Investor Presentation February 2019 Forward-looking Statements and - - PowerPoint PPT Presentation

Investor Presentation

February 2019

Investor Presentation, February 2019

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 December 31, 2018, unless specifically stated otherwise. We assume no duty to update or supplement the information provided.

Omega Overview

Investor Presentation, February 2019

Omega Overview: Key Credit Highlights

4

Financial Strength Portfolio Strength

◼ Strong core portfolio TTM rent coverage of 1.67x (EBITDARM) and 1.32x (EBITDAR) at

9/30/2018

◼ Geographic and operator diversification with 68 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 5.37x (4Q 2018) (1) ◼ Consistent and stable free cash flow with strong fixed charge coverage of 3.83x (4Q 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 $961 million of cash and credit facility availability at 1/31/2019

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 4Q 2018 Supplemental for detailed calculation

Investor Presentation, February 2019

Omega Overview: Facility and Investment Overview at December 31, 2018

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◼

Omega is the largest SNF-focused REIT

◼

As of December 31, 2018, Omega’s portfolio consisted of 909 (1) operating facilities

◼

Completed approximately $471 million of new investments (including CAPEX) in 2018

◼

In 2018, completed 83 asset dispositions totaling over $412 million of net proceeds Facility Investment Statistics Rent/Interest Statistics (2)

Skilled Nursing/Transitional Care, 82.4% Senior Housing, 17.6% Rental Property 85.7% Direct Financing Leases 0.1% Mortgage Notes 8.4% Other 5.8%

1) Excludes facilities which are non-operating, closed and/or not currently providing patient services 2) 3 Months ended December 31, 2018

Investor Presentation, February 2019

$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: Annual Shareholder Returns

6 1/1/2004 to 12/31/2018 OHI Share Price: 276.7% RMZ Index: 80.7% Annual Dividends as of 2/15/2019 3 Year Total Growth: 18.9% 5 Year Total Growth: 39.0% 10 Year Total Growth: 120.0 % 1/1/2004 to 12/31/2018 Real Estate Investments: 17.5% Operating Revenue: 17.1% Adjusted FFO per Share: 9.0% OHI Share Price: 9.3% Dividend Yield at $0.66/Share Per Quarter 7.2%

(based on closing price on 2/15/2019 of $36.46)

Omega Share Price Growth, 12/31/2002-2/15/2019 Compounded Annual Growth Rates Total Growth Percentages

Investor Presentation, February 2019

27.9% 66.6% 393.3% 16.1% 44.3% 220.3%

0% 50% 100% 150% 200% 250% 300% 350% 400% 450%

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: 27.9% 8.5% 6th 5 Year: 66.6% 10.7% 5th 10 Year: (2) 393.3% 17.3% 2nd

1) Ranking among healthcare REITs. Source of Total Returns and Ranking: KeyBanc Capital Markets The Leaderboard, December 28, 2018 2) Ranked 20th among all 98 publicly traded equity REITs with at least 10 years of return history. Source: KeyBanc Capital Markets The Leaderboard, December 28, 2018 3) Source: KeyBanc Capital Markets The Leaderboard, December 28, 2018. Peer returns are simple average of returns of NHI, HR, LTC, SABRA, VTR, WELL, and HCP

Shareholder Returns Through 12/31/2018 Dividends per Share and Return of Capital % Omega's Total Returns vs Healthcare REIT Averages (3)

(Years ending 12/31/2018)

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 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% 2018 2.64 1.69 0.93 0.02 64.0% 35.3% 0.7% 11.74 $ 8.20 $ 3.41 $ 0.13 $ 70.4% 28.6% 1.0% Avg.

