Omega Healthcare reports Q1 FFO 75c, consensus 75c

Reports Q1 revenue $276.8M, consensus $236.7M. Taylor Pickett, CEO, stated, “We are pleased with our first quarter results, as we continue to grow FAD per share, while further de-levering the balance sheet. We have accretively invested approximately $423 million year-to-date through April 30th and, as a result, we are increasing our 2025 AFFO guidance to be between $2.95 and $3.01 per share from our previous guidance of between $2.90 and $2.98 per share. In March, Genesis did not pay its contractual rent of $4.2 million, and we partially pulled a letter of credit to cover the full shortfall. Genesis paid full contractual rent in April and has remained current on all interest obligations on our secured term loan. Genesis’s management has indicated that their current liquidity issues stem from a tightening of their borrowing base by their asset-based lender, as well as professional liability obligations. We believe Omega’s credit position with Genesis remains strong, with our trailing 12-month EBITDAR coverage exceeding 1.6x, as well as significant collateral behind our $118 million term loan. Overall, the backdrop continues to be favorable. Operating metrics remain strong, with both occupancy and coverage modestly improving in the quarter. The pipeline remains very active, and we have a cost of capital that should allow us to continue to accretively invest.”