OHI - Earnings call 3 2023 | Omega Healthcare Investors, Inc.

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Operator

Greetings, and welcome to the Omega Healthcare Investors Third Quarter 2023 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to turn the conference over to Michele Reber.

You may begin.

Michele Reber

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

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

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

C. Pickett

and operating earnings you joining Thanks, I conference financial third Michele. our our XXXX certain trends. call. discuss third Good Today, key morning, quarter results will for and thank quarter

second Levi second the than in modestly XX%. And compared operators Levi FAD X.Xx asset portfolio expected payout $X.XX EBITDAR per our X below basis reduced in therefore, FAD, forward. bucket above per quarter. exceeding the in in reduced quarter is going quarter Levi funds the is distribution share third available cash be remaining is due dividend. to expected, million no share the third was sales rent paying cash rent decrease ratio less cover to from have Levi The longer of from better the with The expected, FAD The as The The to $X dividend $X.XX our quarter should significantly November coverage Levi exposure. X.Xx. for

will to We go-forward handful AFFO of continue quarter have FAD, difficult predict. and operators, impact FAD making and that cash-basis first quarter Maplewood, including a XXXX XXXX fourth to our

we these generate particular, but and believe longer positioned related flows However, of to rent. cash reliable and assets, growing all in term, are well Maplewood

coverage that will which of over operators balance small X.X%, a representing active are which transitioned, call restructurings relationships. X.X% leaves of can Turning issue. representing have under XX.X% Operators operating has state on balance already to sitting represents increases EBITDAR be into of operator representing a on leaves rent operators transitioned the X.X% X.Xx quarter go-forward already of total therefore, which Levi, buckets. coverage X.X% X.Xx I operators operators, X.Xx, a Bob. representing should coverage are or to that XX.X% not were X.X% recently above represents the and of the of handful That and XX.X% We an I X Operators turn are X.X% which have in above in sheets extremely resulted strong second from representing and represent to break now rate July discussed. have X.X% EBITDAR credit. a performing representing one payment basis. benefiting the X.X%, rent.

Robert O. Stephenson

morning. good Taylor, Thanks, and

quarter The compared offset for of partially and the related to Revenue result timing 'XX financials completed from XXXX adjusting completed by the to period. million new year-over-year in certain restructurings, Turning third the sales revenue for investments that was same investment before to quarter operator primarily of the and asset time income, third our third is during short-term XXXX. $XXX for items quarter. for million, nonrecurring $XXX increase

FFO NAREIT and $X.XX third quarter to was share quarter million for of per the compared third XXXX. million Our the per $XXX for $XXX or or share as $X.XX

quarter, as or FFO, Our quarter or million and financial adjusted income our $XXX $X.XX share found FFO per earnings supplemental both several to as was and outlined share $XXX FAD our for FFO FAD and in website. our and in historical net with consistent posted exclude our our items third the per release, $X.XX reconciliations well was to million NAREIT practices adjusted

$X.XX. FAD of $X.XX less Our $X.XX was second of FAD quarter our than

of second income. to quarter mentioned, the result decrease operators shares, incremental average Taylor partially the offset and of additional the investment the was cash-based weighted primarily As Levi, short-term $X.XX compared by impact the

FAD quarter fourth deposits. timing of and a and impact items, of the basis from the security by of will received payments including new investments. number of be The on quarterly rent Our cash operators impacted full interest availability

few and a the asset other short issuances. the cash-based shares average balance outstanding The re-leasing and or loan, potential offset on restructurings, third Interest to cash. interest of earned note related the of bond weighted expense seller's term by repayments or sales, $XXX HUD quarter income small sheet impacted overnight term portfolios, by equity repayment million and

help continued to with and the the debt. of maturity liquidity, our our stack, another of to sheet. the quarter sheet. cash cost where balance million This strengthen Turning quarter $XXX is protect overall on started balance capital approximately We ladder we

at in effectively loan bond at term to delever. from funded million term a X.X%. of quarter a We a the floating X was on annualized has During lastly, entered equity we to our adjusted coverage total, $XXX net normalized paying at XX% $X.X X.Xx. million billion million our rate $XXX fixed over $X.XX ratio regular that and and addition debt issued we ended X.XXx loan our X-year a just in balance August. to loan. that in interest term into sheet. cash EBITDA matured And rates two $XXX to extensions debt paid $XXX.X under was making the fixed fixed the quarter, In off we shares charge X-year payments, of our bond to million with of million option with was dividend maturity X-year swapped continue the We or our and

