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ctre-20210210
0001590717false00015907172021-02-102021-02-10


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 10, 2021
CareTrust REIT, Inc.
(Exact name of registrant as specified in its charter)  

Maryland001-3618146-3999490
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
Registrant’s telephone number, including area code: (949542-3130
905 Calle Amanecer, Suite 300, San Clemente, CA
92673
(Address of principal executive offices)(Zip Code)
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareCTREThe Nasdaq Stock Market LLC
(Nasdaq Global Select Market)
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   




Item 2.02    Results of Operations and Financial Condition.

    On February 10, 2021, CareTrust REIT, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter and full fiscal year ended December 31, 2020. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

    Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in any such filing.

Item 7.01    Regulation FD Disclosure.

    A copy of the Company’s supplemental financial information for the fourth quarter and full fiscal year ended December 31, 2020 is attached hereto as Exhibit 99.2 and is incorporated herein by reference. A copy of the supplemental financial information is also available on the “Investors” section of the Company’s website at www.caretrustreit.com.

    Exhibit 99.2 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any filing of the Company under the Securities Act or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in any such filing.

Item 9.01. Financial Statements and Exhibits.

 
(d)Exhibits.
 
Exhibits  Description
  
*104Cover Page Interactive Data File (embedded within the inline XBRL document)





SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Date: February 10, 2021
CARETRUST REIT, INC.
By:
/s/ William M. Wagner
 
William M. Wagner
Chief Financial Officer and Treasurer


Document

Exhibit 99.1
https://cdn.kscope.io/234cc81c9f00f3e58fc93a59bf7efb2e-image1a112a.gif

CareTrust REIT Announces Fourth Quarter and Full Year 2020 Operating Results

Conference Call Scheduled for Thursday, February 11, 2021 at 1:00 pm ET
SAN CLEMENTE, Calif., February 10, 2021 (GLOBE NEWSWIRE) -- CareTrust REIT, Inc. (Nasdaq:CTRE) today reported operating results for the quarter and year ended December 31, 2020, as well as other recent events.
For the quarter, CareTrust REIT reported:
Net income of $21.1 million and net income per diluted weighted-average common share of $0.22;
Normalized FFO of $34.2 million and normalized FFO per diluted weighted-average common share of $0.36;
Normalized FAD of $35.7 million and normalized FAD per diluted weighted-average common share of $0.37; and
A net debt-to-normalized EBITDA ratio of 3.3x, and a net debt-to-enterprise value of 20.0%, each as of quarter-end.

Lengthening the Runway

“We are pleased to report that, despite the ongoing COVID-19 pandemic, CareTrust was able to post solid growth and create additional shareholder value in 2020," said Greg Stapley, CareTrust's Chairman and Chief Executive Officer. "When the pandemic broke we firmly believed that our outstanding operators would find a way to navigate through the challenge, which gave us the confidence to maintain both our dividend and guidance,” said Mr. Stapley. He noted that CareTrust collected 99.3% of contract rents in 2020 and experienced no rent leakage in connection with the one operator change made during the year. “These results, and the ongoing performance by our tenants under some of the most difficult circumstances imaginable, have proven once again the value of our ‘Operator First’ investment philosophy,” he concluded.

Dave Sedgwick, CareTrust’s President and Chief Operating Officer, added that the government response to the crisis illustrates the high importance of skilled nursing in the overall healthcare continuum. “The continuing government financial support to nursing facilities puts an exclamation point on the essential nature of skilled nursing as the high-touch, low-cost alternative to expensive acute care settings and lower-acuity home health placements,” he said.

He noted that, while some operators had not needed the additional funding and continue to return relief funds to the government, others had benefited significantly. “This quarter we continue our enhanced disclosure around the potential utility of those funds, to show just how far the government stimulus and other measures could sustain impacted operations if we see an extended recovery period,” said Mr. Sedgwick, referencing the Company's quarterly supplemental report issued today. “We are pleased to report that, with the funds in hand and the national Public Health Emergency extended to the end of the year, it appears that nearly all of our tenants have enough runway to continue performing financially for the next few quarters while occupancy rebounds,” he said.

Personnel Changes Announced

Subsequent to the end of the quarter, CareTrust disclosed several key personnel changes. On February 9, 2021 the Board of Directors announced that David Sedgwick was promoted to President and Chief Operating Officer. “With his extensive management experience in both healthcare operations and real estate investments, Dave is well-equipped to help guide CareTrust to the next level,” Mr. Stapley said. Mr. Sedgwick brings more than 20 years’ experience in the skilled nursing and seniors housing industries to his new role where he will be responsible for leading the Company's investing, financing, asset management, portfolio management and investor relations activities. Before helping to launch CareTrust, he served as Chief Human Capital Officer and President of Corporate Services at The Ensign Group, Inc., overseeing back-office and in-field support for Ensign’s facilities and personally training over 100 new facility CEOs. Mr. Sedgwick has been a licensed nursing home administrator since 2001.

On February 8, 2021, CareTrust announced that Lauren Beale was promoted to Senior Vice President and Controller. “Lauren has been an indispensable member of the core team that has produced CareTrust’s industry-leading success since 2014,” said Mr. Stapley. Mr. Wagner noted that Ms. Beale had been responsible for establishing CareTrust’s accounting, internal controls and other key financial reporting systems, and more recently has been expanding her role into finance and investor relations. Ms. Beale has served as CareTrust’s Controller since September 2014. Prior to joining CareTrust, she worked in Global Portfolio Accounting for The Capital Group Companies, Inc., and at Ernst & Young, LLP where she worked with real estate clients, including several REITs, and in the firm’s Professional Practice – Accounting group, based out of its national office. Ms. Beale is a Certified Public Accountant (inactive) in the State of California.




Also on February 8, 2021, the Company announced that noted real estate and healthcare attorney James Callister has joined the Company as General Counsel and Secretary. Mr. Stapley reported that Mr. Callister has served as CareTrust’s outside transactional counsel since the Company’s earliest days. “James has provided brilliant legal support to us for a long time, and the move to in-house will allow him to participate in more of the strategic conversations as well,” said Mr. Stapley. Mr. Sedgwick added that Mr. Callister has been involved in virtually every investment CareTrust has made, as well as the Company’s more complex asset management work. Mr. Callister has in-depth experience representing healthcare REITs and other owners of assisted living, skilled nursing, memory care, medical office and other healthcare-related real estate in acquiring, selling, developing, financing (both bank and agency), leasing and managing healthcare real estate. Prior to joining CareTrust Mr. Callister was a partner in the Newport Beach, California law firm of Sherry Meyerhoff Hanson & Crance LLP, and prior to that he was Counsel in the Newport Beach office of O’Melveny & Myers LLP, and Assistant General Counsel at Shea Properties.

Financial Results for Quarter and Year Ended December 31, 2020
Chief Financial Officer Bill Wagner reported that, for the fourth quarter, CareTrust generated net income of $21.1 million, or $0.22 per diluted weighted-average common share, normalized FFO of $34.2 million, or $0.36 per diluted weighted-average common share, and normalized FAD of $35.7 million, or $0.37 per diluted weighted-average common share. “We were pleased to be able to grow earnings in 2020 despite the severe disruptions to the economy and our tenants’ businesses during the COVID-19 pandemic, and we remain well-positioned to capitalize on near-term growth opportunities as the industry emerges from lockdowns, PPE shortages and other effects of the pandemic,” said Mr. Wagner.

Liquidity
As of quarter end, CareTrust reported net debt-to-normalized EBITDA of approximately 3.3x, which is well under the Company's target leverage range of 4.0x to 5.0x, and represents a net debt-to-enterprise value of approximately 20.0%. Mr. Wagner stated that at quarter end the Company had approximately $50 million outstanding on its $600 million revolving credit line, and no scheduled debt maturities prior to 2024. He also disclosed that CareTrust currently has more than $18 million in cash on hand. He also noted that the Company's at-the-market equity program has $500 million in available authorization. "With both the debt and equity markets accessible to us at present, we have a wide range of capital options for funding our opportunistic growth strategy," said Mr. Wagner.

Pipeline Recovering
During the fourth quarter of 2020 CareTrust made two investments totaling $62.6 million. On November 17, 2020 CareTrust announced that it had acquired four post-acute care facilities in the Dallas-Ft. Worth area in an off-market transaction for $47.6 million, inclusive of transaction costs. The portfolio is leased to operating affiliates of The Ensign Group, Inc. CareTrust assumed the seller’s two existing leases in the transaction, with aggregate annual cash rent of approximately $3.8 million and CPI-based escalators. The leases have a remaining term of approximately 14 years with three five-year renewal options and include a tenant option to purchase the properties later in the initial term. The acquisition was funded using a combination of cash on hand and CareTrust’s $600 million unsecured revolving credit facility.

On December 1, 2020 CareTrust announced a $15.0 million mezzanine loan to affiliates of Next Healthcare, Inc. in connection with Next Healthcare’s acquisition of a nine-property skilled nursing portfolio in Virginia. The portfolio includes approximately 1,000 skilled nursing beds. The secured mezzanine loan carries a five-year maturity and an annual fixed interest rate of 12.0%. The loan was funded with proceeds from CareTrust’s $600 million unsecured revolving credit facility.

