Omega Healthcare Investors, Inc. (NYSE:OHI) Q1 2024 Earnings Conference Call May 3, 2024 10:00 AM ET

Company Participants

Michele Reber - Investor Relations
Taylor Pickett - Chief Executive Officer
Dan Booth - Chief Operating Officer
Bob Stephenson - Chief Financial Officer
Megan Krull - Senior Vice President, Operations

Conference Call Participants

Jonathan Hughes - Raymond James
Vikram Malhotra - Mizuho Securities
Michael Griffin - Citi
Juan Sanabria - BMO Capital Markets
Michael Carroll - RBC Capital Markets
Alex Fagan - Robert W. Baird
Emily Meckler - Green Street

Operator

Greetings, and welcome to the Omega Healthcare Investors First Quarter 2024 Earnings Conference Call. [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.

Michele Reber

Thank you, and good morning. With me today is 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, potential transactions, operator prospects, and outlook generally. Factors that could cause actual results to differ materially from those in the forward-looking statements are detailed in the company's filings with the SEC.

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 are available in the quarterly supplement. 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, Michelle. Good morning, and thank you for joining our first quarter 2024 earnings conference call. Today, I will discuss our first quarter financial results and certain key operating trends. First quarter FAD, funds available for distribution, of $0.65 per share was better than expected, and should continue to improve as several portfolios are in the process of being transitioned, which will result in meaningful FAD upside over the next few quarters. Our dividend payout ratio, of 103%, remains slightly elevated, but should drop into the mid-90% range in the upcoming quarters. We continue to have a handful of cash basis operators, including Maplewood and LaVie, that will impact our go-forward AFFO and FAD, making full-year 2024 FAD difficult to predict.