Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q3 2019 Earnings Presentation
24 slides from Caretrust Reit's earnings presentation, Nov 7, 2019
Slide 1: Q3 2019 Supplement
EXHIBITEXHIBITEXHIBITEXHIBIT 99.2 99.2 99.2 99.2 Avantara Crown Point (Parker, CO) Downey Care Center (Downey, CA)
Slide 2: Disclaimers
Disclaimers This supplement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical statements of fact and statements regarding our intent, belief or expectations, includ
Slide 3: Company Profile
Company Profile Company Profile 3 CareTrust REIT is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development CareTrust at a Glance 4 and leasing of seniors housing and healthcare-related properties. CareTrust REIT generates revenues primari
Slide 4: CareTrust REIT at a Glance
CareTrust REIT, Inc. Nasdaq: CTRE Market Data (as of September 30, 2019) Closing Price: $23.50 52 Week Range: $25.54– $16.68 Market Cap: $2,247M Enterprise Value: $2,806M Outstanding Shares: 95.6M 207 28 States Credit Ratings Properties Credit Ratings S&P S&PCorporate Rating: B+ (positive) Corporate
Slide 5: Investments
Investments (dollars in thousands) Property Initial Initial Operating Cost per Initial Yield Date Operator Type Location Facilities Investment[1] Beds/Units [2] Bed/Unit [3] Initial Rent [4] [5] ALF, SNF, 6/1/2014 The Ensign Group Campus Various 94 $ 501,673 10,053 $ 50 $ 56,000 N/A 2014 Investments
Slide 6: Top Tenants Lease Coverage
Top 10 Tenants Lease Coverage (dollars in thousands) As of September 30, 2019[1] Twelve Months Ended June 30, 2019[1] % of Number of CTRE Annualized Primary Facility Type Properties Rent[2] Total Rent EBITDAR Coverage[3] EBITDARM Coverage[3] 1 The Ensign Group[4] Skilled Nursing 84 $ 53,167 33.2% 2.
Slide 7: Tenant Summary
Tenant Summary Note: [1] All amounts exclude our three operated seniors housing properties, one preferred equity investment and two mortgage loans receivable. Additionally, amounts exclude properties classified as held for sale as of September 30, 2019. [2]On October 1, 2019, Ensign completed its pr
Slide 8: Rent Diversification by Tenant
Rent Diversification by Tenant (dollars in thousands) As of September 30, 2019[1] Operating % of Total % of Total Facilities Beds/Units Investment[2] Investment Rent[3] Rent 1 The Ensign Group[4] 84 8,531 452,956 27.1% $ 53,167 33.2% 2 Priority Management Group 15 2,145 303,007 18.2% 26,968 16.8% 3
Slide 9: Geographic Diversification: Top Five States
Top Five States TX: 20.5% CA: 20.6% LA: 9.7% AZ: 7.8% 1 ALF ID: 7.3% Run-Rate Rent Run-Rate Others: 34.1% 1 ALF TX: 18.8% CA: 18.1% LA: 10.5% AZ: 3.6% 1 SNF ID: 7.1% Investment Others: 41.9% TX: 21.6% CA: 17.7% LA: 5.5% AZ: 6.3% ID: 6.4% Beds/Units Others: 42.5% 9
Slide 10: Rent Diversification by State
Rent Diversification by State (dollars in thousands) As of September 30, 2019[1] Net-Leased Assets by State Operating % of Total % of Total Facilities Beds/Units Investment[2] Investment Rent[3] Rent 1 California 31 3,725 $ 302,472 18.1% $ 33,020 20.6% 2 Texas 37 4,557 313,715 18.8% 32,816 20.5% 3 L
Slide 11: Lease Maturities
Lease Maturities (dollars in thousands) As of September 30, 2019[1] Lease Maturity % of Total % of Total Year[2] Investment[3] Investment Rent[4] Rent 2026 58,157 3.5% 5,237 3.3% 2027 39,717 2.4% 4,894 3.1% 2028 67,855 4.1% 7,358 4.6% 2029 150,540 9.0% 12,199 7.6% 2030 190,540 11.4% 16,000 10.0% 203
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Slide 13: Consolidated Income Statements
