Investor Presentation March 2017 Forward-looking Statements and - - PowerPoint PPT Presentation

Investor Presentation

March 2017

Investor Presentation, March 2017

Forward-looking Statements and Non-GAAP Information

2

• 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 most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission.

• This presentation may contain certain non-GAAP financial information including EBITDA, Adjusted EBITDA, Total Adjusted Debt

(aka, Funded Debt), Adjusted FFO, FAD, Total Cash Fixed Charges and certain related ratios. A reconciliation of these non-GAAP disclosures is available in the Exhibit to this presentation or on our website under “Non-GAAP Financial Measures” at www.omegahealthcare.com. Other financial information is also available on our website.

• Information is provided as of December 31, 2016, unless specifically stated otherwise.

We assume no duty to update or supplement the information provided.

Omega Overview

Investor Presentation, March 2017

Omega Overview: Key Credit Highlights

4

Financial Strength Portfolio Strength

 Strong portfolio TTM rent coverage of 1.7x (EBITDARM) and 1.3x (EBITDAR) at 9/30/2016  Geographic and operator diversification with 79 operators across 42 states and the United

Kingdom

 No upcoming material lease expirations and no material lease renewal risk  Favorable near term supply and demand outlook  Conservative leverage level with Funded Debt / Adj. EBITDA of 4.72x (Q4 2016), in-line with

• ur leverage target

 Consistent and stable free cash flow with strong fixed charge coverage of 4.7x (Q4 2016)  Low Secured debt / Adj. EBITDA of 0.1x and strong commitment to unsecured borrowing

structure with ~$10.1 billion of unencumbered assets

 Minimal short-term debt maturities  Positive ratings trajectory with history of upgrades and commitment to investment grade

profile

 Significant liquidity with $1.2 billion of cash and credit facility availability at 2/9/2017

Experienced Management Team

 Senior management team with average tenure of 16+ years  Proven ability to execute on strategies  Proven ability to handle troubled assets

Investor Presentation, March 2017

Omega Overview: Facility and Investment Overview at December 31, 2016

5



Omega is the largest SNF-focused REIT



As of December 31, 2016, Omega portfolio consisted of 981 (1) operating facilities



Completed over $1.3 billion of investments in 2016 Facility Investment Statistics Revenue Statistics

Skilled Nursing/Transitional Care, 86% Senior Housing, 14% Rental Property 83% Direct Financing Leases 7% Mortgages 7% Other 3%

1) Excludes non-operating facilities either held-for-sale, closed and/or not currently providing patient services

Investor Presentation, March 2017

$0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 $26.00 $28.00 $30.00 $32.00 $34.00 $36.00 $38.00 $40.00 $42.00 $44.00 $46.00

Financial Overview: Shareholder Returns

6 1/1/2004 to 12/31/2016 OHI Share Price: 235.0% RMZ Index: 96.1% Quarterly Dividends as of 2/15/2017 1 Year Total Growth: 8.6% 3 Year Total Growth: 26.8% 5 Year Total Growth: 51.6% 1/1/2004 to 12/31/2016 Real Estate Investments: 20.5% Operating Revenue: 20.6% Adjusted FFO per Share: 12.1% OHI Share Price: 9.7% Dividend Yield at $0.62/Share Per Quarter 7.7%

(based on closing price on 2/22/2017 of $32.06)

Omega Share Price Growth, 12/2002-12/2016 Compounded Annual Growth Rates Total Growth Percentages

Investor Presentation, March 2017

Financial Overview: Shareholder Returns (cont’d)

7 Total Return

• Ann. Equiv.

Ranking (2) 3 Year: 26.2% 8.1% 7th 5 Year: 122.6% 17.3% 2nd 7 Year: 154.8% 14.3% 2nd 10 Year: 246.9% 13.2% 2nd (3)

1) Source: Bloomberg Comparative Analytics 2) Healthcare REIT rankings and average total returns include: VTR, HCP, HCN, LTC, HR, NHI, SNH, SBRA and CCP (1 year only) 3) Ranked 9th among all 173 publicly traded equity REITs. Source: KeyBanc Capital Markets “The Leaderboard”, December 30, 2016

Shareholder Returns Through 12/31/2016 (1) Dividends per Share and Return of Capital % Omega's Total Returns vs Healthcare REIT Average (2)

(Years ending 12/31)

0.0% 50.0% 100.0% 150.0% 200.0% 250.0% 300.0% 3 Year 5 Year 7 Year 10 Year Omega's Total Returns

• Avg. Total Returns of Healthcare REITs

Tax Treatment ($) Tax Treatment (%) Total Dividends Ordinary (1) Income Return of (1) Capital Capital Gain (1) Distribution % Ordinary Income % Return of Capital % Capital Gain Distribution 2012 1.69 0.88 0.81

• 52.3%

47.7% 0.0% 2013 1.86 1.54 0.32

• 82.6%

17.4% 0.0% 2014 2.02 1.83 0.19

• 90.8%

9.2% 0.0% 2015 2.18 1.13 1.05

• 52.0%

48.0% 0.0% 2016 2.36 1.97 0.32 0.07 83.4% 13.6% 3.0% 10.11 $ 7.36 $ 2.68 $ 0.07 $ 72.8% 26.6% 0.7%

1) Rounded to two decimals

Investor Presentation, March 2017

Omega Overview: Recent Announcements

8 1Q 2017

• Increased our quarterly common stock dividend rate to $0.62 per share.

4Q 2016

• Invested approximately $50 million in a joint venture investment.
• Invested $40 million in capital renovation and construction-in-progress projects.
• Increased our quarterly common stock dividend rate to $0.61 per share.

3Q 2016

• Completed $428 million in new investments.
• Invested $38 million in capital renovation and construction-in-progress projects.
• Repurchased an outstanding $180 million secured term loan due 2019.
• Issued $700 million aggregate principal amounts of our 4.375% Senior Notes due 2023.
• Increased our quarterly common stock dividend rate to $0.60 per share.

2Q 2016

• Completed $220 million in new investments.
• Invested $28 million in capital renovation and construction-in-progress projects.
• Increased our quarterly common stock dividend rate to $0.58 per share.

1Q 2016

• Completed $494 million in new investments.
• Invested $31 million in capital renovation and construction-in-progress projects.
• Completed a $350 million senior unsecured 5-year term loan.
• Increased our quarterly common stock dividend rate to $0.57 per share.

