Investor Thesis

Why invest in OHI?

Through 2015, Omega is the #1 healthcare REIT in total shareholder return for the last 10 years and #3 among all REITs

18 consecutive quarterly dividend increases: currently $0.62 per share

Focused on smart growth: $1.3B in new investments and capital renovations in 2016

Quarterly Highlights

2016

In Q4 2016, the Company…

  • invested approximately $50 million in a joint venture investment.
  • invested $40 million in capital renovation and construction-in-progress projects.
  • increased its quarterly common stock dividend rate to $0.61 per share.

In Q2 2016, the Company…

  • Increased its quarterly common stock dividend rate to $0.58 per share.
  • Completed $220 million in new investments.

In Q4 2015, the Company…

  • paid-off $25 million of secured long-term debt.
  • completed a $250 million senior unsecured 7-year term loan.
  • redeemed $575 million aggregate principal amount 6.75% Senior Notes due 2022.
  • completed a $5 million new investment.
  • invested $34 million in capital renovation and construction in progress projects.
  • increased its quarterly common stock dividend rate to $0.56 per share.

In Q2 2015, the Company…

  • completed the acquisition by merger of Aviv.
  • completed $178 million of new investments in the United Kingdom.
  • invested $18 million in capital renovation projects.
  • paid-off $9 million of secured long-term debt.
  • increased its quarterly common stock dividend rate to $0.54 per share.

In Q3 2016, the Company…

  • Increased its quarterly common stock dividend rate to $0.60 per share.
  • Issued $700 million aggregate principal amount of its 4.375% Senior Notes, due 2023.

In Q1 2016, the Company…

  • completed $186 million in new investments.
  • completed a $350 million senior unsecured 5-year term loan.
  • increased its quarterly common stock dividend rate to $0.57 per share.

In Q3 2015, the Company…

  • issued $600 million aggregate principal amount of its 5.25%Manhattan for the development of an assisted living and memory care facility.
  • established a $500 million Equity Shelf Program for a continuous at-the-market offering of common stock.
  • completed $104 million of other new investments.
  • invested $35 million in capital renovation and construction in progress projects.
  • increased its quarterly common stock dividend rate to $0.55 per share.

In Q1 2015, the Company…

  • issued $700 million aggregate principal amount of its 4.5% Senior Notes due 2027.
  • completed an underwritten public offering of 10.925 million shares of its common stock.
  • redeemed $200 million aggregate principal amount of its 7.5% Senior Notes due 2020.
  • paid-off $147 million of secured long-term debt.
  • completed $6 million in new investments.
  • invested $9 million in capital renovation projects.
  • increased its quarterly common stock dividend to $0.53 per share.

Portfolio Strength

  • 932 operating healthcare facilities, located in 42 states and the UK, operated by 83 3rd-party operators, with gross real estate investments of about $8 billion.
  • Highly diversified holdings, with our largest operator accounting for only 10% of total rent / interest.
  • Property-level expenses – labor, insurance, property taxes, and capital expenditures – are the operator’s responsibility, meaning OHI has no operating risk.
  • Omega receives fixed rent payments from tenants, with annual escalators.
  • Strong portfolio rent coverage of 1.8x (EBITDARM) and 1.4x (EBITDAR)
  • No upcoming material lease expirations until 2020 and no material lease renewal risk.
  • Operators receive revenues through reimbursement of Medicare, Medicaid and private pay for services.
  • Stable reimbursement outlook:
    • Medicare 1.2% rate increase on October 1, 2015
    • Medicaid rates expected to increase modestly on average across Omega’s states
    • Medicaid dual eligible integrated managed care plans initiated by some states

Rent/Interest by Operator(1)(2016 Contractual)

3Q15 Annualized Contractual 73 Remaining Operators, 45.9%, Ciena, 10.0%, Communicare, 6.7%, Genesis, 6.7%, Ark, 6.7%, Saber, 4.8%, HHC, 4.3%, Signature, 3.9%, Maplewood, 3.8%, Guardian, 3.7%, Diversicare, 3.6%

1. Rent excludes all GAAP required non-cash straight-line or lease inducement revenue


Financial Strength

as of March 31, 2016

  • Significant liquidity.
  • Consistent and stable free cash flow with strong fixed charge coverage of 4.7x
  • Conservative leverage level with Debt / Adj. EBITDA of 4.7x, in line with our leverage targets
  • Low Secured debt / Adj. EBITDA of 0.3x and strong commitment to unsecured borrowing structure with about $9.1 billion of unencumbered assets.
  • Minimal short-term debt maturities.
  • Positive ratings trajectory with history of upgrades and commitment to investment grade profile.
Capital Market Accessibility
Minimal Near Term Expirations

Experienced management team

  • Senior management team with average tenure of 16 years.
  • Proven ability to execute on strategies.
  • Proven ability to handle troubled assets.