CareTrust REIT Announces First Quarter 2024 Operating Results
Conference Call Scheduled for
For the quarter,
-
Investments of
$118.8 million during the quarter and$206.5 million year-to-date at an estimated stabilized yield of 11.1% and 10.5%, respectively, after rent ramps under the applicable leases are completed; -
11.6 million shares sold under its ATM Program for gross proceeds of
$273.2 million ; - 98.0% of contractual rent and interest collected;
-
Net income of
$28.7 million and net income per share of$0.22 ; - Net Debt to Annualized Normalized Run Rate EBITDA of 0.6x;
-
Normalized FFO of
$46.5 million and normalized FFO per share of$0.35 ; -
Normalized FAD of
$48.7 million and normalized FAD per share of$0.37 ; -
A 3.6% increase in the quarterly dividend, to
$0.29 per share, representing a payout ratio of approximately 78% on normalized FAD; -
Earning the
Institutional Shareholders Services (ISS) ESG Prime Rating.
Since quarter end,
-
Investments of
$87.7 million at an estimate stabilized yield of 9.6%; -
Investment pipeline of
$260 million .
CareTrust’s President and Chief Executive Officer,
Financial Results for Quarter Ended
Chief Financial Officer,
Liquidity
As of quarter end, CareTrust reported net debt-to-annualized normalized run rate EBITDA of 0.6x, which is below the Company's target leverage range of 4.0x to 5.0x, and a net debt-to-enterprise value of approximately 4.1%.
Guidance Updated
The Company updated guidance for 2024, with
- All investments year-to-date;
- No new acquisitions;
- Dispositions and loan repayments made to date;
- No new dispositions, new loans or loan repayments beyond those completed or announced to date;
- 1.5% - 2% uncollected rents;
- No new debt incurrences or new equity issuances;
- Estimated 2.5% CPI-based rent escalators under CareTrust's long-term net leases.
Dividend Increased
During the quarter, CareTrust increased its quarterly dividend from
Conference Call
A conference call will be held on
About CareTrust ™
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This press release contains, and the related conference call will include, 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 the Company’s intent, belief or expectations, including, but not limited to, statements regarding the following: future financial and financing plans; strategies related to the Company's business and its portfolio, including acquisition opportunities and disposition plans; growth prospects; operating and financial performance; expectations regarding the settlement of ATM forward contracts and the making of distributions and payment of dividends; and the performance of the Company’s tenants and operators and their respective facilities.
Words such as “anticipate,” “believe,” “could,” “expect,” “estimate,” “intend,” “may,” “plan,” “seek,” “should,” “will,” “would,” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements, though not all forward-looking statements contain these identifying words. The Company’s forward-looking statements are based on management’s current expectations and beliefs, and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although the Company believes that the assumptions underlying these forward-looking statements are reasonable, they are not guarantees and the Company can give no assurance that its expectations will be attained. Factors which could have a material adverse effect on the Company’s operations and future prospects