Investor Presentation, March 2017

Omega Overview Proven Track Record of Growth and New Investments



Continue to pursue selective investments

• 2004 New Investments:

$126 million

• 2005 New Investments:

$311 million

• 2006 New Investments:

$203 million

• 2007 New Investments:

$ 46 million

• 2008 New Investments:

$197 million

• 2009 New Investments:

$292 million

• 2010 New Investments:

$638 million

• 2011 New Investments:

$365 million

• 2012 New Investments:

$510 million

• 2013 New Investments:

$621 million

• 2014 New Investments:

$566 million

• 2015 New Investments:

$507 million (1)

• 2016 New Investments:

$1,328 million

• Additionally, the Company has approximately $320 million committed to its operators for capital

improvement and new construction projects to be completed over the next 24-36 months (as of 2/9/2017)



Continue to pursue accretive transactions



Leverage existing 79 operator relationships



Invest primarily in current core markets



Maintain focus on senior care facilities



Use credit facility to make acquisitions and replenish availability with long-term debt and equity issuances



Approximately $1.2 billion of combined cash and credit facility availability as of February 9, 2017

1)

Investments exclude the approximate $3.9 billion acquisition via merger of Aviv REIT on April 1, 2015

2)

Excludes investments made by Aviv prior to acquisition via merger by Omega

Omega’s Growth Strategy $5.7 billion (2)

9

SNF Industry and Reimbursement Overview

Investor Presentation, March 2017

Growth in SNF Census, by Age Cohort

11

<65 210 <65 214 <65 217 <65 220 <65 224 65-74 224 65-74 269 65-74 302 65-74 320 65-74 311 75-84 358 75-84 427 75-84 548 75-84 661 75-84 749 85+ 565 85+ 603 85+ 671 85+ 819 85+ 1,068

• 100

200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 2,500

2015 2020 2025 2030 2035

Number of SNF Residents (000's)

<65 65-74 75-84 85+

Maximum current SNF capacity

Source: CMS Nursing Home Data Compendium (2015 Edition) for percentage of SNF residents by age cohort and US Census Bureau data for population growth projections by age cohort.

82% 91% 105% 122% 142%

Occupancy

Aging demographics would drive SNF occupancy beyond capacity in less than 10 years without efforts to reduce lengths of stay and increased utilization of alternative care sites.

Investor Presentation, March 2017

Attractive Fundamentals: Primary PAC Site

12

SNFs – preferred post-acute care environment with growing demand and limited supply

Medicare Acute Hospital Discharges 43% Sent to Post-Acute SNFs 48% HHAs 39% IRFs 9% LTACHs 3%

Source: MedPAC Data Book, June 2016

Investor Presentation, March 2017

Industry Overview: Attractive Fundamentals

13

Supply of facilities and beds to meet increasing future demand is limited due to CON restrictions, increasing occupancy prospects for existing facilities

(figures in 000s, unless

• therwise indicated)

Source: Compiled by American Health Care Association (AHCA) Research Department from CMS OSCAR/CASPER survey data (2009-2016) Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Dec '14 Dec '15 Dec '16 Certified Beds 1,667k 1,670k 1,665k 1,667k 1,666k 1,663k 1,662k 1,662k Patients in Certified Beds 1,400k 1,394k 1,384k 1,383k 1,372k 1,368k 1,357k 1,347k Certified Facilities 15.7k 15.7k 15.6k 15.7k 15.7k 15.6k 15.7k 15.7k 15.0k 15.1k 15.2k 15.3k 15.4k 15.5k 15.6k 15.7k 15.8k 15.9k 16.0k 1,300k 1,350k 1,400k 1,450k 1,500k 1,550k 1,600k 1,650k 1,700k Certified Facilities Beds & Patients

Trend in Certified Nursing Facilities, Beds and Residents

Investor Presentation, March 2017 2009 2010 2011 2012 2013 2014 2015 2016 OHI Occ. % 84.6% 84.0% 83.9% 83.4% 83.3% 84.5% 82.5% 82.1% Industry Occ. % 84.0% 83.4% 83.1% 82.9% 82.3% 82.3% 81.6% 81.1% 50.0% 55.0% 60.0% 65.0% 70.0% 75.0% 80.0% 85.0% 90.0% 95.0% 100.0%

Industry Overview: Attractive Fundamentals

14

• Stable Occupancy Rates

Source: Industry data compiled by AHCA Research Department from CMS OSCAR/CASPER survey data (2009-2016)

(1) 2015 and 2016 OHI occupancy reflects inclusion of legacy Aviv REIT facilities

(1)

Investor Presentation, March 2017

50.54 56.78 65.59 75.29 83.63 79.36 83.03 89.31 104.70 120.47 79.43 83.13 86.40 99.99 115.41 79.32 82.79 81.19 91.27 102.83 40 50 60 70 80 90 100 110 120 130 2012 2016 2021 2026 2031 (Millions of Days or Beneficiaries)

Yearly Medicare SNF Volume (Days)

Total Medicare Enrollment (Beneficiaries) Conservative Moderate Aggressive

Industry Overview: Attractive Fundamentals

15

Source: SNF Volume from December 2016 Avalere Health projection model (“Assessment of SNF Reimbursement and Utilization Landscape” Report); Medicare enrollment from 2016 Medicare Trustees’ Report

SNF Medicare patient days projected to grow due to increasing enrollment, even while lengths

• f stay decline under alternative payment models (bundling, managed care, ACOs, VBP)

Note: Conservative, Moderate, and Aggressive refer to model assumptions about rate of growth in alternative payment models (not traditional fee-for-service)

Investor Presentation, March 2017

$150 $160 $170 $180 $190 $200 $210 $220

Medicaid PPD

(Jan 2009 - Sept 2016)

$350 $375 $400 $425 $450 $475 $500 $525

$PPD

Medicare PPD

(Jan 2009 - Sept 2016)

Industry Overview: Reimbursement Outlook

16

Medicare

• Growth in alternative payment models expected to continue under new DHHS/CMS leadership, but at a slower pace
• Inflationary increases for fee-for-service PPS rates reduced to 1% for the next two years under current RUG classification system
• Potential CMS PPS reform commencing in 2018 would eliminate RUG system and use alternative patient characteristics system,

effectively reducing payments for therapy services while enhancing payments for complex nursing care and incentivizing lower lengths of stay

Medicaid

• Congressional legislation under consideration to repeal/replace ACA expected to include Medicaid reform, which will likely change

federal funding to states from current matching program to capped per capita program; impact currently unknown but long phase-in process likely to minimize state financial burden while eligibility and other potential state reforms enacted

• Omega's geographic diversification helps minimize impact of rate changes in any particular state

Average Medicare and Medicaid Rates by Quarter for Omega’s Entire Portfolio (1) (through September 30, 2016)

1) Rate for each month is calculated by dividing total Portfolio Operator Medicare/Medicaid revenues by total Portfolio Operator Medicare/Medicaid days.

