Omega Healthcare Investors (NYSE: OHI) reported Q1 EPS of $0.34, $0.02 worse than the analyst estimate of $0.36. Revenue for the quarter came in at $223.7 million versus the consensus estimate of $219.9 million.

CEO COMMENTS

Taylor Pickett, Omega’s Chief Executive Officer, stated, “We had a solid first quarter. We announced our pending acquisition of MedEquities, resolved the sale and transition of our legacy Orianna assets and began to see our general and administrative expenses tick down as legal costs began to moderate. We also announced that we had provided one of our operators, Daybreak, near-term liquidity relief via a $2.5 million rent deferral in each of the first two quarters of 2019. During the first quarter, they paid in accordance with these terms and we began to see an improvement in their patient quality mix in the first few months of 2019. We continue to work closely with Daybreak to maximize rents and ensure they protect the value of our real estate assets. While our operators continue to battle a challenging operating environment, a number of positive factors lead us to believe this environment will improve in the near future. The implementation of the Patient Driven Payment Model (“PDPM”) and the recently announced 2.5% increase in Medicare reimbursement, both starting in October, will augment the improving census driven by a multi-decade demographic tailwind.”

Mr. Pickett continued, “With the MedEquities closing imminent, the acquisition pipeline beginning to pick up and our flagship Manhattan senior housing development, Inspīr at Carnegie Hill, due to open at the end of the year, we are optimistic for the future and believe we will be able to take advantage of our preeminent platform to continue to grow our portfolio and increase shareholder value.”

GUIDANCE:

Omega Healthcare Investors sees FY2019 EPS of $1.49-$1.61, versus the consensus of $1.62.

Bob Stephenson, Omega’s CFO commented, “Our 2019 guidance assumes that the MedEquities merger will be completed in mid-May. We expect to redeploy most of the cash proceeds received in the first quarter from the Orianna transaction throughout the remainder of 2019; however, the timing is unpredictable.” Mr. Stephenson continued, “As I stated in February, we may continue to issue equity under our ATM to further de-lever, which may significantly impact our guidance. To clarify our longer-term expected operating performance, we have reiterated our fourth quarter 2019 estimated guidance to be between $0.78 and $0.81 per share along with our annual guidance.”

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