1) Rounded to two decimals

Investor Presentation, February 2019

Omega Overview: Quarterly Highlights

8 1Q 2019

➢ Paid a $0.66 per quarterly common stock dividend ➢ Entered into a definitive merger agreement to acquire MedEquities Realty Trust, Inc. ➢ Finalized the Orianna restructuring

4Q 2018

➢ Paid a quarterly common stock dividend rate of $0.66 per share ➢ Completed $53 million in new investments ➢ Invested $45 million in capital renovation and construction-in-progress projects ➢ Sold 15 assets for cash consideration of $67 million, recognizing a gain of $15.5 million

3Q 2018

➢ Paid a quarterly common stock dividend rate of $0.66 per share ➢ Transitioned 22 Orianna facilities to existing operators for annual contractual rent of $17 million ➢ Sold 7 assets for consideration of $26 million in cash and a $5 million seller note ➢ Completed $131 million in new investments ➢ Invested $44 million in capital renovation and construction-in-progress projects

2Q 2018

➢ Paid 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

Investor Presentation, February 2019

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: $471 million ➢ Additionally, the Company has approximately $213 million committed to its operators for capital improvement and new construction projects to be completed over the next 24-36 months (as of 12/31/2018)

◼

Continue to pursue accretive transactions

◼

Leverage existing 68 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 $961 million of combined cash and credit facility availability as of January 31, 2019

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 $6.7 billion (2)

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Demographics to Drive Growth

Investor Presentation, February 2019

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, February 2019

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, February 2019

Industry Overview: Baby Boomers Started Turning 75 in 2016

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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, February 2019

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, February 2019

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, February 2019

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, February 2019

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, February 2019

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, February 2019

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, February 2019

Industry Overview: Reimbursement Outlook

21

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 September 30, 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, February 2019

Portfolio Overview: Summary

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➢ As of December 31, 2018 ▪ 909 operating healthcare facilities, located in 41 states and the UK, operated by 68 third- party operators ▪ Gross real estate investments of approximately $9.1B ➢ 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, February 2019

Facility Map at December 31, 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 27 NM 34 WI 36 NV 952 CA 417 WA 48 ID 2 9 AZ 12114 TX 214 CO 29 IA 417 MO 29 AR 112 LA 11 IL 566 IN 1057 OH 330 KY 534 TN 29 AL 1090 FL 411 GA 532 NC

411 WV

645 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19 VA 12 MT 17 NE 13 MN 16 CT

255

United Kingdom

Operators: 68 (1) Facilities: 909 (2) States: 41 (3) Foreign Countries: 1 (UK)

UT

Investor Presentation, February 2019

Florida, 10.6% Texas, 9.8% Michigan, 8.4% Indiana, 8.2% Ohio, 6.8% Pennsylvania, 6.1% California, 5.3% United Kingdom, 4.7% North Carolina, 3.6% Tennessee, 3.5% Remaining States, 33.0%

Portfolio Overview: Omega Geographic Diversification as of December 31, 2018

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Contractual Rent/Interest Concentration by Location

($ in thousands) Rent/ Interest % Rent/ Interest Operators (1)

• No. of

Properties (2) % Occupancy (3)(4) Florida 84,726 $ 10.6% 10 90 88.1% Texas 78,262 9.8% 12 114 69.6% Michigan 66,910 8.4% 3 53 88.2% Indiana 65,300 8.2% 5 66 81.0% Ohio 54,427 6.8% 10 57 81.5% Pennsylvania 48,518 6.1% 6 45 88.2% California 42,048 5.3% 9 52 92.5% United Kingdom 37,121 4.7% 2 55 90.3% North Carolina 28,913 3.6% 5 32 84.2% Tennessee 27,753 3.5% 5 34 71.1% Remaining States 262,867 33.0% 311 82.8% Total 796,846 $ 100.0% 68 909 82.3%

1) Many operators operate in multiple states 2) Excludes facilities which are non-operating, closed and/or not currently providing patient services 3) As of September 30, 2018, TTM 4) Includes Core Portfolio only

Investor Presentation, February 2019

Portfolio Overview: Omega Operator Diversification as of December 31, 2018

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Contractual Rent/Interest Concentration by Operator

($ in thousands)

