Attached files
| file | filename |
|---|---|
| 8-K - 8-K - CareTrust REIT, Inc. | d50718d8k.htm |
| EX-99.1 - EX-99.1 - CareTrust REIT, Inc. | d50718dex991.htm |
 Investor Presentation
September 2015 Willow Bend Nursing & Rehabilitation Center, Mesquite, TX Exhibit 99.2 Orem Rehabilitation & Skilled Nursing, Orem, UT Julia Temple Healthcare Center, Englewood, CO |
 Safe
Harbor Statement 2
This document may contain “forward-looking” statements as defined in the
Private Securities Litigation Reform Act of 1995. These forward-looking statements concern and are based upon, among other things, the possible expansion of the portfolio of CareTrust REIT, Inc. (“CTRE,”
“CareTrust” or the “Company”); the sale of
properties; the performance of its operators/tenants and properties; its ability to enter into agreements with new viable tenants for vacant space or for properties that the company takes back from financially troubled tenants, if any; its occupancy rates; its ability to acquire, develop and/or
manage properties; the ability to successfully manage the risks
associated with international expansion and operations; its ability to make distributions to shareholders; its policies and plans regarding investments, financings and other matters; its tax status as a real estate investment trust; its critical accounting policies;
its ability to appropriately balance the use of debt and equity; its
ability to access capital markets or other sources of funds; its ability to meet its earnings guidance; and its ability to finance and complete, and the effect of, future acquisitions. When the Company uses words such as “may,” “will,” “intend,”
“should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions, it is making forward-looking statements. Forward-looking statements are
not guarantees of future performance and involve risks and uncertainties.
The Company’s expected results may not be achieved, and actual results may differ materially from expectations. This may be a result of various factors, including, but not limited to: the ability and willingness of the Company’s tenants to meet and/or perform their
financial and other obligations under their respective multiple
long-term leases (each, a “Master Lease” and collectively, the “Master Leases,” and with respect to those Master Leases for properties leased to affiliates of Ensign, an “Ensign Master Lease” and collectively, the “Ensign Master Leases”),
including the Ensign Master Leases, including their respective
obligations to indemnify, defend and hold the Company harmless from and against various claims, litigation and liabilities; the ability of the Company’s tenants to comply with laws, rules and regulations in the operation of the properties the Company leases to them; the ability
and willingness of the Company’s tenants to renew their leases with
the Company upon their expiration, and the ability to reposition the Company’s properties on the same or better terms in the event of nonrenewal or in the event the Company replaces an existing tenant, and obligations, including indemnification obligations,
the Company may incur in connection with the replacement of an existing
tenant; the ability and willingness of the seller in the Company’s purchase of a 14-facility skilled nursing and assisted living portfolio (the “Liberty Portfolio”), currently owned and operated by Liberty, for approximately $175
million, exclusive of estimated transaction costs of approximately $3.4
million (the “Liberty Acquisition”) to complete the sale of the portfolio and to comply with its obligations to the Company and the new operator under its contractual arrangements with the Company and them, before, during and after the closing of the Liberty
Acquisition, as well as the ability and willingness of the new operator
to obtain the requisite licensure and certifications to operate the Liberty Portfolio, and to fulfill its obligations under such contractual arrangements before, during and after the closing; the availability of, and the ability of the Company’s management to
identify, suitable acquisition opportunities and to acquire and lease
some of such properties on favorable terms; the ability and willingness of Ensign to meet and/or perform its remaining obligations under the other contractual arrangements that it entered into with the Company in connection with the Company’s
Spin-Off (as defined below) from Ensign in 2014, and any of its
obligations thereunder to indemnify, defend and hold us harmless from and against various claims, litigation and liabilities; the ability to achieve some or all of the remaining benefits that the Company expected to achieve from the separation of
Ensign’s healthcare business and its real estate business into two
separate and independent publicly traded companies through the distribution of all of the outstanding shares of common stock of CareTrust to Ensign stockholders on a pro rata basis (the “Spin-Off”); the ability to generate sufficient cash flows to
service the Company’s outstanding indebtedness; access to debt and
equity capital markets; fluctuating interest rates; the ability to retain the Company’s key management personnel; the ability to qualify or maintain the Company’s status as a REIT; changes in the U.S. tax law and other state, federal or local laws, whether or not
specific to REITs; and other risks inherent in the real estate business,
including potential liability relating to environmental matters and illiquidity of real estate investments. Finally, the Company assumes no obligation to update or revise any forward-looking statements or to update the reasons why actual results could differ
from those projected in any forward-looking statements. |
 Strong
Healthcare Operating & REIT Background
• Co-Founder of Ensign, instrumental in assembling the real estate portfolio now owned by CareTrust
• 29 years of experience in the acquisition, development and disposition of real estate
• Previously the General Counsel of a 192-location national retailer and partner at a Jennings Strouss & Salmon, a large law firm in Phoenix, AZ • Served as SVP and CAO of Nationwide Health Properties, Inc. and Sunstone Hotel Investors, Inc.
