Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q1 2018 Earnings Presentation
24 slides from Caretrust Reit's earnings presentation, May 8, 2018
Slide 1: The Rio at Cabezon (Rio Rancho, NM)
EXHIBIT 99.2 EXHIBITEXHIBIT 99.2 99.2 TheCascadia Rio at ofCabezon Nampa (Rio (Nampa, Rancho, ID) NM) The Rio at Cabezon (Rio Rancho, NM)
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, incl
Slide 3: Company Profile
Company Profile Company Profile 3 CareTrust at a Glance 4 CareTrust REIT is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition and leasing Investments 5 of seniors housing and healthcare-related properties. CareTrust REIT generates revenues primar
Slide 4: CareTrust at a Glance
CareTrust REIT, Inc. Nasdaq: CTRE Market Data (as of March 31, 2018) Closing Price: $13.40 52 Week Range: $19.86 – $12.96 Market Cap: $1,020M Enterprise Value: $1,606M Outstanding Shares: 76.1M 188 24 States Credit Ratings Properties Credit Ratings S&P S&PCorporate Rating: B+ (positive) CorporateSen
Slide 5: Investments
Investments (dollars in thousands) Initial Initial Investment Operating Cost per Date Operator Property Type Location Facilities [1] Bed/Unit [2] Bed/Unit [3] Initial Rent [4] Initial Yield[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 March 31, 2018 Operating % of Total % of Total Asset Type Facilities Beds/Units Investment [1] Investment Rent [2] Rent Current Yield [3] Skilled Nursing 136 13,285 $ 979,515 71.1% $ 99,234 72.8% 10.1% Multi-Service Campus 16 2,264 177,146 12.9% 17,
Slide 7: Tenant Summary
Tenant Summary The Ensign Group (NASDAQ; ENSG) is a p nwide operator of 232 skilled nursin which are owned by CareTrust hip operator, Ensign jousing facilities in Ohio, nd Georgia, 18 of which are TRILLIUM# t a__privately-hel company which operates cae Bi acute facilities in Texas and Louisiana, 7 o
Slide 8: Rent Diversification by Tenant
Rent Diversification by Tenant (dollars in thousands) As of March 31, 2018 Operating % of Total % of Total Facilities Beds/Units Investment[1] Investment Rent[2] Rent 1 The Ensign Group 92 9,698 501,246 36.4% 57,672 42.3% 2 Trillium Healthcare Group 18 1,362 127,278 9.2% 11,568 8.5% 3 Priority Manag
Slide 9: Top Five States
Top Five States OH: 12.0% AZ: 6.6% ID: 7.6% CA: 19.1% 1 ALF TX: 19.1% Others: 35.6% Run-Rate Rent Run-Rate 1 ALF OH: 13.9% AZ: 4.4% ID: 7.4% CA: 16.5% 1 SNF Investment TX: 19.2% Others: 38.6% OH: 8.0% AZ: 7.2% ID: 6.7% CA: 16.0% TX: 21.2% Beds/Units Others: 40.9% 9
Slide 10: Rent Diversification by State
Rent Diversification by State (dollars in thousands) As of March 31, 2018 Net-Leased Assets by State Operating % of Total % of Total Facilities Beds/Units Investment[1] Investment Rent[2] Rent 1 Texas 32 3,930 $ 263,735 19.2% $ 26,077 19.1% 2 California 25 2,971 226,538 16.5% 26,065 19.1% 3 Ohio 16
Slide 11: Lease Maturities
Lease Maturities (dollars in thousands) As of March 31, 2018 Lease Maturity % of Total % of Total Year[1] Investment[2] Investment Rent[3] Rent 2019 $ 34,415 2.5% $ 3,225 2.4% 2026 58,157 4.2% 6,445 4.7% 2027 55,929 4.1% 5,718 4.2% 2028 79,914 5.8% 7,785 5.7% 2029 114,771 8.3% 9,801 7.2% 2030[4] 323
Slide 12: Trust
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Slide 13: Consolidated Income Statements
Consolidated Income Statements (amounts in thousands, except per share data) Three Months Ended March 31, 2018 2017 Revenues: Rental income $ 33,816 $ 27,339 Tenant reimbursements 2,968 2,321 Independent living facilities 799 793 Interest and other income 518 155 Total revenues 38,101 30,608 Expense
Slide 14: Reconciliation of EBITDA, FFO and FAD
Reconciliation of EBITDA, FFO and FAD Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended (dollars in thousands) March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018 Net income $ 10,281 $ 2,030 $ 11,311 $ 2,252 $ 14,607 Depreciation and amortization 9,07
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) March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018 Net income $ 10,281 $ 2,030 $ 11,311 $ 2,252 $ 14,607
Slide 16: Consolidated Balance Sheets
Consolidated Balance Sheets (dollars in thousands) March 31, 2018 December 31, 2017 Assets: Real estate investments, net $ 1,177,140 $ 1,152,261 Other real estate investments, net 18,031 17,949 Cash and cash equivalents 14,195 6,909 Accounts and other receivables, net 5,999 5,254 Prepaid expenses an
Slide 17: Key Debt Metrics
Key Debt Metrics Debt to Normalized EBITDA [1][2] Debt to Enterprise Value [3] 7.06 42.3% 43.1% 37.4% 34.9% 35.0% 33.2% 5.37 5.18 31.3% 30.8% 5.00 4.87 4.70 4.59 4.67 4.53 24.1% 25.5% 22.1% 3.75 3.72 5 5 6 6 6 6 7 7 7 7 8 5 5 6 6 6 6 7 7 7 7 8 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
Slide 18: Debt Summary
Debt Summary (dollars in thousands) March 31, 2018 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 50.0% $ (5,416) $ 294,584 Floating Rate Debt Senior unsecured term loan 3.837% [1]
Slide 19: Updated 2018 Guidance
Updated 2018 Guidance (shares in thousands) Low High Net income $ 0.70 $ 0.72 Real estate related depreciation and amortization 0.59 0.59 Gain on sale of real estate (0.03) (0.03) Funds from Operations (FFO) 1.26 1.28 Normalized FFO $ 1.26 $ 1.28 Net income $ 0.70 $ 0.72 Real estate related deprecia
Slide 20: Equity Capital Transactions
Equity Capital Transactions Follow-On Equity Offering Activity 2015 2016 Q1 Q2 Q3 Q4 Total Number of Shares (000s) 16,330 — 9,775 — 6,325 16,100 Public Offering Price per Share $ 10.50 $ — $ 11.35 $ — $ 13.35 $ 12.14 [1] Gross Proceeds (000s) $ 171,465 $ — $ 110,946 $ — $ 84,439 $ 195,385 At-the-Mar
Slide 21: Other Financial Highlights
Other Financial Highlights Dividend History Normalized FFO Payout Ratio [1][2] 66.1% 66.1% $0.205 64.8% 64.0% 63.8% $0.185 $0.185 $0.185 $0.185 63.0% 63.0% $0.17 $0.17 $0.17 $0.17 60.7% 60.7% $0.16 59.7% 5 6 6 6 6 7 7 7 7 8 5 6 6 6 6 7 7 7 7 8 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 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)