Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q3 2022 Earnings Presentation
24 slides from Caretrust Reit's earnings presentation, Nov 9, 2022
Slide 1: Financial Supplement Third Quarter 2022
Exhibit 99.2 Financial Supplement Third Quarter 2022
Slide 2: Disclaimers
Disclaimers This supplement contains forward-looking statements them; (v) the ability and willingness of our tenants to recognize that non-GAAP information presented herein within the meaning of the Private Securities Litigation renew their leases with us upon their expiration, and the may not compa
Slide 3: Table of Contents
Table of Contents COMPANY PROFILE 04 CARETRUST SNAPSHOT 05 INVESTMENTS 06 PORTFOLIO OVERVIEW 07-13 Top 10 Tenants Lease Coverage Portfolio Performance Rent Diversification by Tenant Geographic Diversification Rent Diversification by State Lease Maturities Tenant Purchase Options Camarillo Senior Liv
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 ANALYST COVERAGE* properties. CareTrust REIT generates revenues primarily by leasing
Slide 5: Snapshot
Snapshot CARETRUST REIT, INC. NYSE: CTRE Market Data (as of September 30, 2022) Credit Ratings S&P Fitch ◦ Closing Price: $18.11 ◦ Corporate Rating: BB (stable) ◦ Corporate Rating: BB+ (stable) ◦ 52 Week Range: $23.59 – $15.90 ◦ Senior Unsecured Notes: BB+ ◦ Senior Unsecured Notes: BB+ ◦ Market Cap:
Slide 6: Investments
Investments (dollars in thousands) Initial Initial Operating Date Operator Property Type Location Facilities Investment[1] 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 2014 Investments 6 33,609 157 3,076 9.2 % 20
Slide 7: Top 10 Tenants Lease Coverage
[1] Top 10 Tenants Lease Coverage Twelve Months Ended Twelve Months Ended Twelve Months Ended March 31, 2020 June 30, 2022 June 30, 2022 Pre COVID-19 Excludes Use of HHS Funds[4] Includes Amortized HHS Funds[5] EBITDAR EBITDARM EBITDAR EBITDARM EBITDAR EBITDARM Coverage[2] Coverage[2] Coverage[2] Co
Slide 8: Portfolio Performance
Portfolio Performance (dollars in thousands) As of September 30, 2022 Operating % of Total [1] Asset Type Facilities Beds/Units Investment Investment Rent[2] % of Total Rent Current Yield[3] Skilled Nursing 154 16,193 $ 1,299,763 74.2 % $ 135,363 75.5 % 10.4 % Multi-Service Campus 24 3,466 363,306 2
Slide 9: Rent Diversification by Tenant
Rent Diversification by Tenant (dollars in thousands) As of September 30, 2022[1] Operating Facilities Beds/Units Rent[2] % of Total Rent 1 The Ensign Group 98 10,399 $ 66,078 36.8 % 2 Priority Management Group 15 2,144 29,214 16.3 % 3 Cascadia Healthcare 12 1,053 12,329 6.9 % 4 Providence Group 8 1
Slide 10: Geographic Diversification (% of run-rate rent)
Geographic Diversification (% of run-rate rent) 7% * 3% 1% * * * 8% 1% 1% 3% 1% 4% 2% 4% 3% * 28% 7% 1% * 23% 10% * Less than 1%. 10 Note: Numbers are as of September 30, 2022 and exclude our three secured loans receivable and two mezzanine loans receivable. Additionally, amounts exclude 19 properti
Slide 11: Rent Diversification by State
Rent Diversification by State (dollars in thousands) As of September 30, 2022[1] Operating Net-Leased Assets by State Facilities Beds/Units Rent[2] % of Total Rent 1 California 40 4,844 $ 49,655 27.7 % 2 Texas 43 5,597 40,733 22.7 % 3 Louisiana 8 1,164 17,172 9.6 % 4 Idaho 17 1,474 14,611 8.1 % 5 Ar
Slide 12: Lease Maturities
Lease Maturities (dollars in thousands) As of September 30, 2022[1] Lease Maturity Year[2] Rent[3] % of Total Rent 2024 $ 1,537 0.9 % 2027 5,342 3.0 % 2029 9,051 5.0 % 2030 11,353 6.3 % 2031 49,368 27.5 % 2032 17,708 9.9 % 2033 19,823 11.1 % 2034 40,945 22.8 % 2036 13,862 7.7 % 2038 10,401 5.8 % Tot
Slide 13: Tenant Purchase Options
Tenant Purchase Options (dollars in thousands) As of September 30, 2022 Next Option Asset Type Properties Lease Expiration Open Date Option Type[1] Current Cash Rent[2] % of Total Rent[2] ALF 5[6] October 2034 1/1/2023 [3] A $ 2,287 1.19 % [3] SNF 11 November 2030 1/1/2023 C 5,092 2.65 % [4] SNF 1 M
Slide 14: Consolidated Statements of Operations
Consolidated Statements of Operations (amounts in thousands, except per share data) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Revenues: Rental income $ 47,018 $ 48,087 $ 139,831 $ 141,077 Interest and other income 3,275 518 4,491 1,537 Total
Slide 15: 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, 2021 December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 Net income (loss) $ 11,918 $ 18,261 $ (43,264) $ 20,669 $ 709 Depreciation and amort
Slide 16: 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) September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 Net income (loss) $ 11,918 $ 18,261 $ (43,264) $
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets (amounts in thousands) September 30, 2022 December 31, 2021 Assets: Real estate investments, net $ 1,384,166 $ 1,589,971 Other real estate related investments, at fair value 158,662 15,155 Assets held for sale, net 77,708 4,835 Cash and cash equivalents 4,861 19,895 Accou
Slide 18: 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 30.2% 30.6% 28.0% 26.6% 25.1% 3.9 23.1% 22.0% 22.1% 22.1% 23.0% 20.0% 3.7 3.7 3.7 3.7 3.4 3.2 3.2 3.1 09 06 03 09 06 12 09 03 12 06 03 09 06 03 09 06 12 09 03 12 06 03 /31 /31 /31 /30 /30
Slide 19: Debt Summary
Debt Summary (dollars in thousands) September 30, 2022 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 51.3 % $ (5,072) $ 394,928 Floating Rate Debt Senior unsecured term loan 4.715
Slide 20: 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 21: Other Financial Highlights
Other Financial Highlights Dividend History Normalized FFO Payout Ratio [1][2] $0.275 $0.275 $0.275 74.3% 74.3% 74.3% $0.265 $0.265 $0.265 $0.265 73.5% 73.5% 73.5% 73.6% $0.250 $0.250 $0.250 $0.250 71.6% 69.4% 69.7% 67.9% 03 06 09 12 03 06 09 12 03 06 09 03 06 09 12 03 06 09 12 03 06 09 /3 /3 /3 /3
Slide 22: Glossary
Glossary Assisted Living Facilities (“ALFs”) significant renovations that necessarily result in a material Funds from Operations (“FFO”) Licensed healthcare facilities that provide personal care reduction in occupancy, or (iv) have been acquired for or Net income, excluding gains and losses from dis
Slide 23: 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 24: Tay
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