Omega Reports Fourth Quarter and Full Year 2023 Results
Completed
Providing 2024 Adjusted FFO Guidance
FOURTH QUARTER 2023 AND RECENT HIGHLIGHTS
-
Net income for the quarter of
$57 million , or$0.22 per common share, compared to$47 million , or$0.19 per common share, for Q4 2022. -
Nareit Funds From Operations (“Nareit FFO”) of
$129 million , or$0.50 per common share, on 257 million weighted-average common shares outstanding, compared to a loss of($30) million , or ($0.13 ) per common share, on 243 million weighted-average common shares outstanding, for Q4 2022. -
Adjusted Funds From Operations (“Adjusted FFO” or “AFFO”) of
$173 million , or$0.68 per common share, compared to$177 million , or$0.73 per common share, for Q4 2022. -
Funds Available for Distribution (“FAD”) of
$163 million , or$0.64 per common share, compared to FAD of$171 million , or$0.70 per common share, for Q4 2022. -
$249 million in new investments consisting of$167 million in real estate loans and other loans and investments,$51 million in real estate acquisitions and$31 million in capital renovation and construction projects. -
Sold 32 facilities for
$324 million in cash proceeds and debt repayments, generating a$10 million gain. -
Repaid
$227 million on 25 HUD mortgage loans related to facility sales and transitions. -
Completed
$27 million in new real estate loans in Q1 2024 to date.
FULL YEAR 2023 HIGHLIGHTS
-
Net income for 2023 of
$249 million , or$1.00 per common share, compared to$439 million , or$1.80 per common share, in 2022. -
Nareit FFO of
$591 million , or$2.36 per common share, on 250 million weighted-average common shares outstanding, compared to$461 million , or$1.89 per common share, on 244 million weighted-average common shares outstanding, in 2022. -
AFFO of
$699 million , or$2.79 per common share, compared to$730 million , or$2.99 per common share, in 2022. -
FAD of
$657 million , or$2.62 per common share, compared to FAD of$678 million , or$2.77 per common share, in 2022. -
$667 million in new investments consisting of$322 million in real estate loans and other loans and investments,$261 million in real estate acquisitions and$84 million in capital renovation and construction projects. -
Sold 69 facilities for
$485 million in consideration, and received repayment of a$105 million seller note, generating an$80 million gain on assets sold. -
Entered into a
$429 million unsecured term loan. -
Repaid
$350 million of senior unsecured notes dueAugust 1, 2023 . -
Repaid
$296 million on 32 HUD mortgage loans related to facility sales and transitions. -
Issued 11 million common shares for gross proceeds of
$339 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 (“REITs”). Reconciliations and further information regarding these non-GAAP measures are provided at the end of this press release.
CEO COMMENTS
FOURTH QUARTER 2023 RESULTS
Revenues
– Revenues for the quarter ended
Expenses
– Expenses for the quarter ended
Other Income and Expense
– Other income for the quarter ended
Net Income
– Net income for the quarter ended
2023 ANNUAL RESULTS
Revenues
– Revenues for the year ended
Expenses
– Expenses for the year ended
Other Income and Expense
– Other income for the year ended
Net Income
– Net income for the year ended
2023 FOURTH QUARTER PORTFOLIO AND RECENT ACTIVITY
Operator Updates:
LaVie
– During the fourth quarter, the Company sold 30 facilities that were leased to
Maplewood
– The Company recorded
Guardian
–
New Investments:
The following table presents investment activity:
|
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|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||||||
Investment Activity ( |
|
|
|
|
||||||||
|
|
$ Amount |
|
% |
|
$ Amount |
|
% |
||||
Real property |
|
$ |
51,212 |
|
20.6 |
% |
|
$ |
261,276 |
|
39.2 |
% |
Construction-in-progress |
|
|
15,429 |
|
6.2 |
% |
|
|
46,905 |
|
7.0 |
% |
Capital expenditures |
|
|
14,893 |
|
6.0 |
% |
|
|
36,439 |
|
5.5 |
% |
Real estate loans receivable |
|
|
117,277 |
|
47.1 |
% |
|
|
230,749 |
|
34.6 |
% |
Other |
|
|
50,000 |
|
20.1 |
% |
|
|
91,746 |
|
13.7 |
% |
Total |
|
$ |
248,811 |
|
100.0 |
% |
|
$ |
667,115 |
|
100.0 |
% |
Asset Sales and Impairments:
Impairments and Assets Held for Sale
– During the fourth quarter of 2023, the Company recorded a
As of
OPERATOR COVERAGE DATA
The following tables present operator revenue mix, census and coverage data based on information provided by the Company’s operators for the indicated periods. The Company has not independently verified this information, and it is providing this data for informational purposes only.