The two transactions brought CareTrust’s total capital deployment for 2020 to $105.3 million. "2020 was a light year on the external growth front, but with the pandemic bringing transaction flow to a near-complete halt for several months, we were pleased to post positive growth and position ourselves for a solid 2021,” said Mark Lamb, CareTrust's Chief Investment Officer. He noted that although deal flow for performing assets is still uncharacteristically light, he sees early indications that transaction volumes are beginning to accelerate. “Refilling the pipe usually takes time, but we’re happy to report that our current pipeline remains in the $125 million to $150 million range, which is consistent with our historical levels," he said. "As a reminder, CareTrust generally defines its reportable pipeline as those deals that we are actively pursuing and believe we have a reasonable chance of successfully closing," he concluded.

2021 Guidance Issued

CareTrust issued annual guidance for 2021, on a per-diluted weighted-average common share basis, for net income of approximately $0.84 to $0.86, normalized FFO of approximately $1.40 to $1.42, and normalized FAD of approximately $1.49 to $1.51. The guidance is based on a diluted weighted-average common share count of 95.6 million shares, and per CareTrust's standard practice includes all investments, dispositions and loan repayments made to date, and assumes no new acquisitions, dispositions, new loans or loan repayments beyond those completed or announced to date, no new debt incurrences or new equity issuances, and estimated 1.25% CPI-based rent escalators under CareTrust's long-term net leases in 2021.

“Naturally, we note that material changes in economic and other factors related to the COVID-19 pandemic and the government’s responses thereto could alter our outlook at any time,” Mr. Wagner concluded.




Dividend Maintained
During the quarter, CareTrust declared a quarterly dividend of $0.25 per common share. On an annualized basis, the payout ratio was approximately 69% based on fourth quarter 2020 normalized FFO, and 68% based on normalized FAD.

Conference Call

A conference call will be held on Thursday, February 11, 2021, at 1:00 p.m. Eastern Time (10:00 a.m. Pacific Time), during which CareTrust’s management will discuss fourth quarter and full year 2020 results, recent developments and other matters. The dial-in number for this call is (844) 220-4972 (U.S.) or (317) 973-4053 (International). The conference ID number is 9935506. To listen to the call online, or to view any financial or other statistical information required by SEC Regulation G, please visit the Investors section of the CareTrust REIT website at http://investor.caretrustreit.com. The call will be recorded, and will be available for replay via the website for 30 days following the call.

About CareTrustTM

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States. More information about CareTrust REIT is available at www.caretrustreit.com.



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 future financial and financing positions, business and acquisition strategies, growth prospects, operating and financial performance, expectations regarding the making of distributions, payment of dividends, compliance with and changes in governmental regulations, 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 COVID-19 pandemic and the measures taken to prevent its spread and the related impact on our business or the businesses of our tenants; (ii) 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; (iii) the ability of our tenants to comply with applicable laws, rules and regulations in the operation of the properties we lease to them; (iv) 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; (v) 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; (vi) the ability to generate sufficient cash flows to service our outstanding indebtedness; (vii) access to debt and equity capital markets; (viii) fluctuating interest rates; (ix) the ability to retain our key management personnel; (x) the ability to maintain our status as a real estate investment trust (“REIT”); (xi) changes in the U.S. tax law and other state, federal or local laws, whether or not specific to REITs; (xii) other risks inherent in the real estate business, including potential liability relating to environmental matters and illiquidity of real estate investments; and (xiii) additional factors included in our Annual Report on Form 10-K for the year ended December 31, 2020, including in the section entitled “Risk Factors” in Item 1A of Part I of such report, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the SEC.
This press release and the related conference call provides information about the Company's financial results as of and for the quarter and year ended December 31, 2020 and is provided as of the date hereof, unless specifically stated otherwise. The Company expressly disclaims any obligation to update or revise any information in this press release or the related conference call (and replays thereof), including forward-looking statements, whether to reflect any change in the Company’s expectations, any change in events, conditions or circumstances, or otherwise.
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 CareTrust REIT, Inc. and its consolidated subsidiaries. GAAP refers to generally accepted accounting principles in the United States of America.
Contact:
CareTrust REIT, Inc.
(949) 542-3130
ir@caretrustreit.com





CARETRUST REIT, INC.
CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share data)
 (Unaudited)
For the Three Months Ended December 31,For the Twelve Months Ended December 31,
2020201920202019
Revenues:
Rental income$43,605 $41,620 $173,612 $155,667 
Independent living facilities203 713 2,077 3,389 
Interest and other income329 1,895 2,643 4,345 
Total revenues44,137 44,228 178,332 163,401 
Expenses:
Depreciation and amortization13,275 13,063 52,760 51,822 
Interest expense5,579 6,916 23,661 28,125 
Property taxes657 741 2,836 3,048 
Independent living facilities 209 666 1,869 2,898 
Impairment of real estate investments— — — 16,692 
Provision for loan losses— — — 1,076 
General and administrative3,381 3,740 16,302 15,158 
Total expenses23,101 25,126 97,428 118,819 
Other income (loss):
Gain (loss) on sale of real estate19 1,560 (37)1,777 
Net income$21,055 $20,662 $80,867 $46,359 
Earnings per common share:
Basic$0.22 $0.22 $0.85 $0.49 
Diluted$0.22 $0.22 $0.85 $0.49 
Weighted-average number of common shares:
Basic95,215 95,103 95,200 93,088 
Diluted95,244 95,144 95,207 93,098 
Dividends declared per common share$0.25 $0.225 $1.00 $0.90 






CARETRUST REIT, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
(in thousands)
 (Unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2020201920202019
Net income$21,055 $20,662 $80,867 $46,359 
Depreciation and amortization13,275 13,063 52,760 51,822 
Interest expense5,579 6,916 23,661 28,125 
Amortization of stock-based compensation971 982 3,790 4,104 
EBITDA40,880 41,623 161,078 130,410 
Impairment of real estate investments— — — 16,692 
Provision for loan losses— — — 1,076 
Provision for doubtful accounts and lease restructuring— 464 — 12,935 
Recovery of previously reversed rent— — (1,047)— 
Lease termination revenue(73)— (1,179)— 
Property operating expenses— (84)(248)134 
(Gain) loss on sale of real estate(19)(1,560)37 (1,777)
Normalized EBITDA$40,788 $40,443 $158,641 $159,470 
Net income$21,055 $20,662 $80,867 $46,359 
Real estate related depreciation and amortization13,268 13,046 52,713 51,755 
Impairment of real estate investments— — — 16,692 
(Gain) loss on sale of real estate(19)(1,560)37 (1,777)
Funds from Operations (FFO)34,304 32,148 133,617 113,029 
Provision for loan losses— — — 1,076 
Provision for doubtful accounts and lease restructuring— 464 — 12,935 
Recovery of previously reversed rent— — (1,047)— 
Lease termination revenue(73)— (1,179)— 
Property operating expenses— (84)(248)134 
Normalized FFO$34,231 $32,528 $131,143 $127,174 





CARETRUST REIT, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES (continued)
 (in thousands, except per share data)
 (Unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2020201920202019
Net income$21,055 $20,662 $80,867 $46,359 
Real estate related depreciation and amortization13,268 13,046 52,713 51,755 
Amortization of deferred financing fees488 487 1,950 2,003 
Amortization of stock-based compensation971 982 3,790 4,104 
Straight-line rental income(12)98 (77)(1,385)
Impairment of real estate investments— — — 16,692 
(Gain) loss on sale of real estate(19)(1,560)37 (1,777)
Funds Available for Distribution (FAD)35,751 33,715 139,280 117,751 
Provision for loan losses— — — 1,076 
Provision for doubtful accounts and lease restructuring— 464 — 12,935 
Recovery of previously reversed rent— — (1,047)— 
Lease termination revenue(73)— (1,179)— 
Property operating expenses— (84)(248)134 
Normalized FAD$35,678 $34,095 $136,806 $131,896 
FFO per share$0.36 $0.34 $1.40 $1.21 
Normalized FFO per share$0.36 $0.34 $1.38 $1.36 
FAD per share$0.37 $0.35 $1.46 $1.26 
Normalized FAD per share$0.37 $0.36 $1.43 $1.41 
Diluted weighted average shares outstanding [1]95,429 95,340 95,346 93,328 
 [1] For the periods presented, the diluted weighted average shares have been calculated using the treasury stock method.





