OHI - Earnings call transcript Q1 2020 | Omega Healthcare Investors, Inc.

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Operator

Good day. Welcome to Omega Healthcare First Quarter 2020 Earnings Conference Call and Webcast. [Operator Instructions]. Please note, this event is being recorded.

I would now like to turn the conference over to Ms. Asset Operations. Director, Senior Reber, Manager of Michele Ms. Reber, is yours, ma'am. the floor

Michele Reber

and Vice President Thank Pickett; me today Corporate CFO, morning. are With Stephenson; Insoft; Megan you, Senior Steven Dan Development of Operations. good COO, Omega's Officer, Chief Booth; Krull, and Bob CEO, Taylor

acquisitions, most be financial financial Comments cause made contemplated may projections, report portfolio which our XX-K, our portfolio specific rent payments, with which may described our dividend Securities or differ and call on such prospects as press factors operators, not differ historical and that forward-looking identify policy, cause statements. or actual those during from statements, that actual are to uncertainties, in statements our condition business of materially. events the Please forward-looking generally. including, see this outlook and facts results recent statements conference results to transitions forward-looking dispositions regarding our materially Commission, or restructuring, and Form filings our Exchange may risks involve and releases These limitation, without

explanation in we FFO, comparable at and adjusted refer in accepted principles www.omegahealthcare.com During of today, issued and of as non-GAAP non-GAAP measures of Information website our Reconciliations FFO are measures, recently of and the an adjusted the as the FFO, will NAREIT generally press Financial call the usefulness of available under to section FAD the EBITDA. our NAREIT release. financial some these to case measures such measure the under as most non-GAAP FFO, well accounting

has based our financial discuss verified and coverage by we not certain that been provided data Omega. independently is In addition, by operators on that operator information

to turn the now will over Taylor. I call

Taylor Pickett

morning, our and you Thanks, conference earnings quarter first call. Michele. joining XXXX for Good thank

quarter XX% focus our XX% and company adjusted I'm improved that The the of allowed share expected going to first potential COVID-XX to FFO distribution. on that partners We to be a pandemic declare the per as on of will impact as our our XX. for payout evolves. operating results the us on Today, comments of ratio my dividend $X.XX and funds comfortably COVID pleased available impact on distributed with are very May

at following things number operator-reported we of know facilities The industry. to for and facilities, increases essential labor states be nursing that skilled protective positive dramatic. and facility We federal of elective government and the meaningful equipment provided know. can for We employees costs CMS, significantly. tested that increased Census have the part financial are and facilities know the have in has the procedures. have the and with residents support absolutely hospital Omega due regulatory declined, to COVID-XX. personal elimination And cases, positive in least the that

high-cost future long will number We perspective protocols know outbreaks widespread, clinical do government the and costs will not COVID-XX and monitoring and of increased reimbursement to not of of be how will census facilities support employees, and incremental elevated states sufficient for we needs-based be facilities. cost monitoring. infection if cover drive within not changed. not sufficient will not From that infection that the have increasing and know. know be do bullish have last know What longer-term cover demographics There the We rates for do observations, these facilities We costs. guests the all enhanced the the and COVID-XX. to will of federal funding the care nursing Omega increased do entering ultimate disruption others from of our control skilled control demand of if

results first quarter. in the financial We had good

of XXXX. that of have of uncertainty the we XXXX our the withdrawn in guidance we April, Additionally, in significant virtually remainder rents. we've COVID-XX-driven our all recognition collected face Nevertheless, for

of negative cannot Lastly press that have the enough. our last caregivers operating outweighs some We over to The the the and residents humbling most partners of dedication month. them cannot heartwarming dramatically efforts importantly, within direct and care thank facilities. overstate for staff I undertaken the our their is tremendous and

to will I turn Bob. now the call over

Robert Stephenson

you, Thank morning. good and Taylor,

Our quarter NAREIT first for FFO compared on per share basis $XXX $XXX to a million of or per million diluted $X.XX diluted XXXX. share for $X.XX was the the as or quarter

FFO and was FFO found our net income the for several $X.XX in in quarter $XXX our our or also adjusted as supplemental our excludes release, per in website. share earnings adjusted Our reconciliation outlined items and on million to

or timing repayments termination was of million $XXX to revenue incremental revenue for the receipts in revenue related billion basis. OP transitions investments by XXXX, quarter quarter revenue have primarily million a from The upon facilities. loan of Omega the to held approximately to security the occurred a and $XXX operators million was cash for of combination increase the of XXXX, new with asset partially first for deposits of $X.X quarter versus approximately includes from on Revenue made noncash throughout certain resulting million renovations first our amendments quarter quarter of sale the period unitholders capital XXXX lease by well reduced related as that cash of the that of of since the the same $XX revenue XXXX and first time completed to related onetime increase sales, due to revenue. during $XXX made facilities The offset collected and as in over and

