Omega Healthcare Investors (NYSE: OHI) reported Q3 EPS of $0.28, $0.11 worse than the analyst estimate of $0.39. Revenue for the quarter came in at $221.85 million versus the consensus estimate of $219.03 million.

Taylor Pickett, Omega’s Chief Executive Officer, stated, “I am happy with the continued progress we made this quarter. We were able to successfully transition 22 of our legacy Orianna facilities to current operators with good rent coverage. We continue to make headway with the sale and/or transition of the remaining legacy Orianna facilities and we expect this process to conclude in the next few months. Furthermore, we remain confident that the final resolution will result in our previously stated range of $32 million to $38 million of annual rent or rent equivalents from the assets that previously constituted our Orianna portfolio.” Mr. Pickett concluded, “We have substantially completed our strategic disposition program and, during the quarter, we began the process of redeploying the capital realized from this program. While the pipeline is currently not as robust as we would hope, we believe we will continue to find opportunities to allocate capital to quality assets run by sophisticated operators. As such, in the coming 12 months we would envision returning to our historical growth model where acquisitions meaningfully exceed dispositions.”

Bob Stephenson, Omega’s CFO commented, “Our financial performance improved sequentially in the third quarter as we transitioned some of our legacy Orianna facilities to current operators and began to redeploy capital from our strategic disposition program. We believe resolution of the remaining legacy Orianna portfolio and further capital investment will continue to improve operating performance, enhancing our dividend coverage and returning us to our targeted leverage range, to which we remain committed.” Mr. Stephenson continued, “With a well-laddered debt profile and no near-term maturities, we believe we are well-positioned from a balance sheet perspective to weather the interest rate volatility and continue to grow our business.”

GUIDANCE:

Omega Healthcare Investors sees FY2018 EPS of $1.48-$1.51, versus the consensus of $1.59.

For earnings history and earnings-related data on Omega Healthcare Investors (OHI) click here.