Omega Healthcare Investors reported second-quarter net income of $86.9 million, a new $1.45 billion unsecured credit facility and a new $1 billion at-the-market program during its second-quarter earnings call Tuesday.
“The second quarter was a positive one for the company, with strong second-quarter adjusted [funds from operations] and [funds available for distribution] as well as continued solid rent collections,” CEO Taylor Pickett said in a press release issued late Monday in conjunction with the call. “In addition, we were able to further strengthen our balance sheet with a new and expanded credit facility and robust equity issuance in the quarter,” he said.
Omega’s net income for the first half of 2021 was $251.2 million, compared with net income of $194.2 million for the same period last year. The REIT attributed the year-over-year increase to several factors: an $89.8 million increase in gain on the sale of assets, $40.7 million in revenue from incremental new investments completed and a $10.1 million increase in income from unconsolidated joint ventures.
Omega sold six facilities in the second quarter for approximately $13 million in cash, recognizing a gain of approximately $4.1 million. The REIT recorded a net impairment charge of $8.8 million to reduce the net book value of three facilities to their estimated fair values or expected selling prices. Additionally, the REIT had nine facilities classified as assets held for sale, totaling approximately $35 million.
“In the second quarter of 2021, we continued to further enhance our already strong balance sheet and liquidity by entering into a new $1.45 billion unsecured credit facility in April and implementing a new $1 billion ATM program in May,” said Bob Stephenson, Omega’s chief financial officer. “We ended the quarter with $100 million of cash on our balance sheet and a completely undrawn credit facility, providing Omega with nearly $1.6 billion of liquidity. We issued approximately $150 million of equity throughout the quarter, with our leverage dropping below five times as we continue to gradually de-lever.”
See more coverage of the earnings call in McKnight’s Senior Living.
