Omega Healthcare Investors, Inc.

Good morning and welcome to the Omega Healthcare Investors third quarter 2020 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your touchtone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Michele Reber. Please go ahead.

Thank you and good morning. With me today are Omega's CEO, Taylor Pickett, COO, Dan Booth, CFO, Bob Stephenson, 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 NAIRI 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 third quarter 2020 earnings conference call. First and most importantly, I again want to thank our operating partners and their staff who have cared for the tens of thousands of residents within our facilities. I would also like to recognize and thank the federal government and the states for their support of the skilled nursing and assisted living communities. The allocation and distribution of additional government funding along with the communication and evolution of clinical protocols has been critical in protecting and saving lives as we combat this unprecedented deadly pandemic. Turning to our financial results, we are very pleased with our third quarter earnings. Our adjusted FFO of 82 cents per share and our funds available for distribution of 78 cents per share allowed us to maintain our quarterly dividend of 67 cents per share. Payout Ratio further improved to 82% of adjusted FFO and 86% of funds available for distribution. Additionally, for the third quarter, we collected virtually all of our contractual rents. Our second quarter consolidated coverage, excluding CARES Act funding, was 1.05 times rent. This highlights the resiliency of the skilled nursing facility industry in the face of an unprecedented 800 basis point drop in occupancy. Our broad geographic and operator diversity has resulted in widely different results among our operators as COVID-19 hotspots have moved throughout the country. Importantly, as we have seen high infection rate geographies abate, we have also seen operator expenses drop and related cash flows improve. This dynamic The ebb and flow of infections and the ability of our operators to respond, control the virus and flex their care delivery model provides us with cautious optimism that once the pandemic is controlled, pre-COVID operating environment with appropriate new infection control protocols will rapidly return. In the meantime, as we think about getting from here to there, the federal and state government support will be critical for the skilled nursing and assisted living care settings. The latest round of CARES Act funding, which requests providers to detail revenue shortfalls and increased expenses, is an important step in targeting operators that have been disproportionately impacted by the pandemic. We remain hopeful that a vaccine will be available soon and appreciate the government focus on delivering the first round of vaccines, skilled nursing and assisted living residents, and their frontline caregivers. This will be a crucial catalyst to returning occupancies and cash flows to pre-COVID levels. I will now turn the call over to Bob.