Exhibit 99.2 Financial Supplement Third Quarter 2022 Disclaimers This supplement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical statements of fact and statements regarding our intent, belief or expectations, including, but not limited to, statements regarding future financial and financing plans, business and acquisition strategies, growth prospects, operating and financ ...

CareTrust REIT, Inc. (NYSE:CTRE) Q3 2022 Earnings Conference Call November 9, 2022 1:00 PM ET Company Participants Lauren Beale - Senior Vice President and Controller Dave Sedgwick - President and Chief Executive Officer Mark Lamb - Chief Investment Officer James Callister - Executive Vice President Conference Call Participants Jonathan Hughes - Raymond James Juan Sanabria - BMO Capital Markets Dave Rodgers - Baird Michael Carroll - RBC Capital Markets Steven Valiquette - Barclays Austin Wurschmidt - KeyBan ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36181 CareTrust REIT, Inc. (Exact name of registrant as specified in its charter) Maryland 46-3999490 (St ...

Financial Data and Key Metrics Changes - Normalized FFO slightly decreased by 0.7% over the prior quarter to $35.6 million, while normalized FAD decreased by 1.7% to $37.5 million [25] - Rental income for the quarter was $46.8 million, an increase from $46 million in Q1, attributed to a decrease in cash rents offset by new investments and CPI bumps [26] - Cash collections for the quarter were 93.9% of contractual rent, which included the application of $900,000 in security deposits; without these deposits, collections were 92.1% [27][28] Business Line Data and Key Metrics Changes - Average quarterly occupancy for skilled nursing operators grew by 1.4% (98 basis points) over Q1, while occupancy for seniors housing grew by 2.8% (215 basis points) [13] - The company reported 94% of rent collected in the quarter with cash deposits, and 94% exclusive of cash deposits for July [13] Market Data and Key Metrics Changes - The regulatory environment showed improvement with a final market basket adjustment from CMS at 2.7% and a recalibration of PDPM over two years instead of all at once [14] - The acquisition disposition market for skilled nursing and seniors housing facilities has been changing, with lenders tightening or pulling back on lending due to recession concerns [15] Company Strategy and Development Direction - The company is focused on derisking its portfolio through dispositions and re-tenanting, aiming to close most of this work by Q4 [10][17] - The investment strategy is adapting to a changing market, with expectations that pricing will moderate and sellers will prefer buyers like CareTrust that offer certainty [11][20] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macro environment presents both challenges and opportunities, with skilled nursing historically benefiting during recessionary periods [12] - The company is optimistic about the future, expecting to complete most of its disposition work by year-end and seeing evidence of improved operator performance [32][36] Other Important Information - The company closed on a $75 million C piece loan secured by skilled nursing facilities at a rate of 8.4% and a term of five years, along with a $25 million mezzanine loan at 11% for 10 years [19] - Liquidity remains strong with approximately $16 million in cash and $385 million available under the revolver, with a net debt to normalized EBITDA ratio of 4.3 times [28] Q&A Session Summary Question: Clarification on re-tenanting and asset sales - Management indicated that the decision to re-tenant or sell assets is fluid, with some operators showing improved performance, making re-tenanting more attractive [31] Question: Impact of dilution on long-term decisions - Management emphasized a preference for dispositions over re-tenanting to ensure long-term financial strength, despite potential short-term dilution [36] Question: Cap rates and coverage levels in the transaction market - Management noted that cap rates are not moving quickly due to tightening lending standards, but there is a shift towards valuing transactional acumen [39] Question: Originating more loans versus acquisitions - Management stated that traditional acquisitions remain a priority, but lending has been a valuable avenue for investment in the absence of traditional opportunities [46] Question: Wage growth in the seniors housing and SNF space - Management observed that while wages peaked earlier in the year, there are signs of moderation, with increased job applications and decreased agency usage [53] Question: Revenue impact from sales and re-tenanting - Management indicated that more clarity on revenue impacts will be provided in the next call, as the restructuring process is still ongoing [56]

