Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q4 2020 Earnings Presentation
26 slides from Caretrust Reit's earnings presentation, Feb 10, 2021
Slide 1: EXHIBIT 99.2EXHIBIT 99.2EXHIBIT 99. Downey Care Center (Downey, CA) EXHIBIT 99.2EXHIBIT 9.2 Broadmo r
EXHIBIT 99.2EXHIBIT 99.2EXHIBIT 99. Downey Care Center (Downey, CA) EXHIBIT 99.2EXHIBIT 9.2 Broadmo r Medical Lodge (Rockwall, TX) EXHIBIT 99.2
Slide 2: Disclaimers
2 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, incl
Slide 3: Company Profile
3 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 properties. CareTrust REIT generates revenues primarily by leasing properties to a diverse gr
Slide 4: CareTrust at a Glance
4 Note: Amounts are as of December 31, 2020 and exclude our one mezzanine loan receivable. Additionally, excludes one property held for sale as of December 31, 2020 that was sold in February 2021. Credit Ratings S&P Corporate Rating: B+ (positive) Senior Unsecured Notes: BB- Moody’s Corporate Rating
Slide 5: Investments
5 Investments Notes: [1] Initial Investment for pre-spin properties represents Ensign's and Pennant's gross book value. Initial Investment for post-spin properties represents CareTrust REIT’s purchase price and transaction costs. [2] Initial Operating Beds/Units as of the acquisition date. [3] Initi
Slide 6: Top Tenants Lease Coverage
6 Top 10 Tenants Lease Coverage Twelve Months Ended March 31, 2020 Six Months Ended September 30, 2020 Twelve Months Ended September 30, 2020 Six Months Ended September 30, 2020 Twelve Months Ended September 30, 2020 Pre COVID-19 Excludes Use of HHS Funds[3] Includes Amortized HHS Funds[4] EBITDAR C
Slide 7: Portfolio Performance
Portfolio Performance (dollars in thousands) As of December 31, 2020 Asset Type Facilities Operating Beds/Units Investment [1] % of Total Investment Rent [2] % of Total Rent Current Yield [3] Skilled Nursing 156 16,148 $1,292,812 72.4% $127,305 73.4% 9.8% Multi-Service Campus 20 2,923 248,740 13.9%
Slide 8: Rent Diversification by Tenant
8 Rent Diversification by Tenant Notes: [1] All amounts exclude our one mezzanine loan receivable and one property classified as held for sale as of December 31, 2020 that was sold in February 2021. [2] Investment for pre-spin properties represents Ensign's and Pennant's gross book value. Investment
Slide 9: Geographic Diversification
TX 23.3% CA 17.7% ID 6.5% AZ 6.0% LA 5.2% Others 41.3% 9 1 SNF 1 ALF 1 ALF Top Five States TX 21.0% CA 20.7% LA 9.4% ID 7.9% AZ 7.2% Others 33.8% TX 20.3% CA 18.3% LA 10.0% ID 7.7% AZ 3.4% Others 40.3% R u n -R at e R en t In ve st m en t B ed s/ U n it s
Slide 10: Rent Diversification by State
10 Rent Diversification by State Notes: [1] All amounts exclude our one mezzanine loan receivable and one property held for sale as of December 31, 2020 that was sold in February 2021. [2] Investment for pre-spin properties represents Ensign's and Pennant's gross book value. Investment for post-spin
Slide 11: Lease Maturities
11 Lease Maturities Lease Maturity Year % o f R en t Notes: [1] All amounts exclude our one mezzanine loan receivable and one property held for sale as of December 31, 2020 that was sold in February 2021. [2] Lease Maturity Year represents the scheduled expiration year of the primary term of the lea
Slide 12: Tenant Purchase Options
Tenant Purchase Options (dollars in thousands) As of December 31, 2020[1] Asset Type Properties Lease Expiration 1st Option Open Year Option Type Current Cash Rent % of Total[1] ALF 7 October 2034 1/1/2021 A $ 3,207 1.85 % SNF 11 January 2031 1/1/2022 C $ 4,800 2.77 % SNF 1 March 2030 4/1/2022 B / C
Slide 13: Las Colinas (Ontario, CA)
13 Las Colinas (Ontario, CA)
Slide 14: Consolidated Income Statements
14 Consolidated Income Statements (amounts in thousands, except per share data) Three Months Ended December 31, Twelve Months Ended December 31, 2020 2019 2020 2019 Revenues: Rental income $ 43,605 $ 41,620 $ 173,612 $ 155,667 Independent living facilities 203 713 2,077 3,389 Interest and other inco