or which could cause actual results to differ materially from expectations include, but are not limited to: (i) the ability and willingness of our tenants to meet and/or perform their obligations under the triple-net leases we have entered into with them, including without limitation, their respective obligations to indemnify, defend and hold us harmless from and against various claims, litigation and liabilities; (ii) the risk that we may have to incur additional impairment charges related to our assets held for sale if we are unable to sell such assets at the prices we expect; (iii) the impact of healthcare reform legislation, including minimum staffing level requirements, on the operating results and financial conditions of our tenants; (iv) the ability of our tenants to comply with applicable laws, rules and regulations in the operation of the properties we lease to them; (v) the ability and willingness of our tenants to renew their leases with us upon their expiration, and the ability to reposition our properties on the same or better terms in the event of nonrenewal or in the event we replace an existing tenant, as well as any obligations, including indemnification obligations, we may incur in connection with the replacement of an existing tenant; (vi) the availability of and the ability to identify (a) tenants who meet our credit and operating standards, and (b) suitable acquisition opportunities and the ability to acquire and lease the respective properties to such tenants on favorable terms; (vii) the ability to generate sufficient cash flows to service our outstanding indebtedness; (viii) access to debt and equity capital markets; (ix) fluctuating interest rates; (x) the impact of public health crises, including significant COVID-19 outbreaks as well as other pandemics or epidemics; (xi) the ability to retain our key management personnel; (xii) the ability to maintain our status as a real estate investment trust (“REIT”); (xiii) changes in the
This press release and the related conference call provides information about the Company's financial results as of and for the quarter ended
As used in this press release or the related conference call, unless the context requires otherwise, references to “CTRE,” "CareTrust," “CareTrust REIT” or the “Company” refer to
|
||||||||
CONSOLIDATED INCOME STATEMENTS |
||||||||
(in thousands, except per share data) |
||||||||
(Unaudited) |
||||||||
|
|
For the Three Months Ended
|
||||||
|
|
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 expense |
|
8,228 |
|
|
9,827 |
|
||
Property taxes |
|
1,801 |
|
|
880 |
|
||
Impairment of real estate investments |
|
2,744 |
|
|
1,886 |
|
||
Property operating expenses |
|
660 |
|
|
963 |
|
||
General and administrative |
|
6,838 |
|
|
5,061 |
|
||
Total expenses |
|
33,719 |
|
|
30,855 |
|
||
Other loss: |
|
|
||||||
Gain (loss) on sale of real estate, net |
|
11 |
|
|
(70 |
) |
||
Unrealized loss on other real estate related investments, net |
|
(612 |
) |
|
(454 |
) |
||
Total other loss |
|
(601 |
) |
|
(524 |
) |
||
Net income |
|
28,750 |
|
|
19,227 |
|
||
Net income attributable to noncontrolling interests |
|
4 |
|
|
— |
|
||
Net income attributable to |
$ |
28,746 |
|
$ |
19,227 |
|
||
|
|
|
||||||
Earnings per common share attributable to |
|
|
||||||
Basic |
$ |
0.22 |
|
$ |
0.19 |
|
||
Diluted |
$ |
0.22 |
|
$ |
0.19 |
|
||
|
|
|
||||||
Weighted-average number of common shares: |
|
|