CARETRUST REIT, INC.
CONSOLIDATED INCOME STATEMENTS - 5 QUARTER TREND
(in thousands, except per share data)
 (Unaudited)
QuarterQuarterQuarterQuarterQuarter
EndedEndedEndedEndedEnded
December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Revenues:
Rental income$41,620 $42,464 $42,507 $45,036 $43,605 
Independent living facilities713 625 615 634 203 
Interest and other income1,895 1,251 1,046 17 329 
Total revenues44,228 44,340 44,168 45,687 44,137 
Expenses:
Depreciation and amortization13,063 13,160 13,239 13,086 13,275 
Interest expense6,916 6,714 5,849 5,519 5,579 
Property taxes741 485 837 857 657 
Independent living facilities666 546 546 568 209 
General and administrative3,740 4,054 4,762 4,105 3,381 
Total expenses25,126 24,959 25,233 24,135 23,101 
Other income (loss):
Gain (loss) on sale of real estate1,560 (56)— — 19 
Net income$20,662 $19,325 $18,935 $21,552 $21,055 
Diluted earnings per share$0.22 $0.20 $0.20 $0.23 $0.22 
Diluted weighted average shares outstanding95,144 95,161 95,208 95,214 95,244 






CARETRUST REIT, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES - 5 QUARTER TREND
(in thousands)
 (Unaudited)
QuarterQuarterQuarterQuarterQuarter
EndedEndedEndedEndedEnded
December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Net income$20,662 $19,325 $18,935 $21,552 $21,055 
Depreciation and amortization13,063 13,160 13,239 13,086 13,275 
Interest expense6,916 6,714 5,849 5,519 5,579 
Amortization of stock-based compensation982 884 963 972 971 
EBITDA41,623 40,083 38,986 41,129 40,880 
Provision for doubtful accounts and lease restructuring464 — — — — 
Recovery of previously reversed rent— — — (1,047)— 
Lease termination revenue— — — (1,106)(73)
Property operating expenses(84)(217)(31)— — 
(Gain) loss on sale of real estate(1,560)56 — — (19)
Normalized EBITDA$40,443 $39,922 $38,955 $38,976 $40,788 
Net income$20,662 $19,325 $18,935 $21,552 $21,055 
Real estate related depreciation and amortization13,046 13,144 13,223 13,078 13,268 
(Gain) loss on sale of real estate(1,560)56 — — (19)
Funds from Operations (FFO)32,148 32,525 32,158 34,630 34,304 
Provision for doubtful accounts and lease restructuring464 — — — — 
Recovery of previously reversed rent— — — (1,047)— 
Lease termination revenue— — — (1,106)(73)
Property operating expenses(84)(217)(31)— — 
Normalized FFO$32,528 $32,308 $32,127 $32,477 $34,231 






CARETRUST REIT, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES - 5 QUARTER TREND (continued)
 (in thousands, except per share data)
 (Unaudited)
QuarterQuarterQuarterQuarterQuarter
EndedEndedEndedEndedEnded
December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Net income$20,662 $19,325 $18,935 $21,552 $21,055 
Real estate related depreciation and amortization13,046 13,144 13,223 13,078 13,268 
Amortization of deferred financing fees487 487 488 487 488 
Amortization of stock-based compensation982 884 963 972 971 
Straight-line rental income98 (26)(22)(17)(12)
(Gain) loss on sale of real estate(1,560)56 — — (19)
Funds Available for Distribution (FAD)33,715 33,870 33,587 36,072 35,751 
Provision for doubtful accounts and lease restructuring464 — — — — 
Recovery of previously reversed rent— — — (1,047)— 
Lease termination revenue— — — (1,106)(73)
Property operating expenses(84)(217)(31)— — 
Normalized FAD$34,095 $33,653 $33,556 $33,919 $35,678 
FFO per share$0.34 $0.34 $0.34 $0.36 $0.36 
Normalized FFO per share$0.34 $0.34 $0.34 $0.34 $0.36 
FAD per share$0.35 $0.36 $0.35 $0.38 $0.37 
Normalized FAD per share$0.36 $0.35 $0.35 $0.36 $0.37 
Diluted weighted average shares outstanding [1]95,340 95,306 95,295 95,353 95,429 
 [1] For the periods presented, the diluted weighted average shares have been calculated using the treasury stock method.









CARETRUST REIT, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
December 31, 2020December 31, 2019
Assets:
Real estate investments, net$1,448,099 $1,414,200 
Other real estate investments, net15,000 33,300 
Assets held for sale, net7,226 34,590 
Cash and cash equivalents18,919 20,327 
Accounts and other receivables, net1,823 2,571 
Prepaid expenses and other assets, net10,450 10,850 
Deferred financing costs, net2,042 3,023 
Total assets$1,503,559 $1,518,861 
Liabilities and Equity:
Senior unsecured notes payable, net$296,669 $295,911 
Senior unsecured term loan, net198,925 198,713 
Unsecured revolving credit facility50,000 60,000 
Accounts payable and accrued liabilities19,572 14,962 
Dividends payable24,251 21,684 
Total liabilities589,417 591,270 
Equity:
Common stock952 951 
Additional paid-in capital1,164,402 1,162,990 
Cumulative distributions in excess of earnings(251,212)(236,350)
Total equity914,142 927,591 
Total liabilities and equity$1,503,559 $1,518,861 







CARETRUST REIT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
For the Twelve Months Ended December 31,
20202019
Cash flows from operating activities:
Net income$80,867 $46,359 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including below-market ground leases)52,819 51,866 
Amortization of deferred financing costs1,950 2,003 
Amortization of stock-based compensation3,790 4,104 
Straight-line rental income(77)(1,385)
Adjustment for collectibility of rental income— 11,774 
Noncash interest income— (797)
Loss (gain) on sale of real estate37 (1,777)
Interest income distribution from other real estate investment1,346 463 
Impairment of real estate investments— 16,692 
Provision for loan losses— 1,076 
Change in operating assets and liabilities:
Accounts and other receivables, net825 (6,283)
Prepaid expenses and other assets, net387 (495)
Accounts payable and accrued liabilities3,791 2,695 
Net cash provided by operating activities145,735 126,295 
Cash flows from investing activities:
Acquisitions of real estate, net of deposits applied(89,650)(321,458)
Purchases of, and improvements to, equipment, furniture and fixtures and real estate(8,297)(6,289)
Investment in real estate mortgage and other loans receivable(30,498)(18,246)
Principal payments received on real estate mortgage and other loans receivable 80,928 24,283 
Repayment of other real estate investment2,327 2,204 
Escrow deposits for potential acquisitions of real estate(3,000)— 
Net proceeds from sales of real estate6,608 3,499 
Net cash used in investing activities(41,582)(316,007)
Cash flows from financing activities:
Proceeds from (costs paid for) the issuance of common stock, net(404)195,924 
Proceeds from the issuance of senior unsecured term loan— 200,000 
Borrowings under unsecured revolving credit facility65,000 243,000 
Payments on unsecured revolving credit facility(75,000)(278,000)
Payments on senior unsecured term loan— (100,000)
Payments of deferred financing costs— (4,534)
Net-settle adjustment on restricted stock(1,996)(2,524)
Dividends paid on common stock(93,161)(80,619)
Net cash (used in) provided by financing activities(105,561)173,247 
Net decrease in cash and cash equivalents(1,408)(16,465)
Cash and cash equivalents, beginning of period20,327 36,792 
Cash and cash equivalents, end of period$18,919 $20,327 





CARETRUST REIT, INC.
DEBT SUMMARY
(dollars in thousands)
 (Unaudited)
December 31, 2020
InterestMaturity% ofDeferredNet Carrying
DebtRateDatePrincipalPrincipalLoan CostsValue
Fixed Rate Debt
Senior unsecured notes payable5.250 %2025$300,000 54.5 %$(3,331)$296,669 
Floating Rate Debt
Senior unsecured term loan1.647 %[1]2026200,000 36.4 %(1,075)198,925 
Unsecured revolving credit facility1.250 %[2]2024[3]50,000 9.1 %— [4]50,000 
1.568 %250,000 45.5 %(1,075)248,925 
Total Debt3.576 %$550,000 100.0 %$(4,406)$545,594 
[1] Funds can be borrowed at applicable LIBOR 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 LIBOR plus 1.10% to 1.55% or the Base Rate (as defined) plus 0.10% to 0.55%.
[3] Maturity date assumes 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.







CARETRUST REIT, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
 (shares in thousands)
 (Unaudited)
2021 Guidance
Full Year 2021 Guidance[1]
LowHigh
Net income$0.84 $0.86 
Real estate related depreciation and amortization0.56 0.56 
(Gain) loss on sale of real estate— — 
Funds from Operations (FFO)1.40 1.42 
Normalized FFO$1.40 $1.42 
Net income$0.84 $0.86 
Real estate related depreciation and amortization0.56 0.56 
Amortization of deferred financing fees0.02 0.02 
Amortization of stock-based compensation0.07 0.07 
Straight-line rental income— — 
(Gain) loss on sale of real estate— — 
Funds Available for Distribution (FAD)1.49 1.51 
Normalized FAD$1.49 $1.51 
Weighted average shares outstanding:
Diluted95,557 95,557 
[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, and (iv) estimated 1.25% CPI-based rent escalators under CareTrust's long-term net leases. It does not contemplate future negative impacts, if any, that are related to the COVID-19 pandemic, which are highly uncertain and cannot be predicted at this time.