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Operator Revenue Mix (1) |
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|
Medicare / |
Private / |
||
|
|
Medicaid |
Insurance |
Other |
|||
Three-months ended |
|
55.5 |
% |
28.0 |
% |
16.5 |
% |
Three-months ended |
|
54.0 |
% |
30.0 |
% |
16.0 |
% |
Three-months ended |
|
53.0 |
% |
31.8 |
% |
15.2 |
% |
Three-months ended |
|
54.3 |
% |
31.4 |
% |
14.3 |
% |
Three-months ended |
|
53.4 |
% |
31.5 |
% |
15.1 |
% |
(1) |
Excludes all facilities considered non-core and does not include federal stimulus revenue. For non-core definition, see Fourth Quarter 2023 Financial Supplemental posted in the “Quarterly Supplements” section of Omega’s website.. |
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|
Coverage Data |
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|
|
Before |
After |
|
|
|
Occupancy (2) |
Management |
Management |
|
Operator Census and Coverage (1) |
|
|
Fees (3) |
Fees (4) |
|
Twelve-months ended |
|
79.1 |
% |
1.63x |
1.28x |
Twelve-months ended |
|
78.6 |
% |
1.50x |
1.15x |
Twelve-months ended |
|
78.0 |
% |
1.44x |
1.10x |
Twelve-months ended |
|
77.0 |
% |
1.38x |
1.04x |
Twelve-months ended |
|
76.2 |
% |
1.37x |
1.04x |
(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 costs 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 contractual 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%. |
FINANCING ACTIVITIES
Dividend Reinvestment and Common Stock Purchase Plan and ATM Program
– The following is a summary of the 2023 quarterly common shares issued under the Dividend Reinvestment and Common Stock Purchase Plan and ATM Program through
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|
|
Dividend Reinvestment and Common Stock Purchase Plan for 2023 |
|||||||||||||
|
(in thousands, except price per share) |
|||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Total |
|||||
Number of shares |
|
82 |
|
|
77 |
|
|
3,529 |
|
|
27 |
|
|
3,715 |
Average price per share |
$ |
27.88 |
|
$ |
29.30 |
|
$ |
31.70 |
|
$ |
31.39 |
|
$ |
31.57 |
Gross proceeds |
$ |
2,278 |
|
$ |
2,252 |
|
$ |
111,895 |
|
$ |
834 |
|
$ |
117,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATM Program for 2023 |
|||||||||||||
|
(in thousands, except price per share) |
|||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Total |
|||||
Number of shares |
|
— |
|
|
6,529 |
|
|
466 |
|
|
248 |
|
|
7,243 |
Average price per share |
$ |
— |
|
$ |
30.54 |
|
$ |
30.95 |
|
$ |
31.93 |
|
$ |
30.61 |
Gross proceeds |
$ |
— |
|
$ |
199,397 |
|
$ |
14,400 |
|
$ |
7,935 |
|
$ |
221,732 |
BALANCE SHEET AND LIQUIDITY
As of
DIVIDENDS
On
2024 GUIDANCE
The Company expects its 2024 Adjusted FFO to be between
The Company’s Adjusted FFO guidance for 2024 includes the annual impact of acquisitions completed in 2023 and year-to-date 2024, assumes quarterly G&A expense of approximately
The Company's guidance is based on several assumptions including those noted above, which are subject to change and many of which are outside the Company’s control. If actual results vary from these assumptions, the Company's expectations may change. Without limiting the generality of the foregoing, the timing of collection of rental obligations from operators on a cash basis, the timing and completion of acquisitions, divestitures, and capital and financing transactions may cause actual results to vary materially from our current expectations. There can be no assurance that the Company will achieve its projected results. The Company may, from time to time, update its publicly announced Adjusted FFO guidance, but it is not obligated to do so.
