Omega Healthcare Investors (NYSE: OHI) reported Q1 EPS of $0.39, $0.03 worse than the analyst estimate of $0.42. Revenue for the quarter came in at $253.02 million versus the consensus estimate of $250.41 million.

CEO COMMENTS

Taylor Pickett, Omega’s Chief Executive Officer, stated, “While we are pleased to announce strong first quarter results, we recognize that investors are more focused on how our operators are weathering the impact of COVID-19 on their facilities and how this is affecting their capacity to pay our rent. It is a challenging period on all fronts for our operators. As well as dealing with an unprecedented pandemic, which has proved particularly dangerous to their frail and vulnerable residents, they have seen declining occupancy and significantly elevated costs combine to materially impact their financial performance. Thankfully, the various federal and state agencies that oversee skilled nursing have acted quickly and effectively to provide financial support to the industry, allowing operators to focus on their primary job of caring for their residents.”

Mr. Pickett continued, “While the full extent of the impact of COVID-19 and its potential short-term impact on our operations has yet to be seen, we believe that the attractive elements of this asset class, with its needs-based nature, constrained supply and escalating demand, will remain intact once this pandemic has been resolved.”

Mr. Pickett concluded, “We are proud of the tremendous efforts of our operators and their heroic staff, risking their own health and that of their families to protect and care for their residents. We believe their bravery has received insufficient recognition, but we are aware of the sacrifices they are making, and we continue to stand ready to provide them the support and help they need at this extraordinary time.”

2020 GUIDANCE WITHDRAWN

Bob Stephenson, Omega’s CFO, commented, “We are pleased with our first quarter earnings and having collected 98% of our April rents and mortgage payments. However, our 2020 earnings guidance, issued on February 5, 2020, did not include or contemplate any adverse impact from COVID-19. Given the lack of certainty around the future depth and breadth of this pandemic, its impact on the financial performance of our operators and the extent of future necessary government support, we feel it is prudent to withdraw our 2020 earnings guidance.”

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