Conference Call Scheduled for Friday, February 9, 2024 at 1:00 pm ET

CareTrust REIT, Inc. (NYSE:CTRE) today reported operating results for the quarter and year ended December 31, 2023, as well as other recent events.

For the quarter, CareTrust REIT reported:

• 100.0% of contractual rents collected, resulting in collections for the year of 97.7%;
• Net income of $26.3 million and net income per share of $0.22;
• Normalized FFO of $43.4 million and normalized FFO per share of $0.36;
• Normalized FAD of $45.4 million and normalized FAD per share of $0.37;
• A quarterly dividend of $0.28 per share, representing a payout ratio of approximately 76% on normalized FAD;
• Investments of $43.2 million during the quarter and $288.1 million during the year at an estimated stabilized yield of 11.4% and 9.8%, respectively, after rent ramps or rent resets under the lease are completed;
• Settlement of 14.6 million shares under its ATM Program, including both forward contract sales and direct issuances, for gross proceeds of $319.9 million;
• Net Debt to Annualized Normalized Run Rate EBITDA of 1.4x.

Since quarter end, CareTrust REIT reported:

• Investments of $63.2 million at a yield of 12.9%;
• A new assisted living operator relationship;
• Investment pipeline of $250 million.

CareTrust’s President and Chief Executive Officer, Dave Sedgwick, commented on the Company’s 2023 and fourth quarter results: “2023 was a great year for the Company on all fronts. We invested $288 million at a stabilized yield of 9.8%. We expanded our operator and industry relationships. We paid off our $600 million line of credit and ended the year with approximately $294 million of cash on the balance sheet.” Mr. Sedgwick continued, “Assuming the business environment for us and operators remains steady, we expect 2024 to be a strong year for new investments. The investment pipeline today is roughly $250 million, not including larger portfolio deals we regularly review.”

Financial Results for Quarter and Year Ended December 31, 2023

Chief Financial Officer, Bill Wagner, reported that, for the fourth quarter, CareTrust reported net income of $26.3 million, or $0.22 per diluted weighted-average common share, normalized FFO of $43.4 million, or $0.36 per diluted weighted-average common share, and normalized FAD of $45.4 million, or $0.37 per diluted weighted-average common share. For the year ended December 31, 2023, CareTrust reported net income of $53.7 million, or $0.50 per diluted weighted-average common share, normalized FFO of $149.6 million, or $1.41 per diluted weighted-average common share, and normalized FAD of $156.8 million, or $1.48 per diluted weighted-average common share.

Liquidity

As of quarter end, CareTrust reported net debt-to-annualized normalized run rate EBITDA of 1.4x, which is below the Company's target leverage range of 4.0x to 5.0x, and a net debt-to-enterprise value of approximately 9.5%. Mr. Wagner stated that, as of today, the Company has no borrowings outstanding on its $600 million revolving credit line, with no scheduled debt maturities prior to 2026. He also disclosed that CareTrust currently has approximately $220 million in cash on hand. He further noted that the Company had $274.1 million in available authorization remaining on its at-the-market equity program as of December 31, 2023. During the fourth quarter, the Company settled 14.6 million shares under the ATM Program at a weighted average sales price of $21.94 for gross proceeds of $319.9 million. During the year ended December 31, 2023, the Company settled 30.9 million shares under the ATM Program at a weighted average sales price of $20.86 for gross proceeds of $643.8 million. "With substantial availability on our revolver, and equity markets readily accessible to us at present, we continue to have a wide range of capital options for funding our opportunistic growth strategy," said Mr. Wagner.

Guidance

The Company issued guidance for 2024, with Mr. Wagner projecting on a per-diluted weighted-average common share basis net income of approximately $1.02 to $1.04, normalized FFO of approximately $1.43 to $1.45, and normalized FAD of approximately $1.47 to $1.49. He noted that the 2024 guidance is based on a diluted weighted-average common share count of 130.5 million shares, and assumes the following:

• 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;
• 2% - 3% 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 Maintained

During the quarter, CareTrust declared a quarterly dividend of $0.28 per common share. On an annualized basis, the payout ratio was approximately 78% based on fourth quarter 2023 normalized FFO, and 76% based on normalized FAD.

Conference Call

A conference call will be held on Friday, February 9, 2024, 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 2023 results, recent developments and other matters. The toll-free dial-in number is 1 (800) 715-9871 or toll dial-in number is 1 (646) 307-1963 and the conference ID number is 7862003. 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. This call will be recorded, and will be available for replay via the website for 30 days following the call.

About CareTrust™

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 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 U.S. tax law and other state, federal or local laws, whether or not specific to REITs; (xiv) other risks inherent in the real estate business, including potential liability relating to environmental matters and illiquidity of real estate investments; and (xv) any additional factors included in our Annual Report on Form 10-K for the year ended December 31, 2023, including in the section entitled “Risk Factors” in Item 1A 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, 2023 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.