Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q4 2022 Earnings Presentation
25 slides from Caretrust Reit's earnings presentation, Feb 10, 2023
Slide 1: Financial Supplement Fourth Quarter 2022
Exhibit 99.2 Financial Supplement Fourth 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 07-14 Portfolio Repositioning Top 10 Tenants Lease Coverage Portfolio Performance Rent Diversification by Tenant Geographic Diversification Rent Diversification by State Lease Maturities 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 properties. CareTrust REIT generates MANAGEMENT ANALYST COVERAGE* revenues primarily by leasing
Slide 5: Snapshot
Snapshot CARETRUST REIT, INC. NYSE: CTRE Market Data (as of December 31, 2022) Credit Ratings S&P Fitch ◦ Closing Price: $18.58 ◦ 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: Portfolio Repositioning
Portfolio Repositioning (dollars in thousands) (As of February 6, 2023) Closed Dispositions Net Sales Close Date # of Properties Property Type # of Beds Gross Sales Price Proceeds[1] [2] September 2022 7 SNF / Campus 708 $ 52,000 $ 37,823 December 2022 5 ALF 301 13,000 11,033 January 2023 1 ALF 105
Slide 8: Top 10 Tenants Lease Coverage
[1] Top 10 Tenants Lease Coverage Twelve Months Ended Twelve Months Ended Twelve Months Ended March 31, 2020 September 30, 2022 September 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] Cove
Slide 9: Portfolio Performance
Portfolio Performance (dollars in thousands) As of December 31, 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 $ 1,300,822 72.9 % $ 136,509 74.4 % 10.5 % Multi-Service Campus 24 3,463 363,306 20
Slide 10: Rent Diversification by Tenant
Rent Diversification by Tenant (dollars in thousands) As of December 31, 2022[1] Operating Facilities Beds/Units Rent[2] % of Total Rent 1 The Ensign Group 98 10,399 $ 66,173 36.1 % 2 Priority Management Group 15 2,144 30,171 16.5 % 3 Cascadia Healthcare 12 1,053 12,329 6.7 % 4 Providence Group 8 1,
Slide 11: Geographic Diversification (% of run-rate rent)
Geographic Diversification (% of run-rate rent) 7% * 3% 1% * 1% * 8% 1% 1% 3% 1% 1% 2% 4% 3% 3% * 27% * 7% 1% 1% 22% 10% * Less than 1%. 11 Note: Numbers are as of December 31, 2022 and exclude our three secured loans receivable and two mezzanine loans receivable. Additionally, amounts exclude five
Slide 12: Rent Diversification by State
Rent Diversification by State (dollars in thousands) As of December 31, 2022[1] Operating Net-Leased Assets by State Facilities Beds/Units Rent[2] % of Total Rent 1 California 40 4,844 $ 49,854 27.2 % 2 Texas 43 5,597 41,240 22.5 % 3 Louisiana 8 1,164 17,767 9.7 % 4 Idaho 17 1,474 14,611 8.0 % 5 Ari
Slide 13: Lease Maturities
Lease Maturities (dollars in thousands) As of December 31, 2022[1] Lease Maturity Year[2] Rent[3] % of Total Rent 2024 $ 1,537 0.8 % 2027 5,342 2.9 % 2029 9,051 4.9 % 2030 11,353 6.2 % 2031 52,933 28.9 % 2032 18,027 9.8 % 2033 19,847 10.8 % 2034 41,040 22.4 % 2036 13,862 7.6 % 2038 10,401 5.7 % Tota
Slide 14: Tenant Purchase Options
Tenant Purchase Options (dollars in thousands) As of December 31, 2022 Next Option Asset Type Properties Lease Expiration Open Date[1] Option Type[2] Current Cash Rent[3] % of Total Rent[3] [4] SNF 11 November 2030 1/1/2023 B 5,092 2.70 % [5] SNF 1 March 2029 4/1/2022 A / B [6] 805 0.43 % [4] SNF /
Slide 15: Consolidated Statements of Operations
Consolidated Statements of Operations (amounts in thousands, except per share data) For the Three Months Ended December 31, For the Twelve Months Ended December 31, 2022 2021 2022 2021 Revenues: Rental income $ 47,675 $ 49,118 $ 187,506 $ 190,195 Interest and other income 4,135 619 8,626 2,156 Total
Slide 16: 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, 2021 March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 Net income (loss) $ 18,261 $ (43,264) $ 20,669 $ 709 $ 14,380 Depreciation and amorti
Slide 17: 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, 2021 March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 Net income (loss) $ 18,261 $ (43,264) $ 20,669 $ 7
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets (amounts in thousands) December 31, 2022 December 31, 2021 Assets: Real estate investments, net $ 1,421,410 $ 1,589,971 Other real estate related investments, at fair value 156,368 15,155 Assets held for sale, net 12,291 4,835 Cash and cash equivalents 13,178 19,895 Accou
Slide 19: 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% 26.6% 27.8% 25.1% 3.9 23.1% 22.0% 22.1% 22.1% 23.0% 20.0% 3.7 3.7 3.7 3.7 3.7 3.2 3.2 3.1 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 /30
Slide 20: Debt Summary
Debt Summary (dollars in thousands) December 31, 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 55.2 % $ (4,850) $ 395,150 Floating Rate Debt Senior unsecured term loan 6.036
Slide 21: 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 22: Other Financial Highlights
Other Financial Highlights Dividend History Normalized FFO Payout Ratio [1][2] $0.275 $0.275 $0.275 $0.275 74.3% 74.3% 74.3% $0.265 $0.265 $0.265 $0.265 73.5% 73.5% 73.6% $0.250 $0.250 $0.250 71.6% 72.4% 69.4% 69.7% 67.9% 06 09 12 03 06 09 12 03 06 09 12 06 09 12 03 06 09 12 03 06 09 12 /3 /3 /3 /3
Slide 23: 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 24: 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 25: Tay
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