Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q2 2020 Earnings Presentation
26 slides from Caretrust Reit's earnings presentation, Aug 6, 2020
Slide 1: EXHIBIT 99.2EXHIBITEXHIBIT 99.2EXHIBITEXHIBITEXHIBIT 99.2 .2 99.299.2 Broadmoor Medical Lodge (Rockwall, TX)Downey Ca…
EXHIBIT 99.2EXHIBITEXHIBIT 99.2EXHIBITEXHIBITEXHIBIT 99.2 99.2 99.299.2 Broadmoor Medical Lodge (Rockwall, TX)Downey Care Center (Downey, CA)
Slide 2: Disclaimers
Disclaimers 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, includ
Slide 3: Company Profile
Company Profile Company Profile 3 CareTrust REIT is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, CareTrust at a Glance 4 development and leasing of seniors housing and healthcare-related properties. CareTrust REIT generates revenues primari
Slide 4: CareTrust at a Glance
CareTrust REIT, Inc. Nasdaq: CTRE Market Data (as of June 30, 2020) Closing Price: $17.16 52 Week Range: $24.65– $7.16 Market Cap: $1,643M Enterprise Value: $2,137M Outstanding Shares: 95.7M 212 28 States Credit Ratings Properties Credit Ratings S&P S&PCorporate Rating: B+ (positive) Corporate Ratin
Slide 5: Investments
Investments (dollars in thousands) Property Initial Initial Operating Cost per Initial Date Operator Type Location Facilities Investment[1] Beds/Units [2] Bed/Unit [3] Initial Rent [4] Yield[5] ALF, SNF, 6/1/2014 The Ensign Group Campus Various 94 $ 501,673 10,053 $ 50 $ 56,000 N/A 2014 Investments
Slide 6: Top Tenants Lease Coverage
Top 10 Tenants Lease Coverage (dollars in thousands) As of June 30, 2020[1] Twelve Months Ended March 31, 2020[1] % of Number of CTRE Annualized Primary Facility Type Properties Rent[2] Total Rent EBITDAR Coverage[3] EBITDARM Coverage[3] 1 The Ensign Group Skilled Nursing 85 $ 53,406 32.0 % 3.03x 3.
Slide 7: Portfolio Performance
Portfolio Performance (dollars in thousands) As of June 30, 2020 Operating % of Total % of Total Asset Type Facilities Beds/Units Investment [1] Investment Rent [2] Rent Current Yield [3] Skilled Nursing 153 15,912 $1,242,617 71.9% $121,136 72.6% 9.7% Multi-Service Campus 18 2,460 241,366 14.0% 20,4
Slide 8: Tenant Summary
Tenant Summary Note: [1] All amounts exclude our one operated seniors housing property and our mortgage loans receivable. [2] Amounts exclude properties classified as held for sale. 8
Slide 9: Rent Diversification by Tenant
Rent Diversification by Tenant (dollars in thousands) As of June 30, 2020[1] Operating % of Total % of Total Facilities Beds/Units Investment[2] Investment Rent[3] Rent 1 The Ensign Group 85 8,882 $ 451,126 26.1 % $ 53,406 32.0 % 2 Priority Management Group 15 2,145 299,965 17.4 % 27,575 16.5 % 3 Ca
Slide 10: Top Five States
Top Five States TX 19.5% CA 21.4% LA 9.6% ID 8.2% 1 ALF AZ 7.5% Run-Rate Rent Others 33.8% 1 ALF TX 18.3% CA 18.9% LA 10.3% 1 SNF ID 8.0% AZ 3.5% Investment Others 41.0% CA 18.5% TX 21.0% ID 6.7% AZ 6.2% LA 5.4% Beds/Units Others 42.2% 10
Slide 11: Rent Diversification by State
Rent Diversification by State (dollars in thousands) As of June 30, 2020[1] Net-Leased Assets by State Operating % of Total % of Total Facilities Beds/Units Investment[2] Investment Rent[3] Rent 1 California 34 4,014 $ 326,321 18.9 % $ 35,686 21.4 % 2 Texas 37 4,557 315,741 18.3 % 32,479 19.5 % 3 Lo
Slide 12: Lease Maturities
Lease Maturities (dollars in thousands) As of June 30, 2020[1] Lease Maturity % of Total % of Total Year[2] Investment[3] Investment Rent[4] Rent 2026 48,988 2.8 % 5,241 3.1 % 2027 41,896 2.4 % 4,897 2.9 % 2028 68,193 3.9 % 7,573 4.5 % 2029 149,881 8.7 % 12,368 7.4 % 2030 190,540 11.0 % 16,175 9.7 %
Slide 13: Financial Overview
Las Colinas (Ontario, CA) 13
Slide 14: Consolidated Income Statements