4Q 2018 Annualized Contractual Rent/Interest (1)(2) Operator Total ($000's) % of Total Properties (1)(3) 1 Ciena 94,466 $ 11.9% 74 2 Communicare 59,489 7.5% 45 3 Genesis 59,397 7.5% 59 4 Signature 51,079 6.4% 58 5 Saber 43,419 5.4% 45 6 HHC 35,939 4.5% 44 7 Guardian 34,712 4.3% 35 8 Maplewood 31,437 3.9% 14 9 Daybreak 30,026 3.8% 57 10 Diversicare 29,232 3.7% 34 Remaining 58 Operators (3) 327,650 41.1% 421 796,846 $ 100.0% 886 (1) (2) (3)

Excludes facilities which are non-operating, closed and/or not currently providing patient services Includes mezzanine and term loan interest) Excludes 18 Orianna facilities, 4 Preferred Care facilities and one Safe Haven facility due to their bankruptcy status: all facilities of these three operators are expected to be transitioned or sold

Investor Presentation, February 2019

Portfolio Overview: Capital Investment Summary as of December 31, 2018

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• Fac. #

Commitment Year Location # of Projects Property Type Initial Cash Yield (1) Beds / Units Investment Commitment Inception to Date Funding (2) Remaining Commitment Estimated In Service Date Estimated Additional Quarterly Rent (3) 1503 2014 Middleburg, FL 1 SNF 9.00% 120 18,750,000 13,290,439 5,459,561 Q3 2019 299,035 1436 2015 2nd Avenue, NY 1 ALF / MC 8.00% 214 287,711,161 208,741,365 78,969,796 Q4 2019 3,652,974 1542 2016 Pensacola, FL 1 SNF 8.75% 90 19,500,000 4,724,672 14,775,328 Q1 2020 103,352 1506 2016 Viera, FL 1 SNF 8.75% 131 26,500,000 22,849,288 3,650,712 Q1 2019 499,851 1563 2017 Southport, CT 1 ALF 9.00% 98 41,749,139 25,610,382 16,138,757 Q2 2019 576,234 1592 2017 Lake City, FL 1 SNF 8.75% 113 23,600,000 13,654,822 9,945,178 Q3 2019 298,699 1483 2017 Mocksville, NC 1 SNF 9.25% 108 12,200,000 10,280,795 1,919,205 Q1 2019 237,743 1593 2018 Hillsboro, TX 1 SNF 9.25% 105 9,450,000 5,313,697 4,136,303 Q3 2019 122,879 1603 2018 Thibodaux, LA 1 SNF 7.00% 110 21,000,000 2,844,768 18,155,232 Q2 2020 49,783 Leased Facilities 9 1,089 460,460,300 $ 307,310,228 $ 153,150,072 $ 5,840,550 $ 1568 2017

• St. Clair Shores, MI

1 SNF 9.73% 101 17,000,000 13,931,623 3,068,377 Q1 2019 1569 2017 Westland, MI 1 SNF 9.73% 120 10,000,000 6,517,690 3,482,310 Q2 2019 Mortgages (4) 2 221 27,000,000 $ 20,449,313 $ 6,550,687 $ Additional CapEx (excluding New Builds) (3) 68 99,339,649 45,936,209 53,403,440 Total: 79 1,310 586,799,949 $ 373,695,750 $ 213,104,199 $

1) Cash yield for 2nd Avenue is 7.0% in year 1, 8.0% in year 2, and 2.5% escalators for the remainder of the lease 2) Includes land and finance costs 3) Inception to Date Funding multiplied by Initial Cash Yield (2nd Ave. calculated at 7%) 4) Current quarter revenue already reflects fundings to date

Investor Presentation, February 2019

1.0 1.3 1.5 1.8 2.0 2.3 2.5

TTM EBITDARM & EBITDAR Coverage 3/31/2002 to 9/30/2018, Quarterly

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)

Period Trailing Twelve Months (TTM) Period Trailing Twelve Months (TTM) Period Trailing Twelve Months (TTM) Period Trailing Twelve Months (TTM) Ending EBITDARM EBITDAR RUG -IV 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 06/30/18 1.70 1.34 09/30/03 1.5 1.1 09/30/08 2.1 1.7 09/30/13 1.9 1.5 09/30/18 1.67 1.32 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