Portfolio Overview

Investor Presentation, March 2017

Portfolio Overview: Summary

18

• As of December 31, 2016
• 981 operating healthcare facilities, located in 42 states and the UK, operated by 79 third-

party operators

• Gross real estate investments of approximately $9.2B
• Focused on leasing long-term care facilities (primarily skilled nursing facilities) to strong

regional and local operators

• Long term triple-net master leases with cross collateralization provisions
• Strong credit profiles
• Security deposits of three to six months
• Monthly reporting requirements
• Property level expenses are operator’s responsibility (labor, insurance, property taxes, capital

expenditures)

• Omega receives fixed rent payments from tenants, with annual escalators
• Operators receive revenues through reimbursement of Medicare, Medicaid and private pay for

services

Investor Presentation, March 2017

Facility Map at December 31, 2016

19

1) Many operators have facilities in multiple states 2) Excludes non-operating facilities, closed and/or not currently providing patient services 3) Includes New York City 2nd Ave. development project

(No. of Operators  No. of Facilities)

<10 facilities 10 to 20 facilities >20 facilities State Concentration Key

319 MS 310 NM 69 WI 36 NV 1058 CA 519 WA 511 ID 2 9 AZ 13108 TX 314 CO 311 IA 519 MO 432 AR 112 LA 417 IL 759 IN 1286 OH 331 KY 841 TN 29 AL 1297 FL 513 GA 531 NC

411 WV

742 PA 315 MA 13 NH 11 VT 14 RI 212 MD 316 KS 49 OK MI 346 WY ND SD 11 NY NJ ME 24 UT 47 OR 221 SC 516 VA 12 MT 17 NE 13 MN 16 CT

135

United Kingdom

Operators: 79 (1) Facilities: 981 (2) States: 42 (3) Foreign Countries: 1 (UK)

Investor Presentation, March 2017

Ohio 10% Florida 10% Texas 8% Michigan 7% California 5% Indiana 5% Pennsylvania 5% Tennessee 5% North Carolina3% South Carolina 3% Other States 39%

Portfolio Overview: Omega State Diversification as of December 31, 2016

20

Rent/Interest by State 1

1) Rent excludes all GAAP required non-cash straight-line or lease inducement revenue 2) Excludes seventeen facilities closed and/or not currently providing patient services; includes two facilities held-for-sale 3) Many operators have facilities in multiple states

($ in thousands)

State 4Q16 Annualized Contractual Rent/Interest % of Total Rent/Interest Facilities (2) Operators (3)

• 1. Ohio

87,213 $ 10.3% 86 12

• 2. Florida

86,096 10.2% 97 12

• 3. Texas

71,337 8.4% 108 13

• 4. Michigan

55,393 6.6% 46 3

• 5. California

44,660 5.3% 58 10

• 6. Indiana

43,329 5.1% 59 7

• 7. Pennsylvania

43,105 5.1% 42 7

• 8. Tennessee

38,508 4.6% 41 8

• 9. North Carolina

25,425 3.0% 31 5

• 10. South Carolina

24,211 2.9% 21 2

Other States

325,824 38.6%

392 72 TOTAL 845,102 $ 100.0% 981

79

Investor Presentation, March 2017

Ciena, 9.7% Signature, 7.3% Genesis, 6.9% ARK, 6.4% Communicare, 5.4% Saber, 5.0% HHC, 4.1% Maplewood, 3.9% Guardian, 3.5% Diversicare, 3.3% 69 Remaining Operators, 44.5%

Portfolio Overview: Omega Operator Diversification as of December 31, 2016

21

Rent/Interest by Operator *

* Rent excludes all GAAP required non-cash straight-line or lease inducement revenue

($ in thousands)

• No. of

Properties (1) Revenue (2) % Revenue 1 Ciena 68 82,114 $ 10% 2 Signature 63 61,869 7% 3 Genesis 55 58,637 7% 4 ARK 58 53,789 6% 5 Communicare 32 45,319 5% 6 Saber 47 42,236 5% 7 HHC 44 34,544 4% 8 Maplewood 13 32,980 4% 9 Guardian 31 29,320 4% 10 Diversicare 35 28,041 3% Remaining 69 Operators 535 376,254 45% 981 845,102 $ 100%

(1) Total Number of Properties excludes facilities which are non-operating, closed and/or not currently providing patient services. (2) Based on estimated 4Q 2016 contractual rent and mortgage interest income, annualized, and excludes the impact of straight-line accounting.

Investor Presentation, March 2017

Portfolio Overview: Capital Investment Summary as of February 9, 2017

22

Estimated Commitment Property Initial # Beds/ Investment Inception Remaining In Service Year Location # of Projects Type Cash Yield Units Commitment Date Funding Commitment Date

2015 Webster, TX 1 SNF 9.00% 120 16,714,450 3,353,071 13,361,379 Oct-17 2015 Pensacola, FL 1 SNF 8.75% 90 20,788,990 8,274,694 12,514,296 May-17 2016 Pensacola, FL 1 SNF 6.00% 90 19,400,000 930,173 18,469,827 Aug-18 2016 Viera, FL 1 SNF 8.75% 131 26,500,000 3,776,923 22,723,077 Jul-18 2015 Tampa Lakes, FL 1 SNF 9.25% 179 26,500,000 22,603,756 3,896,244 Jan-17 2015 Polk County,FL 1 SNF 9.00% 120 18,000,000 2,388,166 15,611,834 Dec-17 2014 Brewster, MA 1 ALF 9.00% 131 37,288,000 36,648,410 639,590 Dec-16 2014 West Yarmouth, MA 1 ALF 9.00% 126 10,230,500 537,086 9,693,414 TBD 2014 Vara, MA 1 ALF 9.00% 75 23,835,652 10,924,043 12,911,609 Nov-17 2015 2nd Ave, NY 1 ALF/MC 7.00% 214 249,628,480 130,184,133 119,444,347 Apr-19 2015 Baton Rouge, LA 1 ALF 8.75% 50 11,700,000 9,534,775 2,165,225 Sep-17 2015 Five Forks, GA 1 ALF 8.75% 48 10,600,000 8,579,970 2,020,030 Jan-17 2015 Watkins, VA 1 ALF 8.75% 48 11,700,000 5,017,497 6,682,503 Jan-17 2014 Middleburg, FL 1 SNF 9.00% 120 17,750,000 2,218,394 15,531,606 Dec-18 2016 Brunswick, NC 1 SNF 9.00% 100 11,650,000 2,766,704 8,883,296 Sep-17

Total new facilities under construction: 15 1,642 512,286,072 $ 247,737,796 $ 264,548,276 $ Additional CAPEX (excluding new builds): 101 162,959,005 $ 107,544,495 $ 55,414,509 $ Total: 116 675,245,077 $ 355,282,291 $ 319,962,785 $