Non-GAAP Financial Measures
EBITDA represents net income before interest expense (including amortization of deferred financing costs), amortization of stock-based compensation, and depreciation and amortization. Normalized EBITDA represents EBITDA as further adjusted to eliminate the impact of certain items that the Company does not consider indicative of core operating performance, such as real estate impairment charges, provision for loan losses, provision for doubtful accounts and lease restructuring, recovery of previously reversed rent, lease termination revenue, property operating expenses and gains or losses from dispositions of real estate. EBITDA and Normalized EBITDA 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. EBITDA and Normalized EBITDA do not purport to be indicative of cash available to fund future cash requirements, including the Company’s ability to fund capital expenditures or make payments on its indebtedness. Further, the Company’s computation of EBITDA and Normalized EBITDA may not be comparable to EBITDA and Normalized EBITDA reported by other REITs.
Funds from Operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts (“Nareit”), and Funds Available for Distribution (“FAD”) are important non-GAAP supplemental measures of operating performance for a REIT. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation except on land, such accounting presentation implies that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a REIT that uses historical cost accounting for depreciation could be less informative. Thus, Nareit created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation and amortization, among other items, from net income, as defined by GAAP.
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 depreciation and amortization and real estate impairment charges, and adjustments for unconsolidated partnerships and joint ventures. The Company computes FFO in accordance with Nareit’s definition.
FAD is defined as FFO excluding noncash income and expenses, such as amortization of stock-based compensation, amortization of deferred financing fees and the effects of straight-line rent. The Company considers FAD to be a useful supplemental measure to evaluate the Company’s operating results excluding these income and expense items to help investors, analysts and other interested parties compare the operating performance of the Company between periods or as compared to other companies on a more consistent basis.
In addition, the Company reports Normalized FFO and Normalized FAD, which adjust FFO and FAD for certain revenue and expense items that the Company does not believe are indicative of its ongoing operating results, such as provision for loan losses, provision for doubtful accounts and lease restructuring, recovery of previously reversed rent, lease termination revenue and property operating expenses. By excluding these items, investors, analysts and our management can compare Normalized FFO and Normalized FAD between periods more consistently.
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 believes that net income, as defined by GAAP, is the most appropriate earnings measure. The Company also believes that the use of EBITDA, Normalized EBITDA, FFO, Normalized FFO, FAD and Normalized FAD, combined with the required GAAP presentations, improves the understanding of operating results of REITs among investors and makes comparisons of operating results among such companies more meaningful. The Company considers EBITDA and Normalized EBITDA useful in understanding the Company’s operating results independent of its capital structure, indebtedness and other charges that are not indicative of its ongoing results, thereby allowing for a more meaningful comparison of operating performance between periods and against other REITs. The Company considers FFO, Normalized FFO, FAD and Normalized FAD to be useful measures for reviewing comparative operating and financial performance because, by excluding gains or losses from real estate dispositions, impairment charges and real estate depreciation and amortization, and, for FAD and Normalized FAD, by excluding noncash income and expenses such as amortization of stock-based compensation, amortization of deferred financing fees, and the effects of straight-line rent, FFO, Normalized FFO, FAD and Normalized FAD can help investors compare the Company’s operating performance between periods and to other REITs.

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exhibit992-ctreq420inanc
EXHIBIT 99.2EXHIBIT 99.2EXHIBIT 99. Downey Care Center (Downey, CA) EXHIBIT 99.2EXHIBIT 9.2 Broadmo r Medical Lodge (Rockwall, TX) EXHIBIT 99.2


 
2 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, including, but not limited to, statements regarding future financial and financing positions, business and acquisition strategies, growth prospects, operating and financial performance, expectations regarding the making of distributions, payment of dividends, compliance with and changes in governmental regulations, and the performance of our 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. Our forward-looking statements are based on our 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 we believe that the assumptions underlying these forward-looking statements are reasonable, they are not guarantees and we can give no assurance that our expectations will be attained. Factors which could have a material adverse effect on our operations and future prospects or which could cause actual results to differ materially from expectations include, but are not limited to: (i) the COVID-19 pandemic and the measures taken to prevent its spread and the related impact on our business or the businesses of our tenants; (ii) 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; (iii) the ability of our tenants to comply with applicable laws, rules and regulations in the operation of the properties we lease to them; (iv) 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; (v) 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; (vi) the ability to generate sufficient cash flows to service our outstanding indebtedness; (vii) access to debt and equity capital markets; (viii) fluctuating interest rates; (ix) the ability to retain our key management personnel; (x) the ability to maintain our status as a real estate investment trust (“REIT”); (xi) changes in the U.S. tax law and other state, federal or local laws, whether or not specific to REITs; (xii) other risks inherent in the real estate business, including potential liability relating to environmental matters and illiquidity of real estate investments; and (xiii) any additional factors included in our Annual Report on Form 10-K for the year ended December 31, 2020, including in the section entitled “Risk Factors” in Item 1A of Part I of such report, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the Securities and Exchange Commission (the "SEC"). This supplement contains certain non-GAAP financial information relating to CareTrust REIT including EBITDA, Normalized EBITDA, FFO, Normalized FFO, FAD, Normalized FAD, and certain related ratios. Explanatory footnotes and a glossary explaining this non-GAAP information are included in this supplement. Reconciliations of these non-GAAP measures are also included in this supplement. Other financial information, including GAAP financial information, is also available on our website. Non-GAAP financial information does not represent financial performance under GAAP and should not be considered in isolation, as a measure of liquidity, as an alternative to net income, or as an indicator of any other performance measure determined in accordance with GAAP. You should not rely on non-GAAP financial information as a substitute for GAAP financial information, and should recognize that non-GAAP information presented herein may not compare to similarly-termed non-GAAP information of other companies (i.e., because they do not use the same definitions for determining any such non-GAAP information). This supplement also includes certain information regarding operators of our properties (such as EBITDARM Coverage, EBITDAR Coverage, and Occupancy), most of which are not subject to audit or SEC reporting requirements. The operator information provided in this supplement has been provided by the operators. We have not independently verified this information, but have no reason to believe that such information is inaccurate in any material respect. We are providing this information for informational purposes only. The Ensign Group, Inc. ("Ensign") and The Pennant Group, Inc. ("Pennant") are subject to the registration and reporting requirements of the SEC and are required to file with the SEC annual reports containing audited financial information and quarterly reports containing unaudited financial information. Ensign’s and Pennant's financial statements, as filed with the SEC, can be found at the SEC's website at www.sec.gov. This supplement provides information about our financial results as of and for the quarter and year ended December 31, 2020 and is provided as of the date hereof, unless specifically stated otherwise. We expressly disclaim any obligation to update or revise any information in this supplement (including forward-looking statements), whether to reflect any change in our expectations, any change in events, conditions or circumstances, or otherwise. As used in this supplement, unless the context requires otherwise, references to “CTRE,” “CareTrust,” “CareTrust REIT” or the “Company” refer to CareTrust REIT, Inc. and its consolidated subsidiaries. GAAP refers to generally accepted accounting principles in the United States of America. 2


 
3 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 properties. CareTrust REIT generates revenues primarily by leasing properties to a diverse group of local, regional and national seniors housing operators, healthcare services providers, and other healthcare-related businesses. Since its debut as a standalone public company on June 1, 2014, and as of February 10, 2021, CareTrust REIT has expanded its tenant roster to 22 operators, and has grown its real estate portfolio to 217 net-leased healthcare properties across 28 states, consisting of 22,376 operating beds/units. Management Greg Stapley Chairman and Chief Executive Officer Bill Wagner Chief Financial Officer Dave Sedgwick President and Chief Operating Officer Mark Lamb Chief Investment Officer Contact Information CareTrust REIT, Inc. 905 Calle Amanecer, Suite 300 San Clemente, CA 92673 (949) 542-3130 | ir@caretrustreit.com www.caretrustreit.com Transfer Agent Broadridge Corporate Issuer Solutions P.O. Box 1342 Brentwood, NY 11717 (800) 733-1121 | shareholder@broadridge.com Board of Directors KeyBanc Capital Markets Jordan Sadler | (917) 318-2280 Raymond James Jonathan Hughes | (727) 567-2438 Wells Fargo Securities Todd Stender | (562) 637-1371 RBC Capital Markets Michael Carroll | (440) 715-2649 Mizuho Financial Group Omotayo Okusanya | (646) 949-9672 BMO Capital Markets John Kim | (212) 885-4115 CapitalOne Securities Dan Bernstein | (571) 835-7202 Barclays Steve Valiquette | (212) 526-5496 Berenberg Connor Siversky | (646) 949-9037 Analyst Coverage Greg Stapley Chairman Diana Laing Jon Kline Allen Barbieri Spencer Plumb Company Profile 3 CareTrust at a Glance 4 Investments 5 Portfolio Overview Top 10 Tenants Lease Coverage 6 Portfolio Performance 7 Rent Diversification by Tenant 8 Geographic Diversification 9 Rent Diversification by State 10 Lease Maturities 11 Tenant Purchase Options 12 Financial Overview Consolidated Income Statements 14 Reconciliation of EBITDA, FFO and FAD 15 Consolidated Balance Sheets 17 Key Debt Metrics 18 Debt Summary 19 2021 Guidance 20 Equity Capital Transactions 21 Other Financial Highlights 22 Glossary 24


 
4 Note: Amounts are as of December 31, 2020 and exclude our one mezzanine loan receivable. Additionally, excludes one property held for sale as of December 31, 2020 that was sold in February 2021. Credit Ratings S&P Corporate Rating: B+ (positive) Senior Unsecured Notes: BB- Moody’s Corporate Rating: B1 (positive) Senior Unsecured Notes: B1 22,376 Operating Beds/Units 217 Properties 22 Operators 28 States $1,786.7 M Investments CareTrust REIT, Inc. Nasdaq: CTRE Market Data (as of December 31, 2020) Closing Price: $22.18 52 Week Range: $23.83– $7.16 Market Cap: $2,123M Enterprise Value: $2,654M Outstanding Shares: 95.7M Credit Ratings S&P Corp rate Rating: BB- ( table) Senior Unsecured Notes: BB Moody’s Corp rate Rating: Ba2 (negative) Senior Unsecured Notes: Ba2 4


