Omega Healthcare Investors (NYSE: OHI) reported Q4 EPS of $0.31, $0.06 worse than the analyst estimate of $0.37. Revenue for the quarter came in at $219.8 million versus the consensus estimate of $239.64 million.

CEO COMMENTS

Taylor Pickett, Omega’s Chief Executive Officer, stated, “The fourth quarter represented a strong conclusion to a very productive year. In December, we completed our acquisition of a 49% interest in a U.K. senior housing joint venture for approximately $90 million. In addition, we continue to source smaller, attractively priced acquisitions and new development projects with our existing tenants, while opportunistically divesting of certain non-core holdings.”

Mr. Pickett continued, “In 2019, we were able to accretively invest over $1.6 billion, furthering our relationship with quality existing tenants while selectively diversifying our operator base by leasing to additional proven and experienced operators.”

Mr. Pickett concluded, “We expect the momentum of 2019 to carry into 2020. We are excited for our Maplewood-run Carnegie Hill assisted living facility to begin accepting residents in the coming months. The new Medicare reimbursement model, the Patient Driven Payment Model or PDPM, has received positive feedback from operators. While it’s too early to make any definitive conclusions, when combined with the recent 2.4% increase in Medicare reimbursement and the promising demographic tailwinds, we believe our operators are well-positioned to weather the continued labor cost pressures and generate solid financial performance over time.”

GUIDANCE:

Omega Healthcare Investors sees FY2020 EPS of $1.58-$1.66, versus the consensus of $1.64.

The Company expects its 2020 annual net income to be between $1.58 and $1.66 per diluted share and its Adjusted FFO to be between $3.12 to $3.20 per diluted share.

Bob Stephenson, Omega’s CFO, commented, “Our 2020 guidance reflects the annual impact of $863 million of net 2019 fourth quarter acquisitions and asset sales, revenue from Maplewood related to the Carnegie Hill project, continuing Daybreak on a cash basis and the full impact of our 2019 capital markets activity.” Mr. Stephenson continued, “The $296 million in net proceeds from the physical settlement of our 7.5 million common shares equity forward agreement on December 27th adds additional capacity to our credit facility for potential acquisitions.”

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