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Dec 31, 2023

Omega Healthcare Q4 2023 Earnings Report

Omega Healthcare reported an increase in revenue and net income for Q4 2023, driven by operator restructurings, new investments, and a decrease in expenses.

Key Takeaways

Omega Healthcare Investors, Inc. announced its Q4 2023 results, featuring a net income of $57 million, or $0.22 per common share, and adjusted funds from operations (AFFO) of $173 million, or $0.68 per common share. The company completed $249 million in new investments and sold 32 facilities for $324 million, with improving portfolio operating performance.

Net income for the quarter was $57 million, or $0.22 per common share.

Adjusted Funds From Operations (AFFO) reached $173 million, or $0.68 per common share.

New investments totaled $249 million, including real estate loans and acquisitions.

32 facilities were sold for $324 million, generating a $10 million gain.

Total Revenue
$239M
Previous year: $145M
+65.2%
EPS
$0.68
Previous year: $0.73
-6.8%
Gross Profit
$236M
Previous year: $140M
+68.1%
Cash and Equivalents
$443M
Previous year: $297M
+49.0%
Total Assets
$9.12B
Previous year: $9.41B
-3.1%

Omega Healthcare

Omega Healthcare

Omega Healthcare Revenue by Segment

Forward Guidance

Omega Healthcare anticipates its 2024 first and second quarter earnings to continue to be impacted by restructuring efforts. The company expects its 2024 Adjusted FFO to be between $2.70 and $2.80 per diluted share.

Positive Outlook

  • Acquisitions completed in 2023 and year-to-date 2024
  • Quarterly G&A expense of approximately $11.5 million to $13.5 million
  • $94 million in asset sales
  • Repayment of $400 million in senior unsecured debt due 2024
  • Timely completion of anticipated operator restructurings and transitions

Challenges Ahead

  • No material changes in market interest rates
  • No additional operators are placed on a cash-basis for revenue recognition
  • Excludes additional acquisitions and asset sales
  • Excludes certain revenue and expense items, interest refinancing expense, additional capital transactions, acquisition costs
  • Excludes additional provisions for credit losses, if any