Omega Announces Second Quarter 2007 Financial Results and Second Quarter Adjusted FFO of $0.34 Per Share
TIMONIUM, Md.--(BUSINESS WIRE)--
Omega Healthcare Investors, Inc. (NYSE:OHI) today announced its results of operations for the quarter ended June 30, 2007. The Company also reported Funds From Operations ("FFO") available to common stockholders for the three months ended June 30, 2007 of $22.4 million or $0.33 per common share. The $22.4 million of FFO available to common stockholders for the quarter includes $0.3 million of non-cash restricted stock expense and $0.1 million of non-cash consolidation adjustments due to Financial Accounting Standards Board Interpretation No. 46R, Consolidation of Variable Interest Entities ("FIN 46R"). FFO is presented in accordance with the guidelines for the calculation and reporting of FFO issued by the National Association of Real Estate Investment Trusts ("NAREIT"). Adjusted FFO was $0.34 per common share for the three months ended June 30, 2007. Adjusted FFO is a non-GAAP financial measure, which additionally excludes the impact of certain non-cash items and certain items of revenue or expenses, including: restricted stock expense and FIN 46R consolidation adjustments. For more information regarding FFO and adjusted FFO, see the "Funds From Operations" section below.
GAAP NET INCOME
For the three-month period ended June 30, 2007, the Company reported net income of $16.1 million, net income available to common stockholders of $13.6 million, or $0.20 per diluted common share and operating revenues of $38.2 million. This compares to net income of $17.5 million, net income available to common stockholders of $15.0 million, or $0.26 per diluted common share, and operating revenues of $32.3 million for the same period in 2006.
For the six-month period ended June 30, 2007, the Company reported net income of $36.7 million, net income available to common stockholders of $31.7 million, or $0.50 per diluted common share and operating revenues of $80.8 million. This compares to net income of $27.7 million, net income available to common stockholders of $22.7 million, or $0.39 per diluted common share, and operating revenues of $64.4 million for the same period in 2006.
The increases in net income, operating revenues and net income available to common stockholders during the six-month period ended June 30, 2007 were due primarily to $200 million in new investments made throughout 2006, as well as, the impact of an allowance adjustment of $5.0 million, or $0.8 per common share, with respect to straight-line rent recognition recorded in the first quarter of 2007.
SECOND QUARTER 2007 HIGHLIGHTS AND OTHER RECENT DEVELOPMENTS
-- In July, the Company declared a quarterly common dividend of
$0.27 per share.
-- The Company reinstated the Company's Dividend Reinvestment and
Common Stock Purchase Plan (the "DRIP") effective immediately
for investment beginning May 15, 2007.
-- The Company completed a 7.13 million share common stock
offering on April 3, 2007, resulting in net proceeds to the
Company of $113 million.
SECOND QUARTER 2007 RESULTS
Operating Revenues and Expenses - Operating revenues for the three months ended June 30, 2007 were $38.2 million. Operating expenses for the three months ended June 30, 2007 totaled $11.6 million, comprised of $8.8 million of depreciation and amortization expense, $2.5 million of general and administrative expenses and $0.3 million of stock-based compensation expense primarily associated with the Company's issuance of restricted stock and performance grants to executive officers during the quarter (see the Company's Quarterly Report on Form 10-Q for the three-month period ended March 31, 2007).
Other Income and Expense - Other income and expense for the three months ended June 30, 2007 was a net expense of $10.5 million and was primarily comprised of $10.1 million of interest expense and $0.5 million of amortization of deferred financing costs.
Funds From Operations - For the three months ended June 30, 2007, reportable FFO available to common stockholders was $22.4 million, or $0.33 per common share, compared to $22.7 million, or $0.39 per common share, for the same period in 2006. The $22.4 million of FFO for the quarter includes $0.3 million of non-cash restricted stock expense and $0.1 million of non-cash FIN 46R consolidation adjustments.
The $22.7 million of FFO for the three months ended June 30, 2006, includes the impact of: i) a $0.6 million provision for income taxes; ii) a $5.5 million non-cash increase in the fair value of a derivative; iii) $0.4 million in non-cash accretion investment income; and iv) $0.3 million of non-cash restricted stock amortization.
