Omega Announces Third Quarter 2009 Financial Results; Adjusted FFO of $0.37 Per Share for the Third Quarter

http://www.businesswire.com/news/home/20091028006676/en

HUNT VALLEY, Md.--(Business Wire)--
Omega Healthcare Investors, Inc. (NYSE:OHI) today announced its results of
operations for the quarter ended September 30, 2009. The Company also reported
Funds From Operations ("FFO") available to common stockholders for the three
months ended September 30, 2009 of $30.0 million or $0.36 per common share. The
$30.0 million of FFO available to common stockholders for the third quarter of
2009 includes a net loss of $0.1 million associated with owned and operated
assets, $0.5 million of non-cash restricted stock expense and a $0.1 million
non-cash provision for impairment on a real estate asset. FFO is presented in
accordance with the guidelines for the calculation and reporting of FFO issued
by the National Association of Real Estate Investment Trusts ("NAREIT").
Adjusted FFO was $0.37 per common share for the three months ended September 30,
2009. FFO and Adjusted FFO are non-GAAP financial measures. Adjusted FFO
excludes the impact of certain non-cash items and certain items of revenue or
expenses, including: results of operations of owned and operated facilities
during the period, a non-cash provision for impairment and restricted stock
expense. For more information regarding FFO and Adjusted FFO, see the "Funds
From Operations" section below.

GAAP NET INCOME

For the three-month period ended September 30, 2009, the Company reported net
income of $21.1 million, net income available to common stockholders of $18.9
million, or $0.22 per diluted common share on operating revenues of $49.8
million. This compares to net income of $28.1 million, net income available to
common stockholders of $25.6 million, or $0.33 per diluted common share on
operating revenues of $60.0 million for the same period in 2008.

For the nine-month period ended September 30, 2009, the Company reported net
income of $65.9 million, net income available to common stockholders of $59.1
million, or $0.71 per diluted common share on operating revenues of $148.1
million. This compares to net income of $62.4 million, net income available to
common stockholders of $55.0 million, or $0.76 per diluted common share on
operating revenues of $144.6 million for the same period in 2008.

The year-to-date increases in net income and net income available to common
stockholders were primarily due to the impact of: i) $4.0 million of net cash
flow associated with legal settlements; ii) revenue associated with $60 million
of new investments completed since September 2008; iii) a $2.1 million reduction
in interest expense; and iv) a $4.3 million expense for uncollectible accounts
receivable recorded in 2008 and a net change of $1.5 million provision for
impairment charge. This impact was partially offset by: i) increased
depreciation expense associated with the new investments and ii) a $0.5 million
charge relating to the write-off of deferred financing credit facility costs
recorded in the second quarter of 2009.

THIRD QUARTER 2009 RESULTS

Operating Revenues and Expenses - Operating revenues for the three months ended
September 30, 2009, excluding nursing home revenues of owned and operated assets
and therefore on a non-GAAP basis, were $45.0 million. Operating expenses for
the three months ended September 30, 2009, on a non-GAAP basis excluding nursing
home expenses for owned and operated assets, totaled $13.9 million, comprised of
$11.1 million of depreciation and amortization expense, $2.2 million of general
and administrative expenses, $0.5 million of restricted stock expense and a real
estate impairment of $0.1 million. A reconciliation of these amounts to revenues
and expenses reported in accordance with GAAP is provided at the end of this
release.

Other Income and Expense - Other income and expense for the three months ended
September 30, 2009 was a net expense of $9.9 million and was primarily comprised
of $9.2 million of interest expense and $0.7 million of amortized deferred
financing costs.

Funds From Operations - For the three months ended September 30, 2009,
reportable FFO available to common stockholders was $30.0 million, or $0.36 per
common share on 83.9 million weighted-average common shares outstanding,
compared to $23.9 million, or $0.31 per common share on 76.7 million
weighted-average common shares outstanding, for the same period in 2008.

The $30.0 million of FFO for the quarter includes the impact of $0.5 million of
non-cash restricted stock expense, a $0.1 million net loss associated with owned
and operated assets and a real estate impairment of $0.1 million. The $23.9
million of FFO for the three months ended September 30, 2008, includes the
impact of: (i) a $1.5 million net loss associated with owned and operated
assets; (ii) $0.5 million of non-cash restricted stock expense; (iii) a $0.2
million non-cash provision for real estate impairment; and (iv) $0.1 million
reduction in the Company`s provision for income taxes.

