Investor Presentation August 2018 Forward-looking Statements and - - PowerPoint PPT Presentation

Investor Presentation

August 2018

Investor Presentation, August 2018

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 (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 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 June 30, 2018, unless specifically stated otherwise. We assume no duty to update or supplement the information provided.

Omega Overview

Investor Presentation, August 2018

Omega Overview: Key Credit Highlights

4

Financial Strength Portfolio Strength

◼ Strong core portfolio TTM rent coverage of 1.69x (EBITDARM) and 1.33x (EBITDAR) at

3/31/2018

◼ Geographic and operator diversification with 67 operators across 41 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. Pro Forma EBITDA of 5.26x (2Q 2018) (1) ◼ Consistent and stable free cash flow with strong fixed charge coverage of 4.00x (2Q 2018) (1) ◼ No secured borrowing, all $10 billion+ of assets are unencumbered ◼ Minimal short-term debt maturities ◼ Positive ratings trajectory with history of upgrades and commitment to investment grade

profile

◼ Significant liquidity with $950 million of cash and credit facility availability at 8/31/2018

Experienced Management Team

◼ Senior management team with average tenure over 17 years ◼ Proven ability to execute on strategies ◼ Proven ability to handle troubled assets

1) See Q2 2018 Supplemental for detailed calculation

Investor Presentation, August 2018

Omega Overview: Facility and Investment Overview at June 30, 2018

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◼

Omega is the largest SNF-focused REIT

◼

As of June 30, 2018, Omega’s portfolio consisted of 923 (1) operating facilities

◼

Completed approximately $530 million of new investments (including CAPEX) in 2017, and $199 million through 2Q 2018

◼

In 2017, completed 59 asset dispositions totaling over $290 million of net proceeds; completed 61 dispositions through 2Q 2018 totaling $311 million in proceeds Facility Investment Statistics Rent/Interest Statistics (2)

Skilled Nursing/Transitional Care, 83% Senior Housing, 17% Rental Property 87.7% Direct Financing Leases 0.2% Mortgage Notes 7.7% Other 4.4%

1) Excludes facilities which are non-operating, closed and/or not currently providing patient services 2) 3 Months ended June 30, 2018

Investor Presentation, August 2018

Financial Overview: Annual Shareholder Returns

6 1/1/2004 to 12/31/2017 OHI Share Price: 195.2% RMZ Index: 97.7% Quarterly Dividends as of 8/15/2018 1 Year Total Growth: 3.1% 3 Year Total Growth: 20.0% 5 Year Total Growth: 40.4% 1/1/2004 to 12/31/2017 Real Estate Investments: 18.8% Operating Revenue: 18.4% Adjusted FFO per Share: 10.3% OHI Share Price: 8.0% Dividend Yield at $0.66/Share Per Quarter 8.0%

(based on closing price on 8/28/2018 of $32.91)

Omega Share Price Growth, 12/2002-8/28/2018 Compounded Annual Growth Rates Total Growth Percentages

Investor Presentation, August 2018

24.3% 65.2% 277.1% 32.2% 51.2% 153.5%

0% 50% 100% 150% 200% 250% 300%

3 Yr. Returns 5 Yr. Returns 10 Yr. Returns Omega Peers

Financial Overview: Annual Shareholder Returns (cont’d)

7 Total Return (1) Ann. Equiv. Ranking (1) 3 Year: 24.3% 7.5% 12th 5 Year: 65.2% 10.6% 8th 10 Year: (2) 277.1% 14.2% 2nd

1) Source of Total Returns and Ranking: KeyBanc Capital Markets The Leaderboard, August 31, 2018 2) Ranked 19th among all 115 publicly traded equity REITs with at least 10 years of return history. Source: KeyBanc Capital Markets The Leaderboard, August 31, 2018 3) Source: KeyBanc Capital Markets The Leaderboard, August 31, 2018. Peer returns are simple average of returns of NHI, HR, LTC, SABRA, VTR, WELL, and HCP

Shareholder Returns Through 8/31/2018 Dividends per Share and Return of Capital % Omega's Total Returns vs Healthcare REIT Averages (3)

(Years ending 8/31/2018)

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 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% 2017 2.54 1.57 0.93 0.04 61.8% 36.6% 1.6% 10.96 $ 8.04 $ 2.81 $ 0.11 $ 73.4% 25.6% 1.0% AVG.

1) Rounded to two decimals

Investor Presentation, August 2018

Omega Overview: Quarterly Highlights

8 3Q 2018

➢ Declared a quarterly common stock dividend rate of $0.66 per share ➢ Transitioned 14 Orianna facilities to existing operators for annual contractual rent of $12.5 million

2Q 2018

➢ Declared a quarterly common stock dividend rate of $0.66 per share ➢ Completed $77 million in new investments ➢ Invested $54 million in capital renovation and construction-in-progress projects ➢ Sold 47 assets for consideration of $137.6 million, a $25 million seller note, and $53.1 million in buyer

assumed debt 1Q 2018

➢ Increased its quarterly common stock dividend rate to $0.66 per share ➢ Completed $30 million in new investments ➢ Invested $38 million in capital renovation and construction-in-progress projects ➢ Sold 14 facilities and had 3 mortgage loans paid off totaling $98.4 million in net cash proceeds

4Q 2017 ➢ Sold 34 facilities and had a mortgage loan repaid totaling $189 million in net cash proceeds ➢ Completed $40 million in new investments ➢ Invested $31 million in capital renovation and construction-in-progress projects ➢ Increased our quarterly common stock dividend rate to $0.65 per share 3Q 2017 ➢ Completed $203 million in new investments ➢ Sold 4 facilities totaling $12 million in net cash proceeds ➢ Transitioned Orianna’s Texas portfolio to an existing operator ➢ Invested $36 million in capital renovation and construction-in-progress projects ➢ Increased our quarterly common stock dividend rate to $0.64 per share

Investor Presentation, August 2018

Omega Overview Proven Track Record of Growth and New Investments

◼

Continue to pursue selective investments ➢ 2004 - 2007 Investments: $686 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 ➢ 2017 New Investments: $530 million ➢ 2018 New Investments (Through 2Q): $199 million ➢ Additionally, the Company has approximately $280 million committed to its operators for capital improvement and new construction projects to be completed over the next 24-36 months (as of 6/30/2018)

