Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q3 2024 Earnings Presentation
29 slides from Caretrust Reit's earnings presentation, Oct 30, 2024
Slide 1: Financial Supplement Third Quarter 2024
Exhibit 99.2 Financial Supplement Third Quarter 2024
Slide 2: Disclaimers
Disclaimers This supplement contains forward-looking statements nonrenewal or in the event we replace an existing for GAAP financial information, and should recognize within the meaning of the Private Securities Litigation tenant, as well as any obligations, including that non-GAAP information prese
Slide 3: Table of Contents
Table of Contents COMPANY PROFILE 04 COMPANY SNAPSHOT 05 INVESTMENTS 06-08 PORTFOLIO OVERVIEW 09-16 Top 10 Tenants Lease Coverage Portfolio Performance Rent Diversification by Tenant Geographic Diversification Diversification by State Lease Maturities Tenant Purchase Options Bayshire Carlsbad (Carls
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 EQUITY ANALYST COVERAGE* properties. CareTrust REIT generates Dave Sedgwick – Chief
Slide 5: Snapshot
Snapshot CARETRUST REIT, INC. NYSE: CTRE Market Data (as of September 30, 2024) Credit Ratings S&P Fitch ◦ Closing Price: $30.86 ◦ Corporate Rating: BB (positive) ◦ Corporate Rating: BB+ (stable) ◦ 52 Week Range: $31.51 – $19.87 ◦ Senior Unsecured Notes: BB+ ◦ Senior Unsecured Notes: BB+ ◦ Market Ca
Slide 6: CareTrust Announces Agreement to Acquire $500 Million Portfolio
CareTrust Announces Agreement to Acquire $500 Million Portfolio Overview of Portfolio Southeast Portfolio • CareTrust, together with a joint venture investor, has entered into a binding agreement to acquire a portfolio of Total Investment / $500M / 31 SNF assets for a purchase price of $500 million
Slide 7: Investments (dollars in thousands)
Investments (dollars in thousands) Date Operator Property Type Location Facilities Initial Investment Initial Operating Beds/Units[1] Rent/Interest [2] Yield[3] 01/03/2024 Oxford Health Group ALF CA 1 $ 11,036 86 $ 1,022 9.3 % [5] 01/25/2024 Mezzanine Loan SNF MO 10 9,800 1,397 1,372 14.0 % 02/01/20
Slide 8: Historical Investments by Year (dollars in millions)
Historical Investments by Year (dollars in millions) 10 Year - Average Historical Investment Yield: 9.0% $1,000 $917 $750 $500 $341 $310 $288 $288 $233 $250 $197 $169 $112 $105 $— 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 12/31/2024 YTD Annual Investment 08
Slide 9: Top 10 Tenants Lease Coverage
Top 10 Tenants Lease Coverage Twelve Months Ended Twelve Months Ended March 31, 2024 June 30, 2024 EBITDAR EBITDARM EBITDAR EBITDARM [1] Coverage Coverage[1] Coverage[1] Coverage[1] 1 The Ensign Group 3.30x 4.17x 3.30x 4.18x 2 Priority Management Group 1.21x 1.52x 1.22x 1.52x 3 PACS Group 2.43x 3.02
Slide 10: Portfolio Performance
Portfolio Performance (dollars in thousands) As of September 30, 2024 Operating % of Total Rent / % of Total Rent / Asset Type Facilities Investment Current Yield Beds/Units Investment Interest Interest Investment in Real Estate Properties Skilled Nursing 159 17,300 $ 1,587,521 53.7 % $ 164,809 55.9
Slide 11: Rent Diversification by Tenant for Net-Leased Assets
Rent Diversification by Tenant for Net-Leased Assets (dollars in thousands) As of September 30, 2024[1] Operating Net Leased Assets Beds/Units Rent % of Total Rent 1 The Ensign Group 101 10,774 $ 72,170 32.2 % 2 Priority Management Group 15 2,144 31,142 13.9 % 3 PACS Group 10 1,230 16,258 7.3 % 4 Ba
Slide 12: Geographic Diversification (% of run-rate rent and interest)
Geographic Diversification (% of run-rate rent and interest) 7% * 4% 1% * 5% * 6% * 1% * 1% * 1% 1% 3% 2% 1% 3% 26% * 1% 3% 8% 1% 5% 1% * 1% 17% 6% 1% 1% * Less than 1%. 12 Note: Numbers are as of September 30, 2024 and include properties securing our other real estate related investments. Numbers e
Slide 13: Rent & Interest Diversification by State
Rent & Interest Diversification by State (dollars in thousands) As of September 30, 2024[1] Operating % of Total Rent/ Investments by State Facilities Beds/Units Rent/Interest Interest 1 California 65 7,993 $ 76,692 26.0 % 2 Texas 47 6,035 48,773 16.6 % 3 North Carolina 14 1,610 23,037 7.8 % 4 Louis
Slide 14: Lease Maturities