When excluding the above mentioned items in 2009 and 2008, Adjusted FFO was
$30.7 million, or $0.37 per common share, for the three months ended September
30, 2009, compared to $26.0 million, or $0.34 per common share, for the same
period in 2008. The Company had 7.2 million additional weighted-average shares
for the three months ended September 30, 2009, compared to the same period in
2008. The increase in weighted-average common shares was primarily a result of:
i) a 6.0 million share common stock offering on September 19, 2008; ii)
approximately 1.3 million common shares issued under the Company`s Dividend
Reinvestment and Common Stock Purchase Plan; and iii) approximately 1.4 million
common shares issued under the Company`s Equity Shelf Program. For further
information, see the attached "Funds From Operations" schedule and notes.

FINANCING ACTIVITIES

New $200 Million Revolving Credit Facility - On June 30, 2009, the Company
entered into a new $200 million revolving senior secured credit facility (the
"New Credit Facility"). Banc of America Securities LLC and Deutsche Bank Trust
Company Americas were joint lead arrangers for the New Credit Facility. Bank of
America, N.A. was the administrative agent and UBS Securities LLC and General
Electric Capital Corporation participated in the New Credit Facility in various
agent capacities. The New Credit Facility will be used for acquisitions and
general corporate purposes.

The New Credit Facility replaces the Company`s previous senior secured credit
facility (the "Prior Credit Facility"). The New Credit Facility matures in three
years, on June 30, 2012, and includes an "accordion feature" that permits the
Company to expand its borrowing capacity to $300 million in certain
circumstances during the first two years thereof, and is currently priced at
LIBOR plus 400 basis points with a 200 basis point LIBOR floor.

For the nine-month period ended September 30, 2009, the Company recorded a
non-recurring, non-cash charge of approximately $0.5 million relating to the
write-off of deferred financing costs associated with the replacement of the
Prior Credit Facility. At September 30, 2009, the Company had $9.0 million of
borrowings outstanding under the New Credit Facility.

Equity Shelf Program - On June 12, 2009, the Company entered into separate
Equity Distribution Agreements with each of UBS Securities LLC, Deutsche Bank
Securities Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, each as
sales agents and/or principal (the "Managers"). Under the terms of these
agreements, the Company may sell shares of its common stock, from time to time,
through or to the Managers having an aggregate gross sales price of up to
$100,000,000 (the "Equity Shelf Program"). Sales of the shares, if any, will be
made by means of ordinary brokers` transactions on the New York Stock Exchange
at market prices, or as otherwise agreed with the applicable Manager. The
Company will pay each Manager, compensation for sales of the shares equal to 2%
of the gross sales price per share of shares sold through such Manager, as sales
agent, under the applicable agreement.

During the third quarter of 2009, the Company issued 1.4 million shares of its
common stock under the Equity Shelf Program at an average price of $17.17 per
share, resulting in net proceeds of approximately $23.8 million.

DIVIDENDS

Common Dividends - On October 20, 2009, the Company`s Board of Directors
announced a common stock dividend of $0.30 per share to be paid November 16,
2009 to common stockholders of record on November 2, 2009. At the date of this
release, the Company had approximately 85.1 million outstanding common shares.

Series D Preferred Dividends - On October 20, 2009, the Company`s Board of
Directors declared the regular quarterly dividends for the Company`s 8.375%
Series D Cumulative Redeemable Preferred Stock ("Series D Preferred Stock") to
stockholders of record on November 2, 2009. The stockholders of record of the
Series D Preferred Stock on November 2, 2009 will be paid dividends in the
amount of $0.52344 per preferred share on November 16, 2009. The liquidation
preference for the Company`s Series D Preferred Stock is $25.00 per share.
Regular quarterly preferred dividends for the Series D Preferred Stock represent
dividends for the period August 1, 2009 through October 30, 2009.

2009 ADJUSTED FFO GUIDANCE AFFIRMATION

The Company affirmed its 2009 Adjusted FFO available to common stockholders
guidance of between $1.47 and $1.50 per diluted share, as previously announced
on February 6, 2009.