The Company does not provide a reconciliation for its Adjusted FFO guidance to GAAP net income because it is unable to determine meaningful or accurate estimates of reconciling items without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amounts of various items that would impact future net income. This includes, but is not limited to, changes in the provision for credit losses, real estate impairments, acquisition, merger and transition related costs, straight-line write-offs, gain/loss on assets sold, etc. In particular, the Company is unable to predict with reasonable certainty the amount of the change in the provision for credit losses in future periods, which is often a significant reconciling adjustment.
ADDITIONAL INFORMATION
Additional information regarding the Company can be found in its Fourth Quarter 2023 Financial Supplemental posted under “Financial Info” in the Investors section of Omega’s website. The information contained on, or that may be accessed through, Omega’s website, including the information contained in the aforementioned supplemental, is not incorporated by any reference into, and is not part of, this document.
CONFERENCE CALL
The Company will be conducting a conference call on
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 on the “Investors” page of Omega’s website. Webcast replays of the call will be available on Omega’s website for a minimum of two weeks following the call. Additionally, a copy of the earnings release will be available in the “Financial Info” section and “SEC Filings” section on the “Investors” page of Omega’s website.
Omega is a REIT 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
Forward-Looking Statements and Cautionary Language
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 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 long-term impacts of the Novel coronavirus (“COVID-19”) pandemic on our business and the business of our operators, including without limitation, the levels of staffing shortages, increased costs and decreased occupancy experienced by operators of skilled nursing facilities (“SNFs”) and assisted living facilities (“ALFs”) arising from the pandemic, the ability of our operators to comply with infection control and vaccine protocols and to manage facility infection rates or future infectious diseases, and the sufficiency of government support and reimbursement rates to offset such costs and the conditions related thereto; (iii) additional regulatory and other changes in the healthcare sector, including federal minimum staffing requirements for SNFs that may further exacerbate labor and occupancy challenges for Omega’s operators; (iv) 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; (v) 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; (vi) the availability and cost of capital to Omega; (vii) changes in Omega’s credit ratings and the ratings of its debt securities; (viii) competition in the financing of healthcare facilities; (ix) competition in the long-term healthcare industry and shifts in the perception of various types of long-term care facilities, including SNFs and ALFs; (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 or the impact of inflation; (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
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.
|
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CONSOLIDATED BALANCE SHEETS |
||||||||
(in thousands, except per share amounts) |
||||||||
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|
|
||
|