◼

Continue to pursue accretive transactions

◼

Leverage existing 67 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 $950 million of combined cash and credit facility availability as of August 28, 2018

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 $6.4 billion (2)

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Demographics to Drive Growth

Investor Presentation, August 2018

Industry Overview: Demographic Tailwinds Expected to Drive Occupancy Growth for Next 20 Years

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➢ The SNF industry has been battling with unfavorable demographics for more than a decade with the aging of the "baby bust" generation ➢ Based on natality and SNF utilization information, we believe the industry is at the beginning of a 20+ year secular tailwind ➢ This belief is based on the following (as the subsequent slides illustrate): ▪ Medicare utilization of SNFs materially increases from 75 years old ▪ This utilization increases through their late 80's ▪ "Baby boomers" started turning 75 in 2016 ▪ The age 75+ cohort will grow on both an absolute and relative basis through at least 2040 as the baby boomers replace the baby bust generation within the 75+ population ➢ The percentage of hospital discharges to SNFs has remained steady in recent years, suggesting SNFs are in a prime position to benefit from this demographic wave

Investor Presentation, August 2018

Industry Overview: Significant Increase in SNF Utilization by Those Aged 75+

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Source: Avalere analysis of Medicare Part A 100% Standard Analytic File (SAF) for 2016

1,000 2,000 3,000 4,000 5,000 6,000 7,000

65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 SNF Days per 1,000 Beneficiaries

SNF Utilization by Age – 2016

Average Annual Increase in SNF Utilization by Age (Per 1,000 Beneficiaries) From age 65 to 75 99 days per year From age 75 to 85 247 days per year

Investor Presentation, August 2018

Industry Overview: Baby Boomers Started Turning 75 in 2016

13

Source: www.cdc.gov 1,500 2,000 2,500 3,000 3,500 4,000 4,500

Births (000’s)

U.S. Birthrates, 1909 to 1980

1928 to 1940

• Avg. 2,476

1941 to 1964

• Avg. 3,767

Investor Presentation, August 2018

Industry Overview: Continued Significant Growth of 75+ as Percentage of Total U.S. Population

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Note: Percentages represent percentage of total US population Source: U.S. Census 2010, Weldon Cooper Center for Public Service, Demographics Research Group

4.0% 5.5% 5.7% 4.8% 3.0% 4.4% 5.1% 4.5% 2.4% 3.0% 4.1% 4.3% 1.9% 1.9% 2.8% 3.3% 1.8% 1.9% 2.1% 2.9% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 2010 2020 2030 2040

Age Cohort by Year

Age 65+ Cohorts as a Percentage of the Total U.S. Population

65-69 70-74 75-79 80-84 85+

75+ 6.1% (18.8MM) 75+ 6.8% (22.7MM) 75+ 9.0% (32.5MM) 75+ 10.5% (40.2MM)

Investor Presentation, August 2018

Industry Overview: Percentage of Hospital Discharges to SNFs has Remained Steady in Recent Years

15 19.3% 19.8% 20.2% 20.3% 20.0% 16.4% 16.8% 16.8% 17.0% 17.2% 6.0% 6.1% 6.2% 6.2% 6.1% 3.3% 3.4% 3.4% 3.3% 3.3% 2.7% 2.8% 2.9% 3.0% 3.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2012 2013 2014 2015 2016

Medicare FFS Hospital Discharge Destinations, 2012-2016

(excludes discharges back to patients’ homes without home health)

Source: Avalere analysis of Medicare Standard Analytic File (SAF) for the period 2012 – 2016 Skilled Nursing Facilities Home Health Care Other (Incl. IRF & LTACH) Death Hospice

SNF Industry and Reimbursement Overview

Investor Presentation, August 2018

Attractive Fundamentals: Primary PAC Site

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

Medicare Acute Hospital Discharges 43% Sent to Post-Acute SNFs 47% HHAs 41% IRFs 9% LTACHs 3%

Source: MedPAC Data Book, June 2018

Investor Presentation, August 2018

Growth in SNF Census, by Age Cohort

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<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, August 2018

Dec '09 Dec '10 Dec '11 Dec '12 Dec '13 Dec '14 Dec '15 Dec '16 Dec '17 Certified Beds 1,667k 1,670k 1,665k 1,667k 1,666k 1,663k 1,662k 1,662k 1,662k Patients in Certified Beds 1,400k 1,394k 1,384k 1,383k 1,372k 1,368k 1,357k 1,347k 1,337k Certified Facilities 15.7k 15.7k 15.6k 15.7k 15.7k 15.6k 15.7k 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

Industry Overview: Attractive Fundamentals

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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 (2009-2017)

Investor Presentation, August 2018

2009 2010 2011 2012 2013 2014 2015 2016 2017 OHI Occ. % 84.6% 84.1% 84.0% 83.4% 83.3% 84.5% 82.5% 82.2% 82.2% Industry Occ. % 84.0% 83.4% 83.1% 82.9% 82.3% 82.3% 81.6% 81.1% 80.5% 65.0% 70.0% 75.0% 80.0% 85.0% 90.0% 95.0%

SNF Industry and Omega Portfolio Occupancy Trends 2009 through 2017

OHI Occ. % Industry Occ. %

Industry Overview: Attractive Fundamentals

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➢ Occupancy Rate Trends

Source: Industry data compiled by AHCA Research Department from CMS OSCAR/CASPER survey data (2009-2017)

1) 2015 - 2017 OHI occupancy reflects inclusion of legacy Aviv REIT facilities

(1)

Investor Presentation, August 2018

Industry Overview: Reimbursement Outlook

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Medicare

➢

Growth in alternative payment models expected to continue under new DHHS/CMS leadership, but at a slower pace and with an emphasis on voluntary participation.

➢

Inflationary increases for fee-for-service PPS rates fixed at 2.4% effective October 1, 2018, due to February 2018 budget legislation that permanently repealed Part B therapy caps. Such increases to be reduced, pursuant to 2014 PAMA legislation, by Value-Based Purchasing discounts, net of rehospitalization performance rebates, projected to average 0.6% for Omega’s portfolio.