Consolidated Income Statements (amounts in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues: Rental income $ 42,507 $ 44,123 $ 84,971 $ 82,470 Independent living facilities 615 887 1,240 1,747 Interest and other income 1,046 1,191 2
Slide 15: Reconciliation of EBITDA, FFO and FAD
Reconciliation of EBITDA, FFO and FAD Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended (amounts in thousands, except per share data) June 30, 2019 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 Net income (loss) $ 19,698 $ (10,054) $ 20,662 $ 19,325 $ 18,935 D
Slide 16: Reconciliation of EBITDA, FFO and FAD (continued)
Reconciliation of EBITDA, FFO and FAD (continued) Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended (amounts in thousands, except per share data) June 30, 2019 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 Net income (loss) $ 19,698 $ (10,054) $ 20,662 $ 19,32
Slide 17: Consolidated Balance Sheets
Consolidated Balance Sheets (dollars in thousands) June 30, 2020 December 31, 2019 Assets: Real estate investments, net $ 1,420,112 $ 1,414,200 Other real estate investments, net 13,924 33,300 Assets held for sale, net — 34,590 Cash and cash equivalents 5,798 20,327 Accounts and other receivables, n
Slide 18: Key Debt Metrics
Key Debt Metrics Net Debt to Normalized EBITDA [1][2] Net Debt to Enterprise Value [3] 36.5% 4.5 4.6 4.1 30.5% 28.8% 28.0% 3.5 3.5 3.3 3.3 3.3 3.4 3.3 24.2% 3.2 22.3% 23.1% 19.9% 21.2% 18.1% 19.1% 3/31/2018 6/30/2018 9/30/2018 3/31/2019 6/30/2019 9/30/2019 3/31/2020 6/30/2020 12/31/2017 12/31/2018 1
Slide 19: Debt Summary
Debt Summary (dollars in thousands) June 30, 2020 Interest Maturity % of Deferred Net Carrying Debt Rate Date Principal Principal Loan Costs Value Fixed Rate Debt Senior unsecured notes payable 5.250 % 2025 $ 300,000 60.0 % $ (3,710) $ 296,290 Floating Rate Debt Senior unsecured term loan 1.684 % [1
Slide 20: 2020 Guidance
2020 Guidance Full Year 2020 Guidance[1] (shares in thousands) Low High Net income $ 0.76 $ 0.78 Real estate related depreciation and amortization 0.56 0.56 Funds from Operations (FFO) 1.32 1.34 Normalized FFO $ 1.32 $ 1.34 Net income $ 0.76 $ 0.78 Real estate related depreciation and amortization 0
Slide 21: Equity Capital Transactions
Equity Capital Transactions Follow-On Equity Offering Activity 2015 2016 2019[2] 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 $ — $ 84,43
Slide 22: Other Financial Highlights
Other Financial Highlights Dividend History $0.25 $0.25 $0.225 $0.225 $0.225 $0.225 $0.205 $0.205 $0.205 $0.205 $0.185 $0.185 $0.185 $0.185 $0.17 $0.17 $0.17 $0.17 $0.16 $0.16 $0.16 $0.16 6/30/18 9/30/18 3/31/2015 6/30/2015 9/30/2015 3/31/2016 6/30/2016 9/30/2016 3/31/2017 6/30/2017 9/30/2017 3/31/2
Slide 23: Other Financial Highlights (continued)
Other Financial Highlights (continued) Normalized FFO per Share [1] $0.35 $0.35 $0.34 $0.34 $0.34 $0.32 $0.32 $0.32 $0.32 $0.32 $0.31 $0.29 $0.28 $0.28 $0.28 $0.28 $0.27 $0.27 $0.25 $0.25 $0.24 $0.20 3/31/2015 6/30/2015 9/30/2015 3/31/2016 6/30/2016 9/30/2016 3/31/2017 6/30/2017 9/30/2017 3/31/2018
Slide 24: Glossary
Glossary Assisted Living Facilities (“ALFs”) EBITDARM Coverage Licensed healthcare facilities that provide personal care services, support and Aggregate EBITDARM produced by all facilities under a master lease (or other housing for those who need help with daily living activities, such as bathing, e
Slide 25: Glossary
Glossary Multi-Service Campus Notes: Facilities that include a combination of Skilled Nursing beds and Seniors Housing [1] EBITDA and Normalized EBITDA do not represent cash flows from operations or units. net income as defined by GAAP and should not be considered an alternative to those measures in
Slide 26: Grapevine Medical Lodge (Grapevine, TX)
Grapevine Medical Lodge (Grapevine, TX)