|
Maryland
|
| |
6798
|
| |
38-3041398
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer Identification No.)
|
|
|
Rick Miller
Eliot W. Robinson Terrence A. Childers Bryan Cave LLP One Atlantic Center, Fourteenth Floor 1201 West Peachtree Street, NW Atlanta, Georgia 30309-3488 (404) 572-6600 |
| |
Craig M. Bernfield
Chief Executive Officer Aviv REIT, Inc. 303 West Madison Street, Suite 2400 Chicago, Illinois 60606 (312) 855-0930 |
| |
Steve Sutherland
Scott Williams Sidley Austin LLP One South Dearborn Chicago, Illinois 60603-2301 (312) 853-7000 |
|
| Large accelerated filer ☒ | | | Accelerated filer ☐ | | | Non-accelerated filer ☐ | | |
Smaller reporting company ☐
|
|
| |||||||||||||||||||||||
Title of each class of securities to be registered
|
| |
Amount to be
registered(1) |
| |
Proposed maximum
offering price per unit(1) |
| |
Proposed maximum
aggregate offering price |
| |
Amount of
registration fee |
|||||||||||
Common Stock, $0.10 par value per share
|
| | | | 58,233,080 | | | |
Not applicable
|
| | | $ | 2,323,208,719(2) | | | | | $ | 269,957(3) | |||
|
|
|
| |
|
|
| Sincerely, | | | Sincerely, | | ||||||
|
|
| | | | |
|
| | | |
| C. Taylor Pickett Chief Executive Officer Omega Healthcare Investors, Inc. |
| | | | | Craig M. Bernfield Chairman and Chief Executive Officer Aviv REIT, Inc. |
|
|
Omega common stockholders:
Omega Healthcare Investors, Inc. Attention: Investor Relations 200 International Circle, Suite 3500 Hunt Valley, MD 21030 (410) 427-1700 www.omegahealthcare.com |
| |
Aviv common stockholders:
Aviv REIT, Inc. Attention: Investor Relations 303 West Madison Street, Suite 2400 Chicago, Illinois 60606 (312) 855-0930 www.avivreit.com |
|
|
Omega common stockholders:
|
| |
Aviv common stockholders:
|
|
| | |
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| | | | 162 | | | |
| | | | 163 | | | |
| | | | 164 | | | |
| | | | A-1 | | | |
| | | | B-1 | | | |
| | | | C-1 | | | |
| | | | D-1 | | | |
| | | | E-1 | | | |
| | | | F-1 | | |
|
Omega common stockholders:
Omega Healthcare Investors, Inc. Attention: Investor Relations 200 International Circle, Suite 3500 Hunt Valley, MD 21030 (410) 427-1700 www.omegahealthcare.com |
| |
Aviv common stockholders:
Aviv REIT, Inc. Attention: Investor Relations 303 West Madison Street, Suite 2400 Chicago, Illinois 60606 (312) 855-0930 www.avivreit.com |
|
|
Omega common stockholders:
|
| |
Aviv common stockholders:
|
|
| | |
Omega Healthcare Investors, Inc.
|
||||||||||||||||||||||||||||||||||||||
| | |
Year ended December 31,
|
| |
Nine Months Ended
September 30, |
|||||||||||||||||||||||||||||||||||
| | |
2009
|
| |
2010
|
| |
2011
|
| |
2012
|
| |
2013
|
| |
2013
|
| |
2014
|
||||||||||||||||||||
| | |
(in thousands)
|
||||||||||||||||||||||||||||||||||||||
Operating data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues from core operations
|
| | | $ | 179,008 | | | | | $ | 250,985 | | | | | $ | 292,204 | | | | | $ | 350,460 | | | | | $ | 418,714 | | | | | $ | 307,577 | | | | | $ | 373,466 |
Revenues from nursing home operations(1)
|
| | | | 18,430 | | | | | | 7,336 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — |
Total revenues
|
| | | $ | 197,438 | | | | | $ | 258,321 | | | | | $ | 292,204 | | | | | $ | 350,460 | | | | | $ | 418,714 | | | | | $ | 307,577 | | | | | $ | 373,466 |
Interest expense(2)
|
| | | $ | 39,075 | | | | | $ | 90,602 | | | | | $ | 86,899 | | | | | $ | 106,096 | | | | | $ | 92,048 | | | | | $ | 66,083 | | | | | $ | 93,580 |
Income from continuing operations
|
| | | | 82,111 | | | | | | 58,436 | | | | | | 52,606 | | | | | | 120,698 | | | | | | 172,521 | | | | | | 125,315 | | | | | | 164,359 |
Net income available to common stockholders
|
| | | | 73,025 | | | | | | 49,350 | | | | | | 47,459 | | | | | | 120,698 | | | | | | 172,521 | | | | | | 125,315 | | | | | | 164,359 |
Other financial data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | $ | 44,694 | | | | | $ | 84,623 | | | | | $ | 100,337 | | | | | $ | 112,983 | | | | | $ | 128,646 | | | | | $ | 96,386 | | | | | $ | 92,856 |
Funds from operations(3)
|
| | | | 117,125 | | | | | | 134,132 | | | | | | 172,470 | | | | | | 222,154 | | | | | | 302,733 | | | | | | 222,852 | | | | | | 258,012 |
Adjusted EBITDA(4)
|
| | | | 170,375 | | | | | | 236,347 | | | | | | 278,849 | | | | | | 334,329 | | | | | | 401,704 | | | | | | 295,888 | | | | | | 360,706 |
| | |
December 31,
|
| |
September 30, 2014
|
| | ||||||||||||||||||||||||||||||||
| | |
2009
|
| |
2010
|
| |
2011
|
| |
2012
|
| |
2013
|
| | |||||||||||||||||||||||
| | |
(in thousands)
|
| | |||||||||||||||||||||||||||||||||||
Consolidated balance sheet data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross investments(5)
|
| | | $ | 1,803,743 | | | | | $ | 2,504,818 | | | | | $ | 2,831,132 | | | | | $ | 3,325,533 | | | | | $ | 3,924,917 | | | | | $ | 4,386,155 | | | | ||
Total assets
|
| | | | 1,655,033 | | | | | | 2,304,007 | | | | | | 2,557,312 | | | | | | 2,982,005 | | | | | | 3,462,216 | | | | | | 3,857,502 | | | | ||
Revolving line of credit
|
| | | | 94,100 | | | | | | — | | | | | | 272,500 | | | | | | 158,000 | | | | | | 326,000 | | | | | | 3,000 | | | | ||
Term loan
|
| | | | — | | | | | | — | | | | | | — | | | | | | 100,000 | | | | | | 200,000 | | | | | | 200,000 | | | | ||
Other long-term borrowings
|
| | | | 644,049 | | | | | | 1,176,965 | | | | | | 1,278,900 | | | | | | 1,566,932 | | | | | | 1,498,418 | | | | | | 2,098,380 | | | | ||
Total debt(6)
|
| | | | 738,149 | | | | | | 1,176,965 | | | | | | 1,551,400 | | | | | | 1,824,932 | | | | | | 2,024,418 | | | | | | 2,301,380 | | | | ||
Stockholders’ equity
|
| | | | 865,227 | | | | | | 1,004,066 | | | | | | 878,484 | | | | | | 1,011,329 | | | | | | 1,300,103 | | | | | | 1,406,377 | | | |
| | |
Year ended December 31,
|
| |
Nine Months Ended
September 30, |
||||||||||||||||||||||||||||||||||||||||||
| | |
2009
|
| |
2010
|
| |
2011
|
| |
2012
|
| |
2013
|
| |
2013
|
| |
2014
|
|||||||||||||||||||||||||||
| | |
(in thousands)
|
|||||||||||||||||||||||||||||||||||||||||||||
Net income available to common stockholders
|
| | | $ | 73,025 | | | | | $ | 49,350 | | | | | $ | 47,459 | | | | | $ | 120,698 | | | | | $ | 172,521 | | | | | $ | 125,315 | | | | | $ | 164,359 | |||||||
(Deduct gain) add back loss from real estate dispositions
|
| | | | (753) | | | | | | 4 | | | | | | (1,670) | | | | | | (11,799) | | | | | | 1,151 | | | | | | 1,151 | | | | | | (2,863) | |||||||
| | | | $ | 72,272 | | | | | $ | 49,354 | | | | | $ | 45,789 | | | | | $ | 108,899 | | | | | $ | 173,672 | | | | | $ | 126,466 | | | | | $ | 161,496 | |||||||
Elimination of non-cash items included
in net income: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||
Depreciation and amortization
|
| | | | 44,694 | | | | | | 84,623 | | | | | | 100,337 | | | | | | 112,983 | | | | | | 128,646 | | | | | | 96,386 | | | | | | 92,856 | |||||||
Add back impairments on real estate
properties |
| | | | 159 | | | | | | 155 | | | | | | 26,344 | | | | | | 272 | | | | | | 415 | | | | | | — | | | | | | 3,660 | |||||||
Funds from operations available to common shareholders
|
| | | $ | 117,125 | | | | | $ | 134,132 | | | | | $ | 172,470 | | | | | $ | 222,154 | | | | | $ | 302,733 | | | | | $ | 222,852 | | | | | $ | 258,012 | |||||||
|
| | |
Year ended December 31,
|
| |
Nine Months Ended
September 30, |
||||||||||||||||||||||||||||||||||||||||||
| | |
2009
|
| |
2010
|
| |
2011
|
| |
2012
|
| |
2013
|
| |
2013
|
| |
2014
|
|||||||||||||||||||||||||||
| | |
(in thousands)
|
| |
(in thousands)
|
||||||||||||||||||||||||||||||||||||||||||
Net income
|
| | | $ | 82,111 | | | | | $ | 58,436 | | | | | $ | 52,606 | | | | | $ | 120,698 | | | | | $ | 172,521 | | | | | $ | 125,315 | | | | | $ | 164,359 | |||||||
Depreciation and amortization
|
| | | | 44,694 | | | | | | 84,623 | | | | | | 100,337 | | | | | | 112,983 | | | | | | 128,646 | | | | | | 96,386 | | | | | | 92,856 | |||||||
Interest expense(1)
|
| | | | 39,075 | | | | | | 90,602 | | | | | | 86,899 | | | | | | 106,096 | | | | | | 92,048 | | | | | | 66,083 | | | | | | 93,580 | |||||||
EBITDA
|
| | | $ | 165,880 | | | | | $ | 233,661 | | | | | $ | 239,842 | | | | | $ | 339,777 | | | | | $ | 393,215 | | | | | $ | 287,784 | | | | | $ | 350,795 | |||||||
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||
Nursing home revenues
|
| | | | (18,430) | | | | | | (7,336) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |||||||
Nursing home expenses
|
| | | | 20,632 | | | | | | 7,998 | | | | | | 653 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |||||||
Litigation settlement
|
| | | | (4,527) | | | | | | (1,111) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |||||||
Acquisition costs
|
| | | | 1,561 | | | | | | 1,554 | | | | | | 1,204 | | | | | | 909 | | | | | | 245 | | | | | | 134 | | | | | | 399 | |||||||
(Gain) loss on assets sold-net
|
| | | | (753) | | | | | | 4 | | | | | | (1,670) | | | | | | (11,799) | | | | | | 1,151 | | | | | | 1,151 | | | | | | (2,863) | |||||||
Deduct revenue from unamortized securities discount
|
| | | | — | | | | | | (789) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |||||||
One-time cash revenue
|
| | | | — | | | | | | — | | | | | | — | | | | | | (536) | | | | | | (1,405) | | | | | | — | | | | | | (585) | |||||||
One-time non-cash deferred mortgage
interest income |
| | | | — | | | | | | — | | | | | | — | | | | | | (236) | | | | | | — | | | | | | — | | | | | | — | |||||||
Provisions for real estate impairment
|
| | | | 159 | | | | | | 155 | | | | | | 26,344 | | | | | | 272 | | | | | | 415 | | | | | | — | | | | | | 3,660 | |||||||
Provisions for uncollectible mortgages, notes and accounts receivable
|
| | | | 3,935 | | | | | | — | | | | | | 6,439 | | | | | | — | | | | | | 2,141 | | | | | | 2,386 | | | | | | 2,730 | |||||||
Restricted stock amortization expense
|
| | | | 1,918 | | | | | | 2,211 | | | | | | 6,037 | | | | | | 5,942 | | | | | | 5,942 | | | | | | 4,433 | | | | | | 6,570 | |||||||
Adjusted EBITDA
|
| | | $ | 170,375 | | | | | $ | 236,347 | | | | | $ | 278,849 | | | | | $ | 334,329 | | | | | $ | 401,704 | | | | | $ | 295,888 | | | | | $ | 360,706 | |||||||
|
| | |
Aviv REIT, Inc.