 
5 Investments Notes: [1] Initial Investment for pre-spin properties represents Ensign's and Pennant's gross book value. Initial Investment for post-spin properties represents CareTrust REIT’s purchase price and transaction costs. [2] Initial Operating Beds/Units as of the acquisition date. [3] Initial Rent represents the annualized acquisition-date cash rent, deferred interest income on any preferred equity investments and interest income on any mezzanine loans. Initial Rent excludes ground lease income. [4] Initial Yield represents Initial Rent divided by Initial Investment. [5] All amounts, except as otherwise indicated, include any preferred equity investments, mortgage loans receivable and mezzanine loans receivable. (dollars in thousands)Date Operator Property Type Location Facilities Initial Investment[1] Initial Operating 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 % 2015 Investments 20 233,028 1,840 22,263 9.6 % 2016 Investments 35 288,023 2,800 26,084 9.1 % 2017 Investments 36 309,805 3,324 28,000 9.0 % 2018 Investments 12 111,950 1,103 9,955 8.9 % 2019 Investments 27 340,884 3,348 30,168 8.8 % 01/17/2020 Cascadia Healthcare SNF ID 1 18,675 99 1,669 8.9 % 02/12/2020 Bayshire, LLC ALF UT 1 7,396 62 590 8.0 % 09/01/2020 Eduro Healthcare, LLC SNF MT 2 16,620 150 1,550 9.3 % 11/17/2020 The Ensign Group 3 SNF, 1 Campus TX 4 47,576 650 3,789 8.0 % 11/30/2020 Next Healthcare Mezzanine Loan VA 9 15,000 N/A 1,800 12.0 % 2020 Investments 17 105,267 961 9,398 8.9 % Total Post Spin-off Investments[5] 153 1,422,566 13,533 128,944 9.1 % Total Investments[5] 247 $ 1,924,239 23,586 $ 184,944


 
6 Top 10 Tenants Lease Coverage Twelve Months Ended March 31, 2020 Six Months Ended September 30, 2020 Twelve Months Ended September 30, 2020 Six Months Ended September 30, 2020 Twelve Months Ended September 30, 2020 Pre COVID-19 Excludes Use of HHS Funds[3] Includes Amortized HHS Funds[4] EBITDAR Coverage[1] EBITDARM Coverage[1] EBITDAR Coverage[1] EBITDARM Coverage[1] EBITDAR Coverage[1] EBITDARM Coverage[1] EBITDAR Coverage[1] EBITDARM Coverage[1] EBITDAR Coverage[1] EBITDARM Coverage[1] 1 The Ensign Group[2] 3.03x 3.81x 3.72x 4.54x 3.49x 4.30x 3.72x 4.54x 3.49x 4.30x 2 Priority Management Group 1.50x 1.81x 1.65x 1.98x 1.62x 1.95x 1.99x 2.37x 1.79x 2.14x 3 Cascadia Healthcare 1.59x 2.07x 1.07x 1.52x 1.30x 1.76x 1.59x 2.07x 1.57x 2.05x 4 Providence Group 1.03x 1.45x 1.03x 1.51x 0.98x 1.44x 1.46x 1.98x 1.19x 1.67x 5 Eduro Healthcare, LLC 1.19x 1.66x 1.52x 2.00x 1.39x 1.88x 1.89x 2.40x 1.59x 2.08x 6 The Pennant Group[2] 1.33x 1.55x 1.22x 1.44x 1.28x 1.51x 1.22x 1.44x 1.28x 1.51x 7 Covenant Care 1.50x 2.07x 1.34x 1.90x 1.45x 2.01x 1.87x 2.42x 1.71x 2.28x 8 Noble Senior Services[2] 0.87x 1.14x 0.90x 1.18x 0.88x 1.16x 0.90x 1.18x 0.88x 1.16x 9 Premier Senior Living[2] 0.68x 0.82x 0.68x 0.81x 0.62x 0.75x 0.68x 0.81x 0.62x 0.75x 10 WLC Management 2.15x 2.59x 2.23x 2.69x 2.11x 2.56x 2.95x 3.43x 2.47x 2.93x Total Top 10 Tenants 2.04x 2.57x 2.27x 2.82x 2.19x 2.74x 2.48x 3.04x 2.30x 2.85x All Other Tenants 1.06x 1.53x 0.98x 1.45x 1.06x 1.53x 1.50x 2.00x 1.33x 1.81x Total 1.90x 2.42x 2.07x 2.60x 2.02x 2.55x 2.33x 2.88x 2.15x 2.69x Notes: [1] EBITDAR Coverage and EBITDARM Coverage are based on financial information provided by our tenants. We have not independently verified this information, but have no reason to believe that such information is inaccurate in any material respect. Coverage metrics are based on contractual cash rents in place during the period presented unless a lease has been entered into or amended since the end of the period, in which case the current contractual rent is used. EBITDAR reflects the application of a standard 5% management fee. All amounts exclude our one operated seniors housing property owned as of September 30, 2020. [2] Ensign and Pennant have announced that they have returned, and/or intend to return, all provider relief funds issued to them by the U.S. Department of Health and Human Services ("HHS") pursuant to the CARES Act in connection with the COVID-19 pandemenic ("HHS Relief Funds"). Noble and Premier, seniors housing operators, received no HHS Relief Funds to date. [3] Coverage metrics in this section exclude all HHS Relief Funds received and retained to date, if any. [4] Coverage metrics in this section include all known HHS Relief Funds received and retained as of February 1, 2021, if any, and amortizes the retained HHS Relief Funds ratably over the 15- month period (April 2020 - June 2021) coinciding with HHS' currently-stated deadline of June 30, 2021 for using the HHS Relief Funds for allowable purposes. The calculations further assume that (i) none of the HHS Relief Funds retained to date will be returned to HHS, and (ii) no additional HHS Relief Funds will be distributed to providers in the future. See "Glossary" for additional information.


 
Portfolio Performance (dollars in thousands) As of December 31, 2020 Asset Type Facilities Operating Beds/Units Investment [1] % of Total Investment Rent [2] % of Total Rent Current Yield [3] Skilled Nursing 156 16,148 $1,292,812 72.4% $127,305 73.4% 9.8% Multi-Service Campus 20 2,923 248,740 13.9% 21,200 12.2% 8.5% Seniors Housing 41 3,305 245,118 13.7% 24,926 14.4% 10.2% Total Net-Leased Assets [4] 217 22,376 $1,786,670 100.0% $173,431 100.0% 9.7% Notes: [1] Investment for pre-spin properties represents Ensign's and Pennant's gross book value. Investment for post-spin properties represents CareTrust REIT’s cumulative capital investment. Capital investment includes purchase price, transaction costs and landlord-funded capital expenditures, if any. [2] Rent represents December 2020 rent, annualized, or based on the initial cash rents annualized, and excludes ground lease income. Additionally, if a lease was entered into, amended or restructured subsequent to December 31, 2020, the new contractual cash rent is used. [3] Current Yield represents Rent divided by Investment. [4] All amounts exclude our one mezzanine loan receivable and one property classified as held for sale as of December 31, 2020 that was sold in February 2021. [5] Rent represents September 2020 rent, annualized, or based on the initial cash rents annualized, and excludes ground lease income. Additionally, if a lease was entered into, amended or restructured subsequent to September 30, 2020, the new contractual cash rent is used. [6] All amounts exclude our one operated seniors housing property. The independent living facility was sold to a third party on November 1, 2020. [7] Rent represents December 2019 rent, annualized, or based on the initial cash rents annualized, and excludes ground lease income. Additionally, if a lease was entered into, amended or restructured subsequent to December 31, 2019, the new contractual cash rent is used. [8] All amounts exclude our one operated seniors housing property, one preferred equity investment and two mortgage loans receivable. Additionally, amounts exclude properties classified as held for sale as of December 31, 2019. See “Glossary” for additional information. 7 (dollars in thousands) As of September 30, 2020 Asset Type Facilities Operating Beds/Units Investment [1] % of Total Investment Rent [5] % of Total Rent Current Yield [3] Skilled Nursing 154 15,733 $1,259,279 72.2% $123,897 73.0% 9.8% Multi-Service Campus 19 2,741 241,363 13.8% 20,482 12.1% 8.5% Seniors Housing 41 3,305 243,757 14.0% 25,352 14.9% 10.4% Total Net-Leased Assets [6] 214 21,779 $1,744,399 100.0% $169,731 100.0% 9.7% (dollars in thousands) As of December 31, 2019 Asset Type Facilities Operating Beds/Units Investment [1] % of Total Investment Rent [7] % of Total Rent Current Yield [3] Skilled Nursing 152 15,782 $1,218,374 72.1% $118,644 72.7% 9.7% Multi-Service Campus 18 2,460 237,191 14.0% 19,992 12.3% 8.4% Seniors Housing 40 3,241 235,335 13.9% 24,517 15.0% 10.4% Total Net-Leased Assets [8] 210 21,483 $1,690,900 100.0% $163,153 100.0% 9.6%