The Company's Adjusted FFO guidance for 2009 excludes the impacts of future
acquisitions, gains and losses from the sale of assets, additional divestitures,
certain revenue and expense items, capital transactions and restricted stock
amortization expense. A reconciliation of the Adjusted FFO guidance to the
Company's projected GAAP earnings is provided on a schedule attached to this
press release. The Company may, from time to time, update its publicly announced
Adjusted FFO guidance, but it is not obligated to do so.

The Company's Adjusted FFO guidance is based on a number of assumptions, which
are subject to change and many of which are outside the control of the Company.
If actual results vary from these assumptions, the Company's expectations may
change. Without limiting the generality of the foregoing, the completion of
acquisitions, divestitures, capital and financing transactions, variations in
restricted stock amortization expense, and the factors identified below may
cause actual results to vary materially from our current expectations. There can
be no assurance that the Company will achieve its projected results.

CONFERENCE CALL

The Company will be conducting a conference call on Thursday, October 29, 2009,
at 10 a.m. EDT to review the Company`s 2009 third quarter results and current
developments. To listen to the conference call via webcast, log on to
www.omegahealthcare.com and click the "earnings call" icon on the Company`s home
page. Webcast replays of the call will be available on the Company`s website for
two weeks following the call.

The Company is a real estate investment trust investing in and providing
financing to the long-term care industry. At September 30, 2009, the Company
owned or held mortgages on 254 skilled nursing facilities and assisted living
facilities with approximately 29,126 licensed beds (27,708 available beds)
located in 28 states and operated by 25 third-party healthcare operating
companies.

This announcement includes forward-looking statements, including without
limitation the information under the heading "2009 Adjusted FFO Guidance
Affirmation."Actual results may differ materially from those reflected in such
forward-looking statements as a result of a variety of factors, including, among
other things: (i) uncertainties relating to the business operations of the
operators of the Company`s properties, including those relating to reimbursement
by third-party payors, regulatory matters and occupancy levels; (ii) regulatory
and other changes in the healthcare sector, including without limitation,
changes in Medicare reimbursement; (iii) changes in the financial position of
the Company`s operators; (iv) the ability of operators in bankruptcy to reject
unexpired lease obligations, modify the terms of the Company`s mortgages, and
impede the ability of the Company to collect unpaid rent or interest during the
pendency of a bankruptcy proceeding and retain security deposits for the
debtor's obligations; (v) the availability and cost of capital; (vi) the
Company`s ability to maintain its credit ratings; (vii) competition in the
financing of healthcare facilities; (viii) the Company`s ability to maintain its
status as a real estate investment trust; (ix) the Company`s ability to manage,
re-leaseor sell any owned and operated facilities; (x) the Company`s ability to
sell closed or foreclosed assets on a timely basis and on terms that allow the
Company to realize the carrying value of these assets; (xi) the effect of
economic and market conditions generally, and particularly in the healthcare
finance industry; (xii) the potential impact of a general economic slowdown on
governmental budgets and healthcare reimbursement expenditures; and (xiii) other
factors identified in the Company`s filings with the Securities and Exchange
Commission. Statements regarding future events and developments and the
Company`s future performance, as well as management's expectations, beliefs,
plans, estimates or projections relating to the future, are forward-looking
statements.The Company undertakes no obligation to update any forward-looking
statements contained in this material.

OMEGA HEALTHCARE INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)

September 30, December 31,
2009 2008
(Unaudited)
ASSETS
Real estate properties
Land and buildings $ 1,385,625 $ 1,372,012
Less accumulated depreciation (284,782 ) (251,854 )
Real estate properties - net 1,100,843 1,120,158
Mortgage notes receivable - net 100,531 100,821
1,201,374 1,220,979
Other investments - net 29,440 29,864
1,230,814 1,250,843
Assets held for sale - net 887 150
Total investments 1,231,701 1,250,993

Cash and cash equivalents 646 209
Restricted cash 6,678 6,294
Accounts receivable - net 81,274 75,037
Other assets 12,145 18,613
Operating assets for owned and operated properties 3,949 13,321
Total assets $ 1,336,393 $ 1,364,467

