Three operators, representing approximately 8.6% of Omega Healthcare Investors’ estimated third-quarter contractual rent and mortgage payments, have stopped paying rent in 2021, the Hunt Valley, MD-based real estate investment trust reported Tuesday.
Overall, the REIT reported in a business update, rent collections of more than 98% in the second quarter.
Omega said it previously had disclosed information related to two of the operators. Since then, an additional operator, representing approximately 5.4% of the REIT’s estimated third-quarter contractual rent and mortgage payments, recently approached the company about its current capacity to pay future rents and interest, Omega said. That operator paid nothing in August and is not expected to pay in September.
“Omega holds letters of credit, cash deposits and certain limited personal guarantees that represent approximately $17.6M in the aggregate. We are considering our alternative options,” according to the update. “No conclusions have been reached at this time.”
The REIT said there will not be a write-off of straight-line non-cash revenue, because the operator in question previously converted to cash-basis accounting.
“We are currently evaluating its outstanding loans, with a carrying value of approximately $34.3M, for impairment,” Omega said.