CareTrust REIT, Inc. Announces Fourth Quarter and Full Year 2015 Operating Results

SAN CLEMENTE, Calif., Feb. 11, 2016 (GLOBE NEWSWIRE) -- CareTrust REIT, Inc. (NASDAQ: CTRE) today reported operating results for the fourth quarter and full year 2015, as well as other recent events.

Highlights included:

• Net income was $0.10 for the fourth quarter, and $0.26 for the year, per diluted share;
• Normalized FFO was $0.25 for the quarter and $0.94 for the year, per diluted share;
• Normalized FAD was $0.27 for the quarter and $1.04 for the year, per diluted share;
• During the year and since, CareTrust announced investments of approximately $271 million, at a blended going-in cash yield of over 9.5%, in 30 skilled nursing and senior housing facilities across Colorado, Washington, Florida, Georgia, Ohio, Iowa and Texas, initiating six new net-lease tenant relationships in the process; and
• During the year and since, CareTrust eliminated all of its secured indebtedness by (i) replacing its secured revolving credit facility with a new, four-year $400 million unsecured revolving credit facility that includes an accordion feature which allows CareTrust to increase the line’s borrowing availability to $650 million, (ii) entering into a new $100 million, seven-year, non-amortizing unsecured term loan, and (iii) paying off and terminating its previously non-prepayable $95 million secured mortgage loan under the legacy 2006 credit agreement with General Electric Capital Corporation. 

Approximately $271 Million in New Investments Completed

Commenting on the investment activity during the year and since, Greg Stapley, CareTrust’s Chairman and Chief Executive Officer, remarked, “Our new investments in 2015 and since demonstrate our ability to consistently add small-to-medium sized acquisitions to our portfolio, to opportunistically pursue larger investments, to create new tenant relationships with quality operators, and to grow those new tenant relationships with add-on acquisitions.” He noted that CareTrust now has ten tenant relationships, that revenue from its Ensign leases has been reduced to approximately 64% of total revenues exclusive of tenant reimbursements on a run-rate basis, and that the entire lease portfolio remains operationally healthy with solid and growing lease coverage.

Financial Results & Financing Activities

Discussing financial results for the year, Chief Financial Officer Bill Wagner reported that the Company generated normalized FFO of $35.3 million or $0.94 per diluted common share, and normalized FAD of $39.0 million or $1.04 per diluted common share.  

Mr. Wagner also discussed the Company’s expanded revolver capacity and recent debt refinancing activity.  “We have finally replaced the last of our secured debt with lower-cost unsecured debt, and in the process expanded our borrowing capacity and further staggered our debt maturities,” he said. He noted that, taking into account existing extension rights, CareTrust now has no debt maturing before 2020, and that the Company’s current debt-to-EBITDA ratio stands at approximately 5.7x, down from approximately 7.0x at the Company’s spinoff just 20 months ago.

Commenting on the Company’s liquidity, he added, “For 2016, we are positioned to fund our near-term growth plans and to improve our credit profile with the rating agencies.” He noted that at present only about $85 million is drawn on the Company’s $400 million unsecured revolver, leaving ample room for additional investments in the near term. 

2016 Guidance Revised Upward

Mr. Wagner updated the Company’s previously-issued 2016 earnings guidance, projecting normalized FFO per diluted share of approximately $1.05 to $1.07, and normalized FAD per diluted share of approximately $1.15 to $1.17. The guidance assumes no new acquisitions beyond those made to date, no new debt incurrence or equity issuances, and no rent bumps on the Company’s long-term leases.

Dividends Declared

During the year, the Company declared dividends totaling $0.64 per common share. “Our annual dividend represents a payout ratio of approximately 62% based on the $1.04 normalized FAD for 2015,” said Mr. Wagner. “At this level,” he added, “our dividend remains among the best-protected of all our industry peers and gives us additional growth capital, all while providing a solid return to our shareholders.”

Conference Call

An earnings webcast will be held on Friday, February 12, 2016, at 8:00 a.m. Pacific Time, during which CareTrust’s management will discuss the Company’s fourth quarter and full year 2015 results, recent developments and other matters affecting the Company’s business and prospects. To listen to the webcast, or to view any financial or other statistical information required by SEC Regulation G, please visit the Investors section of the CareTrust website at http://investor.caretrustreit.com/. The webcast will be recorded, and will be available for replay via the website for one year following the event.