• 23 years of accounting and finance experience, primarily in real estate, including 11 years with publicly-traded REITs
• Ernst & Young Kenneth Leventhal Real Estate Group • Ensign’s Chief Human Capital Officer from 2007 – 2012; Trained over 100 Ensign nursing home administrators • Licensed nursing home administrator; Regional Operations Director; 12 years of experience in skilled nursing operations • Led five SNFs as CEO; developed Ensign’s approach to cultural, clinical and financial performance
• Director of Investments at Nationwide Health Properties, underwriting over $1 billion of new investments across the
Seniors Housing and Skilled Nursing sectors
• Licensed nursing home administrator; led three SNFs as Administrator for Plum Healthcare & North American Health
Care in California • Investment Associate at The Bascom Group, a private equity real estate investment firm Greg Stapley, Chief Executive Officer Bill Wagner, Chief Financial Officer Dave Sedgwick, Vice President Operations
Mark Lamb, Director of Investments 3 |
 Acquisition & Operational Experience
The CareTrust Team brings its Experience, Relationships & Track Record from Ensign 4 Ensign Pre-Spin Annual Facilities Growth & CareTrust’s First Year Facilities Growth Ensign Pre-Spin Historical Asset Acquisitions & CareTrust’s First-Year Growth ($ in millions) (1) Pro forma acquisitions for all announced transactions as of September 1, 2015
(1) (1) 57 61 63 77 82 102 108 119 97 102 4 2 14 5 20 6 11 6 7 20 0 20 40 60 80 100 120 140 2007 2008 2009 2010 2011 2012 2013 Q1 '14 CTRE Months 2015 Forma $40 $25 $21 $61 $21 $130 $43 $45 $48 $67 $231 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 2006 2007 2008 2009 2010 2011 2012 2013 Avg. '06-'13 CTRE 1st 12 2015 Forma 1st 12 Months Pro Pro |
 Growing
Portfolio As of September 1, 2015 (pro forma for all announced
transactions) 5
TX 22% CA 15% UT 10% AZ 8% OH 11% Other 34% SNF 71% AL/IL 18% Campus 11% |
 Strong
Liquidity for Growth 6
Plus access to public equity and debt markets,
and other forms of long-term capital.
$29.9 million cash on hand as of June
30, 2015 $171.6
million equity raise August 2015 (1) $300.0 million undrawn senior unsecured credit facility with
approximately $95.4 million of current availability (approximately
$157.2 million available pro forma for the Liberty transaction)
(1) Net proceeds, less underwriting discount and other offering expenses, were approximately $163.7 million
|
 Privately Owned, 79% Public REIT- Owned , 21% Outpatient/ MOB, 39% Hospitals/ LTACHs, 31% Senior Housing (ALF, ILF, Memory Care), 15% Skilled Nursing, 10% Life Science/ Biotech, 5% Healthcare Real Estate Ownership Real Estate Asset Breakdown Note: Healthcare Real Estate Ownership Breakdown and Real Estate Asset Breakdown from Stifel Nicolaus industry analysis Roll – Up Opportunity Healthcare Real Estate Market Estimated at Over $1 Trillion 7 Deal Size Large REITs focused on larger acquisitions
Tenant Size
|
 Mining
an Underserved Market 8
Fragmented market, underserved by capital providers Limited access to capital and liquidity for local and regional operators Limited competition for SNFs and mid-market senior housing assets Large competitors chasing compressed cap rate deals Apply healthcare operating experience to underwriting process Target quality one-off, small & mid-sized portfolios Leverage growing number of operator relationships Identify superior operators focused on post –acute care delivery Accretive investments with strong operating partners/tenants 100% lease financing attracts up and coming operators Attractive investment spreads over cost of capital Substantial growth potential through smaller and off-market deals Market Backdrop CareTrust Role Results |
 Disciplined Investment Strategy
