Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Investor Presentation (September 2015)
26 slides from Caretrust Reit's investor presentation, Sep 9, 2015
Slide 1: Investor Presentation
Exhibit 99.2 Willow Bend Nursing & Rehabilitation Center, Mesquite, TX Orem Rehabilitation & Skilled Nursing, Orem, UT Investor Presentation September 2015 Julia Temple Healthcare Center, Englewood, CO
Slide 2: Safe Harbor Statement
Safe Harbor Statement This document may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern and are based upon, among other things, the possible expansion of the portfolio of CareTrust REIT, Inc. (“CTRE,” “
Slide 3: Strong Healthcare Operating & REIT Background
Strong Healthcare Operating & REIT Background Greg Stapley, Chief Executive Officer • Co-Founder of Ensign, instrumental in assembling the real estate portfolio now owned by CareTrust • 29 years of experience in the acquisition, development and disposition of real estate • Previously the General Cou
Slide 4: Acquisition & Operational Experience
Acquisition & Operational Experience The CareTrust Team brings its Experience, Relationships & Track Record from Ensign Ensign Pre-Spin Annual Facilities Growth Ensign Pre-Spin Historical Asset Acquisitions & CareTrust’s First Year Facilities Growth & CareTrust’s First-Year Growth ($ in millions) $2
Slide 5: Growing Portfolio
Growing Portfolio As of September 1, 2015 (pro forma for all announced transactions) TX 22% Other 34% CA 15% OH UT 11% AZ 10% 8% Campus 11% AL/IL 18% SNF 71% 5
Slide 6: Strong Liquidity for Growth
Strong Liquidity for Growth $29.9 million cash on hand as of June 30, 2015 $171.6 million equity raise August 2015 (1) $300.0 million undrawn senior unsecured credit facility with approximately $95.4 million of current availability (approximately $157.2 million available pro forma for the Liberty tr
Slide 7: Roll-Up Opportunity
Roll – Up Opportunity Healthcare Real Estate Market Estimated at Over $1 Trillion Healthcare Real Estate Ownership Public REIT- Owned , Large REITs focused on larger acquisitions 21% Privately Owned, 79% Deal Size Real Estate Asset Breakdown Life Science/ Biotech, 5% Skilled Nursing, 10% Senior Hous
Slide 8: Mining an Underserved Market
Mining an Underserved Market Market Backdrop CareTrust Role Results Fragmented market, Apply healthcare operating Accretive investments with underserved by capital experience to underwriting strong operating providers process partners/tenants Limited access to capital Target quality one-off, 100% le
Slide 9: Disciplined Investment Strategy Focused on Accretive Deals
Disciplined Investment Strategy Focused on Accretive Deals Senior Housing Skilled Nursing Medical Office Facilities Acute Care Facilities Buildings (ALF, ILF, MC) Net Lease Core Core Opportunistic Opportunistic Opportunistic Mortgage Debt Relationship Relationship Opportunistic Development Relations
Slide 10: Leading Tenant Rent Coverage
Leading Tenant Rent Coverage Total LTM EBITDAR Tenant Rent Coverage 2.00x 1.90x 1.82x 1.80x 1.70x 1.66x 1.60x 1.54x 1.50x 1.40x 1.40x 1.40x 1.30x 1.30x 1.19x 1.20x 1.10x 1.08x 1.00x (1) (2) (3) (4) (5) (6) (8) (7) CTRE LTC HCP - Non- OHI HCN CCP SBRA HCP - Manorcare Manorcare Only (1) As of Q2 2015
Slide 11: Well-Protected Dividend
Well-Protected Dividend CareTrust has industry leading dividend protection across multiple metrics with ample room for growth • EBITDAR tenant lease coverage of 1.82x, including the Liberty Health Care Portfolio and July 2015 acquisitions • FFO payout ratio of 64% (2) 2.0x 1.5x 1.0x 100% 90% 80% 70%
Slide 12: Deal Summary
DEAL SUMMARY # of # of Purchase Initial Tenant Month Acquired State Facility Type Beds / Properties Price Cash Yield Units Operating Assets: Cross Healthcare November 2014 Idaho ALF 3 90 $12.0 million 8.50% Prelude Senior Living December 2014 Minnesota MC 1 28 $7.2 million 8.25% Twenty / 20 Manageme
Slide 13: Liberty Health Care Portfolio Acquisition Overview
