OHI - Earnings call transcript Q4 2021 | Omega Healthcare Investors, Inc.

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Operator

Good morning, and welcome to the Omega Healthcare Investors Fourth Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. Please note this event is being recorded. to conference like Reber. to now would turn over the Michele I go Please ahead.

Michele Reber

and good today and forward-looking are dispositions With limitation, of portfolio our Taylor cause you, that which Comments as most morning. involve Form Thank materially payments, business and and restructurings, materially. releases cause conference our portfolio this outlook regarding that not me may financial Vice to the of results filings be and Dan from call on CFO, report generally. made during statements. identify Senior forward-looking Pickett; results in factors Booth; Please may These without or our are Securities financial Bob which Krull, Stephenson; our condition or to such our Megan XX-K, President facts Operations. actual recent COO, CEO, our statements those may prospects Exchange operators, rent acquisitions, contemplated press projections, statements and Commission, transitions uncertainties, historical or events differ differ forward-looking see risks statements dividend policy, actual specific including, with described Omega's and

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

operators on by turn the financial been coverage we information operator by discuss call Omega. our is certain now data based has that to over will verified independently addition, Taylor. not I and provided that In

Taylor Pickett

nursing facility quarter you our skilled industry quarter Thanks, and operator liquidity conference our will discuss fourth morning, XXXX Michelle. and Today, financial I issues. fourth earnings joining Good for results, thank call. trends

are quarter share. FFO share per distribution $X.XX per is available for fourth Our adjusted $X.XX and funds

We ratio cushion have of XX% and of for quarterly per $X.XX have FFO of to XX% Dividend adjusted payout our distribution. at dividend funds maintained share. available continues

which nursing skilled area in facility One are trends. over shortages or Omicron occupancy and COVID may at has to ended recovery nursing hospital XX, above which worse the flat December, indicate occupancy is The skilled X item occupancy patients knock-on further as January virtually systems. difficult slightly the quarantine. have facilities months stress. to backing labor occupancy XX% residents, levels, to down. up December Omega paused and many facilities in has became industry limited These occupancy admit shortage is staffing full facility forced is new that created for ability and achievable Turning has been the effect increasingly our that already the recovery preliminary infected pre-COVID labor of staff had the were SNF time. interesting of grew force Unfortunately, the

to impossible appears the impact or rapid will traction how subside. predict and industry pressures current force regain the is the rapidly transitory, of Omicron recovery be it occupancy labor Although will to quickly how

include if or provisions. of transitions or issues. deferrals; usage. restructuring. of operator, of will the regarding Historically, or two, and operator; include are assets. provide liquidity liquidity Examples protect not to amended flow I options, following new or rights value current these actions and have the Dan our future of enhancements, and resets, the potential upward renewal one of restructured many operator certain outlined extensions the most, in restructurings, lease rent of to long-term to resets generation the and actions: collateral or detail asset more with restructuring that rent sufficient lease and efforts rent revisions three, a sales from Turning all, issues elimination more specific purchase of other general, cases, in cash one our In adjustments one, assets

the We covered of a yield remain restructurings that continue our similar result. outcome will hopeful to

operating Finally, call I have I now caregivers and again in for within who thank Bob. tens our particular, turn to our thousands cared partners of residents staff and frontline the the of will the facilities. over

Robert Stephenson

and good Taylor, Thanks, morning.

to quarter. financials the for Turning fourth our

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

lease for outlook of XXXX. fourth write-offs year-over-year basis provided last decrease to quarter in is net on primarily to approximately $XXX other quarter quarter provide earnings these in call, certain or million XXXX as line $XX question, updates a million adjusted quarter's in per In and for be will for both cash $XXX in $XXX to quarter fourth and of inducement also the fourth a of The our before revenue in the placed website. Revenue income compared was supplemental our updated items those fourth several to outlined the and operator and prepared commentary a Gulf million million excludes $X.XX related items on talking Dan the I answer one in nonrecurring and straight of on release his to Guardian I a adjusting the Coast, our on for an our result revenue found Guardian. in Our XXXX. Agemo XXXX on was operators. quarter of points. and operational adjusted status the tenants providing reconciliation QX want our share FFO FFO earnings

million obligations with Coast. $XX.X balance prior to the ability To our any QX, rent we unpaid debt be Omega. regarding against revenue related XXXX. not quarters, continued recorded offset Gulf only within At sub we and Gulf consistent the to of revenue fully of by million in therefore, based included XX, was recognize of the QX was sub $X.X First, In debt on FFO and FAD. December adjusted revenue Coast balance exhausted, will owed

