OMEGA HEALTHCARE INVESTORS INVESTOR PRESENTATION SEPTEMBER 2020 - PowerPoint PPT Presentation

OMEGA HEALTHCARE INVESTORS INVESTOR PRESENTATION SEPTEMBER 2020

Disclaimers; 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 filings 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 presented on operator revenue mix, census and coverage data is based on information provided by our operators for the indicated periods ended. We have not independently verified this information, and we are providing this data for informational purposes only. Information on operator coverage calculations can be found under “Portfolio Metrics” in our most recent quarterly supplement available at our Investor Relations website at www.omegahealthcare.com. • Information is provided as of June 30, 2020, unless specifically stated otherwise. We assume no duty to update or supplement the information provided. • The sourcing of all information provided in this presentation can be found on page 59. 2 INVESTOR PRESENTATION

Table of Contents Page Company Profile & Strategy 4 Why Invest? 11 Skilled Nursing Facilities: 15 What Makes it an Attractive Asset Class? Strong Portfolio & Skilled Operators 24 Benefits of Investing in Long-term Care 34 Excellent Financials and Execution Track Record 39 Proven Investment Strategy for Future Growth 46 51 Liquidity Structure & Credit Profile 57 Commitment to ESG Principles 59 Sources & Appendix 3 INVESTOR PRESENTATION

1 Company Profile & Strategy 4 INVESTOR PRESENTATION

O MEGA S NAPSHOT (NYSE:OHI) 1992 $9.8B $12B Year Founded Total Investments Enterprise Value 69 959 96,609 Operators Properties (US & UK) Number of Beds 72% BBB- 9.0% 3-Year TSR Investment Grade Dividend Yield 5 INVESTOR PRESENTATION For source information see page 59 onwards

Differentiators that Support Today’s Strength and Tomorrow’s Opportunity Largest Skilled Long-term triple net 1 5 Nursing Facilities master leases provide (SNF) focused REIT lower risk, steady income 2 6 Positioned to benefit 17 consecutive years from macro tailwinds of dividend growth 3 7 Diversified geographic Investment grade credit exposure and tenant base with ample liquidity 4 8 Proven acquisition and Strong corporate development capabilities governance program 6 INVESTOR PRESENTATION

Experienced and Proven Management Team Dan Booth Bob Stephenson Taylor Pickett Chief Operating Officer Chief Financial Officer Chief Executive Officer 34 years in industry 35 years in industry 34 years in industry 19 years at OHI 19 years at OHI 19 years at OHI Steven Insoft Gail Makode Neal Ballew Chief Corporate Chief Legal Officer Chief Accounting Officer Development Officer 10 years in industry 21 years in industry 34 years in industry 1 year at OHI 1 year at OHI 5 years at OHI Vikas Gupta Matthew Gourmand Megan Krull SVP , Acquisitions SVP , Investor Relations SVP , Operations & Development 22 years in industry 20 years in industry 17 years in industry 3 years at OHI 10 years at OHI 9 years at OHI 7 INVESTOR PRESENTATION

Strategy that Supports Long-Term Shareholder Value Creation Growth Through Accretive Investments Maintain Shareholder Continued Financial Solid Dividend Value Creation Strength Growth Leverage Sound Corporate Stewardship Practices 8 INVESTOR PRESENTATION

COVID-19 Update Impact Response Outcomes COVID-19 is particularly Operators implemented new The contagion rate within 1 1 1 impactful to the old and frail, and evolving protocols to SNFs has declined a key cohort of SNFs and ALFs limit the spread of COVID-19 significantly since the initial peak of the pandemic Occupancy declined ~8% Staff at SNFs and ALFs have risked Through July, we believe 2 2 2 between February and mid-July their health and the health of government relief made most 2020 their families to protect residents SNF operators whole for losses related to COVID-19 July occupancy was The Federal and many State We collected more than 99% of 3 3 3 materially in line with governments provided necessary our rents in the second quarter June occupancy and timely financial relief to the and July 2020 SNF industry to date Expenses in April were up Excess Cares Act relief to be 4 4 ~$18 per patient day from repaid by operators at the February conclusion of the pandemic Information provided as of August 6 th , 2020 9 INVESTOR PRESENTATION

