Greystone Closes $1 Billion in Freddie Mac Small Balance Loans

May 23, 2016 0

NEW YORK, May 23, 2016 (GLOBE NEWSWIRE) — Greystone, a real estate lending, investment and advisory company, announced it has originated and closed $1,000,000,000 in Freddie Mac Small Balance Loans since the Freddie Mac Small Balance Loan program was launched in October 2014. In that time, Greystone has closed over 350 Freddie Mac Small Balance Loan transactions from the East Coast to the West Coast.

“We applaud Greystone’s continued commitment to the small loan market and reaching this milestone,” said Steve Johnson, Freddie Mac’s senior director of small balance lending. “In serving the critical small loan market, Greystone delivers consistent service and reliable execution.”

Freddie Mac’s Small Balance Loan program includes fixed-rate and hybrid adjustable-rate mortgage loans ranging from $1 million to $5 million on multifamily acquisitions or refinancings.

“Freddie Mac’s small balance loan product continues to be our fastest-growing platform, as it addresses the specific financing needs of smaller multifamily property owners with a highly competitive product,” said Rick Wolf, Senior Managing Director and head of Greystone’s small loan lending group. “Greystone has a seamless loan application and origination process in place which covers the US, and we continue to be a leading provider of Freddie Mac small balance loans.”

The Freddie Mac Small Balance Loan Terms include:

  • Properties with at least five units
  • Partial or full term interest only available
  • Up to 80% LTV in certain markets
  • 1:25x debt service coverage ratio minimum in many markets, and 1:20x in top markets
  • 60-120 day rate lock available
  • Hybrid ARMs or fixed-rate mortgage loan
  • Highly competitive rates and low transaction costs

For more information or to contact Greystone about small balance loans, visit www.smallbalance.loan.

About Greystone

Greystone is a commercial real estate lending, investment and advisory company with an established reputation as a leader in multifamily and healthcare finance. Our range of services includes commercial lending across a variety of platforms such as Freddie Mac, Fannie Mae, CMBS, FHA, USDA, bridge and proprietary loan products. Loans are offered through Greystone Servicing Corporation, Inc., Greystone Funding Corporation and/or other Greystone affiliates.

 

PRESS CONTACT:Karen MarottaGreystone212-896-9149Karen.Marotta@Greyco.com

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Broadstone Net Lease Acquires $46.9 Million of Property via Two Transactions

May 19, 2016 0

ROCHESTER, N.Y., May 19, 2016 (GLOBE NEWSWIRE) — Broadstone Net Lease (BNL), a private real estate investment trust (REIT) managed by Broadstone Real Estate, LLC, continues to grow its national portfolio of triple-net leased properties. Today, BNL announced the acquisition of four Austin, Texas-area Rudy’s Country Store and Bar-B-Q locations operated by K&N Management, and the acquisition of one Virginia Beach, Virginia property tenanted by BluePearl Veterinary Partners via a sale leaseback transaction. The properties were acquired for a total purchase price of approximately $46.9 million.

Rudy’s Country Store and Bar-B-Q (Rudy’s) is a popular Southwestern brand famous for offering a one stop shopping experience, complete with Texas barbeque, access to gas, and convenience store items and amenities. Rudy’s currently has 40 locations throughout the Southwestern U.S. in Texas, Oklahoma, Colorado, New Mexico, and Arizona. The acquired properties are located in Austin and Round Rock, Texas, and are tenanted by K&N Management under one master lease for an approximate remaining term of 21.5 years. K&N Management is the licensed area developer of the four Austin-area Rudy’s locations, as well as the owner and operator of Mighty Fine Burgers, Fries & Shakes.

BluePearl, a subsidiary of Mars Inc., operates emergency and specialty veterinary hospitals based in the U.S., with 53 locations in 18 states. The 12,602 square foot Virginia Beach property carries an initial 15-year lease term. BNL currently owns three BluePearl properties in three states. 

We are pleased to further diversify BNL’s portfolio of triple-net leased commercial real estate with the addition of Rudy’s Bar-B-Q as a new tenant brand. Acquiring retail assets in the Austin MSA continues to enhance the quality of our real estate portfolio. We are also pleased to continue to grow our relationship with BluePearl,” said Chris Czarnecki, President and CFO of Broadstone Real Estate. “We look forward to announcing additional acquisitions throughout the remainder of Q2 and beyond.”

