Omega Healthcare Earnings Smashes Analyst Expectations

2/8/17

By Justina Vasquez, Maryland Business News Wire

Omega Healthcare Investors Inc., a Hunt Valley-based health care REIT, reported an earnings increase that far exceeded analyst expectations.

The real estate investor’s fourth-quarter earnings reached $129.9 million, or 63 cents per share, a 104 percent increase from the same quarter one year prior. The results, reported Wednesday, beat analyst expectations of 48 cents per share by 31.3 percent.

The company’s funds from operations, a measure of income typical of REITs, reached $171.5 million, or $84 cents. That increased 34.6 percent from last year.

Yearly earnings were $383.4 million, or $1.90 per share, up 64.3 percent from last year.

“We share the industry leadership and investor concerns that increasing labor and liability costs and evolving reimbursement models may put near term financial strain on many operators within our industry,” said Taylor Pickett, chief executive officer, in a statement.

But he emphasized the strength of the company’s operations for overcoming “an increasingly difficult operating environment.”

The report fleshed out Omega’s Equity shelf program and dividend reinvestment and common stock purchase plan, a financing strategy it began in its fourth quarter, selling 1 million shares and generating $30.4 million.

The earnings report release comes days after the company reported five separate private equity offerings under the subsidiary company names LG-OHI 1, 2, 3, 4 and Parent REIT, raising Omega a combined total of $625,000.

The company’s stock price grew to $32.57 Wednesday, up 0.56 percent, or 18 cents, from Tuesday.

Omega’s conference call for its fourth quarter earnings results will be Thursday, Feb. 9, 2017 at 10 a.m., the press release reported.

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