Investor Presentation, March 2017

Portfolio Overview: Omega’s Strong Portfolio Rent Coverage

23

1.0 1.3 1.5 1.8 2.0 2.3 2.5

TTM EBITDARM & EBITDAR Coverage 3/31/2002 to 9/30/2016, Quarterly

TTM EBITDARM TTM EBITDAR Period Trailing Twelve Months (TTM) Period Trailing Twelve Months (TTM) Ending EBITDARM EBITDAR Ending EBITDARM EBITDAR 03/31/02 1.5 1.1 03/31/10 2.0 1.6 06/30/02 1.6 1.1 06/30/10 2.0 1.6 09/30/02 1.6 1.1 09/30/10 2.1 1.6 12/31/02 1.5 1.1 12/31/10 2.2 1.7 03/31/03 1.5 1.1 03/31/11 2.2 1.8 06/30/03 1.5 1.1 06/30/11 2.3 1.8 09/30/03 1.5 1.1 09/30/11 2.3 1.9 12/31/03 1.5 1.1 12/31/11 2.2 1.8 3/31/04 1.6 1.1 3/31/12 2.1 1.7 6/30/04 1.7 1.2 6/30/12 2.0 1.6 9/30/04 1.8 1.3 9/30/12 2.0 1.5 12/31/04 1.9 1.4 12/31/12 2.0 1.5 3/31/05 1.8 1.4 3/31/13 2.0 1.5 6/30/05 1.9 1.4 6/30/13 1.9 1.5 9/30/05 1.9 1.5 9/30/13 1.9 1.5 12/31/05 2.0 1.5 12/31/13 1.9 1.4 3/31/06 2.0 1.6 3/31/14 1.8 1.4 6/30/06 2.1 1.6 6/30/14 1.8 1.4 9/30/06 2.1 1.6 9/30/14 1.8 1.4 12/31/06 2.1 1.7 12/31/14 1.8 1.4 3/31/07 2.1 1.7 3/31/15 1.78 1.38 6/30/07 2.2 1.7 6/30/15 1.80 1.41 9/30/07 2.2 1.8 9/30/15 1.79 1.40 12/31/07 2.2 1.8 12/31/15 1.78 1.40 3/31/08 2.2 1.8 3/31/16 1.75 1.37 6/30/08 2.1 1.7 6/30/16 1.72 1.34 9/30/08 2.1 1.7 9/30/16 1.68 1.31 12/31/08 2.0 1.6 3/31/09 2.0 1.6 6/30/09 2.0 1.6 9/30/09 2.0 1.6 12/31/09 2.0 1.6

(1) 1) Prior to 2015, Rent Coverages were reported to one decimal.

Investor Presentation, March 2017

Portfolio Overview: Omega Lease and Mortgage Revenue Expirations as of December 31, 2016

24

Minimal Near Term Expirations

• Approximately 90% of portfolio expirations occur after 2021
• Combined EBITDAR coverage of leases expiring through 2021 is 1.45x (1)

Note: Expiration percentages based on 4Q 2016 contractual rents and interest, annualized. 1) Operator coverage data as of September 30, 2016

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Thereafter

1.2% 4.9% 0.4% 1.8% 1.6% 8.1% 6.5% 8.7% 2.9% 2.9% 60.9%

Financial Overview

Investor Presentation, March 2017

Financial Overview: Consistent Financial Policy

26

Q4 2016 (unless otherwise noted)

• Conservative capitalization
• Debt to adjusted EBITDA ratio of 4.0x – 5.0x:

4.72x (see website)

• Significant liquidity
• $1.25B revolving credit facility:

$1.2 billion of availability (as of February 9, 2017)

• Well-laddered debt maturities:

No maturities until June 2019 (assuming allowable credit facility extensions)

• Financial flexibility
• Capital markets access
• Minimize encumbered assets
• Funded Debt to Total Asset Value:

45.9%

• Adjusted Fixed Charge Ratio >3.5x:

4.7x (see website)

• Stable dividend payout ratio
• Less than 85% of AFFO:

Payout of 70%

• Less than 90% of AFAD:

Payout of 78%

• 18 consecutive quarterly dividend increases:

$0.62 as of Q1 2017

Investor Presentation, March 2017

Financial Overview: Growth Strategy

27

• Pursue selective acquisitions
• Leverage existing 79 operator relationships
• Invest primarily in current core markets
• Maintain focus on senior care facilities
• Use credit facility to make acquisitions and replenish availability with long

term debt and equity issuances

Investor Presentation, March 2017

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Acquisitions 114,287 245,550 196,000 39,500 112,135 269,393 588,718 187,696 468,153 561,190 131,689 406,953 972,190 Mortgages 6,500 61,750

• 345

70,000 3,509 20,656 130,041 11,969 3,379 412,307 47,696 31,482 Capex 5,536 3,821 6,805 6,187 14,683 18,609 28,403 18,896 29,436 56,289 21,514 52,295 41,033 CIP (2)

• 62,197

Other (3)

• 28,000
• 221,367
• 200,000

400,000 600,000 800,000 1,000,000 1,200,000 1,400,000

Other (3) CIP (2) Capex Mortgages Acquisitions

Financial Overview: Investment History

28

(in thousands)

Investments, 2004 through December 31, 2016

$4.5 billion

• f new

investments since January, 2010 (1)

(1) 1) Excludes $3.9B Aviv acquisition via merger by Omega on April 1, 2015 2) Included in “Acquisitions” prior to 2016 3) Consists primarily of Mezzanine and JV investments

Total 126,323 311,121 202,805 46,032 196,818 291,511 637,777 364,633 509,558 620,858 565,510 506,944 1,328,269

Investor Presentation, March 2017

$87 $110 $136 $160 $170 $179 $251 $292 $350 $419 $505 $744 $901

$0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$0.94 $1.13 $1.29 $1.32 $1.50 $1.80 $2.50 $2.83 $3.33 $3.92 $4.47 $8.11 $9.17

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Financial Overview: Attractive Growth Profile

29

Core Operations Revenue Gross Investments

($ in billions) ($ in millions)

Investor Presentation, March 2017

$52 $77 $91 $109 $123 $156 $193 $236 $299 $363 $564 $689 $0 $100 $200 $300 $400 $500 $600 $700 $800 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 $101 $127 $145 $159 $170 $236 $279 $334 $402 $487 $716 $870 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Financial Overview: Attractive Growth Profile

30

Adjusted Funds from Operations (2) Adjusted EBITDA(1)

1) Reflects adjustments for nursing home revenues and expenses, nonrecurring items, restricted stock amortization, provisions for impairment, provisions for uncollectible accounts, and adjustments to fair value (see Exhibit) 2) See the Non-GAAP reconciliations provided on our website at www.omegahealtcare.com under “Investor Relations”  “Financial Information”  “Non-GAAP Financial Measures”

($ in millions) ($ in millions)

Investor Presentation, March 2017

3.8x 3.1x 3.3x 3.5x 4.0x 4.1x 4.7x 5.1x 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 2009 2010 2011 2012 2013 2014 2015 2016 3.7x 4.3x 4.8x 4.7x 4.4x 4.6x 4.5x 4.7x 1.3x 0.7x 0.9x 0.9x 0.6x 0.5x 0.3x 0.1x 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 2009 2010 2011 2012 2013 2014 2015 2016

Total Debt / Adj. EBITDA Secured Debt / Adj. EBITDA

Financial Overview: Conservative Capitalization

31

(1) Adjusted annualized EBITDA includes revenue for all new investments as if they occurred January 1 of their respective year. Debt amounts exclude the fair value adjustments on HUD debt and the net premium or discount on the unsecured notes. (2) Reflects adjusted annualized EBITDA divided by the sum of cash interest and preferred dividends, if any.