About CareTrustTM

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust that is engaged in the ownership, acquisition and leasing of seniors housing and healthcare-related properties. With 129 net-leased healthcare properties and three operated seniors housing properties in 15 states, CareTrust is pursuing opportunities nationwide to acquire additional properties that will be leased to a diverse group of local, regional and national seniors housing operators, healthcare services providers, and other healthcare-related businesses. More information about CareTrust 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 and webcast will include, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief or expectations, including, but not limited to, statements regarding future financing plans, business and acquisition strategies, growth prospects and operating and financial performance.

Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These 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 Management believes that the assumptions underlying the forward-looking statements are reasonable, they are not guarantees and the Company can give no assurance that their 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 to achieve some or all of the expected benefits from the completed spin-off;  (ii) the ability and willingness of Ensign to meet and/or perform its obligations under the contractual arrangements that it entered into with the Company in connection with the spin-off, including the Ensign Master Leases, and any of its obligations to indemnify, defend and hold the Company harmless from and against various claims, litigation and liabilities; (iii) the ability and willingness of the Company’s tenants to (a) comply with laws, rules and regulations in the operation of the properties the Company leases to them, and (b) renew their leases with the Company upon expiration, or in the alternative, (c) the Company’s ability to reposition and re-let the Company’s properties on the same or better terms in the event of nonrenewal or replacement of an existing tenant and any obligations, including indemnification obligations, that the Company may incur in replacing an existing tenant; (iv) the availability of, and the ability to identify and acquire, suitable acquisition opportunities and lease the same to reliable tenants on accretive terms; (v) the ability to generate sufficient cash flows to service the Company’s outstanding indebtedness; (vi) access to debt and equity capital markets; (vii) fluctuating interest rates; (viii) the ability to retain and properly incentivize key management personnel; (ix) the ability to qualify or maintain the Company’s status as a real estate investment trust (“REIT”); (x) changes in the U.S. tax laws and other state, federal or local laws, whether or not specific to REITs; (xi) other risks inherent in the real estate business, including potential liability relating to environmental matters and illiquidity of real estate investments; and (xii) any additional factors included in this report and any included in the section entitled “Risk Factors” in Item 1A of Part I of the Company’s most recently filed Form 10-K.

Forward-looking statements speak only as of the date made, whether in this press release or the related conference call and webcast. Except in the normal course of the Company’s public disclosure obligations, the Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any statement is based.

CARETRUST REIT, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
					December 31,				December 31,
						2015				2014
Assets
Real estate investments, net					$	645,614			$	436,215
Other real estate investments						8,477				7,532
Cash and cash equivalents						11,467				25,320
Accounts receivable						2,342				2,291
Prepaid expenses and other assets						2,083				809
Deferred financing costs, net						3,183				2,973
			Total assets		$	673,166			$	475,140
Liabilities and Equity
Senior unsecured notes payable, net					$	254,229			$	253,165
Mortgage notes payable, net						94,676				97,608
Unsecured revolving credit facility						45,000				-
Accounts payable and accrued liabilities						9,269				6,959
Dividends payable						7,704				3,946
			Total liabilities			410,878				361,678
Equity:
Common stock						477				313
Additional paid-in capital						410,217				246,041
Cumulative distributions in excess of earnings						(148,406	)			(132,892	)
			Total equity			262,288				113,462
			Total liabilities and equity		$	673,166			$	475,140

CARETRUST REIT, INC.
CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
		Three Months Ended December 31,								Year Ended December 31,
			2015				2014				2015				2014
		(unaudited)
Revenues:
	Rental income	$	20,110			$	14,139			$	65,979			$	51,367
	Tenant reimbursements		1,631				1,230				5,497				4,956
	Independent living facilities		642				663				2,510				2,519
	Interest and other income		249				45				965				55
	Total revenues		22,632				16,077				74,951				58,897
Expenses:
	Depreciation and amortization		7,040				5,369				24,133				23,000
	Interest expense		6,145				5,900				25,256				21,622
	Loss on extinguishment of debt		-				-				-				4,067
	Property taxes		1,631				1,230				5,497				4,956
	Acquisition costs		-				47				-				47
	Independent living facilities		598				559				2,376				2,243
	General and administrative		2,215				2,342				7,655				11,105
	Total expenses		17,629				15,447				64,917				67,040
Net income (loss)		$	5,003			$	630			$	10,034			$	(8,143	)
Earnings (loss) per common share:
	Basic	$	0.10			$	0.03			$	0.26			$	(0.36	)
	Diluted	$	0.10			$	0.03			$	0.26			$	(0.36	)
Weighted average shares outstanding:
	Basic		47,660				24,419				37,380				22,788
	Diluted		47,660				24,586				37,380				22,788