November paid Agemo. million. at QX, and rent recognized applied only security partially in QX will deposit any we be they are additional Agemo Agemo extent and XXXX as to the payments October's balance the interest $XXX,XXX million remaining of rent a interest contractual approximately basis. In $X.X of additionally makes $XX rent. of October in to cover Looking cash on

only In basis In Guardian. in make to as any QX. recognized any QX, failed XXXX, as or to QX record makes placed was they and a to XXXX. we payments, payments revenue Turning Guardian a on no were the in interest extent cash revenue result, Guardian QX will rent

make X.X% and mortgage interest annualized an January its and not in rent representing revenue for of contractual revenue additional adjusted operator does noted did contractual quarter remains as only. for its amount any Lastly, our a under the press on rental for payments earnings the agreement include release, and rental $X during straight-line QX basis a million ask would short-term lease first we operator, forbearance. If FFO pay recognition, of due for not revenue purposes

FAD will cash received. based we only on However, recognize

Coast Moving and reserve of losses million recorded the million the a related QX XXXX, loan $XX we to reserve credit CECL. In mortgage to Gulf million $XX $XX primarily loan. and by provision Guardian's DIP funding a driven for

cost taken further balance the we've sheet. during of to maturity liquidity, to strong, capital steps XXXX improve to on debt. It thanks the our our ladder Moving stack, remains overall and

$XXX notes April of the March side, XXXX, million XXXX. issued of debt of X.XX% senior due we On in

million mature and EBITDA was It's facility, $XX bond funded facility At adjusted we of maturities collateral and NAREIT swaps into leverage-neutral maturity. to us LIBOR-based bond our were offer on X.XXX% on to XX-year outstanding annualized currently balance cost fixed million closed X.Xx. an had cash. In $X.X new and was million no due we of XXXX. at XX, interest XX, had of in net we issuance X.XXXX%. We average when have significant tender and important note revolving billion related note we of December In to with certainty $X.XX of also expire approximately was discussed. used recognize EBITDA in the adjusted At X.Xx, in that a of $XXX we revenue and repay a April provide on $XXX FFO, both term entered of used these Our ratio XXXX to our and December proceeds debt XX% our our XXXX. a operator FAD, borrowings. our fixed unsecured apply unsecured as March until in calculations our and X-year to notes liquidity These swap XXXX, previously rate billion million XXXX credit to debt repurchase charge FFO rate to coverage similar of credit in swaps refinance ability to XXXX was no $XX includes XXXX, April with over borrowings our August non-payments our loan

decrease However, ratios. when our EBITDA fully will impact collateral the in a exhausted, liquidity

XXXX, May in issued X.X a primarily of our $XXX side, new million we program. $X equity proceeds generating program. common XXXX, billion through Throughout cash established we the stock shares Omega gross On ATM of in million ATM

further with a upon We disclosed, provide stock call and through actions may provide to evaluate previously $XXX taken common our steps liquidity driven the to The that with business, the As turn additional of value. our liquidity Board over enhance COVID-XX. Dan. authorized Omega's impact us January flexibility to to repurchase of now tools Directors XXXX. of be date continue over also we on months to our the outstanding XX significant of past us in or I up by million to the actions to XXXX, believe shareholder act improve needed taken need March weather and continued the primarily any will

Daniel Booth

good and Bob, morning, Thanks, everyone.

of XX Omega XXX operating portfolio approximately As June states operators EBITDAR Trailing within XXXX, X.XXx and facilities X.XXx of versus core were operating EBITDARM located asset period and XXXX. These respectively, as X.XXx, portfolio, XX,XXX for coverage and trailing XX-month decreased spread third-party and XX, in XXXX, XX December across the operator beds. X.XXx, facilities the XX, with September our ended XX, had for Kingdom. to of United XX-month an respectively,