|
| |||||||||||||||||||||||||||||||||||||||
| | |
Year ended December 31,
|
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||||||||||||||||||||
Operating data:
|
| |
2009
|
| |
2010
|
| |
2011
|
| |
2012
|
| |
2013
|
| |
2013
|
| |
2014
|
| |||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||||||||
Total revenues
|
| | | $ | 84,888 | | | | | $ | 89,402 | | | | | $ | 97,128 | | | | | $ | 126,972 | | | | | $ | 141,067 | | | | | $ | 102,606 | | | | | $ | 132,436 | | |
Interest expense
|
| | | | 27,069 | | | | | | 23,730 | | | | | | 38,667 | | | | | | 50,983 | | | | | | 44,244 | | | | | | 32,115 | | | | | | 39,433 | | |
Depreciation and amortization
|
| | | | 16,920 | | | | | | 17,246 | | | | | | 20,272 | | | | | | 26,892 | | | | | | 33,226 | | | | | | 24,399 | | | | | | 31,470 | | |
Income from continuing operations
|
| | | | 32,889 | | | | | | 37,326 | | | | | | 11,547 | | | | | | 4,007 | | | | | | 23,071 | | | | | | 12,031 | | | | | | 31,951 | | |
Net income
|
| | | | 33,681 | | | | | | 37,982 | | | | | | 11,313 | | | | | | 8,593 | | | | | | 23,071 | | | | | | 12,031 | | | | | | 31,951 | | |
Distributions and accretion on Class E Preferred Units
|
| | | | (14,570) | | | | | | (17,372) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income allocable to noncontrolling interests/
limited partnership units of the Partnership |
| | | | (19,111) | | | | | | (16,780) | | | | | | (5,107) | | | | | | (3,455) | | | | | | (6,010) | | | | | | (3,236) | | | | | | (6,662) | | |
Net income allocable to stockholders
|
| | | | — | | | | | | 3,830 | | | | | | 6,206 | | | | | | 5,138 | | | | | | 17,061 | | | | | | 8,795 | | | | | | 25,289 | | |
| | |
Year ended December 31,
|
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||||||||||||||
Balance Sheet data:
|
| |
2009
|
| |
2010
|
| |
2011
|
| |
2012
|
| |
2013
|
| |
2014
|
| ||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
Gross real estate investments
|
| | | $ | 636,409 | | | | | $ | 703,049 | | | | | $ | 919,384 | | | | | $ | 1,102,832 | | | | | $ | 1,310,790 | | | | | $ | 1,714,898 | | |
Loan receivables, net
|
| | | | 28,970 | | | | | | 36,610 | | | | | | 33,031 | | | | | | 32,639 | | | | | | 41,686 | | | | | | 43,272 | | |
Total assets
|
| | | | 665,130 | | | | | | 731,400 | | | | | | 951,421 | | | | | | 1,099,529 | | | | | | 1,330,433 | | | | | | 1,677,488 | | |
Debt | | | | | 480,105 | | | | | | 440,576 | | | | | | 600,474 | | | | | | 705,153 | | | | | | 686,406 | | | | | | 840,888 | | |
Stockholders’ equity
|
| | | | — | | | | | | 223,767 | | | | | | 241,712 | | | | | | 326,568 | | | | | | 434,292 | | | | | | 610,383 | | |
Noncontrolling interests
|
| | | | 1,177 | | | | | | 21,389 | | | | | | 5,547 | | | | | | (6,065) | | | | | | 134,153 | | | | | | 147,857 | | |
Total equity
|
| | | | 74,562 | | | | | | 245,156 | | | | | | 247,259 | | | | | | 320,503 | | | | | | 568,445 | | | | | | 758,240 | | |
| | |
Year ended December 31,
|
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||||||||||||||||||||
Other Information
|
| |
2009
|
| |
2010
|
| |
2011
|
| |
2012
|
| |
2013
|
| |
2013
|
| |
2014
|
| |||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||||||||
FFO(1) | | | | $ | 50,601 | | | | | $ | 54,812 | | | | | $ | 35,647 | | | | | $ | 42,177 | | | | | $ | 55,781 | | | | | $ | 36,404 | | | | | $ | 68,220 | | |
Normalized FFO(1)
|
| | | | 51,054 | | | | | | 56,505 | | | | | | 46,459 | | | | | | 55,995 | | | | | | 70,156 | | | | | | 49,295 | | | | | | 75,745 | | |
AFFO(1) | | | | | 43,523 | | | | | | 52,408 | | | | | | 50,197 | | | | | | 52,085 | | | | | | 79,520 | | | | | | 58,646 | | | | | | 78,332 | | |
EBITDA | | | | | 77,639 | | | | | | 78,931 | | | | | | 70,241 | | | | | | 86,464 | | | | | | 100,540 | | | | | | 68,544 | | | | | | 102,853 | | |
Adjusted EBITDA(1)
|
| | | | 78,498 | | | | | | 84,743 | | | | | | 94,180 | | | | | | 110,215 | | | | | | 128,762 | | | | | | 95,226 | | | | | | 120,159 | | |
Ratio of earnings to fixed charges(2)
|
| | | | 2.23x | | | | | | 2.60x | | | | | | 1.29x | | | | | | 1.17x | | | | | | 1.51x | | | | | | 1.37x | | | | | | 1.80x | | |
| | |
Year ended December 31,
|
| |
Nine Months Ended
September 30, |
| |||||||||||||||||||||||||||||||||||||||||||
Funds from Operation
|
| |
2009
|
| |
2010
|
| |
2011
|
| |
2012
|
| |
2013
|
| |
2013
|
| |
2014
|
| ||||||||||||||||||||||||||||
| | |
(in thousands)
|
| ||||||||||||||||||||||||||||||||||||||||||||||
Net Income
|
| | | $ | 33,681 | | | | | $ | 37,982 | | | | | $ | 11,313 | | | | | $ | 8,593 | | | | | $ | 23,071 | | | | | $ | 12,031 | | | | | $ | 31,951 | | | |||||||
Depreciation and amortization
|
| | | | 16,920 | | | | | | 17,246 | | | | | | 20,272 | | | | | | 26,892 | | | | | | 33,226 | | | | | | 24,399 | | | | | | 31,470 | | | |||||||
Loss on impairment
|
| | | | — | | | | | | 96 | | | | | | 5,233 | | | | | | 11,117 | | | | | | 500 | | | | | | — | | | | | | 2,341 | | | |||||||
(Gain) loss on sale of assets, net
|
| | | | — | | | | | | (512) | | | | | | (1,171) | | | | | | (4,425) | | | | | | (1,016) | | | | | | (26) | | | | | | 2,458 | | | |||||||
Funds from Operations
|
| | | | 50,601 | | | | | | 54,812 | | | | | | 35,647 | | | | | | 42,177 | | | | | | 55,781 | | | | | | 36,404 | | | | | | 68,220 | | | |||||||
Loss on extinguishment of debt
|
| | | | — | | | | | | 2,296 | | | | | | 3,807 | | | | | | 28 | | | | | | 10,974 | | | | | | 10,974 | | | | | | 501 | | | |||||||
Reserve for uncollectible loan
receivables |
| | | | — | | | | | | 750 | | | | | | 1,512 | | | | | | 6,531 | | | | | | 11 | | | | | | 11 | | | | | | 3,211 | | | |||||||
Transaction costs
|
| | | | 7,441 | | | | | | 1,578 | | | | | | 5,493 | | | | | | 7,259 | | | | | | 3,114 | | | | | | 1,906 | | | | | | 3,813 | | | |||||||
Severance costs
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 276 | | | | | | — | | | | | | — | | | |||||||
Change in fair value of derivatives
|
| | | | (6,988) | | | | | | (2,931) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | |||||||
Normalized Funds from Operations
|
| | | | 51,054 | | | | | | 56,505 | | | | | | 46,459 | | | | | | 55,995 | | | | | | 70,156 | | | | | | 49,295 | | | | | | 75,745 | | | |||||||
Amortization of deferred financing
costs |
| | | | 550 | | | | | | 1,008 | | | | | | 2,665 | | | | | | 3,543 | | | | | | 3,459 | | | | | | 2,516 | | | | | | 2,944 | | | |||||||
Non-cash stock(unit)-based compensation
|
| | | | 406 | | | | | | 1,632 | | | | | | 1,972 | | | | | | 1,689 | | | | | | 11,752 | | | | | | 10,930 | | | | | | 3,602 | | | |||||||
Straight-line rental income, net
|
| | | | (6,389) | | | | | | (3,056) | | | | | | 467 | | | | | | (7,656) | | | | | | (4,478) | | | | | | (2,998) | | | | | | (3,420) | | | |||||||
Rental income from intangible amortization, net
|
| | | | (2,098) | | | | | | (3,681) | | | | | | (1,366) | | | | | | (1,486) | | | | | | (1,369) | | | | | | (1,097) | | | | | | (539) | | | |||||||
AFFO
|
| | | $ | 43,523 | | | | | $ | 52,408 | | | | | $ | 50,197 | | | | | $ | 52,085 | | | | | $ | 79,520 | | | | | $ | 58,646 | | | | | $ | 78,332 | | | |||||||
|
| | |
Year ended December 31,
|
| |
Nine Months Ended
September 30, |
| |||||||||||||||||||||||||||||||||||||||||||
EBITDA
|
| |
2009
|
| |
2010
|
| |
2011
|
| |
2012
|
| |
2013
|
| |
2013
|
| |
2014
|
| ||||||||||||||||||||||||||||
| | |
(in thousands)
|
| ||||||||||||||||||||||||||||||||||||||||||||||
Net income
|
| | | $ | 33,681 | | | | | $ | 37,982 | | | | | $ | 11,313 | | | | | $ | 8,593 | | | | | $ | 23,071 | | | | | $ | 12,031 | | | | | $ | 31,951 | | | |||||||
Interest expense, net
|
| | | | 26,488 | | | | | | 22,695 | | | | | | 35,991 | | | | | | 47,436 | | | | | | 40,784 | | | | | | 29,598 | | | | | | 36,488 | | | |||||||
Amortization of deferred financing costs
|
| | | | 550 | | | | | | 1,008 | | | | | | 2,665 | | | | | | 3,543 | | | | | | 3,459 | | | | | | 2,516 | | | | | | 2,944 | | | |||||||
Depreciation and amortization
|
| | | | 16,920 | | | | | | 17,246 | | | | | | 20,272 | | | | | | 26,892 | | | | | | 33,226 | | | | | | 24,399 | | | | | | 31,470 | | | |||||||
EBITDA | | | | | 77,639 | | | | | | 78,931 | | | | | | 70,241 | | | | | | 86,464 | | | | | | 100,540 | | | | | | 68,544 | | | | | | 102,853 | | | |||||||
Loss on impairment
|
| | | | — | | | | | | 96 | | | | | | 5,233 | | | | | | 11,117 | | | | | | 500 | | | | | | — | | | | | | 2,341 | | | |||||||
(Gain) loss on sale of assets, net
|
| | | | — | | | | | | (512) | | | | | | (1,171) | | | | | | (4,425) | | | | | | (1,016) | | | | | | (26) | | | | | | 2,458 | | | |||||||
Transaction costs
|
| | | | 7,441 | | | | | | 1,578 | | | | | | 5,493 | | | | | | 7,259 | | | | | | 3,114 | | | | | | 1,906 | | | | | | 3,813 | | | |||||||
Write off of straight-line rents
|
| | | | — | | | | | | 2,903 | | | | | | 7,093 | | | | | | 1,552 | | | | | | 2,887 | | | | | | 2,887 | | | | | | 1,380 | | | |||||||
Non-cash stock (unit)-based compensation
|
| | | | 406 | | | | | | 1,632 | | | | | | 1,972 | | | | | | 1,689 | | | | | | 11,752 | | | | | | 10,930 | | | | | | 3,602 | | | |||||||
Loss on extinguishment of debt
|
| | | | — | | | | | | 2,296 | | | | | | 3,807 | | | | | | 28 | | | | | | 10,974 | | | | | | 10,974 | | | | | | 501 | | | |||||||
Reserve for uncollectible loan receivables
|
| | | | — | | | | | | 750 | | | | | | 1,512 | | | | | | 6,531 | | | | | | 11 | | | | | | 11 | | | | | | 3,211 | | | |||||||
Change in fair value of derivatives
|
| | | | (6,988) | | | | | | (2,931) | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | | | | |||||||
Adjusted EBITDA
|
| | | $ | 78,498 | | | | | $ | 84,743 | | | | | $ | 94,180 | | | | | $ | 110,215 | | | | | $ | 128,762 | | | | | $ | 95,226 | | | | | $ | 120,159 | | | |||||||
|
| | |
As of September 30, 2014
|
| ||||||||||||||||||||||||||||||||
| | |
Omega
Historical |
| |
Pro Forma
Adjustments |
| |
Acquisition
of Aviv |
| |
Notes
|
| |
Pro Forma
Combined |
| ||||||||||||||||||||
| | |
A
|
| |
B
|
| |
C
|
| | | | | | | | | | | | | ||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Real estate properties | | | | | | | ||||||||||||||||||||||||||||||
Land and buildings
|
| | | $ | 3,143,356 | | | | | $ | — | | | | | $ | 2,872,647 | | | | | | D | | | | | $ | 6,016,003 | | | |||||