collected and April, mortgage notes. of the month of For rents, interest XX% we

a million to $XXX XXXX. between related increase the and higher December deferred senior first September over financing notes million $XXX XXXX. expense G&A from due the was $XXX costs, expense $XX.X remainder of when of acquisition. is quarter the the for we for $X.X Our of borrowings. quarterly quarter million a noncash excluding year. million assumed quarter in issued million which for our was Interest of HUD October with XXXX, typically quarter, highest $X.X resulting we expense $XX.X XXXX, million, XXXX, first in And G&A the within million project In XXXX, $XX.X of outstanding We million debt X.XXX%

balance under in that we the April XXXX, credit from additional uncertainty to facility abundance to Based At equivalents. cash steps borrowings we under $XXX Our $XXX approximately our markets $X.XX revolving XX, on borrowed existed caution, continue and facility, resulting of we had million had the strong, $XXX outstanding million remains in in liquidity. to million and credit sheet COVID-XX, March, credit an provide balance of improve sheet liquidity. take and cash our billion we our on approximately

expire XX-year provide cost us significant average These bond no certainty maturity. refinancing March, In of rate XXXX with swaps have we million our into XXXX. maturities swap in an upon bond and We significant $XXX August of X.XXXX%. of swaps interest at until entered XXXX rate

weather to to potential believe impact pronounced business, maintain that to may we our liquidity. prolonged we significant additional continue to will and actions adequate While to be provide liquidity and us our with steps evaluate needed date a flexibility any

to was with X.Xx. and calculations XX% It's process EBITDA net approximately $XXX these next fixed revenue our funded in XX, adjusted X.XXx, XX was charge important March to debt We fixed. builds to months. new to any At the note EBITDA of associated related operational within coverage become scheduled debt include had cash, and annualized was ratio billion $X.X does X our in our million construction in not

our contractual leverage X assets revenue newbuilds sold be a forma quarter, related include completed and to the roughly acquisitions of to for and full adjusting then the during pro during X.Xx. quarter quarter eliminating When would revenue the

now Steven. over the call I'll turn to

Steven Insoft

at in care Thanks, the on high-rise everyone the Senior City for our Bob, has today. XXrd on the in Maplewood memory of and work joining York to conjunction to New and ALF Living, outbreak and posed Manhattan. Street thanks Second to schedule COVID-XX continue line challenges with In The project. cost we Avenue

in and has the its due city the been allowed safe a working environment. critical construction While to order a crew provide New capacity nature has is of the of construction by to license project meaningfully deemed been the York, resource to proceed limited

slowdown combined at the innovative opening protocols cost. QX construction, with The certain infection project need the and control correspondingly will enhanced chain to earliest and the supply delay challenges for of the increase when

exact The the pandemic to housing estimate patients challenges cost admissions. limitations managing and certain of clarity costs, COVID-positive practical approximately meaningful While until opening better project will operators, COVID-XX have challenges final be unique the will on million, we senior on of the to increased difficult including date. cost $XXX determine poses an

While we touring impose quarter, census first month per was seeing strong are the bans. of buildings in housing X% portfolio our through most a X% reduction once to senior and occupancy visitation

sheet. offered Additionally, Senior extent our $X.X operators, housing little help pay large are of the land housing City Including stimulus various our end on CIP quarter, billion of of totaled were the the employers the programs. the investment from at first project, New fiscal private senior York balance and and Omega portfolio they to

are leases. are Maplewood XX% X are assets investment assets housing senior Care XX% The SNF with intermixed lease, X in various net Approximately and X master Healthcare U.K. XX% remaining in in the with our triple for leases, are of which is assets assets our Homes, our and Gold leases. for master the All X in respectively. of assets, of in master

senior on XXXX. a the living, independent basis comprises in Our and investment of a living the housing overall XXX stand-alone in This memory assisted fourth slight U.K. coverage in saw lease portfolio uptick and U.S. care assets quarter

However, recent likely on number. downward pressure that highly put events will

fiscal development adjust. outbreak warrants analysis we as quarters structures pipeline. of the have demand of opportunity remain see the several COVID-XX we about evaluation constructive to prospects While how senior cost take facility housing, our and ongoing market This an may an

make developments, reinvestment to pipeline strategic While all underwrite we development our further with existing our existing on work we operators our opportunities assets. continue of on our in progress and

million in strategic We million million in of projects. $XX.X reinvestment. invested related portfolio this CapEx program. reinvestment remaining construction is of The to construction this to quarter ongoing our active $XX.X our investment investment predominantly $XX.X and the related new was first

turn Megan. over I the will now call to

Megan Krull

Thanks, everyone. and morning, Steven, good

is is more industry least. this the hear As will virus it difficult about today, the once and in gets spread building controlling say the you therefore, of high-touch a to a

which CMS positive COVID-XX-specific in to admissions infectious are lastly, buildings and the guidelines for Our operators deliveries most new faced areas Vendors and in. is quarantined days. the for bring XX and CDC. employees by the other are entry set and of as disease control challenges, All not into numerous adapting food outside not to permitted presumptive treated with least are forth

that determine to so are or are positive there be buildings operators are they their buildings portfolios reconfigure positive fully find have to to ways dedicated their suspected that for wings at patients. also dedicated can looking residents. COVID-XX Our whether They having to

that several not will have is substantially. And grow it believe the to of grow, that instances We in buildings dedicated number likely while of these portfolio. we our do

