Investor Presentation February 2020
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, 2019, unless specifically stated otherwise. We assume no duty to update or supplement the information provided. Investor Presentation - February 2020 2
Omega Overview
Omega Overview: Key Credit Highlights ◼ Conservative leverage level with Funded Debt / Adj. Pro Forma EBITDA of 5.19x (4Q 2019) (1) ◼ Consistent and stable free cash flow with strong fixed charge coverage of 4.00x (4Q 2019) (1) ◼ Minimal secured borrowing; $9.8 billion+ of unencumbered real estate assets Financial Strength ◼ Minimal short-term debt maturities ◼ Positive ratings trajectory with history of upgrades and commitment to investment grade profile ◼ Significant liquidity with ~$1.05 billion of cash and credit facility availability at 02/24/2020 ◼ Strong core portfolio TTM rent coverage of 1.66x (EBITDARM) and 1.30x (EBITDAR) at 9/30/2019 ◼ Geographic and operator diversification with 71 operators across 40 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 (CEO, COO, & CFO) with average tenure over 18+ years Experienced Management ◼ Proven ability to execute on strategies Team ◼ Proven ability to handle troubled assets 1) See 4Q 2019 Supplemental for detailed calculation Investor Presentation - February 2020 4
Omega Overview: Facility and Investment Overview at December 31, 2019 ◼ Omega is the largest SNF-focused REIT As of December 31, 2019, Omega’s portfolio consisted of 964 (1) operating facilities ◼ ◼ During 2019, Omega completed approximately $1.7 billion of new investments in 2019 (including CAPEX funding) Rent/Interest Statistics (2) Facility Investment Statistics Direct Mortgage Other, Financing Notes, 4.9% Senior Leases, 8.0% Housing, 0.1% 16.2% RE Tax & Ground Leases, 1.0% Skilled Rental Nursing/Transitional Property, Care, 83.8% 86.0% 1) Excludes facilities which are non-operating, closed and/or not currently providing patient services 2) 3 month period ended December 31, 2019 Investor Presentation - February 2020 5
Financial Overview: Annual Shareholder Returns Compounded Annual Growth Rates Total Growth Percentages 1/1/2004 to 12/31/2019 1/1/2004 to 12/31/2019 OHI Share Price: 353.9% Real Estate Investments: 17.3% Operating Revenue: 16.8% RMZ Index: 118.5% Adjusted FFO per Share: 8.9% Annual Dividends as of 2/15/2020 OHI Share Price: 9.9% 3 Year Total Growth: 10.4% Dividend Yield at $0.67/Share Per Quarter 6.0 % 5 Year Total Growth: 29.1% (based on closing price on 2/21/2020 of $44.65) 10 Year Total Growth: 118.3% Omega Share Price Growth, 12/31/2002-1/31/2020 $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 $0.00 Investor Presentation - February 2020 6
Financial Overview: Annual Shareholder Returns (cont’d) Shareholder Returns Through 12/31/2019 Dividends per Share and Return of Capital % Tax Treatment ($) Tax Treatment (%) Total Return (1) Ann. Equiv. Ordinary (1) Return of (1) Capital Gain (1) Ranking (1) Total % Ordinary % Return of % Capital Gain Dividends Income Capital Distribution Income Capital Distribution 4 th 3 Year: 72.2% 19.9% 5 Year: 56.7% 9.4% 5 th 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% 10 Year: (2) 2 nd 338.0% 15.9% 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% 2018 2.64 1.69 0.93 0.02 64.0% 35.3% 0.7% 2019 2.65 1.76 0.59 0.30 66.5% 22.3% 11.2% $ 14.39 $ 9.96 $ 4.00 $ 0.13 69.7% 27.5% 2.7% 1) Rounded to two decimals Omega's Total Returns vs Healthcare REIT Averages (3) (Years ending 12/31/2019) 400% 338.0% 350% 300% 250% 177.5% 200% 150% 100% 72.0% 57.0% 29.9% 23.3% 50% 0% 3 Yr. Returns 5 Yr. Returns 10 Yr. Returns Omega Peers 1) Ranking among healthcare REITs. Source of Total Returns and Ranking: KeyBanc Capital Markets The Leaderboard , December 31, 2019 Ranked 27 th among all 113 publicly traded equity REITs with at least 10 years of return history. Source: KeyBanc Capital Markets The Leaderboard , December 31, 2019 2) 3) Source: KeyBanc Capital Markets The Leaderboard , December 31, 2019. Peer returns are simple average of returns of NHI, HR, LTC, SABRA, VTR, WELL, and PEAK Investor Presentation - February 2020 7
Omega Overview: Quarterly Highlights 1Q 2020 ➢ Paid a $0.67 per share quarterly common stock dividend 4Q 2019 ➢ Completed a $735 million acquisition (the “Encore Portfolio”) ➢ Purchased a 49% interest in a U.K. senior housing joint venture for $90 million ➢ Paid a $0.67 per share quarterly common stock dividend, a $0.01 increase over the prior quarter 3Q 2019 ➢ Issued $500 million 3.625% Senior Notes due 2029 ➢ Completed a 7.5 million share forward equity sale of common stock at an offering price of $40.32/share; shares will be issued by September 2020, as needed, for acquisitions and general corporate activities ➢ Signed a Purchase and Sale Agreement to acquire $735 million of skilled nursing and assisted living facilities ➢ Completed a $25 million acquisition in July ➢ Paid a $0.66 per share quarterly common stock dividend 2Q 2019 ➢ Completed the $623 million acquisition by merger of MedEquities ➢ Invested $55 million in capital renovation and construction-in-progress projects ➢ Paid a $0.66 per share quarterly common stock dividend 1Q 2019 ➢ Entered into a definitive merger agreement to acquire MedEquities Realty Trust, Inc. ➢ Invested $42 million in capital renovation and construction-in-progress projects ➢ Finalized the Orianna restructuring ➢ Paid a $0.66 per share quarterly common stock dividend 4Q 2018 ➢ Completed $53 million in new investments ➢ Invested $45 million in capital renovation and construction-in-progress projects ➢ Sold 15 assets for cash consideration of $67 million, recognizing a gain of $15.5 million ➢ Paid a $0.66 per share quarterly common stock dividend Investor Presentation - February 2020 8
Omega Overview Proven Track Record of Growth and New Investments Omega’s Growth Strategy Continue to pursue selective investments ◼ ➢ 2004 - 2007 Investments: $686 million ➢ 2008 New Investments: $197 million ➢ 2009 New Investments: $292 million ➢ 2010 New Investments: $638 million ➢ 2011 New Investments: $365 million ➢ 2012 New Investments: $510 million $12.3 billion ➢ 2013 New Investments: $621 million ➢ 2014 New Investments: $566 million $4,414 million (1)(2) ➢ 2015 New Investments: ➢ 2016 New Investments: $1,328 million ➢ 2017 New Investments: $530 million ➢ 2018 New Investments: $471 million ➢ $1,692 million (3) 2019 New Investments: ➢ Additionally, the Company has approximately $170 million committed to its operators for capital improvement and new construction projects to be completed over the next 12-18 months (as of 12/31/2019) Continue to pursue accretive transactions ◼ Leverage existing 71 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 $1.05 billion of combined cash and credit facility availability as of February 24, 2020 Includes approximately $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) Includes approximately $623 million acquisition via merger of MedEquities Realty Trust (MRT) on May 17, 2019 3) Investor Presentation - February 2020 9
Demographics to Drive Growth
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