Two restructured operators of Omega Healthcare Investors paid less contractual rent than owed in November, the Hunt Valley, MD-based real estate investment trust said Monday in an online investor presentation.
One of those restructured operators is Westport, CT-based Maplewood Senior Living, with which Omega had agreed to a formal restructuring in the first quarter of the year. According to Omega, in November, Maplewood paid $3.5 million less than its contractual rent, and the company is anticipated to pay $3 million less than its contractual rent in December.
Additionally, LaVie Care Centers, formally known as Consulate Health Care, has fallen behind in its restructuring agreement with Omega. LaVie paid $1.4 million in rent in November, which is below its previous run-rate of $2.5 million per month. The REIT said that it is unclear what the company will pay in December.
The combined effect of the expected shortfalls means that “we no longer expect our fourth quarter FAD [funds available for distribution] to approximate our dividend,” according to Omega.
The company’s most recent quarterly dividend of $0.67 per share on its common stock was announced Oct. 20 and distributed Nov. 15.
In the long run, the REIT said it still has confidence in the value and cash flow of both companies.
“We continue to work diligently to resolve our outstanding operator issues. However, until we reach agreements with these operators, the ultimate resolution of these operator issues is unknown,” Omega said.