Leverage (1) Cash Fixed Charge Coverage (2) Target Debt to Adjusted EBITDA Ratio of 4.0x – 5.0x

• Typically have used drawings under the revolver to make acquisitions and

replenished revolver availability with long term debt and equity issuances

4.72x for Q4:16 Annualized 4.7x for Q4:16 Annualized

Investor Presentation, March 2017

$90M $500M Term Loans $350M Term Loan $250M Term Loan $700M 4.375% Notes $400M 5.875% Notes $250M 4.50% Notes $600M 5.25% Notes $700M 4.50% Notes $1,160M Available $20.0 M sub- Notes $400M 4.95% Notes $45M $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 $800 $850 $900 $950 $1,000 $1,050 $1,100 $1,150 $1,200 $1,250 $1,300 $1,350 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028-45 $ Millions

Financial Overview: Conservative Capitalization

32

Debt Maturity Schedule at 2/9/2017

• $2.35B unsecured revolving credit

and term loan facilities

• $1.25B revolver with a June 2018

maturity, with an additional year

• ption
• $1.1B term loans
• $1.2B available as of February 9,

2017

• No near bond term maturities
• 2024 $400MM 5.875% Notes are

callable in March 2017

$1.25B Revolving Credit Facility: $90M drawn at 2/9/2017

Approximate balance of amortizing HUD Loans at 12/31/28 with final maturities to 2044 5.875% Notes Callable Mar 2017

Investor Presentation, March 2017

Financial Overview: Conservative Capitalization

33

Financial Covenant Review

• Strong balance sheet with significant cushion
• n all covenants
• Leverage ratio is key covenant
• Defined as “Funded Debt to Total

Asset Value” not to exceed 60%

• Approximately 46% at Q4 2016
• Debt to Adjusted EBITDA is 4.7x for Q4 2016
• Currently have ability to suspend high yield

related covenants on 2024 bonds (have not elected to do so) leaving only standard REIT covenants Key Bond Covenants (1) Key Credit Facility Covenants (1)

Quarter Ending Debt / Adj. Total Assets Unencumbered Assets / Unsecured Debt Secured Debt / Adj. Total Assets

Requirement: <= 60% >= 150% <= 40% March 31, 2016 48% 204% 2% June 30, 2016 47% 209% 2% September 30, 2016 48% 202% 0% December 31, 2016 47% 47% 207% 207% 0% 0% Status Pass Pass Pass

Consolidated

Quarter Ending Leverage Ratio Secured Leverage Ratio Unsecured Leverage Ratio Fixed Charge Cov. Ratio Unsecured Interest Cov. Ratio

Requirement: <= 60% <=30% <= 60% >=1.50 to 1 >=2.00 to 1 March 31, 2016 46% 3% 46% 5.2 4.9 June 30, 2016 48% 3% 49% 5.3 5.0 September 30, 2016 48% 1% 52% 5.3 4.3 December 31, 2016 46% 46% 1% 1% 50% 50% 5.3 4.5 Status Pass Pass Pass Pass Pass

(1) Covenants are based on calculations as defined in the Company’s Credit Agreement and Senior Note Indentures

Investor Presentation, March 2017

Financial Overview: Financial Flexibility

34

Capital Markets Accessibility

• Seasoned market issuer
• Senior Unsecured Notes Rated BBB- by S&P and Fitch; Baa3 by Moody’s

Capital Market Activity, 2004 through December 31, 2016

Note: Common Equity includes shares issued under Omega’s DRIP/DSPP and Omega’s ATM/ESP; 2015 Common Equity excludes 52.9MM combined shares and units issued for Aviv on April 1, 2015 (~$3.9B)

Totals

4,310,000 118,488 2,495,634 6,924,122 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Senior Notes 260,000 225,000

• 775,000
• 400,000
• 650,000

1,300,000 700,000 Preferred Equity 118,488

• Common Equity

74,909 68,019 33,171 138,359 230,574 102,120 221,474 91,363 191,690 338,847 134,954 609,721 260,433

• 500,000

1,000,000 1,500,000 2,000,000 2,500,000

Investor Presentation, March 2017

Financial Overview: Financial Flexibility

35

Minimize Encumbered Assets

• $10.2B of total undepreciated assets (over 99% unencumbered)
• $1.25B unsecured revolving credit facility
• $1.1B unsecured term loans
• $2.325B of long-term bonds
• $55MM of 30+ year amortizing HUD loans

Encumbered Assets as % of Total Gross Assets

(000's) 4Q 2016 Actual Total Assets: 1 $8,949,260 Accumulated Depreciation: 1,240,336 Total Undepreciated Assets: $10,189,596 Encumbered Assets: 2 (85,258) Total Unencumbered Assets: $10,104,338 Encumbered Assets to Total Gross Assets: 0.8% 1) Includes intangibles and AR 2) Assets securing HUD loans

Investor Recap

Investor Presentation, March 2017

Investor Recap

37

• Attractive industry fundamentals
• Consistent and stable free cash flow and conservative capitalization
• Strong portfolio rent coverage
• Geographic and operator diversification
• No upcoming material lease expirations
• Proven track record of acquisitions and growth
• Seasoned capital markets issuer
• No senior note maturities until 2023
• Experienced senior management team with average tenure of 16+ Years

