Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q4 2023 Earnings Presentation
27 slides from Caretrust Reit's earnings presentation, Feb 9, 2024
Slide 1: Financial Supplement Fourth Quarter 2023
Exhibit 99.2 Financial Supplement Fourth Quarter 2023
Slide 2: Disclaimers
Disclaimers This supplement contains forward-looking statements nonrenwal or in the event we replace an existing tenant, compare to similarly-termed non-GAAP information of within the meaning of the Private Securities Litigation as well as any obligations, including indemnification other companies (
Slide 3: Table of Contents
Table of Contents COMPANY PROFILE 04 COMPANY SNAPSHOT 05 INVESTMENTS 06 PORTFOLIO OVERVIEW 07-15 Portfolio Repositioning Top 10 Tenants Lease Coverage Portfolio Performance Rent Diversification by Tenant Geographic Diversification Rent Diversification by State Lease Maturities Camarillo Senior Livin
Slide 4: Company Profile
Company Profile CareTrust REIT is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of seniors housing and healthcare-related MANAGEMENT EQUITY ANALYST COVERAGE* properties. CareTrust REIT generates revenues primarily by
Slide 5: Snapshot
Snapshot CARETRUST REIT, INC. NYSE: CTRE Market Data (as of December 31, 2023) Credit Ratings S&P Fitch ◦ Closing Price: $22.38 ◦ Corporate Rating: BB (stable) ◦ Corporate Rating: BB+ (stable) ◦ 52 Week Range: $23.49 – $17.86 ◦ Senior Unsecured Notes: BB+ ◦ Senior Unsecured Notes: BB+ ◦ Market Cap:
Slide 6: Investments (dollars in thousands)
Investments (dollars in thousands) Date Operator Property Type Location Facilities Initial Investment[1] Initial Operating Beds/Units[2] Initial Rent [3] Initial Yield[4] 6/1/2014 The Ensign Group ALF, SNF, Campus Various 94 $ 501,673 10,053 $ 56,000 N/A 2019 Investments 27 340,884 3,348 30,168 8.8
Slide 7: Portfolio Repositioning
Portfolio Repositioning (dollars in thousands) (As of February 1, 2024) Retained Facilities Estimated Rent Type # of Properties Property Type # of Beds Year 1 Contractual Rent Commencement Re-Tenant 2 ALF 98 — Q2 2025[1] Re-Tenant/Conversion 2 ALF 200 1,741 [2] 2nd half 2024 4 298 $ 1,741 On the Mar
Slide 8: Top 10 Tenants Lease Coverage
[1] Top 10 Tenants Lease Coverage Twelve Months Ended Twelve Months Ended Twelve Months Ended March 31, 2020 September 30, 2023 September 30, 2023 Pre COVID-19 Excludes Use of HHS Funds[4] Includes Amortized HHS Funds[5] EBITDAR EBITDARM EBITDAR EBITDARM EBITDAR EBITDARM Coverage[2] Coverage[2] Cove
Slide 9: Portfolio Performance
Portfolio Performance (dollars in thousands) As of December 31, 2023 Operating % of Total [1] Asset Type Facilities Beds/Units Investment Investment Rent[2] % of Total Rent Current Yield[3] Skilled Nursing 150 16,535 $ 1,407,774 71.5 % $ 147,363 73.0 % 10.5 % Multi-Service Campus 25 3,593 388,582 19
Slide 10: Rent Diversification by Tenant
Rent Diversification by Tenant (dollars in thousands) As of December 31, 2023[1] Operating Facilities Beds/Units Rent[2] % of Total Rent 1 The Ensign Group 98 10,396 $ 67,820 33.6 % 2 Priority Management Group 15 2,144 31,151 15.4 % 3 Cascadia Healthcare 12 1,053 12,765 6.3 % 4 Providence Group 7 99
Slide 11: Geographic Diversification (% of run-rate rent)
Geographic Diversification (% of run-rate rent) 7% * 2% 1% * * 1% 7% 1% * 1% 1% 1% 1% 2% 4% 4% 3% * 31% * * 7% 1% 1% 9% 22% * Less than 1%. 11 Note: Numbers are as of December 31, 2023 and exclude our eight secured loans receivable, one mezzanine loan receivable and one preferred equity investment.
Slide 12: Rent Diversification by State
Rent Diversification by State (dollars in thousands) As of December 31, 2023[1] Operating Net-Leased Assets by State Facilities Beds/Units Rent[2] % of Total Rent 1 California 46 5,676 $ 61,921 30.7 % 2 Texas 45 5,871 44,705 22.2 % 3 Louisiana 8 1,164 18,375 9.1 % 4 Idaho 17 1,474 15,102 7.5 % 5 Ari
Slide 13: Lease Maturities
Lease Maturities (dollars in thousands) As of December 31, 2023[1] Lease Maturity Year[2] Rent[3] % of Total Rent 2027 $ 5,476 2.7 % 2029 12,922 6.4 % 2030 5,107 2.5 % 2031 51,160 25.4 % 2032 18,502 9.2 % 2033 20,804 10.3 % 2034 33,984 16.8 % 2036 14,209 7.0 % [4] 2038 39,575 19.7 % Total $ 201,739
Slide 14: Tenant Purchase Options
Tenant Purchase Options (dollars in thousands) As of December 31, 2023[1] Option Period Asset Type Properties Lease Expiration Open Date[2] Option Type[3] Current Cash Rent[4] % of Total Rent[4] [6] SNF 1 March 2029 4/1/2022 A / B [7] 832 0.40 % [5] [8] SNF / Campus 1 October 2032 1/1/2024 A 1,031 0
Slide 15: Other Real Estate Investments
Other Real Estate Investments (dollars in thousands) As of December 31, 2023 Mortgage Loans Operating Contractual Maturity Investment Facilities Property Type Location Beds/Units Investment Interest Rate Date Mortgage loan[3] 1 ALF IN 162 $ 2,000 9.0 % 5/31/2024 Mortgage loan 4 SNF CA 439 11,713 [2]
Slide 16: Consolidated Statements of Operations
Consolidated Statements of Operations (amounts in thousands, except per share data) For the Three Months Ended December 31, For the Twelve Months Ended December 31, 2023 2022 2023 2022 Revenues: Rental income $ 53,473 $ 47,675 $ 198,599 $ 187,506 Interest and other income 6,261 4,135 19,171 8,626 To
Slide 17: Reconciliation of EBITDA, FFO and FAD
Reconciliation of EBITDA, FFO and FAD Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended (amounts in thousands) December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Net income (loss) attributable to CareTrust REIT, Inc. $ 14,380 $ 19,227 $ (484) $ 8,
Slide 18: Reconciliation of EBITDA, FFO and FAD (continued)
Reconciliation of EBITDA, FFO and FAD (continued) Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended (amounts in thousands, except per share data) December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Net income (loss) attributable to CareTrust REIT,
Slide 19: Consolidated Balance Sheets
Consolidated Balance Sheets (amounts in thousands) December 31, 2023 December 31, 2022 Assets: Real estate investments, net $ 1,567,119 $ 1,421,410 Other real estate related investments 180,368 156,368 Assets held for sale, net 15,011 12,291 Cash and cash equivalents 294,448 13,178 Accounts and othe
Slide 20: Key Debt Metrics
Key Debt Metrics Net Debt to Annualized Net Debt to Enterprise Value [2] Normalized Run Rate EBITDA [1] 4.3 4.2 3.9 3.8 3.8 30.2% 30.6% 3.7 3.7 3.7 3.7 26.6% 27.8% 26.2% 26.2% [3] 25.1% 22.1% 23.0% [3] 2.5 16.8% 9.5% 1.4 12 09 06 12 09 03 12 06 03 09 06 12 09 06 12 09 03 12 06 03 09 06 /31 /31 /31 /
Slide 21: Debt Summary
Debt Summary (dollars in thousands) December 31, 2023 Deferred Loan Net Carrying Debt Interest Rate Maturity Date Principal % of Principal Costs Value Fixed Rate Debt Senior unsecured notes payable 3.875 % 2028 $ 400,000 66.7 % $ (3,961) $ 396,039 Floating Rate Debt Senior unsecured term loan 6.958
Slide 22: 2024 Guidance
2024 Guidance (shares in thousands) Full Year 2024 Guidance[1] Low High Net income attributable to CareTrust REIT, Inc. $ 1.02 $ 1.04 Real estate related depreciation and amortization 0.40 0.40 Funds from Operations (FFO) attributable to CareTrust REIT, Inc. 1.42 1.44 Property operating expenses 0.0
Slide 23: Equity Capital Transactions
Equity Capital Transactions Follow-On Equity Offering Activity 2015 2016 2019 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 $ — $ 84,439 $
Slide 24: Other Financial Highlights
Other Financial Highlights Dividend History Normalized FFO Payout Ratio [1][2] $0.275 $0.275 $0.275 $0.275 $0.280 $0.280 $0.280 $0.280 $0.265 $0.265 $0.265 80.0% 80.0% 80.0% 78.0% 71.6% 69.7% 74.3% 74.3% 74.3% 72.4% 67.9% 06 09 12 03 06 09 12 03 06 09 12 06 09 12 03 06 09 12 03 06 09 12 /3 /3 /3 /3
Slide 25: Glossary
Glossary Assisted Living Facilities (“ALFs”) occupancy, or (iv) have been acquired for or recently Funds from Operations (“FFO”) Licensed healthcare facilities that provide personal care transferred to new operators for turnaround and are pre- Net income attributable to CareTrust REIT, Inc, excludin
Slide 26: Glossary
Glossary Multi-Service Campus Seniors Housing with market and other conditions. Moreover, by excluding Facilities that include a combination of Skilled Nursing Includes ALFs, ILFs, dedicated memory care facilities and items not indicative of ongoing results, Normalized FAD beds and Seniors Housing u
Slide 27: Tay
Tay ww CARETRUST REIT