Omega Healthcare Investors : 2024 June Investor Presentation

OMEGA HEALTHCARE

INVESTORS

INVESTOR

PRESENTATION

June 2024

Disclaimers; Forward-looking Statements and Non-GAAP Information

• This presentation may include projections and other "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to future events and expectations and involve unknown risks and uncertainties. Omega's actual results or actions may differ materially from those projected in the forward-looking statements. For a summary of the specific risk factors that could cause results to differ materially from those expressed in the forward-looking statements, see Omega's filings with the Securities and Exchange Commission.
• This presentation may contain certain non-GAAP financial information including EBITDA, Adjusted EBITDA, Total Adjusted Debt (a/k/a, Funded Debt), Adjusted FFO, FAD, Total Cash Fixed Charges and certain related ratios. A reconciliation of these non-GAAP disclosures is available in our Quarterly Supplements posted on the Financial Information section of our website at https://www.omegahealthcare.com/investors. Other financial information is also available on our website.
• Information presented on operator revenue mix, census and coverage data is based on information provided by our operators for the indicated periods ended. We have not independently verified this information, and we are providing this data for informational purposes only. Information on operator coverage calculations can be found under "Portfolio Metrics" in our most recent quarterly supplement available at our Investor Relations website at www.omegahealthcare.com.
• Information is provided as of March 31, 2024, unless specifically stated otherwise. We assume no duty to update or supplement the information provided.
• The sourcing of all information provided in this presentation can be found starting on page 59.

INVESTOR PRESENTATION 2

Table of Contents

Page

• Company Profile & Strategy
  11 Why Invest?

15 Skilled Nursing Facilities:

What Makes it an Attractive Asset Class?

24 Strong Portfolio of Skilled Operators

34 Benefits of Investing in Long-term Care

39 Excellent Financials and Execution Track Record

46 Proven Investment Strategy for Future Growth

51 Liquidity Structure & Credit Profile

57 Commitment to ESG Principles

59 Sources & Appendix

INVESTOR PRESENTATION 3

• Company Profile & Strategy

INVESTOR PRESENTATION 4

OMEGA SNAPSHOT

(NYSE:OHI)

1992	$9.9B	$13.1B
Year Listed	Total RE Investments	Enterprise Value

73	866	84,385
Operators	Properties (US & UK)	Number of Beds

BBB-	26%	8.5%
Investment Grade	5-Year TSR	Dividend Yield

For source information see page 59 onwards	INVESTOR PRESENTATION 5

Differentiators that Support Today's Strength and Tomorrow's Opportunity

1

2

3

4

Largest Skilled Nursing Facilities (SNF) focused REIT

Consistent dividend growth

Diversified geographic exposure and tenant base

Proven acquisition and development capabilities

Long-term triple net master leases provide lower risk, steady income

Positioned to benefit from macro tailwinds

Investment grade credit with ample liquidity

Strong corporate governance program

5

6

7

8

INVESTOR PRESENTATION 6

Experienced and Proven Management Team

Taylor Pickett	Dan Booth	Bob Stephenson
Chief Executive Officer	Chief Operating Officer	Chief Financial Officer
39 years in industry	38 years in industry	38 years in industry
23 years at OHI	23 years at OHI	23 years at OHI

Gail Makode	Neal Ballew	Matthew Gourmand
Chief Legal Officer	Chief Accounting Officer	SVP, Corporate Strategy
25 years in industry	14 years in industry	26 years in industry
5 years at OHI	4 years at OHI	7 years at OHI

Vikas Gupta	Megan Krull
SVP, Acquisitions	SVP, Operations
& Development
21 years in industry	24 years in industry
13 years at OHI	14 years at OHI

INVESTOR PRESENTATION 7

Strategy that Supports Long-Term Shareholder Value Creation

Growth Through

Accretive Investments

Maintain Shareholder

Financial Value Creation

Strength

Leverage Sound

Corporate Stewardship

Practices

Continued

Solid Dividend

Growth

INVESTOR PRESENTATION 8

COVID-19 Update

Impact

• COVID-19is particularly impactful to the old and frail, a key cohort of SNFs and Assisted Living Facilities (ALFs)

• Staff at SNFs and ALFs have risked their health and the health of their families to protect residents

• Operators implemented new and evolving protocols to limit the spread of COVID-19

• Occupancy declined ~13% between February 2020 and January 2021

• Expenses increased by as much as $45 PPD from January of 2020 due to staffing and PPE

Response

• Federal and many State governments provided significant and necessary relief to the industry

• However, State relief has varied significantly, and Federal relief has slowed in the last 24 months

• Many states have increased their Medicaid reimbursement rates to reflect increased cost pressures

• CMS increased their Medicare FFS SNF rate by 4.0%, effective October 2023. This is net of the final 2.3% of the 4.6% PDPM claw back that was mandated in 2020.

Information provided as of February 8th, 2024

Outcomes

• Operators still face a difficult, albeit improving, environment

• Expenses per patient day have eased but remain elevated compared to January of 2020, primarily due to higher staffing related costs

• Occupancy has increased ~9% from the low in January of 2021

• We collected ~91% of our 1Q24 contractual rent and mortgage payments from our operators.

INVESTOR PRESENTATION 9

Operator Updates

On June 3, 2024, Omega issued a press release in response to LaVie Care Centers' ("LaVie") announcement that it had filed for Chapter 11 bankruptcy protection in the Northern District of Georgia.

Omega believes this filing is a necessary and important step in creating an entity that is operationally solvent and sustainable, with enhanced liquidity and a strengthened balance sheet.

During this filing, our focus, like LaVie's, is on maintaining quality of care for the residents of these facilities, on supporting the employees that devote their careers to delivering this care, and on the key vendors that help provide operational services. As such, we have elected to commit $10 million to fund 50% of the expected debtor-in-possession financing, in order to support sufficient liquidity to effectively operate the facilities during bankruptcy.

We continue to believe that there is meaningful value in our portfolio of LaVie assets. Omega has been working with LaVie for over a year to reduce its exposure to underperforming assets, and we believe this has meaningfully enhanced the operating performance of our LaVie portfolio. We believe the current cash flow generated by our remaining LaVie portfolio is sustainable and will support long-term annualized rent of $36 million, while also retaining sufficient cash within the business to provide for strong clinical care.

As part of our debtor-in-possession loan commitment, during the period of bankruptcy protection, LaVie is required to pay Omega monthly rent of $3 million related to the 30 properties LaVie continues to lease from Omega, all subject to court approval.

The proposed DIP budget, which provides for LaVie rent, anticipates confirmation of the plan or sale of assets by the end of this year. However, this projection, along with all elements of the bankruptcy filing process, is subject to the approval of the bankruptcy court and other complexities inherent in Chapter 11 proceedings.

Information provided as of June 3rd, 2024

INVESTOR PRESENTATION 10