➢

Fee-for-service payment reform commencing October 2019 will eliminate PPS RUG-based payments and use alternative Patient-Driven Payment Model (PDPM), effectively reducing payments for therapy services while enhancing payments for complex nursing care and incentivizing lower lengths of stay; overall revenue neutrality expected but margin increases should result from significant reduction in required MDS patient care assessments and use of cost-effective group and concurrent therapy protocols.

Medicaid

➢

2017 Congressional legislative efforts to repeal/replace ACA and incorporate Medicaid payment reform failed, leaving existing SNF funding under federal matching program intact.

➢

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 March 31, 2018)

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, August 2018

Portfolio Overview: Summary

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➢ As of June 30, 2018 ▪ 923 operating healthcare facilities, located in 41 states and the UK, operated by 67 third- party operators ▪ Gross real estate investments of approximately $8.6B ➢ 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, August 2018

Facility Map at June 30, 2018

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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 Avenue development project

(No. of Operators  No. of Facilities)

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

319 MS 18 NM 57 WI 36 NV 952 CA 418 WA 48 ID 2 9 AZ 12114 TX 314 CO 29 IA 417 MO 211 AR 112 LA 11 IL 665 IN 1062 OH 331 KY 738 TN 29 AL 1192 FL 411 GA 632 NC

411 WV

642 PA 210 MA 13 NH 11 VT 14 RI 212 MD 215 KS 49 OK MI 353 WY ND SD 11 NY NJ ME 36 OR 221 SC 618 VA 12 MT 17 NE 13 MN 16 CT

255

United Kingdom

Operators: 67 (1) Facilities: 923 (2) States: 41 (3) Foreign Countries: 1 (UK)

UT

Investor Presentation, August 2018

Texas, 9.6% Florida, 9.5% Michigan, 7.9% Ohio, 7.4% Indiana, 6.8% California, 5.8% Pennsylvania, 5.4% Tennessee, 3.8% Virginia, 3.3% North Carolina, 3.1% United Kingdom, 4.7% Remaining 31 states, 32.7%

Portfolio Overview: Omega Geographic Diversification as of June 30, 2018

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Contractual Rent/Interest Concentration by Location

($ in thousands) As of June 30, 2018

• No. of

Properties (1) Investment (1) % Investment % Occupancy (3)(4) Texas 118 830,726 $ 9.6% 70.0% Florida 93 823,540 9.5% 88.2% Michigan 53 681,344 7.9% 86.1% Ohio 62 635,090 7.4% 83.3% Indiana 65 583,112 6.8% 80.7% California 54 497,584 5.8% 92.8% Pennsylvania 43 463,951 5.4% 88.1% Tennessee 38 324,770 3.8% 72.0% Virginia 18 285,063 3.3% 78.1% North Carolina 32 270,254 3.1% 82.2% Remaining 31 states (2) 302 2,821,396 32.7% 82.8% 878 8,216,830 $ 95.3% United Kingdom 55 407,605 4.7% 91.8% Total 933 8,624,435 $ 100.0% 82.4% 1) Excludes facilities which are non-operating, closed and/or not currently providing patient services 2) 2Q 2018 contractual rent and interest annualized (also includes mezzanine and term loan interest) 3) 42 Orianna facilities with annual contractual revenue of approximately $47.3M and 14 Preferred Care facilities with annual contractual revenue of approximately $3.2M are excluded from amounts shown above due to their bankruptcy status; all facilities are being transitioned

Investor Presentation, August 2018

Ciena, $88.8MM Communicare, $61.4MM Genesis , $57.3MM Signature, $50.1MM Saber , $40.8MM HHC, $35.2MM Guardian , $31.MM Maplewood , $30.4MM Daybreak, $29.7MM Diversicare, $28.9MM Remaining Operators (3), $316.6MM

Portfolio Overview: Omega Operator Diversification as of June 30, 2018

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Contractual Rent/Interest Concentration by Operator

($ in thousands)

Annualized Contractual Rent/Interest (1)(2) Operator Total ($000's) % of Total Properties (1) 1 Ciena 88,767 $ 11.5% 74 2 Communicare 61,389 8.0% 47 3 Genesis 57,259 7.4% 50 4 Signature 50,064 6.5% 59 5 Saber 40,767 5.3% 40 6 HHC 35,234 4.6% 44 7 Guardian 31,036 4.0% 32 8 Maplewood 30,450 4.0% 14 9 Daybreak 29,666 3.9% 57 10 Diversicare 28,866 3.7% 35 Remaining Operators (3) 316,642 41.1% 415 770,140 $ 100.0% 867 (1) (2) (3)

Excludes facilities which are non-operating, closed and/or not currently providing patient services 2Q 2018 contractual rent and interest annualized (also includes mezzanine and term loan interest) 42 Orianna facilities with annual contractual revenue of approximately $47.3M and 14 Preferred Care facilities with annual contractual revenue of approximately $3.2M are excluded from amounts shown above due to their bankruptcy status; all facilities are being transitioned

Investor Presentation, August 2018

Portfolio Overview: Capital Investment Summary as of June 30, 2018

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Commitment Year Location # of Projects Property Type Initial Cash Yield Beds / Units Investment Commitment Inception-to-Date Funding (1) Remaining Commitment Estimated In Service Date Estimated Additional Quarterly Rent (2) 2014 Middleburg, FL 1 SNF 9.00% 120 18,750,000 11,486,296 7,263,704 Q1 2019 258,442 2015 2nd Avenue, NY 1 ALF / MC 7.00% (4) 214 287,711,161 175,459,998 112,251,163 Q4 2019 3,070,550 2015 Polk County, FL 1 SNF 9.00% 120 19,022,292 17,406,552 1,615,740 Q3 2018 391,647 2016 Pensacola, FL 1 SNF 8.75% 90 19,398,795 1,834,960 17,563,835 Q4 2019 40,140 2016 Viera, FL 1 SNF 8.75% 131 26,500,000 12,911,297 13,588,703 Q1 2019 282,448 2017 Southport, CT 1 ALF 9.00% 98 41,749,139 12,037,194 29,711,945 Q2 2019 270,837 2017 Lake City, FL 1 SNF 8.75% 113 23,600,000 6,510,889 17,089,111 Q4 2018 142,426 2017 Mocksville, NC 1 SNF 9.25% 108 12,200,000 6,120,801 6,079,199 Q1 2019 141,544 2018 Hillsboro, TX 1 SNF 9.25% 105 9,450,000 1,642,481 7,807,519 Q2 2019 37,982 2018 Thibodaux, LA 1 SNF 7.00% 110 21,000,000 2,746,111 18,253,889 TBD 48,057 Leased Facilities 10 1,209 479,381,387 $ 248,156,579 $ 231,224,808 $ 4,684,073 $ 2015 Watkins, VA 1 ALF 8.75% 48 11,700,000 11,540,009 159,991 Q3 2018 2017

