % 1.86x 1.50x Twelve-months ended September 30, 2020 80.1 % 1.87x 1.51x _______________ (1) Excludes facilities considered non-core. (2) Based on available (operating) beds. (3) Represents EBITDARM of our operators, defined as earnings before interest, taxes, depreciation, amortization, Rent expense and management fees for the applicable period, divided by the total Rent payable to the Company by its operators during such period. “Rent” refers to the total monthly rent and mortgage interest due under the Company’s lease and mortgage agreements over the applicable period. (4) Represents EBITDAR of our operators, defined as earnings before interest, taxes, depreciation, amortization, and Rent (as defined in footnote 3) expense for the applicable period, divided by the total Rent payable to the Company by its operators during such period. Assumes a management fee of 4%. The following table presents a debt maturity schedule as of December 31, 2021: Unsecured Debt Debt Maturities ($000’s) Revolving Credit Facility and OP Term Loan (1) Senior Notes (1) Secured Debt Total Debt Maturities 2022 $ — $ — $ 2,275 $ 2,275 2023 — 350,000 — 350,000 2024 — 400,000 — 400,000 2025 50,000 400,000 — 450,000 2026 — 600,000 — 600,000 2027 — 700,000 — 700,000 Thereafter — 2,450,000 359,806 2,809,806 $ 50,000 $ 4,900,000 $ 362,081 $ 5,312,081 _______________ (1) Excludes issuance and deferred financing costs. The following table presents real estate investment activity: Three Months Ended Year Ended Real Estate Investment Activity ($000's) December 31, 2021 December 31, 2021 $ Amount % $ Amount % Real property $ — — % $ 604,121 71.8 % Construction-in-progress 4,133 20.2 % 113,180 13.5 % Capital expenditures 16,351 79.8 % 51,138 6.1 % Mortgages — — % 72,420 8.6 % Other — — % — — % Total $ 20,484 100.0 % $ 840,859 100.0 % View source version on businesswire.com: https://www.businesswire.com/news/home/20220202005880/en/Contacts Matthew Gourmand, SVP, Corporate Strategy & Investor Relations or Bob Stephenson, CFO at (410) 427-1700
Omega Healthcare Investors, Inc. (NYSE: OHI) (the “Company” or “Omega”) announced today its results for the quarter and the year ended December 31, 2021. The Company reported net income for the quarter of $34.2 million or $0.14 per common share. The Company also reported Nareit Funds From Operations (“Nareit FFO”) for the quarter of $123.5 million or $0.50 per common share, Adjusted Funds From Operations (“Adjusted FFO” or “AFFO”) of $190.4 million or $0.77 per common share, and Funds Available for Distribution (“FAD”) of $178.8 million. Nareit FFO, AFFO and FAD are supplemental non-GAAP financial measures that the Company believes are useful in evaluating the performance of real estate investment trusts. For more information regarding these non-GAAP measures, see the “Non-GAAP Financial Measures” on the Company’s website at www.omegahealthcare.com. CEO COMMENTS Taylor Pickett, Omega’s Chief Executive Officer, stated, “Portfolio occupancy growth stalled in the fourth quarter, driven by a continuing stretched labor market and the early effects of the Omicron variant. This impacted consolidated operator profitability, which declined slightly in the quarter. In an industry where many operators continue to rely on federal and state support, it remains to be seen to what extent future support will be sufficient to fund operator obligations until occupancy returns to a sustainable level.” Mr. Pickett continued, “As expected, our near-term adjusted FFO and FAD financial results were impacted by non-payment of rent by a few operators as well as a reduction in the collateral supporting non-paying operators. This will likely continue in the next few quarters as we work to resolve these issues. At the same time, we believe that the strong appetite for these assets, as evidenced by the robust transaction market, and the secular tailwinds that continue to exist for this industry should result in a relatively modest long-term financial impact to the business from the resolution of these operator issues.” Mr. Pickett concluded, “As we have throughout this crisis, we would like to highlight the incredible efforts of our operators and their heroic employees, who continue to work tirelessly and bravely to protect and care for their residents.” 2022 RECENT DEVELOPMENTS AND 2021 QUARTERLY HIGHLIGHTS In Q1 2022, the Company… completed $16 million of real estate acquisitions. authorized a $500 million stock repurchase program. declared a $0.67 per share quarterly cash dividend on common stock. was included in the 2022 Bloomberg Gender-Equality Index. In Q4 2021, the Company… invested $20 million in capital renovation and construction-in-progress projects. sold 3 facilities for $8 million in cash proceeds, generating a $1 million gain. paid a $0.67 per share quarterly cash dividend on common stock. In Q3 2021, the Company… completed $66 million of mortgage loan investments. invested $96 million in capital renovation and construction-in-progress projects. completed $10 million of real estate acquisitions. sold 15 facilities for $110 million in cash proceeds, generating a $56 million gain. paid a $0.67 per share quarterly cash dividend on common stock. In Q2 2021, the Company… collected over 99% of contractual rent and mortgage payments. entered into a new $1.45 billion unsecured credit facility. entered into a new $50 million term loan. implemented a new $1.0 billion “at-the-market” (“ATM”) offering program. completed $6 million of mortgage loan investments. sold six facilities for $13 million in cash proceeds, generating a $4 million gain. invested $31 million in capital renovation and construction-in-progress projects. paid a $0.67 per share quarterly cash dividend on common stock. In Q1 2021, the Company… collected over 99% of contractual rent and mortgage payments. issued $700 