Omega Healthcare Investors Inc. (NYSE: OHI) on Monday announced some transaction and rent deferral updates regarding two skilled nursing operators, one in the U.S. and one in the U.K.

The Maryland-based real estate investment trust (REIT) said it sold 11 of its LaVie Care Center properties to an unnamed third party for $129.8 million, also providing seller financing of $104.8 million at a rate of 8%. As of the third financial quarter last year, LaVie operated 85 Omega-owned SNFs – 51 in Florida, 13 in North Carolina, nine in Pennsylvania, six in Mississippi, four in Louisiana and two in Virginia.

Omega on Monday issued the news as part of a business update in conjunction with the Capital One Securities 2nd Annual REIT Conference.

LaVie Care Centers was bought by Consulate Health Care in August 2012; Consulate itself underwent significant downsizing in December 2021, a bankruptcy filing and financial settlement with the Department of Justice.

Omega leadership plans to sell additional LaVie properties in the coming months as part of a restructuring plan for the portfolio. Restructuring will also result in “at least” several months of partially deferred rent, according to the update.

LaVie has been placed on a cash basis for revenue recognition as of 4Q of last year, according to Omega.

In its presentation, the REIT pointed to an increase of cost per patient day – about 21% from the first quarter of 2020 to the third quarter of 2022 – as driving the lease restructuring with LaVie.

Increased patient costs were tied to less than stellar occupancy numbers since the first quarter of 2020.

“While there has been a modest rebound, occupancy as of 3Q22 still sits at approximately 900 [basis points] below pre-pandemic levels,” the business presentation states. LaVie properties saw occupancy fall from 88.8% in 1Q 2020 to 76.1% 1Q 2021.

Omega’s other SNF operating update concerns Healthcare Homes. The REIT agreed to defer up to four months of rent for the U.K. provider, from January through April of this year.

The provider operates 42 Omega-owned “care homes” in the U.K. Operating performance “held up quite well” due to more modest occupancy declines in the U.K. versus the U.S.

“In addition, the U.K. government provided financial support to the industry,” the Omega presentation read. “However, in late 2022, due to the timing of the expiration of their prior utility contracts, energy costs increased in excess of 300% based on October 2022 financials, which, along with continuing provisions for agency costs, impinged the operator’s near-term liquidity.”

Healthcare Homes may choose not to defer any or all of the rent, Omega leadership said; the REIT is also offering Healthcare “nominal short-term financing.”

Omega expects to see earnings before interest, taxes, depreciation and amortization (EBITDA) and funds available for distribution (FAD) to decline from 4Q 2022 to 1Q 2023 as a result of operator restructurings.