Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q2 2021 Earnings Presentation
27 slides from Caretrust Reit's earnings presentation, Aug 5, 2021
Slide 1: Supplement Second Quarter 2021
Supplement Second Quarter 2021 Exhibit 99.2
Slide 2: Forward-looking statements
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, including, but not
Slide 3: Table of contents
CONTACT INFORMATION COMPANY PROFILE 04 CARETRUST SNAPSHOT 05 NEW BOND ISSUANCE 06 INVESTMENTS 07 PORTFOLIO OVERVIEW 08-14 Top 10 Tenants Lease Coverage Portfolio Performance Rent Diversification by Tenant Geographic Diversification Rent Diversification by State Lease Maturities Tenant Purchase Optio
Slide 4: Management, board and analyst coverage
Greg Stapley - Chairman & Chief Executive Officer Dave Sedgwick – President and Chief Operating Officer Bill Wagner - Chief Financial Officer Mark Lamb - Chief Investment Officer Greg Stapley - Chairman Diana Laing Jon Kline Allen Barbieri Spencer Plumb Barclays - Steve Valiquette | (212) 526-5496 B
Slide 5: CareTrust Snapshot
CARETRUST REIT, INC. NASDAQ: CTRE Data Ratings INVESTMENTS PROPERTIES OPERATING BEDS/UNITS OPERATORS STATES
Slide 6: New Bond Issuance
New Bond Issuance (dollars in thousands) New Senior Notes due 2028 $ 400,000 Redeem Senior Notes due 2025 Refinance Revolver borrowings Call Premium and Fees and Expenses New $400M 2028 Notes $300M 2025 Notes 06 (dollars in thousands) Principal $ 400,000 Interest Rate 3.875% Maturity Date 2028 Incom
Slide 7: Investments
07 Investments Initial Operating Date Operator Property Type _Location Facilities Initial Investment"! Begs/Units ™ Initial Rent The Ensign Group Various 2014 Investments 6 33,609 157 3,076 2015 Investments 20 233,028 1,840 22,263 2016 Investments: 35 288,023 2,800 26,084 2017 Investments 36 309,805
Slide 8: Top Tenants Lease Coverage
08 Top 10 Tenants Lease Coverage!’ Twelve Months Ended Twelve Months Ended Twelve Months Ended March 31, 2020 March 31, 2021 March 31, 2021 Pre COVID-19 Excludes Use of HHS Funds! Includes Amortized HHS Funds?) 4 The Ensign Group™ 3.02x 3.79x 3.68x 4.48x 3.68x 4.48x 2 Priority Management Group 1.50x
Slide 9: Portfolio Performance
09 Portfolio Performance — (dollars in thousands} 4s of June 30, 2021 ‘Operating % of Total Asset Type Facilities Beds/Units Investment” Investment Rent” % of Total Rent Current Yield"! Skilled Nursing 158 16.373 $1,318,722 619% $ 131,524 10.3 % 10.0 % Multi-Service Campus rz) 3,611 376,033 19.4% 30
Slide 10: Rent Diversification by Tenant
Rent Diversification by Tenant (dollars in thousands) As of June 30, 2021" Operating % of Total Facilities __Beds/Units ___Investment“! Investment Rent! % of Total Rent 1The Ensign Group 93 9,907 $ 519,444 268% $ 61,180 32.1% 2 Priority Management Group 6 2.144 300,657 B5% 21,979 15.0% 3 Cascadia He
Slide 11: Geographic Diversification
25% 7% 8% 20% 9% 4% 4% 3% 3% 3% 1% 3% * * 2% * 1% 1% * * 1% 1% * 2% 2% * * *
Slide 12: Rent Diversification by State
Rent Diversification by State (dollars in thousands) As of June 30, 2021” Operating % of Total een facilities _Beds/Units Investment” Investment Rent’! % of Total Rent 1California 40 4859 $ = 479,465 mI% = $ 41397 25.3% 2Texas a 5,231 363,317 18.1% 36,887 19.7% 3 Louisiana 8 1,164 179,059 9.2% 16,28
Slide 13: Lease Maturities
Lease Maturities (dollars in thousands) As of June 30, 2021") Lease Maturity Year” investment” % of Total Investment Rent"! % of Total Rent 2024 $ 15,800 08% §$ 1,492 08 % 2027 41,896 22% 5,020 21% 2028 68,193 35% 7,158 41% 2029 14,116 5.9% 8,797 47% 2030 207,182 10.7% 19,167 10.2 % 2031 544,741 28.