protocols at PPE, which exacerbated cost. or personal equipment, these is following comes of challenge by best also protective increased The practice of scarcity the an

issue. an now easier While becoming availability the are of remains source, masks to gowns

of even to availability of lack has testing state the the determined multiple case with lack in only started of this who those was building, of previously those got only of the each Department to The get much Health Additionally, would in pandemic, positive tested. Through only a for recently oftentimes ease. kits, tested. some due when test with states, symptoms there and symptoms

to to through it is cases, it home buildings operators our operators for severely an shortages, private limited. of are can home by steps industry obviously working the young children of care positive others now virus, You asymptomatically, the due are already staffing, at add with staffing easier weeks which was to was also full spread. be closed. with to will departments that additional operators it any can getting needed or for this symptoms the it ability quarantined it health In take of to tested, faced hearing stay spread on spread we our Lately, control hampered tough companies, whether have to all to necessary for imagine how with will test when an as are is being schools and that the X employee number as is make control especially to strain

to of hazard in will culture to While and agency limit protocols Most staff we trying the form expect permanent ingrained operators staff. their pay, of overtime their agency be expense have expense increase larger believe use the to permanent bonuses in the them. increase, and we as are

facilities. such work Additionally, as are entrance their to are turn to hero ones. This morale in includes up the the the employees blast who striving keep morale or see to of hero residents loved banner their out operators of able stressing maintain to not things video to the employees through

All of these challenges are same impacted. coming that time the is at occupancy

additional was Security constraint and expense package of associated CARES XXXX. passed Economic operator's to was support. added on XX, the early. on these the the started by Act, $XXX Medicare tranches That home success care settings, industry. Relief, Aid, a available providing been of have flowing with billion an the fund, April With which out federal under is The March Payouts Coronavirus and stimulus the $XX our increased in week Act, or billion state Both healthcare included XX. April to XX, tranche nursing variety programs for April key with XX, starting providers

First tranche ultimately equal against to Medicare X.X% XXXX netted was billings all tranche. second was but of the

in was funds which first billion, revenue to tranche able Medicare through is variances by and second impact some amount payment approximately under facilities $XXX,XXX provides billing a believe in with buildings, with facility combined on per by future. the net Medicare, is estimated of or an obvious now, Operators to Medicaid spend, revenue were lesser trillion, to amongst The netted fund patient of resulting accelerated again, those $XXX,XXX equal some of To the XXXX the tranche advanced provided health against date, living participate services level tranches results. assisted their any of multiplied not months option. advanced to depending both that overall Medicare average as program with the and get will received X the The only at with the of revenue. divided payouts up percentage this total have $X.X we $XX which care payout

This via a suspended. X-month is been days Payback has XXX out over now recoupment period. program

December is where have X% from year-end FICA Section of short occupancy have May X%. not, XXXX. in the with year-end from payroll at the this XXXX. in impact While payback XX% May taxes our advantage through many Many XX XX, the million the operators some suspended deferral, estimated and of our XX, of The effect portfolio into This is by will through of XXXX by payback. taken March employer a participated possible of deferral of given program, employer be period. lack rates Medicare sequester XX% December December of visibility also is operators of Repayment permits Medicare others extension. year our would and to increase the window XXXX, this the by through time total X tax The did XXXX, $XX X-year for to which

X.X% an end January The The national the federal emergency month which X, in to Medicaid effect care and in from on handful funding discretion facilities to boost, XXXX, through how much made of states of to state the the to to state. lifted. is left FMAP the the long-term decision provides programs if allocate And of is which is such individual a date, allocation. only have

and are operators our and by thoughts with that employees and prayers their COVID-XX. are affected Our residents

ways try these to during operators troubling times. to continue find We support to our

CARES information as e-mails feels sharing information reimbursement including as part Act, blasts of PPE Those to with include current blasts COVID-XX to As the to topics, operators we providers, effort, such such another. e-mail variety have service instituted that on well as pertinent as regular protocols share from analytics. that the a to as ensure best place, everyone clinical have information suppliers practices, availability to skill interpretation well of best one connected who in our on ability and various practice and as information data respect eligibility,

short-term Additionally, of we our to purchase loans operators PPE. provided with some have

navigate Prior information and the source widespread as to to be and new be a for are support out with to is of the operators deal industry. will goal to continue testing, figuring a normal Our frontline of they what our faced to operators vaccine with our issues. the how development

overnight operators, back The us their As this this will with home start to get semblance of dealing to is normalcy, and there rest employees to come. long be some stay-at-home but to residents the of it long-term no relates as for resilient, pandemic lift to time start to orders a our and industry nursing care. fix is

nursing ongoing that are We necessary that recognize support struggles to the the provide in that home hopeful face the governments will for are to population and the industry appropriately. will vulnerable most federal state cared and the continue ensure the

over call the Dan. turn to now will I

Daniel Booth

going virus morning, impact on good and everyone's frontline operators, our on and and talk everyone. Today, mind, my forefront the of what's employees. and their residents its Megan, their stray materially about COVID-XX usual script from Thanks, I'm to the