CARETRUST REIT, INC.
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
(in thousands)
		Year Ended December 31,
			2015				2014
Cash flows from operating activities:
	Net income (loss)	$	10,034			$	(8,143	)
	Adjustments to reconcile net income (loss) to net cash provided by
	operating activities:
	Depreciation and amortization		24,133				23,000
	Amortization of deferred financing costs and debt discount		2,200				1,603
	Write-off of deferred financing costs		1,208				-
	Amortization of stock-based compensation		1,522				154
	Non cash interest income		( 945	)			( 32	)
	Loss on extinguishment of debt		-				1,998
	Loss on settlement of interest rate swap		-				1,661
	Change in operating assets and liabilities:
	Accounts receivable		( 2,326	)			4
	Accounts receivable due from related party		2,275				( 2,275	)
	Prepaid expenses and other assets		( 86	)			445
	Interest rate swap		-				( 1,661	)
	Accounts payable and accrued liabilities		2,239				5,152
Net cash provided by operating activities			40,254				21,906
Cash flows from investing activities:
	Acquisition of real estate		( 232,466	)			( 25,742	)
	Improvements to real estate		( 187	)			( 579	)
	Purchases of equipment, furniture and fixtures		( 276	)			( 19,275	)
	Preferred equity investment		-				( 7,500	)
	Escrow deposits for acquisition of real estate		( 1,750	)			( 500	)
	Net proceeds from the sale of vacant land		30				-
Net cash used in investing activities			( 234,649	)			( 53,596	)
Cash flows from financing activities:
	Proceeds from the issuance of common stock, net		162,963				-
	Proceeds from the issuance of senior unsecured notes payable		-				260,000
	Borrowings under unsecured credit facility		45,000				-
	Borrowings under senior secured revolving credit facility		35,000				10,000
	Proceeds from the issuance of mortgage notes payable		-				50,676
	Repayments of borrowings under senior secured revolving credit facility		( 35,000	)			( 88,701	)
	Payments on the mortgage notes payable		( 3,183	)			( 68,155	)
	Payments on the senior secured term loan		-				( 65,624	)
	Payments of deferred financing costs		( 2,303	)			( 13,436	)
	Net-settle adjustment on restricted stock		( 145	)			-
	Dividends paid on common stock		( 21,790	)			( 33,001	)
	Net contribution from Ensign		-				4,356
Net cash provided by financing activities			180,542				56,115
Net (decrease) increase in cash and cash equivalents			( 13,853	)			24,425
Cash and cash equivalents, beginning of period			25,320				895
Cash and cash equivalents, end of period		$	11,467			$	25,320

CARETRUST REIT, INC.
DEBT SUMMARY
(dollars in thousands)
(unaudited)
										December 31, 2015
				Interest Rate/				Maturity					Deferred						Net Carrying
Debt		Collateral		Spread				Date		Principal			Loan Costs						Value
Fixed Rate Debt
Senior unsecured notes payable		Unsecured			5.875	%		2021		$	260,000		$	(5,771	)				$	254,229
GECC mortgage notes payable (1)		10 properties			7.252	%		2017			46,165			(168	)					45,997
											306,165			(5,939	)					300,226
Floating Rate Debt
GECC mortgage notes payable (1)		10 properties		L + 3.35%				2017			48,857			(178	)					48,679
Unsecured revolving credit facility (2)		Unsecured		L + 1.75%-2.40%				2019			45,000			-			(3	)		45,000
											93,857			(178	)					93,679
Total Debt										$	400,022		$	(6,117	)				$	393,905
Debt Statistics
% Fixed Rate Debt											76.5	%
% Floating Rate Debt											23.5	%
Total											100.0	%
Weighted Average Interest Rates:
Fixed											6.1	%
Floating											3.2	%
Blended											5.4	%
(1) The GECC mortgage notes payable was paid off on February 1, 2016, in conjunction with an amendment to our Credit Facility which included, among other things, increased commitments to $400.0 million under our Revolving Facility and a $100.0 million Term Loan.
(2) Funds can also be borrowed at the Base Rate (as defined) plus 0.75% to 1.4%.
(3) 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.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
		Quarter			Quarter			Quarter			Quarter				Year
		Ended			Ended			Ended			Ended				Ended
		March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015				December 31, 2015
Revenues:
	Rental income	$	14,842		$	15,249		$	15,778		$	20,110			$	65,979
	Tenant reimbursements		1,258			1,288			1,320			1,631				5,497
	Independent living facilities		635			607			626			642				2,510
	Interest and other income		223			232			261			249				965
	Total revenues		16,958			17,376			17,985			22,632				74,951
Expenses:
	Depreciation and amortization		5,599			5,679			5,815			7,040				24,133
	Interest expense		5,901			5,989			7,221			6,145				25,256
	Property taxes		1,258			1,288			1,320			1,631				5,497
	Independent living facilities		602			566			610			598				2,376
	General and administrative		1,560			1,588			2,292			2,215				7,655
	Total expenses		14,920			15,110			17,258			17,629				64,917
Net income		$	2,038		$	2,266		$	727		$	5,003			$	10,034
Diluted earnings per share		$	0.06		$	0.07		$	0.02		$	0.10			$	0.26
Diluted weighted average shares outstanding			31,257			31,278			39,125			47,660				37,380