When excluding the above mentioned non-cash or non-recurring items in 2007 and 2006, adjusted FFO was $22.6 million, or $0.34 per common share, for the three months ended June 30, 2007, compared to $17.7 million, or $0.30 per common share, for the same period in 2006. For further information, see the attached "Funds From Operations" schedule and notes.
FINANCING ACTIVITIES
7.130 Million Common Stock Offering - As previously announced, on April 3, 2007, the Company completed an underwritten public offering of 7,130,000 shares of Omega common stock at $16.75 per share, less underwriting discounts. The sale included 930,000 shares sold in connection with the exercise of an over-allotment option granted to the underwriters. The Company received approximately $113 million in net proceeds from the sale of the shares, after deducting underwriting discounts. Substantially all the proceeds of the offering were applied to pay down indebtedness.
PORTFOLIO DEVELOPMENTS
Asset Sales - On June 30, 2007, the Company sold two skilled nursing facilities ("SNFs") in Texas for their approximate net book values, generating cash proceeds of approximately $1.8 million. These facilities were purchased in the third quarter of 2006 as part of a $171 million 31 facility acquisition.
DIVIDENDS
Common Dividends - On July 17, 2007, the Board of Directors declared a common stock dividend of $0.27 per share to be paid August 15, 2007 to common stockholders of record on July 31, 2007.
Series D Preferred Dividends - On July 17, 2007, the Board of Directors declared the regular quarterly dividends for the 8.375% Series D Cumulative Redeemable Preferred Stock ("Series D Preferred Stock") to stockholders of record on July 31, 2007. The stockholders of record of the Series D Preferred Stock on July 31, 2007 will be paid dividends in the amount of $0.52344 per preferred share on August 15, 2007. The liquidation preference for our Series D Preferred Stock is $25.00 per share. Regular quarterly preferred dividends for the Series D Preferred Stock represent dividends for the period May 1, 2007 through July 31, 2007.
Dividend Reinvestment and Common Stock Purchase Plan - The Company also previously announced the reinstatement of the DRIP effective for investment beginning May 15, 2007. All questions and requests in connection with the DRIP should be directed to the DRIP's administrator, Computershare, at (800) 519-3111.
2007 ADJUSTED FFO GUIDANCE AFFIRMATION
The Company affirms its 2007 adjusted FFO available to common stockholders guidance of between $1.32 and $1.36 per diluted share, as previously announced on April 26, 2007.
The Company's adjusted FFO guidance for 2007 excludes the future impacts of acquisitions, gains and losses from the sale of assets, additional divestitures, certain revenue and expense items, capital transactions and restricted stock amortization expense. A reconciliation of the adjusted FFO guidance to the Company's projected GAAP earnings is provided on a schedule attached to this press release. The Company may, from time to time, update its publicly announced adjusted FFO guidance, but it is not obligated to do so.
The Company's adjusted FFO guidance is based on a number of assumptions, which are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company's expectations may change. There can be no assurance that the Company will achieve its projected results.
CONFERENCE CALL
The Company will be conducting a conference call on Thursday, July 26, 2007, at 10 a.m. EDT to review the Company's 2007 second quarter results and current developments. To listen to the conference call via webcast, log on to www.omegahealthcare.com and click the "earnings call" icon on the Company's home page. Webcast replays of the call will be available on the Company's website for two weeks following the call.
The Company is a real estate investment trust investing in and providing financing to the long-term care industry. At June 30, 2007, the Company owned or held mortgages on 233 SNFs and assisted living facilities with approximately 26,820 beds located in 27 states and operated by 30 third-party healthcare operating companies.
This announcement includes forward-looking statements. 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 the Company's properties, including those relating to reimbursement by third-party payors, regulatory matters and occupancy levels; (ii) regulatory and other changes in the healthcare sector, including without limitation, changes in Medicare reimbursement; (iii) changes in the financial position of the Company's operators; (iv) the ability of operators in bankruptcy to reject unexpired lease obligations, modify the terms of the Company's mortgages, and impede the ability of the Company to collect unpaid rent or interest during the pendency of a bankruptcy proceeding and retain security deposits for the debtor's obligations; (v) the availability and cost of capital; (vi) competition in the financing of healthcare facilities; (vii) the Company's ability to maintain its status as a real estate investment trust and to reach a closing agreement with the Internal Revenue Service with respect to the related party tenant issues described in our Form 10-K filed with the Securities and Exchange Commission on February 23, 2007 ("Form 10-K"); (viii) the impact of the material weakness identified in the management's report on internal control over financial reporting included in our Form 10-K, including expenses that may be incurred in efforts to remediate such weakness and potential additional costs in preparing and finalizing financial statements in view of such material weakness; and (ix) other factors identified in the Company's filings with the Securities and Exchange Commission. Statements regarding future events and developments and the Company's future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements.
