Caretrust Reit, Inc. · NYSE:CTRE
Caretrust Reit — Q2 2024 Earnings Presentation
27 slides from Caretrust Reit's earnings presentation, Aug 2, 2024
Slide 1: Financial Supplement Second Quarter 2024
Exhibit 99.2 Financial Supplement Second Quarter 2024
Slide 2: Disclaimers
Disclaimers This supplement contains forward-looking statements nonrenewal or in the event we replace an existing for GAAP financial information, and should recognize within the meaning of the Private Securities Litigation tenant, as well as any obligations, including that non-GAAP information prese
Slide 3: Table of Contents
Table of Contents COMPANY PROFILE 04 COMPANY SNAPSHOT 05 INVESTMENTS 06 PORTFOLIO OVERVIEW 07-14 Top 10 Tenants Lease Coverage Portfolio Performance Rent Diversification by Tenant Geographic Diversification Diversification by State Lease Maturities Tenant Purchase Options 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 Dave Sedgwick – Chief
Slide 5: Snapshot
Snapshot CARETRUST REIT, INC. NYSE: CTRE Market Data (as of June 30, 2024) Credit Ratings S&P Fitch ◦ Closing Price: $25.10 ◦ Corporate Rating: BB (positive) ◦ Corporate Rating: BB+ (stable) ◦ 52 Week Range: $26.43 – $19.25 ◦ Senior Unsecured Notes: BB+ ◦ Senior Unsecured Notes: BB+ ◦ Market Cap: $3
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: Top 10 Tenants Lease Coverage
Top 10 Tenants Lease Coverage Twelve Months Ended Twelve Months Ended December 31, 2023 March 31, 2024 EBITDAR EBITDARM EBITDAR EBITDARM [1] Coverage Coverage[1] Coverage[1] Coverage[1] 1 The Ensign Group 3.28x 4.14x 3.29x 4.16x 2 Priority Management Group 1.24x 1.54x 1.20x 1.50x 3 PACS Group 2.73x
Slide 8: Portfolio Performance
Portfolio Performance (dollars in thousands) As of June 30, 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 157 17,145 $ 1,527,898 60.8 % $ 159,939
Slide 9: Rent Diversification by Tenant for Net-Leased Assets
Rent Diversification by Tenant for Net-Leased Assets (dollars in thousands) As of June 30, 2024[1] Net Leased Operating Assets Beds/Units Rent[2] % of Total Rent 1 The Ensign Group 100 10,672 $ 71,558 32.9 % 2 Priority Management Group 15 2,144 31,142 14.3 % 3 PACS Group 10 1,228 16,258 7.5 % 4 Casc
Slide 10: Geographic Diversification (% of run-rate rent and interest)
Geographic Diversification (% of run-rate rent and interest) 7% * 2% 1% * * * 6% * 1% * 1% 1% 1% 3% 3% 1% 2% 4% 29% * 1% 2% 7% 1% 5% 1% * 1% 19% 7% 1% * Less than 1%. 10 Note: Numbers are as of June 30, 2024 and include properties securing our other real estate related investments. Numbers exclude 2
Slide 11: Rent & Interest Diversification by State
Rent & Interest Diversification by State (dollars in thousands) As of June 30, 2024[1] Operating % of Total Rent/ Investments by State Facilities Beds/Units Rent/Interest[2] Interest 1 California 63 7,742 $ 73,153 28.6 % 2 Texas 47 6,035 48,773 19.1 % 3 Louisiana 8 1,164 18,366 7.2 % 4 North Carolin
Slide 12: Lease Maturities
Lease Maturities (dollars in thousands) As of June 30, 2024[1] Lease Maturity Year[2] Rent[3] % of Total Rent 2027 $ 5,613 2.6 % 2029 8,481 3.9 % 2030 5,235 2.4 % 2031 51,715 23.8 % 2032 23,686 10.9 % 2033 22,202 10.2 % 2034 42,310 19.5 % 2036 14,564 6.7 % 2038 34,042 15.7 % 2039 2,457 1.1 % 2044 6,
Slide 13: Tenant Purchase Options
