CareTrust REIT, Inc. (NASDAQ:CTRE) Q3 2019 Earnings Conference Call - Final Transcript
Nov 08, 2019 • 01:00 pm ET
tenant roster. Some of these changes like the previously announced exit of Trillium from a portion of our Ohio portfolio have been completed now. One other remains in process and we expect it to be completed shortly.
Our goal has been to rinse out any real softness in the portfolio and position CareTrust for solid operating performance going into 2020 and beyond. This is why we very intentionally executed all of these changes at once when the conventional wisdom might have been to handle them sequentially and spread them out over time. It's been a lot of work for everybody on the team here from acquisitions to asset management to accounting, and I'm proud of the great work that everyone's done within a remarkably short period. We did so because we believe that principles of sound stewardship requires not only to grow and diversify earnestly, but to pruning the portfolio responsibly from time to time. It also reflects our commitment to aggressively tackle small problems while they are still relatively small. We believe these operating philosophies rigorously applied will produce the best overall long-term results for CareTrust and our stakeholders. We further believe that this approach will continue to foster an atmosphere of accountability and high performance both for us and for our operating partners. We're building a strong healthy and expanding organization that will stand the test of time.
In addition, this quarter, we've also re-examined some of our accounting and disclosure policies. We're no longer the tiny start-up we were five years ago. With our increased size and growing tenant diversification and established track record, we've determined that going forward we will increase our disclosure and transparency by disclosing lease coverage by tenant for our top 10 tenant relationships. This is something that we've been planning and wanting to do for a long time, when the time was right, we're excited to finally be able to roll it out.
As far as the year goes, the rest of the year goes, we're pleased to be reaffirming our 2019 guidance for a normalized FFO and normalized FAD notwithstanding the portfolio adjustments we've made this quarter. Looking into the future, with so many changes in the quarter, we felt we should again, for transparency sake, offer a preview into our 2020 earnings estimates a little early this year. So we have that guidance and some color on it for you today as well.
With that, I'd like to turn some time over to Dave to talk about both current operations and the changes we've been making. Then Mark will discuss recent acquisitions in the pipeline and Bill will wrap up with the financials and guidance. Dave?
Thanks, Greg, and good morning. On our last call, we discussed how we are regularly reassessing both our portfolio and our operators to determine what changes, if any, are we made to either one. I talked in detail about our decision to replace Trillium in Southern Ohio. For the seven facilities there, we told