Focused on Accretive Deals
9 Senior Housing Facilities (ALF, ILF, MC) Skilled Nursing Facilities Medical Office Buildings Acute Care Net Lease Core Core Opportunistic Opportunistic Mortgage Debt Relationship Relationship Opportunistic Opportunistic Development Funding Relationship Relationship RIDEA Opportunistic |
 Total
LTM EBITDAR Tenant Rent Coverage (1) As of Q2 2015 reported period and
represents CTRE’s total portfolio; pro forma for the Liberty Health Care Portfolio and July 2015 acquisitions (2) As of Q1 2015 reported period and represents LTC’s SNF portfolio (3) As of Q1 2015 reported period and represents HCP’s 34 non-HCR Manor Care SNF properties
(4) As of Q1 2015 reported period and represents OHI’s total
portfolio (5) As of Q1 2015 reported period and represents HCN’s long
term / post-acute portfolio (6) As of March 31, 2015 pro forma for
acquisitions in the quarter. (7) As of Q1 2015 reported period and
represents SBRA’s SNF portfolio (8) As of Q1 2015 reported period and
represents HCR Manor Care’s portfolio consisting of 267 SNF and 66 ALF properties Leading Tenant Rent Coverage 10 1.82x 1.66x 1.54x 1.40x 1.40x 1.30x 1.19x 1.08x 1.00x 1.10x 1.20x 1.30x 1.40x 1.50x 1.60x 1.70x 1.80x 1.90x 2.00x CTRE LTC HCP - Non- Manorcare OHI HCN CCP SBRA HCP - Manorcare Only (1) (2) (3) (4) (5) (6) (7) (8) |
 Well-Protected Dividend
(1) EBITDAR Tenant Lease Coverage as of Q1 2015 reported period and Q2 for CTRE
pro forma for the Liberty Health Care Portfolio and July 2015 acquisitions; Represents CTRE’s and OHI’s total portfolio, LTC’s and SBRA’s SNF portfolio, HCN’s long term / post-acute portfolio, and HCP’s 34 non-HCR Manor
Care SNF properties (2) Peers FFO per share based on Q1 2015; CTRE
based on six months ended Q2 2015; HCP FFO as adjusted for one-time impairment and transaction-related items FFO Payout Ratio 100% 90% 80% 70% 60% 1.0x 1.5x 2.0x CareTrust has industry leading dividend protection across multiple metrics with ample room for
growth •
EBITDAR tenant lease coverage
of 1.82x, including the Liberty Health Care Portfolio and July 2015 acquisitions • FFO payout ratio of
64%
(2) (2) (2) 11 |
 DEAL
SUMMARY 12
Tenant Month Acquired State Facility Type # of Properties # of Beds / Units Purchase Price Initial Cash Yield Operating Assets: Cross Healthcare November 2014 Idaho ALF 3 90 $12.0 million 8.50% Prelude Senior Living December 2014 Minnesota MC 1 28 $7.2 million 8.25% Twenty / 20 Management December 2014 Virginia ALF 1 39 $6.6 million 8.50% Eduro Healthcare January 2015 Colorado SNF 1 170 $18.0 million 9.65% Five Oaks Healthcare April 2015 Washington SNF 1 94 $9.1 million 9.50% Five Oaks Healthcare June 2015 Washington SNF 1 105 $6.7 million 9.90% Trillium Healthcare July 2015 Georgia SNF 1 105 $8.3 million 9.65% Better Senior Living July 2015 Florida ALF 1 70 $8.4 million 8.50% Better Senior Living September 2015 Florida ALF 1 64 $5.4 million 8.50% Pristine/Liberty October 2015 Ohio SNF/ALF 14 1,258 $175 million 9.60% Total Operating Assets 25 1,959 $256.7 million 9.43% Preferred Equity Investment: Signature Senior Living December 2014 Colorado ALF / MC 1 134 $7.5 million 12.00% Total 26 2,093 $264.2 million 9.51% (1) Pro forma acquisitions for all announced transactions as of September 1, 2015
(1) |
 Liberty
Health Care Portfolio Acquisition Overview (1) As of
5/31/2015 Liberty Nursing Center of Jamestown, Jamestown, OH
Liberty Retirement Community of Washington Township,
Dayton, OH Liberty Nursing Center of Englewood, Englewood, OH Liberty Nursing Center of Beavercreek, Beavercreek, OH Number of Properties: 14 Number of Beds / Units: 1,258 Number of SNF Beds: 1,102 Number of ALF / ILF Units: 156 Purchase Price: ~$178.4 million (including transaction costs) Cash Yield: 9.6% EBITDAR Coverage: 1.30x % Occupied: 82.1% (1) Operator: Pristine Senior Living Consideration: 100% cash with no debt assumption Initial Lease Term: 15-year NNN with two five-year extensions Lease Escalators: Lesser of change in CPI or 3.0% 13 |