Slide 15: Reconciliation of EBITDA, FFO and FAD
Reconciliation of EBITDA, FFO and FAD 15 (amounts in thousands, except per share data) Quarter Ended December 31, 2019 Quarter Ended March 31, 2020 Quarter Ended June 30, 2020 Quarter Ended September 30, 2020 Quarter Ended December 31, 2020 Net income $ 20,662 $ 19,325 $ 18,935 $ 21,552 $ 21,055 Dep
Slide 16: Reconciliation of EBITDA, FFO and FAD
Reconciliation of EBITDA, FFO and FAD 16 [1] For the periods presented, the diluted weighted average shares have been calculated using the treasury stock method. See Glossary for additional information. (amounts in thousands, except per share data) Quarter Ended December 31, 2019 Quarter Ended March
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets 17 (dollars in thousands) December 31, 2020 December 31, 2019 Assets: Real estate investments, net $ 1,448,099 $ 1,414,200 Other real estate investments, net 15,000 33,300 Assets held for sale, net 7,226 34,590 Cash and cash equivalents 18,919 20,327 Accounts and other re
Slide 18: Key Debt Metrics
18 Key Debt Metrics [1] Net Debt to Normalized EBITDA compares total debt as of the last day of the quarter to the annualized Normalized EBITDA for the quarter. [2] See "Financials & Filings - Quarterly Results" on the Investors section of our website at http://investor.caretrustreit.com for reconci
Slide 19: Debt Summary
19 Debt Summary Notes: [1] Funds can be borrowed at applicable LIBOR plus 1.50% to 2.20% or at the Base Rate (as defined) plus 0.50% to 1.20%. [2] Funds can be borrowed at applicable LIBOR plus 1.10% to 1.55% or the Base Rate (as defined) plus 0.10% to 0.55%. [3] Maturity date assumes exercise of tw
Slide 20: 2021 Guidance
2021 Guidance 20 Full Year 2021 Guidance[1] (shares in thousands) Low High Net income $ 0.84 $ 0.86 Real estate related depreciation and amortization 0.56 0.56 (Gain) loss on sale of real estate — — Funds from Operations (FFO) 1.40 1.42 Normalized FFO $ 1.40 $ 1.42 Net income $ 0.84 $ 0.86 Real esta
Slide 21: Equity Capital Transactions
21 Equity Capital Transactions Notes: [1] Represents average offering price per share for follow-on equity offerings. [2] In connection with the entry into the equity distribution agreement and the commencement of the new $500.0 million ATM Program in March 2020 (the "New ATM Program") our “at-the-m
Slide 22: Other Financial Highlights
Other Financial Highlights 22 Notes: [1] Normalized FFO Payout Ratio represents dividends declared divided by Normalized FFO, in each case for the applicable quarter. [2] See “Financials & Filings - Quarterly Results” on the Investors section of our website at http://investor.caretrustreit.com for a
Slide 23: Other Financial Highlights (continued)
Other Financial Highlights (continued) Normalized FFO per Share [1] Normalized FFO [1] Notes: [1] See “Financials & Filings - Quarterly Results” on the Investors section of our website at http://investor.caretrustreit.com for a reconciliation of Normalized FFO and Normalized FFO per Share to the mos
Slide 24: Glossary
Glossary 24 Assisted Living Facilities (“ALFs”) Licensed healthcare facilities that provide personal care services, support and housing for those who need help with daily living activities, such as bathing, eating and dressing, yet require limited medical care. The programs and services may include
Slide 25: Glossary
Glossary 25 Independent Living Facilities (“ILFs”) Also known as retirement communities or senior apartments, ILFs are not healthcare facilities. ILFs typically consist of entirely self-contained apartments, complete with their own kitchens, baths and individual living spaces, as well as parking for
Slide 26: Grapevine Medical Lodge (Grapevine, TX)
Grapevine Medical Lodge (Grapevine, TX)