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|
|
|
||||
|
|
2023 |
|
|
2022 |
|
||
|
|
(Unaudited) |
|
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|
|||
ASSETS |
|
|
|
|
|
|
||
Real estate assets |
|
|
|
|
|
|
||
Buildings and improvements |
|
$ |
6,863,177 |
|
|
$ |
7,347,853 |
|
Land |
|
|
866,866 |
|
|
|
923,605 |
|
Furniture and equipment |
|
|
466,291 |
|
|
|
499,902 |
|
Construction in progress |
|
|
138,410 |
|
|
|
88,904 |
|
Total real estate assets |
|
|
8,334,744 |
|
|
|
8,860,264 |
|
Less accumulated depreciation |
|
|
(2,458,809 |
) |
|
|
(2,322,773 |
) |
Real estate assets – net |
|
|
5,875,935 |
|
|
|
6,537,491 |
|
Investments in direct financing leases – net |
|
|
8,716 |
|
|
|
8,503 |
|
Real estate loans receivable – net |
|
|
1,212,162 |
|
|
|
1,042,731 |
|
Investments in unconsolidated joint ventures |
|
|
188,409 |
|
|
|
178,920 |
|
Assets held for sale |
|
|
93,707 |
|
|
|
9,456 |
|
Total real estate investments |
|
|
7,378,929 |
|
|
|
7,777,101 |
|
Non-real estate loans receivable – net |
|
|
275,615 |
|
|
|
225,281 |
|
Total investments |
|
|
7,654,544 |
|
|
|
8,002,382 |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
442,810 |
|
|
|
297,103 |
|
Restricted cash |
|
|
1,920 |
|
|
|
3,541 |
|
Contractual receivables – net |
|
|
11,888 |
|
|
|
8,228 |
|
Other receivables and lease inducements |
|
|
214,657 |
|
|
|
177,798 |
|
|
|
|
643,897 |
|
|
|
643,151 |
|
Other assets |
|
|
147,686 |
|
|
|
272,960 |
|
Total assets |
|
$ |
9,117,402 |
|
|
$ |
9,405,163 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Revolving credit facility |
|
$ |
20,397 |
|
|
$ |
19,246 |
|
Secured borrowings |
|
|
61,963 |
|
|
|
366,596 |
|
Senior notes and other unsecured borrowings – net |
|
|
4,984,956 |
|
|
|
4,900,992 |
|
Accrued expenses and other liabilities |
|
|
287,795 |
|
|
|
315,047 |
|
Total liabilities |
|
|
5,355,111 |
|
|
|
5,601,881 |
|
|
|
|
|
|
|
|
||
Preferred stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
24,528 |
|
|
|
23,425 |
|
Additional paid-in capital |
|
|
6,671,198 |
|
|
|
6,314,203 |
|
Cumulative net earnings |
|
|
3,680,581 |
|
|
|
3,438,401 |
|
Cumulative dividends paid |
|
|
(6,831,061 |
) |
|
|
(6,186,986 |
) |
Accumulated other comprehensive income |
|
|
29,338 |
|
|
|
20,325 |
|
Total stockholders’ equity |
|
|
3,574,584 |
|
|
|
3,609,368 |
|
Noncontrolling interest |
|
|
187,707 |
|
|
|
193,914 |
|
Total equity |
|
|
3,762,291 |
|
|
|
3,803,282 |
|
Total liabilities and equity |
|
$ |
9,117,402 |
|
|
$ |
9,405,163 |
|
|
|||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||||
Unaudited |
|||||||||||||||||
(in thousands, except per share amounts) |
|||||||||||||||||
|
|||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Rental income |
|
$ |
203,998 |
|
|
$ |
110,149 |
|
|
|
$ |
810,017 |
|
|
$ |
734,236 |
|
Real estate tax and ground lease income |
|
|
3,256 |
|
|
|
4,159 |
|
|
|
|
15,363 |
|
|
|
15,972 |
|
Income from direct financing leases |
|
|
252 |
|
|
|
255 |
|
|
|
|
1,014 |
|
|
|
1,023 |
|
Real estate loans interest income |
|
|
25,492 |
|
|
|
24,955 |
|
|
|
|
97,766 |
|
|
|
110,322 |
|
Non-real estate loans interest income |
|
|
6,121 |
|
|
|
5,103 |
|
|
|
|
22,122 |
|
|
|
13,597 |
|
Miscellaneous income |
|
|
200 |
|
|
|
228 |
|
|
|
|
3,458 |
|
|
|
3,094 |
|
Total revenues |
|
|
239,319 |
|
|
|
144,849 |
|
|
|
|
949,740 |
|
|
|
878,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
75,674 |
|
|
|
83,739 |
|
|
|
|
319,682 |
|
|
|
332,407 |
|
General and administrative |
|
|
9,273 |
|
|
|
8,840 |
|
|
|
|
44,572 |
|
|
|
40,626 |