 Post
close, CareTrust’s key credit and portfolio stats on a
forward-looking basis are: Transformational
(1) EBITDA is calculated as net income plus interest expense, depreciation and
amortization, and amortization of stock-based compensation, annualized
(2) Total capitalization is based on a $11.07 share price
(3) Fixed charge calculated as interest expense – amortization of deferred financing costs, annualized (4) Run rate, including all acquisitions made to date and excludes reimbursement revenue
Credit Statistic June 30, 2015 Post-Liberty Health Care Acquisition Debt-to-EBITDA (1) 7.0x 5.5x Debt-to-Total Capitalization (2) 47.3% 57.0% Fixed Charge Coverage Ratio (3) 2.6x 3.4x Total Secured Debt $131.9 million $96.9 million Secured vs. Unsecured Debt 34% / 66% 24% / 76% Ensign Tenant Concentration 83.9% (4) 66.7% 14 |
 FINANCIAL SUMMARY 15 |
 Guidance 16 CareTrust’s 2015 guidance is based on the following: • $56 million in rent from Ensign and $10.0 million from all investments closed through September 1, 2015
plus the Liberty transaction which is expected to close on October 1,
2015 •
$0.9 million in interest income from the $7.5 million preferred equity investment at
12% •
$0.2 million in NOI from the 3 ILFs that we own and operate
• $25.4 million in interest expense 1 • $7.6 million to $8.4 million in G&A expense 2 • Includes no acquisitions beyond those announced to date, and no rent escalations
(1) Includes approximately $2.2 million in amortization of deferred financing costs and $1.2 million write off of deferred financing fees (2) Includes approximately $1.5 million of non-cash stock-based compensation expense. (3) Includes approximately $2.2 million in amortization of deferred financing costs (4) Includes approximately $1.8 million of non-cash stock-based compensation expense. CareTrust’s 2016 guidance is based on the following: • $56 million in rent from Ensign and $24.6 million from all investments closed through September 1, 2015
plus the Liberty transaction which is expected to close on October 1,
2015 •
$0.9 million in interest income from the $7.5 million preferred equity investment at
12% •
$0.2 million in NOI from the 3 ILFs that we own and operate
• $25.0 million in interest expense 3 • $7.8 million to $8.8 million in G&A expense 4 • Includes no acquisitions beyond those announced to date, and no rent escalations |
 Guidance RECONCILIATION OF NET INCOME TO NON-GAAP FINANCIAL MEASURES 17 2015 Guidance 2016 Guidance Low High Low High Net income $0.25 $0.27 $0.42 $0.44 Real estate related depreciation and amortization 0.64 0.64 0.57 0.57 Funds from Operations (FFO) 0.89 0.91 0.99 1.01 Write-off of deferred financing fees 0.03 0.03 - - Normalized FFO $0.92 $0.94 $0.99 $1.01 Net income $0.25 $0.27 $0.42 $0.44 Real estate related depreciation and amortization 0.64 0.64 0.57 0.57 Amortization of deferred financing costs 0.06 0.06 0.05 0.05 Amortization of deferred stock compensation 0.03 0.03 0.04 0.04 Funds Available for Distribution (FAD) 0.98 1.00 1.08 1.10 Write-off of deferred financing fees 0.03 0.03 - - Normalized FAD $1.01 $1.03 $1.08 $1.10 Weighted average shares outstanding: Diluted 37,668 37,668 48,142 48,142 |
 Investment Highlights Robust Pipeline of Accretive Growth Opportunities Management and Board with Extensive Healthcare Operating and Real Estate Experience Superior Lease Coverage Across Portfolio Well-Protected Dividend with Room for Growth Liquidity for Growth & Opportunities to Diversify Strong Healthcare Industry Fundamentals 18 |
 APPENDIX 19 |
 31
