Omega Healthcare Investors Inc Q1 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Omotayo Tejamude Okusanya - CrTdit Suisse AG, Research Division - Analyst : I'm Omotayo. Just wanted to go back to the Guardian portfolio restructuring. Regarding the 8 re-leased facilities, just curious as to what the expected rents are? And the timing of when those will start?

Question: Omotayo Tejamude Okusanya - CrTdit Suisse AG, Research Division - Analyst : Got it. And will that start like maybe 2Q and into 3Q? Is that the expectation?

Question: Omotayo Tejamude Okusanya - CrTdit Suisse AG, Research Division - Analyst : Got it. Okay. Just shifting gears. The 26 facilities classified as held for sale. I know some of that's Guardian. Could you kind of talk about the remainder

Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : I appreciate the detailed prepared remarks. I'm just thinking back to the context of deploying capital, whether that's in buybacks or deploying in real assets. I mean what are the opportunities that look like in the U.S. and the U.K? I mean are you seeing the action of the seller's market cool off at all? Do you expect you see more opportunities for OHI through the end of the year?

Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Okay. And then quickly on Guardian and apologies if I missed this before, but in these re-leasing activities, are you looking to place new operators in these facilities? Or are they already on the tenant roster for the most part?

Question: Nicholas Philip Yulico - Scotiabank Global Banking and Markets, Research Division - Analyst : Just going back to all the details you provided, Bob, is helpful and the operators. I guess my question is, if you -- can you remind us what is the trigger to put these operators on a cash basis versus keep them looking -- keep booking GAAP revenue? Because I think for those 2 other operators, right, the 3.4% and the 2.4% those exposures, right? They didn't fully pay in the quarter, your booking revenue, you're assuming some revenue, GAAP revenue in the second quarter. So I'm just trying to understand what's the -- what sort of delta there about what would put those on cash basis versus keeping them in FFO?

Question: Nicholas Philip Yulico - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. And then I guess a follow-up there would be, at this point, why not provide some quarterly guidance. I mean you got -- you booked revenue for these operators. You have some visibility as to what you're thinking you're going to get in the second quarter, why not provide quarterly guidance. And even if you could also maybe just give us a feel for as we think about like this quarter, from a normalized FFO number, like whether that first quarter run rate is a good one to start basing off for the second quarter? I mean, any perspective there would be helpful because I think from a modeling standpoint, it's pretty tricky about whether these companies are on cash, whether they're on GAAP revenue and it also looks like some of the election of that treatment for the operators in the first quarter created will look like a beat. And so that's why I think it would be helpful to understand -- what going into the second quarter, okay, well, what are we dealing with now?

Question: Nicholas Philip Yulico - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. All right. Yes. I guess from the cash collection, I get it, but from a GAAP revenue standpoint, I mean, just understanding you booked it in the first quarter. Okay. well, we're going to definitely have this in the second quarter, which sounds like that's -- I mean, -- that is the case, right, that you are assuming that for the 3.4% operator, the 2.4% operator, right? The Guardian you're assuming as well, just to be clear, full revenue, GAAP revenue in the second quarter. Is that correct for those 3?