FAD based to capital we with approximate quarter, Looking current million bond to and below maturity, share be dividend. consistent our our opportunistic last still targeting markets, continue quarter Xx. expect expect $XXX $X.XX April on the pipeline provided market, XXXX, our the leverage to we In fourth at X, summary, forward, while the per commentary in equity

to I've it's I call FAD. may that However, mentioned, hard as laid to will given Dan. Taylor out the turn impact the items over number of predict now

Daniel J. Booth

and morning, good everyone. Bob, Thanks,

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

excluding including quarter during EBITDAR $XX.X for million Federal XXXX, approximately have of stand-alone Federal compared excluding approximately During Funds. the in coverage compared cumulatively as quarter to our X.XXx operators coverage million Stimulus of XX-month ended to and Federal quarter. during to the the as the increased X.XXx benefit quarter $XX.X XX, Stimulus would Funds. recorded of was Stimulus the XXXX $X.X Trailing X.XXx, second first operator June when for of Funds our the recorded second first core EBITDAR the quarter X.XXx, any Stimulus Federal XXXX, for portfolio million

Funds, from Federal preliminary without to compares operators. Stimulus portfolio from of as with $X.X recover XX.X% X.XXx favorably XXXX, to the and to of low first the upon million our reporting a of quarter This our for in stand-alone respectively. continued of in based XXXX overall January core X.XXx and Occupancy XX.X% mid-October has

the Turning portfolio have Levi state portfolio facilities, of previously and mostly transitioning underperforming as process located matters. Levi, to of by Florida. our certain continued restructuring Omega their discussed, in

the During November transitioned of XX XX facilities, has XXXX, sold gross sales and for X, on million. restructure, the XX of outright asset re-tenanting, including X through $XXX that were course through proceeds facilities Omega

which and and a facilities, four two are X in include in in XX to with Mississippi Carolina, in in include Pennsylvania, in anticipation Florida. remaining term. transition X Louisiana, and recent closing X now XX are X in remaining transition including facilities, North down the of to Virginia, facilities, hopeful in Omega's facilities these We six we sales Post of Florida portfolio near which six Levi will our total transition in

improved the month continue per to of month. During of partial short the the quarter $X and of million Maplewood, for quarter by rent paid and for per pay is address to third the there Levi of anticipation third meet the We rate month. October currently In obligations. its forward and in Maplewood a estate increases in approximately rental are XXXX contractual to Avenue million Smith Maplewood XXXX, of at with October XXXX, of Manhattan. working facility $X.X of and pathway rent month Maplewood contractual shortfalls. the second January these Greg occupancy its full believes

at point Guardian, deposit XXXX shortfalls. $X.X $X quarter Healthcare Ohio. And that in agreeing facilities, a X to had agreement Pennsylvania located announced Pennsylvania. in the the on million the security cover with including XX of facilities, However, first million Guardian sell successfully X we X this we have restructuring unknown. after entered To is in timing date, Omega into October, earnings and rent all applied to Omega's call, re-leasing

At of new contractual transitions goal Guardian the approximately Omega a rent situation, facilities of to facilities. Virginia industry has ceased with documentation million in and regulatory with been rent that year. $X.X only tenant The Guardian's per payments XXXX, remaining entirely is that in close, Guardian after the applying the XX to the time, XXXX, year-end of its exit using deposit to third to and be Omega a At with of sold depleted X its May approvals. $X.X sought full rent informed Pennsylvania. remaining this in Omega contractual In portfolio making X goal subject will Subsequently, diligence X the remaining substantially intend they and in Since has Omega rent. by XXXX, Guardian concluding point, in May the potential security XX home quarter aware Guardian normal of re-tenant of contractual satisfactory interest with of resumed month. this and of due nursing time, cover X of remaining facilities, Since million Omega. discussions full payment deposit making leaving the this to Omega becoming the Recently, facilities, additional year-end. December West security to needed that facilities transition on

addition transitions, several working Omega on other with relatively to the is small restructurings. restructurings operators In various aforementioned and