Investor Presentation, February 2019

Portfolio Overview: Minimal Near Term Expirations as of December 31, 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 1.04x (1)

Note: Expiration percentages based on 4Q 2018 contractual rents and interest, annualized 1) Operator coverage, TTM September 30, 2018 2) Excludes the following facilities due to their bankruptcy status: 18 Orianna facilities with annual contractual revenue of approximately $26.3M, one Safe Haven facility with annual revenue of approximately $1.4M, and four Preferred Care facilities with no revenue; all facilities are expected to be transitioned or sold

Percentage of Portfolio Lease and Mortgage Expirations by Year (2)

Financial Overview

Investor Presentation, February 2019

Financial Overview: Consistent Financial Policy

31

4Q 2018 (unless otherwise noted) ➢ Conservative capitalization ▪ Debt to adjusted proforma EBITDA ratio: 5.37x (see 4Q 2018 Financial Supplement (1) ) ➢ Significant liquidity ▪ $1.25B revolving credit facility: $951 million of availability (as of January 31, 2019) ▪ 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: 51% (determined pursuant to bond covenants) ▪ Adjusted Fixed Charge Ratio >3.5x: 3.8x (see 4Q Financial Supplement (1) ) ➢ Dividend payout ratios (2) ▪ AFFO Payout Ratio: 90.1% (4Q 2018) ▪ FAD Payout Ratio: 101.3% (4Q 2018) ▪ 16 consecutive yearly dividend increases: $0.66 as of 1Q 2019 ($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 Orianna transition and the conclusion of its strategic asset repositioning efforts. See page 12 of Omega’s 4Q 2018 Financial Supplement.

Investor Presentation, February 2019

Financial Overview: Long-Term Growth Strategy

32

➢ Pursue selective acquisitions ➢ Leverage existing 68 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, February 2019

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Acquisitions 114,287 245,550 196,000 39,500 112,135 269,393 588,718 187,696 468,153 561,190 131,689 406,953 972,190 364,246 104,855 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 52,985 CIP (2)

• 62,197

78,432 127,945 Other (3)

• 28,000
• 221,367

16,625 141,315

• 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 December 31, 2018

Over $5.5 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

126,323 311,121 202,805 48,549 196,818 291,511 637,777 336,633 509,558 620,858 565,510 506,944 1,328,269 529,727 471,300

Totals

4,762,555 854,834 415,916 268,574 407,307 6,709,187

Investor Presentation, February 2019

$87 $110 $136 $160 $170 $179 $251 $292 $350 $419 $505 $744 $901 $908 $882

$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 2018

$0.9 $1.1 $1.3 $1.3 $1.5 $1.8 $2.5 $2.8 $3.3 $3.9 $4.5 $8.1 $9.2 $9.1 $9.1

$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Financial Overview: Attractive Growth Profile

34

Core Operations Revenue (1) Gross Investments (1)

($ in billions) ($ in millions)

$___M YTD through 1Q:19 $___M YTD through 1Q:19

1) See our 4Q 2018 Financial Supplement posted on our website, www.omegahealthcare.com

Investor Presentation, February 2019

$52 $77 $91 $109 $123 $156 $193 $236 $299 $363 $564 $689 $683 $638 $0 $100 $200 $300 $400 $500 $600 $700 $800 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $101 $127 $145 $159 $170 $236 $279 $334 $402 $487 $716 $870 $882 $843 $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 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 4Q 2018 Earnings Release and Supplement

($ in millions) ($ in millions)

$635.6M YTD through 3Q:18 $483.0M YTD through 3Q:18

Investor Presentation, February 2019

4.3x 4.8x 4.7x 4.4x 4.6x 4.5x 4.7x 4.9x 5.2x 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 2018

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 3Q 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 ) 4) No secured debt at 12/31/2018

Leverage (1)(2)(4) 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

5.2x for 3Q:18 Annualized 4.0x for 3Q:18

3.1x 3.3x 3.5x 4.0x 4.1x 4.7x 5.1x 4.5x 4.1x 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 2010 2011 2012 2013 2014 2015 2016 2017 2018