Exhibits

Investor Presentation, March 2017

Exhibit I: Non-GAAP Financial Reconciliation: Adjusted EBITDA Reconciliation

39

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Net Income...................................................................................................................... $ 38,753 $ 55,697 $ 69,374 $ 78,137 $ 82,111 $ 58,436 $ 52,606 $ 120,698 $ 172,521 $ 221,349 $ 233,315 $ 383,367 Depreciation and amortization.................................................................................. 25,277 32,263 36,056 39,890 44,694 84,623 100,337 112,983 128,646 123,257 210,703 267,062 Depreciation and amortization unconsolidated joint venture................................ - - - - - - - - - - - 1,107 Interest expense & refinancing costs......................................................................... 34,771 47,611 44,092 39,746 39,075 90,602 86,899 106,096 92,048 126,869 183,208 175,561 Provision for income taxes......................................................................................... 2,385 2,347 (7) (72) - - - - - - 1,211 1,405 EBITDA...................................................................................................................... 101,186 137,918 149,515 157,701 165,880 233,661 239,842 339,777 393,215 471,475 628,437 828,502 Nursing home revenues.............................................................................................. - - - (24,170) (18,430) (7,336) - - - - - - Nursing home expenses.............................................................................................. - - - 27,601 20,632 7,998 653 - - - - - Litigation settlement................................................................................................... (1,599) - - (526) (4,527) (1,111) - - - - - - Acquisition costs......................................................................................................... - - - - 1,561 1,554 1,204 909 245 3,948 57,525 9,582 (Gain) loss on assets sold - net................................................................................... (7,969) (1,354) (1,993) (12,292) (753) 4 (1,670) (11,799) 1,151 (2,863) (6,353) (50,208) Advocat non-cash accretion investment income...................................................... (1,636) (1,280) - - - - - - - - - - Revenue from prepayment penalty/administration fee........................................... (4,059) - - - - - - - - - - - Provisions for impairment on equity securities........................................................ 3,360 - - - - - - - - - - - Gain from sale of Sun common stock........................................................................ - (2,709) - - - - - - - - - - Advocat non-cash gain on investment restructuring................................................ - (3,567) - - - - - - - - - - Restatement expense................................................................................................. - 1,234 - - - - - - - - - - Lease expiration expense........................................................................................... 1,050 - - - - - - - - - - - Adjustment of derivatives to fair value..................................................................... 16 (9,079) - - - - - - - - - - Advocat one-time straight line adjustment............................................................... - - (5,040) - - - - - - - - - One-time cash revenue............................................................................................... - - - (702) - - - (536) (1,405) - - - One-time non-cash deferred mortgage interest income.......................................... - - - - - - - (236) - (585) - FIN 46R adjustment..................................................................................................... - - (296) (90) - - - - - - - Settlement of prior operator's past due obligation.................................................. - - - (650) - - - - - - - Gain on Sale of CSFB Mortgage Certificates.............................................................. - - - - - (789) - - - - - Provisions for real estate impairment....................................................................... 9,617 541 1,416 5,584 159 155 26,344 272 415 3,660 17,681 58,726 Provisions for uncollectible mortgages, notes and A/R............................................ 83 944 - 4,248 3,935 - 6,439 - 2,141 2,723 7,871 9,845 Restricted Stock amortization expense...................................................................... 1,140 4,517 1,425 2,103 1,918 2,211 6,037 5,942 5,942 8,592 11,133 13,790 Adjusted EBITDA...................................................................................................... 101,189 $ 127,165 $ 145,027 $ 158,807 $ 170,375 $ 236,347 $ 278,849 $ 334,329 $ 401,704 $ 486,950 $ 716,294 $ 870,237 $ Proforma Acquisition Income..................................................................................... 25,602 11,358 2,646 15,360 30,315 32,807 37,153 45,420 55,696 22,194 70,727 47,335 Adjusted Proforma EBITDA (1)................................................................................ 126,791 $ 138,523 $ 147,673 $ 174,167 $ 200,690 $ 269,154 $ 316,002 $ 379,749 $ 457,400 $ 509,144 $ 787,021 $ 917,572 $ Cash Interest(2)…………………………………………………………………… 29,900 $ 42,174 $ 42,134 $ 37,745 $ 36,077 $ 67,282 $ 81,643 $ 95,822 $ 100,459 $ 119,153 $ 150,915 $ 170,516 $ Preferred Dividends…………………………………………….……………….. 11,385 9,923 9,923 9,714 9,086 9,086 1,691

• Total Fixed Charges………………………………………………………….

41,285 $ 52,097 $ 52,057 $ 47,459 $ 45,163 $ 76,368 $ 83,334 $ 95,822 $ 100,459 $ 119,153 $ 150,915 $ 170,516 $ Adjusted EBITDA / Cash Fixed Charge coverage ratio……………………………….. 2.5 x 2.4 x 2.8 x 3.3 x 3.8 x 3.1 x 3.3 x 3.5 x 4.0 x 4.1 x 4.7 x 5.1 x Adjusted Proforma EBITDA / Cash Fixed Charge coverage ratio……………………………….. 3.1 x 2.7 x 2.8 x 3.7 x 4.4 x 3.5 x 3.8 x 4.0 x 4.6 x 4.3 x 5.2 x 5.4 x (1) Adjusted Proforma EBITDA assumes all new investments in each respective year had closed on January 1 of that respective year. (2) Excludes interest refinance costs such as early extingishment premiums and amortization of deferred financing costs. Year Ended December 31,

Investor Presentation, March 2017

Exhibit I: Non-GAAP Financial Reconciliation (cont’d): Leverage Reconciliation

40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Funded Debt Revolving Line of Credit - secured.......................................................... 150,000 $ 48,000 $ 63,500 $ 94,100 $

• $
• $
• $
• $
• $
• $
• $

Revolving Line of Credit - unsecured......................................................

• 272,500

158,000 326,000 85,000 230,000 190,000 Term Loan - secured................................................................................

• 100,000
• 2012 Term Loan - unsecured...................................................................
• 100,000

200,000

• 2014 Term Loan - unsecured Trache 1...................................................
• 200,000

200,000 200,000 2015 Term Loan - unsecured Trache 2...................................................

• 200,000

200,000 2016 Term Loan - unsecured Trache 3...................................................

• 350,000

2015 OP Term Loan - unsecured.............................................................

• 100,000

100,000 2015 7 Yr Term Loan - unsecured...........................................................

• 250,000

250,000 HUD Debt - secured (1)............................................................................

• 180,890

279,558 335,711 280,425 237,881 56,204 54,955 GEMSA - secured.....................................................................................

• 180,000
• Other Borrowings - secured....................................................................
• 59,354
• Industrial Revenue Bonds - unsecured..................................................

2,410 1,995

• Subordinated Debt - unsecured (2)........................................................
• 20,000

20,000 20,000 20,000 20,000 20,000 20,000 Notes - unsecured (3)(4).......................................................................... 485,000 485,000 485,000 485,000 950,000 950,000 1,175,000 1,175,000 1,825,000 2,350,000 3,053,000 Total Funded Debt 637,410 $ 534,995 $ 548,500 $ 738,454 $ 1,150,890 $ 1,522,058 $ 1,788,711 $ 2,001,425 $ 2,367,881 $ 3,586,204 $ 4,417,955 $ Less: Cash on-hand (729) (1,979) (209) (2,170) (6,921) (351) (1,711) (2,616) (4,489) (5,424) (93,687) Adjusted Net Funded Debt 636,681 $ 533,016 $ 548,291 $ 736,284 $ 1,143,969 $ 1,521,707 $ 1,787,000 $ 1,998,809 $ 2,363,392 $ 3,580,780 $ 4,324,268 $ Secured Funded Debt (1)......................................................................... 150,000 48,000 63,500 253,454 180,890 279,558 335,711 280,425 237,881 236,204 54,955 Unsecured Funded Debt (2)(3)(4)........................................................... 487,410 486,995 485,000 485,000 970,000 1,242,500 1,453,000 1,721,000 2,130,000 3,350,000 4,363,000 Less: Cash on-hand (729) (1,979) (209) (2,170) (6,921) (351) (1,711) (2,616) (4,489) (5,424) (93,687) Adjusted Net Funded Debt 636,681 $ 533,016 $ 548,291 $ 736,284 $ 1,143,969 $ 1,521,707 $ 1,787,000 $ 1,998,809 $ 2,363,392 $ 3,580,780 $ 4,324,268 $ Net Debt/Adjusted Proforma Annualized EBITDA (2) 4.6x 3.6x 3.1x 3.7x 4.3x 4.8x 4.7x 4.4x 4.6x 4.5x 4.7x Secured Funded Debt/Adjusted Proforma Annualized EBITDA (2) 1.1x 0.3x 0.4x 1.3x 0.7x 0.9x 0.9x 0.6x 0.5x 0.3x 0.1x 1) HUD debt for December 31, 2014, 2013, 2012 and 2011 excludes $13.6 million, $18.1 million, $30.8 million and $24.1 million of adjustments related to the acquisition date fair value premium, respectively. 2) Subordinated debt for December 31, 2016, 2015, 2014, 2013, 2012 and 2011 excludes $0.5 million, $0.6 million, $0.7 million, $0.9 million, $1.0 million and $1.2 million of adjustments related to the acquisition date fair value premium, respectively. 3) Unsecured borrowings for 2006 and 2007 excludes FIN 46 debt of $39 million. 4) The 2016 unsecured note balance includes $3.0 million of notes payable to a seller related to the purchase price consideration. Year Ended December 31,

Investor Presentation, March 2017

Exhibit 2: Growth of Per Share AFFO, FAD and Dividends (10 Years)

41

Quarterly Annually Quarter Ended Ending Share Price

• Div. *

Yield AFFO/ Share Dividend Payout Ratio FAD/ Share FAD Payout Ratio Omega AFFO Guidance 1 AFFO/ Share % Change FAD/ Share % Change Annual Dividend % Change 2007 3/31/2007 $17.15 6.1% 0.3375 $ 0.27 $ 80.0% 0.31 $ 86.8% $1.32 - $1.36 6/30/2007 $15.83 6.8% 0.3365 $ 0.27 80.2% 0.31 $ 86.0% 9/30/2007 $15.53 7.0% 0.3528 $ 0.28 80.0% 0.33 $ 84.9% 12/31/2007 $16.05 7.0% 0.3535 $ 0.29 82.0% 0.34 $ 85.6% $1.38 11.3% $1.29 9.8% $1.11 13.3% 2008 3/31/2008 $17.36 6.7% 0.3639 $ 0.30 $ 82.4% 0.36 $ 83.1% $1.41 - $1.43 6/30/2008 $16.65 7.2% 0.3816 $ 0.30 78.6% 0.37 $ 80.9% 9/30/2008 $19.66 6.1% 0.3387 $ 0.30 88.6% 0.31 $ 97.4% 12/31/2008 $15.97 7.5% 0.3702 $ 0.30 81.0% 0.34 $ 89.4% $1.45 5.4% $1.38 6.3% $1.20 8.1% 2009 3/31/2009 $14.08 8.5% 0.3701 $ 0.30 $ 81.1% 0.36 $ 84.5% $1.47 - $1.50 6/30/2009 $15.52 7.7% 0.3714 $ 0.30 80.8% 0.36 $ 84.1% 9/30/2009 $16.02 7.5% 0.3657 $ 0.30 82.0% 0.35 $ 85.0% 12/31/2009 $19.45 6.2% 0.3604 $ 0.32 88.8% 0.34 $ 94.1% $1.47 0.9% $1.40 2.1% $1.22 1.7% 2010 3/31/2010 $19.49 6.6% 0.3766 $ 0.32 $ 85.0% 0.37 $ 86.4% $1.60 - $1.68 6/30/2010 $19.93 6.4% 0.3652 $ 0.36 98.6% 0.40 $ 91.0% 9/30/2010 $22.45 6.4% 0.4531 $ 0.37 81.7% 0.42 $ 87.7% 12/31/2010 $22.44 6.6% 0.4566 $ 0.37 81.0% 0.41 $ 90.8% $1.65 12.5% $1.60 13.6% $1.42 16.4% 2011 3/31/2011 $22.34 6.6% 0.4432 $ 0.38 $ 85.7% 0.40 $ 94.8% $1.80 - $1.86 6/30/2011 $21.01 7.2% 0.4748 $ 0.40 84.2% 0.43 $ 92.1% 9/30/2011 $15.93 10.0% 0.4769 $ 0.40 83.9% 0.44 $ 91.1% 12/31/2011 $19.35 8.3% 0.4963 $ 0.41 82.6% 0.46 $ 88.7% 1.89 $ 14.5% $1.74 8.9% $1.59 12.0% 2012 3/31/2012 $21.26 7.7% 0.5469 $ 0.42 $ 76.8% 0.47 $ 88.6% $2.06 - $2.12 6/30/2012 $22.50 7.5% 0.5252 $ 0.42 80.0% 0.45 $ 92.6% 9/30/2012 $22.73 7.4% 0.5353 $ 0.44 82.2% 0.47 $ 93.6% 12/31/2012 $23.85 7.4% 0.5776 $ 0.45 77.9% 0.52 $ 85.9% 2.18 $ 15.3% $1.92 10.6% $1.73 8.8% 2013 3/31/2013 $30.36 5.9% 0.6313 $ 0.46 $ 72.9% 0.57 $ 80.2% $2.45 - $2.50 6/30/2013 $31.02 5.9% 0.6227 $ 0.47 75.5% 0.56 $ 83.7% 9/30/2013 $29.87 6.3% 0.6260 $ 0.48 76.7% 0.57 $ 84.5% 12/31/2013 $29.80 6.4% 0.6471 $ 0.49 75.7% 0.59 $ 83.6% $2.53 15.9% $2.29 19.2% $1.90 9.8% 2014 3/31/2014 $33.52 5.8% 0.7112 $ 0.50 $ 70.3% 0.65 $ 76.9% $2.69 - $2.72 6/30/2014 $36.86 5.4% 0.6859 $ 0.51 74.4% 0.63 $ 81.5% 9/30/2014 $34.19 6.0% 0.7320 $ 0.52 71.0% 0.67 $ 77.7% 12/31/2014 $39.07 5.3% 0.7232 $ 0.53 73.3% 0.66 $ 80.0% $2.85 12.9% 2.61 $ 13.9% $2.06 8.4% 2015 3/31/2015 $40.57 5.2% 0.7084 $ 0.54 $ 76.2% 0.65 $ 83.2% $2.98 - $3.04 6/30/2015 $36.86 5.9% 0.7696 $ 0.55 71.5% 0.70 $ 78.6% 9/30/2015 $35.15 6.3% 0.7913 $ 0.56 70.8% 0.72 $ 78.1% 12/31/2015 $34.98 6.4% 0.8067 $ 0.57 70.7% 0.72 $ 78.8% $3.08 7.8% 2.79 $ 7.0% $2.22 7.8% 2016 3/31/2016 $35.30 6.5% 0.8336 $ 0.58 $ 69.6% 0.75 $ 77.5% $3.25 - $3.30 6/30/2016 $33.95 6.8% 0.8684 $ 0.60 69.1% 0.77 $ 77.6% 9/30/2016 $35.45 6.8% 0.8327 $ 0.61 73.3% 0.75 $ 81.6% 12/31/2016 $31.26 7.8% 0.8803 $ 0.62 70.4% 0.80 $ 77.8% $3.42 11.0% 3.07 $ 9.9% $2.41 8.6%

