Investor Presentation March 2017 Forward-looking Statements and - PowerPoint PPT Presentation

Investor Presentation March 2017

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 (aka, 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, 2016, unless specifically stated otherwise. We assume no duty to update or supplement the information provided. Investor Presentation, March 2017 2

Omega Overview

Omega Overview: Key Credit Highlights  Conservative leverage level with Funded Debt / Adj. EBITDA of 4.72x (Q4 2016), in-line with our leverage target  Consistent and stable free cash flow with strong fixed charge coverage of 4.7x (Q4 2016)  Low Secured debt / Adj. EBITDA of 0.1x and 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 $1.2 billion of cash and credit facility availability at 2/9/2017  Strong portfolio TTM rent coverage of 1.7x (EBITDARM) and 1.3x (EBITDAR) at 9/30/2016  Geographic and operator diversification with 79 operators across 42 states and the United Kingdom Portfolio Strength  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 16+ years Experienced Management  Proven ability to execute on strategies Team  Proven ability to handle troubled assets Investor Presentation, March 2017 4

Omega Overview: Facility and Investment Overview at December 31, 2016  Omega is the largest SNF-focused REIT As of December 31, 2016, Omega portfolio consisted of 981 (1) operating facilities  Completed over $1.3 billion of investments in 2016  Facility Investment Statistics Revenue Statistics Other Mortgages Direct 3% Senior 7% Financing Housing, Leases 14% 7% Skilled Rental Property Nursing/Transitional 83% Care, 86% 1) Excludes non-operating facilities either held-for-sale, closed and/or not currently providing patient services Investor Presentation, March 2017 5

Financial Overview: Shareholder Returns Compounded Annual Growth Rates Total Growth Percentages 1/1/2004 to 12/31/2016 1/1/2004 to 12/31/2016 OHI Share Price: 235.0% Real Estate Investments: 20.5% Operating Revenue: 20.6% RMZ Index: 96.1% Adjusted FFO per Share: 12.1% Quarterly Dividends as of 2/15/2017 OHI Share Price: 9.7% 1 Year Total Growth: 8.6% 3 Year Total Growth: 26.8% Dividend Yield at $0.62/Share Per Quarter 7.7% 5 Year Total Growth: 51.6% (based on closing price on 2/22/2017 of $32.06) Omega Share Price Growth, 12/2002-12/2016 $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 2017 6

Financial Overview: Shareholder Returns (cont’d) Shareholder Returns Through 12/31/2016 (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 7 th 3 Year: 26.2% 8.1% Dividends Income Capital Distribution Income Capital Distribution 5 Year: 122.6% 17.3% 2 nd 2012 1.69 0.88 0.81 - 52.3% 47.7% 0.0% 2 nd 7 Year: 154.8% 14.3% 2013 1.86 1.54 0.32 - 82.6% 17.4% 0.0% 2014 2.02 1.83 0.19 - 90.8% 9.2% 0.0% 10 Year: 246.9% 13.2% 2 nd (3) 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% $ 10.11 $ 7.36 $ 2.68 $ 0.07 72.8% 26.6% 0.7% 1) Rounded to two decimals Omega's Total Returns vs Healthcare REIT Average (2) (Years ending 12/31) 300.0% 250.0% 200.0% 150.0% 100.0% 50.0% 0.0% 3 Year 5 Year 7 Year 10 Year Omega's Total Returns Avg. Total Returns of Healthcare REITs Source: Bloomberg Comparative Analytics 1) 2) Healthcare REIT rankings and average total returns include: VTR, HCP, HCN, LTC, HR, NHI, SNH, SBRA and CCP (1 year only) Ranked 9 th among all 173 publicly traded equity REITs. Source: KeyBanc Capital Markets “The Leaderboard”, December 30, 2016 3) Investor Presentation, March 2017 7

Omega Overview: Recent Announcements 1Q 2017  Increased our quarterly common stock dividend rate to $0.62 per share. 4Q 2016  Invested approximately $50 million in a joint venture investment.  Invested $40 million in capital renovation and construction-in-progress projects.  Increased our quarterly common stock dividend rate to $0.61 per share. 3Q 2016  Completed $428 million in new investments.  Invested $38 million in capital renovation and construction-in-progress projects.  Repurchased an outstanding $180 million secured term loan due 2019.  Issued $700 million aggregate principal amounts of our 4.375% Senior Notes due 2023.  Increased our quarterly common stock dividend rate to $0.60 per share. 2Q 2016  Completed $220 million in new investments.  Invested $28 million in capital renovation and construction-in-progress projects.  Increased our quarterly common stock dividend rate to $0.58 per share. 1Q 2016  Completed $494 million in new investments.  Invested $31 million in capital renovation and construction-in-progress projects.  Completed a $350 million senior unsecured 5-year term loan.  Increased our quarterly common stock dividend rate to $0.57 per share. Investor Presentation, March 2017 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 $5.7 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  Additionally, the Company has approximately $320 million committed to its operators for capital improvement and new construction projects to be completed over the next 24-36 months (as of 2/9/2017)  Continue to pursue accretive transactions  Leverage existing 79 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 $1.2 billion of combined cash and credit facility availability as of February 9, 2017 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 2017 9

SNF Industry and Reimbursement Overview

Growth in SNF Census, by Age Cohort Aging demographics would drive SNF occupancy beyond capacity in less than 10 years without efforts to reduce lengths of stay and increased utilization of alternative care sites. 2,500 Occupancy 142% 2,400 2,300 2,200 122% 2,100 2,000 1,900 85+ Number of SNF Residents (000's) 105% 1,800 1,068 Maximum current 1,700 1,600 SNF capacity 91% 1,500 85+ 85+ 82% 1,400 819 671 1,300 85+ 1,200 603 85+ 1,100 565 1,000 75-84 75-84 900 75-84 749 661 800 75-84 548 700 75-84 427 600 358 500 65-74 65-74 65-74 400 65-74 65-74 320 311 302 300 269 224 200 <65 <65 <65 <65 <65 100 224 210 214 217 220 - 2015 2020 2025 2030 2035 <65 65-74 75-84 85+ Source: CMS Nursing Home Data Compendium (2015 Edition) for percentage of SNF residents by age cohort and US Census Bureau data for population growth projections by age cohort. Investor Presentation, March 2017 11

Attractive Fundamentals: Primary PAC Site SNFs – preferred post-acute care environment with growing demand and limited supply SNFs 48% HHAs Medicare 39% Acute 43% Sent to Post-Acute Hospital IRFs Discharges 9% LTACHs 3% Source: MedPAC Data Book, June 2016 Investor Presentation, March 2017 12