 
8 Rent Diversification by Tenant Notes: [1] All amounts exclude our one mezzanine loan receivable and one property classified as held for sale as of December 31, 2020 that was sold in February 2021. [2] Investment for pre-spin properties represents Ensign's and Pennant's gross book value. Investment for post-spin properties represents CareTrust REIT’s cumulative capital investment. Capital investment includes purchase price, transaction costs and landlord-funded capital expenditures, if any. [3] Rent represents December 2020 rent, annualized, or based on the initial cash rents annualized and excludes ground lease income. Additionally, if a lease was entered into, amended or restructured subsequent to December 31, 2020, the new contractual cash rent is used. (dollars in thousands) As of December 31, 2020[1] Facilities Operating Beds/Units Investment[2] % of Total Investment Rent[3] % of Total Rent 1 The Ensign Group 89 9,546 $ 498,702 27.9 % $ 57,195 33.0 % 2 Priority Management Group 15 2,145 300,004 16.8 % 27,925 16.1 % 3 Cascadia Healthcare 13 1,112 122,765 6.9 % 11,608 6.7 % 4 Providence Group 8 1,067 127,759 7.2 % 10,166 5.9 % 5 Eduro Healthcare, LLC 8 912 87,380 4.9 % 8,154 4.7 % Total Top 5 Tenants 133 14,782 $ 1,136,610 63.7 % $ 115,048 66.4 % 6 The Pennant Group 11 1,193 57,165 3.2 % 7,837 4.5 % 7 Covenant Care 6 790 69,828 3.9 % 6,719 3.9 % 8 Noble Senior Services 12 1,075 46,181 2.6 % 6,439 3.7 % 9 Premier Senior Living 8 385 68,573 3.8 % 6,382 3.7 % 10 WLC Management 8 772 46,363 2.6 % 4,833 2.8 % Total Top 10 Tenants 178 18,997 $ 1,424,720 79.8 % $ 147,258 85.0 % All Other Tenants 39 3,379 $ 361,950 20.2 % $ 26,173 15.0 % Total 217 22,376 $ 1,786,670 100.0 % $ 173,431 100.0 %


 
TX 23.3% CA 17.7% ID 6.5% AZ 6.0% LA 5.2% Others 41.3% 9 1 SNF 1 ALF 1 ALF Top Five States TX 21.0% CA 20.7% LA 9.4% ID 7.9% AZ 7.2% Others 33.8% TX 20.3% CA 18.3% LA 10.0% ID 7.7% AZ 3.4% Others 40.3% R u n -R at e R en t In ve st m en t B ed s/ U n it s


 
10 Rent Diversification by State Notes: [1] All amounts exclude our one mezzanine loan receivable and one property held for sale as of December 31, 2020 that was sold in February 2021. [2] Investment for pre-spin properties represents Ensign's and Pennant's gross book value. Investment for post-spin properties represents CareTrust REIT’s cumulative capital investment. Capital investment includes purchase price, transaction costs and landlord-funded capital expenditures, if any. [3] Rent represents December 2020 rent, annualized, or based on the initial cash rents annualized and excludes ground lease income. Additionally, if a lease was entered into, amended or restructured subsequent to December 31, 2020, the new contractual cash rent is used. (dollars in thousands) As of December 31, 2020[1] Net-Leased Assets by State Facilities Operating Beds/Units Investment[2] % of Total Investment Rent[3] % of Total Rent 1 Texas 41 5,207 $ 363,317 20.3 % $ 36,436 21.0 % 2 California 34 3,965 326,937 18.3 % 35,902 20.7 % 3 Louisiana 8 1,164 178,407 10.0 % 16,233 9.4 % 4 Idaho 17 1,457 138,089 7.7 % 13,658 7.9 % 5 Arizona 11 1,352 60,753 3.4 % 12,470 7.2 % Top 5 States 111 13,145 $ 1,067,503 59.7 % $ 114,699 66.2 % 6 Ohio 13 1,284 156,408 8.8 % 8,095 4.7 % 7 Utah 13 1,392 85,071 4.8 % 7,342 4.2 % 8 Colorado 7 785 60,435 3.4 % 5,568 3.2 % 9 Washington 11 992 54,218 3.0 % 4,929 2.8 % 10 Iowa 15 984 53,488 3.0 % 4,864 2.8 % Top 10 States 170 18,582 $ 1,477,123 82.7 % $ 145,497 83.9 % All Other States 47 3,794 $ 309,547 17.3 % $ 27,934 16.1 % Total 217 22,376 $ 1,786,670 100.0 % $ 173,431 100.0 %


 
11 Lease Maturities Lease Maturity Year % o f R en t Notes: [1] All amounts exclude our one mezzanine loan receivable and one property held for sale as of December 31, 2020 that was sold in February 2021. [2] Lease Maturity Year represents the scheduled expiration year of the primary term of the lease and does not include tenant extension options or purchase options, if any. [3] Investment for pre-spin properties represents Ensign's and Pennant's gross book value. Investment for post-spin properties represents CareTrust REIT’s cumulative capital investment. Capital investment includes purchase price, transaction costs and landlord-funded capital expenditures, if any. [4] Rent represents December 2020 rent, annualized, or based on the initial cash rents annualized and excludes ground lease income. Additionally, if a lease was entered into, amended or restructured subsequent to December 31, 2020, the new contractual cash rent is used. (dollars in thousands) As of December 31, 2020[1] Lease Maturity Year[2] Investment[3] % of Total Investment Rent[4] % of Total Rent 2026 58,157 3.3 % 5,241 3.0 % 2027 46,801 2.6 % 4,897 2.8 % 2028 68,193 3.8 % 7,573 4.4 % 2029 114,040 6.4 % 8,624 5.0 % 2030 207,160 11.6 % 18,925 10.9 % 2031 558,768 31.3 % 53,356 30.8 % 2032 200,931 11.2 % 19,495 11.2 % 2033 214,247 12.0 % 23,147 13.3 % 2034 318,373 17.8 % 32,173 18.6 % Total $ 1,786,670 100.0 % $ 173,431 100.0 % 3.0% 2.8% 4.4% 5.0% 10.9% 30.8% 11.2% 13.3% 18.6% 2026 2027 2028 2029 2030 2031 2032 2033 2034


 
Tenant Purchase Options (dollars in thousands) As of December 31, 2020[1] Asset Type Properties Lease Expiration 1st Option Open Year Option Type Current Cash Rent % of Total[1] ALF 7 October 2034 1/1/2021 A $ 3,207 1.85 % SNF 11 January 2031 1/1/2022 C $ 4,800 2.77 % SNF 1 March 2030 4/1/2022 B / C[2] $ 766 0.44 % SNF / Campus 2 October 2032 1/1/2023 B $ 959 0.55 % SNF 4 November 2034 12/1/2024 B $ 3,789 2.18 % ALF 2 October 2034 1/1/2026 A $ 1,559 0.90 % 8.69 % Option Type: A - Fixed base price plus a specified share on any appreciation B - Fixed base price C - Fixed capitalization rate on lease revenue Notes: [1] Based on annualized cash revenue for contracts in place at December 31, 2020 [2] Purchase option reflects two option types 12


 
13 Las Colinas (Ontario, CA)


 
14 Consolidated Income Statements (amounts in thousands, except per share data) Three Months Ended December 31, Twelve Months Ended December 31, 2020 2019 2020 2019 Revenues: Rental income $ 43,605 $ 41,620 $ 173,612 $ 155,667 Independent living facilities 203 713 2,077 3,389 Interest and other income 329 1,895 2,643 4,345 Total revenues 44,137 44,228 178,332 163,401 Expenses: Depreciation and amortization 13,275 13,063 52,760 51,822 Interest expense 5,579 6,916 23,661 28,125 Property taxes 657 741 2,836 3,048 Independent living facilities 209 666 1,869 2,898 Impairment of real estate investments — — — 16,692 Provision for loan losses — — — 1,076 General and administrative 3,381 3,740 16,302 15,158 Total expenses 23,101 25,126 97,428 118,819 Other (loss) income: Gain (loss) on sale of real estate 19 1,560 (37) 1,777 Net income $ 21,055 $ 20,662 $ 80,867 $ 46,359 Earnings per common share: Basic $ 0.22 $ 0.22 $ 0.85 $ 0.49 Diluted $ 0.22 $ 0.22 $ 0.85 $ 0.49 Weighted-average number of common shares: Basic 95,215 95,103 95,200 93,088 Diluted 95,244 95,144 95,207 93,098 Dividends declared per common share $ 0.25 $ 0.225 $ 1.00 $ 0.90


 
Reconciliation of EBITDA, FFO and FAD 15 (amounts in thousands, except per share data) Quarter Ended December 31, 2019 Quarter Ended March 31, 2020 Quarter Ended June 30, 2020 Quarter Ended September 30, 2020 Quarter Ended December 31, 2020 Net income $ 20,662 $ 19,325 $ 18,935 $ 21,552 $ 21,055 Depreciation and amortization 13,063 13,160 13,239 13,086 13,275 Interest expense 6,916 6,714 5,849 5,519 5,579 Amortization of stock-based compensation 982 884 963 972 971 EBITDA 41,623 40,083 38,986 41,129 40,880 Provision for doubtful accounts and lease restructuring 464 — — — — Recovery of previously reversed rent — — — (1,047) — Lease termination revenue — — — (1,106) (73) Property operating expenses (84) (217) (31) — — (Gain) loss on sale of real estate (1,560) 56 — — (19) Normalized EBITDA $ 40,443 $ 39,922 $ 38,955 $ 38,976 $ 40,788 Net income $ 20,662 $ 19,325 $ 18,935 $ 21,552 $ 21,055 Real estate related depreciation and amortization 13,046 13,144 13,223 13,078 13,268 (Gain) loss on sale of real estate (1,560) 56 — — (19) Funds from Operations (FFO) 32,148 32,525 32,158 34,630 34,304 Provision for doubtful accounts and lease restructuring 464 — — — — Recovery of previously reversed rent — — — (1,047) — Lease termination revenue — — — (1,106) (73) Property operating expenses (84) (217) (31) — — Normalized FFO $ 32,528 $ 32,308 $ 32,127 $ 32,477 $ 34,231 See Glossary for additional information.