Less accumulated depreciation
|
| | | | (794,105) | | | | | | — | | | | | | — | | | | | | | | | | | | (794,105) | | | |||||
Real estate properties – net
|
| | | | 2,349,251 | | | | | | — | | | | | | 2,872,647 | | | | | | D | | | | | | 5,221,898 | | | |||||
Investment in direct financing leases
|
| | | | 536,687 | | | | | | — | | | | | | 13,480 | | | | | | E | | | | | | 550,167 | | | |||||
Mortgage notes receivables – net
|
| | | | 647,590 | | | | | | — | | | | | | 27,684 | | | | | | E | | | | | | 675,274 | | | |||||
| | | | | 3,533,528 | | | | | | — | | | | | | 2,913,811 | | | | | | | | | | | | 6,447,339 | | | |||||
Other investments – net
|
| | | | 51,852 | | | | | | — | | | | | | 15,588 | | | | | | E | | | | | | 67,440 | | | |||||
| | | | | 3,585,380 | | | | | | — | | | | | | 2,929,399 | | | | | | | | | | | | 6,514,779 | | | |||||
Assets held for sale – net
|
| | | | 6,670 | | | | | | — | | | | | | — | | | | | | | | | | | | 6,670 | | | |||||
Total investments
|
| | | | 3,592,050 | | | | | | — | | | | | | 2,929,399 | | | | | | | | | | | | 6,521,449 | | | |||||
Cash and cash equivalents
|
| | | | 452 | | | | | | — | | | | | | 13,534 | | | | | | F | | | | | | 13,986 | | | |||||
Restricted cash
|
| | | | 31,821 | | | | | | — | | | | | | — | | | | | | | | | | | | 31,821 | | | |||||
Accounts receivable – net
|
| | | | 162,628 | | | | | | — | | | | | | 2,011 | | | | | | F | | | | | | 164,639 | | | |||||
Other assets
|
| | | | 70,551 | | | | | | 3,984 | | | | | | 24,288 | | | | | | F | | | | | | 98,823 | | | |||||
Goodwill
|
| | | | — | | | | | | — | | | | | | 499,173 | | | | | | G | | | | | | 499,173 | | | |||||
Total assets
|
| | | $ | 3,857,502 | | | | | $ | 3,984 | | | | | $ | 3,468,405 | | | | | | | | | | | $ | 7,329,891 | | | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | | | | ||||||||||||||||||||||||||||||
Revolving debt
|
| | | $ | 3,000 | | | | | $ | — | | | | | $ | 1,073,046 | | | | | | H | | | | | $ | 1,076,046 | | | |||||
Term loan
|
| | | | 200,000 | | | | | | — | | | | | | — | | | | | | | | | | | | 200,000 | | | |||||
Secured borrowings
|
| | | | 256,403 | | | | | | — | | | | | | 180,000 | | | | | | I | | | | | | 436,403 | | | |||||
Unsecured borrowings – net
|
| | | | 1,841,977 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,841,977 | | | |||||
Accounts payable and other liabilities
|
| | | | 149,745 | | | | | | 3,984 | | | | | | 92,713 | | | | | | J | | | | | | 246,442 | | | |||||
Total liabilities
|
| | | | 2,451,125 | | | | | | 3,984 | | | | | | 1,345,759 | | | | | | | | | | | | 3,800,868 | | | |||||
Equity | | | | | | | ||||||||||||||||||||||||||||||
Stockholders’ equity
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Common stock
|
| | | | 12,741 | | | | | | — | | | | | | 4,549 | | | | | | K | | | | | | 17,290 | | | |||||
Common stock – additional paid-in capital
|
| | | | 2,131,033 | | | | | | — | | | | | | 1,772,953 | | | | | | L | | | | | | 3,903,986 | | | |||||
Cumulative net earnings
|
| | | | 1,091,008 | | | | | | — | | | | | | (56,300) | | | | | | M | | | | | | 1,034,708 | | | |||||
Cumulative dividends paid
|
| | | | (1,828,405) | | | | | | — | | | | | | — | | | | | | | | | | | | (1,828,405) | | | |||||
Total stockholders’ equity
|
| | | | 1,406,377 | | | | | | — | | | | | | 1,721,202 | | | | | | | | | | | | 3,127,579 | | | |||||
Noncontrolling interest – operating partnership
|
| | | | — | | | | | | — | | | | | | 401,444 | | | | | | N | | | | | | 401,444 | | | |||||
Total equity
|
| | | | 1,406,377 | | | | | | — | | | | | | 2,122,646 | | | | | | | | | | | | 3,529,023 | | | |||||
Total liabilities and equity
|
| | | $ | 3,857,502 | | | | | $ | 3,984 | | | | | $ | 3,468,405 | | | | | | | | | | | $ | 7,329,891 | | | |||||
|
| | |
Year Ended December 31, 2013
|
| ||||||||||||||||||||||||||||||
| | |
Omega
Historical |
| |
Omega
Pro Forma Adjustment |
| |
Aviv
Historical |
| |
Aviv
Pro Forma Adjustments |
| |
Notes
|
| |
Pro Forma
Combined |
| |||||||||||||||
| | |
AA
|
| |
BB
|
| |
CC
|
| | | | | | | | | | | | | | | | |||||||||
Revenue: | | | | | | | | |||||||||||||||||||||||||||
Rental income
|
| | | $ | 375,135 | | | | | $ | — | | | | | $ | 136,513 | | | | | $ | 36,077 | | | |
DD
|
| | | $ | 547,725 | | |
Income from investments in direct financing leases
|
| | | | 5,203 | | | | | | — | | | | | | 1,456 | | | | | | — | | | | | | | | | 6,659 | | |
Mortgage interest income
|
| | | | 29,351 | | | | | | — | | | | | | 2,944 | | | | | | — | | | | | | | | | 32,295 | | |
Other investment income – net
|
| | | | 9,025 | | | | | | — | | | | | | 154 | | | | | | — | | | | | | | | | 9,179 | | |
Total operating revenue
|
| | | | 418,714 | | | | | | — | | | | | | 141,067 | | | | | | 36,077 | | | | | | | | | 595,858 | | |
Expenses: | | | | | | | | |||||||||||||||||||||||||||
Depreciation and amortization
|
| | | | 128,646 | | | | | | — | | | | | | 33,226 | | | | | | 41,797 | | | |
EE
|
| | | | 203,669 | | |
General and administrative
|
| | | | 21,588 | | | | | | — | | | | | | 26,886 | | | | | | — | | | | | | | | | 48,474 | | |
Acquisition costs
|
| | | | 245 | | | | | | — | | | | | | 3,114 | | | | | | — | | | | | | | | | 3,359 | | |
Impairment on real estate properties
|
| | | | 415 | | | | | | — | | | | | | 500 | | | | | | — | | | | | | | | | 915 | | |
Provisions for uncollectable mortgages, notes and accounts receivable
|
| | | | 2,141 | | | | | | — | | | | | | 68 | | | | | | — | | | | | | | | | 2,209 | | |
Total operating expenses
|
| | | | 153,035 | | | | | | — | | | | | | 63,794 | | | | | | 41,797 | | | | | | | | | 258,626 | | |
Income before other income and expense
|
| | | | 265,679 | | | | | | — | | | | | | 77,273 | | | | | | (5,720) | | | | | | | | | 337,232 | | |
Other income (expense): | | | | | | | | |||||||||||||||||||||||||||
Interest income
|
| | | | 41 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | 41 | | |
Interest expense
|
| | | | (100,381) | | | | | | — | | | | | | (40,785) | | | | | | 14,806 | | | |
FF
|
| | | | (126,360) | | |
Interest – amortization of deferred financing costs
|
| | | | (2,779) | | | | | | (996) | | | | | | (3,459) | | | | | | 3,459 | | | |
GG
|
| | | | (3,775) | | |
Interest – refinancing gain (costs)
|
| | | | 11,112 | | | | | | — | | | | | | (10,974) | | | | | | 10,974 | | | |
HH
|
| | | | 11,112 | | |
Total other expense
|
| | | | (92,007) | | | | | | (996) | | | | | | (55,218) | | | | | | 29,239 | | | | | | | | | (118,982) | | |
Income before gain (loss) on assets sold
|
| | | | 173,672 | | | | | | (996) | | | | | | 22,055 | | | | | | 23,519 | | | | | | | | | 218,250 | | |
Gain/(loss) on assets sold – net
|
| | | | (1,151) | | | | | | — | | | | | | 1,016 | | | | | | — | | | | | | | | | (135) | | |
Net income
|
| | | | 172,521 | | | | | | (996) | | | | | | 23,071 | | | | | | 23,519 | | | | | | | | | 218,115 | | |
Net income allocable to noncontrolling interest – operating partnerships
|
| | | | — | | | | | | — | | | | | | (6,010) | | | | | | (6,117) | | | |
II
|
| | | | (12,127) | | |
Net income allocable to stockholders
|
| | | $ | 172,521 | | | | | $ | (996) | | | | | $ | 17,061 | | | | | $ | 17,402 | | | | | | | | $ | 205,988 | | |
Per Share – Basic: | | | | | | | | |||||||||||||||||||||||||||
Weighted average shares – basic
|
| | | | 117,257 | | | | | | | | | | | | 33,701 | | | | | | 11,794 | | | |
JJ
|
| | | | 162,752 | | |
Net income allocable to stockholders
|
| | | $ | 1.47 | | | | | | | | | | | $ | 0.51 | | | | | | | | | | | | | | $ | 1.27 | | |
Per Share – Diluted: | | | | | | | | |||||||||||||||||||||||||||
Weighted average shares – diluted
|
| | | | 118,100 | | | | | | | | | | | | 44,324 | | | | | | 11,446 | | | |
JJ
|
| | | | 173,870 | | |
Net income allocable to stockholders
|
| | | $ | 1.46 | | | | | | | | | | | $ | 0.49 | | | | | | | | | | | | | | $ | 1.25 | | |
| | |
Nine Months Ended September 30, 2014
|
| ||||||||||||||||||||||||||||||
| | |
Omega
Historical |
| |
Omega
Pro Forma Adjustment |
| |
Aviv
Historical |
| |
Aviv
Pro Forma Adjustments |
| |
Notes
|
| |
Pro Forma
Combined |
| |||||||||||||||
| | |
AA
|
| |
BB
|
| |
CC
|
| | | | | | | | | | | | | | | | |||||||||
Revenue: | | | | | | | | |||||||||||||||||||||||||||
Rental income
|
| | | $ | 289,696 | | | | | $ | — | | | | | $ | 127,941 | | | | | $ | 28,329 | | | |
DD
|
| | | $ | 445,966 | | |
Income from direct financing leases
|
| | | | 42,441 | | | | | | — | | | | | | 1,103 | | | | | | — | | | | | | | | 43,544 | | | |
Mortgage interest income
|
| | | | 36,132 | | | | | | — | | | | | | 2,160 | | | | | | — | | | | | | | | 38,292 | | | |
Other investment income – net
|
| | | | 5,197 | | | | | | — | | | | | | 1,232 | | | | | | — | | | | | | | | 6,429 | | | |
Total operating revenue
|
| | | | 373,466 | | | | | | — | | | | | | 132,436 | | | | | | 28,329 | | | | | | | | | 534,231 | | |
Expenses: | | | | | | | | |||||||||||||||||||||||||||
Depreciation and amortization
|
| | | | 92,856 | | | | | | — | | | | | | 31,470 | | | | | | 31,574 | | | |
EE
|
| | | | 155,900 | | |
General and administrative
|
| | | | 18,781 | | | | | | — | | | | | | 16,960 | | | | | | — | | | | | | | | 35,741 | | | |
Acquisition costs
|
| | | | 399 | | | | | | — | | | | | | 3,813 | | | | | | — | | | | | | | | 4,212 | | | |
Impairment on real estate properties
|
| | | | 3,660 | | | | | | — | | | | | | 2,341 | | | | | | — | | | | | | | | 6,001 | | | |
Provisions for uncollectable mortgages, notes and accounts receivable
|
| | | | 2,730 | | | | | | — | | | | | | 3,509 | | | | | | — | | | | | | | | 6,239 | | | |
Total operating expenses
|
| | | | 118,426 | | | | | | — | | | | | | 58,093 | | | | | | 31,574 | | | | | | | | | 208,093 | | |
Income before other income and expense
|
| | | | 255,040 | | | | | | — | | | | | | 74,343 | | | | | | (3,245) | | | | | | | | | 326,138 | | |
Other income (expense): | | | | | | | | |||||||||||||||||||||||||||
Interest income
|
| | | | 36 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | 36 | | | |
Interest expense
|
| | | | (87,401) | | | | | | — | | | | | | (36,489) | | | | | | 17,005 | | | |
FF
|
| | | | (106,885) | | |
Interest – amortization of deferred financing costs
|
| | | | (3,111) | | | | | | (747) | | | | | | (2,944) | | | | | | 2,944 | | | |