As taken residents. virus their you and unprecedented operators can our on has imagine, an the toll

As March of XX, we X cases. XXXX, known had

As what and within spread at deaths. with we Friday, within facilities. posted X,XXX kits that test as were time residents and XXX say, to including XXX least become employees to this confirmed it Suffice on only our available we website virus cases, this aware continues facilities going to more our numbers climb past are at these of

with X% occupancy overall has and discussions X%. operators, between on average our declined Based on

and everyone aggregate, of given care XXX lines. in resulting operators' on of vast numbers the are on day, now and full a and an frontline front facilities stayed While the of normal When that talk up COVID-XX at part-time slightly there which cases our operators, to than due as patient routines potential In caregivers, quality scaling have positive elective through or staggering. well have mix deals Rather day the any approximately surgeries, of our fourth XXX,XXX virtually in I'd is are are our facilities, residents poignant about both the about residents discontinuation or down numbers which of environment. by for daily timely handful across I'd the life the more tested what coverages, new talk offset as the houses. amongst populations. to a Omega's first immaterial or extrapolating in providing are the staff, the of our dispositions, XXXX of and today's across is quarter quarter, approximately sample SNFs XX,XXX the like patients like to average relatively residents and what give steady

Every signs monitored our and temp facilities. a complete including their operators' several levels approximately Virtually Xx patient a times up screening staff oxygen day temperature every all before shift across day many of levels oxygen examples. Here to and for is questionnaire. of and have instances, Omega all are or in and taken to COVID-XX symptoms, approximately are XXX,XXX starting have to required their they XXX,XXX

be served to every to their are hand. more many time. most meals XXX,XXX fed room times of every On administering day, possibility, residents at in physically most our be a and medications. meal by operators resident, their average, assisted our their Medications positive dining meals is XXX,XXX with assistance one That's caregivers. operators' no get whether administered served communal the COVID a X day and Every to taking brushed, not, that's have patient have With get have a a teeth are dressed, bathed and day X medications. times to in have or

to ones is laptop the Donning daily after a PPE every every If windows in loved conducted for required for be visits with life member community iPad laptops. or on by or entering isolation a an and Normal their care restrictions patients activities, COVID-positive unit through are provided visit. Family proper every room is doffing patient daily or equipment disinfected staff well-being, cleaned must due social and or and enrichment basis and settings. iPads a facility, resident. including is to on virtual conducted exiting the on the

gym. All having a levels are patients performed due to room every of therapy therapy in restrictions patient in on

and their clothes, asked when when during don't shift, return laundry separate direct infect This the bring caregivers. every sample go is a operators' their out before small home. of leaving of a our asked uniform and quarantine families work from care a in imagine? change change they order are day to day they others goes to they family what to that operators' their of They in on Our for of residents. uniform protect Can about themselves next life potentially you their is so staff their

per their nothing is not risk serious throughout risks short living activities these just seriously social occur or facilities. high-touch, but as X,XXX day of our distancing even Unfortunately, There frontline quarantine, becoming no face-to-face These nearly carry or well. assisted multiple nursing are caregivers our in a These operators' of loved over that are dying. These place efforts times home ones heroic. efforts ill of at facility.

caregivers it the irresponsible some to the to shown premature and Ultimately, we has performance in otherwise. or this to of heroic project their any or continue of provide tap to on the stand financial has time day-after-day would efforts. subsided impact and our be behind virus Until as form staff, that given virus and past, comes, Omega, residents support to returned assistance attempt new normalcy occupancy, facility's and operators, frontline when both have their continue will their

of their losing addition In residents losing caregivers. lives, operators' our they to sadly, also hundreds their are

unerringly of has own employees for Yet day, As but their a dedicated back on who coming you quite work. families. are can this their not terrible keep staffers these imagine, impact scared to day that after only lives

one for operators to was an wants I of not the lost the "The facility to the we relay admissions. she facility a said, This decision still tears in until Within stories the informed "Please admit. been XX COO few our team last have me heroic the admissions, minutes, weeks. do. passing, the year. said, of pending the had many residents one this." to lifetime is Allow with Recently, X redirect I what cease do the We Upon When administrator new X It's made personally of in just speak stories. to who just nurse to to stop over heard sending her to COVID-XX, COO X employed staff." XXX and texted do need

frontline their lives many noticed, or saving our trying vulnerable make as who by as operators of you nursing a heroic beings risking might as courageous, media and heard most public have portraying the seen, human lives has maligned population. their opposed repeatedly of of industry difference caregivers are compassionate, the the have to all skilled Lastly, to our

front on messaging a with ACA this and with hope We lines. will real they along Omega, occurring is listen. basis rectify stories the what operators, intends negative start daily our just to on and to of try

I now up call the for open questions. will

Operator

have will from the we Instructions]. And first [Operator Siversky of Berenberg. come Connor question

Connor Siversky

very are the Hope you support much incurrent environment. appreciate efforts the to all your We well. operators under

Don't lose First operators functioning any want the in pandemic. there Has from sight framework in amidst the to the commentary situation? new question PDPM. of this regard impact ongoing to on been extraordinary your under

Taylor Pickett

changed. what obviously, was lot framework change to PDPM So individual of has right? protocols therapies. the did the mean, of I A dynamics therapy moved and therapy, Well, group concurrent it

With use of gyms, the the away. therapy all discontinuation of gone have those

talking taking I points, in As in indicated place all therapy my is the patient room.

