Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q1 2019 Earnings Presentation
24 slides from Caretrust Reit's earnings presentation, May 7, 2019
Slide 1: Avantara Crown Point (Parker, CO) Downey Care Center (Downey, CA)
EXHIBITEXHIBITEXHIBIT 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: CareTrust at a Glance
Company Profile Company Profile 3 CareTrust at a Glance 4 CareTrust REIT is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition and leasing Investments 5 of seniors housing and healthcare-related properties. CareTrust REIT generates revenues primar
Slide 4: CareTrust REIT Market Data and Credit Ratings
CareTrust REIT, Inc. Nasdaq: CTRE Market Data (as of March 31, 2019) Closing Price: $23.46 52 Week Range: $24.10– $12.73 Market Cap: $2,087M Enterprise Value: $2,557M Outstanding Shares: 88.9M 199 27 States Credit Ratings Properties Credit Ratings S&P S&PCorporate Rating: B+ (positive) CorporateSeni
Slide 5: Investments
Investments (dollars in thousands) Property Initial Initial Operating Cost per Initial Yield Date Operator Type Location Facilities Investment[1] Bed/Unit [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 6
Slide 6: Portfolio Performance
Portfolio Performance (dollars in thousands) As of March 31, 2019 Operating % of Total % of Total Asset Type Facilities Beds/Units Investment [1] Investment Rent [2] Rent Current Yield [3] Skilled Nursing 144 14,190 $1,069,094 71.1% $109,743 72.7% 10.3% Multi-Service Campus 19 2,662 212,789 14.1% 21
Slide 7: Tenant Summary
Tenant Summary SE The Ensign Group (Nasdaq; ENSG) is a publicly-traded, nationwide operator of 245 skilled nursing and assisted living facilities, 93 of which are ENSIGN <= GROUP REIT. In addition tot also operates 46 hospice ed by CareTrust ing a blue hip operator, Ensign ncies, home health SNe Tri
Slide 8: Rent Diversification by Tenant
Rent Diversification by Tenant (dollars in thousands) As of March 31, 2019 Operating % of Total % of Total Facilities Beds/Units Investment[1] Investment Rent[2] Rent 1 The Ensign Group 93 9,860 510,121 33.9% 59,842 39.6% 2 Trillium Healthcare Group 18 1,362 128,778 8.6% 11,879 7.9% 3 Priority Manag
Slide 9: Top Five States
Top Five States OH: 11.3% AZ: 6.1% CA: 21.5% ID: 7.0% 1 ALF TX: 18.1% Others: 36.0% Run-Rate Rent Run-Rate 1 ALF OH: 12.9% AZ: 4.0% CA: 19.2% ID: 6.8% 1 SNF TX: 17.9% Investment Others: 39.2% OH: 7.5% AZ: 6.7% CA: 18.2% ID: 6.3% TX: 21.1% Beds/Units Others: 40.2% 9
Slide 10: Rent Diversification by State
Rent Diversification by State (dollars in thousands) As of March 31, 2019 Net-Leased Assets by State Operating % of Total % of Total Facilities Beds/Units Investment[1] Investment Rent[2] Rent 1 California 30 3,584 $ 289,365 19.2% $ 32,438 21.5% 2 Texas 34 4,145 268,791 17.9% 27,370 18.1% 3 Ohio 16
Slide 11: Lease Maturities
Lease Maturities (dollars in thousands) As of March 31, 2019 Lease Maturity % of Total % of Total Year[1] Investment[2] Investment Rent[3] Rent 2026 58,157 3.9% 6,606 4.4% 2027 55,929 3.7% 5,861 3.9% 2028 79,914 5.3% 7,977 5.3% 2029 115,381 7.7% 10,086 6.7% 2030 283,398 18.8% 25,512 16.9% 2031 343,4
Slide 12: 12
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Slide 13: Consolidated Income Statements
Consolidated Income Statements (amounts in thousands, except per share data) Three Months Ended March 31, 2019 2018 Revenues: Rental income $ 38,347 $ 33,816 Tenant reimbursements[1] — 2,968 Independent living facilities 860 799 Interest and other income 451 518 Total revenues 39,658 38,101 Expenses
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) March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 Net income $ 14,607 $ 13,267 $ 14,510 $ 15,539 $ 16,053 Depreciat
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) March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 Net income $ 14,607 $ 13,267 $ 14,510 $ 15,539 $ 16,0
Slide 16: Consolidated Balance Sheets
Consolidated Balance Sheets (dollars in thousands) March 31, 2019 December 31, 2018 Assets: Real estate investments, net $ 1,259,336 $ 1,216,237 Other real estate investments, net 29,419 18,045 Cash and cash equivalents 214,354 36,792 Accounts and other receivables, net 8,360 11,387 Prepaid expenses
Slide 17: Key Debt Metrics
Key Debt Metrics Net Debt to Normalized EBITDA [1][2] Net Debt to Enterprise Value [3] 5.1 36.5% 34.1% 4.6 4.5 4.6 30.8% 30.5% 4.4 28.8% 4.1 24.1% 24.7% 24.2% 3.7 22.3% 3.6 3.5 20.2% 3.3 3.3 18.1% 6 6 7 7 7 7 8 8 8 8 9 6 6 7 7 7 7 8 8 8 8 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) March 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 43.8% $ (4,658) $ 295,342 Floating Rate Debt Senior unsecured term loan 3.989% [1]
Slide 19: 2019 Guidance
2019 Guidance (shares in thousands) Low High Net income $ 0.84 $ 0.86 Real estate related depreciation and amortization 0.51 0.51 Funds from Operations (FFO) 1.35 1.37 Normalized FFO $ 1.35 $ 1.37 Net income $ 0.84 $ 0.86 Real estate related depreciation and amortization 0.51 0.51 Amortization of de
Slide 20: Equity Capital Transactions
Equity Capital Transactions Follow-On Equity Offering Activity[1] 2015 2016 2019[2] Q1 Q2 Q3 Q4 Total Q1 Q2[3] 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 $ — $ 1
Slide 21: Other Financial Highlights
Other Financial Highlights Dividend History Normalized FFO Payout Ratio [1][2] $0.225 66.1% 66.1% 70.3% 60.7% 63.8% 64.1% 64.1% 64.1% 64.1% $0.205 $0.205 $0.205 $0.205 59.7% $0.185 $0.185 $0.185 $0.185 $0.17 6 7 7 7 7 8 8 8 8 9 6 7 7 7 7 8 8 8 8 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
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)