$XX of sale million. The $XX closed for U.K. to added XX% in operator's million investments. with to closed lease On Omega September sale-leaseback escalators. an quarter, Omega transaction lease the the homes XX.X% Virginia the X, new the for transaction for for into closed August escalators. a XXXX, X.X% yield master annual of X facility transactions. on Turning Subsequent Omega initial with concurrently XX new with existing an in cash care operator XXXX, Omega initial On with with X% a on a XX, additional homes lease yield X with third on was care master cash annual entered facility a to acquisition,

provided blended have X Specifically, October spares X X.X% from interest Omega The XXXX, a and living a facilities range loans X $XX million years. to on purchase to that of in to in new mortgage Pennsylvania. assisted operator rate terms X, loan

$XX.X X with XXXX, facility of X.X% annual closed purchase October to for initial The transaction with X facility yield operator's million. on was master existing of Additionally, for lease on Omega in added XX% Maryland a an escalators. lease

Omega During total the expenditures. third new on million investments, in capital $XXX closed $XX a including in million of quarter,

has XX, including of on Omega September expenditures. investments, in closed million $XXX of $XX As XXXX, new capital million

to Turning dispositions.

quarter of XXXX, sales. related the facility $XX received in million During third to proceeds Omega

total of XX now a over XX of will the September as $XXX proceeds $XXX Megan. gross in Levi and million of call I facilities has X, Omega previously total XXXX, mentioned, divested XXXX, gross million. XX, As Omega to November facilities proceeds sold turn on for for

Megan Krull

perspective, occupancy at recovered continued the XX%, in number Dan, facilities good now positive the quarter. with first the XX% trends reported everyone. have slightly of core morning, from slow Thanks, an and up From the

recovered are above Additionally, XX% of XX% fully or core not occupancy. facilities that yet at have

still continues While occupancy there's market, shortage by impacted. is the be slowly, staffing to situation and ease variation large still believed to

XXXX, was XX% And released results As ACA staffing XXX providers basis dropped patient admissions survey noted showed quarter June, to the of that of quarter, for last home it limiting on of XXXX believed as is shortages. it releasing in in given new nursing where continued Xx in Agency CMS results the current move reported a onerous proposed not September of still X. in expense was a per due last our for portfolio second comparison to to which mandate core are day be, the expected, Xx might industry, play. on quarter. as it a staffing limitations forward we the as was Despite palatable the not staffing certainly it state it while

X-year rural, of for years requirement is the RN per delayed and proposal for hours a RNs be resident a of and rural. a implementation RN of required urban for is required on-site nursing day resident facilities, in with is aid day an XX/X, the while And X.XX the required along per X-year Included aids day for X requirement RN hours urban hours delayed for implementation per and resident facilities, X.XX. years for XX/X nursing X to

in is of The currently still for flux time to difficult some open bringing fact ACA at at importantly, unfunded. comment be industry is will and proposed most that the predicting pandemic, has mandate, the post this the out period been difficulties through the it staffing November where that light X, best. state of the is proposal With of

is call open is by be, a hear that set. will too what balanced whatever mandate questions. voices tell is and hope we that outcome implement for indeed the fair, the now delayed ultimate it of a is While will will proposal this industry frame achievable CMS if realistically of the imposed time to mandate ultimately up the I that soon final

Operator

Instructions]. [Operator

Jonathan of Our first line the Raymond with James. from Hughes comes question

Jonathan Hughes

like Could some to some think color business? on -- were recall happened great. operator decision better be more any and background and they or operations last share and an at exit their had than would portfolio year estate on then Just seems with maybe I that It the issue maybe what real skilled restructured. Is worse. there you details nursing Guardian got it rather issue? they I that issues a