Consolidated Income Statements (amounts in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Revenues: Rental income $ 31,577 $ 35,332 $ 114,047 $ 103,856 Tenant reimbursements[1] — 2,990 — 8,974 Independent living facilities 929 8
Slide 14: Reconciliation of EBITDA, FFO and FAD
Reconciliation of EBITDA, FFO and FAD Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended (amounts in thousands, except per share data) September 30, 2018 December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 Net income (loss) $ 14,510 $ 15,539 $ 16,053 $ 19,698 $ (10,0
Slide 15: Reconciliation of EBITDA, FFO and FAD (continued)
Reconciliation of EBITDA, FFO and FAD (continued) Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended (amounts in thousands, except per share data) September 30, 2018 December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 Net income (loss) $ 14,510 $ 15,539 $ 16,053 $ 19
Slide 16: Consolidated Balance Sheets
Consolidated Balance Sheets (dollars in thousands) September 30, 2019 December 31, 2018 Assets: Real estate investments, net $ 1,404,024 $ 1,216,237 Other real estate investments, net 44,808 18,045 Assets held for sale, net 34,590 — Cash and cash equivalents 5,749 36,792 Accounts and other receivabl
Slide 17: Key Debt Metrics
Key Debt Metrics Net Debt to Normalized EBITDA [1][2] Net Debt to Enterprise Value [3] 36.5% 4.6 4.5 4.4 30.5% 4.1 28.8% 3.7 24.1% 24.7% 24.2% 3.6 3.5 22.3% 3.4 20.2% 19.9% 3.3 3.3 3.3 18.1% 19.1% 7 7 7 7 8 8 8 8 9 9 9 7 7 7 7 8 8 8 8 9 9 9 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0
Slide 18: Debt Summary
Debt Summary (dollars in thousands) September 30, 2019 Interest Maturity % of Deferred Net Carrying Debt Rate Date Principal Principal Loan Costs Value Fixed Rate Debt Senior unsecured notes payable 5.250% 2025 $ 300,000 53.1% $ (4,279) $ 295,721 Floating Rate Debt Senior unsecured term loan 3.542%
Slide 19: Guidance
Guidance Q1-Q3 2019 Q4 2019 Guidance Full Year 2019 Guidance Full Year 2020 Guidance (shares in thousands) Actual Low High Low High Low High Net income $ 0.28 $ 0.18 $ 0.19 $ 0.46 $ 0.47 $ 0.80 $ 0.82 Real estate related depreciation and amortization 0.42 0.14 0.14 0.56 0.56 0.56 0.56 Impairment of
Slide 20: Equity Capital Transactions
Equity Capital Transactions Follow-On Equity Offering Activity 2015 2016 2019 Q1 Q2 Q3 Q4 Total Q1 Q2[2] Q3 Number of Shares (000s) 16,330 — 9,775 — 6,325 16,100 — 6,641 Public Offering Price per Share $ 10.50 $ — $ 11.35 $ — $ 13.35 $ 12.14 [1] $ — $ 23.35 Gross Proceeds (000s) $ 171,465 $ — $ 110,
Slide 21: Other Financial Highlights
Other Financial Highlights Dividend History Normalized FFO Payout Ratio [1][2] $0.225 $0.225 $0.225 66.1% 66.1% 70.3% 59.7% 64.1% 64.1% 64.1% 64.1% 64.3% 64.3% $0.205 $0.205 $0.205 $0.205 $0.185 $0.185 $0.185 7 7 7 8 8 8 8 9 9 9 7 7 7 8 8 8 8 9 9 9 1 1 1 1 1 1 1 1 1 1 1 1 1 1 /1 /1 1 1 1 1 0 0 0 0 0
Slide 22: Glossary
Glossary Assisted Living Facilities (“ALFs”) EBITDARM Coverage Licensed healthcare facilities that provide personal care services, support and housing Aggregate EBITDARM produced by all facilities under a master lease (or other for those who need help with daily living activities, such as bathing, e
Slide 23: Glossary and Notes
Glossary Multi-Service Campus Notes: Facilities that include a combination of Skilled Nursing beds and Seniors Housing [1] EBITDA and Normalized EBITDA do not represent cash flows from operations or units. net income as defined by GAAP and should not be considered an alternative to those measures in
Slide 24: Cascadia of Nampa (Nampa, ID)
Cascadia of Nampa (Nampa, ID)