Omega Bumps Dividend a Penny - Analyst Blog
April 20 2011 - 1:04PM
Zacks
Omega Healthcare Investors Inc. (OHI) a real
estate investment trust recently announced its decision to hike its
quarterly dividend by a penny to 38 cents. The increased dividend
will be paid on May 16, 2011 to shareholders of record on April 29,
2011. The dividend yield is 6.36% as of April 15, 2011.
In October 2010, Omega Healthcare increased its quarterly
dividend from 36 cents per share to 37 cents per share which was
paid on January
31 2011.
Net cash flow from financing activities was $242.0 million for
the fiscal year December 31, 2010. Cash and cash equivalents stood
at $6.9 million at the end of December 31, 2010, an increase of
$4.8 million from the previous year. With signs of recovery in the
economy, dividend increases have now become common among companies
sitting on surplus cash. These strategies enhance
shareholders’ return.
For the fourth quarter 2010, Omega Healthcare reported adjusted
funds from operations (FFO) of $45.1 million, or $0.46 per share,
compared to $30.8 million or $0.36 in the
prior year period. Funds from operations, a widely used
metric, is
obtained after adding depreciation and amortization and other
non-cash expenses to net income and is considered a key measure of
a real estate investment trust’s performance.
For fiscal
year 2010, Omega Healthcare reported FFO of $156.1 million, or
$1.66 per share, compared to $122.7 million, or $1.47 per share in
the prior year period.The company expects its guidance to be
in the range of $1.80 - $1.86 per share for fiscal year 2011.
Omega Healthcare is a real estate investment trust that
invests in
healthcare facilities in the United States. It provides lease or
mortgage financing to qualified operators of skilled nursing
facilities (SNFs), as well as assisted living facilities (ALFs),
independent living facilities (ILFs), and rehabilitation and acute
care facilities.
Omega Healthcare currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We are also maintaining
our long-term Neutral recommendation on the stock. One of its
competitors, HCP Inc. (HCP) currently retains a
Zacks #3 Rank, which translates into a short-term Hold rating.
HCP INC (HCP): Free Stock Analysis Report
OMEGA HLTHCARE (OHI): Free Stock Analysis Report
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