Darrell Betts of Avison Young represented Rudy’s, and Josh Pardue of Stan Johnson Company represented BluePearl. Mike Nicholson and Collin Zundel of Tones Vaisey PLLC represented BNL in the Rudy’s and BluePearl transactions, respectively.

About Broadstone Net Lease:

Broadstone Net Lease invests in freestanding, single-tenant, triple-net leased properties located throughout the United States, primarily via sale and leaseback transactions. With a diversified portfolio of 354 medical, industrial and retail properties in 34 states, the REIT targets individual or portfolio acquisitions within the $10 to $200+ million range. 

There are currently nearly 1,700 shareholders in BNL, which is externally managed by Broadstone Real Estate, LLC. BNL remains open for new investment by accredited investors on a monthly basis, with a minimum investment of $500,000. Shares are offered directly by Broadstone via private placement.  Accredited investors are invited to download an investor kit: broadstone.com/may16.

Please see certain important disclosures regarding BNL at broadstone.com/disclosures.

Media Contact: Emma BlissMarketing CoordinatorEmma.Bliss@Broadstone.com585.287.6479

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Historic Minneapolis Warehouse Converted into Affordable Housing

May 18, 2016 0

MINNEAPOLIS, May 18, 2016 (GLOBE NEWSWIRE) — WNC, a national investor in real estate and community development initiatives, announced today the completed conversion of a 106-year-old warehouse building into The Cameron Apartments, a 44-unit affordable housing community in Minneapolis, Minn. WNC provided nearly $4 million in low-income housing tax credit (LIHTC) equity and historic tax credit (HTC) equity to fund the adaptive reuse project.   

Located at 756 N. Fourth St., The Cameron Apartments is a four-story building comprised of 23 studio, 17 one-bedroom and four two-bedroom garden-style units for families. The historic building was originally constructed in 1910.

“The Cameron Apartments conversion was a unique project that transformed a rich part of Minneapolis’ century-old history into a modern, vital addition to the community,” said WNC Executive Vice President and Chief Operating Officer Michael Gaber. “We are pleased to deliver, with the help of our development partner, homes to local families in need, and to once again add to the nation’s supply of affordable housing.”

The Cameron Apartments provides residents with a fitness center, picnic/grilling area, onsite caretaker, laundry facility, elevator and bike storage. Amenities within each unit include an electric range, refrigerator, microwave oven, dishwasher, secure intercom entry, patio/balcony and central air conditioning.  A washer and dryer are standard in two-bedroom units.

SR Development LLC received the LIHTC equity to construct The Cameron Apartments. Brad Schafer and N. Christopher Richardson acted as the project developers.  

About WNC

WNC, founded in 1971 and headquartered in Irvine, Calif., is a national investor in real estate and community development initiatives, as well as a leading investor in low-income housing tax credits (LIHTC). WNC has acquired more than $7.6 billion of assets totaling in excess of 1,290 properties in 45 states, Washington D.C., and the U.S. Virgin Islands. Since 2000, WNC has been awarded four New Markets Tax Credit (NMTC) allocations, totaling $178 million, and has facilitated development of 17 low-income community projects. WNC’s investor base exceeds 19,500 institutional and retail clients, including Fortune 500 companies, multinational banks, and insurance companies. Additional information is available at www.wncinc.com.

ContactJulie Leber Spotlight Marketing Communications949.427.5172 ext. 703 julie@spotlightmarcom.com

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Mango Capital, Inc. Appoints Nat Wasserstein to Advisory Board

May 12, 2016 0

FAR HILLS, N.J., May 12, 2016 (GLOBE NEWSWIRE) — Mango Capital, Inc. (OTC:MCAP) today announces the appointment of attorney Nat Wasserstein to the Company’s Board of Advisors. Wasserstein will assist the Company in several areas, however his initial focus will be identifying accretive and strategic acquisitions for Mango Capital.

Nat Wasserstein brings a combination of Law and Business experience to Mango. He earned his law degree from Brooklyn Law School. He is a graduate of Cornell University with an MBA from Baruch College. Mr. Wasserstein is a member of both the New York and New Jersey Bars, holds a Series 7 NASD license and is a Certified Fraud Examiner.

Nat has been on the business side also, working with small businesses as an operator, director, investor and advisor. The best kind of business lawyer doesn’t just spot issues and manage risk, he or she also identifies opportunities and the means to seize them. And, the best way for that to happen is for the lawyer to truly understand the nature of a client’s business.