So daily months it's put place dramatically changed a had what basis. living they in six ago from

So I put sight place -- not totally it, in different what we're today. of it's yes, but mean, they losing is

Connor Siversky

into Okay. buckets. these these quarter then the a of seems to Appreciate coverage, can through it extent on any operators had changed the of you the operators color moved moves, meaningfully the if there. like provide mean rent have XXXX? color few of I characteristics And lower as fourth

Taylor Pickett

of the same tend of but quarter, third quarter, again, speak. second straddle much so fence, a back and then lot to a moved a This operators, around. we've little they what back always did folks bit buckets, again. tend they are not down. line fourth from over back once the to them -- Yes. first had lot forth we And A to over kind up. shift pretty second we in these They're These the the on We and the -- and to Really had seen of quarter. they not. right move on downward is movement the fence to

Connor Siversky

that the Medicaid iterations on CARES provision then mean, Act, And of a any from I would be is there point? further at some Okay. expectation there

Taylor Pickett

clarity hopeful. this on but at that We're we no certainly There's point, hopeful. are

largest the far population. vulnerable by So

their they hope we get share. So fair

Connor Siversky

you just assets several are year-to-date. markets? there to one buyers comfortable And take activity. of to Noticed last still kind it mean, sell And acquisitions able OHI then on for more in would here? what me, become I what in Right. maybe for then quickly Right. external were the out

Taylor Pickett

and can't acquisition It's do your think disposition facility has on enter very, consultant from gone come to a I diligence due into to we difficult a very choppy third-party building. and activity choppy.

market So out trade, tell it's The of few between. ultimately but deals, still number at gotten marketed considerably. it's that can't they quite point. I this has deals are the down still see very we choppy. being are There there far gone some and deals But you. Whether in

I up look to talk coming think need lot clarity on in where the before investing we start and quarters. to this dollars ends lot, about more a see we lot, virus seriously

Operator

Next, we a of Okusanya have Mizuho. Tayo

Tayo Okusanya

and everyone safe is healthy. Hope

of first still fairly Just PDPM. up of were rent to we've quarter in But statistics cover follow Connor's rent quarter on all, gotten statistics. the again, I coverage question fourth about the full guess, your PDPM flat people the quarter? I would about numbers PDPM, go didn't bit expected even up you little though think it most ratios just coverage that And what bring in those a talk Could up. more? happened why fourth

Taylor Pickett

often a the third accrual coverage But So the the have you lot quarter adjustments. up in second happens December, the quarter. fourth on was over as quarter actually and of

up, goes accrual wrong this it goes it down. years, lot particular Some of way. years, adjustments went the And some the a year,

otherwise, thus, down good the was And so But and December quarter. it down. quarter was a was

Tayo Okusanya

for Okay. housing middle in senior gave trends skilled nursing the occupancy question, pandemic. and helpful. then second And color the of around you That's

X% through declines the side quickly I'm the on those talked rent X% You could side. about understand April April for implications to of the of and March? senior versus coverage? happen forward it on housing to Are declines be just Is the what how X% over going kind those trying skilled -- declines

Taylor Pickett

Okay.

that that specific. it's point seen The our little, very will, the has of we've if is and between down where, with about markets somewhere period occupancy conversations The in operator where not we last are if a the And you seeing the not in talking occupancy a really that's widespread December X% is specific COVID considerably our X%. decline for specific. they was COVID our of because I where good certain was wasn't operators pooling, decline on decline a average, more. not reported around that XX. facilities Obviously, upon I were no gone some reason in time. to So larger that certain -- It's facilities based then have question are with occupancy is

So about based they've us. the X-week our on time. in throughout not operators X% that's a point based what It's X% shared to basically just and period upon is pooling month a April, with the of of specific within

that's so as talk of industry about. kind a to And what also we the whole. It's we from what heard wanted

period, the the that's impact, a take So what started of seen have -- as it's neighborhood what in drop not carried COVID over virus in seen just to off they've X%. X% to they have the this somewhere it's beat, --

Tayo Okusanya

you Got talked of it it really biggest Is if just the kind information. -- surgery? of off, you. in what from can biggest I'm -- drop the of admissions? is drivers that of elective have coming those of declines you share curious the nothing lack just about kind is the just the piece And

Taylor Pickett

acute sent levels, times, and sicker a of a once they treated more become do. all number be you've or have they in to with cut of a because to yes, sicker you've combination a need -- as hospital. completely. of be a got back of hit down, lot specific. hospitals then the So deaths off a being higher above. facilities. number even -- care gone the surgeries rehospitalizations patients Unfortunately, It's elective in And of a hospital to number not from they the It's the because of the kind of have discharges COVID, higher It's due to lot the intensive it they got care

to have the to hospital. back they go So

that skilled really of combination say of are those side. down would the kind driving a I it's the things three on occupancy So

