Fri, May 2, 3:13 PM (21 days ago)
**OMEGA HEALTHCARE INVESTORS, INC. (OHI) Q1 2025 FINANCIAL HEALTH AND PERFORMANCE** **Financial Performance (Q1 2025 vs. Q1 2024):** - **Revenue:** Total revenue increased by 13.4% to $276.8 million, driven by a 12.2% increase in rental income and an 18.7% increase in interest income. - **Expenses:** Total expenses rose by 0.8% to $175.3 million. Notable changes include a 9.3% increase in general and administrative expenses, a 24.7% decrease in impairment on real estate properties, and a 9.3% decrease in interest expense. - **Net Income:** Net income surged by 61.9% to $112.1 million, with earnings per share increasing from $0.27 to $0.34. - **Cash Flow:** Net cash provided by operating activities increased by 20.1% to $181.9 million. However, net cash used in financing activities increased by 85.9% to $347.7 million, leading to a decrease in cash, cash equivalents, and restricted cash. **Profit Margins:** - **Gross Margin:** Increased from 76.4% to 82.0%. - **Operating Margin:** Increased from 40.6% to 51.0%. - **Net Margin:** Increased from 33.5% to 40.5%. **Cash Flow:** - **Operating Cash Flow:** Increased by 20.1% to $181.9 million. - **Investing Cash Flow:** Improved from an outflow of $47.5 million to an inflow of $19.3 million. - **Financing Cash Flow:** Increased outflow by 85.9% to $347.7 million. **Earnings Changes:** - **EPS:** Increased from $0.27 to $0.34. - **Nareit FFO:** Increased by 19.9% to $183.8 million. **Quarterly Performance Discussion:** - **Investments:** Acquired six facilities for $58.3 million, invested $35.3 million in construction and capital improvements, and funded $20.0 million in new real estate loans. - **Dispositions:** Sold 27 facilities for $120.9 million, recognizing a net gain of $10.1 million. - **Financing:** Repaid $400 million of senior notes, extended the maturity date of the revolving credit facility, and issued 7.1 million shares of common stock under the ATM Program and DRCSPP. **Trends and Uncertainties:** - **Positive Trends:** Increased rental and interest income, improved profit margins, and stronger operating cash flow. - **Uncertainties:** Increased financing cash outflow, potential impacts of regulatory changes, and the financial condition of operators. **Future Operations Impact:** - **Positive:** Continued investment in growth, strategic dispositions, and strong financial performance. - **Negative:** Potential increases in financing costs, regulatory uncertainties, and operator financial distress. **Ticker:** OHI