“I am thrilled at the opportunity to join this great team and look forward to finding strategic acquisitions for Mango,” commented Nat Wasserstein.

Rick J. Makoujy, Jr., Mango’s President, stated “We are honored to have the opportunity to benefit from Nat’s vast legal and business experience. Mango is fortunate to share his expertise and insight. 2016 is a crucial year for Mango and executing on our aggressive growth model through acquisitions is a large part of that. Simply put, Nat is the right guy at the right time for our Company.”

About Mango Capital, Inc.

Mango Capital Inc. is a real estate holding company specializing in acquiring undervalued American land and complimentary operating businesses in promising markets. MCAP recently completed the acquisition of more than 400 real estate properties in Colorado, Arizona, Texas and New Mexico. With a motivated team, Mango will seize the opportunity to efficiently grow Mango into a major domestic land owner. Mango plans to acquire promising real property efficiently utilizing company shares as currency and intends to opportunistically sell properties for cash and/or notes.

For additional information about Mango, contact Jacqueline Palumbo, Communications Director, Mango Capital, Inc., at (845) 270-5792 or Rick@MangoCapitalInc.com.

Please visit our website http://mangocapitalinc.com/

This release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. The matters discussed in this news release involve goals, forecasts, assumptions, risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements.

For SmallCapVoice.comStuart T. Smith512-267-2430info@smallcapvoice.com

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Retail Opportunity Investments Corp. Schedules Second Quarter Earnings Release and Conference Call

May 12, 2016 0

SAN DIEGO, May 12, 2016 (GLOBE NEWSWIRE) — Retail Opportunity Investments Corp. (NASDAQ:ROIC) will issue financial and operational results for the second quarter ended June 30, 2016 after the market closes on Wednesday, July 27, 2016.  The Company will conduct a conference call and audio webcast on Thursday, July 28, 2016 at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time.

To access the conference, dial (877) 312-8783 (domestic), or (408) 940-3874 (international) at least ten minutes prior to the scheduled start of the call. When prompted, provide the Conference ID: 9535671. The live webcast will also be available in listen-only mode at http://www.roireit.net/.

The conference call will be recorded and available for replay beginning at 2:00 p.m. Eastern Time on July 28, 2016 and will be available until 11:59 p.m. Eastern Time on August 4, 2016. To access the conference call recording, dial (855) 859-2056 (domestic) or (404) 537-3406 (international) and use the Conference ID: 9535671. The conference call will also be archived at http://www.roireit.net/ for approximately 90 days.

About Retail Opportunity Investments Corp.

Retail Opportunity Investments Corp. (NASDAQ:ROIC), is a fully-integrated, self-managed real estate investment trust (REIT) that specializes in the acquisition, ownership and management of grocery-anchored shopping centers located in densely-populated, metropolitan markets across the West Coast.  As of March 31, 2016, ROIC owned 75 shopping centers encompassing approximately 8.8 million square feet.  ROIC is the largest publicly-traded, grocery-anchored shopping center REIT focused exclusively on the West Coast.  ROIC is a member of the S&P SmallCap 600 Index and has investment-grade corporate debt ratings from Moody’s Investor Services and Standard & Poor’s.  Additional information is available at: www.roireit.net.

Contact:Ashley Bulot, Investor Relations858-255-4913abulot@roireit.net

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CareTrust REIT, Inc. Announces First Quarter 2016 Operating Results

May 11, 2016 0

SAN CLEMENTE, Calif., May 11, 2016 (GLOBE NEWSWIRE) — CareTrust REIT, Inc. (NASDAQ:CTRE) today reported operating results for the first quarter of 2016, as well as other recent events. Quarter and other highlights include:

  • Net income for the quarter was $0.11 per diluted weighted average share, with normalized FFO of $0.27 and normalized FAD of $0.29 per diluted weighted average share;
  • CareTrust successfully raised new equity in a $111 million follow-on offering;
  • The company increased its quarterly dividend by 6.3% to $0.17 per share;
  • The company retired the last of its legacy secured term debt, and increased its unsecured revolving facility to $400 million with an accordion feature which allows CareTrust to increase the line to $650 million;
  • During the quarter and since, CareTrust announced new investments of approximately $116 million, at a blended going-in cash yield of 9.1%, with an additional $46 million of new investments under contract to close within the second quarter or shortly thereafter; and
  • After quarter-end, CareTrust announced that Standard & Poor’s raised its corporate credit rating on CareTrust to “B+” from “B,” with a stable outlook, and also raised its issue rating on CareTrust’s 5.875% Senior Unsecured Notes to “BB-“ from “B+.”