 

CARETRUST REIT, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
			One Month			Quarter			Quarter				Seven
			Ended			Ended			Ended				Months Ended
			June 30, 2014			September 30, 2014			December 31, 2014				December 31, 2014
Revenues:
	Rental income		$	4,667		$	14,000		$	14,139			$	32,806
	Tenant reimbursements			396			1,228			1,230				2,854
	Independent living facilities			211			646			663				1,520
	Interest and other income			-			10			45				55
	Total revenues			5,274			15,884			16,077				37,235
Expenses:
	Depreciation and amortization			1,794			5,362			5,369				12,525
	Interest expense			1,967			5,943			5,900				13,810
	Property taxes			396			1,228			1,230				2,854
	Acquisition costs			-			-			47				47
	Independent living facilities			161			586			559				1,306
	General and administrative			500			798			2,342				3,640
	Total expenses			4,818			13,917			15,447				34,182
Net income			$	456		$	1,967		$	630			$	3,053
Diluted earnings per share			$	0.02		$	0.09		$	0.03			$	0.13
Diluted weighted average shares outstanding				22,436			22,436			24,586				23,357

 

CARETRUST REIT, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)
				Quarter			Quarter			Quarter			Quarter				Year
				Ended			Ended			Ended			Ended				Ended
				March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015				December 31, 2015
Net income				$	2,038		$	2,266		$	727		$	5,003			$	10,034
	Depreciation and amortization				5,599			5,679			5,815			7,040				24,133
	Interest expense				5,901			5,989			7,221			6,145				25,256
	Amortization of stock-based compensation				366			294			435			427				1,522
EBITDA					13,904			14,228			14,198			18,615				60,945
Adjusted EBITDA				$	13,904		$	14,228		$	14,198		$	18,615			$	60,945
Net income				$	2,038		$	2,266		$	727		$	5,003			$	10,034
	Real estate related depreciation and amortization				5,593			5,668			5,796			7,018				24,075
Funds from Operations (FFO)					7,631			7,934			6,523			12,021				34,109
	Write-off of deferred financing fees				-			-			1,208			-				1,208
Normalized FFO				$	7,631		$	7,934		$	7,731		$	12,021			$	35,317
Net income				$	2,038		$	2,266		$	727		$	5,003			$	10,034
	Real estate related depreciation and amortization				5,593			5,668			5,796			7,018				24,075
	Amortization of deferred financing costs				547			555			547			551				2,200
	Amortization of stock-based compensation				366			294			435			427				1,522
Funds Available for Distribution (FAD)					8,544			8,783			7,505			12,999				37,831
	Write-off of deferred financing fees				-			-			1,208			-				1,208
Normalized FAD				$	8,544		$	8,783		$	8,713		$	12,999			$	39,039
FFO per share				$	0.24		$	0.25		$	0.17		$	0.25			$	0.91
Normalized FFO per share				$	0.24		$	0.25		$	0.20		$	0.25			$	0.94
FAD per share				$	0.27		$	0.28		$	0.19		$	0.27			$	1.01
Normalized FAD per share				$	0.27		$	0.28		$	0.22		$	0.27			$	1.04
Diluted weighted average shares outstanding (1)					31,446			31,462			39,271			47,802				37,545
	(1) For all quarters presented, the diluted weighted average shares includes unvested restricted stock awards as the effect is more dilutive.