GG
|
| | | | (3,858) | | |
Interest – refinancing costs
|
| | | | (3,068) | | | | | | — | | | | | | (501) | | | | | | 501 | | | |
HH
|
| | | | (3,068) | | |
Total other expense
|
| | | | (93,544) | | | | | | (747) | | | | | | (39,934) | | | | | | 20,450 | | | | | | | | | (113,775) | | |
Income before gain (loss) on assets sold
|
| | | | 161,496 | | | | | | (747) | | | | | | 34,409 | | | | | | 17,205 | | | | | | | | | 212,363 | | |
Gain/(loss) on assets sold – net
|
| | | | 2,863 | | | | | | — | | | | | | (2,458) | | | | | | — | | | | | | | | 405 | | | |
Net income
|
| | | | 164,359 | | | | | | (747) | | | | | | 31,951 | | | | | | 17,205 | | | | | | | | | 212,768 | | |
Net income allocable to noncontrolling interest – operating partnerships
|
| | | | — | | | | | | — | | | | | | (6,662) | | | | | | (5,168) | | | |
II
|
| | | | (11,830) | | |
Net income allocable to stockholders
|
| | | $ | 164,359 | | | | | $ | (747) | | | | | $ | 25,289 | | | | | $ | 12,037 | | | | | | | | $ | 200,938 | | |
Per Share – Basic: | | | | | | | | |||||||||||||||||||||||||||
Weighted average shares – basic
|
| | | | 126,132 | | | | | | | | | | | | 43,577 | | | | | | 1,918 | | | |
JJ
|
| | | | 171,627 | | |
Net income available to stockholders
|
| | | $ | 1.30 | | | | | | | | | | | $ | 0.58 | | | | | | | | | | | | | | $ | 1.17 | | |
Per Share – Diluted: | | | | | | | | |||||||||||||||||||||||||||
Weighted average shares – diluted
|
| | | | 126,895 | | | | | | | | | | | | 57,128 | | | | | | (1,358) | | | |
JJ
|
| | | | 182,665 | | |
Net income available to stockholders
|
| | | $ | 1.30 | | | | | | | | | | | $ | 0.56 | | | | | | | | | | | | | | $ | 1.16 | | |
|
Preliminary estimated fair value of real estate properties acquired
|
| | | $ | 2,872,647 | | | |
|
Preliminary estimated fair value of direct financing leases acquired
|
| | | | 13,480 | | | |
|
Preliminary estimated fair value of mortgages notes acquired
|
| | | | 27,684 | | | |
|
Preliminary estimated fair value of other investments acquired
|
| | | | 15,588 | | | |
|
Total preliminary estimated fair value of investments acquired
|
| | | | 2,929,399 | | | |
|
Preliminary estimated fair value of other assets acquired, including goodwill
|
| | | | 539,006 | | | |
|
Total preliminary estimated fair value of total assets acquired
|
| | | $ | 3,468,405 | | | |
|
|
Estimated equity to be issued(1)
|
| | | $ | 1,777,502 | | | |
|
Estimated partnership units to be issued(1)
|
| | | | 401,444 | | | |
|
Estimated repayment of debt (see note H)
|
| | | | 1,016,746 | | | |
|
Assumption of debt (see note I)
|
| | | | 180,000 | | | |
|
Assumption of other liabilities
|
| | | | 92,713 | | | |
|
Total consideration to be given
|
| | | $ | 3,468,405 | | | |
|
| Land | | | | $ | 281,788 | | |
|
Building and improvements
|
| | | | 2,590,859 | | |
|
Real estate properties – net
|
| | | $ | 2,872,647 | | |
|
In-place lease intangibles
|
| | | $ | 154(a) | | |
|
Customer relationships
|
| | | | 236(a) | | |
|
Above market lease intangible
|
| | | | 15,072(a) | | |
| | | | | $ | 15,462 | | |
|
Below market lease liability
|
| | | $ | 21,074(b) | | |
|
Direct financing leases acquired
|
| | | $ | 13,480 |
|
Mortgages notes acquired
|
| | | $ | 27,684 |
|
Other investments acquired
|
| | | $ | 15,588 |
| | |
Year Ended
December 31, 2013 |
| |
Nine Months Ended
September 30, 2014 |
| ||||||||
Adjustment to reflect the impact of Aviv’s existing leases
|
| | | $ | 6,097 | | | | | $ | 5,752 | | | ||
Adjustment to reflect the impact of 28 facilities acquired on December 17, 2014 by Aviv
|
| | | | 29,391 | | | | | | 22,043 | | | ||
Adjustment to reflect (above)/below market leases assumed – net
|
| | | | 589 | | | | | | 534 | | | ||
| | | | $ | 36,077 | | | | | $ | 28,329 | | | ||
|
| | |
Year Ended
December 31, 2013 |
| |
Nine Months Ended
September 30, 2014 |
| ||||||||
Adjustment to reflect the impact of Aviv’s existing facilities
|
| | | $ | 31,587 | | | | | $ | 23,916 | | | ||
Adjustment to reflect the impact of 28 facilities acquired on December 17, 2014 by Aviv
|
| | | | 10,210 | | | | | | 7,658 | | | ||
| | | | $ | 41,797 | | | | | $ | 31,574 | | | ||
|
| | |
Omega
|
| |
Aviv
|
| ||||||||||||||||||
| | |
Historical
|
| |
Pro Forma
Combined |
| |
Adjusted
Historical |
| |
Pro Forma
Equivalent |
| ||||||||||||
For the nine months ended September 30, 2014 | | | | | | ||||||||||||||||||||
Income available to common stockholders | | | | | | ||||||||||||||||||||
Basic
|
| | | $ | 1.30 | | | | | $ | 1.17 | | | | | $ | 0.73 | | | | | $ | 1.05 | | |
Diluted
|
| | | $ | 1.30 | | | | | $ | 1.16 | | | | | $ | 0.70 | | | | | $ | 1.05 | | |
Dividends per share
|
| | | $ | 1.50 | | | | | $ | 1.38 | | | | | $ | 1.08 | | | | | $ | 1.24 | | |
Book value per share
|
| | | $ | 11.08 | | | | | $ | 19.32 | | | | | $ | 13.25 | | | | | $ | 17.39 | | |
| | |
Omega
|
| |
Aviv
|
| ||||||||||||||||||
| | |
Historical
|
| |
Pro Forma
Combined |
| |
Adjusted
Historical |
| |
Pro Forma
Equivalent |
| ||||||||||||
For the year ended December 31, 2013 | | | | | | ||||||||||||||||||||
Income per available to common stockholders | | | | | | ||||||||||||||||||||
Basic
|
| | | $ | 1.47 | | | | | $ | 1.27 | | | | | $ | 0.75 | | | | | $ | 1.14 | | |
Diluted
|
| | | $ | 1.46 | | | | | $ | 1.25 | | | | | $ | 0.74 | | | | | $ | 1.13 | | |
Dividends per share
|
| | | $ | 1.86 | | | | | $ | 1.70 | | | | | $ | 1.40 | | | | | $ | 1.53 | | |
Book value per share
|
| | | $ | 11.01 | | | | | | N/A | | | | | $ | 12.80 | | | | | $ | N/A | | |
| | |
Price Per Omega Common Share
|
| |
Distributions
Declared Per Omega Common Share |
| ||||||||||||
| | |
High
|
| |
Low
|
| ||||||||||||
2013 | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 30.36 | | | | | $ | 24.30 | | | | | $ | 0.45 | | |
Second Quarter
|
| | | $ | 37.61 | | | | | $ | 29.11 | | | | | $ | 0.46 | | |
Third Quarter
|
| | | $ | 34.15 | | | | | $ | 27.51 | | | | | $ | 0.47 | | |
Fourth Quarter
|
| | | $ | 33.89 | | | | | $ | 29.79 | | | | | $ | 0.48 | | |
2014 | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 33.65 | | | | | $ | 29.56 | | | | | $ | 0.49 | | |
Second Quarter
|
| | | $ | 38.10 | | | | | $ | 33.35 | | | | | $ | 0.50 | | |
Third Quarter
|
| | | $ | 38.68 | | | | | $ | 34.00 | | | | | $ | 0.51 | | |
Fourth Quarter
|
| | | $ | 40.29 | | | | | $ | 34.26 | | | | | $ | 0.52 | | |
2015 | | | | | |||||||||||||||
First Quarter (through )
|
| | | $ | | | | | $ | | | | | $ | | |
| | |
Omega
Common Shares |
| |||
October 30, 2014
|
| | | $ | 38.85 | | |
, 2015
|
| | | $ | | |
| | |
Price Per Aviv Common Share
|
| |
Distributions
Declared Per Aviv Common Share |
| ||||||||||||
| | |
High
|
| |
Low
|
| ||||||||||||
2013 | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 24.06 | | | | | $ | 22.55 | | | | | $ | N/A | | |
Second Quarter
|
| | | $ | 30.45 | | | | | $ | 23.70 | | | | | $ | 0.384 | | |
Third Quarter
|
| | | $ | 26.29 | | | | | $ | 21.64 | | | | | $ | 0.36 | | |
Fourth Quarter
|
| | | $ | 26.00 | | | | | $ | 22.80 | | | | | $ | 0.36 | | |
2014 | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 25.98 | | | | | $ | 23.00 | | | | | $ | 0.36 | | |
Second Quarter
|
| | | $ | 29.21 | | | | | $ | 24.22 | | | | | $ | 0.36 | | |
Third Quarter
|
| | | $ | 29.26 | | | | | $ | 26.35 | | | | | $ | 0.36 | | |
Fourth Quarter
|
| | | $ | 35.57 | | | | | $ | 26.29 | | | | | $ | | | |
2015 | | | | | | | | | | | | | | | | | | | |
First Quarter (through )
|
| | | $ | | | | | $ | | | | | $ | | |
| | |
Aviv
Common Shares |
| |||
October 30, 2014
|
| | | $ | 30.10 | | |
, 2015
|
| | | $ | | |
| | |
Price/2015E
FFO |
| |
Price/2015E
AFFO |
| |
Premium/Discount
to NAV |
| |||||||||
Street consensus estimates | | | | | | | | | | | | | | | | | | | |
LTC Properties, Inc.
|
| | | | 14.6x | | | | | | 14.8x | | | | | | 22.2% | | |
Medical Properties Trust, Inc.
|
| | | | 11.2x | | | | | | 11.4x | | | | | | 18.7% | | |
National Health Investors, Inc.
|
| | | | 14.6x | | | | | | 16.2x | | | | | | 42.6% | | |
Sabra Health Care REIT, Inc.
|
| | | | 10.8x | | | | | | 12.4x | | | | | | 19.9% | | |
CareTrust REIT, Inc.
|
| | | | 15.9x | | | | | | 15.1x | | | | | | 20.8% | | |
Omega Healthcare Investors, Inc.
|
| | | | 13.6x | | | | | | 14.3x | | | | | | 52.3% | | |
Aviv REIT, Inc.
|
| | | | 14.0x | | | | | | 13.3x | | | | | | 34.6% | | |
Management estimates | | | | | | | | | | | | | | | | | | | |
Omega Healthcare Investors, Inc.
|
| | | | 12.9x | | | | | | 13.9x | | | | | | — | | |
Aviv REIT, Inc.
|
| | | | 13.2x | | | | | | 13.1x | | | | | | — | | |
| | |
Aviv
|
| |
Omega
|
| ||||||
| | |
Comparable
Companies Range |
| |
Implied Share
Price Range |
| |
Comparable
Companies Range |
| |
Implied Share
Price Range |
|
Consensus Estimated 2015 FFO
|
| |
11.2x – 14.6x
|
| |
$23.83 – $31.00
|
| |
11.2x – 14.6x
|
| |
$32.48 – $42.25
|
|
Consensus Estimated 2015 AFFO
|
| |
12.4x – 15.1x
|
| |
$27.78 – $33.81
|
| |
12.4x – 15.1x
|
| |
$34.12 – $41.54
|
|
Consensus NAV
|
| |
21.5% – 52.3%
|
| |
$26.97 – $33.81
|
| |
21.5% – 43.5%
|
| |
$31.48 – $37.18
|
|
| | |
Implied Exchange Ratio Range
|
| |||
Consensus Estimated 2015 FFO
|
| | | | 0.56x – 0.95x | | |
Consensus Estimated 2015 AFFO
|
| | | | 0.67x – 0.99x | | |
Consensus NAV
|
| | | | 0.73x – 1.07x | | |
|
Implied Per Share Equity Value Reference Range
|
|
|
$31.13 to $37.82
|
|
|
Implied Per Share Equity Value Reference Range
|
|
|
$38.77 to $46.93
|
|
|
Implied Exchange Ratio Range
|
|
|
0.66x – 0.98x
|
|
Transaction Announcement Date
|
| |
Acquiror
|
| |
Target
|
|
August 2014 | | | Health Care REIT, Inc. | | | HealthLease Properties Real Estate Investment Trust | |
June 2014 | | | Ventas, Inc. | | | American Realty Capital Healthcare Trust, Inc. | |
December 2011 | | | Ventas, Inc. | | | Cogdell Spencer Inc. | |
February 2011 | | | Ventas, Inc. | | | Nationwide Health Properties, Inc. | |
January 2007 | | | Ventas, Inc. | | | Sunrise Senior Living REIT | |
September 2006 | | | Health Care REIT, Inc. | | | Windrose Medical Properties Trust | |
May 2006 | | |
Health Care Properties Investors, Inc.
|
| | CNL Retirement Properties, Inc. | |
November 2003 | | | Ventas, Inc. | | | ElderTrust | |
August 1999 | | |
Health Care Properties Investors, Inc.
