Investor Presentation November 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 (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 September 30, 2017, unless specifically stated otherwise. We assume no duty to update or supplement the information provided. Investor Presentation, November 2017 2
Omega Overview
Omega Overview: Key Credit Highlights Conservative leverage level with Funded Debt / Adj. Pro Forma EBITDA of 5.1x (Q3 2017) Consistent and stable free cash flow with strong fixed charge coverage of 4.2x (Q3 2017) Low Secured Debt / Adj. EBITDA of 0.1x and strong commitment to unsecured borrowing structure with ~$10.2 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 $910 million of cash and credit facility availability at 10/31/2017 Strong core portfolio TTM rent coverage of 1.71x (EBITDARM) and 1.34x (EBITDAR) at 6/30/2017 Geographic and operator diversification with 77 operators across 42 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 16+ years Experienced Proven ability to execute on strategies Management Team Proven ability to handle troubled assets Investor Presentation, November 2017 4
Omega Overview: Facility and Investment Overview at September 30, 2017 Omega is the largest SNF-focused REIT As of September 30, 2017, Omega’s portfolio consisted of 999 (1) operating facilities Completed approximately $460 million of investments thus far in 2017 Facility Investment Statistics Rent/Interest Statistics Mortgage Other s 4% Senior Direct 8% Housing, Financing 16% Leases 0% Skilled Real Nursing/T Estate ransitiona Investme l Care, nts 84% 88% 1) Excludes non-operating facilities either held-for-sale, closed and/or not currently providing patient services Investor Presentation, November 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 11/15/2017 OHI Share Price: 9.7% 1 Year Total Growth: 6.6% 3 Year Total Growth: 25.0% Dividend Yield at $0.65/Share Per Quarter 9.3% 5 Year Total Growth: 48.0% (based on closing price on 11/1/2017 of $28.06) Omega Share Price Growth, 12/2002-10/31/2017 $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 $0.00 Investor Presentation, November 2017 6
Financial Overview: Shareholder Returns (cont’d) Shareholder Returns Through 12/31/2016 (1) Dividends per Share and Return of Capital % Tax Treatment ($) 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, November 2017 7
Omega Overview: Quarterly Highlights 4Q 2017 Increased our quarterly common stock dividend rate to $0.65 per share 3Q 2017 Completed $203 million in new investments 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 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 $116 million (£90 million) of new UK investments 1Q 2017 Increased our quarterly common stock dividend rate to $0.62 per share Completed $5.7 million in new investments 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 Investor Presentation, November 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 $6.1 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 to 9/30: $458 million Additionally, the Company has approximately $324 million committed to its operators for capital improvement and new construction projects to be completed over the next 24-36 months (as of 9/30/2017) Continue to pursue accretive transactions Leverage existing 77 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 $910 million of combined cash and credit facility availability as of October 31, 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, November 2017 9
SNF Industry and Reimbursement Overview
Attractive Fundamentals: Primary PAC Site SNFs – preferred post-acute care environment with growing demand and limited supply SNFs 49% HHAs Medicare 39% Acute 43% Sent to Post-Acute Hospital IRFs Discharges 9% LTACHs 3% Source: MedPAC Data Book, June 2016 Investor Presentation, November 2017 11
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