Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q1 2024 Earnings Presentation
28 slides from Caretrust Reit's earnings presentation, May 3, 2024
Slide 1: Financial Supplement First Quarter 2024
Exhibit 99.2 Financial Supplement First Quarter 2024
Slide 2: Disclaimers
Disclaimers This supplement contains forward-looking statements nonrenewal or in the event we replace an existing that non-GAAP information presented herein may not within the meaning of the Private Securities Litigation tenant, as well as any obligations, including compare to similarly-termed non-G
Slide 3: Table of Contents
Table of Contents COMPANY PROFILE 04 COMPANY SNAPSHOT 05 INVESTMENTS 06 PORTFOLIO OVERVIEW 07-15 Portfolio Repositioning Top 10 Tenants Lease Coverage Portfolio Performance Rent Diversification by Tenant Geographic Diversification Diversification by State Lease Maturities Bayshire Carlsbad (Carlsbad
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 EQUITY ANALYST COVERAGE* properties. CareTrust REIT generates revenues primarily by
Slide 5: Company Snapshot
Snapshot CARETRUST REIT, INC. NYSE: CTRE Market Data (as of March 31, 2024) Credit Ratings S&P Fitch ◦ Closing Price: $24.37 ◦ Corporate Rating: BB (positive) ◦ Corporate Rating: BB+ (stable) ◦ 52 Week Range: $24.57 – $18.18 ◦ Senior Unsecured Notes: BB+ ◦ Senior Unsecured Notes: BB+ ◦ Market Cap: $
Slide 6: Investments
Investments (dollars in thousands) Date Operator Property Type Location Facilities Initial Investment[1] Initial Operating Beds/Units[2] Rent/Interest [3] 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 % 2015 Inves
Slide 7: Portfolio Repositioning
Portfolio Repositioning (dollars in thousands) (As of May 1, 2024) Retained Facilities Estimated Rent Type # of Properties Property Type # of Beds Year 1 Contractual Rent Commencement Re-Tenant 2 ALF 98 — Q2 2025[1] Re-Tenant/Conversion 1 ALF 80 621 [2] Q4 2024 Re-Tenant/Conversion 1 ALF 120 — TBD 4
Slide 8: Top 10 Tenants Lease Coverage
Top 10 Tenants Lease Coverage Twelve Months Ended Twelve Months Ended September 30, 2023 December 31, 2023 EBITDAR EBITDARM EBITDAR EBITDARM [1] Coverage Coverage[1] Coverage[1] Coverage[1] 1 The Ensign Group 3.28x 4.14x 3.28x 4.14x 2 Priority Management Group 1.40x 1.70x 1.24x 1.54x 3 PACS Group 2.
Slide 9: Portfolio Performance
Portfolio Performance (dollars in thousands) As of March 31, 2024 Operating % of Total Rent / % of Total Rent / Asset Type Facilities Investment[1] Current Yield Beds/Units Investment Interest[2][3] Interest Investment in Real Estate Properties Skilled Nursing 152 16,658 $ 1,446,148 63.5 % $ 150,334
Slide 10: Rent Diversification by Tenant
Rent Diversification by Tenant (dollars in thousands) As of March 31, 2024[1] Net Leased Operating Assets Beds/Units Rent[2] % of Total Rent 1 The Ensign Group 100 10,682 $ 69,956 33.7 % 2 Priority Management Group 15 2,144 31,142 15.0 % 3 PACS Group 10 1,228 16,258 7.8 % 4 Cascadia Healthcare 12 1,
Slide 11: Geographic Diversification
Geographic Diversification (% of run-rate rent and interest) 7% * 2% 1% * * 1% 6% 1% * 1% 1% 1% 1% 3% 4% 2% 2% 4% 29% * 1% 2% * 6% 1% 1% 21% 8% 1% * Less than 1%. 11 Note: Numbers are as of March 31, 2024 and exclude 13 properties classified as held for sale as of March 31, 2024, two facilities whic
Slide 12: Rent & Interest Diversification by State
Rent & Interest Diversification by State (dollars in thousands) As of March 31, 2024[1] Operating % of Total Rent/ Investments by State Facilities Beds/Units Rent/Interest[2] Interest 1 California 60 7,250 $ 67,960 29.2 % 2 Texas 47 6,035 48,107 20.7 % 3 Louisiana 8 1,164 18,366 7.9 % 4 Idaho 17 1,4
Slide 13: Lease Maturities