||||||
Basic |
|
132,836 |
|
|
99,063 |
|
||
Diluted |
|
133,202 |
|
|
99,087 |
|
||
|
|
|
||||||
Dividends declared per common share |
$ |
0.29 |
|
$ |
0.28 |
|
||
|
||||||||
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES |
||||||||
(in thousands) |
||||||||
(Unaudited) |
||||||||
|
|
Three Months Ended
|
||||||
|
|
2024 |
|
2023 |
||||
|
|
|
||||||
Net income attributable to |
$ |
28,746 |
|
$ |
19,227 |
|
||
Depreciation and amortization |
|
13,448 |
|
|
12,238 |
|
||
Interest expense |
|
8,228 |
|
|
9,827 |
|
||
Amortization of stock-based compensation |
|
2,120 |
|
|
936 |
|
||
EBITDA attributable to |
|
52,542 |
|
|
42,228 |
|
||
Impairment of real estate investments |
|
2,744 |
|
|
1,886 |
|
||
Property operating expenses |
|
972 |
|
|
1,134 |
|
||
(Gain) loss on sale of real estate, net |
|
(11 |
) |
|
70 |
|
||
Unrealized loss on other real estate related investments, net |
|
612 |
|
|
454 |
|
||
Normalized EBITDA attributable to |
|
56,859 |
|
|
45,772 |
|
||
Full impact of quarterly investments[1] |
|
1,493 |
|
|
— |
|
||
Normalized Run Rate EBITDA attributable to |
$ |
58,352 |
|
$ |
45,772 |
|
||
|
|
|
||||||
Net income attributable to |
$ |
28,746 |
|
$ |
19,227 |
|
||
Real estate related depreciation and amortization |
|
13,442 |
|
|
12,233 |
|
||
Impairment of real estate investments |
|
2,744 |
|
|
1,886 |
|
||
(Gain) loss on sale of real estate, net |
|
(11 |
) |
|
70 |
|
||
Funds from Operations (FFO) attributable to |
|
44,921 |
|
|
33,416 |
|
||
Property operating expenses |
|
972 |
|
|
1,134 |
|
||
Unrealized loss on other real estate related investments, net |
|
612 |
|
|
454 |
|
||
Normalized FFO attributable to |
$ |
46,505 |
|
$ |
35,004 |
|
||
|
|
|
||||||
NET DEBT TO ANNUALIZED NORMALIZED RUN RATE EBITDA RECONCILIATION |
||||||||
(in thousands) |
||||||||
(Unaudited) |
||||||||
|
|
Three Months Ended
|
||||||
|
|
2024 |
|
2023 |
||||
Total debt |
$ |
600,000 |
|
$ |
735,000 |
|
||
Cash, cash equivalents |
|
(451,173 |
) |
|
(43,992 |
) |
||
Net Debt |
$ |
148,827 |
|
$ |
691,008 |
|
||
Annualized Normalized Run Rate EBITDA attributable to |
$ |
233,408 |
|
$ |
183,088 |
|
||
Net Debt to Annualized Normalized Run Rate EBITDA attributable to |
0.6x |
3.8x |
||||||
[1] Quarterly adjustments give effect to the investments completed and loans receivable pay downs during the three months ended for the respective period as though such investments and pay downs were completed as of the beginning of the period. |
||||||||
[2] Annualized Normalized Run Rate EBITDA is calculated as Normalized Run Rate EBITDA attributable to |
||||||||
|
||||||||
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES (continued) |
||||||||
(in thousands, except per share data) |
||||||||
(Unaudited) |
||||||||
|
|
Three Months Ended
|
||||||
|
|
2024 |
|
2023 |
||||
|
|
|
||||||
Net income attributable to |
$ |
28,746 |
|
$ |
19,227 |
|
||
Real estate related depreciation and amortization |
|
13,442 |
|
|
12,233 |
|
||
Amortization of deferred financing fees |
|
614 |
|
|
609 |
|
||
Amortization of stock-based compensation |
|
2,120 |
|
|
936 |
|
||
Straight-line rental income |
|
7 |
|
|
7 |
|
||
Amortization of below market lease intangible |
|
(575 |
) |
|
— |
|
||
Impairment of real estate investments |
|
2,744 |
|
|
1,886 |
|
||
(Gain) loss on sale of real estate, net |
|
(11 |
) |
|
70 |
|
||
Funds Available for Distribution (FAD) attributable to |
|
47,087 |
|
|
34,968 |
|