34 35 37 39 47 55 64 72 78 81 1990 1995 2000 2005 2010 2015 2020E 2025E 2030E 2035E 2040E Attractive Industry Dynamics for SNF Operators Numbers in millions Relative Costs of Treatment Across Care Providers SNF IRF LTAC Source: AHCA, CMS OSCAR data, U.S. Census Bureau, Medpac Number of Skilled Nursing Facilities Age 65+ Population 16,715 16,554 16,441 16,256 16,066 15,965 15,861 15,772 15,771 15,679 15,669 15,655 15,667 15,666 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 US SNF Properties 20 $10,501 $26,051 $26,051 $115,463 $7,897 $74,689 $6,165 $17,135 $67,104 $10,618 $18,487 $44,633 $8,905 $34,196 $31,496 Tracheotomy with Vent Respiratory with Vent Joint Replacement Hip Fracture Stroke |
 Skilled
nursing reimbursement rates appear stable and increasing over time
• On October 1, 2015, a 1.4% net market basket increase for 2015-2016 SNF payments
went into effect SNF Reimbursement Rates Sources: Eljay LLC and composite of CMS, AHCA, AQNHC, Avalere Group Data, and Ensign April 2015 Investor Presentation (1) Amounts represent the Medicare rates for all facilities acquired on or before 2007 in each year
CAGR 21 $109 $118 $124 $129 $142 $145 $150 $156 $164 $172 $174 $177 $179 $183 $287 $312 $325 $301 $336 $349 $363 $385 $408 $432 $454 $505 $469 $478 $484 $451 $508 $543 $574 $620 $566 $579 $580 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (1) Avg. SNF Medicaid Rate Per Day Avg. SNF Medicare Rate Per Day ENSG Same Facility Medicare Rate per Day 4.1% 3.8% 3.7% |
 “THE” Platform Tenant
22 As of March 31, 2015, Ensign operated 143 facilities, 13 home health and 12 hospice operations, two home care businesses, one transitional care management company,16 urgent care centers and a mobile x-ray diagnostic company, all located in 12 states Ensign has a strong track record of integrating turnaround opportunities – Improves operations through increased occupancy, quality mix and acuity shift Long-tenured and successful management team has been an integral part of Ensign’s business strategy Ensign Operated Facilities Note: EBITDAR is a non-GAAP measure and represents net income before (a) interest expense, net, (b) provision for income taxes, (c) depreciation and (d) facility rent expense. See Ensign’s public filings for a reconciliation of EBITDAR to GAAP and additional
information on Ensign’s performance.
Revenue Ensign Business Overview Millions $ Adjusted EBITDAR 39 SNFs, ALFs & ILFs Home Health & Hospice Urgent Care Clinics 60 73 87 107 130 142 149 0 30 60 90 120 150 180 2007 2008 2009 2010 2011 2012 2013 Q1 2014 411 469 542 650 758 825 905 0 200 400 600 800 1,000 1,200 2007 2008 2009 2010 2011 2012 2013 Q1 2014 Millions $ |
 23 2015 Financial Summary CARETRUST REIT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) June 30, December 31, 2015 2014 Assets Real estate investments, net $459,515 $436,215 Other real estate investments 7,987 7,532 Cash and cash equivalents 29,904 25,320 Accounts receivable 2,036 2,291 Prepaid expenses and other assets 2,292 809 Deferred financing costs, net 9,442 10,405 Total assets $511,176 $482,572 Liabilities and Equity Senior unsecured notes payable $260,000 $260,000 Mortgage notes payable 96,854 98,205 Secured revolving credit facility 35,000 - Accounts payable and accrued liabilities 5,946 6,959 Dividends payable 5,090 3,946 Total liabilities 402,890 369,110 Equity: Common stock 313 313 Additional paid-in capital 246,701 246,041 Cumulative distributions in excess of earnings (138,728) (132,892) Total equity 108,286 113,462 Total liabilities and equity $511,176 $482,572 |