• St. Clair Shores, MI

1 SNF 9.50% 101 17,000,000 10,814,151 6,185,849 Q1 2019 2017 Westland, MI 1 SNF 9.50% 120 10,000,000 4,433,371 5,566,629 Q2 2019 Mortgages (3) 3 269 38,700,000 $ 26,787,531 $ 11,912,469 $ Additional CapEx (excluding New Builds) (3) 43 211,927,323 175,105,756 36,821,567 Total: 56 1,478 730,008,710 $ 450,049,866 $ 279,958,844 $

1) Includes land and finance costs 2) Inception-to-Date Funding multiplied by Initial Cash Yield 3) Current quarter revenue already reflects fundings to date 4) Cash yield increases to 8% beginning in year 2

Investor Presentation, August 2018

Period Trailing Twelve Months (TTM) Period Trailing Twelve Months (TTM) Period Trailing Twelve Months (TTM) Period Trailing Twelve Months (TTM) Ending EBITDARM EBITDAR Ending EBITDARM EBITDAR Ending EBITDARM EBITDAR Ending EBITDARM EBITDAR 03/31/02 1.5 1.1 03/31/07 2.1 1.7 03/31/12 2.1 1.7 03/31/17 1.69 1.33 06/30/02 1.6 1.1 06/30/07 2.2 1.7 06/30/12 2.0 1.6 06/30/17 1.71 1.34 09/30/02 1.6 1.1 09/30/07 2.2 1.8 09/30/12 2.0 1.5 09/30/17 1.72 1.35 12/31/02 1.5 1.1 12/31/07 2.2 1.8 12/31/12 2.0 1.5 12/31/17 1.71 1.34 03/31/03 1.5 1.1 03/31/08 2.2 1.8 03/31/13 2.0 1.5 03/31/18 1.69 1.33 06/30/03 1.5 1.1 06/30/08 2.1 1.7 06/30/13 1.9 1.5 09/30/03 1.5 1.1 09/30/08 2.1 1.7 09/30/13 1.9 1.5 12/31/03 1.5 1.1 12/31/08 2.0 1.6 12/31/13 1.9 1.4 3/31/04 1.6 1.1 3/31/09 2.0 1.6 3/31/14 1.8 1.4 6/30/04 1.7 1.2 6/30/09 2.0 1.6 6/30/14 1.8 1.4 9/30/04 1.8 1.3 9/30/09 2.0 1.6 9/30/14 1.8 1.4 12/31/04 1.9 1.4 12/31/09 2.0 1.6 12/31/14 1.8 1.4 03/31/05 1.8 1.4 03/31/10 2.0 1.6 03/31/15 1.78 1.38 06/30/05 1.9 1.4 06/30/10 2.0 1.6 06/30/15 1.80 1.41 09/30/05 1.9 1.5 09/30/10 2.1 1.6 09/30/15 1.79 1.40 12/31/05 2.0 1.5 12/31/10 2.1 1.7 12/31/15 1.78 1.40 3/31/06 2.0 1.6 3/31/11 2.2 1.8 3/31/16 1.75 1.37 6/30/06 2.1 1.6 6/30/11 2.3 1.8 6/30/16 1.72 1.34 9/30/06 2.1 1.6 9/30/11 2.3 1.8 9/30/16 1.68 1.31 12/31/06 2.1 1.7 12/31/11 2.2 1.8 12/31/16 1.69 1.33

Portfolio Overview: Omega’s Strong Portfolio Rent Coverage

28

*

* Prior to 2015, Rent Coverages were reported to one decimal.

EBITDARM EBITDAR RUG-IV start →

(10/1/2010)

 RUG-IV adjustment

(10/1/2011)

Investor Presentation, August 2018

Portfolio Overview: Minimal Near Term Expirations as of June 30, 2018

29

Minimal Near Term Expirations

• Approximately 93% of portfolio expirations occur after 2022
• Combined TTM EBITDAR coverage of lease and mortgages expiring through 2022 is 1.11x (1)

Note: Expiration percentages based on 2Q 2018 contractual rents and interest, annualized 1) Operator coverage, TTM March 31, 2018

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Thereafter

0.2% 0.3% 1.1% 0.8% 4.8% 3.0% 4.8% 2.6% 1.9% 17.1% 63.4%

Financial Overview

Investor Presentation, August 2018

Financial Overview: Consistent Financial Policy

31

2Q 2018 (unless otherwise noted) ➢ Conservative capitalization ▪ Debt to adjusted proforma EBITDA ratio: 5.3x (see 2Q 2018 Financial Supplement (1) ) ➢ Significant liquidity ▪ $1.25B revolving credit facility: $940 million of availability (as of August 31, 2018) ▪ Well-laddered debt maturities: No material maturities until 2022 (assuming allowable credit facility extensions) ➢ Financial flexibility ▪ Capital markets access ▪ Minimize encumbered assets 0.0% of Total Assets are encumbered ▪ Funded Debt to Total Asset Value: 50% (determined pursuant to bond covenants) ▪ Adjusted Fixed Charge Ratio >3.5x: 4.0x (see 2Q Financial Supplement (1) ) ➢ Dividend payout ratios (2) ▪ AFFO Payout Ratio: 86.5% (2Q 2018) ▪ FAD Payout Ratio: 98.1% (2Q 2018) ▪ 16 consecutive yearly dividend increases: $0.66 as of 3Q 2018 ($2.64 annualized)

1) Quarterly Financial Supplements are located in the Investor Relations tab at www.omegahealthcare.com 2) Historically, the Company has maintained AFFO and FAD payout ratios of less then 85% and 90%, respectively. The Company anticipates returning to similar historical levels post its strategic asset repositioning efforts. As an example, we recognize revenue from Orianna on a cash basis of accounting and recorded no revenue in the three months ended June 30, 2018. The timing and terms of the transition of the legacy Orianna portfolio may vary materially due to the bankruptcy process. The Company anticipates annual contractual rent or rent equivalents will likely be in a range of $32M to $38M once the transition of the legacy Orianna facilities is complete, and thereby decreasing payout ratios closer to historical levels.

