Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q2 2019 Earnings Presentation
24 slides from Caretrust Reit's earnings presentation, Aug 6, 2019
Slide 1: EXHIBITEXHIBITEXHIBIT 99.2 99.2 99.2 Avantara Crown Point (Parker, CO) Downey Care Center (Downey, CA)
EXHIBITEXHIBITEXHIBIT 99.2 99.2 99.2 Avantara Crown Point (Parker, CO) 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, development CareTrust at a Glance 4 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 June 30, 2019) Closing Price: $23.78 52 Week Range: $25.54– $16.29 Market Cap: $2,273M Enterprise Value: $2,815M Outstanding Shares: 95.6M 213 28 States Credit Ratings Properties Credit Ratings S&P S&PCorporate Rating: B+ (positive) CorporateSenio
Slide 5: Investments
Investments (dollars in thousands) Property Initial Initial Operating Cost per Initial Yield Date Operator Type Location Facilities Investment[1] Bed/Unit [2] Bed/Unit [3] Initial Rent [4] [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 June 30, 2019 Operating % of Total % of Total Asset Type Facilities Beds/Units Investment [1] Investment Rent [2] Rent Current Yield [3] Skilled Nursing 156 15,754 $1,268,911 72.9% $129,114 74.4% 10.2% Multi-Service Campus 21 3,115 249,472 14.3% 24,
Slide 7: Tenant Summary
Tenant Summary S ENSIGN == GROUP 7, PRIORITY te —_ yz) MANAGEMENT ! 227% TRILLIUMS&& CASCMMDIA Premier 3.4% i Expertise. Partnership. Growth.
Slide 8: Rent Diversification by Tenant
Rent Diversification by Tenant (dollars in thousands) As of June 30, 2019 Operating % of Total % of Total Facilities Beds/Units Investment[1] Investment Rent[2] Rent 1 The Ensign Group 93 9,923 510,121 29.3% 60,998 35.1% 2 Priority Management Group 15 2,145 296,809 17.1% 26,968 15.5% 3 Trillium Heal
Slide 9: Geographic Diversification
Top Five States OH: 9.9% LA: 9.0% ID: 7.1% CA: 18.9% TX: 18.5% 1 ALF Run-Rate Rent Run-Rate Others: 36.6% 1 ALF OH: 11.2% LA: 10.1% CA: 16.6% ID: 6.8% 1 SNF TX: 18.0% Investment Others: 37.3% OH: 6.8% LA: 5.4% ID: 6.2% CA: 16.7% TX: 21.3% Beds/Units Others: 43.6% 9
Slide 10: Rent Diversification by State
Rent Diversification by State (dollars in thousands) As of June 30, 2019 Net-Leased Assets by State Operating % of Total % of Total Facilities Beds/Units Investment[1] Investment Rent[2] Rent 1 California 30 3,624 $ 289,759 16.6% $ 32,808 18.9% 2 Texas 37 4,628 313,406 18.0% 32,043 18.5% 3 Ohio 16 1
Slide 11: Lease Maturities
Lease Maturities (dollars in thousands) As of June 30, 2019 Lease Maturity % of Total % of Total Year[1] Investment[2] Investment Rent[3] Rent 2026 58,157 3.3% 6,733 3.9% 2027 55,929 3.2% 5,974 3.4% 2028 79,914 4.6% 8,123 4.7% 2029 152,333 8.8% 13,624 7.8% 2030 283,398 16.3% 25,652 14.8% 2031 535,16
Slide 12: 12
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Slide 13: Consolidated Income Statements
Consolidated Income Statements (amounts in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenues: Rental income $ 44,123 $ 34,708 $ 82,470 $ 68,524 Tenant reimbursements[1] — 3,016 — 5,984 Independent living facilities 887 845 1,747 1,64
Slide 14: Reconciliation of EBITDA, FFO and FAD
Reconciliation of EBITDA, FFO and FAD Quarter Quarter Ended Quarter Quarter Quarter Ended September 30, Ended Ended Ended (amounts in thousands, except per share data) June 30, 2018 2018 December 31, 2018 March 31, 2019 June 30, 2019 Net income $ 13,267 $ 14,510 $ 15,539 $ 16,053 $ 19,698 Depreciati
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) June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 June 30, 2019 Net income $ 13,267 $ 14,510 $ 15,539 $ 16,053 $ 19,69
Slide 16: Consolidated Balance Sheets
Consolidated Balance Sheets (dollars in thousands) June 30, 2019 December 31, 2018 Assets: Real estate investments, net $ 1,482,040 $ 1,216,237 Other real estate investments, net 26,725 18,045 Cash and cash equivalents 2,629 36,792 Accounts and other receivables, net 9,705 11,387 Prepaid expenses an
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 4.6 4.5 4.4 30.8% 30.5% 4.1 28.8% 3.7 24.1% 24.7% 24.2% 3.6 22.3% 3.5 20.2% 3.3 3.3 3.3 18.1% 19.1% 6 7 7 7 7 8 8 8 8 9 9 6 7 7 7 7 8 8 8 8 9 9 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 0 0
Slide 18: Debt Summary
Debt Summary (dollars in thousands) June 30, 2019 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 55.0% $ (4,468) $ 295,532 Floating Rate Debt Senior unsecured term loan 3.911% [1] 2
Slide 19: 2019 Guidance
2019 Guidance (shares in thousands) Low High Net income $ 0.69 $ 0.71 Real estate related depreciation and amortization 0.56 0.56 Impairment of real estate investment 0.08 0.08 Funds from Operations (FFO) 1.33 1.35 Write-off accounts and straight-line rent receivable 0.02 0.02 Normalized FFO $ 1.35
Slide 20: Equity Capital Transactions
Equity Capital Transactions Follow-On Equity Offering Activity 2015 2016 2019 Q1 Q2 Q3 Q4 Total Q1 Q2[2] 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
Slide 21: Other Financial Highlights
Other Financial Highlights Dividend History Normalized FFO Payout Ratio [1][2] $0.225 $0.225 66.1% 66.1% 70.3% 63.8% 59.7% 64.1% 64.1% 64.1% 64.1% 64.3% $0.205 $0.205 $0.205 $0.205 $0.185 $0.185 $0.185 $0.185 7 7 7 7 8 8 8 8 9 9 7 7 7 7 8 8 8 8 9 9 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
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)