million aggregate principal amount of 3.250% Senior Notes due 2033. redeemed $350 million aggregate principal amount of 4.375% Senior Notes due 2023. completed $595 million of real estate acquisitions. sold 24 facilities for $188 million in cash proceeds, generating a $100 million gain. invested $17 million in capital renovation and construction-in-progress projects. announced the opening of Inspīr Carnegie Hill (Upper East Side, Manhattan) to residents. paid a $0.67 per share quarterly cash dividend on common stock. was included in the 2021 Bloomberg Gender-Equality Index. NET INCOME The Company reported net income of $34.2 million, or $0.14 per common share, on revenues of $249.9 million for the quarter ended December 31, 2021. This compares to net income of $63.1 million, or $0.27 per common share, on revenues of $263.8 million, for the same period in 2020. For the year ended December 31, 2021, the Company reported net income of $428.3 million, or $1.76 per common share, on revenues of $1.1 billion. This compares to net income of $163.5 million, or $0.70 per common share, on revenues of $892.4 million, for the same period in 2020. The year-over-year increase in net income for the year ended December 31, 2021 was primarily due to (i) a $142.5 million increase in gain on the sale of assets, (ii) a $107.8 million decrease in the write-off of non-cash revenue (primarily straight-line revenue), (iii) $62.6 million in revenue from incremental new investments completed, (iv) a $27.8 million decrease in impairment on real estate properties and (v) a $9.9 million increase in income from unconsolidated joint ventures. The increase in net income was partially offset by (i) a $39.7 million increase in provision for credit losses, (ii) a $17.4 million increase in loss on early extinguishment of debt, (iii) a $12.1 million increase in depreciation and amortization expense from new investments, (iv) a $9.0 million increase in interest expense, (v) a $2.6 million increase in stock-based compensation expense and (vi) a $1.9 million increase in severance costs. Net income for the three months and year ended December 31, 2021 includes $0.1 million and $11.8 million of revenue recognized related to the application of security deposits and letters of credit proceeds, respectively. Net income for the three months and year ended December 31, 2021 also includes $14.8 million and $21.3 million, respectively, of revenue recognized based upon our ability to offset uncollected contractual rental obligations due from an operator against the interest and principal of certain Omega debt obligations. FOURTH QUARTER 2021 RESULTS Revenues – Revenues for the quarter ended December 31, 2021 totaled $249.9 million, which included $13.0 million of straight-line and other non-cash revenue, $7.4 million of non-recurring revenue and $3.5 million of real estate tax and ground rents, which were partially offset by a $16.4 million write-off of straight-line and other non-cash revenue. Expenses – Expenses for the quarter ended December 31, 2021 totaled $216.6 million, primarily consisting of $85.3 million of depreciation and amortization expense, $55.1 million of interest expense, a $49.7 million provision for credit losses, $13.0 million of general and administrative (“G&A”) expense (which included $2.7 million of severance costs), $4.5 million of stock-based compensation expense, $3.6 million of real estate tax and ground lease expense, $3.2 million of amortized deferred financing costs, and $2.2 million of impairment on real estate properties. Other Income and Expense – Other income for the quarter ended December 31, 2021 totaled $0.3 million, which included $1.0 million of gain on assets sold, which was offset by $0.6 million of other expense and $0.1 million in charges related to the early extinguishment of debt obligations. Funds From Operations – Nareit FFO for the quarter ended December 31, 2021 was $123.5 million, or $0.50 per common share, on 246.9 million weighted-average common shares outstanding, compared to $173.3 million, or $0.73 per common share, on 236.8 million weighted-average common shares outstanding, for the same period in 2020. The $123.5 million of Nareit FFO includes a $16.4 million write-off of straight-line and other non-cash revenue, a $50.6 million non-cash provision for credit losses, $4.5 million of non-cash stock-based compensation expense, $2.7 million of severance costs, and a $0.1 million loss on early extinguishment of debt, which were partially offset by $7.4 million of non-recurring revenue. The $173.3 million of Nareit FFO for the quarter ended December 31, 2020 included a $12.4 million loss on debt extinguishment, $4.4 million of non-cash stock-based compensation expense, $4.4 million in non-cash provision for credit losses, a $2.1 million write-off of straight-line and other non-cash revenue, $2.0 million of acquisition, merger and transition related costs offset by $4.3 million of non-recurring revenue and a $2.0 million recovery on direct financing leases. Adjusted FFO was $190.4 million, or $0.77 per common share, for the quarter ended December 31, 2021, compared to $192.5 million, or $0.81 per common share, for the same quarter in 2020. For further information, see the “Funds From Operations” schedule below and on the Company’s website. 