• 1. Except for 2015, guidance provided at the beginning of each fiscal year

* Based on the annualized dividend announced the previous quarter

• No. of consecutive quarterly dividends paid since 2003:

54

• No. of quarterly dividend increases since 2003:

40

• No. of consecutive quarterly dividend increases:

18

Investor Presentation, March 2017

Exhibit 3: DRIP/DSPP and Equity Shelf Program (ESP) Activity

42

Dividend Reinvestment Optional/Initial Purchases/Waiver Total Purchases Remaining Date Shares

• Avg. Price

Net Proceeds Shares

• Avg. Price

Net Proceeds Shares

• Avg. Price

Proceeds Authorized 1994 104,000 22.644 $ 2,355,000 $ 1995 964,000 24.148 $ 23,279,000 $ 1996 482,000 26.562 $ 12,803,000 $ 1997 53,000 31.717 $ 1,681,000 $ 1998 58,000 31.586 $ 1,832,000 $ 1999 to 2004 69,232 6.879 $ 476,277 $ 56,075 11.069 $ 620,717 $ 125,307 8.754 $ 1,096,994 $ 2005 to 2008 100,376 14.243 $ 1,429,665 $ 6,288,189 14.591 $ 91,748,994 $ 6,388,564 14.585 $ 93,178,659 $ 2009 54,888 15.345 $ 842,261 $ 1,636,690 16.170 $ 26,465,921 $ 1,691,578 16.144 $ 27,308,181 $ 2010 47,110 19.812 $ 933,356 $ 2,913,613 20.458 $ 59,605,405 $ 2,960,723 20.447 $ 60,538,761 $ 2011 687,944 18.432 $ 12,680,187 $ 2,164,804 21.521 $ 46,588,707 $ 2,852,748 20.776 $ 59,268,894 $ 9,753,789 2012 Q1 122,659 21.308 $ 2,613,679 $ 542,256 21.444 $ 11,628,171 $ 664,915 21.419 $ 14,241,850 $ 2012 Q2 152,992 21.134 $ 3,233,287 $ 2,388,543 21.570 $ 51,521,070 $ 2,541,535 21.544 $ 54,754,357 $ 2012 Q3 259,377 23.224 $ 6,023,642 $ 1,324,750 23.505 $ 31,137,733 $ 1,584,127 23.459 $ 37,161,374 $ 2012 Q4 264,054 21.272 $ 5,617,010 $ 7,395 22.530 $ 166,610 $ 271,449 21.306 $ 5,783,619 $ 4,691,763 2013 Q1 205,131 27.419 $ 5,624,569 $ 1,110,196 27.669 $ 30,718,513 $ 1,315,327 27.630 $ 36,343,082 $ 14,732,238 2013 Q2 143,371 35.969 $ 5,156,940 $ 3,726 32.998 $ 122,951 $ 147,097 35.894 $ 5,279,892 $ 14,585,141 2013 Q3 208,135 28.965 $ 6,028,651 $ 6,933 30.835 $ 213,779 $ 215,068 29.025 $ 6,242,430 $ 14,370,073 2013 Q4 245,280 31.669 $ 7,767,674 $ 7,635 31.287 $ 238,875 $ 252,915 31.657 $ 8,006,549 $ 14,117,158 2014 Q1 166,893 30.558 $ 5,099,966 $ 825,867 32.019 $ 26,443,416 $ 992,760 31.773 $ 31,543,382 $ 13,124,398 2014 Q2 131,559 35.536 $ 4,675,120 $ 274,221 34.988 $ 9,594,531 $ 405,780 35.166 $ 14,269,651 $ 12,718,618 2014 Q3 33,673 37.305 $ 1,256,154 $ 511,770 37.528 $ 19,205,473 $ 545,443 37.514 $ 20,461,628 $ 12,173,175 2014 Q4 134,229 37.458 $ 5,027,936 $ 5,287 37.704 $ 199,339 $ 139,516 37.467 $ 5,227,275 $ 12,033,659 2015 Q1 127,691 40.080 $ 5,117,817 $ 7,453 40.979 $ 305,415 $ 135,144 40.129 $ 5,423,232 $ 11,898,515 2015 Q2 113,944 38.571 $ 4,394,880 $ 563,528 36.037 $ 20,307,897 $ 677,472 36.463 $ 24,702,777 $ 11,221,043 2015 Q3 159,466 36.300 $ 5,788,536 $ 821,605 36.237 $ 29,772,866 $ 981,071 36.248 $ 35,561,402 $ 10,239,972 2015 Q4 323,572 32.194 $ 10,417,194 $ 2,066,572 36.179 $ 74,766,555 $ 2,390,144 35.640 $ 85,183,749 $ 7,849,828 2016 Q1 530,998 28.472 $ 15,118,628 $ 128,910 35.469 $ 4,572,266 $ 659,908 29.839 $ 19,690,894 $ 7,189,920 2016 Q2 342,592 32.385 $ 11,094,842 $ 1,894,065 33.087 $ 62,669,208 $ 2,236,657 32.980 $ 73,764,050 $ 4,953,263 2016 Q3 242,884 36.871 $ 8,955,279 $ 3,730,095 34.220 $ 127,643,733 $ 3,972,979 34.382 $ 136,599,012 $ 980,284 2016 Q4 321,862 28.774 $ 9,261,193 $ 23,869 30.426 $ 726,227 $ 345,731 28.888 $ 9,987,420 $ 634,553 Jan-17

• $
• $

6,571 32.850 $ 215,860 $ 6,571 32.850 $ 215,860 $ 17,493,429 Total DRIP / DSPP: 36,161,530 25.270 $ 913,784,973 $

Investor Presentation, March 2017

Exhibit 3: DRIP/DSPP and Equity Shelf Program (ESP) Activity (cont’d)

43

ATM/ESP Program Program Settlement Year / Month Total Shares Average Price (Net) Gross Proceeds 1) $100MM 2009 1,412,835 $17.16 24,250,810 $ 2010 3,786,565 $19.99 75,699,809 Program #1 Total 5,199,400 $19.22 99,950,620 $ 2) $140MM 2010 3,078,808 $21.67 66,712,751 $ 2011 1,419,149 $22.61 32,093,672 2012 758,719 $21.27 16,135,656 Program #2 Total 5,256,676 $21.87 114,942,079 $ 3) $245MM 2012 2,639,643 $24.10 63,613,501 $ 2013 983,766 $28.29 27,827,048 Program #3 Total 3,623,409 $25.24 91,440,548 $ 4) $250MM 2013 5,520,047 $30.87 170,392,847 $ 2014 1,848,170 $34.33 63,451,652 Program #4 Total 7,368,217 $31.74 233,844,499 $ 5) $500MM 2016 655,635 $31.10 20,392,064 $ 2017 227,453 $31.12 7,079,388 $ Program #5 Total 883,088 $31.11 27,471,452 $ ATM/ESP Grand Totals 22,330,790 $24.19 540,177,746 $