 
Reconciliation of EBITDA, FFO and FAD 16 [1] For the periods presented, the diluted weighted average shares have been calculated using the treasury stock method. See Glossary for additional information. (amounts in thousands, except per share data) Quarter Ended December 31, 2019 Quarter Ended March 31, 2020 Quarter Ended June 30, 2020 Quarter Ended September 30, 2020 Quarter Ended December 31, 2020 Net income $ 20,662 $ 19,325 $ 18,935 $ 21,552 $ 21,055 Real estate related depreciation and amortization 13,046 13,144 13,223 13,078 13,268 Amortization of deferred financing fees 487 487 488 487 488 Amortization of stock-based compensation 982 884 963 972 971 Straight-line rental income 98 (26) (22) (17) (12) (Gain) loss on sale of real estate (1,560) 56 — — (19) Funds Available for Distribution (FAD) 33,715 33,870 33,587 36,072 35,751 Provision for doubtful accounts and lease restructuring 464 — — — — Recovery of previously reversed rent — — — (1,047) — Lease termination revenue — — — (1,106) (73) Property operating expenses (84) (217) (31) — — Normalized FAD $ 34,095 $ 33,653 $ 33,556 $ 33,919 $ 35,678 FFO per share $ 0.34 $ 0.34 $ 0.34 $ 0.36 $ 0.36 Normalized FFO per share $ 0.34 $ 0.34 $ 0.34 $ 0.34 $ 0.36 FAD per share $ 0.35 $ 0.36 $ 0.35 $ 0.38 $ 0.37 Normalized FAD per share $ 0.36 $ 0.35 $ 0.35 $ 0.36 $ 0.37 Diluted weighted average shares outstanding [1] 95,340 95,306 95,295 95,353 95,429 (continued)


 
Consolidated Balance Sheets 17 (dollars in thousands) December 31, 2020 December 31, 2019 Assets: Real estate investments, net $ 1,448,099 $ 1,414,200 Other real estate investments, net 15,000 33,300 Assets held for sale, net 7,226 34,590 Cash and cash equivalents 18,919 20,327 Accounts and other receivables, net 1,823 2,571 Prepaid expenses and other assets, net 10,450 10,850 Deferred financing costs, net 2,042 3,023 Total assets $ 1,503,559 $ 1,518,861 Liabilities and Equity: Senior unsecured notes payable, net $ 296,669 $ 295,911 Senior unsecured term loan, net 198,925 198,713 Unsecured revolving credit facility 50,000 60,000 Accounts payable and accrued liabilities 19,572 14,962 Dividends payable 24,251 21,684 Total liabilities 589,417 591,270 Equity: Common stock 952 951 Additional paid-in capital 1,164,402 1,162,990 Cumulative distributions in excess of earnings (251,212) (236,350) Total equity 914,142 927,591 Total liabilities and equity $ 1,503,559 $ 1,518,861


 
18 Key Debt Metrics [1] Net Debt to Normalized EBITDA compares total debt as of the last day of the quarter to the annualized Normalized EBITDA for the quarter. [2] See "Financials & Filings - Quarterly Results" on the Investors section of our website at http://investor.caretrustreit.com for reconciliations of Normalized EBITDA to the most directly comparable GAAP measure for the periods presented. [3] Net Debt to Enterprise Value compares total debt as of the last day of the quarter to CareTrust REIT’s Enterprise Value as of the last day of the quarter. See “Glossary” for additional information. Net Debt to Normalized EBITDA [1][2] Net Debt to Enterprise Value [3] 4.1 3.5 3.3 3.3 3.3 3.4 3.3 3.5 3.2 3.1 3.3 6/ 30 /2 01 8 9/ 30 /2 01 8 12 /3 1/ 20 18 3/ 31 /2 01 9 6/ 30 /2 01 9 9/ 30 /2 01 9 12 /3 1/ 20 19 3/ 31 /2 02 0 6/ 30 /2 02 0 9/ 30 /2 02 0 12 /3 1/ 20 20 28.8% 24.2% 22.3% 18.1% 19.1% 19.9% 21.2% 28.0% 23.1% 22.0% 20.0% 6/ 30 /2 01 8 9/ 30 /2 01 8 12 /3 1/ 20 18 3/ 31 /2 01 9 6/ 30 /2 01 9 9/ 30 /2 01 9 12 /3 1/ 20 19 3/ 31 /2 02 0 6/ 30 /2 02 0 9/ 30 /2 02 0 12 /3 1/ 20 20


 
19 Debt Summary Notes: [1] Funds can be borrowed at applicable LIBOR 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 LIBOR plus 1.10% to 1.55% or the Base Rate (as defined) plus 0.10% to 0.55%. [3] Maturity date assumes 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. Debt Maturity Year P ri n ci p al (dollars in thousands) December 31, 2020 Debt Interest Rate Maturity Date Principal % of Principal Deferred Loan Costs Net Carrying Value Fixed Rate Debt Senior unsecured notes payable 5.250 % 2025 $ 300,000 54.5 % $ (3,331) $ 296,669 Floating Rate Debt Senior unsecured term loan 1.647 % [1] 2026 200,000 36.4 % (1,075) 198,925 Unsecured revolving credit facility 1.250 % [2] 2024 [3] 50,000 9.1 % — [4] 50,000 1.568 % 250,000 45.5 % (1,075) 248,925 Total Debt 3.576 % $ 550,000 100.0 % $ (4,406) $ 545,594 $50,000 $300,000 $200,000 2021 2022 2023 2024 2025 2026 Debt Maturity Schedule


 
2021 Guidance 20 Full Year 2021 Guidance[1] (shares in thousands) Low High Net income $ 0.84 $ 0.86 Real estate related depreciation and amortization 0.56 0.56 (Gain) loss on sale of real estate — — Funds from Operations (FFO) 1.40 1.42 Normalized FFO $ 1.40 $ 1.42 Net income $ 0.84 $ 0.86 Real estate related depreciation and amortization 0.56 0.56 Amortization of deferred financing fees 0.02 0.02 Amortization of stock-based compensation 0.07 0.07 Straight-line rental income — — (Gain) loss on sale of real estate — — Funds Available for Distribution (FAD) 1.49 1.51 Normalized FAD $ 1.49 $ 1.51 Weighted average shares outstanding: Diluted 95,557 95,557 Notes: [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, and (iv) estimated 1.25% CPI-based rent escalators under CareTrust's long-term net leases. It does not contemplate future negative impacts, if any, that are related to the COVID-19 pandemic, which are highly uncertain and cannot be predicted at this time. See “Glossary” for additional information.


 
21 Equity Capital Transactions Notes: [1] Represents average offering price per share for follow-on equity offerings. [2] In connection with the entry into the equity distribution agreement and the commencement of the new $500.0 million ATM Program in March 2020 (the "New ATM Program") our “at-the-market” equity offering program pursuant to our prior equity distribution agreement, dated as of March 4, 2019, was terminated (the "Prior ATM Program"). There was no Prior ATM Program or New ATM Program activity for the twelve months ended December 31, 2020. As of December 31, 2020, CareTrust REIT had $500.0 million available for future issuances under the New ATM Program. Follow-On Equity Offering Activity At-the-Market 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 $ — $ 84,439 $ 195,385 $ 155,073 2016 2017 2018 2019 2020[2] Q1 Q2 Q3 Q4 Total Number of Shares (000s) 924 10,574 10,265 2,459 — — — — — Average Price per Share $ 15.31 $ 16.43 $ 17.76 $ 19.48 $ — $ — $ — $ — $ — Gross Proceeds (000s) $ 14,147 $ 173,760 $ 182,321 $ 47,893 $ — $ — $ — $ — $ —


 
Other Financial Highlights 22 Notes: [1] Normalized FFO Payout Ratio represents dividends declared divided by Normalized FFO, in each case for the applicable quarter. [2] See “Financials & Filings - Quarterly Results” on the Investors section of our website at http://investor.caretrustreit.com for a reconciliation of Normalized FFO and Normalized FFO per Share to the most directly comparable GAAP measure for the periods presented. See “Glossary” for additional information. Dividend History Normalized FFO Payout Ratio [1][2] $0.16 $0.16 $0.16 $0.17 $0.17 $0.17 $0.17 $0.185 $0.185 $0.185 $0.185 $0.205 $0.205 $0.205 $0.205 $0.225 $0.225 $0.225 $0.225 $0.25 $0.25 $0.25 $0.25 6/ 30 /2 01 5 9/ 30 /2 01 5 12 /3 1/ 20 15 3/ 31 /2 01 6 6/ 30 /2 01 6 9/ 30 /2 01 6 12 /3 1/ 20 16 3/ 31 /2 01 7 6/ 30 /2 01 7 9/ 30 /2 01 7 12 /3 1/ 20 17 3/ 31 /2 01 8 6/ 30 /1 8 9/ 30 /1 8 12 /3 1/ 20 18 3/ 31 /2 01 9 6/ 30 /2 01 9 9/ 30 /2 01 9 12 /3 1/ 20 19 3/ 31 /2 02 0 6/ 30 /2 02 0 9/ 30 /2 02 0 12 /3 1/ 20 20 64% 80% 64% 63% 63% 60.7% 60.7% 63.8% 66.1% 66.1% 59.7% 64.1% 64.1% 64.1% 64.1% 70.3% 64.3% 64.3% 66.2% 73.5% 73.5% 73.5% 69.4% 6/ 30 /2 01 5 9/ 30 /2 01 5 12 /3 1/ 20 15 3/ 31 /2 01 6 6/ 30 /2 01 6 9/ 30 /2 01 6 12 /3 1/ 20 16 3/ 31 /2 01 7 6/ 30 /2 01 7 9/ 30 /2 01 7 12 /3 1/ 20 17 3/ 31 /2 01 8 6/ 30 /2 01 8 9/ 30 /2 01 8 12 /3 1/ 20 18 3/ 31 /2 01 9 6/ 30 /2 01 9 9/ 30 /2 01 9 12 /3 1/ 20 19 3/ 31 /2 02 0 6/ 30 /2 02 0 9/ 30 /2 02 0 12 /3 1/ 20 20