$XX operators $XX and XXXX, the and quarter for our compared quarter. when in EBITDAR Trailing was the stimulus third XX, funds excluding federal compares of second and During overall million core stimulus the for federal quarter federal decreased without coverage portfolio stimulus funds, of the second and would and with standalone Occupancy portfolio quarter as have quarter our million X.XXx respectively. federal the for X.Xx stimulus X.XXx X.XXx X.XXx quarter during in third funds. slowly This $XX during to excluding million recorded for of and federal the core actually continue occupancy the of benefit approximately high XX.X%, coverage the ended our EBITDA fell off reaching operator in December, slightly XXXX respectively, from XX.X% approximately of XXXX to the XXXX, cumulatively X.XXx, of Omicron including $XX the compared XX.X%. second a recorded XXXX, throughout of in million up EBITDARM funds. stimulus XXXX, low XX-month result January a of X.XXx up to robust mid-month to of as September slightly respectively, variant. trend as to mainly January stand-alone X.XXx, to a

to Based basis is housing at this compared point of to-date, second XX%. had terms senior XXX end and senior portfolio. in investment memory as quarter. coverage portfolio to the what third January assets basis overall to independent mid-month This received our in living, EBITDAR Omega averaging on the the on our occupancy XX-month for reporting X living Kingdom. States approximately Today, comprises has of United of fall care pure-play quarter Turning its end the and X.XXx trailing the lease housing portfolio assisted a United the

matters. XX, bankruptcy XX Chapter $XX October Coast million XXXX, annual X% representing operator Delaware. and filed approximately revenue, Turning Gulf On in of to Wilmington, for portfolio or

properties, the a change [vetters] Gulf to closing were management XXXX, via the of December Omega the to agreement. into third entered the quarter an the Coast sometime party. operations, and Coast unrelated with separate sale upon of agreement third and of XX, early the of transfer Subsequently, December facilities Healthcare]. As purchase sale XXXX, XX Gulf filing, the that usual part XX anticipated facilities management Omega's and of and XX a XX second support [Inspire is into operations for conditions. sale to Since along The X, a agreement the the ownership of agreed party, in XXXX, subject on of restructuring the that close time, entered on of unrelated of Omega to transferred

all As or call, Omega large that portion referenced of X paying have other has earnings on material previous contractual rent. ceased our operators a their

drew November upon paying with every and million first, Agemo due since. Omega interest our month for August, August revenue, approximately September exhausting $XX portion a pay of representing $X.X X.X% million of Accordingly, existing rent October, The thereby approximately or annual of rent of deposits. stopped exception and of the XXXX security in and deposits all to

in portfolio. of may are discussions portion sale ongoing material which or Agemo, We a the discussions involve with re-leasing of their

other of XXXX. $XX of X.X% revenue, The approximately representing October to interest operator, or pay annual since million rent contractual its has Guardian, failed and

We third ongoing of to active of involved have and party. been discussions is and number unrelated to with transitions such in this facilities significant the continue portion transition being finalized. be a an portfolio exact timing to of The still Guardian

for million an Turning had in on care transaction XXXX, investments. $X capital million XXXX, purchase Separately, to Omega expenditures. Kingdom. made one in purchase totaling United including lease one million new $XXX Subsequently, transaction completed Maryland. an lease for January skilled In January on Omega $XXX the $X XXXX, facility investments nursing Omega XX, new for home X, million, completed

divested approximately $XXX now fourth facilities quarter. to Turning including call facilities turn of in In the $X to XXXX, dispositions. X million for Omega XX I over million, for total a the will Megan.

