Omega Healthcare Investors now have three operators that have been unable to pay rent in 2021 due to ongoing challenges associated with COVID-19.
The company announced in a new business update Tuesday that the non-payers, which represent about 8.6% of its estimated third-quarter 2021 contractual rent and mortgage payments, have stopped paying rent in 2021.
Omega executives in August reported that just one operator, representing 3% or $30 million of its annual revenue, was unable to pay June rent worth $2.5 million, due to occupancy and labor issues. The company soon after disclosed another operator with similar issues.
The company said Tuesday that a third provider company recently approached it about its current capacity to pay its future rents and interest.
“This operator did not pay its contractual August rent or interest on other loans outstanding and has indicated that it does not expect to pay September,” the update states. “Omega holds letters of credit, cash deposits, and certain limited personal guarantees that represent approximately $17.6M in the aggregate. We are considering our alternative options. No conclusions have been reached at this time.”
So far, the company has collected more than 98% of its rents in the second quarter of this year.
Omega’s umbrella includes 65 operators and 949 long-term care facilities throughout the United States and United Kingdom.