|
Real estate tax and ground lease expense |
|
|
3,709 |
|
|
|
4,373 |
|
|
|
|
16,889 |
|
|
|
16,969 |
|
Stock-based compensation expense |
|
|
8,762 |
|
|
|
6,787 |
|
|
|
|
35,068 |
|
|
|
27,302 |
|
Acquisition, merger and transition related costs |
|
|
4,158 |
|
|
|
36,348 |
|
|
|
|
5,341 |
|
|
|
42,006 |
|
Impairment on real estate properties |
|
|
3,951 |
|
|
|
17,230 |
|
|
|
|
91,943 |
|
|
|
38,451 |
|
Provision for credit losses |
|
|
32,913 |
|
|
|
64,296 |
|
|
|
|
44,556 |
|
|
|
68,663 |
|
Interest expense |
|
|
55,724 |
|
|
|
55,238 |
|
|
|
|
221,832 |
|
|
|
220,296 |
|
Interest – amortization of deferred financing costs |
|
|
3,705 |
|
|
|
3,251 |
|
|
|
|
13,697 |
|
|
|
12,948 |
|
Total expenses |
|
|
197,869 |
|
|
|
280,102 |
|
|
|
|
793,580 |
|
|
|
799,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income (expense) – net |
|
|
11,146 |
|
|
|
3,041 |
|
|
|
|
20,297 |
|
|
|
(1,997 |
) |
Loss on debt extinguishment |
|
|
(486 |
) |
|
|
— |
|
|
|
|
(492 |
) |
|
|
(389 |
) |
Gain on assets sold – net |
|
|
9,712 |
|
|
|
180,205 |
|
|
|
|
79,668 |
|
|
|
359,951 |
|
Total other income |
|
|
20,372 |
|
|
|
183,246 |
|
|
|
|
99,473 |
|
|
|
357,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income before income tax expense and (loss) income from unconsolidated joint ventures |
|
|
61,822 |
|
|
|
47,993 |
|
|
|
|
255,633 |
|
|
|
436,141 |
|
Income tax expense |
|
|
(4,163 |
) |
|
|
(1,026 |
) |
|
|
|
(6,255 |
) |
|
|
(4,561 |
) |
(Loss) income from unconsolidated joint ventures |
|
|
(1,137 |
) |
|
|
(261 |
) |
|
|
|
(582 |
) |
|
|
7,261 |
|
Net income |
|
|
56,522 |
|
|
|
46,706 |
|
|
|
|
248,796 |
|
|
|
438,841 |
|
Net income attributable to noncontrolling interest |
|
|
(1,521 |
) |
|
|
(1,127 |
) |
|
|
|
(6,616 |
) |
|
|
(11,914 |
) |
Net income available to common stockholders |
|
$ |
55,001 |
|
|
$ |
45,579 |
|
|
|
$ |
242,180 |
|
|
$ |
426,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per common share available to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income available to common stockholders |
|
$ |
0.22 |
|
|
$ |
0.19 |
|
|
|
$ |
1.01 |
|
|
$ |
1.81 |
|
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income available to common stockholders |
|
$ |
0.22 |
|
|
$ |
0.19 |
|
|
|
$ |
1.00 |
|
|
$ |
1.80 |
|
Dividends declared per common share |
|
$ |
0.67 |
|
|
$ |
0.67 |
|
|
|
$ |
2.68 |
|
|
$ |
2.68 |
|
|
||||||||||||||||
Nareit FFO, Adjusted FFO and FAD Reconciliation |
||||||||||||||||
Unaudited |
||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (1) |
|
$ |
56,522 |
|
|
$ |
46,706 |
|
|
$ |
248,796 |
|
|
$ |
438,841 |
|
Deduct gain from real estate dispositions |
|
|
(9,712 |
) |
|
|
(180,205 |
) |
|
|
(79,668 |
) |
|
|
(359,951 |
) |
Deduct gain from real estate dispositions of unconsolidated joint ventures |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(93 |
) |
Sub-total |
|
|
46,810 |
|
|
|
(133,499 |
) |
|
|
169,128 |
|
|
|
78,797 |
|
Elimination of non-cash items included in net income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
75,674 |
|
|
|
83,739 |
|
|
|
319,682 |
|
|
|
332,407 |
|
Depreciation - unconsolidated joint ventures |
|
|
2,482 |
|
|
|
2,623 |
|
|
|
10,423 |
|
|
|
10,881 |
|
Add back provision for impairments on real estate properties |
|
|
3,951 |
|
|
|
17,230 |
|
|
|
91,943 |
|
|
|
38,451 |
|
Nareit funds from operations (“Nareit FFO”) |
|
$ |
128,917 |
|
|
$ |
(29,907 |
) |
|
$ |
591,176 |
|
|
$ |
460,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding, basic |
|
|
245,751 |
|
|
|
234,863 |
|
|
|
240,493 |
|
|
|
236,256 |
|
Restricted stock and PRSUs |
|
|
3,589 |
|
|
|
1,378 |
|
|
|
2,923 |
|
|
|
1,198 |
|
Omega OP Units |
|
|
7,219 |
|
|
|
6,752 |
|
|
|
7,035 |
|
|
|
6,836 |
|
Weighted-average common shares outstanding, diluted |
|
|
256,559 |
|
|
|
242,993 |
|
|
|
250,451 |
|
|
|
244,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Nareit funds from operations available per share |
|
$ |
0.50 |
|
|
$ |
(0.13 |
) |
|
$ |
2.36 |
|
|
$ |
1.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments to calculate adjusted funds from operations |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Nareit FFO |
|
$ |
128,917 |
|
|
$ |
(29,907 |
) |
|
$ |
591,176 |
|
|
$ |
460,536 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stock-based compensation expense |
|
|
8,762 |
|
|
|
6,787 |
|
|
|
35,068 |
|
|
|
27,302 |
|
Uncollectible accounts receivable (2) |
|
|
— |
|
|
|
96,133 |
|
|
|
20,633 |
|
|
|
124,758 |
|
Non-cash provision for credit losses |
|
|
34,082 |
|
|
|
67,027 |
|
|
|
51,966 |
|
|
|
77,109 |
|
Acquisition, merger and transition related costs |
|
|
4,158 |
|
|
|
36,348 |
|
|
|
5,341 |
|
|
|
42,006 |
|
Non-recurring expense |
|
|
384 |
|
|
|
722 |
|
|
|
2,277 |
|
|
|
3,722 |
|
Loss on debt extinguishment |
|
|
486 |
|
|
|
— |
|
|
|
492 |
|
|
|
389 |
|
Non-recognized cash interest |
|
|
207 |
|
|
|
— |
|
|
|
6,378 |
|
|
|
— |
|
Deduct: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-recurring revenue |
|
|
(4,587 |
) |
|
|
(2,372 |
) |
|
|
(17,368 |
) |
|
|
(4,934 |
) |
Add back (deduct) unconsolidated JV related non-recurring loss (revenue) |
|
|
1,054 |
|
|
|
1,940 |
|
|
|
2,710 |
|
|
|
(645 |
) |
Adjusted funds from operations (“AFFO”) (1)(3) |
|
$ |
173,463 |
|
|
$ |
176,678 |
|
|
$ |
698,673 |
|
|
$ |
730,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments to calculate funds available for distribution |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-cash interest expense |
|
$ |
2,676 |
|
|
$ |
2,222 |
|
|
$ |
9,581 |
|
|
$ |
8,832 |
|
Capitalized interest |
|
|
(1,324 |
) |
|
|
(859 |
) |
|
|
(4,340 |
) |
|
|
(3,158 |
) |
Non-cash revenue |
|
|
(11,403 |
) |
|
|
(6,979 |
) |
|
|
(47,011 |
) |
|
|
(58,269 |
) |
Funds available for distribution (“FAD”) (1)(3) |
|
$ |
163,412 |
|
|
$ |
171,062 |
|
|
$ |
656,903 |
|
|
$ |
677,648 |
|
(1) |
The three months and year ended |
|
(2) |
The year ended |
|
(3) |
Adjusted funds from operations per share and funds available for distribution per share can be calculated using weighted-average common shares outstanding, diluted, as shown above. |
Nareit Funds From Operations (“Nareit FFO”), Adjusted FFO and Funds Available for Distribution (“FAD”) are non-GAAP financial measures. As used in this press release, GAAP refers to generally accepted accounting principles in
The Company calculates and reports Nareit FFO in accordance with the definition and interpretive guidelines issued by the
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), cash interest received but not included in revenue, non-recognized cash interest, severance, legal reserve expenses, 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. The Company offers these measures to assist the users of its financial statements in analyzing its operating performance. These non-GAAP measures are not measures of financial performance under GAAP and should not be considered as measures of liquidity or cash flow, 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240207384980/en/
Matthew Gourmand, SVP, Corporate Strategy & Investor Relations
or
Source: