Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q3 2021 Earnings Presentation
26 slides from Caretrust Reit's earnings presentation, Nov 8, 2021
Slide 1: Supplement
r 7 Supplement Ay TRUST
Slide 2: Disclaimers
02 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, bellef or expectations, inc
Slide 3: Contents
CONTACT INFORMATION 04 05 06 07-13 14-23 24-25
Slide 4: Contact Information
Greg Stapley - Chairman & Chief Executive Officer Dave Sedgwick – President & Chief Operating Officer Bill Wagner - Chief Financial Officer Mark Lamb - Chief Investment Officer Greg Stapley - Chairman Diana Laing Jon Kline Allen Barbieri Spencer Plumb Baird – Amanda Sweitzer | (414) 298-1706 Barclay
Slide 5: Snapshot
05 Snapshot CARETRUST REIT, INC. NASDAQ: CTRE Market Data (as of September 30, 2021) Credit Ratings Sap Fitch $1,969.7M 224 23,421 INVESTMENTS PROPERTIES OPERATING BEDS/UNITS 22 27 OPERATORS STATES Note: Portfolio amounts are as of September 30, 2021 and exclude our one mezzanine loan receivable, Ad
Slide 6: Investments
Investments Initial Operating Operator Property Type Location Facilities Initial Investment”! Beds/Units The Ensign Group 2014 Investments, 6 33,609 157 3,076 2015 lavestments 20 233,028 1840 22,268 2016 Investments 35 288,023 2,800 26,084 2017 Investments 36 309,805 3,324 28,000 2018 Investments n
Slide 7: Top Tenants Lease Coverage
Top 10 Tenants Lease Coverage Twelve Months Ended Twelve Months Ended Twelve Months Ended March 31, 2020 June 30, 2021 June 30, 2021 Pre COVID-19 Excludes Use of HHS Funds” Includes Amortized HHS Funds 1 The Ensign Group” 3.02« 3.19x 3.63x 4.4ax 3.63x 44d 2 Priority Management Group 1.50% 181K 1,46x
Slide 8: Portfolio Performance
08 Portfolio Performance As of September 30, 2021 Operating % of Total Facilities __Beds/Units Investment”! Investment % of Total Rent Current Yield"! Skilled Nursing 160 1664 = $1,351,596 686% § 134,139 10.6 % 9.9% Multi-Service Campus 4 3,608 316,933 91% 30,917 16.3% 82% Seniors Housing 241,147 24
Slide 9: Rent Diversification by Tenant
Rent Diversification by Tenant (dollars in thousands) As of September 30, 2021" Operating % of Total ies is/Units Investment”! Investment Rent”! % of Total Rent 1 The Ensign Group 95 10,148 § 551,960 28.0% $ 63,451 33.4% 2 Priority Management Group 5 2,144 300,657 15.3 % 21,919 4.7% 3 Cascadia Healt
Slide 10: Geographic Diversification
Geographic Diversification (% ofwun-ate rent # Less than 1%, Note: Numbers are as of September 30, 2021 and exclude our one mezzanine loan receivable. Additionally, amounts exclude one property classified as held for sale as of September 30, 2021, = w
Slide 11: Rent Diversification by State
Rent Diversification by State (dollars in thousands) As of September 30, 2021"! Operating % of Total Ue Facilities Beds/Units Investment Investment Rent! % of Total Rent 1 California 40 4856 $ 479,786 244% $ 48,352 25.5 % 2Texas 4B 5,472 395,752 20.1% 39,385 20.7% 3 Louisiana 8 1,164 179,141 9.1% 16
Slide 12: Lease Maturities
Lease Maturities (dollars in thousands As of September 30, 2021" Lease Maturity Yea! Investment % of Total Investment Rent”! % of Total Rent 2024 $ 15,800 08% § 1,492 08 % 2027 4,896 21% 4,193 25 % 2028 4,909 0.2 % 445 0.2 % 2029 114,116 5.8% 8,797 46% 2030 207,182 10.5 % 19,311 10.2 % 2031 533,400
Slide 13: Tenant Purchase Options
Tenant Purchase Options (dollars in thousands) As of September 30, 2021 Next Option Current Cash Asset Type Properties Lease Expiration Open Date Option Type! Rent % of Total Rent”! ALF 74 October 2034 1/1/2022 A $ 3,282 1.72 % SNF N November 2030 1/1/2022 c 4,944 2.60 % SNF 1 March 2029 4/1/2022 Bi
Slide 14: Financial Overview
Financial Overview ay
Slide 15: Consolidated Income Statements
Consolidated Income Statements (amounts in thousands, except per share data) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 Revenues: Rental income $ 48,087 $ 45,036 $ 141,077 $ 130,007 Independent living facilities - 634 - 1,874 Interest and oth
Slide 16: 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) September 30,2020 December 31, 2020 March 31, 2021 June 30,2021 September 30, 2021 Net income $ 21,552 $ 21,055 $ 20,486 $ 21,317 $ 1,918 Depreciation and amortization
Slide 17: Reconciliation of EBITDA, FFO and FAD (continued)
1 Reconciliation of EBITDA, (amounts in thousands, except per share data) Net income Real estate related depreciation and amortization Amortization of deferred financing fees Amortization of stock-based compensation Straight-line rental income (Gain) loss on sale of real estate Funds Available for D
Slide 18: Consolidated Balance Sheets
18 Consolidated Balance Sheets (dollars in thousands) Assets: Real estate investments, net Other real estate investments Assets held for sale, net Cash and cash equivalents Accounts and other receivables Prepaid expenses and other assets, net Deferred financing costs, net Total assets Liabilities an
Slide 19: Key Debt Metrics
Key Debt Metrics Net Debt to Annualized Net Debt to Enterprise Value !! Normalized Run Rate EBITDA 28.0% 25.1% 37 37 37 — og, 21.2% 1% 22.0% 22.1% 22.1% 1% 19.9% 20.0% 13.1% 19.1% 1 34 33 33 32 32 3.2 32 lJ [ [ | ; ll ‘e) io) Ce) \ sh SV 2 i) N “\ SS MK ‘o) hh PP PP AY SY KV SY OO AO a” ONO OW! aN o
Slide 20: Debt Summary
Debt Summary (dollars in thousands) September 30, 2021 % of Deferred Loan Net Carrying Debt Interest Rate Maturity Date Principal Principal Costs Value Fixed Rate Debt Senior unsecured notes payable 3.875 % 2028 $ 400,000 58.8% $ (5,937) $ 394,063 Floating Rate Debt Senior unsecured term loan 1.584%
Slide 21: 2021 Guidance Updated
2021 Guidance Updated (shares in thousands) Full Year 2021 Guidance” Net income Real estate related depreciation and amortization 0.57 0.57 (Gain) loss on sale of real estate : - Funds from Operations (FFO) 1.37 1.38 Lease termination revenue g Effect of the senior unsecured notes payable redemption
Slide 22: Equity Capital Transactions
Equity Capital Transactions Number of Shares (000s) 16,330 - 9715 - 6325 16,100 6,641 Public Offering Price per Share $ 10.50 $ -$ 135 $ -$ 1335 $ 124% $ 23.35 Gross Proceeds (000s) $ m6 $ - $ 10,946 $ - $ 84439 §$ 195,385 $ 155,073 At-the-Market Offering Activity 2016 2017 2018 2019 2020 2021" Numb
Slide 23: Other Financial Highlights
Other Financial Highlights $0,265 $0.265 $0.265 $0.250 $0.250$0.25 $0.225 $0.225 $0.225 $0.225 $0.38 $0. | nT 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
Slide 24: Glossary
24 Glossary 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
oh) Glossary Multi-Service Campus Facilities that include a combination of Skilled Nursing beds and Seniors Housing units, including Continuing Cate Retirement Communities. Normalized EBITDA EBITDA, adjusted for certain income and expense items the Company does not believe are indicative of its ongo
Slide 26: CareTrust REIT
CARETRUST REIT