2021 ANNUAL RESULTS Revenues – Revenues for the year ended December 31, 2021 totaled $1.1 billion, which included $48.8 million of straight-line and other non-cash revenue, $19.4 million of non-recurring revenue, and $13.0 million of real estate tax and ground rents, which were partially offset by a $38.8 million write-off of straight-line and other non-cash revenue. Expenses – Expenses for the year ended December 31, 2021 totaled $777.0 million, primarily consisting of $342.0 million of depreciation and amortization expense, $222.3 million of interest expense, a $77.7 million provision for credit losses, $44.7 million of impairment on real estate properties, $41.8 million of G&A expense (which included $2.7 million of severance costs), $21.4 million of stock-based compensation expense, $13.7 million of real estate tax and ground lease expense, and $12.3 million of amortized deferred financing costs. Other Income and Expense – Other income for the year ended December 31, 2021 totaled $130.3 million, which included $161.6 million of gain on assets sold, which was offset by $30.8 million in charges related to the early extinguishment of debt obligations and $1.3 million of other expense. Funds From Operations – Nareit FFO for the year ended December 31, 2021 was $655.2 million, or $2.68 per common share, on 244.3 million weighted-average common shares outstanding, compared to $555.9 million, or $2.36 per common share, on 235.1 million weighted-average common shares outstanding, for the same period in 2020. The $655.2 million of Nareit FFO includes a $38.8 million write-off of straight-line and other non-cash revenue, a $78.6 million non-cash provision for credit losses, $21.4 million of non-cash stock-based compensation expense, $2.7 million of severance costs, and a $30.8 million loss on early extinguishment of debt, which were partially offset by $19.4 million of non-recurring revenue and a $0.7 million recovery on direct financing leases. The $555.9 million of Nareit FFO for the year ended December 31, 2020 included a $146.6 million write-off of straight-line and other non-cash revenue, $38.0 million of non-cash provision for credit losses, $18.8 million of non-cash stock-based compensation expense, $13.3 million of loss on debt extinguishment, $2.0 million of acquisition, merger and transition related costs, a $2.5 million loss on early extinguishment of debt related to an unconsolidated joint venture, a $1.6 provision for uncollectible receivables related to an unconsolidated joint venture, and $0.9 million in severance costs, which were partially offset by $16.2 million of non-recurring revenue and a $3.1 million recovery on direct financing leases. Adjusted FFO was $809.8 million, or $3.31 per common share, for the year ended December 31, 2021, compared to $760.4 million, or $3.23 per common share, for 2020. For further information, see the “Funds From Operations” schedule below and on the Company’s website. FINANCING ACTIVITIES $500 Million Stock Repurchase Program – As previously announced, in January 2022, the Board of Directors authorized a program allowing the repurchase of up to $500 million of Omega’s outstanding common stock through March 2025. The timing and amount of stock repurchases is at the discretion of management; however, management is under no obligation to repurchase any amount of stock. No shares of stock have been repurchased under the program. ATM Program and Dividend Reinvestment and Common Stock Purchase Plan – During the quarter ended December 31, 2021, the Company sold 80 thousand shares of its common stock under its ATM program and its Dividend Reinvestment and Common Stock Purchase Plan. Aggregate gross proceeds from these sales generated $2.3 million in the fourth quarter and $281.8 million year-to-date: At-the-Market Program for 2021 (in thousands, except price per share) Q1 Q2 Q3 Q4 Total Number of shares 1,617 2,497 37 - 4,151 Average price per share $ 37.95 $ 37.00 $ 36.53 $ - $ 37.37 Gross proceeds $ 61,355 $ 92,402 $ 1,354 $ - $ 155,111 Dividend Reinvestment and Common Stock Purchase Plan for 2021 (in thousands, except price per share) Q1 Q2 Q3 Q4 Total Number of shares 416 1,640 1,279 80 3,415 Average price per share $ 37.23 $ 37.69 $ 36.88 $ 28.30 $ 37.11 Gross proceeds $ 15,491 $ 61,795 $ 47,178 $ 2,258 $ 126,722 2022 RECENT AND 2021 FOURTH QUARTER PORTFOLIO ACTIVITY Q1 2022 Portfolio Activity: Operator Collectability – In January 2022, an operator representing 3.5% of Q4 2021 contractual annualized rent and mortgage interest revenue, did not pay its contractual amounts due under its lease agreement. The operator asked for a short-term rent deferral and negotiations with the operator are on-going. Omega holds a $1.0 million letter of credit from this operator. $8 Million Real Estate Acquisition – On January 31, 2022, the Company acquired one care home in the United Kingdom (similar to assisted living facilities in the United States) for approximately $8.2 million. The facility was added to an existing operator’s master lease with an initial cash yield of 8.0% with 2.5% annual escalators. $8 Million Real Estate Acquisition – On January 1, 2022, the Company acquired a Maryland skilled nursing facility (“SNF”) for $8.2 million and amended an operator’s existing lease, with an initial term expiring on December 31, 2032, to include the acquired facility. The incremental base rent for the additional facility in the initial year is $0.8 million and includes annual escalators of 2.5%. Q4 2021 Portfolio Activity: Guardian – Guardian Healthcare (“Guardian”) failed to make contractual rent and interest payments under its lease and mortgage loan agreements from October through December 2021. The Company is currently in negotiations to restructure and amend Guardian’s lease and loan agreements. As part of the restructuring negotiations, on December 30, 2021, the Company acquired 2 SNFs, previously subject to the Guardian mortgage loan, in consideration for a reduction of $8.7 million in the mortgage principal and added the facilities to Guardian’s master lease agreement. As a result of Guardian’s non-payment of contractual rent and interest and the anticipated restructuring plan, in the fourth quarter of 2021, the Company wrote-off $14.0 million of straight-line rent and lease inducements and recorded a $38.2 million provision for credit losses on its $103.8 million Guardian mortgage loan portfolio to reduce the carrying value of the loan to the fair value of the collateral. Gulf Coast – On October 14, 2021, Gulf Coast Health Care (“Gulf Coast”) commenced voluntary cases under Chapter 11 of the United States Bankruptcy Code. In connection with the bankruptcy, the Company entered into a restructuring support agreement with Gulf Coast and has agreed to provide up to $25 million in senior secured debtor-in-possession (“DIP”) financing, subject to certain conditions, to provide liquidity and assist with the transition of operations in the Company’s 23 open facilities. Operations of the 23 open facilities were transitioned to another operator on December 1, 2021. In the fourth quarter of 2021, the Company funded $20.5 million under the DIP facility and simultaneously fully reserved for the loan through a provision for credit losses. In the fourth quarter, the Company recorded $14.8 million of revenue based on Omega’s ability to offset its uncollected contractual rent against the interest and principal of certain debt obligations owed by Omega. $20 Million of Real Estate Investments – In the fourth quarter of 2021, the Company completed approximately $16.4 million in capital renovations and $4.1 million of new construction projects. Asset Sales and Impairments: $8 Million in Asset Sales – In the fourth quarter of 2021, the Company sold 3 facilities for $7.7 million in cash, recognizing a gain of approximately $1.0 million. All of these facilities were previously classified as held for sale. Impairments and Assets Held for Sale – During the fourth quarter of 2021, the Company recorded a $2.2 million net impairment charge to reduce the net book value of one SNF to its estimated fair value. As of December 31, 2021, the Company had 41 facilities classified as assets held for sale, totaling approximately $261.2 million in net book value. In December 2021, the Company entered into an agreement to sell 22 facilities formerly operated by Gulf Coast for gross proceeds of approximately $318 million. The sale is targeted to close on or around April 1, 2022. All of the remaining 19 facilities were under contract as of January 31, 2022. BALANCE SHEET AND LIQUIDITY As of December 31, 2021, the Company had $5.3 billion of outstanding indebtedness with a weighted-average annual interest rate of 4.17%. The Company’s indebtedness consisted of an aggregate principal amount of $4.9 billion of senior unsecured notes, a $50.0 million unsecured term loan, and $362.0 million of secured debt. As of December 31, 2021, total cash and cash equivalents were $20.5 million and the Company had its full $1.45 billion of undrawn capacity on its revolving credit facility. DIVIDENDS On January 27, 2022, the Board of Directors declared a quarterly cash dividend of $0.67 per share, to be paid February 15, 2022, to common stockholders of record as of the close of business on February 7, 2022. TAX TREATMENT FOR 2021 DIVIDENDS On February 16, 2021, May 17, 2021, August 13, 2021 and November 15, 2021, the Company paid dividends to its common stockholders in the per share amounts of $0.67 for stockholders of record on February 8, 2021, May 3, 2021, August 2, 2021 and November 5, 2021, respectively. The Company has determined the tax treatment for the dividends is as follows: Dividend Payment Date % Taxable as Ordinary Income % Taxable as Return of Capital % Taxable as Capital Gain February 16, 2021 74.1422% 21.4776% 4.3802% May 17, 2021 74.1422% 21.4776% 4.3802% August 13, 2021 74.1422% 21.4776% 4.3802% November 15, 2021 74.1422% 21.4776% 4.3802% ESG On January 26, 2022, Omega, for the third consecutive year, was named one of 418 companies across 50 industries included in the Bloomberg Gender-Equality Index (“GEI”). The GEI brings transparency to gender-related practices and policies at publicly listed companies, increasing the breadth of environmental, social and governance data available to investors. The GEI scoring methodology allows investors to assess company performance and compare across industry peer groups. The reference index measures gender equality across five pillars: female leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, sexual harassment policies, and pro-women brand. 2022 GUIDANCE Given the continued uncertainty related to the COVID-19 pandemic, its impact on the financial performance of the Company’s operators and the extent of future necessary government support to the operators, the Company will not be providing 2022 earnings guidance. CONFERENCE CALL The Company will be conducting a conference call on Thursday, February 3, 2022 at 10 a.m. Eastern time to review the Company’s 2021 fourth quarter results and current developments. Analysts and investors within the United States interested in participating are invited to call (877) 511-2891. The Canadian toll-free dial-in number is (855) 669-9657. All other international participants may use the dial-in number (412) 902-4140. Ask the operator to be connected to the “Omega Healthcare’s Fourth Quarter 2021 Earnings Call.” To listen to the conference call via webcast, log on to www.omegahealthcare.com and click the “Omega Healthcare Investors, Inc. 4Q Earnings Call” hyper link under “Upcoming Events” in the Investor Relations section on Omega’s website homepage. Webcast replays of the call will be available on Omega’s website for approximately two weeks following the call. Additionally, a copy of the earnings release will be available in the “Featured Documents” and “Press Releases” sections of Omega’s website. * * * * * * Omega is a real estate investment trust that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the United States, as well as in the United Kingdom. Forward-Looking Statements and Cautionary Language Novel coronavirus (“COVID-19”) data has been provided by our