|
| | American Health Properties, Inc. | |
June 1998 | | |
Healthcare Realty Trust Incorporated
|
| | Capstone Capital Corporation | |
|
Implied Per Share Equity Value Reference Range
|
| |
Implied Per Share Merger Consideration
|
|
|
$34.15 – $38.32
|
| |
0.87x – 0.97x
|
|
Contribution Analysis
|
| |
Implied Exchange Ratio
|
|
Estimated 2015 In-Place Cash Revenue
|
| |
0.94x
|
|
Estimated 2015 AFFO
|
| |
.80x – 0.91x
|
|
Reference Point
|
| |
Premium
|
| |||
10/29/14 Closing Price
|
| | | | 17.0% | | |
30 Trading Day Average Price (Ending 10/29/2014)
|
| | | | 25.5% | | |
52-week High (52-week Period Ending 10/29/2014)
|
| | | | 16.7% | | |
52-week Low (52-week Period Ending 10/29/2014)
|
| | | | 53.7% | | |
|
Aviv Shareholder Equity of Pro
Forma Combined Company |
| |
Implied Exchange Ratio
|
|
|
29.1% – 31.9%
|
| |
0.74 – 0.84
|
|
Ratio
|
| |
High
|
| |
Low
|
| |
Median
|
| |||||||||
EV/EBITDA (2014 – 2016)
|
| | |
|
18.8x
|
| | | |
|
10.7x
|
| | | |
|
14.3x
|
| |
P/AFFO (2014 – 2016)
|
| | |
|
17.3x
|
| | | |
|
10.5x
|
| | | |
|
14.2x
|
| |
P/FFO (2014 – 2016)
|
| | |
|
17.0x
|
| | | |
|
10.4x
|
| | | |
|
13.8x
|
| |
| | | | | | | | |
Aviv
Publicly Available Research |
| |
Forecasts
|
| |
Selected Companies
|
| |||||||||||||||||||||
|
High
|
| |
Low
|
| |
Median
|
| |||||||||||||||||||||||||||||
P/AFFO
|
| | | | 2014E | | | | | | 15.5x | | | | | | 15.6x | | | | | | 17.3x | | | | | | 12.6x | | | | | | 15.2x | | |
| | | 2015E | | | | | | 13.3x | | | | | | 13.1x | | | | | | 16.2x | | | | | | 11.5x | | | | | | 14.4x | | | ||
| | | 2016E | | | | | | N/A | | | | | | 12.4x | | | | | | 14.4x | | | | | | 10.5x | | | | | | 13.9x | | | ||
P/FFO
|
| | | | 2014E | | | | | | 15.9x | | | | | | 16.0x | | | | | | 17.0x | | | | | | 12.7x | | | | | | 14.7x | | |
| | | 2015E | | | | | | 13.9x | | | | | | 13.2x | | | | | | 15.9x | | | | | | 10.9x | | | | | | 13.9x | | | ||
| | | 2016E | | | | | | N/A | | | | | | 12.7x | | | | | | 14.2x | | | | | | 10.4x | | | | | | 13.1x | | | ||
EV/EBITDA
|
| | | | 2014E | | | | | | 17.1x | | | | | | 16.3x | | | | | | 18.8x | | | | | | 13.5x | | | | | | 16.1x | | |
| | | 2015E | | | | | | 13.7x | | | | | | 11.7x | | | | | | 15.2x | | | | | | 10.7x | | | | | | 14.1x | | | ||
| | | 2016E | | | | | | 11.9x | | | | | | 10.7x | | | | | | 13.8x | | | | | | 11.1x | | | | | | 11.2x | | |
|
NTM Announced Implied Cap Rate
|
| |||
|
Selected Transactions Mean
|
| |
8.0%
|
|
|
Selected Transactions Median
|
| |
7.7%
|
|
|
Aviv @ 0.90 Exchange Ratio
|
| |
6.6%
|
|
Selected Transactions
|
| |
Premium on Announcement
|
| |
Premium to 30 Day Average
|
| ||||||
High
|
| | | | 34.1% | | | | | | 28.7% | | |
Low
|
| | | | (0.2)% | | | | | | 2.1% | | |
Median
|
| | | | 12.9% | | | | | | 12.4% | | |
(in thousands)
|
| |
2015E
|
| |
2016E
|
| |
2017E
|
| |
2018E
|
|||||||||||
Total Revenues
|
| | | $ | 545,865 | | | | | $ | 588,460 | | | | | $ | 629,041 | | | | | $ | 674,209 |
EBITDA
|
| | | $ | 520,752 | | | | | $ | 562,666 | | | | | $ | 602,539 | | | | | $ | 646,970 |
Funds From Operations available to common stockholders
|
| | | $ | 363,097 | | | | | $ | 449,452 | | | | | $ | 488,164 | | | | | $ | 531,612 |
Funds Available for Distribution
|
| | | $ | 375,799 | | | | | $ | 431,955 | | | | | $ | 476,504 | | | | | $ | 524,354 |
(in thousands)
|
| |
2015E
|
| |
2016E
|
| |
2017E
|
| |
2018E
|
|||||||||||
Total Revenues
|
| | | $ | 249,422 | | | | | $ | 270,657 | | | | | $ | 296,305 | | | | | $ | 322,223 |
Adjusted EBITDA
|
| | | $ | 229,852 | | | | | $ | 250,500 | | | | | $ | 275,543 | | | | | $ | 300,838 |
Normalized Funds From Operations
|
| | | $ | 162,943 | | | | | $ | 175,847 | | | | | $ | 191,338 | | | | | $ | 207,350 |
Adjusted Funds From Operations
|
| | | $ | 164,632 | | | | | $ | 180,686 | | | | | $ | 198,068 | | | | | $ | 215,784 |
Interested Party
|
| |
Restricted
Stock (#)(1) |
| |
Restricted
Stock ($)(1) |
| |
Performance-
based Restricted Stock Units (#)(2) |
| |
Performance-
based Restricted Stock Units ($)(2) |
| |
Time-based
Restricted Stock Units (#)(3) |
| |
Time-based
Restricted Stock Units ($)(3) |
| |
Vested
Stock Options (#)(2) |
| |
Vested
Stock Options ($)(2) |
|||||||||||||||||||||||
Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Craig M. Bernfield*
|
| | | | — | | | | | | — | | | | | | 38,488 | | | | | | 1,353,354 | | | | | | 15,676 | | | | | | 551,215 | | | | | | 2,760,894(4) | | | | | | 48,848,498 |
Steven J. Insoft
|
| | | | — | | | | | | — | | | | | | 29,930 | | | | | | 1,052,429 | | | | | | 12,190 | | | | | | 428,637 | | | | | | 1,277,905 | | | | | | 22,609,973 |
Mark L. Wetzel
|
| | | | — | | | | | | — | | | | | | 21,609 | | | | | | 759,837 | | | | | | 73,345 | | | | | | 2,579,030 | | | | | | — | | | | | | — |
Leticia Chavez
|
| | | | — | | | | | | — | | | | | | 8,541 | | | | | | 300,327 | | | | | | 3,483 | | | | | | 122,473 | | | | | | 435,866 | | | | | | 7,711,777 |
Samuel H. Kovitz
|
| | | | — | | | | | | — | | | | | | 10,684 | | | | | | 375,681 | | | | | | 4,355 | | | | | | 153,135 | | | | | | 581,597 | | | | | | 10,290,196 |
Donna M. O’Neill
|
| | | | — | | | | | | — | | | | | | 8,541 | | | | | | 300,327 | | | | | | 3,483 | | | | | | 122,473 | | | | | | 290,854 | | | | | | 5,146,080 |
Joshua J. Kochek
|
| | | | — | | | | | | — | | | | | | 3,554 | | | | | | 124,969 | | | | | | 4,352 | | | | | | 153,029 | | | | | | 174,400 | | | | | | 3,085,659 |
Steven R. Levin
|
| | | | — | | | | | | — | | | | | | 4,035 | | | | | | 141,883 | | | | | | 4,888 | | | | | | 171,877 | | | | | | 116,331 | | | | | | 2,058,244 |
Non-Employee Directors:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Norman R. Bobins
|
| | | | 4,500 | | | | | | 158,234 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,912 | | | | | | 511,540 |
Michael W. Dees
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — |
Alan E. Goldberg
|
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Susan R. Lichtenstein
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| | | | 4,500 | | | | | | 158,234 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — |
Mark B. McClellan, M.D., Ph.D.
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| | | | 4,500 | | | | | | 158,234 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — |
Sharon O’Keefe
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| | | | 4,500 | | | | | | 158,234 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — |
Mark J. Parrell
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| | | | 4,500 | | | | | | 158,234 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — |
Ben W. Perks
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| | | | 4,500 | | | | | | 158,234 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,912 | | | | | | 511,540 |
James H. Roth
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| | | | 4,500 | | | | | | 158,234 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — |
J. Russell Triedman
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Rights of Omega Stockholders
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Rights of Aviv Stockholders
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Corporate Governance
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| | Omega is a Maryland corporation that has elected to be taxed as a REIT for U.S. federal income tax purposes. | | | Aviv is a Maryland corporation that has elected to be taxed as a REIT for U.S. federal income tax purposes. | |
| | | | The rights of Omega stockholders are governed by the MGCL, Omega’s charter and Omega’s bylaws. | | | The rights of Aviv stockholders are governed by the MGCL, Aviv’s charter and Aviv’s bylaws. | |
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Authorized Capital Stock
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Omega is authorized to issue an aggregate 220,000,000 shares of capital stock, consisting of
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200,000,000 shares of common stock,
$0.10 par value per share, and
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20,000,000 shares of Preferred Stock
having a par value of $1.00 per share.
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Aviv is authorized to issue an aggregate of 325,000,000 shares of capital stock, consisting of:
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300,000,000 shares of common stock,
$0.01 par value per share, and
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25,000,000 shares of preferred stock,
$0.01 par value per share.
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If the Omega Stock Charter Amendment is adopted, the total number of authorized shares of:
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Omega capital stock will be increased
from 220,000,000 to 370,000,000,
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Omega common stock will be increased
from 200,000,000 to 350,000,000
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Omega preferred stock will remain at
20,000,000 shares.
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| | | | At , 2015, shares of Omega common stock were issued and outstanding. | | | At , 2015, shares of Aviv common stock were issued and outstanding. | |
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Rights of Omega Stockholders
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Rights of Aviv Stockholders
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Voting Rights
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The affirmative vote of a majority of the votes cast in favor of a matter is generally sufficient for approval by Omega’s stockholders of such matter, except with respect to:
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the removal of directors with cause,
which requires the affirmative vote of the holders of least two-thirds of the combined voting power of all classes;
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(i) the adoption, amendment or repeal of
Omega’s bylaws submitted to stockholder vote, and (ii) an increase in the number of shares of Omega common stock authorized for issuance, which require the affirmative vote of the holders of a majority of the outstanding shares;
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the election of directors in a contested
election, which requires the affirmative vote of a plurality of all the votes cast; and
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(i) a merger, consolidation or sale of all
or substantially all of Omega’s assets or certain transactions involving related parties, (ii) the declassification of the Omega board of directors, and (iii) the removal of the supermajority voting requirements of Omega’s bylaws or charter, which require the affirmative vote of 80% of all votes entitled to be cast.
If the Omega Future Amendment Charter Amendment is adopted, the supermajority voting requirement for future amendments relating to the terms of directors will be removed, and a majority of the votes cast in favor of a future amendment relating to the terms for directors will be required.
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| | The affirmative vote of a majority of the votes cast in favor of a matter is generally sufficient for approval by Aviv’s stockholders of such matter, except with respect to: • the removal of directors with cause, which requires the affirmative vote of the holders of at least two-thirds of the votes entitled to be cast generally in the election of directors; • the amendment of the provisions of Aviv’s charter regarding (i) removal of directors for cause and (ii) ownership and transfer limitations with respect to Aviv capital stock; and • the election of directors, which requires the affirmative vote of a plurality of all the votes cast. |
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Cumulative Voting
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| | Holders of Omega stock do not have the right to cumulate their votes with respect to the election of directors. | | | Holders of Aviv stock do not have the right to cumulate their votes with respect to the election of directors. | |
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Size of the Board of Directors
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| | Omega’s charter provides for a minimum of five directors, and a maximum of 13 directors, with the number of directors established by a vote of a majority of the Omega board of directors or stockholders. The current size of the Omega board of directors is eight. Immediately following the merger effective time, by resolution unanimously adopted by the Omega board of directors, the Omega board of directors will be increased to 11 directors. |
| | Aviv’s charter provides for 11 directors, which number may be increased or decreased only by a vote of a majority of the Aviv board of directors or stockholders, but not to a number that is less than the minimum number required by the MGCL nor more than 15. The current size of the Aviv board of directors is 11. | |
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Rights of Omega Stockholders
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Rights of Aviv Stockholders
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Classified Board and Term of Directors
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| | Omega’s charter currently provides that Omega’s board of directors be classified into three groups of directors, with each class of directors serving staggered, three-year terms and the term of office of one class expiring each year. The proposed Omega Declassification Charter Amendment would eliminate the classified board of directors and staggered board of director terms in phases, beginning in 2015. If the Omega Declassification Charter Amendment is approved, directors, and any replacement for any such director, would continue to serve the remainder of their elected three-year terms, whereupon, at the annual meeting of Omega stockholders to be held in 2017 and at each annual meeting of stockholders thereafter, all directors will be elected to hold office for a term expiring at the next annual meeting of stockholders. | | | Each of Aviv’s directors is elected to serve until the next annual meeting of Aviv’s stockholders and until his or her successor is duly elected and qualifies under the MGCL. | |
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Election of Directors
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| | Directors are elected by a “majority of votes cast” which means for election of directors purposes, the number of votes cast “for” a director’s election exceeds the number of votes “withheld.” Votes cast excludes “abstentions” and any “broker non-votes” with respect to that director’s election. In the event of a contested election of directors, directors shall be elected by the vote of a plurality of the votes cast. A “contested election” in this context means any election of directors in which the number of candidates for election as director exceeds the number of directors to be elected. | | | Directors are elected by the vote of a plurality of all the votes cast. | |
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Removal of Directors
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| | Pursuant to Omega’s bylaws, a director may be removed, only for cause, by the affirmative vote of the holders of a least two-thirds of the combined voting power of all classes of shares of stock entitled to vote generally in the election of directors. | | | Pursuant to Aviv’s charter, a director may be removed, only for cause, by the affirmative vote of the holders of at least two-thirds of the votes entitled to be cast generally in the election of directors. | |
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Filling Vacancies of Directors
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Omega’s bylaws provide that any vacancies on the Omega board of directors may be filled by the vote of a majority of the remaining Omega directors in office, whether or not sufficient to constitute a quorum.
Omega’s bylaws further provide that any vacancies on the Omega board of directors resulting from removal of a director by the stockholders for cause may be filled by the stockholders for the balance of the term of the removed director by the same two-thirds vote required to remove a director for cause. If not so replaced, the board may replace such directors.
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| | All vacancies on the Aviv board of directors may be filled only by the affirmative vote of a majority of the remaining directors in office, even if the remaining directors do not constitute a quorum, and any director elected to fill a vacancy shall serve for the remainder of the full term of the directorship in which such vacancy occurred. | |
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Rights of Omega Stockholders
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Rights of Aviv Stockholders
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Standard of Conduct for Directors
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| | The standard of conduct for Omega’s directors is set forth in Section 2-405.1(a)-(g) of the MGCL, which requires that a director of a Maryland corporation perform his or her duties in good faith with a reasonable belief that the director’s actions are in the best interests of the corporation and with the care of an ordinarily prudent person in a like position under similar circumstances. Maryland law provides that a director is presumed to satisfy this standard of conduct. | | | The standard of conduct for Aviv’s directors is set forth in Section 2-405.1(a)-(g) of the MGCL, which requires that a director of a Maryland corporation perform his or her duties in good faith with a reasonable belief that the director's actions are in the best interests of the corporation and with the care of an ordinarily prudent person in a like position under similar circumstances. Maryland law provides that a director is presumed to satisfy this standard of conduct. | |
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Amendment of Charter
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| | Except for amendments to the sections listed below and under the circumstances described below, and except for those amendments permitted to be made without stockholder approval under the MGCL or by specific provision in the charter, any amendment to Omega’s charter shall be valid only if declared advisable by the Omega board of directors and approved by the affirmative vote of the holders of a majority of all the votes entitled to be cast on the matter; provided, that the repeal or amendment of any of the following provisions shall be valid only if declared advisable by the Omega board of directors and approved by the affirmative vote of holders of not less than 80% of the total number of votes entitled to be cast: • Section 5.02 (Business Combinations) • Section 5.03 (Board of Directors) • Section 5.04 (Restrictions on Ownership and Transfer) • Section 5.05 (Shares-In-Trust) The Omega board of directors may amend the charter by a majority vote of the entire Omega board of directors and without any action by the Omega stockholders to the fullest extent so provided by the MGCL including, but not limited to, Section 2-605 of the MGCL. |
| | Except for amendments to the sections listed below and under the circumstances described below, and except for those amendments permitted to be made without stockholder approval under the MGCL or by specific provision in the charter, any amendment to Aviv’s charter shall be valid only if declared advisable by the Aviv board of directors and approved by the affirmative vote of the holders of a majority of all the votes entitled to be cast on the matter; provided, that the repeal or amendment of any of the following provisions shall be valid only if declared advisable by the Aviv board of directors and approved by the affirmative vote of holders of at least two-thirds of all the votes entitled to be cast: • Section 5.8 of Article V (Removal of Directors) • Article VII (Restriction On Transfer And Ownership Of Shares) The Aviv board of directors may amend the charter by a majority vote of the entire Aviv board of directors and without any action by the Aviv stockholders to the fullest extent so provided by the MGCL including, but not limited to, Section 2-605 of the MGCL. |
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Bylaw Amendments
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Omega’s bylaws may be repealed, altered, amended or rescinded by the vote or written consent of holders of a majority of the outstanding shares entitled to vote; provided, that any provision of the bylaws requiring a vote of greater than a majority may be amended, repealed or modified only by a vote satisfying such higher voting requirements.