Tayo Okusanya

regards in just at help the I or From else Is a Omega to would the for I'm large see -- it just the what need. Okay. specific a That's like industry? how overall government industry the perspective, agencies allocation financial point, about else federal the or one helpful. state CARES from Last is they me. from from thinking of to for this at aid is Act? curious industry kind what

Robert Stephenson

addressed of of Act. the the a Act. out skilled Yes. as has think money Tayo, I substantial CARES it and Act CARES Dan the population that been not of Medicaid allocated is has briefly nursing mentioned, There's CARES amount And facilities. money none

of then So that positive activity additional allocation increases. where some facilities you that dollars dramatic outbreaks facilities of that correlate we'll Medicaid the to see thought to in in dollars some allocations is COVID likely correlate cost and see

that HHS the been I that see are think move we and have prongs hopefully, those forward. discussed X

Operator

have And of James. Hughes we next, Raymond Jonathan

Jonathan Hughes

efforts deferrals, I to they partners much tenants caregivers appreciate the and about of May? the in and the SNFs senior Can versus rents for grant this might What rent How talk plan difficult in from of and April if prepared asked any, mix be percentage all monthly that you time. remarks you, may housing? you your comprise? during

Taylor Pickett

right? May, Xth, But in of request gotten early as It's rent for today, deferrals. the we've on no

Robert Stephenson

that yet of time. And in the clarify, deferred not rent rents, is this we at deferrals due. we -- collected with And rents of status X% still rent not haven't discussions those they're -- we're formal any in not the April tenants of rents. don't Jonathan, They're the our point to of are just any April, about for month have the that but we have

Jonathan Hughes

any Did been there deferrals but I ask you it's said I any hasn't April? for in in. days May, mean, yet, know only tenants five

Taylor Pickett

three. Not want. we immaterial that more couple, and none builds than were a Those rent

Jonathan Hughes

And mix seniors And were in SNFS? okay. that the asking. understand -- handful Were mix Just to there what trying asked, the be of mean, who might I they housing those some was there?

Taylor Pickett

the operators SNF it's part. No, for most

Jonathan Hughes

right. All Okay.

until that On now of the match rent date? renegotiated project, Or that's has year being the when been paying Second delayed that quarter Is operational? to earliest. I project Avenue until the at with is know this delivery third Maplewood up that

Robert Stephenson

pay of those credit conversations plan we any have with open haven't was because to time. Maplewood but line now adequate in Frankly, concluded Maplewood we're has a earlier, collateral. They of discussions point the that continues this rent. to at in

Jonathan Hughes

Okay. external of at guidance. then of a bit versus growth with one decide me adjusted? to I Why end day, mean pull And no on triple-net the last a guidance question. did this are the lease higher-level you you withdrawal, REIT for the

there's care their REIT most across least has I figure, a lease was Corporate month. everywhere you But of -- and week. triple-net uncertainty. guidance withdrawn that run mean, maybe collected space another rent like of of REIT America, health no in could You the rate your I And at run and maintained XX% understand rate it been seems maintain there last last guidance shortage

understand So that what you I'm see to to caused you it. better trying just pull

your process outlook. share can you about If the thought there

Taylor Pickett

Yes.

just And the is around Jonathan. of this really the been comes next don't look data government that. it It's know think to I what we industry. has going depth to and like. of date know critical to give to going to And we pandemic, be duration one government is -- no able round the support you support to

that unknown with So just an you time combine frame.

doesn't We substantially do important in our today. that's whenever any this at see business end drivers But the thing would just to perspective from the business, the a our the mark. look big we're I'd that the all we rather it's our just reflecting and it the not of what we demographics, in that be return is where And guessing, pulling interim, think I guidance. reason and don't comes that. question is of and pandemic,

Operator

Next, we of have Nick Yulico Scotiabank.

Nicholas Yulico

I the to skill hospitals? helping could of is drop sort early expectations very maybe how about from anecdotes whether opening on again the you're And talked operators. serving but also if that states number just about about occupancy elective of thoughts how operators know were for to I hearing terms up go it telling already, procedures What nursing? it's Any for any early, the back in you worse get from here? occupancy that you want

Taylor Pickett

Yes.

future. do out out So to I a limb on predict this my operators virus in going the going is of mean none what to were trying

to occupancies becomes occupancy, that to surgeries. to states how point, continues might I if would facilities and missed haven't open up, might have elective they But that rumors of they're going state continue occupancy when start what's doors actually no have date up it. widespread, lighten stated At specific start to heard to If that's We've improve. this their to up. specifically starts the heard they said going for to elective it allow more have I surgeries. open obviously. has any for to a to So I know it start that idea none to certain that got suffer. affect -- ravage going theoretically But should

Nicholas Yulico

back when Okay. at that? getting skilled see short-term do returning some to to given for of so key can I guess, back you Is amount back normal. need been skilled federal return that's math about operators system you and expense the here pressures is to June, about industry How facing normal? so run about that component -- look your aid operators that lifeline normal, the industry, mean, are until pressures. I to nursing When a have July? we sense your occupancy far obviously, that's the What nursing hospital think to you this should the a

Taylor Pickett

fall, without that support, Fair question, Act dramatic. know we things whether by obviously, happen the don't -- it's can or out But put CARES been some another impact clears be fair guess Nick. know. seen summer, stretch a If reasonably what I the amount which, Yes. going think, of into isn't together, with distributed consistently there's we of We that would pandemic not. if that's government the don't in distributed. I that be money to that the we've to difficult that all round point only going still and out hasn't

we see elective Texas we states look to So and up other and and what it think at you go, be surgery, today helpful. to is this I going you know that's start okay, if open

willing in that what individuals other I behavior get the go I hospital how know thing to for you're we elective a saying. fast up. and think surgery It's that the terms yes, of human to ramps don't But TBD. is

make posted from that's The terms cases. of we've our what would website on think kind reason facilities I heard our we've with yet other we in of is up another I operators back. comment pulled only every Friday

So positive little velocity in growth one least the a a declined week-to-week is the thing has little facilities of bit that's at bit.

another So positive remained that And relatively be where cases occupancy helpful we if buildings net have that have indicator from stable. will perspective. that's occupancies we and the have overall COVID an

mean, all goes have the into color. that's So I equation. Hopefully, don't answer. I ultimately, enough that the

Nicholas Yulico

you question, thinking It's a understand. I yet, gauge. there facing are the it rent just but come deferral pressure. in they run get that tough how Taylor, short been you're saying, I industry to hasn't feels like about request last Yes, if more is the many as I little guess in?

removal are place a cuts. this sequestration through you there and benefits and of then You period are lot get of get normal, back the that PDPM, to in via

the of what going exhausted approach a Are federal you're your rent deferral play more you is there? to next of a out to operator a if make we this that sort should Are could versus you permanent is be? level going think program to rent fully request sure going every So month, getting to deferral likely sort give your here about are you -- of How for cut? portfolio? out still some what month,

Taylor Pickett

it. you've described Yes,

up when the would likely this hopefully normalizes. And be the that on sheet that out liquidity do the then of the have we all and first there would sense if hang deferral in operators liquidity, of all have good So step is in liquidity. a to form exhaust opportunities terms at that picture X, be might that a forward support in need of step we recouped And be balance our basis. of

or cuts the rent And in think not to environment think look in going you come just where of code. us. don't to in I today are to an going I at that that return see we where somewhere left front as only we're landscape we

Operator

Next, we Citi. of Joseph have Nick

Nicholas Joseph

maybe the the on Just necessarily and maybe that not month rent first. I terms of May in early throughout collections, recognize in month the very rent and is due we're

you May for few of few wondering first seen of was least where on days first to there's the the if I April? any trends So for were days collections you've relative at

Taylor Pickett

are early all month. throughout Yes. expect not contract go It's contract. we No the of the the too They I payers but the normal trend. the that would mean by it's rents first We've just in had early. month. our month,

in So any really first May. couple from of for nothing pattern the days to glean

Nicholas Joseph

far? So far, that request the from be no rent at earlier, given collections April, May indications comments different least there's would thus

Taylor Pickett

Dan our time. that the say early April dialogue the days to and team this we've But and with at point of to seen operators, his in have Well, too again, couple had I'd based it's similar know. on it's just

Nicholas Joseph

maybe quarter, next levels earlier. you should that that a assume now, discussion start quarter on PDPM XX And higher given and and coverage the and from be fair a coverage to to of it then reports we'll subsequent impact just in COVID there? from then it's the report following from up trailing, quarter coverage months when Is delayed see

Robert Stephenson

some to impact March. with see COVID going Well, you're in

had that And to given talk the we about coverage, fact QX so our activity COVID-related facilities I'm very March. in hesitant in occurring

what predict. provide first expenses facilities. quarter hitting But of to terms we'll the pre-COVID color early saw around too we in Just

Operator

question from we Bernstein Daniel One. next have will Capital come of The

Daniel Bernstein

needs it asset And too you your maybe for in all to at on of that permanent issues. predict were Or decrease about residents think tenants margins? and classes? their in between wish about touch is those expenses, early terms or skilled where skilled the to are you increases a and that? in larger well. nursing then need Can seniors Wanted of which seeing me differences expenses is margin think long-term, talk something expenses that the to We those of your seems little Or what seniors are for housing the up the nursing is kind increases? it expenses we it to housing following and one facilities? of of in expense that, bit equitable you kind decrease do that permanence the on Is a

Taylor Pickett

used become Well, have in-house pandemic I that's house. considerably. mean got listen, tight, A labor up was the gone much SNFs was and Labor into and tight across up before costs obviously, and both the PPE we wasn't SNFs. sparingly of board has in only this pandemic. something used PPE, before increasingly pretty this lot in gone

the pandemic, in I'm a of backside for still have On you're PPE pretty being to sure of some going amount time future. that this the fair utilized

of in remain will part cost I that think place. So

labor Labor. It's to costs. walk easy them back. to It's increase hard

part in got into than quantify of this impossible before to try higher we think be those situation. they order that would But stay were this will at I So in some labor to costs point.