Investor Presentation, February 2019

$20M Term Loan $425M $700M 4.375% Notes $400M 4.95% Notes $400M 4.50% Notes $600M 5.25% Notes $700M 4.50% Notes $550M 4.75% Notes

$132M

$100M $250M $298M $952M

$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

➢

$657MM term loans

➢

$952M available as of 1/31/2019

• $250MM unsecured term loan
• No near term bond maturities
• No secured debt
• 79% of debt is fixed rate at 1/31/2018

Financial Overview: Conservative Capitalization

37

Debt Maturity Schedule at 1/31/2019

$1.25B Revolving Credit Facility: $298M drawn at 1/31/2019

$20MM

Credit Facility Term Loans

(1) 1) Represents the £100 million term loan at the spot exchange rate of approximately $1.32 at 1/31/2019

Investor Presentation, February 2019

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 51% and 54%, respectively, at 4Q 2018

• Debt to Adjusted proforma EBITDA is 5.37x

for 4Q 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 4Q 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 Unsecured Leverage Ratio Fixed Charge Cov. Ratio Unsecured Interest Cov. Ratio Current Tangible Net Worth Requirement <= 60% <= 60% >=1.50 to 1 >=2.00 to 1 >$3,491MM March 31, 2018 52% 53% 4.5 3.9 Pass June 30, 2018 50% 52% 4.4 3.8 Pass September 30, 2018 51% 53% 4.4 3.8 Pass December 31, 2018 51% 54% 4.3 3.6 Pass Status Pass Pass Pass Pass Pass Quarter Ending Debt / Adj. Total Assets Unencumbered Assets / Unsecured Debt Requirement <= 60% >= 150% March 31, 2018 51% 197% June 30, 2018 50% 201% September 30, 2018 51% 197% December 31, 2018 50% 199% Status Pass Pass

Investor Presentation, February 2019

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

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)

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 59,796 124,518

• 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 2,679,949 7,808,436

Investor Presentation, February 2019

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 4Q 2018 (1)

Dividends Paid Dividends Annualized AFFO Payout %

Financial Overview: Dividend History

40

78.9% (2)

1) As per page 12 in our 4Q 2018 Financial Supplement 2) Reflects the unweighted AFFO Payout average from 2003 through 4Q 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, February 2019

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

42

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 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 $ 293,884 Depreciation and amortization......................................................................................... 36,056 39,890 44,694 84,623 100,337 112,983 128,646 123,257 210,703 267,062 287,591 281,279 Depreciation and amortization unconsolidated joint venture............................................ - - - - - - - - - 1,107 6,630 5,876 Interest expense - net & refinancing costs......................................................................... 44,092 39,746 39,075 90,602 86,899 106,096 92,048 126,869 183,208 175,561 219,976 201,269 Provision for income taxes................................................................................................ (7) (72) - - - - - - 1,211 1,405 3,248 3,010 EBITDA.......................................................................................................................... 149,515 157,701 165,880 233,661 239,842 339,777 393,215 471,475 628,437 828,502 622,355 785,318 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)
• Acquisition costs............................................................................................................... - - 1,561 1,554 1,204 909 245 3,948 57,525 9,582 (22)

383 (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) (24,774) (Gain) loss on assets sold - unconsolidated joint venture.................................................. - - - - - - - - - - - 670 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 revenue............................................................................................................. - (702) - - - (536) (1,405) - - - (2,394)

(1,110) Unrealized gain on warrents............................................................................................ - - - - - - - - - - - (160) (Deduct gain) add back loss foreign currency.................................................................... - - - - - - - - - - (311) (32) 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