Further, Omega’s bylaws may be adopted, amended, or repealed by the Omega board of directors; provided, that the Omega
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| | Aviv’s board of directors has the exclusive power to adopt, alter or repeal any provision of Aviv’s bylaws and to make new bylaws, except for the provisions of Aviv’s bylaws relating to the exemptions from Maryland’s business combination act and control share act, and the vote required to amend such provisions, which provisions may be amended only by the affirmative vote of a majority of the votes cast on the matter by holders of outstanding shares of Aviv’s common stock. | |
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Rights of Omega Stockholders
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Rights of Aviv Stockholders
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| | | | board of directors may adopt an amendment changing the authorized number of directors only within the limits specified in Omega’s charter or in Section 2 of Article III of its bylaws (requiring a minimum of five and maximum of 13 directors). | | | | |
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Mergers, Consolidations or Sales of Substantially all Assets
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Omega’s bylaws require an affirmative vote of 80% of all votes entitled to be cast on such matter to approve a merger, consolidation or sale of all or substantially all of Omega’s assets.
With certain limited exceptions, the affirmative vote of the holders of not less than 80% of all votes entitled to be cast on such matter shall be required for the approval or authorization of any “Business Combination” (as such term is defined in Omega’s charter, including a merger, consolidation, sale of assets, liquidation or certain share issuances, in each case involving a “Related Person,” as such term is defined in Omega’s charter).
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| | Under Aviv’s charter, a merger, consolidation or sale of all or substantially all of its assets must be declared advisable by Aviv’s board of directors and approved by the affirmative vote of stockholders of a majority of all of the votes entitled to be cast on the matter. | |
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Ownership Limitations
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| | With certain limited exceptions, no person may beneficially own, or be deemed to own by virtue of the attribution provisions of the Internal Revenue Code, more than 9.8% of the outstanding shares of Omega’s capital stock (which limit may be adjusted by the Omega board of directors but an increase cannot result in Omega being considered “closely held” within the meaning of Section 856(h) of the Internal Revenue Code). | | | With certain limited exceptions, no person may actually or constructively own more than 8.6% (in value) of Aviv’s outstanding common stock or 8.6% (in value) of Aviv’s aggregate outstanding stock of all classes and series. Aviv’s charter permits its board of directors to make an exception to these limits or create a different limit on ownership, which we refer to as an excepted holder limit, and, in certain circumstances, and subject to the directors’ duties under applicable law, requires the board of directors to make such an exception prospectively or retroactively and to create an excepted holder limit, if the person seeking the exception or excepted holder limit makes certain representations and agreements. Aviv’s board of directors may not make an exception to the ownership limit or create an excepted holder limit if ownership by the excepted holder in excess of the ownership limit would cause Aviv to fail to qualify as a REIT. In addition, different ownership limits apply to Lindsay Goldberg LLC and its affiliates, to Mr. Bernfield, together with certain of his affiliates, family members and estates and trusts, to a trust formed for the benefit of the estate of Zev Karkomi, one of Aviv’s co-founders, together with certain affiliates, family members and estates and trusts, and to Cohen & Steers Capital Management, Inc. In addition, Aviv’s charter prohibits any person from actually, beneficially or |
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Rights of Omega Stockholders
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Rights of Aviv Stockholders
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| | | | | | | constructively owning shares that could result in Aviv being “closely held” under Section 856(h) of the Internal Revenue Code or otherwise cause Aviv to fail to qualify as a REIT, and from transferring shares if such transfer would result in shares being beneficially owned by fewer than 100 persons. | |
| | | | In the event of a purported transfer or other event that would, if effective, result in the ownership of shares in violation of the ownership limitation, that number of shares that would be owned by the transferee in excess of the ownership limit are automatically converted into an equal number of “shares-in-trust.” Shares-in-trust are deemed to be held in trust by the purported transferee for the benefit of the person or persons to whom the Omega board of directors requires the shares to be transferred. The purported transferee has no right to receive dividends or other distributions on or vote the excess shares. Omega or its designee may purchase the excess shares for cash. | | | If any purported transfer of stock or any other event would otherwise result in any person violating the ownership limits or other limit established by Aviv’s board of directors, or would result in Aviv being “closely held” within the meaning of Section 856(h) of the Internal Revenue Code or otherwise failing to qualify as a REIT, then the number of shares causing the violation (rounded up to the nearest whole share) will be automatically transferred to, and held by, a trust for the exclusive benefit of one or more charitable beneficiaries selected by Aviv. The prohibited owner will have no rights in shares of Aviv stock held by the trustee. | |
| | | | Any person who acquires or attempts or intends to acquire actual, beneficial or constructive ownership of shares of Omega stock that will or may violate the ownership limits or any of the other restrictions on ownership and transfer of Omega stock described above must give written notice immediately to Omega or, in the case of a proposed or attempted transaction, provide Omega at least 15 days’ prior written notice, and provide Omega with such other information as it may request in order to determine the effect of such transfer on its status as a REIT. | | | Any person who acquires or attempts or intends to acquire actual, beneficial or constructive ownership of shares of Aviv stock that will or may violate the ownership limits or any of the other restrictions on ownership and transfer of Aviv stock described above must give written notice immediately to Aviv or, in the case of a proposed or attempted transaction, provide Aviv at least 15 days’ prior written notice, and provide Aviv with such other information as it may request in order to determine the effect of such transfer on its status as a REIT. | |
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Annual Meetings of the Stockholders
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| | The annual meeting of the stockholders of Omega shall be held at a date and time set by the Omega board of directors. | | | The annual meeting of the stockholders of Aviv shall be held at a date and time set by the Aviv board of directors. | |
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Special Meetings of the Stockholders
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| | A special meeting of Omega stockholders may be called by Omega’s President, Chief Executive Officer, the chairman of the Omega board of directors, a majority of the Omega Board of directors, or Omega’s Secretary upon the written request of the holders of shares representing not less than a majority of all the votes entitled to be cast on such matter at any such special meeting of stockholders and who comply with the procedures set forth in Omega’s charter. | | | A special meeting of Aviv stockholders may be called by Aviv’s President, Chief Executive Officer, the chairman of the Aviv board of directors, a majority of the Aviv Board of directors, or Aviv’s Secretary upon the written request of the holders of shares representing not less than a majority of all the votes entitled to be cast on such matter at any such special meeting of stockholders and who comply with the procedures set forth in Aviv’s charter. | |
| | | | Business transacted at the special meeting of stockholders will be limited to the purposes specifically designated in the notice. | | | Business transacted at the special meeting of stockholders will be limited to the purposes specifically designated in the notice. | |
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Rights of Omega Stockholders
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Rights of Aviv Stockholders
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Advance Notice Provisions for Stockholder Nominations and Stockholder Business Proposals
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| | Omega’s bylaws provide that nominations for election to the Omega board of directors and the proposal of business to be considered by the stockholders may be made only: • by or at the direction of the Omega board of directors; or • upon timely and proper notice, by a stockholder who is a stockholder of record at both the time of giving of notice and the time of the annual meeting, who is entitled to vote at the meeting, and who has complied with the procedures set forth in Omega’s bylaws. |
| | Aviv’s bylaws provide that, with respect to an annual meeting of stockholders, nominations of individuals for election to the board of directors and the proposal of business to be considered by Aviv stockholders may be made only (1) pursuant to Aviv’s notice of the meeting, (2) by or at the direction of Aviv’s board of directors or (3) by a stockholder who was a stockholder of record both at the time of provision of notice and at the time of the meeting, is entitled to vote at the meeting on the election of each individual so nominated or such other business and has complied with the advance notice procedures set forth in Aviv’s bylaws, including a requirement to provide certain information about the stockholder and its affiliates and the nominee or business proposal, as applicable. | |
| | | | In general, notice of stockholder nominations or business for an annual meeting must be delivered not less than 90 days nor more than 120 days prior to the first anniversary of the date of the preceding year’s annual meeting, unless the annual meeting is advanced by more than 30 days or delayed by more than 60 days from the anniversary date, in which case notice must be delivered not more than 90 days prior to such annual meeting nor later than the close of business on the later of (i) the date that is 60 days prior to such annual meeting or (ii) the tenth day following the day on which public announcement of the date of such meeting is first made by Omega. The adjournment or the public announcement of a postponement of an annual meeting will not commence a new time period or extension of the time for the giving of a stockholder’s notice as described above. | | | | |
| | | | Notice of stockholder nominations for a special meeting must be delivered not earlier than the 90th day prior to the special meeting, and not later than the close of business on the later of the 60th day prior to the meeting or the tenth day following the day on which the public announcement is first made of the date of the meeting and the nominees proposed by the Omega board of directors. | | | | |
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Rights of Omega Stockholders
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Rights of Aviv Stockholders
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Notice of Stockholder Meetings
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| | Omega’s bylaws provide that not less than 10 nor more than 90 days before each meeting of stockholders, Omega shall give notice to each stockholder entitled to vote at such meeting, and to each stockholder not entitled to vote but who is entitled to notice of the meeting, written or printed notice stating the date, place and time of the meeting, and in the case of a special meeting or as otherwise may be required by the MGCL, such notice shall state the purpose for which the meeting is called. The notice shall be in writing or, to the extent permitted by the MGCL (unless Omega has received a request from a stockholder that notice not be sent by electronic transmission), transmitted by an electronic transmission to each stockholder at his or her address appearing in the records of Omega or, in respect to any electronic transmission, to any address or number of the stockholder at which the stockholder receives electronic transmissions. If mailed, the notice of the meeting shall be deemed to be given when deposited in the United States mail, addressed to the stockholder at his or her address as it appears in the records of Omega, with postage thereon prepaid. Omega, subject to the proxy rules of the SEC, may give a single notice to all stockholders who share an address, unless Omega has received a request from a stockholder in writing or by electronic transmission that a single notice not be given. | | | Aviv’s bylaws provide that not less than 10 nor more than 90 days before each meeting of stockholders, Aviv shall give notice to each stockholder entitled to vote at such meeting, and to each stockholder not entitled to vote but who is entitled to notice of the meeting, stating the date, place and time of the meeting, and in the case of a special meeting or as otherwise may be required by the MGCL, such notice shall state the purpose for which the meeting is called. The notice shall be in writing or transmitted by an electronic transmission to each stockholder at his or her address appearing in the records of Aviv or, in respect to any electronic transmission, to any address or number of the stockholder at which the stockholder receives electronic transmissions. If mailed, the notice of the meeting shall be deemed to be given when deposited in the United States mail, addressed to the stockholder at his or her address as it appears in the records of Aviv, with postage thereon prepaid. Aviv, subject to the proxy rules of the SEC, may give a single notice to all stockholders who share an address, unless Aviv has received a request from a stockholder in writing or by electronic transmission that a single notice not be given. | |
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Stockholder Action Without a Meeting
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| | Omega’s bylaws provide that any action to be taken by the stockholders other than the election of directors may be taken without a meeting, if, and only if, prior to such action, all stockholders entitled to vote thereon consent in writing to such action being taken. | | | Aviv’s charter provides that any action required or permitted to be taken at any meeting of stockholders may be taken without a meeting (a) if a unanimous consent setting forth the action is given in writing or by electronic transmission by each stockholder entitled to vote on the matter and filed with the minutes of proceedings of the stockholders or (b) if the action is advised, and submitted to the stockholders for approval, by the Aviv board of directors and a consent in writing or by electronic transmission of stockholders entitled to cast not less than the minimum number of votes that would be necessary to authorize or take the action at a meeting of stockholders is delivered to Aviv in accordance with the MGCL. | |
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Merger Approval
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| | The merger approval procedure in Maryland begins with the adoption, by the board of directors of each corporation, of a resolution declaring that the proposed | | | The merger approval procedure in Maryland begins with the adoption, by the board of directors of each corporation, of a resolution declaring that the proposed merger is | |
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Rights of Omega Stockholders
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Rights of Aviv Stockholders
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| | | | merger is advisable and that the merger is to be submitted for consideration at either an annual or special meeting of the stockholders. After notice is given to all of the stockholders stating that the purpose of the meeting will be to consider the proposed merger, the proposed merger must be approved by the affirmative vote of two-thirds of all votes entitled to be cast, unless a different proportion is provided in the charter of the corporation, but not less than a majority. Omega’s charter does not provide for a different proportion for merger approval. | | | advisable and that the merger is to be submitted for consideration at either an annual or special meeting of the stockholders. Pursuant to Aviv’s charter, after notice is given to all of the stockholders stating that the purpose of the meeting will be to consider the proposed merger, the proposed merger must be approved by the affirmative vote of a majority of all votes entitled to be cast. | |
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Appraisal Rights
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| | With respect to Omega, except for transactions governed by the business combination act described below, no objecting stockholder rights are available if the corporation’s shares are listed on a national securities exchange unless stockholders, in exchange for their shares, are receiving cash (other than in lieu of fractional shares), or consideration other than stock or depositary receipts of the successor, in a merger, consolidation or share exchange in which the directors and executive officers were the beneficial owners, in the aggregate, of 5% or more of the outstanding voting stock of the corporation at any time during the prior year and the stock held by the directors and executive officers, or any of them, is converted or exchanged in the transaction for stock of a person, or an affiliate of a person, who is a party to the transaction on terms that are not otherwise available to all holders. This provision does not apply when the directors’ and/or executive officers’ stock is held in a compensatory plan or arrangement approved by the board of directors and the treatment of the stock in the transaction is approved by the board (Section 3-202(d) of the MGCL). Neither Omega’s charter nor Omega’s bylaws contain any additional provisions relating to the rights of objecting stockholders. | | | With respect to Aviv, except for transactions governed by the business combination act described below, no objecting stockholder rights are available if the corporation's shares are listed on a national securities exchange unless stockholders, in exchange for their shares, are receiving cash (other than in lieu of fractional shares), or consideration other than stock or depositary receipts of the successor, in a merger, consolidation or share exchange in which the directors and executive officers were the beneficial owners, in the aggregate, of 5% or more of the outstanding voting stock of the corporation at any time during the prior year and the stock held by the directors and executive officers, or any of them, is converted or exchanged in the transaction for stock of a person, or an affiliate of a person, who is a party to the transaction on terms that are not otherwise available to all holders. This provision does not apply when the directors’ and/or executive officers’ stock is held in a compensatory plan or arrangement approved by the board of directors and the treatment of the stock in the transaction is approved by the board (Section 3-202(d) of the MGCL). Neither Aviv’s charter nor Aviv’s bylaws contain any additional provisions relating to the rights of objecting stockholders. | |
