Omega Healthcare Investors, Inc. (NYSE:OHI) Q1 2023 Earnings Conference Call May 3, 2023 10:00 AM ET

Company Participants

Michele Reber - Senior Director, Asset Management

Taylor Pickett - Chief Executive Officer

Bob Stephenson - Chief Financial Officer

Dan Booth - Chief Operating Officer

Megan Krull - Senior Vice President, Operations

Conference Call Participants

Jonathan Hughes - Raymond James

Connor Siversky - Wells Fargo Securities

Michael Griffin - Citi

Steven Valiquette - Barclays

Joshua Dennerlein - Bank of America Merrill Lynch

Vikram Malhotra - Mizuho

Tayo Okusanya - Credit Suisse

Operator

Greetings, and welcome to the Omega Healthcare Investors First Quarter 2023 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to Michele Reber. You may begin.

Michele Reber

Thank you and good morning. With me today are Omega’s CEO, Taylor Pickett; COO, Dan Booth; CFO, Bob Stephenson; and Megan Krull, Senior Vice President of Operations.

Comments made during this conference call that are not historical facts may be forward-looking statements such as statements regarding our financial projections, dividend policy, portfolio restructurings, rent payments, financial condition or prospects of our operators, contemplated acquisitions, dispositions or transitions and our business and portfolio outlook generally.

These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially. Please see our press releases and our filings with the Securities and Exchange Commission, including, without limitation, our most recent report on Form 10-K, which identify specific factors that may cause actual results or events to differ materially from those described in forward-looking statements.

During the call today, we will refer to some non-GAAP financial measures, such as NAREIT FFO, adjusted FFO, FAD and EBITDA. Reconciliations of these non-GAAP measures to the most comparable measure under generally accepted accounting principles, as well as an explanation of the usefulness of the non-GAAP measures are available under the Financial Information section of our website at www.omegahealthcare.com and in the case of NAREIT FFO and adjusted FFO, in our recently issued press release. In addition, certain operator coverage and financial information that we discuss is based on data provided by our operators that has not been independently verified by Omega.

I will now turn the call over to Taylor.

Taylor Pickett

Thanks, Michele. Good morning. And thank you for joining our first quarter 2023 earnings conference call. Today, I will discuss our first quarter financial results, operator restructurings and certain key operating trends. As expected, our first quarter per share FAD, Funds Available for Distribution of $0.60 per share was less than our quarterly dividend of $0. 67 per share, resulting in a dividend payout ratio of 112%. We expect that the dividend payout ratio will rapidly improve as Agemo resumed paying quarterly rent and interest of $6.5 million on April 1.