Daniel J. Booth

Yes. The exit -- to the the -- couple over a -- came as was in structures the last entirety years, surprise. repeat Guardian we've of with decision gone couple of quite through industry a their its

decided frankly. I mirror But and -- to [indiscernible] I of late. a management struggling to there replace had out that They we're is think of to operators. But the facilities issues, and as quite just the got ours. yes, think a lot were deep they it's They've exit exit, been them than as looking issues. decided more business, they've liquidity they've

Jonathan Hughes

a I some paying amount each negative take terms the rent other for expectation I forward? we EBITDAR prepared of but sheets And then, a Okay. approach EBITDAR mentioned more XX conservative the Taylor, What's of strong you in understand in of your dealt are businesses none sub of but I balance in operators have remarks, or like X% Xx impactful, with rent, are those? actually there -- X.X%, coverage. they're that tenant. should or those top don't together bucket, restructured, individually and on almost the coverage guess think almost been

C. Pickett

comfortable Jonathan. one as in those It's story. at every bucket, whole, of with be discount will any it But has that different credits of X a feel type pretty a slightly minimal. of terms -- I looking

periods years. over of the same. this we're particularly for of many in historically, if And not expect bucket the to out time, many, had work you long So we've be things worried. themselves type those that's look Typically, exactly I the percentage underwind

Jonathan Hughes

realize robust loans, investment so think me, and time, Okay. but fee today acquisition could see deals sneak And when simple [ activity. ], look yields can then if do one size What's you more and terms owned we more versus in. in of take one for I pipeline like the I

Daniel J. Booth

would robust We that deals U.K. go still U.S. could and in of choppy. is years of that it's choppy. seeing the amount We're we pipeline choppy. this state I is back say still could in size borderline at the seeing fair We're point, the deals again, lot a

to in $X.X I see in what I predict would just done in it seen can't date. point, guess, 'XX I investments we've this 'XX, billion new similar so to at what year under, to be which going the So we've we're think in but far

Operator

Vikram Our line from of next Mizuho. comes with Malhotra question the

Georgi Dinkov

Vikram. This is for Georgi on

how Just XXXX? a of think outcomes perspective, cash on flow Levi about and from should range like in Maplewood, the we

C. Pickett

just a for So Levi, half at restructured. I back whole think that it's taking little worth step

date, wood of to for chop $XX left be generated be XX likely point a the bit to price little sold So million. north have still of X looking are assets have Dan, at The proceeds. that assets of been a that $XXX to and we're million sold to transitioned need

two of were And Mississippi, proceeds an pressures on lesser sets Dan the incremental Second are enormous rent. re-leased Longer contractual both of $XXX term, at the questionable positive So out Avenue amount is gap, predictable off cash bit is assets. North a in as own little we going of a in basis. million. we that the couple of will have not -- chopping in Levi, rent comfortable balance $X an We'll industry. fill-up part wood covers that really Pennsylvania. with million driver. is over ultimately really more extent, states, from a of point then still the strong a But as a a extremely well. call quarters. important predictable. we of we're have with Second January. lot timing, this to timing in mentioned, sales hugely is the supporting we're that's the Maplewood it, Carolina, is to to cash have Dan could $XXX increases falls the but And big 'XX, Where flow is But which to continue but were that generate fill-up flow, Virginia, that for That increases pay as continue assets re-leased mentioned Maplewood occupancy rate That the Levi. the million, said, little normal that their Then have Avenue, And map of driven at rate you in of some we can expense look sufficient to principally on next

Georgi Dinkov

and or Can minimum if what are just labor for states the be highlight any more the And on address funding, provide And would can increase a with minimum color Medicaid second to helpful. states rates that seen side helpful. preparing you the very like staffing? That's potential has like question. you have that how staffing

Megan Krull

look, I little know the states any is addressing are staffing it's -- I that really up week. to a next point this don't tell soon going Yes. mean, when Comment minimum what's period happen there. because at to too

waiting just out ends of to we're coming see so And up what it.