Slide 14: Tenant Purchase Options
Tenant Purchase Options (dollars in thousands) As of June 30, 2021 Next Option Current Cash Asset Type Properties Lease Expiration Open Year Option Typel! Rent % of Total Rent” ALF 2 October 2034 1/1/2022 A $ 3,282 1.76 % SNF " November 2030 1/1/2022 Cc 4,800 2.57% ‘SNF 1 March 2029 4/1/2022 Bic 719
Slide 15: Financial Overview
Financial Overview
Slide 16: Consolidated Income Statements
Consolidated Income Statements (amounts in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenues: Rental income $ 47744 $ 42507 $ 92,990 $ 84,971 Independent living facilities - 615 - 4,240 Interest and other income 514 1,046 1,019 2,297
Slide 17: Reconciliation of EBITDA, FFO and FAD
1 (amounts in thousands, except per share data) Net income Depreciation and amortization Interest expense Amortization of stock-based compensation EBITDA Recovery of previously reversed rent Lease termination revenue Property operating expenses (Gain) loss on sale of real estate Normalized EBITDA Ne
Slide 18: Reconciliation of EBITDA, FFO and FAD
Reconciliation of EBITDA, FFO and FAD (nin Anmahtocithexmmtinate) Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended i Teas June 30,2020 September 30,2020 December 31,2020 March 31,2021 _June 30, 2021 Net income $ 18,935 $ 21552 $ 24055 $ 20486 $ 21317 Real estate related deprecia
Slide 19: Consolidated Balance Sheets
19 Consolidated Balance Sheets (dollars in thousands) Assets: Real estate investments, net Other real estate investments Assets held for sale, net Cash and cash equivalents Restricted cash Accounts and other receivables Prepaid expenses and other assets, net Deferred financing costs, net Total asset
Slide 20: Key Debt Metrics
20 Key Debt Metrics Net Debt to Annualized Normalized Run Rate EBITDA Notes: Net Debt to Enterprise Value 2) 28.0% 22.3% 221% 221% { | I] Net Debt to Annualized Normalized Run Rate EBITDA compares net debt as of the last day of the quarter to Annualized Normalized Run Rate EBITDA for the quarter whi
Slide 21: Debt Summary
a1 Debt Summary Notes: (dollars in thousands) June 30, 2021"! Sof 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 61.5% $ (6,158) $ 393,842 Floating Rate Debt Senior unsecured term loan
Slide 22: 2021 Guidance Updated
2021 Guidance Updated (shares in thousands) Net income 0.79 Real estate related depreciation and amortization 0.57 (Gain) loss on sale of real estate Funds from Operations (FFO) Lease termination revenue Effect of the senior unsecured notes payable redemption Normalized FFO $ $ Net income $ 079 $ 0.
Slide 23: Equity Capital Transactions
23 Equity Capital Transactions Follow-On Equity Offering. 2015 2016 2019 Number of Shares (000s) 16,330 - 9,715 - 6,325 16,100 6,641 Public Offering Price per Share $ 1050 $ -$ 135 $ -$ 1335 $ 1274" § 23.35 Gross Proceeds (000s) $ 1465 $ - $ 10,946 $ - $ 84,439 $ 195,385 $ 155,073 At-the-Market Offe
Slide 24: Other Financial Highlights
24 Other Financial Highlights es: Notes: we Ss [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 the Investors section of our website at http:/investor.caretrustreit,
Slide 25: Glossary
25 Glossary ‘Assisted Living Facilities ("ALFs”) Licensed healthcare facilities that provide personal care services, support and housing for those who need help with dally living activities, such as bathing, eating and dressing, yet require limited medical care. The programs and services may include
Slide 26: Glossary
26 Glossary Multi-Service Campus Facilities that include a combination of Skilled Nursing beds and Seniors Housing units, including Continuing Care Retirement Communities, Normalized EBITDA, EBITDA, adjusted for certain Income and expense items the Company does not believe are Indicative of its ongo
Slide 27: REIT
REIT