||
Property operating expenses |
|
972 |
|
|
1,134 |
|
||
Unrealized loss on other real estate related investments, net |
|
612 |
|
|
454 |
|
||
Normalized FAD attributable to |
$ |
48,671 |
|
$ |
36,556 |
|
||
|
|
|
||||||
FFO per share attributable to |
$ |
0.34 |
|
$ |
0.34 |
|
||
Normalized FFO per share attributable to |
$ |
0.35 |
|
$ |
0.35 |
|
||
|
|
|
||||||
FAD per share attributable to |
$ |
0.35 |
|
$ |
0.35 |
|
||
Normalized FAD per share attributable to |
$ |
0.37 |
|
$ |
0.37 |
|
||
|
|
|
||||||
Diluted weighted average shares outstanding [1] |
|
133,328 |
|
|
99,195 |
|
||
|
|
|
||||||
[1] For the periods presented, the diluted weighted average shares have been calculated using the treasury stock method. |
||||||||
|
||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS - 5 QUARTER TREND |
||||||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|||||||||||
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues: |
|
|
|
|
|
|||||||||||||||
Rental income |
$ |
46,163 |
|
$ |
47,745 |
|
$ |
51,218 |
|
$ |
53,473 |
|
$ |
53,502 |
|
|||||
Interest and other income |
|
4,443 |
|
|
3,808 |
|
|
4,659 |
|
|
6,261 |
|
|
9,568 |
|
|||||
Total revenues |
|
50,606 |
|
|
51,553 |
|
|
55,877 |
|
|
59,734 |
|
|
63,070 |
|
|||||
Expenses: |
|
|
|
|
|
|||||||||||||||
Depreciation and amortization |
|
12,238 |
|
|
12,716 |
|
|
13,034 |
|
|
13,211 |
|
|
13,448 |
|
|||||
Interest expense |
|
9,827 |
|
|
11,040 |
|
|
11,750 |
|
|
8,266 |
|
|
8,228 |
|
|||||
Property taxes |
|
880 |
|
|
1,390 |
|
|
2,167 |
|
|
1,733 |
|
|
1,801 |
|
|||||
Impairment of real estate investments |
|
1,886 |
|
|
21,392 |
|
|
8,232 |
|
|
4,791 |
|
|
2,744 |
|
|||||
Property operating expenses |
|
963 |
|
|
658 |
|
|
1,239 |
|
|
563 |
|
|
660 |
|
|||||
General and administrative |
|
5,061 |
|
|
4,718 |
|
|
5,519 |
|
|
6,507 |
|
|
6,838 |
|
|||||
Total expenses |
|
30,855 |
|
|
51,914 |
|
|
41,941 |
|
|
35,071 |
|
|
33,719 |
|
|||||
Other (loss) income: |
|
|
|
|
||||||||||||||||
(Loss) gain on sale of real estate, net |
|
(70 |
) |
|
2,028 |
|
|
— |
|
|
260 |
|
|
11 |
|
|||||
Unrealized (loss) gain on other real estate related investments, net |
|
(454 |
) |
|
(2,151 |
) |
|
(5,251 |
) |
|
1,371 |
|
|
(612 |
) |
|||||
Total other (loss) income |
|
(524 |
) |
|
(123 |
) |
|
(5,251 |
) |
|
1,631 |
|
|
(601 |
) |
|||||
Net income (loss) |
|
19,227 |
|
|
(484 |
) |
|
8,685 |
|
|
26,294 |
|
|
28,750 |
|
|||||
Net (loss) income attributable to noncontrolling interests |
|
— |
|
|
— |
|
|
(11 |
) |
|
(2 |
) |
|
4 |
|
|||||
Net income (loss) attributable to |
$ |
19,227 |
|
$ |
(484 |
) |
$ |
8,696 |
|
$ |
26,296 |
|
$ |
28,746 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Diluted earnings (loss) per share attributable to |
$ |
0.19 |
|
$ |
(0.01 |
) |
$ |
0.08 |
|
$ |
0.22 |
|
$ |
0.22 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Diluted weighted average shares outstanding |
99,087 |
99,117 |
104,311 |
121,684 |
133,202 |
|||||||||||||||
|
||||||||||||||||||||
RECONCILIATIONS OF NET INCOME (LOSS) TO NON-GAAP FINANCIAL MEASURES - 5 QUARTER TREND |
||||||||||||||||||||
(in thousands) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
||||||||||
|
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
Ended |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) attributable to |
$ |
19,227 |
|
$ |
(484 |
) |
$ |
8,696 |
|
$ |
26,296 |
|
$ |
28,746 |
|
|||||
Depreciation and amortization |
|
12,238 |
|
|
