Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q4 2024 Earnings Presentation
28 slides from Caretrust Reit's earnings presentation, Feb 13, 2025
Slide 1: Financial Supplement Fourth Quarter 2024
Exhibit 99.2 Financial Supplement Fourth Quarter 2024
Slide 2: Disclaimers
Disclaimers This supplement contains forward-looking statements the same or better terms in the event of nonrenewal or compare to similarly-termed non-GAAP information of within the meaning of the Private Securities Litigation in the event we replace an existing tenant, as well as any other companie
Slide 3: Table of Contents
Table of Contents COMPANY PROFILE 04 COMPANY SNAPSHOT 05 INVESTMENTS 06-07 PORTFOLIO OVERVIEW 08-15 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 properties. CareTrust REIT generates MANAGEMENT EQUITY ANALYST COVERAGE* revenues primarily by
Slide 5: Company Snapshot
Snapshot CARETRUST REIT, INC. NYSE: CTRE Market Data (as of December 31, 2024) Credit Ratings S&P Fitch ◦ Closing Price: $27.05 ◦ Corporate Rating: BB+ (stable) ◦ Corporate Rating: BB+ (stable) ◦ 52 Week Range: $33.15 – $20.10 ◦ Senior Unsecured Notes: BBB- ◦ Senior Unsecured Notes: BB+ ◦ Market Cap
Slide 6: Investments
Investments (dollars in thousands) Date Operator Property Type Location Facilities Initial Investment Initial Beds/Units[1] Rent/Interest [2] Yield[3] 01/03/2024 Oxford Health Group ALF CA 1 $ 11,036 86 $ 1,022 9.3 % [4] 01/25/2024 Mezzanine Loan SNF MO 10 9,800 1,397 1,372 14.0 % 02/01/2024 Mezzani
Slide 7: Historical Investments by Year
Historical Investments by Year (dollars in millions) 10 Year - Average Historical Investment Yield: 9.3% $2,000 $1,524 $1,500 $1,000 $500 $310 $341 $288 $288 $233 $197 $169 $112 $105 $— 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Annual Investment 07
Slide 8: Top 10 Tenants Lease Coverage
Top 10 Tenants Lease Coverage Twelve Months Ended Twelve Months Ended June 30, 2024 September 30, 2024 EBITDAR EBITDARM EBITDAR EBITDARM [1] Coverage Coverage[1] Coverage[1] Coverage[1] 1 The Ensign Group[2] 3.34x 4.23x 3.37x 4.28x 2 PACS Group[3] 2.54x 3.12x 2.61x 3.18x 3 Priority Management Group
Slide 9: Portfolio Performance
Portfolio Performance (dollars in thousands) As of December 31, 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 189 20,464 $ 2,063,662 57.5 % $ 212,046 59.1
Slide 10: Rent Diversification by Tenant for Net-Leased Assets
Rent Diversification by Tenant for Net-Leased Assets (dollars in thousands) As of December 31, 2024[1] Operating Net Leased Assets Beds/Units Rent % of Total Rent 1 The Ensign Group 103 10,746 $ 75,252 27.6 % 2 PACS Group 24 2,893 37,894 13.9 % 3 Priority Management Group 15 2,144 31,894 11.7 % 4 Li
Slide 11: Geographic Diversification
Geographic Diversification (% of run-rate rent and interest) 7% * 4% 1% * 4% * 5% * 1% * * * 1% 1% 1% 2% 5% 1% 3% 2% 22% * 1% 2% 6% 12% 4% 1% * * 1% 13% 5% 1% 1% * Less than 1%. 11 Note: Numbers are as of December 31, 2024 and include properties securing our financing receivable and other real estat
Slide 12: Rent & Interest Diversification by State
Rent & Interest Diversification by State (dollars in thousands) As of December 31, 2024[1] Operating % of Total Rent/ Investments by State Facilities Beds/Units Rent/Interest Interest 1 California 65 7,980 $ 77,634 21.6 % 2 Texas 43 5,414 45,191 12.6 % 3 Tennessee 28 2,980 43,501 12.1 % 4 North Caro
Slide 13: Lease Maturities
Lease Maturities (dollars in thousands) As of December 31, 2024[1] Lease Maturity Year[2] Rent % of Total Rent 2026 $ 868 0.3 % 2027 5,613 2.1 % 2029 8,543 3.1 % 2031 52,466 19.3 % 2032 27,467 10.1 % 2033 22,352 8.2 % 2034 45,336 16.6 % 2036 14,564 5.3 % 2038 33,514 12.3 % 2039 54,694 20.1 % 2044 6,
Slide 14: Purchase Options