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State Anti-Takeover Statutes
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| | The MGCL provides that holders of “control shares” of a Maryland corporation acquired in a “control share acquisition” have no voting rights with respect to the control shares except to the extent approved by a vote of two-thirds of the votes entitled to be cast on the matter, excluding shares of stock owned by the acquirer, by officers of the corporation or by employees who are also directors of the corporation. “Control shares” are shares of stock of the | | | The MGCL provides that holders of “control shares” of a Maryland corporation acquired in a “control share acquisition” have no voting rights with respect to the control shares except to the extent approved by a vote of two-thirds of the votes entitled to be cast on the matter, excluding shares of stock owned by the acquirer, by officers of the corporation or by employees who are also directors of the corporation. “Control shares” are shares of stock of the | |
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Rights of Omega Stockholders
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Rights of Aviv Stockholders
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| | | | corporation which, if aggregated with other shares controlled by the acquirer, would entitle the acquirer to exercise voting power in electing directors within one of the following ranges of voting power: one-tenth or more but less than one-third, one-third or more but less than a majority, or a majority or more of all voting power. Control shares do not include shares the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval. Generally, a “control share acquisition” means the acquisition of outstanding control shares. A control share acquisition does not include shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction or to acquisitions approved or exempted by the charter of bylaws of the corporation. As permitted under the MGCL, Omega’s bylaws contain a provision, which may be repealed at any time, that the provisions of the control share acquisition statute shall not apply to any acquisition by any person of shares of Omega stock. | | | corporation which, if aggregated with other shares controlled by the acquirer, would entitle the acquirer to exercise voting power in electing directors within one of the following ranges of voting power: one-tenth or more but less than one-third, one-third or more but less than a majority, or a majority or more of all voting power. Control shares do not include shares the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval. Generally, a “control share acquisition” means the acquisition of outstanding control shares. A control share acquisition does not include shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction or to acquisitions approved or exempted by the charter of bylaws of the corporation. As permitted under the MGCL, Aviv’s bylaws contain a provision, which may be repealed at any time, that the provisions of the control share acquisition statute shall not apply to any acquisition by any person of shares of Aviv stock. | |
| | | | Under the MGCL, certain business combinations between a Maryland corporation and any person who beneficially owns ten percent or more of the voting power of the corporation’s outstanding voting stock, or an affiliate or associate of the corporation who beneficially owned ten percent or more of the voting power at any time within the preceding two years, in each case referred to as an “interested stockholder,” or an affiliate thereof, are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. Thereafter, any such business combination must be recommended by the corporation’s board of directors and approved by the affirmative vote of at least (i) 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation voting together as a single group and (ii) two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder or its affiliates or associates. The super-majority vote requirements do not apply, however, to business combinations that are approved or exempted by the corporation’s board of directors prior to the time that the interested stockholder becomes an | | | Under the MGCL, certain business combinations between a Maryland corporation and any person who beneficially owns ten percent or more of the voting power of the corporation’s outstanding voting stock, or an affiliate or associate of the corporation who beneficially owned ten percent or more of the voting power at any time within the preceding two years, in each case referred to as an “interested stockholder,” or an affiliate thereof, are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. Thereafter, any such business combination must be recommended by the corporation’s board of directors and approved by the affirmative vote of at least (i) 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation voting together as a single group and (ii) two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder or its affiliates or associates. The super-majority vote requirements do not apply, however, to business combinations that are approved or exempted by the corporation’s board of directors prior to the time that the interested stockholder becomes an interested stockholder or the business combination | |
| | | |
Rights of Omega Stockholders
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| |
Rights of Aviv Stockholders
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| | | | interested stockholder or the business combination satisfies certain minimum price, form of consideration and procedural requirements. As permitted under Maryland law, Omega’s bylaws contain a provision, which may be repealed at any time, that the provisions of the special voting requirements statute shall not apply to any business combination of Omega unless the Omega board of directors elects by resolution to be subject, in whole or in part, specifically, generally or generally by types as to specifically identified or unidentified stockholders, to the provisions of Maryland law. | | | satisfies certain minimum price, form of consideration and procedural requirements. As permitted under Maryland law, Aviv’s bylaws contain a provision, which may be repealed at any time, that the provisions of the special voting requirements statute shall not apply to any business combination of Aviv unless the Aviv board of directors elects by resolution to be subject, in whole or in part, specifically, generally or by type as to specifically identified or unidentified stockholders, to the provisions of Subsection 6 of Title 3 of the MGCL. | |
| | | | Under certain provisions of the MGCL relating to unsolicited takeovers, a Maryland corporation with a class of equity securities registered under the Exchange Act and at least three independent directors may elect to be subject, by provision in its charter or bylaws or by resolutions of its board of directors and notwithstanding any contrary provision in the charter or bylaws, to any or all of five provisions: (i) a classified board, (ii) a two-thirds vote requirement for removing a director, (iii) a requirement that the number of directors be fixed only by vote of the directors, (iv) any and all vacancies on the board of directors may be filled by the remaining directors, even if the remaining directors do not constitute a quorum, and for the remainder of the full term of the class of directors in which the vacancy occurred, and (v) a majority requirement for the calling of a special meeting of stockholders. | | | Under certain provisions of the MGCL relating to unsolicited takeovers, a Maryland corporation with a class of equity securities registered under the Exchange Act and at least three independent directors may elect to be subject, by provision in its charter or bylaws or by resolutions of its board of directors and notwithstanding any contrary provision in the charter or bylaws, to any or all of five provisions: (i) a classified board, (ii) a two-thirds vote requirement for removing a director, (iii) a requirement that the number of directors be fixed only by vote of the directors, (iv) any and all vacancies on the board of directors may be filled by the remaining directors, even if the remaining directors do not constitute a quorum, and for the remainder of the full term of the class of directors in which the vacancy occurred, and (v) a majority requirement for the calling of a special meeting of stockholders. | |
| | | | Through provisions in Omega’s charter and bylaws unrelated to the statute, Omega vests in the board of directors the power to fix the number of directorships, provided that the number is not less than five directors which is more than the minimum number required by Maryland law, and provided that, except as may be provided by the Omega board of directors in setting the terms of any class or series of preferred stock, and except for vacancies resulting from removal of a director by the stockholders (in which case such vacancy may be filled by the stockholders for the balance of the term of the remaining director), any vacancy on the board of directors may be filled only by a majority of the remaining directors, even if the remaining directors do not constitute a quorum. | | | Through provisions in Aviv’s charter and bylaws unrelated to the statute, Aviv vests in the board of directors the power to fix the number of directorships, provided that the number is not less than the minimum number required by Maryland law nor more than 15, and provides that, except as may be provided by the Aviv board of directors in setting the terms of any class or series of preferred stock, any vacancy on the board of directors may be filled only by a majority of the remaining directors, even if the remaining directors do not constitute a quorum. | |
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Rights of Omega Stockholders
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Rights of Aviv Stockholders
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Stockholder Rights Plan
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| | Omega does not have a stockholder rights plan in effect. | | | Aviv does not have a stockholder rights plan in effect. | |
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Liability and Indemnification of Directors and Officers
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| | Omega’s charter contains provisions limiting the liability of directors and officers, to the maximum extent that Maryland law in effect from time to time permits, such that no director or officer of Omega shall be liable to Omega or its stockholders for money or other damages. Therefore, Omega’s directors and officers shall have no liability for money or other damages except to the extent that (i) it is proven that the director or officer actually received an improper personal benefit or profit, or (ii) a judgment or other final adjudication adverse to the director or officer is entered in a proceeding based on a finding in the proceeding that the action, or failure to act, of the director or officer, was the result of active and deliberate dishonesty, and was material to the cause of action. | | | Aviv’s charter contains provisions limiting the liability of directors and officers, to the maximum extent that Maryland law in effect from time to time permits, such that no director or officer of Aviv shall be liable to Aviv or its stockholders for money or other damages. Therefore, Aviv’s directors and officers shall have no liability for money or other damages except to the extent that (i) it is proven that the director or officer actually received an improper personal benefit or profit, or (ii) a judgment or other final adjudication adverse to the director or officer is entered in a proceeding based on a finding in the proceeding that the action, or failure to act, of the director or officer, was the result of active and deliberate dishonesty, and was material to the cause of action. | |
| | | | Omega’s charter permits Omega, and Omega’s bylaws obligate Omega, to the maximum extent permitted by Maryland law, to indemnify and, without requiring a preliminary determination of the ultimate entitlement to indemnification, to pay or reimburse reasonable expenses in advance of final disposition of a proceeding to (i) any of Omega’s present or former directors or officers who is made a party to the proceeding by reason of his or her service in that capacity or (ii) any individual who, while serving as a director or officer of Omega and at Omega’s request, serves or has served as a director, officer, partner, member, manager or trustee of another corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise and who is made party to the proceeding by reason of his or her service in that capacity. Omega may, with the approval of the Omega board of directors, provide such indemnification and payment or reimbursement of expenses to an individual who served a predecessor of Omega in any such capacities described above, or to any employee or agent of Omega or a predecessor of Omega. | | | Aviv’s charter permits Aviv, and Aviv’s bylaws obligate Aviv, to the maximum extent permitted by Maryland law in effect from time to time, to indemnify, and to pay or reimburse reasonable expenses in advance of final disposition of a proceeding to, (a) any individual who is a present or former director or officer of Aviv or (b) any individual who, while a director or officer of Aviv and at the request of Aviv, serves or has served as a director, officer, partner, trustee, managing member or manager of another corporation, real estate investment trust, partnership, joint venture, trust, limited liability company, employee benefit plan or any other enterprise from and against any claim or liability to which such person may become subject or which such person may incur by reason of his or her service in such capacity. | |
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Distributions
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| | Omega’s bylaws and charter provide that the Omega board of directors may authorize and declare, and Omega may pay dividends to stockholders at such times and in such amounts as the Omega board of directors may deem advisable. | | | Subject to the preferential rights, if any, of holders of any other class or series of Aviv stock and to the provisions of Aviv’s charter regarding restrictions on ownership and transfer of stock, holders of shares of Aviv common stock are entitled to receive | |
| | | |
Rights of Omega Stockholders
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| |
Rights of Aviv Stockholders
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| | | | | | | dividends if, when and as authorized by its board of directors and declared by it out of assets legally available for distribution and to share ratably in the assets of the company legally available for distribution to its stockholders in the event of its liquidation, dissolution or winding up, after payment of or adequate provision for all known debts and liabilities of the company. | |
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Constituency Related Provisions
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| | With respect to Omega, under Maryland law, the charter may include a provision permitting the directors, in considering a potential acquisition of control of the corporation, to consider the effect of the potential acquisition on the corporation’s stockholders, employees, customers, creditors, suppliers and communities in which offices or other establishments of the corporation are located. Accordingly, directors may reject an offer because of the effect that the acquisition would have on non-stockholder constituencies or accept a lower priced offer that the directors believe is more favorable to all of the corporation’s constituencies. Omega’s charter does not include such a provision. However, Maryland law also states that the inclusion or absence of such a provision does not create an inference as to what factors may be considered by the board of directors. | | | With respect to Aviv, under Maryland law, the charter may include a provision permitting the directors, in considering a potential acquisition of control of the corporation, to consider the effect of the potential acquisition on the corporation's stockholders, employees, customers, creditors, suppliers and communities in which offices or other establishments of the corporation are located. Accordingly, directors may reject an offer because of the effect that the acquisition would have on non-stockholder constituencies or accept a lower priced offer that the directors believe is more favorable to all of the corporation's constituencies. Aviv’s charter does not include such a provision. However, Maryland law also states that the inclusion or absence of such a provision does not create an inference as to what factors may be considered by the board of directors. | |
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| Omega Healthcare Investors, Inc. | | |||
| 200 International Circle | | |||
| Suite 3500 | | |||
| Hunt Valley, MD 21030 | | |||
| Attention: | | | C. Taylor Pickett | |
| with a copy to: | | |||
| Bryan Cave LLP | | |||
| One Atlantic Center, Fourteenth Floor | | |||
| 1201 W Peachtree Street, NW | | |||
| Atlanta, Georgia 30309 | | |||
| Attention: | | | Rick Miller | |
| Facsimile: | | | 404.420.0820 | |
| Aviv REIT, Inc. | | |||
| 303 W. Madison Street, Suite 2400 | | |||
| Chicago, Illinois 60606 | | |||
| Attention: | | | Craig M. Bernfield | |
| | | | Samuel H. Kovitz | |
| Facsimile: | | | (312) 855-1684 | |
| with a copy to: | | |||
| Sidley Austin LLP | | |||