Major Milestones Reached

Greg Stapley, CareTrust’s Chairman and Chief Executive Officer commented on the quarter and other recent highlights. “The first quarter saw our team hit more critical milestones than ever,” he said. He cited the March overnight offering and strong demand for the company’s equity, retirement of the legacy GE secured debt and the costs savings it represents, getting leverage down into the company’s long-term target range, achieving ratings upgrades from Standard & Poor’s and increasing the dividend as major accomplishments in moving the company forward. “With these achievements, our team is very optimistic about both the company’s near-term prospects and long-term potential,” he added.  

Mr. Stapley also noted that CareTrust added four new tenant relationships in the quarter and since, and further diversified its portfolio into four new states, bring its total footprint to 143 properties in 19 states. He further reported that the company’s nationwide acquisition pipeline remains strong, with ample opportunities for continued growth at superior returns.

Financial Results & Financing Activities

Discussing the quarter’s financial results, Chief Financial Officer Bill Wagner reported that the company generated normalized FFO of $13.1 million or $0.27 per diluted common share, and normalized FAD of $14.1 million or $0.29 per diluted common share.  

Mr. Wagner commented on the company’s March equity raise, noting that the $111 million overnight offering was more than 2x oversubscribed within the first hours, was upsized by one million shares, and that the underwriters exercised their full overallotment the same day. “We were gratified to see that demand for CareTrust shares was so strong, resulting in the upsizing and a file-to-offer discount of only 3.7%, which was miles ahead of our first follow-on last August,” he said. He noted that the offering netted the company approximately $106 million in new capital, and added several new institutional shareholders. Proceeds were primarily used to pay down the company’s revolving credit line in advance of funding approximately $97 million in acquisitions then under contract, which were pre-announced at the time of the offering.

Mr. Wagner also discussed the Company’s expansion of its revolver capacity and debt refinancing activity in the quarter. The company expanded its unsecured revolving facility to $400 million, with an accordion feature which allows CareTrust the option to increase the line to $650 million. CareTrust also replaced all of its remaining secured debt with lower-cost 7-year unsecured term debt, and further staggered its debt maturities. He noted that CareTrust now has no property-level debt and, taking into account existing extension rights, no debt maturing before 2020. He reported that, proforma for completed and announced transactions, the company’s debt-to-EBITDA ratio stands at approximately 4.95x, down from more than 6.7x at the company’s inception less than two years ago.

Mr. Wagner added that, at quarter end only $5.0 million was drawn on the Company’s $400 million unsecured revolver, with approximately $51 million deployed since the late March equity offering and another $46 million in announced transactions remaining to close in the coming weeks, leaving ample room for additional investments in the near term. 

2016 FFO Guidance Revised Upward

Mr. Wagner updated and increased the Company’s previously-issued 2016 earnings guidance, projecting normalized FFO per diluted share of approximately $1.06 to $1.08, and normalized FAD per diluted share of approximately $1.14 to $1.16. The increased guidance assumes no new acquisitions beyond those made and announced to date, with announced acquisitions funded by additional draws on the company’s credit facility but no other new debt incurrences, no new equity issuances, and no rent escalations on the company’s long-term leases.

Dividend Increase

During the quarter, CareTrust increased its quarterly dividend by 6.3% to $0.17 per common share. “On an annualized basis, our increased quarterly dividend represents a payout ratio of approximately 59% based on the midpoint of our projected normalized FAD for 2016,” said Mr. Wagner. “At this level, our dividend remains among the best-protected of all our industry peers, while giving us ample additional growth capital to reinvest and providing a solid overall return to our shareholders,” he added.

Ratings Upgrades

CareTrust also announced that, earlier this month, Standard & Poor’s Rating Services raised its corporate credit rating on CareTrust to “B+” from “B,” with a stable outlook, and its rating on CareTrust’s 5.875% Senior Unsecured Notes to “BB-” from “B+.” Commenting on the changes, Mr. Stapley said, “We appreciate the recognition inherent in these upgrades of our continuous efforts to grow intelligently, while simultaneously improving our key credit metrics and further strengthening our balance sheet.” CareTrust and its bonds are also rated by Moody’s Investor Service.

