Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q3 2018 Earnings Presentation
24 slides from Caretrust Reit's earnings presentation, Nov 5, 2018
Slide 1: The Villas at Saratoga (Saratoga, CA)
EXHIBITEXHIBITEXHIBIT 99.2 99.2 99.2 The Villas at Saratoga (Saratoga, 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 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, Inc. Market Data
CareTrust REIT, Inc. Nasdaq: CTRE Market Data (as of September 30, 2018) Closing Price: $17.71 52 Week Range: $19.76 – $12.73 Market Cap: $1,486M Enterprise Value: $1,960M Outstanding Shares: 83.9M 190 25 States Credit Ratings Properties Credit Ratings S&P S&PCorporate Rating: B+ (positive) Corporat
Slide 5: Investments
Investments (dollars in thousands) Property Initial Initial Operating Cost per Date Operator Type Location Facilities Investment[1] Bed/Unit [2] Bed/Unit [3] Initial Rent [4] Initial Yield[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 September 30, 2018 Operating % of Total % of Total Asset Type Facilities Beds/Units Investment [1] Investment Rent [2] Rent Current Yield [3] Skilled Nursing 137 13,397 $992,755 70.4% $101,947 72.7% 10.3% Multi-Service Campus 17 2,429 195,894 13.9%
Slide 7: Tenant Summary
Tenant Summary as « TRILLIUM paoeeee CASCMDIA 7 Expertise. Partnership. Growth.
Slide 8: Rent Diversification by Tenant
Rent Diversification by Tenant (dollars in thousands) As of September 30, 2018 Operating % of Total % of Total Facilities Beds/Units Investment[1] Investment Rent[2] Rent 1 The Ensign Group 92 9,805 501,246 35.5% 59,114 42.2% 2 Trillium Healthcare Group 18 1,362 128,278 9.1% 11,298 8.1% 3 Priority M
Slide 9: Top Five States
Top Five States OH: 11.9% AZ: 6.6% ID: 7.6% CA: 19.4% 1 ALF TX: 19.2% Others: 35.3% Run-Rate Rent Run-Rate 1 ALF OH: 13.7% AZ: 4.4% CA: 17.4% ID: 7.2% 1 SNF TX: 18.9% Investment Others: 38.4% OH: 7.9% AZ: 7.1% CA: 16.5% ID: 6.6% TX: 21.1% Beds/Units Others: 40.8% 9
Slide 10: Rent Diversification by State
Rent Diversification by State (dollars in thousands) As of September 30, 2018 Net-Leased Assets by State Operating % of Total % of Total Facilities Beds/Units Investment[1] Investment Rent[2] Rent 1 California 26 3,093 $ 245,180 17.4% $ 27,132 19.4% 2 Texas 32 3,939 266,041 18.9% 26,861 19.2% 3 Ohio
Slide 11: Lease Maturities
Lease Maturities (dollars in thousands) As of September 30, 2018 Lease Maturity % of Total % of Total Year[1] Investment[2] Investment Rent[3] Rent 2024 $ 34,415 2.4% $ 3,269 2.3% 2025 — — — — — 2026 58,157 4.1% 6,606 4.7% 2027 55,929 4.0% 5,861 4.2% 2028 79,914 5.7% 7,969 5.7% 2029 115,306 8.2% 9,9
Slide 12: Financial Overview
Financial Overview a
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, 2018 2017 2018 2017 Revenues: Rental income $ 35,332 $ 29,404 $ 103,856 $ 85,254 Tenant reimbursements 2,990 2,543 8,974 7,253 Independent living facilities 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, 2017 December 31, 2017 March 31, 2018 June 30, 2018 September 30, 2018 Net income $ 11,311 $ 2,252 $ 14,607 $ 13,267 $ 14,510 Deprec
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, 2017 December 31, 2017 March 31, 2018 June 30, 2018 September 30, 2018 Net income $ 11,311 $ 2,252 $ 14,607 $ 13,267 $ 1
Slide 16: Consolidated Balance Sheets
Consolidated Balance Sheets (dollars in thousands) September 30, 2018 December 31, 2017 Assets: Real estate investments, net $ 1,189,449 $ 1,152,261 Other real estate investments, net 18,083 17,949 Cash and cash equivalents 15,745 6,909 Accounts and other receivables, net 12,384 5,254 Prepaid expens
Slide 17: Key Debt Metrics
Key Debt Metrics Debt to Normalized EBITDA [1][2] Debt to Enterprise Value [3] 5.18 37.4% 5.00 34.9% 35.0% 4.87 33.2% 4.70 4.67 4.53 4.59 31.3% 30.8% 29.0% 4.19 25.5% 24.1% 25.0% 3.75 3.72 3.64 22.1% 6 6 6 6 7 7 7 7 8 8 8 6 6 6 6 7 7 7 7 8 8 8 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
Slide 18: Debt Summary
Debt Summary (dollars in thousands) September 30, 2018 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 61.2% $ (5,037) $ 294,963 Floating Rate Debt Senior unsecured term loan 4.192%
Slide 19: 2018 Guidance
2018 Guidance (shares in thousands) Low High Net income $ 0.72 $ 0.73 Real estate related depreciation and amortization 0.58 0.58 Gain on sale of real estate (0.03) (0.03) Funds from Operations (FFO) 1.27 1.28 Normalized FFO $ 1.27 $ 1.28 Net income $ 0.72 $ 0.73 Real estate related depreciation and
Slide 20: Equity Capital Transactions
Equity Capital Transactions Follow-On Equity Offering Activity 2015 2016 Q1 Q2 Q3 Q4 Total Number of Shares (000s) 16,330 — 9,775 — 6,325 16,100 Public Offering Price per Share $ 10.50 $ — $ 11.35 $ — $ 13.35 $ 12.14 [1] Gross Proceeds (000s) $ 171,465 $ — $ 110,946 $ — $ 84,439 $ 195,385 At-the-Mar
Slide 21: Other Financial Highlights
Other Financial Highlights Dividend History Normalized FFO Payout Ratio [1][2] $0.205 $0.205 $0.205 66.1% 66.1% 63.0% 60.7% 60.7% 63.8% 59.7% 64.1% 64.1% 64.1% $0.185 $0.185 $0.185 $0.185 $0.17 $0.17 $0.17 6 6 6 7 7 7 7 8 8 8 6 6 6 7 7 7 7 8 8 8 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
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)