Tenant Purchase Options (dollars in thousands) As of June 30, 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] $ 858 0.38 % [6] SNF 4 November 2034 12/1/2024 A 3,988 1.77 % [5] [8]
Slide 14: Other Real Estate Investments
Other Real Estate Investments (dollars in thousands) As of June 30, 2024 Mortgage Loans Wtg Avg Contractual [1] Maturity Year Property Type Location Investment Interest Rate Interest 2025 SNF CA, GA $ 36,613 9.7 % [2] $ 3,544 2026 ALF / SNF CA 9,864 10.8 % 1,066 2027 SNF / Campus Mid-Atlantic 75,000
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, 2024 2023 2024 2023 Revenues: Rental income $ 55,407 $ 47,745 $ 108,909 $ 93,908 Interest and other income 13,484 3,808 23,052 8,251 Total revenue
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, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 Net (loss) income attributable to CareTrust REIT, Inc. $ (484) $ 8,696 $ 26,296 $ 28,746
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, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 Net (loss) income attributable to CareTrust REIT, Inc.
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets (amounts in thousands) June 30, 2024 December 31, 2023 Assets: Real estate investments, net $ 1,706,231 $ 1,567,119 Other real estate related investments 433,532 180,368 Assets held for sale 28,753 15,011 Cash and cash equivalents 495,134 294,448 Accounts and other receiv
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 3.9 3.8 3.8 3.7 3.7 30.2% 30.6% 26.6% 27.8% 26.2% 26.2% [3] 23.0% 2.5 [3] 16.8% 1.4 9.5% 4.1% 2.6% 0.6 0.4 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, 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 % $ (3,517) $ 396,483 Floating Rate Debt Senior unsecured term loan 6.942 % [1
Slide 21: Debt Covenants
Debt Covenants June 30, 2024 Covenant Minimum Requirement Maximum Requirement Actual Status Credit Facility Covenants Consolidated Leverage Ratio 60 % 17.9 % In Compliance Consolidated Fixed Charge Coverage Ratio 1.75x 6.54x In Compliance Consolidated Tangible Net Worth ($ in thousands) 1,861,917 2,
Slide 22: 2024 Guidance Updated
2024 Guidance Updated (shares in thousands) Full Year 2024 Guidance[1] Low High Net income attributable to CareTrust REIT, Inc. $ 0.86 $ 0.88 Real estate related depreciation and amortization 0.38 0.38 Impairment of real estate investments 0.19 0.19 (Gain) loss on sale of real estate — — Funds from
Slide 23: Equity Capital Transactions
Equity Capital Transactions Follow-On Equity Offering Activity 2015 2016 2019 Number of Shares (000s) 16,330 16,100 6,641 Public Offering Price per Share $ 10.50 $ 12.14 [1] $ 23.35 Gross Proceeds (000s) $ 171,465 $ 195,385 $ 155,073 At-the-Market Offering Activity 2016 2017 2018 2019 2020 2021 2022
Slide 24: Other Financial Highlights
Other Financial Highlights Dividend History Normalized FFO Payout Ratio [1][2] $0.29 $0.29 $0.275 $0.275 $0.275 $0.275 $0.28 $0.28 $0.28 $0.28 $0.265 83.0% 81.0% 80.0% 80.0% 80.0% 78.0% 74.3% 74.3% 74.3% 72.4% 67.9% 12/ 03/ 06/ 09/ 12/ 03/ 06/ 09/ 12/ 03/ 06/ 12/ 03/ 06/ 09/ 12/ 03/ 06/ 09/ 12/ 03/
Slide 25: 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 26: 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 27: CareTrust REIT
~= Ww CARETRUST REIT