 
Other Financial Highlights (continued) Normalized FFO per Share [1] Normalized FFO [1] Notes: [1] See “Financials & Filings - Quarterly Results” on the Investors section of our website at http://investor.caretrustreit.com for a reconciliation of Normalized FFO and Normalized FFO per Share to the most directly comparable GAAP measure for the periods presented. See “Glossary” for additional information. $0.25 $0.20 $0.25 $0.27 $0.27 $0.28 $0.28 $0.29 $0.28 $0.28 $0.31 $0.32 $0.32 $0.32 $0.32 $0.32 $0.35 $0.35 $0.34 $0.34 $0.34 $0.34 $0.36 6/ 30 /2 01 5 9/ 30 /2 01 5 12 /3 1/ 20 15 3/ 31 /2 01 6 6/ 30 /2 01 6 9/ 30 /2 01 6 12 /3 1/ 20 16 3/ 31 /2 01 7 6/ 30 /2 01 7 9/ 30 /2 01 7 12 /3 1/ 20 17 3/ 31 /2 01 8 6/ 30 /2 01 8 9/ 30 /2 01 8 12 /3 1/ 20 18 3/ 31 /2 01 9 6/ 30 /2 01 9 9/ 30 /2 01 9 12 /3 1/ 20 19 3/ 31 /2 02 0 6/ 30 /2 02 0 9/ 30 /2 02 0 12 /3 1/ 20 20 $7,934 $7,731 $12,021 $13,098 $15,498 $16,258 $17,160 $19,331 $20,622 $21,028 $23,639 $24,105 $24,532 $25,840 $27,059 $27,937 $33,119 $33,590 $32,528 $32,308 $32,127 $32,477 $34,231 6/ 30 /2 01 5 9/ 30 /2 01 5 12 /3 1/ 20 15 3/ 31 /2 01 6 6/ 30 /2 01 6 9/ 30 /2 01 6 12 /3 1/ 20 16 3/ 31 /2 01 7 6/ 30 /2 01 7 9/ 30 /2 01 7 12 /3 1/ 20 17 3/ 31 /2 01 8 6/ 30 /2 01 8 9/ 30 /2 01 8 12 /3 1/ 20 18 3/ 31 /2 01 9 6/ 30 /2 01 9 9/ 30 /2 01 9 12 /3 1/ 20 19 3/ 31 /2 02 0 6/ 30 /2 02 0 9/ 30 /2 02 0 12 /3 1/ 20 20 23


 
Glossary 24 Assisted Living Facilities (“ALFs”) Licensed healthcare facilities that provide personal care services, support and housing for those who need help with daily living activities, such as bathing, eating and dressing, yet require limited medical care. The programs and services may include transportation, social activities, exercise and fitness programs, beauty or barber shop access, hobby and craft activities, community excursions, meals in a dining room setting and other activities sought by residents. These facilities are often in apartment-like buildings with private residences ranging from single rooms to large apartments. Certain ALFs may offer higher levels of personal assistance for residents requiring memory care as a result of Alzheimer’s disease or other forms of dementia. Levels of personal assistance are based in part on local regulations. EBITDA Net income before interest expense, income tax, depreciation and amortization and amortization of stock-based compensation.[1] EBITDAR Net income before interest expense, income tax, depreciation, amortization and rent, after applying a standardized management fee (5% of facility operating revenues). EBITDAR Coverage Aggregate EBITDAR produced by all facilities under a master lease (or other grouping) for the trailing twelve-month period ended September 30, 2020 divided by the base rent payable to CareTrust REIT under such master lease (or other grouping) for the same period; provided that if the master lease has been amended to change the base rent during or since such period, then the aggregate EBITDAR for such period is divided by the annualized monthly base rent currently in effect. In addition, we may exclude from coverage disclosures those facilities which are (i) classified as Held for Sale, (ii) temporarily on Special Focus Facility (SFF) status, (iii) undergoing significant renovations that necessarily result in a material reduction in occupancy, or (iv) have been acquired for or recently transferred to new operators for turnaround and are pre-stabilized. EBITDARM Earnings before interest expense, income tax, depreciation, amortization, cash rent, and a standardized management fee (5% of facility operating revenues). EBITDARM Coverage Aggregate EBITDARM produced by all facilities under a master lease (or other grouping) for the trailing twelve-month period ended September 30, 2020 divided by the base rent payable to CareTrust REIT under such master lease (or other grouping) for the same period; provided that if the master lease has been amended to change the base rent during or since such period, then the aggregate EBITDARM for such period is divided by the annualized monthly base rent currently in effect. In addition, we may exclude from coverage disclosures those facilities which are (i) classified as Held for Sale, (ii) temporarily on Special Focus Facility (SFF) status, (iii) undergoing significant renovations that necessarily result in a material reduction in occupancy, or (iv) have been acquired for or recently transferred to new operators for turnaround and are pre-stabilized. Enterprise Value Share price multiplied by the number of outstanding shares plus total outstanding debt minus cash, each as of a specified date. Funds Available for Distribution (“FAD”) FFO, excluding straight-line rental income adjustments, amortization of deferred financing fees and stock-based compensation expense.[2] Funds from Operations (“FFO”) Net income, excluding gains and losses from dispositions of real estate or other real estate, before real estate depreciation and amortization and real estate impairment charges. CareTrust REIT calculates and reports FFO in accordance with the definition and interpretive guidelines issued by the National Association of Real Estate Investment Trusts.[2] HHS Relief Funds Provider relief funds distributed by the Department of Health and Human Services as part of the CARES act to support healthcare providers battle against the COVID-19 outbreak. Healthcare providers received four payments over three phases of general distributions. Does not include funds as part of Medicaid's Federal Medical Assistance Percentage ("FMAP") or Medicare's Sequestration "Holiday".


 
Glossary 25 Independent Living Facilities (“ILFs”) Also known as retirement communities or senior apartments, ILFs are not healthcare facilities. ILFs typically consist of entirely self-contained apartments, complete with their own kitchens, baths and individual living spaces, as well as parking for tenant vehicles. They are most often rented unfurnished, and generally can be personalized by the tenants, typically an individual or a couple over the age of 55. These facilities offer various services and amenities such as laundry, housekeeping, dining options/meal plans, exercise and wellness programs, transportation, social, cultural and recreational activities, and on-site security. Multi-Service Campus Facilities that include a combination of Skilled Nursing beds and Seniors Housing units. Normalized EBITDA EBITDA, adjusted for certain income and expense items the Company does not believe are indicative of its ongoing results, such as certain real estate impairment charges, provision for loans, provision for doubtful accounts and lease restructuring, recovery of previously reversed rent, lease termination revenue, property operating expenses and gains or losses from dispositions of real estate or other real estate.[1] Normalized FAD FAD, adjusted for certain income and expense items the Company does not believe are indicative of its ongoing results, such as certain provision for loans, provision for doubtful accounts and lease restructuring, recovery of previously reversed rent, lease termination revenue and lease restructuring and property operating expenses.[2] Normalized FFO FFO, adjusted for certain income and expense items the Company does not believe are indicative of its ongoing results, and certain provision for loans, provision for doubtful accounts and lease restructuring, recovery of previously reversed rent, lease termination revenue and property operating expenses.[2] Seniors Housing Includes ALFs, ILFs, dedicated memory care facilities and similar facilities. Skilled Nursing or Skilled Nursing Facilities (“SNFs”) Licensed healthcare facilities that provide restorative, rehabilitative and nursing care for people not requiring the more extensive and sophisticated treatment available at an acute care hospital or long-term acute care hospital. Treatment programs include physical, occupational, speech, respiratory, ventilator, and wound therapy. Notes: [1] EBITDA and Normalized EBITDA 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. EBITDA and Normalized EBITDA do not purport to be indicative of cash available to fund future cash requirements, including the Company’s ability to fund capital expenditures or make payments on its indebtedness. Further, the Company’s computation of EBITDA and Normalized EBITDA may not be comparable to EBITDA and Normalized EBITDA reported by other REITs. [2] CareTrust REIT believes FAD, FFO, Normalized FAD, and Normalized FFO (and their related per-share amounts) are important non-GAAP supplemental measures of its operating performance. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time, even though real estate values have historically risen or fallen with market and other conditions. Moreover, by excluding items not indicative of ongoing results, Normalized FAD and Normalized FFO can facilitate meaningful comparisons of operating performance between periods and between other companies. However, FAD, FFO, Normalized FAD, and Normalized FFO (and their per-share amounts) do not represent cash flows from operations or net income attributable to shareholders as defined by GAAP and should not be considered an alternative to those measures in evaluating the Company’s liquidity or operating performance.


 
Grapevine Medical Lodge (Grapevine, TX)