Investor Presentation March 2018
Forward-looking Statements and Non-GAAP Information ➢ This presentation may include projections and other “forward -looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to future events and expectations and involve unknown risks and uncertainties. Omega’s actual results or actions may differ materially from those projected in the forward-looking statements. For a summary of the specific risk factors that could cause results to differ materially from those expressed in the forward-looking statements, see Omega’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. ➢ This presentation may contain certain non-GAAP financial information including EBITDA, Adjusted EBITDA, Total Adjusted Debt (a/k/a, Funded Debt), Adjusted FFO, FAD, Total Cash Fixed Charges and certain related ratios. A reconciliation of these non-GAAP disclosures is available in the Exhibit to this presentation or on our website under “Non -GAAP Financial Measures” at www.omegahealthcare.com. Other financial information is also available on our website. ➢ Information is provided as of December 31, 2017, unless specifically stated otherwise. We assume no duty to update or supplement the information provided. Investor Presentation, March 2018 2
Omega Overview
Omega Overview: Key Credit Highlights Conservative leverage level with Funded Debt / Adj. Pro Forma EBITDA of 5.1x (4Q 2017) Consistent and stable free cash flow with strong fixed charge coverage of 4.1x (4Q 2017) Strong commitment to unsecured borrowing structure with ~$10.1 billion of unencumbered assets Financial Strength Minimal short-term debt maturities Positive ratings trajectory with history of upgrades and commitment to investment grade profile Significant liquidity with $1.03 billion of cash and credit facility availability at 2/14/2018 Strong core portfolio TTM rent coverage of 1.72x (EBITDARM) and 1.35x (EBITDAR) at 9/30/2017 Geographic and operator diversification with 74 operators across 41 states and the United Portfolio Strength Kingdom No upcoming material lease expirations and no material lease renewal risk Favorable near term supply and demand outlook Senior management team with average tenure of 17 years Experienced Proven ability to execute on strategies Management Team Proven ability to handle troubled assets Investor Presentation, March 2018 4
Omega Overview: Facility and Investment Overview at December 31, 2017 Omega is the largest SNF-focused REIT As of December 31, 2017, Omega’s portfolio consisted of 973 (1) operating facilities Completed approximately $530 million of new investments in 2017 In 2017, completed 59 asset dispositions totaling over $290 million of net proceeds Evaluating over $300 million of potential asset sales in 2018 Facility Investment Statistics Rent/Interest Statistics Other Mortgage Notes 4% Senior 7% Housing, Direct Financing 17% Leases 4% Skilled Rental Property Nursing/Transitional 85% Care, 83% 1) Excludes facilities which are non-operating, closed and/or not currently providing patient services Investor Presentation, March 2018 5
Financial Overview: Shareholder Returns Compounded Annual Growth Rates Total Growth Percentages 1/1/2004 to 12/31/2017 1/1/2004 to 12/31/2017 OHI Share Price: 195.2% Real Estate Investments: 18.8% Operating Revenue: 18.4% RMZ Index: 97.7% Adjusted FFO per Share: 10.3% Quarterly Dividends as of 2/15/2018 OHI Share Price: 8.0% 1 Year Total Growth: 6.5% 3 Year Total Growth: 24.5% Dividend Yield at $0.66/Share Per Quarter 9.8% 5 Year Total Growth: 46.7% (based on closing price on 2/13/2018 of $26.96) Omega Share Price Growth, 12/2002-12/31/2017 $46.00 $44.00 $42.00 $40.00 $38.00 $36.00 $34.00 $32.00 $30.00 $28.00 $26.00 $24.00 $22.00 $20.00 $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 Investor Presentation, March 2018 6
