CareTrust REIT, Inc. (NASDAQ:CTRE) Q3 2019 Earnings Conference Call - Final Transcript

Nov 08, 2019 • 01:00 pm ET


CareTrust REIT, Inc. (NASDAQ:CTRE) Q3 2019 Earnings Conference Call - Final Transcript


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Bill Wagner

one of our independent living facilities. Four, interest income of approximately $3.8 million. Five, interest expense of approximately $26.4 million, in net calculations, we have assumed a LIBOR rate of 2% and a grid based margin rate of 125 bps on the revolver and 150 bps on our seven-year term loan. Interest expense also includes roughly $2 million of amortization of deferred financing fees. And six, we are projecting G&A of approximately $12 million to $13.5 million. Our G&A projection also includes roughly $3.2 million of amortization of stock comp.

Heading into 2020, our leverage and liquidity positions will continue to remain strong. We did not sell any shares under our $300 million ATM that we put up in Q1 and our revolver balance currently sits at $73 million. So our credit stats calculated on a run rate basis as of today, our net debt to EBITDA is approximately 3.4 times, leverage is about 23% of enterprise value and our fixed charge coverage ratio is approximately 6.2 times. We also have $17 million of cash on hand.

Finally, you'll notice in our Q3 supplemental that we've listed operator-specific coverage by EBITDAR and EBITDARM for our top 10 tenants, giving you a clear view into the operator-specific coverage of 85% of our revenue. Remaining 13 tenants representing approximately 15% of our revenue, so we are disclosing those in one line item. This change puts an exclamation point on all the parties that is regarding the overall quality and financial stability of our operator pool, following this quarter's changes.

And with that, I'll turn it back to Greg.

Greg Stapley

Thanks, Bill. We hope this discussion has been helpful. We thank you again for your continued support. And with that, we'll be happy to take questions, Bridget?