 

CARETRUST REIT, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)
					One Month			Quarter			Quarter				Seven
					Ended			Ended			Ended				Months Ended
					June 30, 2014			September 30, 2014			December 31, 2014				December 31, 2014
Net income					$	456		$	1,967		$	630			$	3,053
	Depreciation and amortization					1,794			5,362			5,369				12,525
	Interest expense					1,967			5,943			5,900				13,810
	Amortization of stock-based compensation					-			-			154				154
EBITDA						4,217			13,272			12,053				29,542
	Acquisition costs					-			-			47				47
	Costs associated with the Spin-Off					254			30			168				452
Adjusted EBITDA					$	4,471		$	13,302		$	12,268			$	30,041
Net income					$	456		$	1,967		$	630			$	3,053
	Real estate related depreciation and amortization					1,794			5,362			5,365				12,521
Funds from Operations (FFO)						2,250			7,329			5,995				15,574
	Acquisition costs					-			-			47				47
	Costs associated with the Spin-Off					254			30			168				452
Normalized FFO					$	2,504		$	7,359		$	6,210			$	16,073
Net income					$	456		$	1,967		$	630			$	3,053
	Real estate related depreciation and amortization					1,794			5,362			5,365				12,521
	Amortization of deferred financing costs					175			533			553				1,261
	Amortization of stock-based compensation					-			-			154				154
Funds Available for Distribution (FAD)						2,425			7,862			6,702				16,989
	Acquisition costs					-			-			47				47
	Costs associated with the Spin-Off					254			30			168				452
Normalized FAD					$	2,679		$	7,892		$	6,917			$	17,488
FFO per share					$	0.10		$	0.33		$	0.24			$	0.67
Normalized FFO per share					$	0.11		$	0.33		$	0.25			$	0.69
FAD per share					$	0.11		$	0.35		$	0.27			$	0.73
Normalized FAD per share					$	0.12		$	0.35		$	0.28			$	0.75
Diluted weighted average shares outstanding (1)						22,436			22,436			24,586				23,357
	(1) For all quarters presented, the diluted weighted average shares includes unvested restricted stock awards as the effect is more dilutive.

 

CARETRUST REIT, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
(shares in thousands)
(unaudited)
2016 Guidance
		Low			High
Net income		$	0.44		$	0.46
	Real estate related depreciation and amortization		0.60			0.60
Funds from Operations (FFO)			1.04			1.06
	Write-off of deferred financing fees		0.01			0.01
Normalized FFO		$	1.05		$	1.07
Net income		$	0.44		$	0.46
	Real estate related depreciation and amortization		0.60			0.60
	Amortization of deferred financing costs		0.05			0.05
	Amortization of deferred stock compensation		0.05			0.05
Funds Available for Distribution (FAD)			1.14			1.16
	Write-off of deferred financing fees		0.01			0.01
Normalized FAD		$	1.15		$	1.17
Weighted average shares outstanding:
	Diluted		48,147			48,147

Discussion of Non-GAAP Financial Measures

EBITDA represents net income before interest expense, amortization of deferred financing costs and stock-based compensation, and depreciation and amortization. Adjusted 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 costs associated with the spin-off, impairments, and gains or losses on the sale of real estate.  EBITDA and Adjusted 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 Adjusted 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 Adjusted EBITDA may not be comparable to EBITDA and Adjusted 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.  However, 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 real estate dispositions, real estate depreciation and amortization and 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 non-cash expenses, such as stock-based compensation expense, amortization of deferred financing costs and the effects of straight-line rent. FAD is useful in analyzing the portion of cash flow that is available for distribution to shareholders. Investors, analysts and the Company utilize FAD as an indicator of common dividend potential. The FAD payout ratio, which represents annual distributions to common shareholders expressed as a percentage of FAD, facilitates the comparison of dividend coverage among REITs.

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 costs associated with the spin-off, and other non-recurring expenses and unanticipated charges. 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 the use of EBITDA, Adjusted 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 Adjusted EBITDA useful in understanding the Company’s operating results independent of its capital structure and indebtedness, 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 non-cash expenses such as stock-based compensation expense and amortization of deferred financing costs, FFO, normalized FFO, FAD and normalized FAD can help investors compare the Company’s operating performance between periods and to other REITs. 

Contact Information
CareTrust REIT, Inc. (949) 542-3130, [email protected]

Source: CareTrust REIT

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• IBM tumbles on soft Q1 revenue; announces HashiCorp $6.4bn acquisition
• Siebert Financial Corp (SIEB) Receives Nasdaq Non-compliance Notice
• Ocean Biomedical (OCEA) Announces Receipt of Notice from Nasdaq Regarding Late Filing of Annual Report on Form 10-K