Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q3 2020 Earnings Presentation
25 slides from Caretrust Reit's earnings presentation, Nov 5, 2020
Slide 1: Exhibit 99.2 Q3 2020 Supplement
EXHIBIT 99.2EXHIBITEXHIBIT 99.2EXHIBITEXHIBIT 99.2EXHIBIT 99.299.2 99.2 Broadmoor Medical Lodge (Rockwall, TX)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, CareTrust at a Glance 4 development 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 September 30, 2020) Closing Price: $17.80 52 Week Range: $24.56– $7.16 Market Cap: $1,704M Enterprise Value: $2,185M Outstanding Shares: 95.7M 214 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 Date Operator Type Location Facilities Investment[1] Beds/Units [2] Bed/Unit [3] Initial Rent [4] Yield[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: Portfolio Overview: Top Tenants Lease Coverage
Top 10 Tenants Lease Coverage 6
Slide 7: Portfolio Performance
Portfolio Performance (dollars in thousands) As of September 30, 2020 Operating % of Total % of Total Asset Type Facilities Beds/Units Investment [1] Investment Rent [2] Rent Current Yield [3] Skilled Nursing 154 15,733 $1,259,279 72.2% $123,897 73.0% 9.8% Multi-Service Campus 19 2,741 241,363 13.8%
Slide 8: Rent Diversification by Tenant
Rent Diversification by Tenant (dollars in thousands) As of September 30, 2020[1] Operating % of Total % of Total Facilities Beds/Units Investment[2] Investment Rent[3] Rent 1 The Ensign Group 85 8,883 $ 451,126 25.9 % $ 53,406 31.5 % 2 Priority Management Group 15 2,145 300,004 17.2 % 27,575 16.2 %
Slide 9: Geographic Diversification
Top Five States TX 19.1% CA 21.1% LA 9.4% ID 8.0% 1 ALF AZ 7.3% Run-Rate Rent Others 35.1% 1 ALF TX 18.1% CA 18.7% LA 10.2% ID 7.9% 1 SNF AZ 3.5% Investment Others 41.6% CA 18.2% TX 20.9% ID 6.7% AZ 6.1% LA 5.3% Beds/Units Others 42.8% 9
Slide 10: Rent Diversification by State
Rent Diversification by State (dollars in thousands) As of September 30, 2020[1] Net-Leased Assets by State Operating % of Total % of Total Facilities Beds/Units Investment[2] Investment Rent[3] Rent 1 California 34 3,965 $ 326,321 18.7 % $ 35,748 21.1 % 2 Texas 37 4,557 315,741 18.1 % 32,479 19.1 %
Slide 11: Lease Maturities
Lease Maturities (dollars in thousands) As of September 30, 2020[1] Lease Maturity % of Total % of Total Year[2] Investment[3] Investment Rent[4] Rent 2026 58,157 3.3 % 5,241 3.1 % 2027 46,801 2.7 % 4,897 2.9 % 2028 68,193 3.9 % 7,573 4.5 % 2029 149,881 8.6 % 12,368 7.3 % 2030 207,160 11.9 % 18,925
Slide 12: Financial Overview
Las Colinas (Ontario, CA) 12
Slide 13: Consolidated Statements of Operations
Consolidated Statements of Operations (amounts in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Revenues: Rental income $ 45,036 $ 31,577 $ 130,007 $ 114,047 Independent living facilities 634 929 1,874 2,676 Interest and other
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, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 Net (loss) income $ (10,054) $ 20,662 $ 19,325 $ 18,935 $ 21,
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, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 Net (loss) income $ (10,054) $ 20,662 $ 19,325 $
Slide 16: Consolidated Balance Sheets
Consolidated Balance Sheets (dollars in thousands) September 30, 2020 December 31, 2019 Assets: Real estate investments, net $ 1,423,238 $ 1,414,200 Other real estate investments, net — 33,300 Assets held for sale, net — 34,590 Cash and cash equivalents 19,101 20,327 Accounts and other receivables,
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 4.1 28.8% 28.0% 3.5 3.5 3.3 3.3 3.3 3.4 3.3 24.2% 3.2 3.1 22.3% 23.1% 22.0% 19.9% 21.2% 18.1% 19.1% 3/31/2018 6/30/2018 9/30/2018 3/31/2019 6/30/2019 9/30/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2018 12
Slide 18: Debt Summary
Debt Summary (dollars in thousands) September 30, 2020 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 60.0 % $ (3,521) $ 296,479 Floating Rate Debt Senior unsecured term loan 1.649
Slide 19: 2020 Updated Guidance
2020 Updated Guidance Full Year 2020 Guidance[1] (shares in thousands) Low High Net income $ 0.83 $ 0.84 Real estate related depreciation and amortization 0.55 0.55 (Gain) loss on sale of real estate (0.00) (0.00) Funds from Operations (FFO) 1.38 1.39 Recovery of previously reversed rent (0.01) (0.0
Slide 20: Equity Capital Transactions
Equity Capital Transactions Follow-On Equity Offering Activity 2015 2016 2019[2] Q1 Q2 Q3 Q4 Total 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 $ — $ 110,946 $ — $ 84,43
Slide 21: Other Financial Highlights
Other Financial Highlights Dividend History $0.25 $0.25 $0.25 $0.225 $0.225 $0.225 $0.225 $0.205 $0.205 $0.205 $0.205 $0.185 $0.185 $0.185 $0.185 $0.17 $0.17 $0.17 $0.17 $0.16 $0.16 $0.16 $0.16 6/30/18 9/30/18 3/31/2015 6/30/2015 9/30/2015 3/31/2016 6/30/2016 9/30/2016 3/31/2017 6/30/2017 9/30/2017
Slide 22: Other Financial Highlights (continued)
Other Financial Highlights (continued) Normalized FFO per Share [1] $0.35 $0.35 $0.34 $0.34 $0.34 $0.34 $0.31 $0.32 $0.32 $0.32 $0.32 $0.32 $0.29 $0.27 $0.27 $0.28 $0.28 $0.28 $0.28 $0.24 $0.25 $0.25 $0.20 3/31/2015 6/30/2015 9/30/2015 3/31/2016 6/30/2016 9/30/2016 3/31/2017 6/30/2017 9/30/2017 3/31
Slide 23: Glossary
Glossary Assisted Living Facilities (“ALFs”) EBITDARM Coverage Licensed healthcare facilities that provide personal care services, support and Aggregate EBITDARM produced by all facilities under a master lease (or other housing for those who need help with daily living activities, such as bathing, e
Slide 24: Glossary
Glossary Independent Living Facilities (“ILFs”) Seniors Housing Also known as retirement communities or senior apartments, ILFs are not Includes ALFs, ILFs, dedicated memory care facilities and similar facilities. healthcare facilities. ILFs typically consist of entirely self-contained apartments, c
Slide 25: Grapevine Medical Lodge (Grapevine, TX)
Grapevine Medical Lodge (Grapevine, TX)