12,716 |
|
|
13,034 |
|
|
13,211 |
|
|
13,448 |
|
|||||
Interest expense |
|
9,827 |
|
|
11,040 |
|
|
11,750 |
|
|
8,266 |
|
|
8,228 |
|
|||||
Amortization of stock-based compensation |
|
936 |
|
|
924 |
|
|
1,519 |
|
|
1,774 |
|
|
2,120 |
|
|||||
EBITDA attributable to |
|
42,228 |
|
|
24,196 |
|
|
34,999 |
|
|
49,547 |
|
|
52,542 |
|
|||||
Impairment of real estate investments |
|
1,886 |
|
|
21,392 |
|
|
8,232 |
|
|
4,791 |
|
|
2,744 |
|
|||||
Property operating expenses |
|
1,134 |
|
|
831 |
|
|
1,416 |
|
|
714 |
|
|
972 |
|
|||||
Loss (gain) on sale of real estate, net |
|
70 |
|
|
(2,028 |
) |
|
— |
|
|
(260 |
) |
|
(11 |
) |
|||||
Unrealized loss (gain) on other real estate related investments, net |
|
454 |
|
|
2,151 |
|
|
5,251 |
|
|
(1,371 |
) |
|
612 |
|
|||||
Normalized EBITDA attributable to |
$ |
45,772 |
|
$ |
46,542 |
|
$ |
49,898 |
|
$ |
53,421 |
|
$ |
56,859 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Net income (loss) attributable to |
$ |
19,227 |
|
$ |
(484 |
) |
$ |
8,696 |
|
$ |
26,296 |
|
$ |
28,746 |
|
|||||
Real estate related depreciation and amortization |
|
12,233 |
|
|
12,712 |
|
|
13,028 |
|
|
13,206 |
|
|
13,442 |
|
|||||
Impairment of real estate investments |
|
1,886 |
|
|
21,392 |
|
|
8,232 |
|
|
4,791 |
|
|
2,744 |
|
|||||
Loss (gain) on sale of real estate, net |
|
70 |
|
|
(2,028 |
) |
|
— |
|
|
(260 |
) |
|
(11 |
) |
|||||
Funds from Operations (FFO) attributable to |
|
33,416 |
|
|
31,592 |
|
|
29,956 |
|
|
44,033 |
|
|
44,921 |
|
|||||
Property operating expenses |
|
1,134 |
|
|
831 |
|
|
1,416 |
|
|
714 |
|
|
972 |
|
|||||
Unrealized loss (gain) on other real estate related investments, net |
|
454 |
|
|
2,151 |
|
|
5,251 |
|
|
(1,371 |
) |
|
612 |
|
|||||
Normalized FFO attributable to |
$ |
35,004 |
|
$ |
34,574 |
|
$ |
36,623 |
|
$ |
43,376 |
|
$ |
46,505 |
|
|||||
|
||||||||||||||||||||
RECONCILIATIONS OF NET INCOME (LOSS) TO NON-GAAP FINANCIAL MEASURES - 5 QUARTER TREND (continued) |
||||||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
||||||||||
|
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
Ended |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) attributable to |
$ |
19,227 |
|
$ |
(484 |
) |
$ |
8,696 |
|
$ |
26,296 |
|
$ |
28,746 |
|
|||||
Real estate related depreciation and amortization |
|
12,233 |
|
|
12,712 |
|
|
13,028 |
|
|
13,206 |
|
|
13,442 |
|
|||||
Amortization of deferred financing fees |
|
609 |
|
|
608 |
|
|
609 |
|
|
610 |
|
|
614 |
|
|||||
Amortization of stock-based compensation |
|
936 |
|
|
924 |
|
|
1,519 |
|
|
1,774 |
|
|
2,120 |
|
|||||
Straight-line rental income |
|
7 |
|
|
7 |
|
|
7 |
|
|
8 |
|
|
7 |
|
|||||
Amortization of below market lease intangible |
|
— |
|
|
— |
|
|
— |
|
|
(384 |
) |
|
(575 |
) |
|||||
Impairment of real estate investments |
|
1,886 |
|
|
21,392 |
|
|
8,232 |
|
|
4,791 |
|
|
2,744 |
|
|||||
Loss (gain) on sale of real estate, net |
|
70 |
|
|
(2,028 |
) |
|
— |
|
|
(260 |
) |
|
(11 |
) |
|||||
Funds Available for Distribution (FAD) attributable to |
|
34,968 |
|
|
33,131 |
|
|
32,091 |
|
|
46,041 |
|
|
47,087 |
|
|||||
Property operating expenses |
|
1,134 |
|
|
831 |
|
|
1,416 |
|
|
714 |
|
|
972 |
|
|||||
Unrealized loss (gain) on other real estate related investments, net |
|
454 |
|
|
2,151 |
|
|
5,251 |
|
|
(1,371 |
) |
|
612 |
|
|||||
Normalized FAD attributable to |
$ |
36,556 |
|
$ |
36,113 |
|
$ |
38,758 |
|
$ |
45,384 |
|
$ |