Lease Maturities (dollars in thousands) As of March 31, 2024[1] Lease Maturity Year[2] Rent[3] % of Total Rent 2027 $ 5,476 2.6 % 2029 8,358 4.0 % 2030 5,107 2.5 % 2031 51,151 24.7 % 2032 23,505 11.3 % 2033 21,826 10.5 % 2034 34,120 16.4 % 2036 14,209 6.8 % 2038 36,941 17.8 % 2044 6,766 3.4 % Total
Slide 14: Tenant Purchase Options
Tenant Purchase Options (dollars in thousands) As of March 31, 2024[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 0.39 % [5] SNF / Campus 1 October 2032 1/1/2024 A 1,031 0.48 % [
Slide 15: Other Real Estate Investments
Other Real Estate Investments (dollars in thousands) As of March 31, 2024 Mortgage Loans Contractual Maturity Investment Property Type Location Investment Interest Rate Interest Date[1] [2] Mortgage loan SNF CA $ 11,713 10.7 % $ 1,272 8/1/2025 [2] Mortgage loan SNF GA 24,900 9.0 % 2,272 9/8/2025 Mor
Slide 16: Consolidated Income Statements
Consolidated Income Statements (amounts in thousands, except per share data) For the Three Months Ended March 31, 2024 2023 Revenues: Rental income $ 53,502 $ 46,163 Interest and other income 9,568 4,443 Total revenues 63,070 50,606 Expenses: Depreciation and amortization 13,448 12,238 Interest expe
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) March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 Net income (loss) attributable to CareTrust REIT, Inc. $ 19,227 $ (484) $ 8,696 $ 26,296
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) March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 Net income (loss) attributable to CareTrust REIT, Inc
Slide 19: Consolidated Balance Sheets
Consolidated Balance Sheets (amounts in thousands) March 31, 2024 December 31, 2023 Assets: Real estate investments, net $ 1,619,438 $ 1,567,119 Other real estate related investments 233,346 180,368 Assets held for sale 12,483 15,011 Cash and cash equivalents 451,173 294,448 Accounts and other recei
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 3.9 3.8 3.8 3.7 3.7 3.7 30.2% 30.6% 26.6% 27.8% 26.2% 26.2% [3] 25.1% 23.0% 2.5 [3] 16.8% 1.4 9.5% 4.1% 0.6 03 12 09 03 12 06 03 09 06 12 09 03 12 09 03 12 06 03 09 06 12 09 /31 /31 /31 /3
Slide 21: Debt Summary
Debt Summary (dollars in thousands) March 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 66.7 % $ (3,739) $ 396,261 Floating Rate Debt Senior unsecured term loan 6.929 % [
Slide 22: Debt Covenants
Debt Covenants March 31, 2024 Covenant Minimum Requirement Maximum Requirement Actual Status Credit Facility Covenants Consolidated Leverage Ratio 60 % 19.7 % In Compliance Consolidated Fixed Charge Coverage Ratio 1.75x 5.61x In Compliance Consolidated Tangible Net Worth ($ in thousands) 1,635,080 2
Slide 23: 2024 Guidance Updated
2024 Guidance Updated (shares in thousands) Full Year 2024 Guidance[1] Low High Net income attributable to CareTrust REIT, Inc. $ 1.01 $ 1.03 Real estate related depreciation and amortization 0.38 0.38 Impairment of real estate investments 0.02 0.02 (Gain) loss on sale of real estate — — Funds from
Slide 24: 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 25: Other Financial Highlights
Other Financial Highlights Dividend History Normalized FFO Payout Ratio [1][2] $0.29 $0.275 $0.275 $0.275 $0.275 $0.28 $0.28 $0.28 $0.28 $0.265 $0.265 83.0% 80.0% 80.0% 80.0% 78.0% 74.3% 74.3% 74.3% 72.4% 69.7% 67.9% 09 12 03 06 09 12 03 06 09 12 03 09 12 03 06 09 12 03 06 09 12 03 /3 /3 /3 /3 /3 /3
Slide 26: Glossary
Glossary Assisted Living Facilities (“ALFs”) Focus Facility (SFF) status, (iii) undergoing significant Funds from Operations (“FFO”) Licensed healthcare facilities that provide personal care renovations that necessarily result in a material reduction in Net income attributable to CareTrust REIT, Inc
Slide 27: 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 28: CareTrust REIT
~= Ww CARETRUST REIT