What Will Happen Next Regarding COVID-19? While Questions Remain … When will the Will government financial How quickly will Will operator costs If these costs occur, pandemic end? support continue to be occupancy remain elevated for the will they be covered by both sufficient and timely recover to pre- foreseeable future due to increased government through the conclusion COVID-19 levels? increased infection reimbursement? of this crisis? control protocols? … We Have Confidence in the Future Skilled nursing facilities still The secular tailwind of improving Our relationship with our operators fulfill an essential need within demographics will remain in will be even stronger for having the healthcare continuum place after this pandemic faced this pandemic together 10 INVESTOR PRESENTATION

2 Why Invest? 11 INVESTOR PRESENTATION

Investment Thesis 1 2 3 4 5 Well Positioned to Established, Effective Anchored Consistent Capitalize on Experienced and Balance Sheet Operating Model Growth, High-Yield Future Growth Diversified Management 12 INVESTOR PRESENTATION

Investment Thesis and Supporting Elements 1 2 3 4 5 Established, Effective Well Positioned to Consistent Growth, Anchored Operating Experienced and Balance Sheet Capitalize on Future High-Yield Model Diversified Management Growth • Experienced and proven • Prudent fixed rent • A low cost, needs-base • A conservative balance • A growing aging management team escalators provide tenant service offering sheet and well-laddered population provides durability provides security debt provides stability opportunity • A diversified portfolio • A stable discharge and provides consistency • Strong dividend yield • Significant liquidity • Leveraging existing reimbursement • Long leases and limited provides equity support provides flexibility operator relationships environment provides provides demand new supply provide clarity resiliency • Triple-net leases provide • Proven access to capital • Acquisitions and earnings dependability markets provides • Quality operators bring predictability development provide patient care expertise • High margins provide growth superior yields 13 INVESTOR PRESENTATION

Attractive Investment Opportunity INCOME STOCK Dividend Yield of 9.0% VALUE STOCK GROWTH Trades at STOCK 9.2x AFFO Annualized AFFO Growth of 8.9% since 2004 14 INVESTOR PRESENTATION

3 Skilled Nursing Facilities: What Makes it an Attractive Asset Class? 15 INVESTOR PRESENTATION

Skilled Nursing Facilities Meet an Essential Need LOWER AVG. HIGHER AVG. COST COST 16 INVESTOR PRESENTATION

More Patients Are Discharged to Skilled Nursing Facilities Than to Any Other Type of Facility MEDICARE FFS HOSPITAL DISCHARGE DESTINATIONS Skilled Nursing 20.9% Facilities (SNFs) Home Health Care 19.4% Other 7.0% IRFs 3.7% Over the last decade, SNFs have consistently been the highest discharge destination LTACH 1.0% 17 INVESTOR PRESENTATION

Lowest Cost Provider of Post-Acute 24-Hour Nursing Care SNFs provide care for much higher acuity patients that can be handled in Senior Housing or Home Health settings – so hospital discharges to SNFs have held steady AVG. COST PER DAY PER CARE SETTING $2,517 $1,672 $1,657 $530 Hospital IRF LTACH SNF ACUTE CARE POST-ACUTE CARE 18 INVESTOR PRESENTATION

Skilled Nursing Facilities are Primarily Funded Through Medicare and Medicaid MEDICARE MEDICAID $550 Patient Per Day (PPD) Patient Per Day (PPD) $525 $225 $500 $215 $475 $205 $450 $195 $425 $185 $400 $375 $175 Dec-09 Dec-11 Dec-13 Dec-15 Dec-17 Dec-19 Dec-09 Dec-11 Dec-13 Dec-15 Dec-17 Dec-19 Early 80’s 20-25 Days $400-$500 Early 80’s 18 Months $210 Age of Resident Length of Stay Cost Per Day Age of Resident Length of Stay Cost Per Day AVERAGES 19 INVESTOR PRESENTATION

Omega’s Average Facility Statistics ~ 100 83% Avg. Beds in Facility Occupancy OPERATOR PAYOR MIX Medicare 35% 53% Medicaid 12% Private / Other 20 INVESTOR PRESENTATION