Investor Presentation, August 2018

Financial Overview: Long-Term Growth Strategy

32

➢ Pursue selective acquisitions ➢ Leverage existing 67 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, August 2018

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Acquisitions 114,287 245,550 196,000 39,500 112,135 269,393 588,718 187,696 468,153 561,190 131,689 406,953 972,190 364,246 52,497 Mortgages 6,500 61,750

• 345

70,000 3,509 20,656 130,041 11,969 3,379 412,307 47,696 31,482 11,000 44,200 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 59,424 33,830 CIP (2)

• 62,197

78,432 58,228 Other (3)

• 28,000
• 221,367

16,625 10,015

• 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

33

($ in thousands)

Investments - 2004 through June 30, 2018

Over $5.0 billion of 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

Totals 126,323 311,121 202,805 46,032 196,818 291,511 637,777 364,633 509,558 620,858 565,510 506,944 1,328,269 529,727 198,770

Investor Presentation, August 2018

$87 $110 $136 $160 $170 $179 $251 $292 $350 $419 $505 $744 $901 $908

$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 2017

$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 $9.09

$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 2017

Financial Overview: Attractive Growth Profile

34

Core Operations Revenue (1) Gross Investments (1)

($ in billions) ($ in millions)

$198.8M YTD through 2Q:18 $440.1M YTD through 2Q:18

1) See our 2Q 2018 Financial Supplement posted on our website, www.omegahealthcare.com

Investor Presentation, August 2018

Financial Overview: Attractive Growth Profile

35

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 I “Adjusted EBITDA Reconciliation”) 2) See the Funds from Operations walk-down in our 2Q 2018 Earnings Release and Supplement

($ in millions) ($ in millions)

$422.2M YTD through 2Q:18 $320.4M YTD through 2Q:18

$101 $127 $145 $159 $170 $236 $279 $334 $402 $487 $716 $870 $882 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 $52 $77 $91 $109 $123 $156 $193 $236 $299 $363 $564 $689 $683 $0 $100 $200 $300 $400 $500 $600 $700 $800 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Investor Presentation, August 2018

3.1x 3.3x 3.5x 4.0x 4.1x 4.7x 5.1x 4.5x 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 2010 2011 2012 2013 2014 2015 2016 2017 4.3x 4.8x 4.7x 4.4x 4.6x 4.5x 4.7x 4.9x 0.7x 0.9x 0.9x 0.6x 0.5x 0.3x 0.1x 0.1x 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 2010 2011 2012 2013 2014 2015 2016 2017

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

Financial Overview: Conservative Capitalization

36

1) Adjusted annualized proforma 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 (See “Selected Credit Statistics” in our 1Q 2018 Financial Supplement posted on our website, www.omegahealthcare.com) 2) See Leverage Reconciliation in Exhibit 1 to this presentation 3) Reflects adjusted EBITDA divided by the sum of cash interest and preferred dividends, if any (See Exhibit I: Non-GAAP Financial Reconciliation: Adjusted EBITDA Reconciliation for calculation )

Leverage (1) (2) Cash Fixed Charge Coverage (3) Target Funded 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

5.3x for 2Q:18 Annualized 4.0x for 2Q:18

Investor Presentation, August 2018

$20M Term Loan $310M Drawn $700M 4.375% Notes $400M 4.95% Notes $400M 4.50% Notes $600M 5.25% Notes $700M 4.50% Notes $550M 4.75% Notes

$940M Available

$425M Term Loan $130M $100M $250M Term Loan

$0 $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 2020 2021 2022 2023 2024 2025 2026 2027 2028 $ Millions

• $1.8B unsecured revolving credit

and term loan facilities

➢

$1.25B revolver with a May 2021 maturity, and an additional one year option

➢

$655MM term loans

➢

$940M available as of August 31, 2018

• $250MM unsecured term loan
• No near term bond maturities
• No secured debt
• 79% of debt is fixed rate at 8/31/2018

Financial Overview: Conservative Capitalization

37

Debt Maturity Schedule at 8/31/2018

$1.25B Revolving Credit Facility: $310M drawn at 8/31/2018

$20MM

Credit Facility Term Loans

(1) 1) Represents the £100 million term loan at the spot exchange rate of approximately 1.30 at 8/31/2018

Investor Presentation, August 2018

Financial Covenant Review

• Strong balance sheet with significant cushion
• n all covenants
• Leverage ratios are key covenants

➢ Defined as “Funded Debt to Total

Asset Value” and “Unsecured Debt to Total Asset Value”, both not to exceed 60%, were 50% and 52%, respectively, at 2Q 2018

• Debt to Adjusted proforma EBITDA is 5.26x

for 2Q 2018 (2)

• No secured debt

Financial Overview: Conservative Capitalization

38 Key Bond Covenants (1) Key Credit Facility Covenants (1)

1) Covenants are based on calculations as defined in the Company’s Credit Agreement 2) See “Selected Credit Statistics” in our 2Q 2018 Financial Supplement posted on our website, www.omegahealthcare.com (1) Covenants are based on calculations as defined in the Company’s Senior Note Indentures

Consolidated

Quarter Ending Leverage Ratio Secured Leverage Ratio Unsecured Leverage Ratio Fixed Charge Cov. Ratio Unsecured Interest Cov. Ratio Current Tangible Net Worth Requirement <= 60% <=30% <= 60% >=1.50 to 1 >=2.00 to 1 >$3,440MM September 30, 2017 54% 1% 55% 4.8 3.8 Pass December 31, 2017 51% 1% 53% 4.6 3.9 Pass March 31, 2018 52% 1% 53% 4.5 3.9 Pass June 30, 2018 50% 0% 52% 4.4 3.8 Pass Status Pass Pass Pass Pass Pass Pass Quarter Ending Debt / Adj. Total Assets Unencumbered Assets / Unsecured Debt Secured Debt /