48,671 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
FFO per share attributable to |
$ |
0.34 |
|
$ |
0.32 |
|
$ |
0.29 |
|
$ |
0.36 |
|
$ |
0.34 |
|
|||||
Normalized FFO per share attributable to |
$ |
0.35 |
|
$ |
0.35 |
|
$ |
0.35 |
|
$ |
0.36 |
|
$ |
0.35 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
FAD per share attributable to |
$ |
0.35 |
|
$ |
0.33 |
|
$ |
0.31 |
|
$ |
0.38 |
|
$ |
0.35 |
|
|||||
Normalized FAD per share attributable to |
$ |
0.37 |
|
$ |
0.36 |
|
$ |
0.37 |
|
$ |
0.37 |
|
$ |
0.37 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Diluted weighted average shares outstanding [1] |
|
99,195 |
|
|
99,360 |
|
|
104,422 |
|
|
121,854 |
|
|
133,328 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
[1] For the periods presented, the diluted weighted average shares have been calculated using the treasury stock method. |
||||||||||||||||||||
|
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(in thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
||||||
Assets: |
|
|
||||||
Real estate investments, net |
$ |
1,619,438 |
|
$ |
1,567,119 |
|
||
Other real estate related investments (including accrued interest of |
|
233,346 |
|
|
180,368 |
|
||
Assets held for sale |
|
12,483 |
|
|
15,011 |
|
||
Cash and cash equivalents |
|
451,173 |
|
|
294,448 |
|
||
Accounts and other receivables |
|
402 |
|
|
395 |
|
||
Prepaid expenses and other assets, net |
|
27,749 |
|
|
23,337 |
|
||
Deferred financing costs, net |
|
3,845 |
|
|
4,160 |
|
||
Total assets |
$ |
2,348,436 |
|
$ |
2,084,838 |
|
||
|
|
|
||||||
Liabilities and Equity: |
|
|
||||||
Senior unsecured notes payable, net |
$ |
396,261 |
|
$ |
396,039 |
|
||
Senior unsecured term loan, net |
|
199,612 |
|
|
199,559 |
|
||
Accounts payable, accrued liabilities and deferred rent liabilities |
|
35,275 |
|
|
33,992 |
|
||
Dividends payable |
|
41,192 |
|
|
36,531 |
|
||
Total liabilities |
|
672,340 |
|
|
666,121 |
|
||
|
|
|
||||||
Equity: |
|
|
||||||
Common stock |
|
1,417 |
|
|
1,300 |
|
||
Additional paid-in capital |
|
2,152,454 |
|
|
1,883,147 |
|
||
Cumulative distributions in excess of earnings |
|
(480,074 |
) |
|
(467,628 |
) |
||
Total stockholders' equity |
|
1,673,797 |
|
|
1,416,819 |
|
||
Non-controlling interests |
|
2,299 |
|
|
1,898 |
|
||
Total equity |
|
1,676,096 |
|
|
1,418,717 |
|
||
Total liabilities and equity |
$ |
2,348,436 |
|
$ |
2,084,838 |
|
||
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(in thousands) |
||||||||
(Unaudited) |
||||||||
|
|
For the Three Months Ended
|
||||||
|
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
||||||
Net income |
$ |
28,750 |
|
$ |
19,227 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
||||||
Depreciation and amortization (including below-market ground leases) |
|
13,462 |
|
|
12,252 |
|
||
Amortization of deferred financing costs |
|
614 |
|
|
609 |
|
||
Unrealized losses on other real estate related investments, net |
|
612 |
|
|
454 |
|
||
Amortization of stock-based compensation |
|
2,120 |
|
|
936 |
|
||
Straight-line rental income |
|
7 |
|
|
7 |
|
||
Amortization of below market rent |
|
(575 |
) |
|
— |
|
||
Noncash interest income |
|
(425 |
) |
|
150 |
|
||
(Gain) loss on sale of real estate, net |
|
(11 |
) |
|
70 |
|
||
Impairment of real estate investments |
|
2,744 |
|
|
1,886 |
|
||
Change in operating assets and liabilities: |
|
|
||||||
Accounts and other receivables |
|
(15 |
) |
|
(33 |
) |
||
Prepaid expenses and other assets, net |