OMEGA HEALTHCARE INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
2007 2006
------------------------
(Unaudited)
ASSETS
Real estate properties
Land and buildings at cost $1,240,132 $1,237,165
Less accumulated depreciation (205,761) (188,188)
------------------------
Real estate properties - net 1,034,371 1,048,977
Mortgage notes receivable - net 32,002 31,886
------------------------
1,066,373 1,080,863
Other investments - net 26,005 22,078
------------------------
1,092,378 1,102,941
Assets held for sale - net -- 3,568
------------------------
Total investments - net 1,092,378 1,106,509
Cash and cash equivalents 2,484 729
Restricted cash 4,201 4,117
Accounts receivable - net 59,396 51,194
Other assets 13,036 12,821
------------------------
Total assets $1,171,495 $1,175,370
========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Revolving line of credit $30,000 $150,000
Unsecured borrowings - net 484,722 484,731
Other long-term borrowings 41,410 41,410
Accrued expenses and other liabilities 25,953 28,037
Income tax liabilities 5,646 5,646
Operating liabilities for owned properties -- 92
------------------------
Total liabilities 587,731 709,916
------------------------
Stockholders' equity:
Preferred stock 118,488 118,488
Common stock and additional paid-in-capital 820,519 700,177
Cumulative net earnings 329,475 292,766
Cumulative dividends paid (641,651) (602,910)
Cumulative dividends - redemption (43,067) (43,067)
------------------------
Total stockholders' equity 583,764 465,454
------------------------
Total liabilities and stockholders' equity $1,171,495 $1,175,370
========================
OMEGA HEALTHCARE INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
------------------ -----------------
June 30, June 30,
------------------ -----------------
2007 2006 2007 2006
------------------ -----------------
Revenues
Rental income $36,192 $29,880 $77,069 $59,717
Mortgage interest income 888 1,154 1,897 2,338
Other investment income - net 729 947 1,374 1,884
Miscellaneous 353 332 490 441
--------- -------- -------- --------
Total operating revenues 38,162 32,313 80,830 64,380
Expenses
Depreciation and amortization 8,831 7,510 17,630 14,995
General and administrative 2,456 2,021 5,003 4,077
Restricted stock expense 309 292 335 585
--------- -------- -------- --------
Total operating expenses 11,596 9,823 22,968 19,657
Income before other income and
expense 26,566 22,490 57,862 44,723
Other income (expense):
Interest and other investment
income 58 69 98 182
Interest (10,073) (9,447) (21,917) (19,056)
Interest - amortization of
deferred financing costs (500) (431) (959) (1,074)
Interest - refinancing costs - - - (3,485)
Change in fair value of
derivatives - 5,474 - 7,908
--------- -------- -------- --------
Total other expense (10,515) (4,335) (22,778) (15,525)
Income from continuing operations
before income taxes 16,051 18,155 35,084 29,198
Provision for income taxes - (590) - (1,139)
--------- -------- -------- --------
Income from continuing operations 16,051 17,565 35,084 28,059
Discontinued operations (1) (75) 1,625 (394)
--------- -------- -------- --------
Net income 16,050 17,490 36,709 27,665
Preferred stock dividends (2,481) (2,481) (4,962) (4,962)
--------- -------- -------- --------
Net income available to common $13,569 $15,009 $31,747 $22,703
========= ======== ======== ========
Income (loss) per common share:
Basic:
Income from continuing
operations $0.20 $0.26 $0.47 $0.40
========= ======== ======== ========
Net income $0.20 $0.26 $0.50 $0.39
========= ======== ======== ========
Diluted:
Income from continuing
operations $0.20 $0.26 $0.47 $0.40
========= ======== ======== ========
Net income $0.20 $0.26 $0.50 $0.39
========= ======== ======== ========
Dividends declared and paid per
common share $0.27 $0.24 $0.53 $0.47
========= ======== ======== ========
Weighted-average shares
outstanding, basic 67,237 58,158 63,666 57,787
========= ======== ======== ========
Weighted-average shares
outstanding, diluted 67,261 58,283 63,690 57,881
========= ======== ======== ========
Components of other comprehensive
income:
Net income $16,050 $17,490 $36,709 $27,665
Unrealized gain on common stock
investment - 881 - 1,580
Unrealized loss on preferred
stock investment - (286) - (590)
--------- -------- -------- --------
Total comprehensive income $16,050 $18,085 $36,709 $28,655
========= ======== ======== ========
OMEGA HEALTHCARE INVESTORS, INC.