• Adj. Total Assets

Requirement <= 60% >= 150% <= 40% September 30, 2017 50% 200% 0% December 31, 2017 50% 200% 0% March 31, 2018 51% 197% 0% June 30, 2018 50% 201% 0% Status Pass Pass Pass

Investor Presentation, August 2018

Financial Overview: Financial Flexibility

39

Capital Markets Accessibility

• Seasoned market issuer
• Investment grade senior unsecured notes rated BBB- by S&P and Fitch; Baa3 by Moody’s

5 2 7 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Senior Notes 260,000 225,000

• 775,000
• 400,000
• 650,000

1,300,000 700,000 700,000

• 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 59,796 55,268

• 200,000

400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000

Totals

5,010,000 118,488 2,610,699 7,739,186

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)

Investor Presentation, August 2018

Financial Overview: Financial Flexibility (as of 2Q 2018)

40

Minimize Encumbered Assets

• $10B of total undepreciated assets (100% unencumbered)
• $1.25B unsecured revolving credit facility
• $905MM unsecured term loans
• $3.35B of long-term bonds

Encumbered Assets as % of Total Gross Assets

(000's) 2Q 2018 Actual Total Assets: 8,574,139 $ Accumulated Depreciation: 1,475,463 Total Undepreciated Assets: 10,049,602 Encumbered Assets:

• Encumbered Assets to Total Gross Assets:

0%

Investor Presentation, August 2018

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 AFFO Payout Ratio Total Yearly Dividend ($)

Yearly Dividends and AFFO Payout Ratio

2003 through 2Q 2018 (1)

Dividends Paid Dividends Annualized AFFO Payout %

Financial Overview: Dividend History

41

78.9% (2)

1) As per page 12 in our 4Q 2017 Financial Supplement 2) Reflects the unweighted AFFO Payout average from 2003 through 2Q 2018

Historically Strong Dividend Growth with Conservative AFFO Payout Ratios

• 16 consecutive yearly increases
• Increased dividend and AFFO during the 2007-9 financial crisis
• Confident in the sustainability of the current quarterly dividend rate of $0.66 per share

Exhibits

Investor Presentation, August 2018

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

43

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 2018 Net Income.......................................................................................................................... $ 69,374 $ 78,137 $ 82,111 $ 58,436 $ 52,606 $ 120,698 $ 172,521 $ 221,349 $ 233,315 $ 383,367 $ 104,910 $ 177,269 $ 169,919 Depreciation and amortization......................................................................................... 36,056 39,890 44,694 84,623 100,337 112,983 128,646 123,257 210,703 267,062 287,591 140,343 139,970 Depreciation and amortization unconsolidated joint venture............................................ - - - - - - - - - 1,107 6,630 3,316 3,123 Interest expense - net & refinancing costs......................................................................... 44,092 39,746 39,075 90,602 86,899 106,096 92,048 126,869 183,208 175,561 219,976 119,878 100,470 Provision for income taxes................................................................................................ (7) (72) - - - - - - 1,211 1,405 3,248 1,691 1,381 EBITDA.......................................................................................................................... 149,515 157,701 165,880 233,661 239,842 339,777 393,215 471,475 628,437 828,502 622,355 442,497 414,863 Nursing home revenues.................................................................................................... - (24,170) (18,430) (7,336) - - - - - - -

• -

Nursing home expenses.................................................................................................... - 27,601 20,632 7,998 653 - - - - - -

• -

Litigation/contractual settlement...................................................................................... - (526) (4,527) (1,111) - - - - - - (10,412) (10,412) - Acquisition costs............................................................................................................... - - 1,561 1,554 1,204 909 245 3,948 57,525 9,582 (22) (22) - (Gain) loss on assets sold - net.......................................................................................... (1,993) (12,292) (753) 4 (1,670) (11,799) 1,151 (2,863) (6,353) (50,208) (53,912) (6,798) 14,609 (Gain) loss on assets sold - unconsolidated joint venture.................................................. - - - - - - - - - - -

• (640)

Revenue from prepayment penalty/administration fee..................................................... - - - - - - - - - - -

• -

Provisions for impairment on equity securities.................................................................. - - - - - - - - - - -

• -

Gain from sale of Sun common stock................................................................................ - - - - - - - - - - -

• -

Advocat non-cash gain on investment restructuring......................................................... - - - - - - - - - - -

• -

Restatement expense....................................................................................................... - - - - - - - - - - -

• -

Lease expiration expense.................................................................................................. - - - - - - - - - - -

• -

Adjustment of derivatives to fair value.............................................................................. - - - - - - - - - - -

• -

Advocat one-time straight line adjustment....................................................................... (5,040) - - - - - - - - - -

• -

One-time cash revenue..................................................................................................... - (702) - - - (536) (1,405) - - - (2,394) (1,881) - Unrealized gain on warrents............................................................................................ - - - - - - - - - - -

• (1,602)

(Deduct) add back foreign currency gain (loss).................................................................. - - - - - - - - - - (311) (140) 7 One-time non-cash deferred mortgage interest income.................................................... - - - - - (236) - (585) - - -

• -

One-time buy-out of purchase option............................................................................... - - - - - - - - - - -

• 2,000

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............................................................................... 1,416 5,584 159 155 26,344 272 415 3,660 17,681 58,726 99,070 17,773 3,817 Provisions for real estate impairment of unconsolidated joint venture.............................. - - - - - - - - - - -