operators. We caution that we have not independently validated facility virus incidence information, it may be reported on an inconsistent basis by our operators, and we can provide no assurance regarding its accuracy or that there have not been any changes since the time the information was obtained from our operators; we also undertake no duty to update this information. This press release includes forward-looking statements within the meaning of the federal securities laws. All statements regarding Omega’s or its tenants’, operators’, borrowers’ or managers’ expected future financial condition, results of operations, cash flows, funds from operations, dividends and dividend plans, financing opportunities and plans, capital markets transactions, business strategy, budgets, projected costs, operating metrics, capital expenditures, competitive positions, acquisitions, investment opportunities, dispositions, facility transitions, growth opportunities, expected lease income, continued qualification as a real estate investment trust (“REIT”), plans and objectives of management for future operations and statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will” and other similar expressions are forward-looking statements. These forward-looking statements are inherently uncertain, and actual results may differ from Omega's expectations. Omega’s actual results may differ materially from those reflected in such forward-looking statements as a result of a variety of factors, including, among other things: (i) uncertainties relating to the business operations of the operators of Omega’s properties, including those relating to reimbursement by third-party payors, regulatory matters and occupancy levels; (ii) the impact of the COVID-19 pandemic on our business and the business of our operators, including without limitation, the extent and duration of the COVID-19 pandemic, increased costs, staffing shortages and decreased occupancy levels experienced by operators of SNFs and assisted living facilities (“ALFs”) in connection therewith, the ability of operators to comply with infection control and vaccine protocols, the long-term impact of vaccinations on facility infection rates, and the extent to which continued government support may be available to operators to offset such costs and the conditions related thereto; (iii) the ability of any of Omega’s operators in bankruptcy to reject unexpired lease obligations, modify the terms of Omega’s mortgages and impede the ability of Omega to collect unpaid rent or interest during the pendency of a bankruptcy proceeding and retain security deposits for the debtor’s obligations, and other costs and uncertainties associated with operator bankruptcies; (iv) Omega’s ability to re-lease, otherwise transition or sell underperforming assets or assets held for sale on a timely basis and on terms that allow Omega to realize the carrying value of these assets; (v) the availability and cost of capital to Omega; (vi) changes in Omega’s credit ratings and the ratings of its debt securities; (vii) competition in the financing of healthcare facilities; (viii) competition in the long-term healthcare industry and shifts in the perception of various types of long-term care facilities, including SNFs and ALFs; (ix) additional regulatory and other changes in the healthcare sector; (x) changes in the financial position of Omega’s operators; (xi) the effect of economic and market conditions generally, and particularly in the healthcare industry; (xii) changes in interest rates; (xiii) the timing, amount and yield of any additional investments; (xiv) changes in tax laws and regulations affecting REITs; (xv) the potential impact of changes in the SNF and ALF market or local real estate conditions on the Company’s ability to dispose of assets held for sale for the anticipated proceeds or on a timely basis, or to redeploy the proceeds therefrom on favorable terms; (xvi) Omega’s ability to maintain its status as a REIT; (xvii) the effect of other factors affecting our business or the businesses of Omega’s operators that are beyond Omega’s or operators’ control, including natural disasters, other health crises or pandemics and governmental action, particularly in the healthcare industry, and (xviii) other factors identified in Omega’s filings with the Securities and Exchange Commission. Statements regarding future events and developments and Omega’s future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward looking statements. We caution you that the foregoing list of important factors may not contain all the material factors that are important to you. Accordingly, readers should not place undue reliance on those statements. All forward-looking statements are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. OMEGA HEALTHCARE INVESTORS, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) December 31, December 31, 2021 2020 (Unaudited) ASSETS Real estate assets Buildings and improvements $ 7,448,126 $ 7,269,596 Land 916,328 883,765 Furniture and equipment 511,271 518,664 Construction in progress 74,062 30,129 Total real estate assets 8,949,787 8,702,154 Less accumulated depreciation (2,160,696 ) (1,996,914 ) Real estate assets – net 6,789,091 6,705,240 Investments in direct financing leases – net 10,873 10,764 Mortgage notes receivable – net 835,086 885,313 7,635,050 7,601,317 Other investments – net 469,884 467,442 Investments in unconsolidated joint ventures 194,687 200,638 Assets held for sale 261,151 81,452 Total investments 8,560,772 8,350,849 Cash and cash equivalents 20,534 163,535 Restricted cash 3,877 4,023 Contractual receivables – net 11,259 10,408 Other receivables and lease inducements 251,815 234,666 Goodwill 651,417 651,737 Other assets 138,804 82,231 Total assets $ 9,638,478 $ 9,497,449 LIABILITIES AND EQUITY Revolving credit facility $ — $ 101,158 Secured borrowings 362,081 369,524 Senior notes and other unsecured borrowings – net 4,891,455 4,698,570 Accrued expenses and other liabilities 268,516 280,824 Deferred income taxes 8,200 10,766 Total liabilities 5,530,252 5,460,842 Equity: Preferred stock $1.00 par value authorized – 20,000 shares, issued and outstanding – none — — Common stock $.10 par value authorized – 350,000 shares, issued and outstanding – 239,061 shares as of December 31, 2021 and 231,199 shares as of December 31, 2020 23,906 23,119 Additional paid-in capital 6,427,566 6,152,887 Cumulative net earnings 3,011,474 2,594,735 Cumulative dividends paid (5,553,908 ) (4,916,097 ) Accumulated other comprehensive loss (2,200 ) (12,768 ) Total stockholders’ equity 3,906,838 3,841,876 Noncontrolling interest 201,388 194,731 Total equity 4,108,226 4,036,607 Total liabilities and equity $ 9,638,478 $ 9,497,449 OMEGA HEALTHCARE INVESTORS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited (in thousands, except per share amounts) Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 Revenues Rental income $ 214,314 $ 224,080 $ 910,722 $ 740,815 Real estate tax and ground lease income 3,483 3,089 12,955 12,612 Income from direct financing leases 257 258 1,029 1,033 Mortgage interest income 20,968 24,044 91,661 89,422 Other investment income 10,476 11,994 44,721 44,864 Miscellaneous income 451 320 1,721 3,635 Total revenues 249,949 263,785 1,062,809 892,381 Expenses Depreciation and amortization 85,269 82,623 342,014 329,924 General and administrative 13,036 10,381 41,757 39,619 Real estate tax and ground lease expense 3,624 3,230 13,716 13,764 Stock-based compensation expense 4,502 4,442 21,415 18,822 Acquisition, merger and transition related costs — 1,956 1,814 2,018 Impairment on real estate properties 2,205 28,762 44,658 72,494 Recovery on direct financing leases — (2,003 ) (717 ) (3,079 ) Provision for credit losses 49,710 4,420 77,733 37,997 Interest expense 55,062 55,981 222,316 213,313 Interest – amortization of deferred financing costs 3,163 2,692 12,288 10,076 Total expenses 216,571 192,484 776,994 734,948 Other income (expense) Other expense – net (632 ) (282 ) (1,298 ) (957 ) Loss on debt extinguishment (56 ) (12,444 ) (30,763 ) (13,340 ) Realized gain on foreign exchange 47 128 717 78 Gain on assets sold – net 975 5,181 161,609 19,113 Total other income (expense) 334 (7,417 ) 130,265 4,894 Income before income tax expense and income from unconsolidated joint ventures 33,712 63,884 416,080 162,327 Income tax expense (967 ) (2,299 ) (3,840 ) (4,925 ) Income from unconsolidated joint ventures 1,493 1,489 16,062 6,143 Net income 34,238 63,074 428,302 163,545 Net income attributable to noncontrolling interest (947 ) (1,678 ) (11,563 ) (4,218 ) Net income available to common stockholders $ 33,291 $ 61,396 $ 416,739 $ 159,327 Earnings per common share available to common stockholders: Basic: Net income available to common stockholders $ 0.14 $ 0.27 $ 1.76 $ 0.70 Diluted: Net income $ 0.14 $ 0.27 $ 1.75 $ 0.70 Dividends declared per common share $ 0.67 $ 0.67 $ 2.68 $ 2.68 OMEGA HEALTHCARE INVESTORS, INC. FUNDS FROM OPERATIONS Unaudited (in thousands, except per share amounts) Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 Net income (1)(2) $ 34,238 $ 63,074 $ 428,302 $ 163,545 Deduct gain from real estate dispositions (975 ) (5,181 ) (161,609 ) (19,113 ) (Deduct gain) add back loss from real estate dispositions of unconsolidated joint ventures (135 ) 544 (14,880 ) (5,894 ) Sub-total 33,128 58,437 251,813 138,538 Elimination of non-cash items included in net income: Depreciation and amortization 85,269 82,623 342,014 329,924 Depreciation - unconsolidated joint ventures 2,906 3,439 12,285 14,000 Add back provision for impairments on real estate properties 2,205 28,762 44,658 72,494 Add back provision for impairments on real estate properties of unconsolidated joint ventures — — 4,430 — Add back unrealized loss on warrants — 61 43 988 Nareit funds from operations (“Nareit FFO”) $ 123,508 $ 173,322 $ 655,243 $ 555,944 Weighted-average common shares outstanding, basic 239,649 228,785 236,933 227,741 Restricted stock and PRSUs 430 1,761 785 1,239 Omega OP Units 6,837 6,263 6,620 6,124 Weighted-average common shares outstanding, diluted 246,916 236,809 244,338 235,104 Nareit funds from operations available per share $ 0.50 $ 0.73 $ 2.68 $ 2.36 Adjustments to calculate adjusted funds from operations: Nareit FFO $ 123,508 $ 173,322 $ 655,243 $ 555,944 Add back: Uncollectible accounts receivable (3) 16,449 2,107 38,806 146,608 Non-cash provision for credit losses 50,582 4,420 78,605 37,997 Stock-based compensation expense 4,502 4,442 21,415 18,822 Loss on debt extinguishment 56 12,444 30,763 13,340 Acquisition, merger and transition related costs — 1,956 1,814 2,018 Severance 2,721 — 2,721 853 Deduct: Non-recurring revenue (7,436 ) (4,260 ) (19,350 ) (16,201 ) Recovery on direct financing leases — (2,003 ) (717 ) (3,079 ) Add back unconsolidated joint venture related: Uncollectible accounts receivable (3) — — — 1,584 Loss on debt extinguishment — 68 457 2,493 Adjusted funds from operations (“AFFO”) (1)(2) $ 190,382 $ 192,496 $ 809,757 $ 760,379 Adjustments to calculate funds available for distribution: Non-cash interest expense $ 2,114 $ 2,670 $ 8,266 $ 9,986 Capitalized interest (720 ) (321 ) (1,524 ) (10,029 ) Non-cash revenue (13,000 ) (11,923 ) (48,751 ) (40,709 ) Funds available for distribution (“FAD”) (1)(2) $ 178,776 $ 182,922 $ 767,748 $ 719,627 _______________ (1) The three months and year ended December 31, 2021, includes the application of $0.1 million and $11.8 million, respectively, of Agemo and Gulf Coast security deposits (letter of credit and cash deposits) in revenue. (2) The three months and year ended December 31, 2021, includes $14.8 million and $21.3 