Omega Healthcare Investors Inc. (NYSE:OHI) Q1 2015 Earnings Conference Call - Final Transcript

Apr 29, 2015 • 10:00 am ET


Omega Healthcare Investors Inc. (NYSE:OHI) Q1 2015 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Omega Healthcare First Quarter Earnings Call for 2015. All participants will be in listen-only mode [Operator Instructions]. After today's presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Michelle Reiber. Mrs. Reiber the floors is yours ma'am.

Michelle Reiber

Thank you and good morning. With me today are Omega's CEO, Taylor Pickett; CFO, Bob Stephenson; and COO, Dan Booth and our Chief Corporate Development Officer, Steven Insoft.

(Forward-looking Statements)

I will now turn the call over to Taylor.

Taylor Pickett

Thanks, Michelle. Good morning and thank you for joining Omega's First Quarter 2015 Earnings Conference Call.

Adjusted FFO for the first quarter is $0.71 per share, adjusted funds available for distribution FAD for the quarter is $0.65 per share. We increased our quarterly common dividend to $0.54 per share. This is a 2% increase from the last quarter and an 8% from the first quarter 2014. We've now increased the dividend 11 consecutive quarters.

On April 15, we press released our 2015 annual guidance. We broke this guidance down by quarter and compared the guidance to our actual 2014 quarterly results. It is important to analyze guidance on a quarterly basis because our first quarter results were diluted by our mid-February $459 million equity offering and to a lesser extent our early March $690 million bond offering.

If we compare the midpoint of our fourth quarter 2015 guidance to fourth quarter 2014 actual results both adjusted funds from operations and FAD are approximately 10% higher in 2015. Our growth over the next few quarters and into 2016 will be fueled principally by acquisitions. Our pipeline continues to be active.

The Aviv merger closed on April 1, we will begin reporting the combined company tenant and other information in the second quarter. The innovation of the company has proceeded as plan with all the company financial and tenant data analysis migrating Hunt Valley. Our Chicago team is focused on new acquisitions, capital improvements to our existing real estate and new construction projects. Bob will now review our first quarter financial results.

Robert Stephenson

Thank you Taylor and good morning. Our reportable FFO on a diluted basis was $79.7 million or $0.59 per share for the quarter as compared to $84.4 million or $0.68 per share for the first quarter of 2014. Our adjusted FFO was $95.5 million or $0.71 per share for the quarter and excludes the impact of $9.4 million of interest refinance expenses, $4.9 million or expenses associated with acquisitions and $1.6 million of non-cash stock based compensation expense. Further information regarding the calculation of FFO and adjusted FFO is included in our earnings release and on our website.

Operating revenue for the quarter was $133.4 million versus $121 million for the first quarter of 2014. The increase was primarily a result of incremental revenue from a combination of new investments completed since the first quarter of '14, capital improvements made