LIABILITIES AND STOCKHOLDERS` EQUITY
Revolving line of credit $ 9,000 $ 63,500
Unsecured borrowings - net 484,685 484,697
Accrued expenses and other liabilities 27,106 25,420
Operating liabilities for owned and operated properties 1,449 2,862
Total liabilities 522,240 576,479

Stockholders` equity:
Preferred stock issued and outstanding - 4,340 shares Series D with an aggregate liquidation preference of $108,488 108,488 108,488
Common stock $.10 par value authorized - 200,000 shares: issued and outstanding - 84,904 shares as of September 30, 2009 and 82,382 as of December 31, 2008 8,490 8,238
Common stock - additional paid-in-capital 1,095,578 1,054,157
Cumulative net earnings 506,149 440,277
Cumulative dividends paid (904,552 ) (823,172 )
Total stockholders` equity 814,153 787,988
Total liabilities and stockholders` equity $ 1,336,393 $ 1,364,467

OMEGA HEALTHCARE INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(in thousands, except per share amounts)

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Revenues
Rental income $ 41,226 $ 37,265 $ 123,626 $ 115,052
Mortgage interest income 2,915 3,007 8,686 6,536
Other investment income - net 694 313 1,844 1,531
Miscellaneous 160 73 364 2,140
Nursing home revenues of owned and operated assets 4,758 19,341 13,545 19,341
Total operating revenues 49,753 59,999 148,065 144,600

Expenses
Depreciation and amortization 11,093 10,076 33,014 29,185
General and administrative 2,195 2,399 7,481 7,413
Restricted stock expense 480 526 1,439 1,577
Impairment loss on real estate properties 89 170 159 1,684
Provision for uncollectible accounts receivable - - - 4,268
Nursing home expenses of owned and operated assets 4,899 20,833 15,750 20,833
Total operating expenses 18,756 34,004 57,843 64,960

Income before other income and expense 30,997 25,995 90,222 79,640
Other income (expense):
Interest and other investment income 2 74 19 197
Interest (9,171 ) (9,375 ) (26,656 ) (28,805 )
Interest - amortization of deferred financing costs (690 ) (500 ) (1,690 ) (1,500 )
Interest - refinancing costs - - (526 ) -
Litigation settlements - - 4,527 526
Total other expense (9,859 ) (9,801 ) (24,326 ) (29,582 )

Income before gain (loss) on assets sold 21,138 16,194 65,896 50,058
Gain (loss) on assets sold - net - 11,806 (24 ) 11,852
Income from continuing operations before income taxes 21,138 28,000 65,872 61,910
Income taxes - 72 - 72
Income from continuing operations 21,138 28,072 65,872 61,982
Discontinued operations - - - 446
Net income 21,138 28,072 65,872 62,428
Preferred stock dividends (2,271 ) (2,480 ) (6,814 ) (7,442 )
Net income available to common stockholders $ 18,867 $ 25,592 $ 59,058 $ 54,986

Income per common share available to common stockholders:
Basic:
Income from continuing operations $ 0.23 $ 0.33 $ 0.71 $ 0.75
Net income $ 0.23 $ 0.33 $ 0.71 $ 0.76
Diluted:
Income from continuing operations $ 0.22 $ 0.33 $ 0.71 $ 0.75
Net income $ 0.22 $ 0.33 $ 0.71 $ 0.76

Dividends declared and paid per common share $ 0.30 $ 0.30 $ 0.90 $ 0.89

Weighted-average shares outstanding, basic 83,740 76,590 82,903 72,737
Weighted-average shares outstanding, diluted 83,858 76,702 83,004 72,829

Components of other comprehensive income:
Net income $ 21,138 $ 28,072 $ 65,872 $ 62,428
Total comprehensive income $ 21,138 $ 28,072 $ 65,872 $ 62,428

OMEGA HEALTHCARE INVESTORS, INC.
FUNDS FROM OPERATIONS
Unaudited
(In thousands, except per share amounts)