Megan Krull

Thanks, we last Omicron both and staff month levels since seen residents XXXX. at not morning, from COVID have counts case the over resulted case January and everyone. has in of Dan, surge good combined The

However, where pre and nowhere the death near severity, hospitalizations had rates are they vaccine. been

meaningful continues is Agency residents much impending staffing quarter basis exacerbating third it staff the the clinically, which for And in recovery as was staff at approximately was more CMS and staffing increase. is care itself with XXXX while day given not the while per and of expense in turn impacting issue what increasing So to in it Vaccination rates staffing-related and core portfolio than industry the seeing expenses. for our occupancy to federal an data patient respectively, with Xx XX% on to is already according XXXX. percentage continue be strained mandate. environment XX%, substantially to long-term severely a the movement improve also in industry, Omicron proving

approximately For deadline the not February late starting announced the states billion a in from Act the the Relief vaccination $X.X Provider that preliminary the other mid-March. were been that been intends to in November having is Phase billion $X.X the part CMS enforce a injunction, with of out billion XX% full approximately September, the for states out with have in having $XX.X deadline Of with applications nearly starting starting release Fund of providing been to benchmarks March, a Rescue to mandate XXX%, And proof processed. HHS funds of December, been days. of nearly with to the $XX via billion of process enforcement survey out potential American achievement in of XX applications up and X plan with push paid processed. paid certain the action payments in in XX% have any reach

call the support increased step day. of Approaching prove this right out, pandemic forever close to cure X every face more this with and other just relief full all. dealing day will what this shortages and are from will care While industry not years the that a new a it where to first increased to fund the this needed change is I had as costs. almost in from staffing of challenges additional in release up than will anywhere with open provider been, round questions. And continues certainly day is a latest ever deal long-term the hopeful be has we changed has now now funding it to welcome and administration unprecedented Governmental direction. been be for

Operator

Hughes begin Instructions] from We first is will now [Operator James. with Raymond session. Our the Jonathan question-and-answer question

Jonathan Hughes

quarter Gulf first in not in Agemo. the think, deposits I fourth will aggregate Bob, that from could be know security to you income please applying the maybe I $X.X it’s the million like from that the that quarter? was you from booked $X.X like confirm gave Coast figures, million

So Is that is right? $XX about that million total.

Robert Stephenson

for Coast. No. Gulf $X.X The million The is Gulf correct. Coast

only $XXX,XXX. was For Agemo, it

did mentioned, did rent I -- The second they pay, part and Agemo pay Dan a November payment of November. in the they as mentioned

Jonathan Hughes

that's the And last time.

Okay.

last the that's So time.

you the And did just of the January? I'm enough. maybe trying is rents in X.X% operator then the can not representing location that who Fair pay -- share of what to Okay. for of location in operator blame summer? last XX% XX% partly understand they're to no is that if that included the identified And longer was at-risk why was the to paying? rents

Taylor Pickett

that So several states spread South. operator is across throughout the

fluid, I a still we're story, operator. common struggling new with was think same very sort the development, labor. they're ongoing it it's in It's with discussion of -- all the in South and very that

Jonathan Hughes

rents. last of identified in maybe Or analysis, that XX% this was And to I Was that this there's kind is one? of that an summer risk incremental -- think, done operator bucket? XX% Okay. that

Taylor Pickett

was. I check. double and believe to I'd have it back go

Jonathan Hughes

reduce up your yesterday, $XXX And -- funding just can I Okay. Tallahassee a Bet largest proposed Florida is that is I Medicaid on Senate follow and the state. that. saw which that million so the increase, which contractual per have SNF. by the funding rent figure you -- almost annual is half or state? that properties of the amount in XXX Is for roughly $XXX,XXX

Taylor Pickett

of start up always have how which that with to also and a tell up done for I forth hope math, one, very that was mean that have back look that a rate go But we honest not increases. are to bit what would I with math. a out, will thing. to of with and push to bill But house, see do like high we we shakes sort this -- end to haven't But will with rent same be great time increase. you. what the -- the at at me through a is next the I such It the budget process put getting another hard math any passed. just going they're be

Jonathan Hughes

But me. that expected The timing? for to on maybe one expected clarity or some Okay. is the under expected contract on Yes. the that shortly. more Hopefully, What and House and be current sold we properties last contractual sale price from that get are XX the yield maybe

Taylor Pickett

Jonathan. Yes,

So and in give there's the around quarter timing, hopefully, XX the there didn't was XX It's hopefully means or in be remaining a the listed for involved price. but timing that -- that we million, buildings wholesale, next held sale, so. approximately $XX they're will for since

Jonathan Hughes

rent, that’s the -- maybe booked. that And was currently Okay. being

Taylor Pickett

Yes.

those fourth So the rent. $X.X buildings, million related quarter to we in of booked

Operator

Siversky question Berenberg. is with Next from Connor

Connor Siversky

here. Megan for couple a Maybe

we're while cost on based data, hourly labor it, around most down, So the up headcount of is XX%. XX%, BLS recent call the is employment that seeing SNF

So framework, what percentage sense us I'm wondering to is force currently agency the within that give of attributable labor you can SNF a labor? of

Megan Krull

Yes, I think determine. that's pretty probably to tough

obviously, certain any haven't know obviously no at agency large there, buildings the than any with for current other point percentage at agency of out being due in variant at workforce have their looked used it people a from then agency COVID you and perspective. is And quite have with more a have in affected that but bit buildings you all the I hardly and operators We Omicron where time. being very given more quarantines that general. are some others, in staff to it's or

Connor Siversky

Then your labor there? a the Xx I in message about cost that I mentioned standard of think Or pool? had Okay. that am you remarks, prepared your was mixing

Megan Krull

that in XXXX, It's we agency about Xx pretty which was the minimal. had usage

gone So much up over as just time. that's of total how labor. that it's a percentage It's the not

Connor Siversky

of then time the in this environment? would I that operating like, mean, basket think the is But a view sense do given favorable? what come as question. current abstract of increase get what know approaching draconian when a you an And could looks of I we you what year ruling could as mean, of preliminary kind rate the I we the are then, bit And Okay. given

Megan Krull

gone. X.X%, given along year higher I X%, would bit that pretty think have think something you mean would I quite me. be given costs was, gone, last line. I That to where would to a be need costs a where have what, draconian

Connor Siversky

Okay.

And on one all another I you with agree think then there. occupancy we'd trends.

a can that recently Guardian, strong in You pretty reported increase believe, see referrals. I

these coming was Do tune will difficult to are given months? in mean referrals get picture? of reflect Or an do sense what here, gains mean patterns remain I the about occupancy that think those labor in admissions occupancy present? increases the the at it to translating I I the you ask XXX%.

Taylor Pickett

say are you when of about Guardian, what you talking -- talking you're Kind about?

Connor Siversky

Nursing back. It came the of couple other weeks News, out Skilled a -- of

Taylor Pickett

aware Megan. that. Go Not of ahead, Okay.

Megan Krull

what who -- can't aware a about Yes. I'm I us thing the telling is but to surges bit while but they don't we operators to it quite don't going I only the staffing ease right? have We'll the be because quite yes, some isn't for are down. take now I a of out there in think the only been have admissions it's mean, it those them translating environment. see the once Omicron have and So that issues staff, thing would either, necessarily a if go the translating not say up they certainly start number happens of little

Connor Siversky

And Okay. for question last then me.

mean, you or about where maintenance have? of portfolio these the would to and pushing buyback, of CapEx directly them kind cost projects given capital the ongoing I improvement your the or sales. environment the I capital proceeds the perhaps current potential push share thinking mean the it in to risk push do you acquiring seek Just sales? of you assets from to

Taylor Pickett

the incredibly So pipeline deals in is but pipeline. Connor, -- the have active, we still still we have

and buyback. capital -- those the one think allocate tool have -- pipeline I we the with share deals, And we then is and to I redeploying And into about we then the pipeline So have step if deals. toolkit best think back step way just we don't the that capital. think put

would we potential it's leverage-neutral have use we that's But the -- basis. we that, you use tell wouldn't to something a that only on I So lever. -- will

growth. and a been not last is our where our which do to taking us we're for current we have supporting always thing priority pipeline route. go So want that be that have the we The the out tenants. franchise support But is equity, tenants, in we'd deal for to our

Operator

is question Citi. Joseph from Nick Next with

Nicholas Joseph

at I above a overall portfolio industry think that your stalled or levels. mentioned You has XX% said but occupancy you is pre-COVID bit, of occupancy

facilities? know if geography XX% seeing what differences So those don't are struggling? it's are versus still that the you at other labor different I or

Megan Krull

really a seen look a that various percentage affected how quite a originally, dug that buildings, concentrations, at they much size of obviously, had right? correlation items in We've COVID far other if had bit haven't originally, to that So for that's but they state certain were did drop of other so There's and piece than to than a it at bucket non-SNF, larger them drop. within that's it. to we longer come back, they more takes XX% drop originally, percentage in smaller bucket, to a be look

they're little bit quicker. that's So coming why back a

Nicholas Joseph

it the then about And numbers. lot on noise of of other for collections remainder thinking are and the of terms year. there's the rent dividend. a How in in the Obviously, uncertainty just you

You declared you how first thinking dividend the broadly? policy But are of quarter more already. just about the kind

Robert Stephenson

but with we're example guess extent impacted in to through flows had. dividend And Gulf be the is Coast that these consistent the that to how with it our restructurings, minimal, are be policy. -- cash impact I about a have talked that we'll we to past, think I then of going is the Consistent or the working we long-term going best not we've view

we'll collect redeploy. any up end in to $XXX not going assets $XX million which net because call have going we're in that we're bankruptcy. them, it, by We with, QX, But to rent and we'll redeploy million selling they're rent, of those

call policy. transparent today, dividend the our end change evolving same, is the "Hey, situation I be this a unless flows, Gulf policy going impact push and dividend. the to perspective. the forward ultimate environment. to an from a think So same Coast changing What restructurings knows, as a say, some is the there's no on we're on reason it's to to cash that up can. we're other And in We're on extent of these we not say resolution that cash the I'd everybody realm going jump we long-term our see and as But flow as

Operator

is with One. The Daniel next from question Bernstein Capital

Daniel Bernstein

not understand XQ? just be to paid versus to I expectations your wanted back may rent for are Agemo kind January in and and go what they of have XQ rent

Taylor Pickett

rent buckets paid relief they did -- January. that of they X the So the buckets out are would the to the then as been last of federal easy what will was the December, did amounts funds. came gone we ascertain quickly, be of have any pay government more were those not they in pay the speak. there that call which I recipient distributed. There's not was applications, November, kind they provider through They relatively still that and being not able month And complicated of monies paid

release I in likely the that in So Coast. we're rent expect forward, short we going the be any significant but like to who Signature Gulf source amount to it, of be fairly it will Signature of run. of our and we're going will going long chunk probably portfolio think of for much the a to sort slice doing that coming some provider did a off including that's is significant not a sell of that there In either or run, some that -- and funds be operators, do lead get funds in first round,

Daniel Bernstein

Okay.

in Jonathan that's No, then funds to color. earlier, RPRF Okay. said ask back funding way the great and guess, Medicaid some is, Yes. go is guess the other labor? increase in wages there? the that to to right just government better out PRF Texas. operators I in trying potential And just a I the, support you've the SNF the in to look coming you maybe relative increase in, environment, the for compete allow got at enough and maybe it to Florida, to funds Is a labor shortfall

I So really just nurses? bottom can think that's compete SNFs the for line.

Taylor Pickett

it is be seen answer don't this but plays remains yes, short to we how out. The still all --

I the in back industry. eliminating we'll in not go. the labor increase to The think agency. I have biggest rate cost And be That let -- labor, issue the in permanent this able into a is issue of One get biggest we the is going months to that is But months sufficient pretty know state just of you time. term. to or don't that rough. that over short have I with don't balance X lot cost XX agency overcome And XX and the incrementally know or from support a if months

Operator

The is Tayo Credit Suisse. next question with from Okusanya

Omotayo Okusanya

in interest according adjustment received the did to CECL. the fourth are going in should you correct be what assumption? they're I'm take all you XXXX booking it. regards for loans income assuming book, still some Or associated a still and In forward, we that those loan relative But to making Is performing that quarter? with the as charges to actually well

Taylor Pickett

-- That's CECL on this. and it's interest correct. related the booking paid are we've our as works done to those, we We're

Omotayo Okusanya

mean Okay. And that noticed That's severance during being regards kind I Steven management on. Insoft little the then of Could for get future it of the did Does also by may bit you you and on charge, kind about what handled have think, has looks a setup a moved team? it replaced? responsibilities talk what quarter, that Are else? LinkedIn, that in like to those I the someone helpful.

Taylor Pickett

towards the of amicable. for time just And his the the very call, our have it’s of first the year Omega. of time Megan great both VP Gupta, a was and responsibilities time at here of moved Senior separate, members parties where Sure. including senior into it been we appreciated other his Acquisitions. Vikas team, to on got was end to asset, all, and Well, Steven really point this And in we

Operator

is Mizuho. from Mahotra with Vikram question Next

Vikram Malhotra

are maybe viewing So 'XX? of you back, time your I of walk from through can maybe line? you sort versus case sort of think recovery what terms base third were pre-COVID versus us how sort maybe of kind guess, path in NAREIT, the talking on I case at of sort late you their quarter here of of Just recovery a just stepping

Taylor Pickett

Yes.

really So recoveries the recovery on occupancy for XX%. XX% ultimately, us low is back into focus a the hopefully, to and

points So if XX recovery pre XX XX consistent with call least. Omicron basis points the at months pace month it, of is post a at, we have that or basis

that be think a up and have I we So thinking that about we now don't variant another to come XXXX have creates hope pulse.

Vikram Malhotra

bit in you've a going in buyback, just have, recovery it And of funds thought makes That terms -- dividend is maybe color back covered. now going lot can you what's more sort about Okay. the the you talked sense. a The of authorizing behind on. mind your just of us process well then give to some

other when buybacks news like, typically, point? maybe would perceived what is seen it's put event you're NAV. are anticipating buyback the well below some out just potential anticipating some stocks that their other versus warrant and like or trying companies that is there the So you're when to I'm just now usually understand to you've NAV at or figure -- trying I'm

Taylor Pickett

we we is balance maybe tool tool through putting is toolkit, a deploy No. It capital the another that, cash. given about elect the but just our would basis, Hopefully, potential leverage-neutral a sales. tool additional as in Dan it's and go, have thinking that sheet where on the it mentioned, asset And and we as pipeline kit really deploy that it the on cash. to, for

Vikram Malhotra

or because that you floor of at you you're the looking level there -- trading? range. says, a last terms sort maybe is there us some where market if in just you're level which I private okay, years, Is saying, make XX%, Is I'm big there's stock at issued in number correct, somewhere think sense, a X hey, some of and this between disconnect XX%, maybe doesn't

Taylor Pickett

interesting, have now. stock the the not level we into established see you but When a dip XXs, that's

Vikram Malhotra

enough. Fair Okay.

quick numbers X Just question.

market deals. at you on the Today, EBITDA looking new where mentioned of is an focused coverage what targeting You are deals occurring, basis levels new are for on? sort or

Taylor Pickett

is lot worth of are it's results. because honest operating results, those get down what up, type very with assets occupancy those be around difficult and taking a with to with underwriting costs place arms your of upon you, to labor XXXX So based

is So historical based a of results. on lot it

think have So frankly, rates, rates. now don't cap U.S. quite the much. And we than run UK historical. in based are the seeing not changed more I opportunity based right on It's we're It's current the just in upon

Vikram Malhotra

Okay.

today lease of guess number I somebody enter a you'd would on, a [X.X]? So you coverage, look that new basis EBITDAR or an were from an on north if what new a EBITDAR at deal,

Taylor Pickett

Yes, historically.

Vikram Malhotra

just EBITDAR. that Okay. last on question the And

So by looking chart break the in funds, you coverages ranges. said your X.XX it EBITDAR in down I I'm I supplement think EBITDAR, know at million. just you where place care excluding the was

XX% elaborate between just I think rent X.XX. X.X -- XX% maybe is but is X.X -- weighted X between Can average on of that is you -- sorry, between and calculation? the

Taylor Pickett

tell X.XX typo. Yes. you I definitely can a that is

-- we have will We and back check. will go

Vikram Malhotra

number? actual the is What

Taylor Pickett

just I just we -- don't I know. seconds the call. noticed this before like

Operator

Next question is from Andrew Wolfe Rosivach with Research.

