Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q4 2019 Earnings Presentation
25 slides from Caretrust Reit's earnings presentation, Feb 20, 2020
Slide 1: Supplemental Information Q4 2019
EXHIBITEXHIBITEXHIBITEXHIBITEXHIBIT 99.2 99.2 99.299.2 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 at a Glance
CareTrust REIT, Inc. Nasdaq: CTRE Market Data (as of December 31, 2019) Closing Price: $20.63 52 Week Range: $25.54– $17.71 Market Cap: $1,971M Enterprise Value: $2,551M Outstanding Shares: 95.6M 210 28 States Credit Ratings Properties Credit Ratings S&P S&PCorporate Rating: B+ (positive) CorporateS
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 December 31, 2019[1] Twelve Months Ended September 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 85 $ 53,367 32.7
Slide 7: Portfolio Performance
Portfolio Performance (dollars in thousands) As of December 31, 2019 Operating % of Total % of Total Asset Type Facilities Beds/Units Investment [1] Investment Rent [2] Rent Current Yield [3] Skilled Nursing 152 15,782 $1,218,374 72.1% $118,644 72.7% 9.7% Multi-Service Campus 18 2,460 237,191 14.0%
Slide 8: Tenant Summary
Tenant Summary Note: [1] All amounts exclude our one operated seniors housing property, one preferred equity investment and two mortgage loans receivable. [2] Amounts exclude properties classified as held for sale as of December 31, 2019. 8
Slide 9: Rent Diversification by Tenant
Rent Diversification by Tenant (dollars in thousands) As of December 31, 2019[1] Operating % of Total % of Total Facilities Beds/Units Investment[2] Investment Rent[3] Rent 1 The Ensign Group[4] 85 8,908 451,126 26.7% $ 53,367 32.7% 2 Priority Management Group 15 2,145 298,023 17.6% 27,426 16.8% 3 P
Slide 10: Top Five States
Top Five States TX: 19.8% CA: 21.6% LA: 9.7% AZ: 7.6% 1 ALF ID: 7.2% Run-Rate Rent Run-Rate Others: 34.1% 1 ALF TX: 18.4% CA: 19.2% LA: 10.4% AZ: 3.6% 1 SNF ID: 7.0% Investment Others: 41.4% TX: 21.2% CA: 18.7% LA: 5.4% AZ: 6.2% ID: 6.3% Beds/Units Others: 42.2% 10
Slide 11: Rent Diversification by State
Rent Diversification by State (dollars in thousands) As of December 31, 2019[1] Net-Leased Assets by State Operating % of Total % of Total Facilities Beds/Units Investment[2] Investment Rent[3] Rent 1 California 34 4,015 $ 324,159 19.2% $ 35,297 21.6% 2 Texas 37 4,557 311,885 18.4% 32,364 19.8% 3 Lo
Slide 12: Lease Maturities
Lease Maturities (dollars in thousands) As of December 31, 2019[1] Lease Maturity % of Total % of Total Year[2] Investment[3] Investment Rent[4] Rent 2026 48,988 2.9% 5,237 3.2% 2027 41,896 2.5% 4,894 3.0% 2028 68,193 4.0% 7,558 4.6% 2029 148,710 8.8% 12,199 7.5% 2030 190,540 11.3% 16,000 9.8% 2031
Slide 13: 13
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Slide 14: Consolidated Income Statements
Consolidated Income Statements (amounts in thousands, except per share data) Three Months Ended December 31, Twelve Months Ended December 31, 2019 2018 2019 2018 Revenues: Rental income $ 41,620 $ 36,217 $ 155,667 $ 140,073 Tenant reimbursements[1] — 2,950 — 11,924 Independent living facilities 713
Slide 15: 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) December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Net income (loss) $ 15,539 $ 16,053 $ 19,698 $ (10,054) $ 20,6
Slide 16: 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) December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Net income (loss) $ 15,539 $ 16,053 $ 19,698 $ (10
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets (dollars in thousands) December 31, 2019 December 31, 2018 Assets: Real estate investments, net $ 1,414,200 $ 1,216,237 Other real estate investments, net 33,300 18,045 Assets held for sale, net 34,590 — Cash and cash equivalents 20,327 36,792 Accounts and other receivabl
Slide 18: 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% 24.7% 24.2% 3.6 3.5 22.3% 21.2% 3.4 20.2% 19.9% 3.3 3.3 3.3 3.3 18.1% 19.1% 7 7 7 8 8 8 8 9 9 9 9 7 7 7 8 8 8 8 9 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 19: Debt Summary
Debt Summary (dollars in thousands) December 31, 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 53.6% $ (4,089) $ 295,911 Floating Rate Debt Senior unsecured term loan 3.270% [
Slide 20: Updated 2020 Guidance
Updated 2020 Guidance Full Year 2020 Guidance (shares in thousands) Low High Net income $ 0.76 $ 0.78 Real estate related depreciation and amortization 0.56 0.56 Funds from Operations (FFO) 1.32 1.34 Normalized FFO $ 1.32 $ 1.34 Net income $ 0.76 $ 0.78 Real estate related depreciation and amortizat
Slide 21: Equity Capital Transactions
Equity Capital Transactions Follow-On Equity Offering Activity 2015 2016 2019 Q1 Q2 Q3 Q4 Total Q1 Q2[2] Q3 Q4 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
Slide 22: Other Financial Highlights
Other Financial Highlights Dividend History Normalized FFO Payout Ratio [1][2] $0.225 $0.225 $0.225 $0.225 66.1% 70.3% 66.2% 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 7 7 8 8 8 8 9 9 9 9 7 7 8 8 8 8 9 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 23: 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 24: Glossary
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 25: Cascadia of Nampa (Nampa, ID)
Cascadia of Nampa (Nampa, ID)