As there's than of you rural urban a delayed be in. a it. the areas know, the certainly, bit it most little going implementation hit kick are But harder to for areas does once

into typically one until have well. Texas. California but Last bit be little FMAP XX% hear are FMAP to rates as little And of that at staffing got from kicking we terms delayed. and really again, happens we In last October. these which they over Talked things top continue point, none do in especially about watch positive their might of in, that setting, a and rebasing by quarter, the and going is our operators Carolina the did but bit rate put several North the impacted seen carefully a in rate our July mandate a of January, rate. of states months, increase this have XX Florida

to So staffing perspective, mandate. happening too with the reimbursement soon what's but feeling decent on still the tell

Operator

Griffin the of from comes question next Michael Our Citi. with line

Unknown Analyst

on if how of sense are if I'm a Michael Levi's bed the for on A sales? those And sales. question the targeted can Avery more on sale, the Griffin. many assets for is any? This you Levi per of valuation us give wondering

Daniel J. Booth

and XXX as beds. release is XX we I XX six we've either per targeted assets between and more So for range about in of the per over mentioned, price talked got bed the sale course of a or the that

Unknown Analyst

about below I equity debt And to that future Great. tap continue are a versus to want activity how And know guys the just you fund Xx. market? investment follow thinking up, issuances leverage keep to you

about So for thinking just funding how opportunities. you needs are investment

Robert O. Stephenson

we the Yes. capital XX-month We and needs. and looking down sit at an take approach our markets

sheet liquidity combination credit of billion said, So have over of as on $X the I the untapped as facility. current the cash balance our of with $XXX well million we as

we but We maturities have day, longer-term in have at any that. XX approach of have the two access a again, one look don't We at day know debt by 'XX. it to early ATM we looking we and up, April in and coming

So be opportunistic calls it if we that. for will

Operator

Wells next line Siversky question of from the SPX Connor comes Fargo. with Our

Connor Siversky

acquisitions, on speaking external activities. Broadly

activity we've So a past X or the in seen lot so. of weeks

same strong. now? margin chase do of And seeing questions parameters look cost really others. cautious is work to look like right the requirement very and transactions what than the staffing time, to the And and at given your minimum at received opportunity and some you framework I mean, with generating as fielding underwriting invest. OHI problem, take and a on try on not lot Whereas an the aggressive something do we're you be of in more those whether at cost jump current Or some better of kind of capital get the the you're of have acquisitions? risk to environment REITs or that they here of of your been for capital have accretion continue doesn't

C. Pickett

allocating off to risk bit as of to staffing. include and a existing foot both, we including possible we minimum just -- it's our take of capital. pedal. It's risks It's it's for my the don't incorporating But capital So think things, perspective, bit from operators into a about those a of right? that the our little adjustment how much some we're variety opportunities. has to a as We But great little underwriting allocate question. prepared

billion pipeline mentioned, Dan is pretty $X.X and As the year-to-date, to we're robust. close

at to there. opportunistically continue we'll look at out very So what's

Connor Siversky

up just Okay. on And follow to that then point.

favor this the mean, environment challenged does that of earlier urban the So rural those areas. remains in in willingness more maybe sell also imply mentioned out a assets OHI areas labor in the for versus to Megan the of rural call, areas? concentration urban I in

C. Pickett

portfolio Well, it you've do, number COVID, has pretty seen when much but followed more we've a would pathway, a not rural, labor for sort of I activity, done think obviously that. about whole lot you lot little of a there's actively through say that that to us our more more the of a years and a disposition challenged. little

I an dispositions, big continue portfolio expectation always sort have. don't as So have but of to we'll the we

Operator

with line Our next from comes question of line BMO. Juan, your live. is Juan the Sanabria

Our next question comes from the line of Michael Carroll with RBC Capital Markets.

Michael Carroll

you I mean circle market? I Guardian. a initially receive did back just right interest run Or kind did that assets specific did along to to target you operators? want a came one guess on those work? sounds I when mean, now. how But you're it you how pretty few far did And you you much of have like I with process? the did operator

Daniel J. Booth

Yes.