Andrew Rosivach

question So I a somebody. from on stumped got

kind would isn't that assume what have right. is the in what that's XX% weren't. would the I if think coverage I look like you of like included, you zero, Would paying included the that which you if and a it EBITDA buckets your isn't think necessarily like stuff XX% of sense at there, people often look it's look they rent

Taylor Pickett

don't certainly the it lower. But be head. will off I my no, of that top have Well,

Andrew Rosivach

it. but wouldn't capacity rent? to be But There's would it be zero, it Got some lower, right? pay

Taylor Pickett

close to zero. not Yes, even

Andrew Rosivach

it. Got

in into just XX, the the that aren't And is I'm to tenants, quarter? new tenant in Okay. back you this the that tenants the XX%, the the paying X.X% trying that announced now, XX%, the

Taylor Pickett

in think are they're the I'm that. in core. No, oh, XX%, not I Yes. they’re yes, don't they sorry. --

Andrew Rosivach

They are XX%. in

Okay. Great.

Operator

question next Green John from is with Street. They Pawlowski

John Pawlowski

one just Maybe this on the capital for plan year. question

but of in stock system down right If another stays aggregate it's taking this same or acknowledging down could leg the through another and see disposition now we the year? kind cost leg as capital taking morning, this code volume what of zip your come

Taylor Pickett

assets. $XXX-plus Well, we've for million already XX held-for-sale the talked the about

out my but sales then still impossible. that the that. no of that, got be number mind, There's process. are in And you doubt, So there'll is in restructurings some taking just

John Pawlowski

give of missed on Could it. dispositions apologies Okay. range the pricing And expectations just cap some you then on I rates? if

Taylor Pickett

numbers. assets incredibly flow of cash have They're because most high those currently low

how flow, But a at environment are post-COVID looking buyers Dan at like very, at pre are pricing. looking remember, it's multiples our these very and that XXx with You're high. the cash mentioned COVID what properties performed looking

Operator

is question Bank with Joshua America. Dennerlein next of The from

Joshua Dennerlein

or you what SNF looking turn I And maybe industry. in maybe the question watch I on could anything for else a guys like guess, had one are is your you remind us list? there's if

Taylor Pickett

yes, for the is in key us well, the that that's of question some is mean, -- that occupancy, I from driven the be to of terms going just metric is term? staffing but

Joshua Dennerlein

is Or have like on saw I report that just component? COVID cases. the Yes. facilities looks labor guess, it your your latest I XX% incident of

was like kind of So you wait it, that impacting to I if for wasn't sure and got that to come down.

Taylor Pickett

Yes.

of demand a COVID, So think this call, of of labor can facility partly there times there's And as heard down. are driven It's Labor, think then by underlying the all I we you're right. the infection. serve industry having components you've than that. in go couple out which more count ultimately, that occupancy the because COVID issues,

getting ultimately of for all it's And together, your though, second run occupancies what then half us, So they the was back. question?

Joshua Dennerlein

report the kind last there at out on an study summer update of -- still where tenants of been ones have kind all are did the your may rent that? of list you Just where paying that about kind that to you that last or be passed tenants. there watching we were more you're that watch put looked Like top you you summer, that concerned

Taylor Pickett

next tenants will of We're some tell the had quarters. you tenants concerned concerns liquidity couple not past about. express that additional to we've we're I that over

need having scenarios doubt to for the small. might no of doubt I I'm a mind. these be all going sure we but constituents bigger, -- just careful They it's more will think be to us. they discussions thinking very behind type that few we're restructuring be might quarters, in be are have So my more our no there's

Operator

I Taylor to like back This for turn closing any concludes question-and-answer would to Pickett remarks. the over our conference session.

Taylor Pickett

Great. everybody, joining Thanks, for us today.

to responsive. free good feel always, the we'll day. to be reach a out team Have As and

Operator

now for has today's Thank attending conference concluded. presentation. you The

You may now disconnect.

Omega Healthcare Investors (OHI) 3 Feb 222021 Q4 Earnings call transcript