CareTrust REIT, Inc. (NASDAQ:CTRE) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 09, 2018 • 01:00 pm ET


CareTrust REIT, Inc. (NASDAQ:CTRE) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Welcome to CareTrust REIT's Q1 2018 Earnings Call. Please note that this call is being recorded. Before we begin, please be advised that any forward-looking statements made on today's call are based on management's current expectations, assumptions and beliefs about CareTrust REIT's business and the environment in which it operates.

These statements may include projections regarding future financial performance, dividends, acquisitions, investments, returns, financings and other matters, all of which are subject to risks and uncertainties that could cause actual results to materially differ from those expressed or implied here in.

Listeners should not place undue reliance on forward-looking statements and are encouraged -- to review CareTrust SEC filings for a more complete discussion of factors that could impact results, as well as any financial or other statistical information required by SEC Regulation G.

During the call the Company will reference non-GAAP metrics such as EBITDA, normalized EBITDA, FFO, normalized FFO, FAD, and normalized FAD. When viewed together with its GAAP results, the Company believes these measures can provide a more complete understanding of its business, but cautious that they should not be relied upon to the exclusion of GAAP reports.

Except as required by law, CareTrust REIT and its affiliates do not undertake to publicly update or revise any forward-looking statements or changes arise as a result of new information, future events, changing circumstances or for any other reason. Listeners are also advised that CareTrust yesterday filed its Form 10-Q and accompanying press release and its quarterly financial supplement each of which can be access on its Investor Relations section of CareTrust website at A replay of this call will also be available on the website for a limited period.

Management on this call this morning includes Bill Wagner, Chief Financial Officer; Dave Sedgwick, Vice President of Operations; Mark Lamb, Director of Investments; and Eric Gillis, Director of Asset Management.

And I would now like to turn the call over to Greg Stapley, CareTrust REIT's Chairman and CEO.

Greg Stapley

Thank you, Sarah. Good morning, and welcome everyone. It's been a busy year so far here at CareTrust. We've completed $47 million in acquisitions, increased our dividend by more than 10%. Welcomed three new tenants into the fold and completed the re-tenanting of a number of great assets. We are increasing our guidance and after resolving a couple of tenant issues, we are again turning our full attention to the business of getting back on the growth trajectory that we've been accustomed to.

Re-tenanting any operating healthcare asset in an orderly manner is always a significant challenge. But in case of Pristine and OnPointe, we did so without delay, maintaining both the value of the assets and the integrity of the rent stream in the process. Among other things, it was our team's deep understanding of skilled nursing in general and our close familiarity with day-to-day operations of these facilities specifically that allowed us to transition the operations quickly and smoothly. In the case of the last nine Pristine assets, we