million, respectively, of revenue related to Gulf Coast recognized based on the Company’s ability to offset uncollected rent against the interest and principal of certain debt obligations owed by Omega; however, AFFO and FAD includes only $7.4 million and $13.9 million, respectively. (3) Straight-line accounts receivable write-off recorded as a reduction to rental income. Nareit Funds From Operations (“Nareit FFO”), Adjusted FFO and Funds Available for Distribution (“FAD”) are non-GAAP financial measures. For purposes of the Securities and Exchange Commission’s Regulation G, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that exclude amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable financial measure calculated and presented in accordance with GAAP in the income statement, balance sheet or statement of cash flows (or equivalent statements) of the company, or include amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable financial measure so calculated and presented. As used in this press release, GAAP refers to generally accepted accounting principles in the United States of America. Pursuant to the requirements of Regulation G, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. The Company calculates and reports Nareit FFO in accordance with the definition and interpretive guidelines issued by the National Association of Real Estate Investment Trusts (“Nareit”), and consequently, Nareit FFO is defined as net income (computed in accordance with GAAP), adjusted for the effects of asset dispositions and certain non-cash items, primarily depreciation and amortization and impairments on real estate assets, and after adjustments for unconsolidated partnerships and joint ventures and changes in the fair value of warrants. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis. Revenue recognized based on the application of security deposits and letters of credit or based on the ability to offset against other financial instruments is included within Nareit FFO. The Company believes that Nareit FFO, Adjusted FFO and FAD are important supplemental measures of its operating performance. Because the historical cost accounting convention used for real estate assets requires depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time, while real estate values instead have historically risen or fallen with market conditions. The term funds from operations was designed by the real estate industry to address this issue. Funds from operations described herein is not necessarily comparable to funds from operations of other real estate investment trusts, or REITs, that do not use the same definition or implementation guidelines or interpret the standards differently from the Company. Adjusted FFO is calculated as Nareit FFO excluding the impact of non-cash stock-based compensation and certain revenue and expense items (e.g., acquisition, merger and transition related costs, write-off of straight-line accounts receivable, recoveries and provisions for credit losses (excluding certain cash recoveries on impaired loans), severance, etc.). FAD is calculated as Adjusted FFO less non-cash interest expense and non-cash revenue, such as straight-line rent. The Company believes these measures provide an enhanced measure of the operating performance of the Company’s core portfolio as a REIT. The Company’s computation of Adjusted FFO and FAD may not be comparable to the Nareit definition of funds from operations or to similar measures reported by other REITs, but the Company believes that they are appropriate measures for this Company. The Company uses these non-GAAP measures among the criteria to measure the operating performance of its business. The Company also uses FAD among the performance metrics for performance-based compensation of officers. The Company further believes that by excluding the effect of depreciation, amortization, impairments on real estate assets and gains or losses from sales of real estate, all of which are based on historical costs, and which may be of limited relevance in evaluating current performance, funds from operations can facilitate comparisons of operating performance between periods and between other REITs. The Company offers these measures to assist the users of its financial statements in analyzing its operating performance and not as measures of liquidity or cash flow. These non-GAAP measures are not measures of financial performance under GAAP and should not be considered as measures of liquidity, alternatives to net income or indicators of any other performance measure determined in accordance with GAAP. Investors and potential investors in the Company’s securities should not rely on these non-GAAP measures as substitutes for any GAAP measure, including net income. The following tables present selected portfolio information, including operator and geographic concentrations, and lease and loan maturities: As of December 31, 2021 Total # of # of Balance Sheet Data Total # of Investment % of Operating Operating Facilities ($000’s) Investment Facilities (2) Beds (2) Real estate investments (1) 856 $ 8,960,660 91 % 880 89,216 Mortgage notes receivable 63 835,086 9 % 59 6,487 919 $ 9,795,746 100 % 939 95,703 Assets held for sale 41 261,151 Total investments 960 $ 10,056,897 As of December 31, 2021 Total # of # of Investment Investment Data Total # of Investment % of Operating Operating per Bed Facilities ($000’s) Investment Facilities (2) Beds (2) ($000’s) SNFs/Transitional care (1) 764 $ 7,527,240 77 % 784 84,623 $ 89 Senior housing (3) 155 2,268,506 23 % 155 11,080 $ 205 919 $ 9,795,746 100 % 939 95,703 $ 102 Assets held for sale 41 261,151 Total investments 960 $ 10,056,897 _______________ (1) Includes one facility under a direct financing lease totaling $10.9 million. (2) Excludes facilities which are non-operating, closed and/or not