Conference Call

An earnings webcast will be held on Thursday, May 12, 2016, at 1:00 p.m. Eastern Time, during which CareTrust’s management will discuss the Company’s first quarter 2016 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 140 net-leased healthcare properties and three operated seniors housing properties in 19 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 INCOME STATEMENTS  
(in thousands, except per share data)  
(unaudited)  
             
             
    Three Months Ended March 31,    
      2016       2015      
Revenues:          
  Rental income $   20,897     $   14,842      
  Tenant reimbursements     1,797         1,258      
  Independent living facilities     681         635      
  Interest and other income     254         223      
    Total revenues     23,629         16,958      
Expenses:          
  Depreciation and amortization     7,293         5,599      
  Interest expense     6,187         5,901      
  Property taxes     1,797         1,258      
  Independent living facilities     620         602      
  General and administrative     2,230         1,560      
    Total expenses     18,127         14,920      
Net income  $   5,502     $   2,038      
             
Earnings per common share:          
  Basic $   0.11     $   0.06      
  Diluted $   0.11     $   0.06      
             
Weighted average shares outstanding:          
  Basic     48,101         31,317      
  Diluted     48,101         31,317      
             
             

 

             
CARETRUST REIT, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
 (in thousands, except per share data) 
 (unaudited) 
             
 
        Quarter   Quarter
        Ended   Ended
        March 31, 2016   March 31, 2015
             
Net income   $   5,502     $   2,038  
  Depreciation and amortization       7,293         5,599  
  Interest expense       6,187         5,901  
  Amortization of stock-based compensation       431         366  
EBITDA       19,413         13,904  
Adjusted EBITDA   $   19,413     $   13,904  
             
Net income   $   5,502     $   2,038  
  Real estate related depreciation and amortization       7,270         5,593  
Funds from Operations (FFO)       12,772         7,631  
  Write-off of deferred financing fees       326         –   
Normalized FFO   $   13,098     $   7,631  
             
Net income   $   5,502     $   2,038  
  Real estate related depreciation and amortization       7,270         5,593  
  Amortization of deferred financing fees       556         547  
  Amortization of stock-based compensation       431         366  
Funds Available for Distribution (FAD)       13,759         8,544  
  Write-off of deferred financing fees       326         –   
Normalized FAD   $   14,085     $   8,544  
             
FFO per share   $   0.26     $   0.24  
Normalized FFO per share   $   0.27     $   0.24  
             
FAD per share   $   0.29     $   0.27  
Normalized FAD per share   $   0.29     $   0.27  
             
Diluted weighted average shares outstanding (1)       48,258         31,446  
             
   (1) For the periods presented, the diluted weighted average shares have been calculated using the treasury stock method. 
             
             

 

             
CARETRUST REIT, INC.
CONSOLIDATED STATEMENTS OF INCOME – 5 QUARTER TREND
(in thousands, except per share data)
(unaudited)
             
             
    Quarter Quarter Quarter Quarter Quarter
    Ended Ended Ended Ended Ended
    March 31, 2015   June 30, 2015   September 30, 2015   December 31, 2015   March 31, 2016
Revenues:          
  Rental income $   14,842   $   15,249   $   15,778   $   20,110   $   20,897  
  Tenant reimbursements     1,258       1,288       1,320       1,631       1,797  
  Independent living facilities     635       607       626       642       681  
  Interest and other income     223       232       261       249       254  
    Total revenues     16,958       17,376       17,985       22,632       23,629  
Expenses:          
  Depreciation and amortization     5,599       5,679       5,815       7,040       7,293  
  Interest expense     5,901       5,989       7,221       6,145       6,187  
  Property taxes     1,258       1,288       1,320       1,631       1,797  
  Independent living facilities     602       566       610       598       620  
  General and administrative     1,560       1,588       2,292       2,215       2,230  
    Total expenses     14,920       15,110       17,258       17,629       18,127  
Net income $   2,038   $   2,266   $   727   $   5,003   $   5,502  
             
Diluted earnings per share $   0.06   $   0.07   $   0.02   $   0.10   $   0.11  
             
Diluted weighted average shares outstanding     31,317       31,278       39,125       47,660       48,101  
             
             

 

                 
CARETRUST REIT, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES – 5 QUARTER TREND
 (in thousands, except per share data) 
 (unaudited) 
                 