Daniel Bernstein

Okay.

costs going seeing little you're industry, can you of extra design if that kind I in on forward. the and permanent could development to the a going Avenue, are? call side, them those be detail changes, being cost What architectural that made the the the are terms know on seeing skilled. Second more architectural issues of changes to bit are assume on that's In how bit maybe what little that's And facility? half both talk just within something clarity or changes you're a you those especially give that don't applies more design changes, seniors I more second and for

Taylor Pickett

to want do take Steven, you that?

Steven Insoft

to cost as some that because of increases more on. have The And pandemic COVID-XX Sure. expect might then you the do increases goes delays. time estimated just we're there of at are with Second the course cost Avenue in ordinary that

the There's the development building was Second of rooms to changes would affects beyond as architectural But create some point. discussion at state effectively this just around which is Avenue. architecture negative pressure going putting We're some that beyond additional and that that, you of forward in the As none at finishes building. activity. far changes,

Daniel Bernstein

Okay.

seniors that? or Do nursing. Okay. There's views have guys on might whether housing or to threat skilled talk that you a well been telemedicine, any telerehab some telehealth as be

Taylor Pickett

allows place caregiver useful telehealth in I hospitalizations, stretches perspective. ability rural think using in big the operators a very you as well facility take for residents a a it particularly longer It to our ends of settings. versus up before benefit. were this percentage of skilled And care nursing from pandemic arose. It

a So higher housing it's same senior I you the acuity nursing have from skilled frankly, facility setting. plus think setting, think I And answer. a the from

Operator

Street of Hartwich Lukas have we Advisors. Next, Green

Lukas Hartwich

portfolio? you property for facility in per was what's is. I'm curious OpEx context how received? more you could the provide of just average if $XXX,XXX assistance helpful Can per provide the Maybe government that that your

Taylor Pickett

were increased was $XXX,XXX average lot helpful. the will to is it's received the obviously, obviously, they I mean, a which help extremely of Well, $XXX,XXX -- an that -- offset seeing. it that by we facility costs they that

go top OpEx know to want I my hugely the So facility, try cost even per to was on don't it important. of head. Average there. don't I

Lukas Hartwich

does cover on number estimate? Is that Is $XXX,XXX? there any Like of you OpEx? sort that of for months there that, some can context the X

Taylor Pickett

fair back Yes, about to and right. without that his couple -- exact can up team a I a of circle -- think But Dan get that's number. and you sounds the months, you

current seeing OpEx, In COVID-related terms OpEx of are dramatic cost increases. COVID

Lukas Hartwich

I be on could strength, hoping then helpful. of a you would level there weakness? just Anything there market context And Are provide performance. Perfect. was pockets little more

Taylor Pickett

Omega obviously if mean, been New still obviously, the than presence New Avenue has most have has is doesn't COVID some building, what Second Jersey, you which I Well, targeted affected other targeted -- really I York, the that's mean, where a heavily under markets, mean. construction.

those largely hotspots remain Detroit in Area, other in of seen areas. a kind those Orleans, -- of some Obviously, Metropolitan upper terms portion South the seen we're X left You've -- alone We've still the of Washington. large Florida, those, numbers some seeing. New in some it been of hot that Midwest in has the of

are markets be to yes, much affected there than been And couple So of... heavily have others. seems different more that it

Lukas Hartwich

to really, or guess case by and EBITDARM specifically EBITDARM see that, market, guys of it's I more all you draw and Omega's for some case what's count the Because all provide that by metrics. counts hard to meant anything But we to does portfolio, then portfolio. a happening occupancy, And can I like revenue maybe conclusion what and that. those EBITDARM,

Taylor Pickett

count factor April what XX, XX% pretty other EBITDARM. guess, the We at reasonably government positive more can -- just We terms national color, is you perspective understanding in consistent with XX%, data to facility we even need the we're cases. don't a piece to just give with don't of payments. We'll have think data. look of I I facilities as XXX positive of a immature overall have in relates EBITDARM, It's our lot start our The from our it that's there. exact when we expenses. of know As to that portfolio, hearing facilities about you X to is at

news. to decline. it's count good extent the see And So for that that's to what That's growth facility seemingly about we're worth, starting percentage. the

Operator

Instructions]. [Operator

of have America. of Joshua we Bank Next, Dennerlein

Joshua Dennerlein

one me. quick for a Just

why tenants operators lower Just any common Did have For theme on was insight helpful. -- coverage? they were they didn't they X% harder didn't any Do the across with that there these be there pay? pay, hit would of COVID-XX?

Taylor Pickett

of to this rhyme or at say, that, people No. Actually, no to point. there there's was wanting than not. hoard But have liquidity would real other I kind reason.

Operator

At no be this to there time, further appears questions.

conclude for ahead management call now turn closing go the remarks. team the and to over to will like session. would any today's question-answer conference We I back

Taylor Pickett

Thanks, safe. Mike. please Thank you, joining everyone, our for call and today, stay

Operator

And And you again, we lines. thank your also also now of time, sir, disconnect call you, conference for team has safe. the At ended. you. the you At this Thank time, time also stay your to may this rest management please today.

Omega Healthcare Investors (OHI) 5 May 202020 Q1 Earnings call transcript