| One South Dearborn | | |||
| Chicago, Illinois 60603 | | |||
| Attention: | | | Steven Sutherland | |
| | | | Scott R. Williams | |
| Facsimile: | | | (312) 853-7036 | |
|
“Adverse Recommendation Change”
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| | Section 5.3(e) | |
| “Agreement” | | |
Preamble
|
|
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“Articles of Merger”
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| | Section 1.3 | |
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“Base Premium”
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| | Section 6.4(c) | |
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“Book-Entry Shares”
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| | Section 2.2(b) | |
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“Cause”
|
| | Section 2.4(e) | |
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“CCMAE Financing”
|
| | Section 6.19(c) | |
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“Certificate of Merger”
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| | Section 1.3 | |
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“Certificates”
|
| | Section 2.2(b) | |
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“Charter Restrictions”
|
| | Section 6.5 | |
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“Closing”
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| | Section 1.2 | |
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“Closing Date”
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| | Section 1.2 | |
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“COBRA”
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| | Section 3.11(h) | |
| “Company” | | |
Preamble
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|
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“Company 401(k) Plan”
|
| | Section 6.15(e) | |
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“Company Acquisition Agreement”
|
| | Section 5.3(a) | |
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“Company Benefit Plans”
|
| | Section 3.11(b) | |
| “Company Board of Directors” | | |
Recitals
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|
| “Company Board Recommendation” | | |
Recitals
|
|
| “Company Common Stock” | | |
Recitals
|
|
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“Company Designees”
|
| | Section 6.13 | |
|
“Company Disclosure Letter”
|
| | Article III | |
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“Company Employee”
|
| | Section 6.15(a) | |
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“Company Equity Awards”
|
| | Section 2.4(d) | |
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“Company Equity Interests”
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| | Section 3.2(a) | |
|
“Company Financial Advisors”
|
| | Section 3.20 | |
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“Company Financial Statements”
|
| | Section 3.6(a) | |
|
“Company Ground Leases”
|
| | Section 3.18(e) | |
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“Company Material Contract”
|
| | Section 3.13(b) | |
| “Company Operating Partnership” | | |
Preamble
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|
|
“Company Permits”
|
| | Section 3.17(c) | |
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“Company Permitted Acquisition”
|
| | Section 5.1(b)(vi) | |
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“Company Permitted Dividends”
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| | Section 5.1(b)(iii) | |
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“Company Permitted Liens”
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| | Section 3.18(b) | |
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“Company Properties”
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| | Section 3.18(a) | |
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“Company PSUs”
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| | Section 2.4(b) | |
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“Company Qualified Plan”
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| | Section 3.11(g) | |
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“Company Registrants”
|
| | Section 3.6(a) | |
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“Company RSUs”
|
| | Section 2.4(d) | |
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“Company SEC Documents”
|
| | Section 3.6(a) | |
| “Company Shares” | | |
Recitals
|
|
|
“Company Stock Options”
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| | Section 2.4(a) | |
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“Company Subsidiary”
|
| | Section 3.1(b) | |
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“Company Subsidiary Partnership”
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| | Section 3.12(g) | |
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“Company Tax Protection Agreements”
|
| | Section 3.12(g) | |
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“Company Title Insurance Policies”
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| | Section 3.18(h) | |
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“Company Voting Debt”
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| | Section 3.2(a) | |
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“Competing Proposal”
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| | Section 5.3(i) | |
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“Covered Persons”
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| | Section 6.4(a) | |
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“Delaware Secretary”
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| | Section 1.3 | |
| “DGCL” | | |
Recitals
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“Exchange Act”
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| | Section 3.5 | |
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“Exchange Agent”
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| | Section 2.2(a) | |
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“Exchange Fund”
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| | Section 2.2(a) | |
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“Exchange Ratio”
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| | Section 2.1(a) | |
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“Financing Objection”
|
| | Section 6.19(c) | |
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“Form S-4”
|
| | Section 3.5 | |
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“Fractional Share Consideration”
|
| | Section 2.1(a) | |
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“GAAP”
|
| | Section 3.6(a) | |
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“Governmental Entity”
|
| | Section 3.5 | |
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“Indemnification Agreements”
|
| | Section 6.4(a) | |
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“Indicative Pricing Terms”
|
| | Section 6.19(c) | |
|
“Interim Period”
|
| | Section 5.1(a) | |
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“Intervening Event”
|
| | Section 5.3(f)(i) | |
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“Joint Proxy Statement”
|
| | Section 3.5 | |
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“Legal Proceeding”
|
| | Section 3.10 | |
| “Merger” | | |
Recitals
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|
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“Merger Consideration”
|
| | Section 2.1(a) | |
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“Merger Effective Time”
|
| | Section 1.3 | |
| “Merger Sub” | | |
Preamble
|
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| “MGCL” | | |
Recitals
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|
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“Notes”
|
| | Section 6.19(a) | |
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“Other Company Subsidiary”
|
| | Section 3.1(b) | |
| “Parent” | | |
Preamble
|
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“Parent Benefit Plans”
|
| | Section 4.11(b) | |
| “Parent Board Recommendation” | | |
Recitals
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| “Parent Board of Directors” | | |
Recitals
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|
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“Parent Charter Amendment”
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| | Section 6.14 | |
| “Parent Common Stock” | | |
Recitals
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| “Parent Declassification Charter Amendment” | | |
Recitals
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“Parent Disclosure Letter”
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| | Article IV | |
| “Parent Equity Awards” | | |
Section 4.2(a)
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|
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“Parent Equity Interests”
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| | Section 4.2(a) | |
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“Parent Financial Statements”
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| | Section 4.6(a) | |
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“Parent Ground Leases”
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| | Section 4.18(d) | |
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“Parent Material Contract”
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| | Section 4.13(b) | |
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“Parent Operating Partnership Agreement”
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| | Section 4.1(a) | |
| “Parent Partnership” | | |
Preamble
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|
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“Parent Partnership Debt”
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| | Section 6.17 | |
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“Parent Partnership Restructuring”
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| | Section 6.16 | |
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“Parent Partnership Units”
|
| | Section 4.2(d) | |
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“Parent Permits”
|
| | Section 4.17(c) | |
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“Parent Permitted Acquisition”
|
| | Section 5.2(b)(v) | |
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“Parent Permitted Dividend”
|
| | Section 5.2(b)(iii) | |
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“Parent Permitted Liens”
|
| | Section 4.18(b) | |
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“Parent Qualified Plan”
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| | Section 4.11(d) | |
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“Parent SEC Documents”
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| | Section 4.6(a) | |
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“Parent Subsidiary”
|
| | Section 4.1(b) | |
| “Parent Stock Charter Amendment” | | |
Recitals
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|
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“Parent Title Insurance Policies”
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| | Section 4.18(g) | |
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“Parent Voting Debt”
|
| | Section 4.2(a) | |
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“Participant”
|
| | Section 2.4(a) | |
| “Parties” | | |
Preamble
|
|
|
“Partnership Combination”
|
| | Section 6.16 | |
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“Partnership Combination Effective Time”
|
| | Section 6.16 | |
| “Party” | | |
Preamble
|
|
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“Permitted Development Expenditures”
|
| | Section 3.18(j) | |
|
“Preferred Stock”
|
| | Section 3.2(a) | |
|
“Qualified REIT Subsidiary”
|
| | Section 3.1(e) | |
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“Qualifying Income”
|
| | Section 8.2(e)(i) | |
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“REIT”
|
| | Section 3.1(e) | |
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“Relevant Company Partnership Interest”
|
| | Section 3.12(g) | |
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“Restricted Company Shares”
|
| | Section 2.4(a) | |
|
“Sarbanes-Oxley Act”
|
| | Section 3.6(a) | |
|
“SDAT”
|
| | Section 1.3 | |
|
“SEC”
|
| | Section 3.5 | |
|
“Securities Act”
|
| | Section 3.6(a) | |
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“Security Holder Litigation”
|
| | Section 6.9 | |
| “Share Issuance” | | |
Recitals
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“Superior Proposal”
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| | Section 5.3(j) | |
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“Surviving Entity”
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| | Section 1.1 | |
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“Takeover Statutes”
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| | Section 3.26 | |
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“Taxable REIT Subsidiary”
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| | Section 3.1(e) | |
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“Termination Payment”
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| | Section 8.2(b) | |
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“Transfer Taxes”
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| | Section 6.11(c) | |
| “Voting Agreement” | | |
Recitals
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|
| | | | PARENT: | | |||
| | | | OMEGA HEALTHCARE INVESTORS, INC. | | |||
| | | | By: | | |
/s/ C. Taylor Pickett
C. Taylor Pickett
President and Chief Executive Officer |
|
| | | | MERGER SUB: | | |||
| | | | OHI HEALTHCARE PROPERTIES HOLDCO, INC. | | |||
| | | | By: | | |
/s/ C. Taylor Pickett
C. Taylor Pickett
President and Chief Executive Officer |
|
| | | | PARENT PARTNERSHIP: | | |||
| | | | OHI HEALTHCARE PROPERTIES LIMITED PARTNERSHIP, L.P. | | |||
| | | | By: | | | Omega Healthcare Investors, Inc., its general partner | |
| | | | By: | | |
/s/ C. Taylor Pickett
C. Taylor Pickett
President and Chief Executive Officer |
|
| | | | COMPANY: | | |||
| | | | AVIV REIT, INC. | | |||
| | | | By: | | |
/s/ Craig M. Bernfield
Craig M. Bernfield
Chief Executive Officer |
|
| | | | COMPANY OPERATING PARTNERSHIP: | | |||
| | | | AVIV HEALTHCARE PROPERTIES LIMITED PARTNERSHIP | | |||
| | | | By: | | | Aviv REIT, Inc., its general partner | |
| | | | By: | | |
/s/ Craig M. Bernfield
Craig M. Bernfield
Chief Executive Officer |
|
|
Total Beneficial
Ownership |
| |
Voting
Shares |
| |
OP Units
|
| |
Options
|
|
|
21,653,813
|
| |
21,653,813
|
| |
—
|
| |
—
|
|
| OMEGA HEALTHCARE INVESTORS, INC. a Maryland corporation |
| |||
| By: | | | /s/ C. Taylor Pickett Name: C. Taylor Pickett Title: President and Chief Executive Officer |
|
| LG Aviv L.P. a Delaware limited partnership |
| |||
| By: | | | /s/ Michael W. Dees Title: Authorized Signatory |
|
| MORGAN STANLEY & CO. LLC | | |||
| By: | | | /s/ Matthew Johnson Title: Managing Director |
|
| Thomas F. Franke | | | (Term to expire in 2015) | |
| Bernard J. Korman | | | (Term to expire in 2015) | |
| Craig R. Callen | | | (Term to expire in 2015) | |
| Edward Lowenthal | | | (Term to expire in 2016) | |
| Stephen D. Plavin | | | (Term to expire in 2016) | |
| Barbara B. Hill | | | (Term to expire in 2017) | |
| Harold J. Kloosterman | | | (Term to expire in 2017) | |
| C. Taylor Pickett | | | (Term to expire in 2017) | |
| ATTEST: | | | | | | OMEGA HEALTHCARE INVESTORS, INC. | | |||
| | | | | | By: | | | | | |
| | | | | | | | | | Name: | |
| Secretary | | | | | | | | | Title: Chief Executive Officer | |
| | | | | |
| | | | Name: | |
| | | | Title: Chief Financial Officer | |
| | | | OMEGA HEALTHCARE INVESTORS, INC. | | |||
| | | | By: | | | /s/ C. Taylor Pickett | |
| | | | | | | C. Taylor Pickett Chief Executive Officer |
|
|
Signature
|
| |
Position
|
|
|
/s/ C. Taylor Pickett
C. Taylor Pickett
|
| | Chief Executive Officer and Director (Principal Executive Officer) |
|
|
/s/ Robert O. Stephenson
Robert O. Stephenson
|
| | Chief Financial Officer (Principal Financial Officer) |
|
|
/s/ Michael D. Ritz
Michael D. Ritz
|
| | Chief Accounting Officer (Principal Accounting Officer) |
|
|
/s/ Bernard J. Korman
Bernard J. Korman
|
| | Chairman of the Board of Directors | |
|
/s/ Craig R. Callen
Craig R. Callen
|
| | Director | |
|
/s/ Barbara B. Hill
Barbara B. Hill
|
| | Director | |
|
/s/ Thomas S. Franke
Thomas S. Franke
|
| | Director | |
|
/s/ Harold J. Kloosterman
Harold J. Kloosterman
|
| | Director | |
|
/s/ Edward Lowenthal
Edward Lowenthal
|
| | Director | |
|
/s/ Stephen D. Plavin
Stephen D. Plavin
|
| | Director | |
Exhibit Number |
| |
Description of Document
|
|
2.1 | | | Agreement and Plan of Merger, dated as of October 30, 2014, by and among Omega Healthcare Investors, Inc., OHI Healthcare Properties Holdco, Inc., OHI Healthcare Properties Limited Partnership, L.P., Aviv REIT, Inc., and Aviv Healthcare Properties Limited Partnership (attached as Annex A to the joint proxy statement/prospectus that is part of this registration statement)(1) | |
3.1 | | | Amended and Restated Bylaws of Omega Healthcare Investors, Inc. (incorporated by reference to Exhibit 3.1 to Omega’s Current Report on Form 8-K, filed on April 20, 2011) | |
3.2 | | | Articles of Amendment and Restatement of Omega Healthcare Investors, Inc. (incorporated by reference to Exhibit 3.1 to Omega’s Current Report on Form 8-K, filed on June 14, 2010) | |
5.1 | | | Validity Opinion of Bryan Cave LLP** | |
8.1 | | | Tax Opinion of Bryan Cave LLP** | |
8.2 | | | Tax Opinion of Sidley Austin LLP** | |
10.1 | | | Ownership Limit Waiver Agreement, dated as of October 30, 2014, by and between Omega Healthcare Investors, Inc. and LG Aviv L.P. (incorporated by reference to Exhibit 10.1 to Omega’s Current Report on Form 8-K, filed on November 15, 2014) | |
23.1 | | | Consent of Bryan Cave LLP (included as part of the opinion filed as Exhibit 5.1 hereto)** | |
23.2 | | | Consent of Bryan Cave LLP (included as part of the opinion filed as Exhibit 8.1 hereto)** | |
23.3 | | | Consent of Sidley Austin LLP (included as part of the opinion filed as Exhibit 8.2 hereto)** | |
23.4 | | | Consent of Ernst and Young related to Omega Healthcare Investors, Inc.* | |
23.5 | | | Consent of Ernst and Young related to Aviv REIT, Inc. and Aviv Healthcare Properties Limited Partnership* | |
23.6 | | | Consent of Ernst and Young related to certain properties of Diamond Senior Living, LLC acquired by Aviv REIT, Inc.* | |
24.1 | | | Power of Attorney (set forth on signature page hereto)* | |
99.1 | | | Form of Proxy of Omega Healthcare Investors, Inc.** | |
99.2 | | | Form of Proxy of Aviv REIT, Inc.** | |
99.3 | | | Voting Agreement and Irrevocable Proxy, dated as of October 30, 2014, by and between Omega and LG Aviv L.P. (incorporated by reference to Exhibit 99.1 to Omega’s Current Report on Form 8-K, filed on November 15, 2014) | |
99.4 | | | Consent of Goldman, Sachs & Co.* | |
99.5 | | | Consent of Morgan Stanley & Co. LLC* | |