Financial Overview: Shareholder Returns (cont’d) Shareholder Returns Through 12/31/2017 (1) Dividends per Share and Return of Capital % Tax Treatment ($) Tax Treatment (%) Ranking (2) Total Return Ann. Equiv. Ordinary (1) Return of (1) Capital Gain (1) Total % Ordinary % Return of % Capital Gain 12 th 3 Year: (13.3%) (4.7%) Dividends Income Capital Distribution Income Capital Distribution 5 Year: 59.6% 9.8% 6 th 2013 1.86 1.54 0.32 - 82.6% 17.4% 0.0% 3 rd (3) 10 Year: 240.6% 13.0% 2014 2.02 1.83 0.19 - 90.8% 9.2% 0.0% 2015 2.18 1.13 1.05 - 52.0% 48.0% 0.0% 2016 2.36 1.97 0.32 0.07 83.4% 13.6% 3.0% 2017 2.54 1.57 0.93 0.04 61.8% 36.6% 1.6% $ 10.96 $ 8.04 $ 2.81 $ 0.11 73.4% 25.6% 1.0% 1) Rounded to two decimals Omega's Total Returns vs Healthcare REIT Averages (4) (Years ending 12/31) 300.0% 240.6% 250.0% 183.1% 200.0% 150.0% 100.0% 59.6% 58.7% 50.0% 16.3% -13.3% 0.0% 3 Year 5 Year 10 Year -50.0% (5) Omega's Total Returns Avg. Total Returns of Healthcare REITs 1) Source of Total and Annualized Equivalent Returns: Bloomberg Comparative Returns Source: Healthcare REIT rankings of Total Returns published by KeyBanc Capital Markets, December 31, 2017 2) Ranked 20 th among all 116 publicly traded equity REITs with at least 10 years of return history. Source: KeyBanc Capital Markets “The Leaderboard”, December 31, 2017 3) Healthcare REIT Averages based on Total Returns of the RMS G Index for the years shown per Bloomberg Comparative Returns 4) 5) The 3 and 5 Year Healthcare REIT Total Returns are the composite returns as provided in the KeyBanc Capital Markets “The Leaderboard”, December 31, 2017. The 10 Year return is the simple average of the Total Returns of individual Healthcare REITs provided in the same Source. Investor Presentation, March 2018 7
Omega Overview: Quarterly Highlights 1Q 2018 ➢ Increased its quarterly common stock dividend rate to $0.66 per share ➢ Sold 3 facilities and had 3 mortgage loans paid off totaling $35 million in net cash proceeds 4Q 2017 ➢ Sold 34 facilities and had a mortgage loan repaid totaling $189 million in net cash proceeds ➢ Completed $40 million in new investments ➢ Invested $31 million in capital renovation and construction-in-progress projects ➢ Increased our quarterly common stock dividend rate to $0.65 per share 3Q 2017 ➢ Completed $203 million in new investments ➢ Sold 4 facilities totaling $12 million in net cash proceeds ➢ Transitioned Orianna’s Texas portfolio to an existing operator ➢ Invested $36 million in capital renovation and construction-in-progress projects ➢ Increased our quarterly common stock dividend rate to $0.64 per share 2Q 2017 ➢ Sold 8 facilities totaling $45 million in net cash proceeds ➢ Invested $48 million in capital renovation and construction-in-progress projects ➢ Increased our quarterly common stock dividend rate to $0.63 per share ➢ Redeemed $400 million of 5.875% Senior Notes due 2024 ➢ Issued $550 million 10-year 4.75% Senior Notes and a $150 million 4.50% add-on to our 2025 Senior Notes ➢ Closed on a new $1.8 billion unsecured, multi-currency credit facility ➢ Completed $134 million of new investments 1Q 2017 ➢ Completed $8 million in new investments ➢ Sold 15 facilities totaling $46 million in net cash proceeds ➢ Increased our quarterly common stock dividend rate to $0.62 per share ➢ Invested $30 million in capital renovation and construction-in-progress projects Investor Presentation, March 2018 8
Omega Overview Proven Track Record of Growth and New Investments Omega’s Growth Strategy Continue to pursue selective investments ➢ 2004 New Investments: $126 million ➢ 2005 New Investments: $311 million ➢ 2006 New Investments: $203 million ➢ 2007 New Investments: $ 46 million ➢ 2008 New Investments: $197 million ➢ 2009 New Investments: $292 million ➢ 2010 New Investments: $638 million $6.2 billion (2) ➢ 2011 New Investments: $365 million ➢ 2012 New Investments: $510 million ➢ 2013 New Investments: $621 million ➢ 2014 New Investments: $566 million ➢ $507 million (1) 2015 New Investments: ➢ 2016 New Investments: $1,328 million ➢ 2017 New Investments: $530 million ➢ Additionally, the Company has approximately $299 million committed to its operators for capital improvement and new construction projects to be completed over the next 24-36 months (as of 12/31/2017) Continue to pursue accretive transactions Leverage existing 74 operator relationships Invest primarily in current core markets Maintain focus on senior care facilities Use credit facility to make acquisitions and replenish availability with long-term debt and equity issuances Approximately $1.03 billion of combined cash and credit facility availability as of February 14, 2018 Investments exclude the approximate $3.9 billion acquisition via merger of Aviv REIT on April 1, 2015 1) Excludes investments made by Aviv prior to acquisition via merger by Omega 2) Investor Presentation, March 2018 9
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