Omega Announces $200 Million in New Investments; Hurricane Harvey Update
September 05 2017 - 3:45PM
Business Wire
$200M in New Investments. Omega Healthcare Investors,
Inc. (NYSE:OHI) (the “Company” or “Omega”), the nation’s largest
owner of post-acute care facilities, today announced that on August
31, 2017, it acquired 15 skilled nursing facilities (“SNFs”) for
approximately $190 million from two unrelated third parties and
leased them to an existing operator. The 15 Indiana SNFs with
approximately 2,074 beds were added to the existing operator’s
master lease with an initial annual cash yield of 9.5% and 2.5%
annual escalators. Simultaneously with the closing of the
acquisition, the Company entered into a $9.4 million loan to
purchase the leasehold interest in a 135 bed Indiana SNF with the
same operator. The loan is cross-defaulted and cross-collateralized
with the Company’s existing master lease with that operator. The
loan has an initial term of 5 years and bears an initial annual
interest rate of 12.0% with 2.5% annual escalators.
Commenting on the transaction, Omega’s CEO, Taylor Pickett said,
“We are excited to further strengthen our portfolio with one of our
top SNF operators with this acquisition.” Mr. Pickett continued,
“We will continue to work with our operators to identify
acquisitions and dispositions that strengthen portfolio cash flows.
We are evaluating over $200 million of disposition opportunities
within our portfolio that could potentially close over the next 9 -
12 months.”
Hurricane Harvey Update. The Company has 32 facilities
located in Texas and Louisiana that were within the proximity of
Hurricane Harvey’s path. Two facilities located along the Sabine
River were evacuated. Mr. Pickett stated, “Omega sends its thoughts
and prayers to our operators, their staff, the residents at the
facilities, and the surrounding communities that have been impacted
by Hurricane Harvey.” Mr. Pickett continued, “Although our
facilities appear to have relatively little damage, it is much too
early to assess the effect on the surrounding communities and the
dedicated staff that cares for our facility residents.”
Omega is a real estate investment trust investing in and
providing financing to the long-term care industry. As of June 30,
2017, Omega has a portfolio of investments that includes
approximately 1,000 properties located in 42 states and the United
Kingdom and operated by 77 different operators.
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements regarding Omega’s or its tenants’,
operators’, borrowers’ or managers’ expected future financial
condition, results of operations, cash flows, funds from
operations, dividends and dividend plans, financing opportunities
and plans, capital markets transactions, business strategy,
budgets, projected costs, operating metrics, capital expenditures,
competitive positions, acquisitions, investment opportunities,
dispositions, merger integration, growth opportunities, expected
lease income, continued qualification as a REIT, plans and
objectives of management for future operations and statements that
include words such as “anticipate,” “if,” “believe,” “plan,”
“estimate,” “expect,” “intend,” “may,” “could,” “should,” “will”
and other similar expressions are forward-looking statements. These
forward-looking statements are inherently uncertain, and actual
results may differ from Omega’s expectations. Omega does not
undertake a duty to update these forward-looking statements, which
speak only as of the date on which they are made.
Omega’s actual results may differ materially from those
reflected in such forward-looking statements as a result of a
variety of factors, including, among other things: (i)
uncertainties relating to the business operations of the operators
of Omega’s properties, including those relating to reimbursement by
third-party payors, regulatory matters and occupancy levels; (ii)
regulatory and other changes in the healthcare sector; (iii)
changes in the financial position of Omega’s operators; (iv) the
ability of any of Omega’s operators in bankruptcy to reject
unexpired lease obligations, modify the terms of Omega’s mortgages
and impede the ability to collect unpaid rent or interest during
the pendency of a bankruptcy proceeding and retain security
deposits for the debtor's obligations; (v) the availability and
cost of capital; (vi) changes in Omega’s credit ratings and the
ratings of its debt securities; (vii) competition in the financing
of healthcare facilities; (viii) Omega’s ability to maintain its
status as a REIT; (ix) Omega’s ability to manage, re-lease or sell
any owned and operated facilities, if any; (x) Omega’s ability to
sell closed or foreclosed assets on a timely basis and on terms
that allow Omega to realize the carrying value of these assets;
(xi) the effect of economic and market conditions generally, and
particularly in the healthcare industry; (xii) the potential impact
of changes in the SNF and ALF market or local real estate
conditions on the Company’s ability to dispose of assets held for
sale for the anticipated proceeds or on a timely basis, or to
redeploy the proceeds therefrom on favorable terms; (xiii) the
potential impact of Hurricane Harvey and other extreme weather
events on our facilities on our facilities and the financial
condition of our operations; and (xiv) other factors identified in
Omega’s filings with the Securities and Exchange Commission.
Statements regarding future events and developments and Omega’s
future performance, as well as management's expectations, beliefs,
plans, estimates or projections relating to the future, are forward
looking statements. Omega undertakes no obligation to update any
forward-looking statements contained in this announcement.
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Omega Healthcare Investors, Inc.Bob Stephenson, CFO,
410-427-1700
Omega Healthcare Investors (NYSE:OHI)
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