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008

Net income available to common stockholders $ 18,867 $ 25,592 $ 59,058 $ 54,986
(Deduct gain) add back loss from real estate dispositions(1) - (11,806 ) 24 (12,283 )
Sub-total 18,867 13,786 59,082 42,703
Elimination of non-cash items included in net income:
Depreciation and amortization(1) 11,093 10,076 33,014 29,185
Funds from operations available to common stockholders $ 29,960 $ 23,862 $ 92,096 $ 71,888

Weighted-average common shares outstanding, basic 83,740 76,590 82,903 72,737
Effect of restricted stock awards 107 100 89 80
Assumed exercise of stock options 11 12 11 12
Deferred stock - - 1 -
Weighted-average common shares outstanding, diluted 83,858 76,702 83,004 72,829

Fund from operations per share available to common stockholders $ 0.36 $ 0.31 $ 1.11 $ 0.99

Adjusted funds from operations:
Funds from operations available to common stockholders $ 29,960 $ 23,862 $ 92,096 $ 71,888
Deduct litigation settlements - - (4,527 ) (526 )
Deduct one-time cash revenue - - - (702 )
Deduct FIN 46R adjustment - - - (90 )
Deduct collection of prior operator`s past due rental obligation - - - (650 )
Deduct provision for income taxes - (72 ) - (72 )
Deduct nursing home revenues (4,758 ) (19,341 ) (13,545 ) (19,341 )
Add back non-cash provision for uncollectible accounts receivable - - - 4,268
Add back non-cash provision for impairments on real estate properties(1) 89 170 159 1,684
Add back nursing home expenses 4,899 20,833 15,750 20,833
Add back one-time interest refinancing expense - - 526 -
Add back non-cash restricted stock expense 480 526 1,439 1,577
Adjusted funds from operations available to common stockholders $ 30,670 $ 25,978 $ 91,898 $ 78,869

(1) Includes amounts in discontinued operations

This press release includes Funds From Operations, or FFO, which is a non-GAAP
financial measure. For purposes of the Securities and Exchange Commission`s
Regulation G, a non-GAAP financial measure is a numerical measure of a company`s
historical or future financial performance, financial position or cash flows
that excludes amounts, or is subject to adjustments that have the effect of
excluding amounts, that are included in the most directly comparable financial
measure calculated and presented in accordance with GAAP in the statement of
operations, balance sheet or statement of cash flows (or equivalent statements)
of the company, or includes amounts, or is subject to adjustments that have the
effect of including amounts, that are excluded from the most directly comparable
financial measure so calculated and presented. As used in this press release,
GAAP refers to generally accepted accounting principles in the United States of
America. Pursuant to the requirements of Regulation G, the Company has provided
reconciliations of the non-GAAP financial measures to the most directly
comparable GAAP financial measures.

The Company calculates and reports FFO in accordance with the definition and
interpretive guidelines issued by the National Association of Real Estate
Investment Trusts ("NAREIT"), and consequently, FFO is defined as net income
available to common stockholders, adjusted for the effects of asset dispositions
and certain non-cash items, primarily depreciation and amortization. The Company
believes that FFO is an important supplemental measure of its operating
performance. Because the historical cost accounting convention used for real
estate assets requires depreciation (except on land), such accounting
presentation implies that the value of real estate assets diminishes predictably
over time, while real estate values instead have historically risen or fallen
with market conditions. The term FFO was designed by the real estate industry to
address this issue. FFO herein is not necessarily comparable to FFO of other
real estate investment trusts, or REITs, that do not use the same definition or
implementation guidelines or interpret the standards differently from the
Company.

In February 2004, NAREIT informed its member companies that it was adopting the
position of the SEC with respect to asset impairment charges and would no longer
recommend that impairment write-downs be excluded from FFO. In the tables
included in this press release, the Company has applied this interpretation and
has not excluded asset impairment charges in calculating its FFO. As a result,
its FFO may not be comparable to similar measures reported in previous
disclosures. According to NAREIT, there is inconsistency among NAREIT member
companies as to the adoption of this interpretation of FFO. Therefore, a
comparison of the Company`s FFO results to another company's FFO results may not
be meaningful.