PART I—FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for CareTrust REIT, Inc. as of June 30, 2022, including balance sheets, statements of operations, equity, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2022, shows total assets increased to $1.686 billion, while total liabilities rose to $847.5 million, and total equity decreased to $838.3 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$1,685,772** | **$1,640,848** | | Real estate investments, net | $1,390,286 | $1,589,971 | | Assets held for sale, net | $141,767 | $4,835 | | Cash and cash equivalents | $30,267 | $19,895 | | **Total Liabilities** | **$847,504** | **$725,091** | | Unsecured revolving credit facility | $205,000 | $80,000 | | **Total Equity** | **$838,268** | **$915,757** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the six months ended June 30, 2022, the company reported a net loss of $22.6 million, primarily due to a $61.4 million impairment charge on real estate investments Key Operating Results (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $47,553 | $48,258 | $94,029 | $94,009 | | Impairment of real estate investments | $1,701 | $— | $61,384 | $— | | **Net Income (Loss)** | **$20,669** | **$21,317** | **$(22,595)** | **$41,803** | | Diluted EPS | $0.21 | $0.22 | $(0.24) | $0.43 | [Condensed Consolidated Statements of Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Total equity decreased to $838.3 million as of June 30, 2022, driven by a net loss of $22.6 million and $53.3 million in common dividends paid - The primary drivers for the decrease in total equity during the first six months of 2022 were the net loss of **$22.6 million** and common dividend payments totaling **$53.3 million** across both quarters[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2022, net cash provided by operating activities was $68.3 million, while investing activities used $125.6 million, and financing activities provided $67.7 million Six-Month Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $68,302 | $70,557 | | Net cash used in investing activities | $(125,644) | $(145,043) | | Net cash provided by financing activities | $67,714 | $366,525 | | **Net increase in cash** | **$10,372** | **$292,039** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, the real estate portfolio, significant impairment charges, loan portfolio expansion, debt structure, equity programs, and major tenant and geographic concentrations - As of June 30, 2022, the company's portfolio consisted of **228 facilities** with **23,876 operational beds and units** across 29 states, alongside other real estate investments (loans) with a carrying value of **$115.2 million**[25](index=25&type=chunk) - During the first quarter of 2022, the company decided to sell 27 properties and repurpose 3 properties, leading to an aggregate impairment charge of **$59.7 million** related to 20 of these properties, with an additional **$1.7 million** impairment recognized in the second quarter[40](index=40&type=chunk)[42](index=42&type=chunk) - The company's two largest operators, Ensign and Priority Management Group, accounted for **35% and 16% of total revenue**, respectively, for the six months ended June 30, 2022, with California and Texas representing **26% and 22% of total revenue** geographically[84](index=84&type=chunk)[85](index=85&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results of operations, highlighting the impacts of the COVID-19 pandemic, macroeconomic pressures, impairment charges, and portfolio adjustments [Recent Developments](index=26&type=section&id=Recent%20Developments) Tenants continue to face COVID-19 and inflation challenges, with 94.4% rent collection in the first six months of 2022, alongside a strategic decision to sell or repurpose 30 properties resulting in a $59.7 million impairment charge Contractual Rent Collection Rates | Period | Collection Rate (incl. deposits) | Collection Rate (excl. deposits) | | :--- | :--- | :--- | | Q2 2022 | 93.9% | 92.1% | | 6M 2022 | 94.4% | 92.0% | | July 2022 | 102.1% | 94.1% | - In Q1 2022, the company decided to sell 27 properties and repurpose 3, representing about **9% of contractual cash rent**, which led to a **$59.7 million impairment charge** on 20 properties held for sale[105](index=105&type=chunk) - In June 2022, the company extended a **$75.0 million senior secured term loan** and a **$25.0 million mezzanine loan** related to an 18-facility skilled nursing portfolio in the Mid-Atlantic region[112](index=112&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) For the six months ended June 30, 2022, rental income was flat year-over-year, but a significant $61.4 million impairment charge resulted in a net loss compared to net income in the prior year Comparison of Three Months Ended June 30, 2022 and March 31, 2022 (in thousands) | Account | June 30, 2022 | March 