• 608

Impairment on direct financing leases.............................................................................. - - - - - - - - - - 198,199 3,309 15 Provisions for uncollectible mortgages, notes and A/R...................................................... - 4,248 3,935 - 6,439 - 2,141 2,723 7,871 9,845 14,580 1,768 8,363 Restricted Stock amortization expense............................................................................. 1,425 2,103 1,918 2,211 6,037 5,942 5,942 8,592 11,133 13,790 15,212 7,478 8,145 Adjusted EBITDA........................................................................................................... 145,027 $ 158,807 $ 170,375 $ 236,347 $ 278,849 $ 334,329 $ 401,704 $ 486,950 $ 716,294 $ 870,237 $ 882,365 $ 453,572 $ 450,185 $ Proforma Acquisition Income............................................................................................ 2,646 15,360 30,315 32,807 37,153 45,420 55,696 22,194 70,727 47,335 24,702 23,053 20,265 Proforma CIP Income........................................................................................................ - - - - - - - - - - 14,568 6,866 16,222 Incremental Revenue from Orianna Transitioned Assets................................................... - - - - - - - - - - 6,146

• 16,000

Incremental Revenue from Daybreak................................................................................ - - - - - - - - - - 9,528

• 2,909

Proforma Revenue from Asset Divestitures....................................................................... - - - - - - - - - - (5,052)

• (5,420)

Adjusted Proforma EBITDA (1)..................................................................................... 147,673 $ 174,167 $ 200,690 $ 269,154 $ 316,002 $ 379,749 $ 457,400 $ 509,144 $ 787,021 $ 917,572 $ 932,257 $ 483,491 $ 500,161 $ Cash Interest (2)............................................................................................................... 42,134 $ 37,745 $ 36,077 $ 67,282 $ 81,643 $ 95,822 $ 100,459 $ 119,153 $ 150,915 $ 170,516 $ 196,486 $ 96,763 $ 100,889 $ Preferred Dividends.......................................................................................................... 9,923 9,714 9,086 9,086 1,691

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

52,057 $ 47,459 $ 45,163 $ 76,368 $ 83,334 $ 95,822 $ 100,459 $ 119,153 $ 150,915 $ 170,516 $ 196,486 $ 96,763 $ 100,889 $ Adjusted EBITDA / Cash Fixed Charge coverage ratio...................................................... 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 4.5 x 4.7 x 4.5 x Adjusted Proforma EBITDA / Cash Fixed Charge coverage ratio...................................... 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 4.7 x 5.0 x 5.0 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. Six Months Ended, Year Ended December 31,

Investor Presentation, August 2018

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

44

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 2018 Funded Debt Revolving Line of Credit - secured.................................................................... 48,000 $ 63,500 $ 94,100 $

• $
• $
• $
• $
• $
• $
• $
• $
• $
• $

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

• 272,500

158,000 326,000 85,000 230,000 190,000 290,000 155,000 220,000 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
• $425M 2017 Term Loan..................................................................................
• 425,000

425,000 425,000 $100M GDP Term Loan...................................................................................

• 135,130

130,250 132,030 2015 OP Term Loan - unsecured......................................................................

• 100,000

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

• 250,000

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

• 180,890

279,558 335,711 280,425 237,881 56,204 54,955 53,666 54,315

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

1,995

• Subordinated Debt - unsecured (2)(5)..............................................................
• 20,000

20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Notes - unsecured (3)(4).................................................................................. 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 3,351,500 3,351,500 3,350,000 Total Funded Debt....................................................................................... 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 $ 4,625,296 $ 4,486,065 $ 4,497,030 $ Less: Cash on-hand.......................................................................................... (1,979) (209) (2,170) (6,921) (351) (1,711) (2,616) (4,489) (5,424) (93,687) (85,937) (21,031) (10,951) Adjusted Net Funded Debt.......................................................................... 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 $ 4,539,359 $ 4,465,034 $ 4,486,079 $ Secured Funded Debt (1)................................................................................. 48,000 63,500 253,454 180,890 279,558 335,711 280,425 237,881 236,204 54,955 53,666 54,315

• Unsecured Funded Debt (2)(3)(4)....................................................................

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 4,571,630 4,431,750 4,497,030 Less: Cash on-hand (1,979) (209) (2,170) (6,921) (351) (1,711) (2,616) (4,489) (5,424) (93,687) (85,937) (21,031) (10,951) Adjusted Net Funded Debt.......................................................................... 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 $ 4,539,359 $ 4,465,034 $ 4,486,079 $ Net Debt/Adjusted Proforma Annualized EBITDA (2)..................................... 3.6x 3.1x 3.7x 4.3x 4.8x 4.7x 4.4x 4.6x 4.5x 4.7x 4.9x 4.6x 4.5x Secured Funded Debt/Adjusted Proforma Annualized EBITDA (2)................. 0.3x 0.4x 1.3x 0.7x 0.9x 0.9x 0.6x 0.5x 0.3x 0.1x 0.1x 0.1x 0.0x Notes: All debt shown above excludes deferred financing related costs. 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, 2017, 2016, 2015, 2014, 2013, 2012 and 2011 excludes $0.4 million, $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 2007 excludes FIN 46 debt of $39 million. 4) The 2016 and 2017 unsecured note balance includes $3.0 million and $1.5 million, respectively of notes payable to a seller related to the purchase price consideration. (5) Subordinated debt for June 30, 2018 and 2017, excludes $0.3 million, $0.4 million of adjustments related to the acquisition date fair value premium, respectively. Six Months Ended Year Ended December 31,