The Company uses FFO as one of several criteria to measure the operating
performance of its business. The Company further believes that by excluding the
effect of depreciation, amortization and gains or losses from sales of real
estate, all of which are based on historical costs and which may be of limited
relevance in evaluating current performance, FFO can facilitate comparisons of
operating performance between periods and between other REITs. The Company
offers this measure to assist the users of its financial statements in analyzing
its performance; however, this is not a measure of financial performance under
GAAP and should not be considered a measure of liquidity, an alternative to net
income or an indicator of any other performance measure determined in accordance
with GAAP. Investors and potential investors in the Company`s securities should
not rely on this measure as a substitute for any GAAP measure, including net
income.

Adjusted FFO is calculated as FFO available to common stockholders less non-cash
stock-based compensation and one-time revenue and expense items. The Company
believes that Adjusted FFO provides an enhanced measure of the operating
performance of the Company`s core portfolio as a REIT. The Company's computation
of Adjusted FFO is not comparable to the NAREIT definition of FFO or to similar
measures reported by other REITs, but the Company believes it is an appropriate
measure for this Company.

The following table presents a reconciliation of our guidance regarding 2009 FFO
and Adjusted FFO to net income available to common stockholders:

2009 Projected
Per diluted share:
Net income available to common stockholders $ 0.95 − $ 0.98
Adjustments:
Depreciation and amortization 0.52 − 0.52
Funds from operations available to common stockholders $ 1.47 − $ 1.50

Adjustments:
Legal settlement income (0.05 ) − (0.05 )
Nursing home revenue and expense - net 0.02 − 0.02
Interest expense - refinancing 0.01 − 0.01
Impairment on real estate assets 0.00 − 0.00
Restricted stock expense 0.02 − 0.02
Adjusted funds from operations available to common stockholders $ 1.47 − $ 1.50

The table below reconciles reported revenues and expenses to revenues and
expenses excluding nursing home revenues and expenses of owned and operated
assets:

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
(in thousands)

Total operating revenues $ 49,753 $ 59,999 $ 148,065 $ 144,600
Nursing home revenues of owned and operated assets 4,758 19,341 13,545 19,341
Revenues excluding nursing home revenues of owned and operated assets $ 44,995 $ 40,658 $ 134,520 $ 125,259

Total operating expenses $ 18,756 $ 34,004 $ 57,843 $ 64,960
Nursing home expenses of owned and operated assets 4,899 20,833 15,750 20,833
Expenses excluding nursing home expenses of owned and operated assets $ 13,857 $ 13,171 $ 42,093 $ 44,127

This press release includes references to revenues and expenses excluding
nursing home and operated assets, which are non-GAAP financial measures. The
Company believes that presentation of the Company's revenues and expenses,
excluding nursing home owned and operated assets, provides a useful measure of
the operating performance of the Company's core portfolio as a real estate
investment trust in view of the disposition of all but two of the Company's
owned and operated assets and short term holding of owned and operated assets.
The table below reconciles reported revenues and expenses to revenues and
expenses excluding nursing home revenues and expenses of owned and operated
assets.

The following tables present selected portfolio information, including operator
and geographic concentrations, and revenue maturities for the period ending
September 30, 2009:

Portfolio Composition ($000's)

# of Licensed
Balance Sheet Data # of Properties Beds Investment % Investment
Real Property(1)(3) 239 27,141 $ 1,404,825 93 %
Loans Receivable(2) 15 1,985 100,531 7 %
Total Investments 254 29,126 $ 1,505,356 100 %

# of Licensed Investment per
Investment Data # of Properties Beds Investment % Investment Bed
Skilled Nursing Facilities (1) (2) (3) 243 28,499 $ 1,445,665 96 % $ 51
Assisted Living Facilities 7 393 29,854 2 % 76
Rehab Hospitals 4 234 29,837 2 % 128
254 29,126 $ 1,505,356 100 % $ 52

(1) Includes $19.2 million for lease inducement.
(2) Includes $1.0 million of unamortized principal.
(3) Excludes two facilities classified as held for sale.