Lease Maturities (dollars in thousands) As of September 30, 2024[1] Lease Maturity Year[2] Rent % of Total Rent 2026 $ 868 0.4 % 2027 5,613 2.5 % 2029 8,501 3.8 % 2031 51,715 23.1 % 2032 23,686 10.6 % 2033 22,334 10.0 % 2034 42,395 18.9 % 2036 14,564 6.5 % 2038 34,181 15.3 % 2039 13,096 5.9 % 2044 6
Slide 15: Purchase Options
Purchase Options (dollars in thousands) Tenant Purchase Options As of September 30, 2024 Option Period Asset Type Properties Lease Expiration Open Date[1] Option Type[2] Current Cash Rent % of Total Rent [4] SNF 1 March 2029 4/1/2022 A / B [5] $ 858 0.38 % [4] SNF 4 November 2034 12/1/2024 A 3,988 1
Slide 16: Other Real Estate Investments
Other Real Estate Investments (dollars in thousands) As of September 30, 2024 Mortgage Loans Wtd Avg Contractual [1] Maturity Year Property Type Location Investment Interest Rate Interest 2025 SNF CA, GA $ 36,613 9.7 % [2] $ 3,537 2026 ALF / SNF CA 9,864 10.8 % 1,066 2027 SNF / Campus Mid-Atlantic 7
Slide 17: 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, 2024 2023 2024 2023 Revenues: Rental income $ 57,153 $ 51,218 $ 166,062 $ 145,126 Interest and other income 20,228 4,659 43,280 12,910 Total r
Slide 18: 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, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Net income attributable to CareTrust REIT, Inc. $ 8,696 $ 26,296 $ 28,746 $ 10,758 $
Slide 19: 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, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Net income attributable to CareTrust REIT, Inc. $
Slide 20: Consolidated Balance Sheets
Consolidated Balance Sheets (amounts in thousands) September 30, 2024 December 31, 2023 Assets: Real estate investments, net $ 1,749,139 $ 1,567,119 Other real estate related investments 740,730 180,368 Assets held for sale 16,046 15,011 Cash and cash equivalents 377,102 294,448 Accounts and other r
Slide 21: 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 3.9 3.8 3.8 3.7 30.2% 30.6% 26.6% 27.8% 26.2% 26.2%[3] 2.5 [3] 16.8% 1.4 9.5% 0.6 4.1% 2.6% 0.4 0.08 0.4% 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
Slide 22: Debt Summary
Debt Summary (dollars in thousands) September 30, 2024 Deferred Loan Net Carrying Debt Interest Rate Maturity Date Principal % of Principal Costs Value Fixed Rate Debt Senior unsecured notes payable 3.875 % 2028 $ 400,000 100.0 % $ (3,295) $ 396,705 Floating Rate Debt [1] [2] [3] Unsecured revolving
Slide 23: Debt Covenants
Debt Covenants September 30, 2024 Covenant Minimum Requirement Maximum Requirement Actual Status Credit Facility Covenants Consolidated Leverage Ratio 60 % 11.0 % In Compliance Consolidated Fixed Charge Coverage Ratio 1.75x 8.06x In Compliance Consolidated Tangible Net Worth ($ in thousands) 2,232,1
Slide 24: 2024 Guidance Updated
2024 Guidance Updated (shares in thousands) Full Year 2024 Guidance[1] Low High Net income attributable to CareTrust REIT, Inc. $ 0.83 $ 0.84 Real estate related depreciation and amortization 0.36 0.36 Impairment of real estate investments 0.24 0.24 (Gain) loss on sale of real estate 0.02 0.02 Funds
Slide 25: Equity Capital Transactions
Equity Capital Transactions Follow-On Equity Offering Activity 2015 2016 2019 Number of Shares (000s) 16,330 16,100 6,641 Public Offering Price per Share $ 10.50 $ 12.14 [1] $ 23.35 Gross Proceeds (000s) $ 171,465 $ 195,385 $ 155,073 At-the-Market Offering Activity 2016 2017 2018 2019 2020 2021 2022
Slide 26: Other Financial Highlights
Other Financial Highlights Dividend History Normalized FFO Payout Ratio [1][2] $0.29 $0.29 $0.29 $0.275 $0.275 $0.275 $0.275 $0.28 $0.28 $0.28 $0.28 83.0% 81.0% 80.0% 80.0% 80.0% 78.0% 74.3% 74.3% 74.3% 72.4% 76.0% 03/ 06/ 09/ 12/ 03/ 06/ 09/ 12/ 03/ 06/ 09/ 03/ 06/ 09/ 12/ 03/ 06/ 09/ 12/ 03/ 06/ 0
Slide 27: Glossary
Glossary Assisted Living Facilities (“ALFs”) Focus Facility (SFF) status, (iii) undergoing significant Funds from Operations (“FFO”) Licensed healthcare facilities that provide personal care renovations that necessarily result in a material reduction in Net income attributable to CareTrust REIT, Inc
Slide 28: Glossary
Glossary Multi-Service Campus Rent / Interest [2] CareTrust REIT believes FAD attributable to CareTrust Facilities that include a combination of Skilled Nursing Rent represents the respective period's contractual cash REIT, Inc, FFO attributable to CareTrust REIT, Inc, beds and Seniors Housing units
Slide 29: Tay
Tay ww CARETRUST REIT