29,839 Provisions for real estate impairment of unconsolidated joint venture.............................. - - - - - - - - - - - 608 Impairment on direct financing leases.............................................................................. - - - - - - - - - - 198,199 27,168 Provisions for uncollectible mortgages, notes and A/R...................................................... - 4,248 3,935 - 6,439 - 2,141 2,723 7,871 9,845 14,580 6,689 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 15,987 Adjusted EBITDA........................................................................................................... 145,027 $ 158,807 $ 170,375 $ 236,347 $ 278,849 $ 334,329 $ 401,704 $ 486,950 $ 716,294 $ 870,237 $ 882,365 $ 842,586 $ 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 21,266 Proforma CIP Income........................................................................................................ - - - - - - - - - - 14,568 19,379 Incremental Revenue from Orianna Transitioned Assets................................................... - - - - - - - - - - 8,000 3,032 Incremental Revenue from Daybreak................................................................................ - - - - - - - - - - 7,146 2,909 Proforma Revenue from Asset Divestitures....................................................................... - - - - - - - - - - (5,052) (6,716) Adjusted Proforma EBITDA (1)..................................................................................... 147,673 $ 174,167 $ 200,690 $ 269,154 $ 316,002 $ 379,749 $ 457,400 $ 509,144 $ 787,021 $ 917,572 $ 931,729 $ 882,456 $ 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 $ 203,501 $ 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 $ 203,501 $ 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 4.1 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 4.3 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. Twelve Year Ended December 31,

Investor Presentation, February 2019

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

43

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 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 85,000 230,000 190,000 290,000 313,000 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 $100M GDP Term Loan...................................................................................

• 135,130

127,990 2015 OP Term Loan - unsecured......................................................................

• 100,000

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

• 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

• 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 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 3,350,000 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 $ 4,585,990 $ Less: Cash on-hand.......................................................................................... (1,979) (209) (2,170) (6,921) (351) (1,711) (2,616) (4,489) (5,424) (93,687) (85,937) (10,300) 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 $ 4,575,690 $ 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

• 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 4,585,990 Less: Cash on-hand (1,979) (209) (2,170) (6,921) (351) (1,711) (2,616) (4,489) (5,424) (93,687) (85,937) (10,300) 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 $ 4,575,690 $ 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 5.2x 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 0.0x 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 December 31, 2018 and 2017, excludes $0.3 million, $0.4 million of adjustments related to the acquisition date fair value premium, respectively. Twelve Year Ended December 31,

Investor Presentation, February 2019

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

44

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% 9/30/2018 $32.77 8.1% 0.7727 $ 0.66 85.4% 0.6844 $ 96.4% 12/31/2018 $35.15 7.5% 0.7323 $ 0.66 90.1% 0.6517 $ 101.3% $3.04

• 7.8%

2.70 $

• 10.1%

$2.64 2.3% * 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, February 2019

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

45

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

• Avg. Price

Net Proceeds Shares

• Avg. Price

Net Proceeds Shares

• Avg. Price

Proceeds 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 $ January-18

• $
• $

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

• $
• $

5,276 27.284 $ 143,950 $ 5,276 27.284 $ 143,950 $ April-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 $ June-18

• $
• $

400,613 30.313 $ 12,143,844 $ 400,613 30.313 $ 12,143,844 $ July-18

• $
• $

3,514 31.260 $ 109,847 $ 3,514 31.260 $ 109,847 $ August-18 297,565 31.806 $ 9,464,323 $ 4,697 32.127 $ 150,901 $ 302,262 31.811 $ 9,615,224 $ September-18

• $
• $

3,909 32.999 $ 128,992 $ 3,909 32.999 $ 128,992 $ October-18

• $
• $

3,642 32.437 $ 118,137 $ 3,642 32.437 $ 118,137 $ November-18 280,931 33.926 $ 9,530,837 $ 4,032 34.269 $ 138,171 $ 284,963 33.931 $ 9,669,008 $ December-18

• $

3,088 35.606 $ 109,950 $ 3,088 35.606 $ 109,950 $ Total DRIP / DSPP: 38,902,333 25.631 $ 997,091,666 $

Investor Presentation, February 2019

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

46

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 2,276,364 $34.14 77,717,431 $ Program #5 Total 3,649,852 $33.20 121,183,831 $ ATM/ESP Grand Totals 25,097,554 $26.35 661,361,577 $