Liberty Health Care Portfolio Acquisition Overview Number of Properties: 14 Number of Beds / Units: 1,258 Number of SNF Beds: 1,102 Number of ALF / ILF Units: 156 Purchase Price: ~$178.4million (including transaction costs) Cash Yield: 9.6% EBITDAR Coverage: 1.30x % Occupied: 82.1%(1) Operator: Pris
Slide 14: Transformational
Transformational Post close, CareTrust’s key credit and portfolio stats on a forward-looking basis are: Post-Liberty Health Credit Statistic June 30, 2015 Care Acquisition Debt-to-EBITDA(1) 7.0x 5.5x Debt-to-Total Capitalization (2) 47.3% 57.0% Fixed Charge Coverage Ratio(3) 2.6x 3.4x Total Secured
Slide 15: Financial Summary
FINANCIAL SUMMARY 15
Slide 16: Guidance
Guidance CareTrust’s 2015 guidance is based on the following: • $56 million in rent from Ensign and $10.0 million from all investments closed through September 1, 2015 plus the Liberty transaction which is expected to close on October 1, 2015 • $0.9 million in interest income from the $7.5 million p
Slide 17: Guidance
Guidance RECONCILIATION OF NET INCOME TO NON-GAAP FINANCIAL MEASURES 2015 Guidance 2016 Guidance Low High Low High Net income $0.25 $0.27 $0.42 $0.44 Real estate related depreciation and amortization 0.64 0.64 0.57 0.57 Funds from Operations (FFO) 0.89 0.91 0.99 1.01 Write-off of deferred financing
Slide 18: Investment Highlights
Investment Highlights Robust Pipeline of Accretive Growth Opportunities Management and Board with Extensive Healthcare Operating and Real Estate Experience Superior Lease Coverage Across Portfolio Well-Protected Dividend with Room for Growth Liquidity for Growth & Opportunities to Diversify Strong H
Slide 19: Appendix
APPENDIX 19
Slide 20: Attractive Industry Dynamics for SNF Operators
Attractive Industry Dynamics for SNF Operators 16,715 Number US of Skilled Nursing Facilities SNF Properties 16,554 16,441 16,256 16,066 15,965 15,861 15,772 15,771 15,679 15,669 15,655 15,667 15,666 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Age 65+ Population 78 81 Numbe
Slide 21: SNF Reimbursement Rates
SNF Reimbursement Rates Skilled nursing reimbursement rates appear stable and increasing over time • On October 1, 2015, a 1.4% net market basket increase for 2015-2016 SNF payments went into effect Avg. SNF Medicaid Rate Per Day Avg. SNF Medicare Rate Per Day (1) ENSG Same Facility Medicare Rate pe
Slide 22: "THE" Platform Tenant
“THE” Platform Tenant Ensign Business Overview Ensign Operated Facilities As of March 31, 2015, Ensign operated 143 facilities, 13 home health and 12 hospice operations, two home care businesses, one transitional care management company,16 urgent care centers and a mobile x-ray diagnostic company, a
Slide 23: 2015 Financial Summary
2015 Financial Summary CARETRUST REIT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) June 30, December 31, 2015 2014 Assets Real estate investments, net $459,515 $436,215 Other real estate investments 7,987 7,532 Cash and cash equivalents 29,904 25,320 Accounts receivable 2,0
Slide 24: 2015 Financial Summary
2015 Financial Summary CARETRUST REIT, INC. DEBT SUMMARY (dollars in thousands) (unaudited) Interest Rate/ Maturity June 30, 2015 Debt Collateral Spread Date Balance Fixed Rate Debt Senior unsecured notes payable Unsecured 5.875% 2021 $260,000 GECC mortgage notes payable (1) 10 properties 7.252% 201
Slide 25: 2015 Financial Summary
2015 Financial Summary CARETRUST REIT, INC. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited) One Month Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended June 30, 2014 September 30, 2014 December 31, 2014 March 31, 2015 June 30, 2015 Revenues: Rental inc
Slide 26: 2015 Financial Summary
2015 Financial Summary CARETRUST REIT, INC. RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES (in thousands, except per share data) (unaudited) One Month Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended June 30, 2014 September 30, 2014 December 31, 2014 March 31, 2015 June 30
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