Revenue Composition ($000's)

Revenue by Investment Type (1) Three Months Ended Nine Months Ended
September 30, 2009 September 30, 2009
Rental Property $ 41,226 92 % $ 123,626 92 %
Mortgage Notes 2,915 7 % 8,686 7 %
Other Investment Income 694 1 % 1,844 1 %
$ 44,835 100 % $ 134,156 100 %

Revenue by Facility Type (1) Three Months Ended Nine Months Ended
September 30, 2009 September 30, 2009
Skilled Nursing Facilities $ 43,239 96 % $ 129,600 97 %
Assisted Living Facilities 597 1 % 1,796 1 %
Specialty Hospitals 305 1 % 916 1 %
Other 694 2 % 1,844 1 %
$ 44,835 100 % $ 134,156 100 %

(1) Excludes revenue from owned and operated assets.

Operator Concentration ($000's)

Concentration by Investment # of Properties Investment % Investment
CommuniCare Health Services 36 $ 317,822 21 %
Sun Healthcare Group, Inc. 40 215,160 14 %
Advocat Inc. 40 151,775 10 %
Guardian LTC Management (1) 23 145,171 10 %
Signature Holdings, LLC 18 142,460 10 %
Formation Capital 14 120,699 8 %
Nexion Health, Inc. 19 80,113 5 %
Essex Healthcare Corp. 13 79,564 5 %
Alpha Healthcare Properties, LLC 8 55,834 4 %
Mark Ide Limited Liability Company 10 36,264 2 %
Remaining Operators (2) (3) 33 160,494 11 %
254 $ 1,505,356 100 %

(1) Investment amount includes a $19.2 million lease inducement.
(2) Includes $1.0 million of unamortized principal.
(3) Excludes two facilities classified as held for sale.

Concentration by State # of Properties Investment % Investment
Ohio 47 $ 333,972 22 %
Florida (2) 25 173,107 11 %
Pennsylvania 23 150,225 10 %
Texas 20 85,644 6 %
West Virginia (1) 10 74,867 5 %
Maryland 7 69,928 5 %
Louisiana 14 55,343 4 %
Colorado 8 54,322 3 %
Alabama 10 45,195 3 %
Arkansas 11 44,791 3 %
Rhode Island 4 39,741 3 %
Massachusetts 6 39,576 3 %
Kentucky 10 37,253 2 %
California 11 34,756 2 %
Connecticut 4 31,573 2 %
Remaining States (3) 44 235,063 16 %
254 $ 1,505,356 100 %

(1) Investment amount includes a $19.2 million lease inducement.
(2) Includes $1.0 million of unamortized principal.
(3) Excludes two facilities classified as held for sale.

Revenue Maturities ($000's)

Current Lease and
Current Lease Interest Interest
Operating Lease Expirations & Loan Maturities Year Revenue (1) Revenue (1) Revenue %
2009 - - - 0 %
2010 496 1,431 1,927 1 %
2011 4,598 68 4,666 3 %
2012 3,175 - 3,175 2 %
2013 24,717 - 24,717 14 %
Thereafter 126,003 9,887 135,890 80 %
$ 158,989 $ 11,386 $ 170,375 100 %

(1) Based on 2009 contractual rents and interest (assumes no annual escalators).

Selected Facility Data
TTM ending 6/30/09 Coverage Data
% Revenue Mix Before After
Census (1) Private Medicare Mgmt. Fees Mgmt. Fees
Total Portfolio 85.5 % 9.2 % 25.4 % 2.1 x 1.6 x

(1) Based on available beds.

The following table presents a debt maturity schedule for the period ending
September 30, 2009:

Debt Maturities ($000's) Secured Debt
Lines of
Year Credit (1) Senior Notes Total
2009 $ - $ - $ -
2010 - - -
2011 - - -
2012 200,000 - 200,000
2013 - - -
Thereafter - 485,000 485,000
$ 200,000 $ 485,000 $ 685,000

(1) Reflected at 100% borrowing capacity.

The following table presents investment activity for the three- and nine- month
periods ending September 30, 2009:

Investment Activity ($000's)
Three Months Ended Nine Months Ended
September 30, 2009 September 30, 2009
$ Amount % $ Amount %
Funding by Investment Type:
Real Property $ - 0 % $ - 0 %
Mortgages - 0 % - 0 %
Other 5,966 100 % 12,641 100 %
Total $ 5,966 100 % $ 12,641 100 %

Omega Healthcare Investors, Inc.
Bob Stephenson, CFO
410-427-1700

Copyright Business Wire 2009