Purchase Options (dollars in thousands) Tenant Purchase Options As of December 31, 2024 Option Period Asset Type Properties Lease Expiration Open Date[1] Option Type[2] Current Cash Rent % of Total Rent [4] [5] SNF 1 March 2029 4/1/2022 A/B $ 858 0.32 % [3] SNF / Campus 2 October 2032 11/1/2026 B 3,
Slide 15: Other Real Estate Investments
Other Real Estate Investments (dollars in thousands) As of December 31, 2024 Mortgage Loans Wtd Avg Contractual [1] Maturity Year Property Type Location Investment Interest Rate Interest 2025 SNF CA, GA $ 36,901 9.4 % [2] $ 3,466 2026 ALF / SNF CA 9,864 10.8 % 1,066 2027 SNF / Campus Mid-Atlantic 75
Slide 16: Consolidated Income Statements
Consolidated Income Statements (amounts in thousands, except per share data) For the Three Months Ended December 31, For the Twelve Months Ended December 31, 2024 2023 2024 2023 Revenues: Rental income $ 62,199 $ 53,473 $ 228,261 $ 198,599 Interest income from financing receivable 1,009 — 1,009 — In
Slide 17: 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) December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Net income attributable to CareTrust REIT, Inc. $ 26,296 $ 28,746 $ 10,758 $ 33,441 $
Slide 18: 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) December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Net income attributable to CareTrust REIT, Inc. $
Slide 19: Consolidated Balance Sheets
Consolidated Balance Sheets (amounts in thousands) December 31, 2024 December 31, 2023 Assets: Real estate investments, net $ 2,226,740 $ 1,567,119 Financing receivable 96,004 — Other real estate related investments 795,203 180,368 Assets held for sale 57,261 15,011 Cash and cash equivalents 213,822
Slide 20: 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 3.7 3.8 3.8 30.2% 30.6% 27.8% 26.2% 26.2% [3] 2.5 [3] 16.8% 1.4 9.5% 0.6 0.5 4.1% 2.6% 3.5% 0.4 0.1 .4% 12 09 06 12 09 03 12 06 03 09 06 12 09 06 12 09 03 12 06 03 09 06 /31 /31 /31 /31 /3
Slide 21: Debt Summary
Debt Summary (dollars in thousands) December 31, 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 % $ (3,073) $ 396,927 Floating Rate Debt [1] [2] [3] Unsecured revolving
Slide 22: Debt Covenants
Debt Covenants December 31, 2024 Covenant Minimum Requirement Maximum Requirement Actual Status Credit Facility Covenants Consolidated Leverage Ratio 60 % 9.7 % In Compliance Consolidated Fixed Charge Coverage Ratio 1.50x 9.89x In Compliance Consolidated Tangible Net Worth ($ in thousands) 2,537,994
Slide 23: 2025 Guidance
2025 Guidance (shares in thousands) Full Year 2025 Guidance[1] Low High Net income attributable to CareTrust REIT, Inc. $ 1.35 $ 1.39 Real estate related depreciation and amortization 0.38 0.38 Noncontrolling interests' share of real estate related depreciation and amortization (0.05) (0.05) (Gain)
Slide 24: Equity Capital Transactions
Equity Capital Transactions Follow-On Equity Offering Activity 2015 2016 2019 2024 Number of Shares (000s) 16,330 16,100 6,641 15,870 Public Offering Price per Share $ 10.50 $ 12.14 [1] $ 23.35 $ 32.00 Gross Proceeds (000s) $ 171,465 $ 195,385 $ 155,073 $ 507,840 At-the-Market Offering Activity 2016
Slide 25: Other Financial Highlights
Other Financial Highlights Dividend History Normalized FFO Payout Ratio [1][2] $0.29 $0.29 $0.29 $0.29 $0.275 $0.275 $0.275 $0.28 $0.28 $0.28 $0.28 83% 81% 80% 80% 80% 78% 74% 74% 76% 72% 73% 06/ 09/ 12/ 03/ 06/ 09/ 12/ 03/ 06/ 09/ 12/ 06/ 09/ 12/ 03/ 06/ 09/ 12/ 03/ 06/ 09/ 12/ 31/ 31/ 31/ 31/ 31/
Slide 26: Glossary
Glossary Assisted Living Facilities (“ALFs”) occupancy, or (iv) have been acquired for or recently Funds from Operations (“FFO”) Licensed healthcare facilities that provide personal care transferred to new operators for turnaround and are pre- Net income attributable to CareTrust REIT, Inc, excludin
Slide 27: 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 28: CareTrust
= w CARETRUST 2 i