So we we state. the of course, have know existing operators operators in Pennsylvania, other the then state in of and

in also state West and of So -- Virginia. the

do doing with to we we out still reached we business the state and know know, So that foremost, are also operators of operators Pennsylvania business. in we and and first that that

we So broad narrowing to net it's just the throw one. pretty a for right looking there's operators. of new that it out down matter And as some there

Michael Carroll

some of they interest color of much those you operators? step rate? started potential need of stabilize today? stabilized guess you off then assets assets provide you properties? offering rent willing kind were And operations a interest And then I ramp-up that, new at those improve? how these do Or in operators those as will I performing mean to are have and when How be of much kind how to And can in up some on to type

Daniel J. Booth

question. as not we interest, well. amount wasn't of Those was in that discussions there we're It's the but say put I performing of the bids exceedingly speak. an were that are the And would are at day. end a Those facilities good having overwhelming it

Operator

of the Scotiabank. Nicholas Yulico with Our question next comes from line

Nicholas Yulico

about should back sheet, get Bob, investments cash how feel I the think in you debt on of just that earmarked for to the talk for be a better you guess the versus do we trying how maybe could much going April. did to have maturities balance about

Robert O. Stephenson

is It's be again, We're but pipeline to right away is That picture choppy. cash the and that, we to But in deploy based and how ATM. we on look take can maturity the the want and based coming debt sitting big approach million availability on have have robust, a with today. we dollar pipeline fund the spent, down If cash Yes. first fungible. have We mean acquisitions. that, I because absolutely. Nick, could we and choppy. it. I mean, sit deploy the would that. again, up, it $XXX do we now, we'll right the

Nicholas Yulico

I like of played rents or Okay. going And was do happen out? versus through percentage how sense in new fully equivalents. as now asset transitions XX%, give we But for operators sales, a it now -- it the any when you we get on of think sort going going be And a a feel to that said just can us most asset Levi. think paying you've question I about on with rent could through what then terms prior if that in past the to sales recapture what you're Levi is going Is about know XX% about to on there Is the second there's back think you about, still, moved -- have I rate XX%? reinvestment of guess, like proceeds. some of rough transition you sort and number this?

C. Pickett

Yes.

Nick, thinking conservative I when were or is this We a there. think be pushing right. in exactly our You're result, north. XX% we'll pretty

Operator

Our next question comes from the line of Alex W. Fagan with Baird. Robert

Unknown Analyst

What's of releasing those assets. senior historical question the the timing on housing Just a Guardian assets?

Daniel J. Booth

or in specific Guardian. to Do general mean you just

Unknown Analyst

housing. to [indiscernible] general In

Daniel J. Booth

could XX range it sale general, a depending whether wide the it's being In and take just pretty it's to or on months. It's from re-tenanting. sale anywhere whether X financed a a

Unknown Analyst

have stopped actually getting worse? just Or labor is gotten one it has cost/shortages second And better?

Megan Krull

still are exists, definitely I And from I hear think sign. feeling time operators right? to a before better agency down less itself. quarter-over-quarter, it's take seeing So it's I tension we what operators. going rights back is that think some getting from it there, definitely definitely our improving. which good it's we but come are mean

Unknown Analyst

how And the And one. last buy that? And when assets was much you Levi guys did for?

Daniel J. Booth

those to of XXXX, my balance for -- years. XX over been assets assets our XXXX, sheet the of head, are know those I think, back of date on Some off some I the don't top

Operator

comes line next John the Green of Our Pawlowski with from Street. question

John Pawlowski

for sector-wide question you occupancy. Megan, a on just

curious, occupancy think a Just bigger last closures several hasn't facilities the benefit cumulative you from of years. the over why seen just

Megan Krull

seen we've a think look, I recover. -- percentage portfolio large actually of our

very look that is the occupancy region at that's in. And strong if Florida, issues to why you're for just so hasn't recovered. specific staffing there, instance, the that, it the So you

I different different places, have So a going to when look think there. you you're at story

John Pawlowski

and just down, aren't almost COVID demand suggest of being occupancy, years significant along should structural be in of months with back the which, regions it amount a again, As if closure. kind would pre change higher adjusted again supply to for go a

more incrementally about just you it's concerned in it, are delay the So occupancy. than broader recovery in labor issues,

