In This Article:
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Revenue: $279 million for Q4 2024, up from $239 million in Q4 2023.
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NAREIT FFO: $196 million or $0.68 per share for Q4 2024, compared to $129 million or $0.50 per share in Q4 2023.
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Adjusted FFO: $214 million or $0.74 per share for Q4 2024.
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Funds Available for Distribution (FAD): $202 million or $0.70 per share for Q4 2024.
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Debt-to-EBITDA Ratio: Reduced to below 4.0 times.
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Cash Position: Over $500 million at year-end, used to repay a $400 million bond in January 2025.
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Credit Facility: Full borrowing capacity of $1.45 billion available.
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Fixed Charge Coverage Ratio: 4.7 times.
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Net Funded Debt to Annualized Adjusted Normalized EBITDA: 3.96 times, lowest in 10 years.
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2025 AFFO Guidance: $2.90 to $2.98 per share.
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New Investments in Q4 2024: $340 million completed, funded through issuance of 11 million shares for $438 million.
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Operator EBITDAR Coverage: 1.5 times as of September 30, 2024.
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2024 Total New Investments: $1.1 billion, with $782 million in the UK.
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Q4 2024 New Investments: $363 million, including $179 million in real estate acquisitions and $162 million in real estate loans.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Omega Healthcare Investors Inc (NYSE:OHI) reported a significant increase in revenue for the fourth quarter, reaching $279 million compared to $239 million in the same period of 2023.
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The company successfully reduced its leverage to below 4.0 times debt-to-EBITDA, marking the lowest leverage in 10 years.
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Omega Healthcare Investors Inc (NYSE:OHI) completed $340 million of new investments in the fourth quarter, funded through the issuance of 11 million shares of equity.
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The company's acquisition pipeline remains active, with over $1.1 billion in new investments completed in 2024 and a healthy outlook for 2025.
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Omega Healthcare Investors Inc (NYSE:OHI) has a strong balance sheet, ending the year with over $500 million in cash, which was used to repay a $400 million bond in January 2025.
Negative Points
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The company's 2025 AFFO guidance reflects a dilutive impact from significant fourth-quarter share issuances.
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Omega Healthcare Investors Inc (NYSE:OHI) faces ongoing challenges with labor shortages and reimbursement levels in select markets.
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The company is engaged in restructuring activities with a major operator, Levi, which is still in bankruptcy proceedings.
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There is uncertainty surrounding potential regulatory changes and staffing mandates under the new administration.
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The company assumes no material changes in market interest rates, which could impact financial performance if rates fluctuate unexpectedly.