 
        Quarter Quarter Quarter Quarter Quarter
        Ended Ended Ended Ended Ended
        March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015   March 31, 2016
                 
Net income   $   2,038   $   2,266   $   727   $   5,003   $   5,502  
  Depreciation and amortization       5,599       5,679       5,815       7,040       7,293  
  Interest expense       5,901       5,989       7,221       6,145       6,187  
  Amortization of stock-based compensation       366       294       435       427       431  
EBITDA       13,904       14,228       14,198       18,615       19,413  
Adjusted EBITDA   $   13,904   $   14,228   $   14,198   $   18,615   $   19,413  
                 
Net income   $   2,038   $   2,266   $   727   $   5,003   $   5,502  
  Real estate related depreciation and amortization       5,593       5,668       5,796       7,018       7,270  
Funds from Operations (FFO)       7,631       7,934       6,523       12,021       12,772  
  Write-off of deferred financing fees       –        –        1,208       –        326  
Normalized FFO   $   7,631   $   7,934   $   7,731   $   12,021   $   13,098  
                 
Net income   $   2,038   $   2,266   $   727   $   5,003   $   5,502  
  Real estate related depreciation and amortization       5,593       5,668       5,796       7,018       7,270  
  Amortization of deferred financing fees       547       555       547       551       556  
  Amortization of stock-based compensation       366       294       435       427       431  
Funds Available for Distribution (FAD)       8,544       8,783       7,505       12,999       13,759  
  Write-off of deferred financing fees       –        –        1,208       –        326  
Normalized FAD   $   8,544   $   8,783   $   8,713   $   12,999   $   14,085  
                 
FFO per share   $   0.24   $   0.25   $   0.17   $   0.25   $   0.26  
Normalized FFO per share   $   0.24   $   0.25   $   0.20   $   0.25   $   0.27  
                 
FAD per share   $   0.27   $   0.28   $   0.19   $   0.27   $   0.29  
Normalized FAD per share   $   0.27   $   0.28   $   0.22   $   0.27   $   0.29  
                 
Diluted weighted average shares outstanding (1)       31,446       31,462       39,271       47,802       48,258  
                 
   (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)  
                 
                 
          March 31,   December 31,  
            2016       2015    
Assets            
Real estate investments, net   $   722,217     $   645,614    
Other real estate investments       8,731         8,477    
Cash and cash equivalents       4,663         11,467    
Accounts receivable       2,227         2,342    
Prepaid expenses and other assets       2,072         2,083    
Deferred financing costs, net       3,598         3,183    
      Total assets   $   743,508     $   673,166    
                 
Liabilities and Equity          
Senior unsecured notes payable, net   $   254,495     $   254,229    
Senior unsecured term loan, net       99,361         –     
Unsecured revolving credit facility       5,000         45,000    
Mortgage notes payable, net       –          94,676    
Accounts payable and accrued liabilities       10,696         9,269    
Dividends payable       9,845         7,704    
      Total liabilities     379,397       410,878    
                 
Equity:            
Common stock       575         477    
Additional paid-in capital       516,285         410,217    
Cumulative distributions in excess of earnings       (152,749 )       (148,406 )  
      Total equity     364,111       262,288    
      Total liabilities and equity   $   743,508     $   673,166    
                 
                 

 

         
CARETRUST REIT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
         
         
    Three Months Ended March 31,
      2016       2015  
         
Cash flows from operating activities:      
  Net income $   5,502     $   2,038  
  Adjustments to reconcile net income to net cash provided by      
    operating activities:      
  Depreciation and amortization     7,293         5,599  
  Amortization of deferred financing costs     556         547  
  Write-off of deferred financing costs     326         –   
  Amortization of stock-based compensation     431         366  
  Non cash interest income     ( 254 )       ( 223 )
  Change in operating assets and liabilities:      
  Accounts receivable     115         ( 42 )
  Accounts receivable due from related party     –          322  
  Prepaid expenses and other assets     12         50  
  Accounts payable and accrued liabilities     1,013         2,398  
Net cash provided by operating activities     14,994         11,055  
Cash flows from investing activities:      
  Acquisition of real estate     ( 68,000 )       ( 17,499 )
  Improvements to real estate     ( 27 )       ( 74 )
  Purchases of equipment, furniture and fixtures     ( 17 )       ( 63 )
  Escrow deposits for acquisition of real estate     ( 15,730 )       ( 500 )
Net cash used in investing activities     ( 83,774 )       ( 18,136 )
Cash flows from financing activities:      
  Proceeds from the issuance of common stock, net     106,026         –   
  Proceeds from the issuance of senior unsecured term loan     100,000         –   
  Borrowings under unsecured credit facility     52,000         –   
  Payments on unsecured credit facility     ( 92,000 )       –   
  Payments on the mortgage notes payable     ( 95,022 )       ( 685 )
  Payments of deferred financing costs     ( 1,324 )       ( 14 )
  Dividends paid on common stock     ( 7,704 )       ( 3,946 )
Net cash provided by (used in) financing activities     61,976         ( 4,645 )
Net decrease in cash and cash equivalents     ( 6,804 )       ( 11,726 )
Cash and cash equivalents, beginning of period     11,467         25,320  
Cash and cash equivalents, end of period $   4,663     $   13,594  
         