currently providing patient services. (3) Includes ALFs, memory care and independent living facilities. Revenue by Investment Type (000's) Three Months Ended Year Ended December 31, 2021 December 31, 2021 Rental property $ 214,571 85.8 % $ 911,751 85.8 % Real estate tax and ground lease income 3,483 1.4 % 12,955 1.2 % Mortgage notes 20,968 8.4 % 91,661 8.6 % Other investment income and miscellaneous income - net 10,927 4.4 % 46,442 4.4 % $ 249,949 100 % $ 1,062,809 100 % Revenue by Facility Type (000's) Three Months Ended Year Ended December 31, 2021 December 31, 2021 SNFs/Transitional care $ 187,054 74.8 % $ 815,002 76.7 % Senior housing 48,485 19.4 % 188,410 17.7 % Real estate tax and ground lease income 3,483 1.4 % 12,955 1.2 % Other 10,927 4.4 % 46,442 4.4 % $ 249,949 100 % $ 1,062,809 100 % As of 2021 Q4 % of Total December 31, 2021 Annualized Annualized Rent/Interest Concentration by Operator ($000’s) # of Contractual Contractual Facilities (1) Rent/Interest (1)(2) Rent/Interest Ciena 62 $ 97,432 10.0 % Consulate 85 95,632 9.8 % Maplewood 17 66,751 6.8 % Communicare 43 64,403 6.6 % Genesis 44 56,839 5.8 % Agemo 51 53,307 5.5 % Saber 50 53,053 5.4 % Brookdale 24 44,781 4.6 % HHC 44 38,139 3.9 % Guardian 35 37,174 3.8 % Remaining Operators (3) 460 369,975 37.8 % 915 $ 977,486 100.0 % ______________ (1) Excludes facilities which are non-operating, closed and/or not currently providing patient services. (2) Includes mezzanine and term loan interest. (3) Excludes 23 open facilities and 1 closed facility related to the Gulf Coast bankruptcy (declared in October 2021) and one multi-tenant medical office building. As of December 31, 2021 Geographic Concentration by Investment ($000’s) Total # of Total % of Total Facilities (1) Investment (1)(2) Investment Florida 115 $ 1,320,017 13.4 % Texas 114 995,386 10.1 % Michigan 46 648,738 6.6 % Indiana 70 643,640 6.5 % California 52 577,267 5.9 % Ohio 46 576,809 5.8 % Pennsylvania 54 554,741 5.6 % Virginia 28 422,024 4.3 % New York 1 336,069 3.4 % North Carolina 39 327,784 3.3 % Remaining 32 states 295 3,014,923 30.6 % 860 9,417,398 95.5 % United Kingdom 59 447,574 4.5 % 919 $ 9,864,972 100.0 % _______________ (1) Excludes 41 facilities with total investment of approximately $261.2 million classified as assets held for sale. (2) Excludes $69.2 million of allowance for credit losses. As of December 31, 2021 Operating Lease Expirations & Loan Maturities ($000's) (1) Lease (Rent) Interest Income Lease (Rent) and Interest Income % of Total Annualized Contractual Rent/Interest 2022 $ — $ 35 $ 35 0.0 % 2023 3,787 526 4,313 0.4 % 2024 4,130 7,388 11,518 1.2 % 2025 5,109 5,265 10,374 1.1 % 2026 41,178 — 41,178 4.2 % _______________ (1) Based on annualized 4th quarter 2021 contractual rent and interest. The following tables present operator revenue mix, census and coverage data based on information provided by our operators for the indicated periods. We have not independently verified this information, and we are providing this data for informational purposes only. Operator Revenue Mix (1) Medicare / Private / Medicaid Insurance Other Three-months ended September 30, 2021 53.1 % 33.3 % 13.6 % Three-months ended June 30, 2021 53.2 % 33.5 % 13.3 % Three-months ended March 31, 2021 50.6 % 38.2 % 11.2 % Three-months ended December 31, 2020 51.0 % 38.1 % 10.9 % Three-months ended September 30, 2020 51.6 % 37.2 % 11.2 % _______________ (1) Excludes all facilities considered non-core and does not include federal stimulus revenue. Coverage Data Before After Occupancy (2) Management Management Operator Census and Coverage (1) Fees (3) Fees (4) Twelve-months ended September 30, 2021 74.2 % 1.52x 1.18x Twelve-months ended June 30, 2021 74.2 % 1.63x 1.28x Twelve-months ended March 31, 2021 75.3 % 1.80x 1.44x Twelve-months ended December 31, 2020 78.1 % 1.86x 1.50x Twelve-months ended September 30, 2020 80.1 % 1.87x 1.51x _______________ (1) Excludes facilities considered non-core. (2) Based on available (operating) beds. (3) Represents EBITDARM of our operators, defined as earnings before interest, taxes, depreciation, amortization, Rent expense and management fees for the applicable period, divided by the total Rent payable to the Company by its operators during such period. “Rent” refers to the total monthly rent and mortgage interest due under the Company’s lease and mortgage agreements over the applicable period. (4) Represents EBITDAR of our operators, defined as earnings before interest, taxes, depreciation, amortization, and Rent (as defined in footnote 3) expense for the applicable period, divided by the total Rent payable to the Company by its operators during such period. Assumes a management fee of 4%. The following table presents a debt maturity schedule as of December 31, 2021: Unsecured Debt Debt Maturities ($000’s) Revolving Credit Facility and OP Term Loan (1) Senior Notes (1) Secured Debt Total Debt Maturities 2022 $ — $ — $ 2,275 $ 2,275 2023 — 350,000 — 350,000 2024 — 400,000 — 400,000 2025 50,000 400,000 — 450,000 2026 — 600,000 — 600,000 2027 — 700,000 — 700,000 Thereafter — 2,450,000 359,806 2,809,806 $ 50,000 $ 4,900,000 $ 362,081 $ 5,312,081 _______________ (1) Excludes issuance and deferred financing costs. The following table presents real estate investment activity: Three Months Ended Year Ended Real Estate Investment Activity ($000's) December 31, 2021 December 31, 2021 $ Amount % $ Amount % Real property $ — — % $ 604,121 71.8 % Construction-in-progress 4,133 20.2 % 113,180 13.5 % Capital expenditures 16,351 79.8 % 51,138 6.1 % Mortgages — — % 72,420 8.6 % Other — — % — — % Total $ 20,484 100.0 % $ 840,859 100.0 % View source version on businesswire.com: https://www.businesswire.com/news/home/20220202005880/en/
Matthew Gourmand, SVP, Corporate Strategy & Investor Relations or Bob Stephenson, CFO at (410) 427-1700