Investor Presentation, August 2018

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

45

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 2008 3/31/2008 $17.36 6.7% 0.3639 $ 0.30 $ 82.4% 0.3612 $ 83.1% $1.41 - $1.43 6/30/2008 $16.65 7.2% 0.3816 $ 0.30 78.6% 0.3709 $ 80.9% 9/30/2008 $19.66 6.1% 0.3387 $ 0.30 88.6% 0.3079 $ 97.4% 12/31/2008 $15.97 7.5% 0.3702 $ 0.30 81.0% 0.3354 $ 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% 0.3550 $ 84.5% $1.47 - $1.50 6/30/2009 $15.52 7.7% 0.3714 $ 0.30 80.8% 0.3569 $ 84.1% 9/30/2009 $16.02 7.5% 0.3657 $ 0.30 82.0% 0.3529 $ 85.0% 12/31/2009 $19.45 6.2% 0.3604 $ 0.32 88.8% 0.3401 $ 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% 0.3704 $ 86.4% $1.60 - $1.68 6/30/2010 $19.93 6.4% 0.3652 $ 0.36 98.6% 0.3957 $ 91.0% 9/30/2010 $22.45 6.4% 0.4531 $ 0.37 81.7% 0.4218 $ 87.7% 12/31/2010 $22.44 6.6% 0.4566 $ 0.37 81.0% 0.4074 $ 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% 0.4009 $ 94.8% $1.80 - $1.86 6/30/2011 $21.01 7.2% 0.4748 $ 0.40 84.2% 0.4345 $ 92.1% 9/30/2011 $15.93 10.0% 0.4769 $ 0.40 83.9% 0.4392 $ 91.1% 12/31/2011 $19.35 8.3% 0.4963 $ 0.41 82.6% 0.4623 $ 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% 0.4738 $ 88.6% $2.06 - $2.12 6/30/2012 $22.50 7.5% 0.5252 $ 0.42 80.0% 0.4535 $ 92.6% 9/30/2012 $22.73 7.4% 0.5353 $ 0.44 82.2% 0.4702 $ 93.6% 12/31/2012 $23.85 7.4% 0.5776 $ 0.45 77.9% 0.5236 $ 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% 0.5739 $ 80.2% $2.45 - $2.50 6/30/2013 $31.02 5.9% 0.6227 $ 0.47 75.5% 0.5614 $ 83.7% 9/30/2013 $29.87 6.3% 0.6260 $ 0.48 76.7% 0.5682 $ 84.5% 12/31/2013 $29.80 6.4% 0.6471 $ 0.49 75.7% 0.5861 $ 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% 0.6506 $ 76.9% $2.69 - $2.72 6/30/2014 $36.86 5.4% 0.6859 $ 0.51 74.4% 0.6257 $ 81.5% 9/30/2014 $34.19 6.0% 0.7320 $ 0.52 71.0% 0.6690 $ 77.7% 12/31/2014 $39.07 5.3% 0.7232 $ 0.53 73.3% 0.6621 $ 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% 0.6492 $ 83.2% $2.98 - $3.04 6/30/2015 $34.33 6.3% 0.7696 $ 0.55 71.5% 0.7000 $ 78.6% 9/30/2015 $35.15 6.3% 0.7913 $ 0.56 70.8% 0.7168 $ 78.1% 12/31/2015 $34.98 6.4% 0.8067 $ 0.57 70.7% 0.7237 $ 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% 0.7488 $ 77.5% $3.25 - $3.30 6/30/2016 $33.95 6.8% 0.8684 $ 0.60 69.1% 0.7731 $ 77.6% 9/30/2016 $35.45 6.8% 0.8327 $ 0.61 73.3% 0.7477 $ 81.6% 12/31/2016 $31.26 7.8% 0.8803 $ 0.62 70.4% 0.7965 $ 77.8% $3.42 11.0% 3.07 $ 9.9% $2.41 8.6% 2017 3/31/2017 $32.99 7.5% 0.8569 $ 0.63 $ 73.5% 0.7730 $ 81.5% $3.40 - $3.44 6/30/2017 $33.02 7.6% 0.8661 $ 0.64 73.9% 0.7838 $ 81.7% 9/30/2017 $31.91 8.0% 0.7918 $ 0.65 82.1% 0.7285 $ 89.2% 12/31/2017 $27.54 9.4% 0.7882 $ 0.66 83.7% 0.7178 $ 91.9% $3.30

• 3.3%

3.00 $

• 2.1%

$2.58 7.1% 2018 3/31/2018 $27.04 9.8% 0.7760 $ 0.66 $ 85.1% 0.6920 $ 95.4% $2.96 - $3.06 6/30/2018 $31.00 8.5% 0.7633 $ 0.66 86.5% 0.6730 $ 98.1% * Based on the annualized dividend announced the previous quarter 1) This was the guidance provided at the beginning of each fiscal year and does not reflect mid-year guidance changes.

Investor Presentation, August 2018

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

46

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

• Avg. Price

Net Proceeds Shares

• Avg. Price

Net Proceeds Shares

• Avg. Price

Proceeds 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 $ 2012 799,082 21.885 $ 17,487,618 $ 4,262,944 22.157 $ 94,453,583 $ 5,062,026 22.114 $ 111,941,200 $ 2013 801,917 30.649 $ 24,577,834 $ 1,128,490 27.731 $ 31,294,119 $ 1,930,407 28.943 $ 55,871,953 $ 2014 466,354 34.436 $ 16,059,177 $ 1,617,145 34.284 $ 55,442,759 $ 2,083,499 34.318 $ 71,501,936 $ 2015 722,187 35.496 $ 25,634,519 $ 3,461,644 36.178 $ 125,236,640 $ 4,183,831 36.061 $ 150,871,159 $ 2016 1,438,336 30.890 $ 44,429,942 $ 5,776,939 33.861 $ 195,611,433 $ 7,215,275 33.268 $ 240,041,375 $ 2017 1,094,555 30.563 $ 33,453,095 $ 104,052 31.415 $ 3,268,773 $ 1,198,607 30.637 $ 36,721,869 $ Jan-18

• $
• $

8,562 26.347 $ 225,581 $ 8,562 26.347 $ 225,581 $ Feb-18 166,654 25.792 $ 4,298,357 $ 8,380 26.053 $ 218,321 $ 175,034 25.805 $ 4,516,677 $ Mar-18

• $
• $

5,276 27.284 $ 143,950 $ 5,276 27.284 $ 143,950 $ Apr-18

• $
• $

5,261 26.011 $ 136,846 $ 5,261 26.011 $ 136,846 $ May-18 347,845 28.021 $ 9,746,826 $ 4,798 28.304 $ 135,801 $ 352,643 28.024 $ 9,882,626 $ Jun-18

• $
• $

400,613 30.313 $ 12,143,844 $ 400,613 30.313 $ 12,143,844 $ Total DRIP / DSPP: 38,300,955 25.517 $ 977,340,507 $

Investor Presentation, August 2018

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

47

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 717,853 $32.14 23,074,336 $ 2018 * 912,212 $30.93 28,217,949 $ Program #5 Total 2,285,700 $31.36 71,684,349 $ ATM/ESP Grand Totals 23,733,402 $25.78 611,862,096 $ * Settlements through June 30, 2018