         

 

                       
CARETRUST REIT, INC.
DEBT SUMMARY
(dollars in thousands)
(unaudited)
                       
                       
                March 31, 2016
        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   $   (5,505 )   $   254,495  
                       
Floating Rate Debt                      
                       
Senior unsecured term loan (1)   Unsecured   L + 1.95%-2.60% 2023       100,000       (639 )       99,361  
                       
Unsecured revolving credit facility (2) Unsecured   L + 1.75%-2.40% 2019       5,000       –       (3 )     5,000  
                    105,000       (639 )       104,361  
                       
Total Debt               $   365,000   $   (6,144 )   $   358,856  
                       
Debt Statistics                      
% Fixed Rate Debt                 71.2 %      
% Floating Rate Debt                 28.8 %      
Total                 100.0 %      
                       
Weighted Average Interest Rates:                      
Fixed                 5.9 %      
Floating                  2.5 %      
Blended                 4.9 %      
                       
(1) Funds can also be borrowed at the Base Rate (as defined) plus 0.95% to 1.6%.          
(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.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
 (shares in thousands) 
 (unaudited) 
       
       
 2016 Guidance 
       
       
    Low High
Net income $   0.53   $   0.55  
  Real estate related depreciation and amortization     0.52       0.52  
Funds from Operations (FFO)     1.05       1.07  
  Write-off of deferred financing fees     0.01       0.01  
Normalized FFO $   1.06   $   1.08  
       
Net income $   0.53   $   0.55  
  Real estate related depreciation and amortization     0.52       0.52  
  Amortization of deferred financing fees     0.04       0.04  
  Amortization of stock-based compensation     0.04       0.04  
Funds Available for Distribution (FAD)     1.13       1.15  
  Write-off of deferred financing fees     0.01       0.01  
Normalized FAD $   1.14   $   1.16  
Weighted average shares outstanding:    
  Diluted     55,600       55,600  
 



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. The Company considers FAD to be a useful supplemental measure to evaluate the Company’s operating results excluding these 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 costs associated with the spin-off and other 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. 

CareTrust REIT, Inc. (949) 542-3130ir@caretrustreit.com

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CareTrust REIT Credit Ratings Upgraded by Standard & Poor’s

May 10, 2016 0

SAN CLEMENTE, Calif., May 10, 2016 (GLOBE NEWSWIRE) — CareTrust REIT, Inc. (Nasdaq:CTRE) announced today that it has received upgrades to its credit ratings by Standard & Poor’s Rating Services.

On May 9, 2016, Standard & Poor’s raised its corporate credit rating on CareTrust to “B+” from “B,” with a stable outlook. In the same report, Standard & Poor’s also raised its issue rating on CareTrust’s 5.875% Senior Unsecured Notes to “BB-” from “B+.” The research update cited CareTrust’s “improved credit metrics and liquidity profile” following its March 2016 equity issuance, as well as the February 2016 retirement of the last of CareTrust’s secured term debt, as factors in issuing its ratings upgrades.

“We are committed to maintaining an appropriate balance of debt and equity in our capital structure,” affirmed Greg Stapley, CareTrust’s Chairman and CEO. He noted that the company’s key credit metrics “have steadily advanced, nearly reaching management’s long-term goals well ahead of schedule.” Commenting on Standard & Poor’s upgrades and report, he added, “We appreciate the recognition of our continued progress and growing balance sheet strength that these upgrades represent.”

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 140 net-leased healthcare properties and three operated seniors housing properties in 19 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.

CareTrust REIT, Inc. (949) 542-3130ir@caretrustreit.com

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