 24 2015 Financial Summary CARETRUST REIT, INC. DEBT SUMMARY (dollars in thousands) (unaudited) Interest Rate/ Maturity June 30, 2015 Debt Collateral Spread Date Balance Fixed Rate Debt Senior unsecured notes payable Unsecured 5.875% 2021 $260,000 GECC mortgage notes payable (1) 10 properties 7.252% 2017 46,873 Mortgage note payable 1 property 6.000% 2019 507 307,380 Floating Rate Debt GECC mortgage notes payable (1) 10 properties L + 3.35% 2017 49,474 Senior secured revolving credit facility (2) 11 properties L + 2%-2.5% 2018 35,000 84,474 Total Debt $391,854 Debt Statistics % Fixed Rate Debt 78.4% % Floating Rate Debt 21.6% Total 100.0% Weighted Average Interest Rates: Fixed 6.1% Floating 3.4% Blended 5.5% (1) The fixed rate portion of the GECC mortgage notes payable converts to the floating rate in June 2016. The
floating rate portion is subject to a Libor
floor of 0.50%. The note has two, 12 month extension options. (2) Borrowings available under the senior secured revolving credit facility totaled $49.2 million at June 30,
2015. Funds can also be borrowed at the
Base Rate (as defined) plus 1.0% to 1.5%. |
 25 2015 Financial Summary CARETRUST REIT, INC. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited) One Month Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended June 30, 2014 September 30, 2014 December 31, 2014 March 31, 2015 June 30, 2015 Revenues: Rental income $4,667 $14,000 $14,139 $14,842 $15,249 Tenant reimbursements 396 1,228 1,230 1,258 1,288 Independent living facilities 211 646 663 635 607 Interest and other income - 10 45 223 232 Total revenues 5,274 15,884 16,077 16,958 17,376 Expenses: Depreciation and amortization 1,794 5,362 5,369 5,599 5,679 Interest expense 1,967 5,943 5,900 5,901 5,989 Property taxes 396 1,228 1,230 1,258 1,288 Acquisition costs - - 47 - - Independent living facilities 161 586 559 602 566 General and administrative 500 798 2,342 1,560 1,588 Total expenses 4,818 13,917 15,447 14,920 15,110 Net income $456 $1,967 $630 $2,038 $2,266 Diluted earnings per share $0.02 $0.09 $0.03 $0.06 $0.07 Diluted weighted average shares outstanding 22,436 22,436 24,586 31,257 31,278 |
 26 2015 Financial Summary CARETRUST REIT, INC. RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES (in thousands, except per share data) (unaudited) One Month Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended June 30, 2014 September 30, 2014 December 31, 2014 March 31, 2015 June 30, 2015 Net income $456 $1,967 $630 $2,038 $2,266 Depreciation and amortization 1,794 5,362 5,369 5,599 5,679 Interest expense 1,967 5,943 5,900 5,901 5,989 Amortization of stock-based compensation - - 154 366 294 EBITDA 4,217 13,272 12,053 13,904 14,228 Acquisition costs - - 47 - - Costs associated with the Spin-Off 254 30 168 - - Adjusted EBITDA $4,471 $13,302 $12,268 $13,904 $14,228 Net income $456 $1,967 $630 $2,038 $2,266 Real estate related depreciation and amortization 1,794 5,362 5,365 5,593 5,668 Funds from Operations (FFO) 2,250 7,329 5,995 7,631 7,934 Acquisition costs - - 47 - - Costs associated with the Spin-Off 254 30 168 - - Normalized FFO $2,504 $7,359 $6,210 $7,631 $7,934 Net income $456 $1,967 $630 $2,038 $2,266 Real estate related depreciation and amortization 1,794 5,362 5,365 5,593 5,668 Amortization of deferred financing costs 175 533 553 547 555 Amortization of stock-based compensation - - 154 366 294 Funds Available for Distribution (FAD) 2,425 7,862 6,702 8,544 8,783 Acquisition costs - - 47 - - Costs associated with the Spin-Off 254 30 168 - - Normalized FAD $2,679 $7,892 $6,917 $8,544 $8,783 FFO per share $0.10 $0.33 $0.24 $0.24 $0.25 Normalized FFO per share $0.11 $0.33 $0.25 $0.24 $0.25 FAD per share $0.11 $0.35 $0.27 $0.27 $0.28 Normalized FAD per share $0.12 $0.35 $0.28 $0.27 $0.28 Diluted weighted average shares outstanding (1) 22,436 22,436 24,586 31,446 31,462 (1) For the quarters ended March 31, 2015 and June 30, 2015, the diluted weighted average shares includes unvested restricted stock awards as the effect is more dilutive. |