HUNT VALLEY, Md.--(BUSINESS WIRE)--$200M in New Investments. Omega Healthcare Investors, Inc. (NYSE:OHI), the nation’s largest owner of post-acute care facilities, today announced that on August 31, 2017, it acquired 15 skilled nursing facilities (“SNFs”) for approximately $190 million from two unrelated third parties and leased them to an existing operator. The 15 Indiana SNFs with approximately 2,074 beds were added to the existing operator’s master lease with an initial annual cash yield of 9.5% and 2.5% annual escalators. Simultaneously with the closing of the acquisition, the Company entered into a $9.4 million loan to purchase the leasehold interest in a 135 bed Indiana SNF with the same operator. The loan is cross-defaulted and cross-collateralized with the Company’s existing master lease with that operator. The loan has an initial term of 5 years and bears an initial annual interest rate of 12.0% with 2.5% annual escalators.
Commenting on the transaction, Omega’s CEO, Taylor Pickett said, “We are excited to further strengthen our portfolio with one of our top SNF operators with this acquisition.” Mr. Pickett continued, “We will continue to work with our operators to identify acquisitions and dispositions that strengthen portfolio cash flows. We are evaluating over $200 million of disposition opportunities within our portfolio that could potentially close over the next 9 - 12 months.”
Hurricane Harvey Update. The Company has 32 facilities located in Texas and Louisiana that were within the proximity of Hurricane Harvey’s path. Two facilities located along the Sabine River were evacuated. Mr. Pickett stated, “Omega sends its thoughts and prayers to our operators, their staff, the residents at the facilities, and the surrounding communities that have been impacted by Hurricane Harvey.” Mr. Pickett continued, “Although our facilities appear to have relatively little damage, it is much too early to assess the effect on the surrounding communities and the dedicated staff that cares for our facility residents.”
Omega is a real estate investment trust investing in and providing financing to the long-term care industry. As of June 30, 2017, Omega has a portfolio of investments that includes approximately 1,000 properties located in 42 states and the United Kingdom and operated by 77 different operators.
