Omega Healthcare Investors, Inc.

Good day and welcome to the Omega Healthcare Investors second quarter 2020 earnings conference call. Today, all participants will be in a listen-only mode. Should you need assistance during today's call, please signal for a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note that today's event is being recorded. At this time, I would like to turn the call over to Michele Reber. Please go ahead.

Thank you and good morning. With me today are Omega's CEO, Taylor Pickett, CFO, Bob Stephenson, COO, Dan Booth, Chief Corporate Development Officer, Stephen Insoft, and Megan Krull, Senior Vice President of Operations. Comments made during this conference call that are not historical facts may be forward-looking statements, such as statements regarding our financial projections, dividend policy, portfolio restructurings, rent payments, Financial condition or prospects of our operators, contemplated acquisitions, dispositions, or transitions, and our business and portfolio outlook generally. These forward-looking statements involve risks and uncertainties which may cause actual results to differ materially. Please see our press releases and our filings with the Securities and Exchange Commission, including, without limitation, our most recent report on Form 10-K. which identifies specific factors that may cause actual results or events to differ materially from those described in forward-looking statements. During the call today, we will refer to some non-GAAP financial measures, such as NAREIT FFO, Adjusted FFO, FAD, and EBITDA. Reconciliations of these non-GAAP measures to the most comparable measure under generally accepted accounting principles, as well as an explanation of the usefulness of the non-GAAP measures, are available under the Financial Information section of our website at www.omegahealthcare.com and, in the case of Navy FFO and Adjusted FFO, in our recently issued press release. In addition, certain operator coverage and financial information that we discuss is based on data provided by our operators that has not been independently verified by Omega. I will now turn the call over to Taylor.

Thanks, Michele. Good morning and thank you for joining our second quarter 2020 earnings conference call. First and most importantly, thank you to our operating partners and their staff who have cared for the thousands of residents within our facilities. The bad reality of this prolonged, deadly pandemic is that the daily dedication and bravery of the direct caregivers is too often overlooked. They are heroically saving lives every day, caring for particularly fragile residents. Turning to our financial results, we're very pleased with our second quarter results. Our adjusted FFO of 81 cents per share and our funds available for distribution of 76 cents per share allowed us to maintain our quarterly dividend of 67 cents per share. Payout ratio further improved to 83% of adjusted FFO and 88% of funds available for distribution. Additionally, for July, we collected virtually all of our contractual rents. Later in the call, we will provide detail related to the impact of COVID-19 on our operators. I will provide a couple of summary bullet points. CMS, the federal government, and the states have provided meaningful, ongoing essential regulatory and financial support to the skilled nursing facility industry that has allowed operators to fund payrolls and pay vendors in spite of significant declines in occupancy and increasing costs. Our operator portfolio occupancy has declined by 8% since February. Operator expenses have increased an average of $18 per patient day. And although occupancy levels have appeared to stabilize, it remains uncertain when occupancy will return to pre-COVID levels. I will now turn the call over to Bob.