Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q2 2023 Earnings Presentation
25 slides from Caretrust Reit's earnings presentation, Aug 4, 2023
Slide 1: Financial Supplement Second Quarter 2023
Exhibit 99.2 Financial Supplement Second Quarter 2023
Slide 2: Disclaimers
Disclaimers This supplement contains forward-looking statements upon their expiration, and the ability to reposition our recognize that non-GAAP information presented herein within the meaning of the Private Securities Litigation properties on the same or better terms in the event of may not compare
Slide 3: Table of Contents
Table of Contents COMPANY PROFILE 04 COMPANY 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 Livin
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 ANALYST COVERAGE* properties. CareTrust REIT generates revenues primarily by leasing
Slide 5: Snapshot
Snapshot CARETRUST REIT, INC. NYSE: CTRE Market Data (as of June 30, 2023) Credit Ratings S&P Fitch ◦ Closing Price: $19.86 ◦ Corporate Rating: BB (stable) ◦ Corporate Rating: BB+ (stable) ◦ 52 Week Range: $22.46 – $16.22 ◦ Senior Unsecured Notes: BB+ ◦ Senior Unsecured Notes: BB+ ◦ Market Cap: $2,1
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
[1] Portfolio Repositioning (dollars in thousands) (As of August 1, 2023) Closed Dispositions Net Sales Close Date # of Properties Property Type # of Beds Gross Sales Price Proceeds[2] [3] September 2022 7 SNF / Campus 708 $ 52,000 $ 37,823 December 2022 5 ALF 301 13,000 11,033 January 2023 1 ALF 10
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 March 31, 2023 March 31, 2023 Pre COVID-19 Excludes Use of HHS Funds[4] Includes Amortized HHS Funds[5] EBITDAR EBITDARM EBITDAR EBITDARM EBITDAR EBITDARM Coverage[2] Coverage[2] Coverage[2]
Slide 9: Portfolio Performance
Portfolio Performance (dollars in thousands) As of June 30, 2023 Operating % of Total Asset Type Facilities Beds/Units Investment[1] Investment Rent[2] % of Total Rent Current Yield[3] Skilled Nursing 148 16,203 $ 1,357,330 70.7 % $ 142,216 72.4 % 10.5 % Multi-Service Campus 25 3,632 388,582 20.3 %
Slide 10: Rent Diversification by Tenant
Rent Diversification by Tenant (dollars in thousands) As of June 30, 2023[1] Operating Facilities Beds/Units Rent[2] % of Total Rent 1 The Ensign Group 98 10,399 $ 67,723 34.5 % 2 Priority Management Group 15 2,144 30,243 15.4 % 3 Cascadia Healthcare 12 1,053 12,765 6.5 % 4 Providence Group 7 885 10
Slide 11: Geographic Diversification (% of run-rate rent)
Geographic Diversification (% of run-rate rent) 7% * 3% 1% * * * 8% 1% * 1% 1% 1% 1% 2% 4% 4% 3% * 29% * * 7% 1% 1% 9% 23% * Less than 1%. 11 Note: Numbers are as of June 30, 2023 and exclude our five secured loans receivable and one mezzanine loan receivable. Additionally, amounts exclude 15 proper
Slide 12: Rent Diversification by State
Rent Diversification by State (dollars in thousands) As of June 30, 2023[1] Operating Net-Leased Assets by State Facilities Beds/Units Rent[2] % of Total Rent 1 California 43 5,271 $ 56,938 29.0 % 2 Texas 45 5,874 44,183 22.5 % 3 Louisiana 8 1,164 17,840 9.1 % 4 Idaho 17 1,474 15,102 7.7 % 5 Arizona
Slide 13: Lease Maturities
Lease Maturities (dollars in thousands) As of June 30, 2023[1] Lease Maturity Year[2] Rent[3] % of Total Rent 2024 $ 1,583 0.8 % 2027 5,476 2.8 % 2029 9,330 4.8 % 2030 6,411 3.3 % 2031 52,948 27.0 % 2032 18,027 9.2 % 2033 20,214 10.3 % 2034 33,886 17.3 % 2036 14,209 7.2 % 2038 34,242 17.4 % Total $
Slide 14: Tenant Purchase Options
Tenant Purchase Options (dollars in thousands) As of June 30, 2023[1] Option Period Asset Type Properties Lease Expiration Open Date[2] Option Type[3] Current Cash Rent[4] % of Total Rent[4] [6] SNF 1 March 2029 4/1/2022 A / B [7] 832 0.41 % [5] [8] SNF / Campus 2 October 2032 1/1/2024 A 1,097 0.54
Slide 15: Consolidated Statements of Operations
Consolidated Statements of Operations (amounts in thousands, except per share data) For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Revenues: Rental income $ 47,745 $ 46,806 $ 93,908 $ 92,813 Interest and other income 3,808 747 8,251 1,216 Total revenues 51,
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) June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 Net income (loss) $ 20,669 $ 709 $ 14,380 $ 19,227 $ (484) Depreciation and amortization
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) June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 Net income (loss) $ 20,669 $ 709 $ 14,380 $ 19,227 $ (
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets (amounts in thousands) June 30, 2023 December 31, 2022 Assets: Real estate investments, net $ 1,528,234 $ 1,421,410 Other real estate related investments, at fair value 166,822 156,368 Assets held for sale, net 21,554 12,291 Cash and cash equivalents 1,145 13,178 Accounts
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% 26.2% 26.2% [3] 25.1% 3.9 22.1% 22.1% 23.0% 3.8 3.8 20.0% 3.7 3.7 3.7 3.7 3.7 3.2 06 03 12 06 03 09 06 12 09 03 12 06 03 12 06 03 09 06 12 09 03 12 /31 /31 /31 /31
Slide 20: Debt Summary
Debt Summary (dollars in thousands) June 30, 2023 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 45.5 % $ (4,406) $ 395,594 Floating Rate Debt Senior unsecured term loan 6.691 % [1
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 $0.280 $0.280 $0.265 $0.265 $0.265 $0.265 $0.250 80.0% 80.0% 73.6% 71.6% 74.3% 74.3% 74.3% 72.4% 69.4% 69.7% 67.9% 12 03 06 09 12 03 06 09 12 03 06 12 03 06 09 12 03 06 09 12 03 06 /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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