John Kolichowski's questions to Omega Healthcare Investors Inc (OHI) leadership • Q2 2025
Question
John Kolichowski of Wells Fargo & Company asked about the apparent change in balance sheet strategy, questioning the shift to debt issuance over equity. He also sought clarity on the tenants within the sub-1.0x EBITDAR coverage bucket and their prospects for improvement.
Answer
CFO Robert Stephenson explained the company opportunistically issued debt to refinance a 2026 maturity in a leverage-neutral transaction but will continue to use its equity currency for accretive acquisitions. CEO C. Taylor Pickett addressed the coverage concerns, stating he expects key tenants in the sub-1.0x bucket to improve and graduate out in the coming quarters based on recent performance trends.