|
(322 |
) |
|
61 |
|
||
Accounts payable, accrued liabilities and deferred rent liabilities |
|
1,859 |
|
|
(499 |
) |
||
Net cash provided by operating activities |
|
48,820 |
|
|
35,120 |
|
||
Cash flows from investing activities: |
|
|
||||||
Acquisitions of real estate, net of deposits applied |
|
(66,619 |
) |
|
— |
|
||
Purchases of equipment, furniture and fixtures and improvements to real estate |
|
(398 |
) |
|
(2,019 |
) |
||
Investment in real estate related investments and other loans receivable |
|
(52,165 |
) |
|
— |
|
||
Principal payments received on real estate related investments and other loans receivable |
|
— |
|
|
15,143 |
|
||
Escrow deposits for potential acquisitions of real estate |
|
(4,105 |
) |
|
(17,172 |
) |
||
Net proceeds from sales of real estate |
|
46 |
|
|
3,230 |
|
||
Net cash used in investing activities |
|
(123,241 |
) |
|
(818 |
) |
||
Cash flows from financing activities: |
|
|
||||||
Proceeds from the issuance of common stock, net |
|
269,787 |
|
|
(501 |
) |
||
Borrowings under unsecured revolving credit facility |
|
— |
|
|
10,000 |
|
||
Payments of deferred financing costs |
|
(24 |
) |
|
(21 |
) |
||
Net-settle adjustment on restricted stock |
|
(2,483 |
) |
|
(1,479 |
) |
||
Dividends paid on common stock |
|
(36,531 |
) |
|
(27,409 |
) |
||
Contributions from noncontrolling interests |
|
444 |
|
|
— |
|
||
Distributions to noncontrolling interests |
|
(47 |
) |
|
— |
|
||
Net cash provided by (used in) financing activities |
|
231,146 |
|
|
(19,410 |
) |
||
Net increase in cash and cash equivalents |
|
156,725 |
|
|
14,892 |
|
||
Cash and cash equivalents as of the beginning of period |
|
294,448 |
|
|
13,178 |
|
||
Cash and cash equivalents as of the end of period |
$ |
451,173 |
|
$ |
28,070 |
|
||
|
||||||||||||||||||||||||||
DEBT SUMMARY |
||||||||||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||
|
Interest |
|
Maturity |
|
|
|
% of |
|
Deferred |
|
Net Carrying |
|||||||||||||||
Debt |
Rate |
|
Date |
|
Principal |
|
Principal |
|
Loan 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 |
% |
[1] |
2026 |
|
|
200,000 |
|
33.3 |
% |
|
|
(388 |
) |
|
|
199,612 |
|||||||||
Unsecured revolving credit facility |
— |
% |
[2] |
2027 |
[3] |
|
— |
|
— |
% |
|
|
— |
|
[4] |
|
— |
|||||||||
|
6.929 |
% |
|
|
|
|
200,000 |
|
33.3 |
% |
|
|
(388 |
) |
|
|
199,612 |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Debt |
4.893 |
% |
|
|
|
$ |
600,000 |
|
100.0 |
% |
|
$ |
(4,127 |
) |
|
$ |
595,873 |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
[1] Funds can be borrowed at applicable SOFR plus 1.50% to 2.20% or at the Base Rate (as defined) plus 0.50% to 1.20%. |
||||||||||||||||||||||||||
[2] Funds can be borrowed at applicable SOFR plus 1.10% to 1.55% or at the Base Rate (as defined) plus 0.10% to 0.55%. |
||||||||||||||||||||||||||
[3] Maturity date does not assume exercise of two 6-month extension options. |
||||||||||||||||||||||||||
[4] Deferred financing fees are not shown net for the unsecured revolving credit facility and are included in assets on the balance sheet. |
|
||||||||
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES |
||||||||
(shares in thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
||||||
|
|
|
||||||
2024 Guidance Updated |
||||||||
|
|
|
||||||
|
|
|
||||||
|
Full Year 2024 Guidance[1] |
|||||||
|
Low |
High |
||||||
Net income attributable to |
$ |
1.01 |
|
$ |
1.03 |