FUNDS FROM OPERATIONS
Unaudited
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -----------------
2007 2006 2007 2006
--------- -------- -------- --------
Net income available to common
stockholders $13,569 $15,009 $31,747 $22,703
Add back loss (deduct gain) from
real estate dispositions(1) 1 133 (1,596) 381
--------- -------- -------- --------
Sub-total 13,570 15,142 30,151 23,084
Elimination of non-cash items
included in net income:
Depreciation and
amortization(1) 8,831 7,542 17,630 15,069
--------- -------- -------- --------
Funds from operations available to
common stockholders $22,401 $22,684 $47,781 $38,153
========= ======== ======== ========
Weighted-average common shares
outstanding, basic 67,237 58,158 63,666 57,787
Effect of restricted stock
awards 10 106 5 75
Assumed exercise of stock
options 14 19 19 19
--------- -------- -------- --------
Weighted-average common shares
outstanding, diluted 67,261 58,283 63,690 57,881
========= ======== ======== ========
Fund from operations per share
available to common stockholders $0.33 $0.39 $0.75 $0.66
========= ======== ======== ========
Adjusted funds from operations:
Funds from operations available
to common stockholders $22,401 $22,684 $47,781 $38,153
Deduct Advocat one-time straight
line adjustment -- -- (5,040) --
Deduct non-cash increase in fair
value of Advocat derivative -- (5,474) -- (7,908)
Deduct Advocat non-cash
accretion investment income -- (414) -- (826)
Deduct FIN 46R adjustment (77) -- (153) --
Add back one-time non-cash
interest refinancing expense -- -- -- 3,485
Add back non-cash restricted
stock expense 309 292 335 585
Add back non-cash provision for
impairments on real estate
properties(1) -- -- -- 121
Add back non-cash provision for
income taxes -- 590 -- 1,139
--------- -------- -------- --------
Adjusted funds from operations
available to common stockholders $22,633 $17,678 $42,923 $34,749
========= ======== ======== ========
(1) Includes amounts in discontinued operations
This press release includes Funds From Operations, or FFO, which is a non-GAAP financial measure. For purposes of the Securities and Exchange Commission's ("SEC") 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 excludes 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 statement of operations, balance sheet or statement of cash flows (or equivalent statements) of the company, or includes 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 FFO in accordance with the definition and interpretive guidelines issued by the National Association of Real Estate Investment Trusts ("NAREIT"), and consequently, FFO is defined as net income available to common stockholders, adjusted for the effects of asset dispositions and certain non-cash items, primarily depreciation and amortization. FFO available to common stockholders per share is further adjusted for the effect of restricted stock awards and the exercise of in-the-money stock options. The Company believes that FFO is an important supplemental measure 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 FFO was designed by the real estate industry to address this issue. FFO herein is not necessarily comparable to FFO 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 FFO available to common stockholders less one-time revenue and expense items. The Company believes that adjusted FFO provides an enhanced measure of the operating performance of the Company's core portfolio as a REIT. The Company's computation of adjusted FFO is not comparable to the NAREIT definition of FFO or to similar measures reported by other REITs, but the Company believes it is an appropriate measure for this Company.
The Company uses FFO as one of several criteria to measure the operating performance of its business. The Company further believes that by excluding the effect of depreciation, amortization 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, FFO can facilitate comparisons of operating performance between periods and between other REITs. The Company offers this measure to assist the users of its financial statements in analyzing its performance; however, this is not a measure of financial performance under GAAP and should not be considered a measure of liquidity, an alternative to net income or an indicator of any other performance measure determined in accordance with GAAP. Investors and potential investors in the Company's securities should not rely on this measure as a substitute for any GAAP measure, including net income.
In February 2004, NAREIT informed its member companies that it was adopting the position of the SEC with respect to asset impairment charges and would no longer recommend that impairment write-downs be excluded from FFO. In the tables included in this press release, the Company has applied this interpretation and has not excluded asset impairment charges in calculating its FFO. As a result, its FFO may not be comparable to similar measures reported in previous disclosures. According to NAREIT, there is inconsistency among NAREIT member companies as to the adoption of this interpretation of FFO. Therefore, a comparison of the Company's FFO results to another company's FFO results may not be meaningful.
The following table presents a reconciliation of our guidance regarding 2007 FFO and Adjusted FFO to net income available to common stockholders:
2007 Projected
---------------------
Per diluted share:
Net income available to common stockholders $0.88 - $0.92
Adjustments:
Depreciation and amortization 0.50 - 0.50
--------- ---------
Funds from operations available to common
stockholders $1.38 - $1.42
Adjustments:
Advocat straight-line revenue adjustment (0.08) - (0.08)
FIN 46R non-cash revenue adjustment (0.00) - (0.00)
Restricted stock expense 0.02 - 0.02
--------- ---------
Adjusted funds from operations available to
common stockholders $1.32 - $1.36
The following table summarizes the results of operations of assets held for sale and facilities sold during the three and six months ended June 30, 2007 and 2006, respectively.
Three Months Ended Six Months Ended
June 30, June 30,
-----------------------------------
2007 2006 2007 2006
-----------------------------------
(in thousands)
Revenues
Rental income $-- $93 $32 $185
-----------------------------------
Subtotal revenues -- 93 32 185
-----------------------------------
Expenses
Depreciation and amortization -- 32 -- 74
General and administrative -- 3 3 3
Provision for impairment -- -- -- 121
-----------------------------------
Subtotal expenses -- 35 3 198
-----------------------------------
Income (loss) before gain (loss) on
sale of assets -- 58 29 (13)
(Loss) gain on assets sold - net (1) (133) 1,596 (381)
-----------------------------------
Discontinued operations $(1) $(75) $1,625 $(394)
===================================
The following tables present selected portfolio information, including operator and geographic concentrations, and revenue maturities for the period ending June 30, 2007.
Portfolio Composition ($000's)
----------------------------------------------------------------------
Balance Sheet Data # of # of %
Properties Beds Investment Investment
----------------------------------------
Real Property(1)(2) 224 25,700 $1,259,332 98%
Loans Receivable(3) 9 1,120 32,002 2%
----------------------------------------
Total Investments 233 26,820 $1,291,334 100%
Investment Data # of # of % Investment
Properties Beds Investment Investment per Bed
--------------------------------------------------
Skilled Nursing
Facilities (1)(3) 225 26,234 $1,235,841 96% $47
Assisted Living
Facilities 6 416 30,323 2% 73
Rehab Hospitals 2 170 25,170 2% 138
--------------------------------------------------
233 26,820 $1,291,334 100% $48
(1) Includes a $19.2 million lease inducement.
(2) Includes 7 buildings worth $61.8 million resulting from a FIN 46R
consolidation.
(3) Includes $1.3 million of unamortized principal.
Revenue Composition ($000's)
--------------------------------
Revenue by Investment Type Three Months Ended Six Months Ended
June 30, 2007 June 30, 2007
-------------------------------------
Rental Property (1) $36,192 96% $77,069 96%
Mortgage Notes 888 2% 1,897 2%
Other Investment Income 729 2% 1,374 2%
-------------------------------------
$37,809 100% $80,340 100%
Revenue by Facility Type Three Months Ended Six Months Ended
June 30, 2007 June 30, 2007
-------------------------------------
Assisted Living Facilities $480 1% $992 1%
Skilled Nursing Facilities (1) 36,600 97% 77,974 97%
Other 729 2% 1,374 2%
-------------------------------------
$37,809 100% $80,340 100%
(1) Revenue includes $0.8 million and $1.5 million reduction for lease
inducements for the three- and six- month periods ending June 30,
2007, respectively.
Operator Concentration ($000's)
----------------------------------------------------------------------
Concentration by Investment # of %
Properties Investment Investment
----------------------------------
Sun Healthcare Group, Inc. 42 $233,323 18%
Communicare 19 194,872 15%
Haven 15 117,230 9%
Advocat, Inc. 32 108,214 8%
Guardian (1) 17 105,181 8%
HQM 13 97,987 8%
Remaining Operators 95 434,527 34%
----------------------------------
233 $1,291,334 100%
(1) Investment amount includes a $19.2 million lease inducement.
Geographic Concentration ($000's)
----------------------------------------------------------------------
Concentration by Region # of %
Properties Investment Investment
----------------------------------
South (1) 109 $520,512 40%
Midwest 53 339,106 26%
Northeast 37 259,157 20%
West 34 172,559 14%
----------------------------------
233 $1,291,334 100%
Concentration by State # of %
Properties Investment Investment
---------------------------------
Ohio 37 $280,740 22%
Florida 25 171,768 13%
Pennsylvania 17 110,234 9%
Texas 21 82,604 6%
California 15 60,665 5%
Remaining States (1) 118 585,323 45%
---------------------------------
233 $1,291,334 100%
(1) Investment amount includes a $19.2 million lease inducement.
Revenue Maturities ($000's)
----------------------------------------------------------------------
Current Current Lease and
Operating Lease Expirations Lease Interest Interest
& Loan Maturities Revenue Revenue Revenue
Year (1) (1) %
------------------------------------------
2007 3,760 - 3,760 3%
2008 1,071 - 1,071 1%
2009 - - - 0%
2010 11,210 1,445 12,655 9%
2011 11,500 218 11,718 8%
Thereafter 110,207 2,121 112,328 79%
--------------------------------
$137,748 $3,784 $141,532 100%
(1) Based on 2007 contractual rents and interest payment obligations
(no annual escalators).
Selected Facility Data
----------------------------------------------------------------------
TTM ending 3/31/2007 Coverage Data
--------------
% Payor Mix Before After
------------------
Mgmt. Mgmt.
Census Private Medicare Fees Fees
------------------------------------------
All Healthcare Facilities 82.5% 11.8% 14.0% 2.1 x 1.7 x
The following tables present selected financial information, including leverage and interest coverage ratios, as well as a debt maturity schedule for the period ending June 30, 2007.
Current Capitalization ($000's)
----------------------------------------------------------------------
Outstanding
Balance %
------------------
Borrowings Under Bank Lines $30,000 2.6%
Long-Term Debt Obligations (1) 526,410 46.2%
Stockholders' Equity 583,764 51.2%
------------------
Total Book Capitalization $1,140,174 100.0%
(1) Excludes net discount of $0.3 million on unsecured
borrowings. Includes $39.0 million of additional non-recourse
debt due to required FIN 46R consolidation.
Leverage & Performance Ratios
Debt / Total Book Cap 48.8%
Debt / Total Market Cap 31.8%
Interest Coverage:
2nd quarter 2007 3.38 x
Debt Maturities Secured Debt
($000's)
--------------- ----------------------
Lines of
Credit FIN 46R Senior
Year (1) Consolidation Other Notes Total
-------------------------------------------------------
2007 $- $- $415 $- $415
2008 - - 435 - 435
2009 - - 465 - 465
2010 255,000 - 495 - 255,495
Thereafter - 39,000 600 485,000 524,600
---------------------- ----------------------
$255,000 $39,000 $2,410$485,000$781,410
--------
(1) Reflected at 100% borrowing capacity.
The following table presents investment activity for the three- and six- month periods ending June 30, 2007.
Investment Activity ($000's)
----------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, 2007 June 30, 2007
-----------------------------------
$ Amount % $ Amount %
-----------------------------------
Funding by Investment Type:
Real Property $- 0% $- 0%
Mortgages - 0% 345 11%
Other 2,080 100% 2,771 89%
-----------------------------------
Total $2,080 100% $3,116 100%
Source: Omega Healthcare Investors, Inc.
Released July 26, 2007