Megan Krull

nursing areas. on to get demographics We've got frankly, come point, think that's our mean, into some at into shortage coming maybe back I demographics it's certain play, have to we're look, play. side going No. quite there. of going homes a in And those I as

John Pawlowski

question Last for Okay. me.

this operators staring burdensome whether this could other the that exiting Do other be a operators? labor operators beginning you for additional wave a Do leading at you indicator business? see see think of just be then and -- mandate? a a be curious, Just you a may of Guardian fatigued out

C. Pickett

No.

idiosyncratic, really is Guardian very think unique. I

a it just that through environment. have general look rest of been the state more the bit difficult similar in you doesn't will the issues. I If of little say Pennsylvania portfolio, operating has

we a decent in master big but results a or feeling of with that, Pennsylvania, in operators is a that leases of Pennsylvania pressure good And most so offset of and is have the bit really bit State little in geographies. there's do where of other by in presence

we as it but So of don't Pennsylvania I Pennsylvania-only may that little a operators, for in bit an really indicator issue. an be now don't -- have

Operator

is Our next line your of Sanabria line question Juan, comes from with Juan BMO. live. the

comes line Ayo question next Our Bank. from of Deutsche with Okusanya the

Unknown Analyst

of kind And much that sounds there's all the have tenants the moving issues. still in on is having pretty margin I So at guess, are the again, right still fundamentals question direction it this I like are some point.

all profitability. trying still pressure be remain points out is it of the going Or where and just of just it making than will higher. to kind as I'm potential of to kind drive issues forward? whether is and Advantage hard worry there constraints, one it in of pressure hunky-dory It is slowly Curious on continues of occupancy operator it's of that behind Medicare where there's if there of and still if some could indeed persist else very So still issues to understand this things curious just profitability? like part kind kind occupancy about longer be the labor terms grow, thematically us could putting I'm any just has for sounds anticipated. fundamental to

C. Pickett

that. decades, already just XXXX, really forever. sorted those incremental that think are and don't itself business. I of aligned certain really it's just operators aligned we the you at in with now to in the market's X have We've Tayo, way residual at you're can answer The most is business see of that's beginning. in advantaged and clinical Yes, the to the short But sort that I always going there. fundamentals the providers half we're -- what Advantage, that we're of And be what been organizations. And a issues all care for is around going Medicare that in I of works terms looking back no business. this cleanup operators think think our the I effectively, up come with have the well are strong. been provide there's the said big for normal pressure

good pretty of lot feel we been look, all We've that. about of to And handful. have a dozens think around a of I that. We're And So transparent. visibility we've I solved down issues.

Unknown Analyst

million. or one That's quick helpful. other to $XXX you the rate discuss And NOI one. sales Did Levi with then the in just the cap November associated

C. Pickett

No.

facilities per really, that XXX,XXX bed Florida in traded. some which mentioned, bed is XX,XXX cover sale them. turnaround component is of Dan all and prices, As it's Those have between where

cap the doesn't really mean anything. So is rate really --

Unknown Analyst

from us those kind Give result disappears a [indiscernible] what sales? as sense of you NOI a of guys

C. Pickett

that and is portfolio X back in of which Louisiana part couple which very it has the through a to retained restructuring the and of last X -- rent disposing goes portfolio, last that is the and then Yes, working flow. the Dan remain around Florida the X that cash appropriate -- of the properties substantial

I TBD a there'll be that think working.. So a Dan lot value is of is there. that But

Operator

closing other remarks. hand questions Pickett Taylor no call in to are There the to I'd for queue. back like the

C. Pickett

Thanks, for Doug. everyone, today. joining Thanks,

Have always, out with may follow-up you day. questions the team please reach As any a great have. to

Operator

for teleconference. Ladies Thank conclude gentlemen, participation. today's you and does this your

disconnect this wonderful You time, at a day. lines have and your may

Omega Healthcare Investors (OHI) 3 Nov 232023 Q3 Earnings call transcript