|
||
Real estate related depreciation and amortization |
|
0.38 |
|
|
0.38 |
|
||
Impairment of real estate investment |
|
0.02 |
|
|
0.02 |
|
||
(Gain) loss on sale of real estate |
|
— |
|
|
— |
|
||
Funds from Operations (FFO) attributable to |
|
1.41 |
|
|
1.43 |
|
||
Property operating expenses |
|
0.01 |
|
|
0.01 |
|
||
Unrealized (gain) loss on other real estate related investments |
|
— |
|
|
— |
|
||
Normalized FFO attributable to |
$ |
1.42 |
|
$ |
1.44 |
|
||
|
|
|
||||||
Net income attributable to |
$ |
1.01 |
|
$ |
1.03 |
|
||
Real estate related depreciation and amortization |
|
0.38 |
|
|
0.38 |
|
||
Amortization of deferred financing fees |
|
0.02 |
|
|
0.02 |
|
||
Amortization of stock-based compensation |
|
0.04 |
|
|
0.04 |
|
||
Straight-line rental income |
|
— |
|
|
— |
|
||
Amortization of below market lease intangible |
|
(0.02 |
) |
|
(0.02 |
) |
||
Impairment of real estate investment |
|
0.02 |
|
|
0.02 |
|
||
(Gain) loss on sale of real estate |
|
— |
|
|
— |
|
||
Funds Available for Distribution (FAD) attributable to |
|
1.45 |
|
|
1.47 |
|
||
Property operating expenses |
|
0.01 |
|
|
0.01 |
|
||
Unrealized (gain) loss on other real estate related investments |
|
— |
|
|
— |
|
||
Normalized FAD attributable to |
$ |
1.46 |
|
$ |
1.48 |
|
||
Weighted average shares outstanding: |
|
|
||||||
Diluted |
|
140,010 |
|
|
140,010 |
|
||
|
|
|
||||||
[1] This guidance assumes and includes (i) all investments, dispositions and loan repayments made to date, (ii) no new acquisitions, dispositions, new loans or loan repayments beyond those completed or announced to date, (iii) no new debt incurrences or new equity issuances, (iv) estimated 2.5% CPI-based rent escalators under CareTrust's long-term net leases, and (v) assumes 1.5% - 2% uncollected rents for the year. |
Non-GAAP Financial Measures
EBITDA attributable to
Funds from Operations (“FFO”), as defined by the
FFO is defined by Nareit as net income computed in accordance with GAAP, excluding gains or losses from dispositions of real estate investments, real estate related depreciation and amortization and real estate impairment charges, and adjustments for unconsolidated partnerships and joint ventures. The Company computes FFO attributable to
FAD attributable to
In addition, the Company reports Normalized FFO attributable to
While FFO, Normalized FFO, FAD and Normalized FAD are relevant and widely-used measures of operating performance among REITs, they do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating the Company’s liquidity or operating performance. FFO, Normalized FFO, FAD and Normalized FAD do not purport to be indicative of cash available to fund future cash requirements.
Further, the Company’s computation of FFO, Normalized FFO, FAD and Normalized FAD may not be comparable to FFO, Normalized FFO, FAD and Normalized FAD reported by other REITs that do not define FFO in accordance with the current Nareit definition or that interpret the current Nareit definition or define FAD differently than the Company does.
The Company also discloses Net Debt to Annualized Normalized Run Rate EBITDA, which compares the Company’s Net Debt as of the last day of the quarter to the Annualized Run Rate EBITDA attributable to
The Company believes that net income attributable to
View source version on businesswire.com: https://www.businesswire.com/news/home/20240501765325/en/
(949) 542-3130
ir@caretrustreit.com
Source: