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Jun 30, 2024

Omega Healthcare Q2 2024 Earnings Report

Omega Healthcare's financial performance showed strong sequential improvement due to accretive investments and portfolio restructurings.

Key Takeaways

Omega Healthcare Investors reported a net income of $117 million, or $0.45 per common share, for the second quarter of 2024. The company completed $221 million in new investments and increased its full-year AFFO guidance to $2.78-$2.84 per share.

Net income for the quarter was $117 million, or $0.45 per common share.

Nareit FFO for the quarter was $189 million, or $0.72 per common share.

Adjusted FFO for the quarter was $185 million, or $0.71 per common share.

Completed $221 million in new investments during the quarter.

Total Revenue
$253M
Previous year: $250M
+1.0%
EPS
$0.71
Previous year: $0.74
-4.1%
Gross Profit
$177M
Previous year: $246M
-27.8%
Cash and Equivalents
$35.2M
Previous year: $351M
-90.0%
Total Assets
$8.85B
Previous year: $9.4B
-5.9%

Omega Healthcare

Omega Healthcare

Omega Healthcare Revenue by Segment

Forward Guidance

Omega Healthcare increased its 2024 adjusted FFO guidance to be between $2.78 and $2.84 per share from its previous guidance of between $2.70 and $2.80 per share.

Positive Outlook

  • Includes the annual impact of $648 million in new investments completed through July 2024
  • Assumes quarterly G&A expense of approximately $11.5 million to $13.5 million in Q3 and Q4
  • Includes $77 million in asset sales
  • Assumes timely completion of anticipated operator restructurings and transitions
  • Assumes no material changes in market interest rates

Challenges Ahead

  • Excludes additional acquisitions and asset sales
  • Excludes certain revenue and expense items
  • Excludes interest refinancing expense
  • Excludes additional capital transactions
  • Excludes acquisition costs and additional provisions for credit losses, if any