31, 2022 | Increase (Decrease) | | :--- | :--- | :--- | :--- | | Rental income | $46,806 | $46,007 | $799 | | Impairment of real estate investments | $1,701 | $59,683 | $(57,982) | | Provision for loan losses, net | $— | $3,844 | $(3,844) | Comparison of Six Months Ended June 30, 2022 and 2021 (in thousands) | Account | 2022 | 2021 | Increase (Decrease) | | :--- | :--- | :--- | :--- | | Rental income | $92,813 | $92,990 | $(177) | | Impairment of real estate investments | $61,384 | $— | $61,384 | | Provision for loan losses, net | $3,844 | $— | $3,844 | | General and administrative | $10,193 | $10,940 | $(747) | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity with a $30.3 million cash balance and $395.0 million available under its revolving credit facility to meet short-term needs, while long-term needs will be met through cash flows and financing arrangements - As of June 30, 2022, the company had a cash balance of **$30.3 million**, **$395.0 million** available under its Revolving Facility, and **$476.5 million** available under its ATM Program[143](index=143&type=chunk) - The company has a **$150.0 million share repurchase program** authorized through March 31, 2023, but has not repurchased any shares as of June 30, 2022[143](index=143&type=chunk) - Material cash requirements include debt service on **$400 million of senior notes** and borrowings under the credit facility, capital expenditure commitments of **$7.2 million**, and quarterly dividend payments[151](index=151&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk from its $405.0 million variable-rate debt, where a 100 basis point increase would raise interest expense by approximately $2.0 million for the first six months of 2022 - As of June 30, 2022, the company had **$405.0 million in variable-rate debt** outstanding ($200.0 million Term Loan and $205.0 million Revolver)[163](index=163&type=chunk) - A **100 basis point (1%) increase** in interest rates on variable-rate debt would have increased interest expense by approximately **$2.0 million** for the six months ended June 30, 2022[165](index=165&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2022[168](index=168&type=chunk) - No changes occurred during the quarter ended June 30, 2022, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[169](index=169&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company states that neither it nor its subsidiaries are party to any material legal proceedings, with tenants typically responsible for indemnifying the company against claims - The company is not subject to any material legal proceedings[172](index=172&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2021 - No material changes from the risk factors disclosed in the 2021 Annual Report on Form 10-K have occurred[173](index=173&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2022, the company acquired 100,220 shares from employees for tax withholding on vested restricted stock, while its $150.0 million share repurchase program remains fully available with no shares repurchased - In Q2 2022, **100,220 shares** were acquired from employees for tax withholding purposes upon vesting of restricted stock[175](index=175&type=chunk)[176](index=176&type=chunk) - As of June 30, 2022, no shares have been repurchased under the **$150.0 million share repurchase program**, which expires March 31, 2023[176](index=176&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO and Inline XBRL data files

Exhibit 99.2 First Quarter 2022 Financial Supplement Disclaimers This supplement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical statements of fact and statements regarding our intent, belief or expectations, including, but not limited to, statements regarding future financial and financing plans, business and acquisition strategies, growth prospects, operating and financ ...

Financial Data and Key Metrics Changes - Normalized FFO grew by 5.2% year-over-year to $35.9 million, while normalized FAD increased by 4.8% to $37.9 million [21] - On a per share basis, normalized FFO rose by 2.8% to $0.37, and normalized FAD grew by 2.6% to $0.39 [21] - Rental income for the quarter was $46 million, down from $49.1 million in Q4 2021, attributed to a $1.7 million decrease in cash rents and a reserve for doubtful accounts of $977,000 [21][22] Business Line Data and Key Metrics Changes - Approximately 95% of rent was collected in the quarter, with April collections at 93% [9] - Skilled nursing occupancy remained stable at 71.4%, compared to pre-pandemic levels of 78% [9] - Seniors housing occupancy increased by 100 basis points to 77%, compared to a low of 75% in November [9] Market Data and Key Metrics Changes - The M&A market for skilled nursing and seniors housing assets remains mixed, with a wide spectrum of opportunities from non-stable to Class A assets [15] - The current pipeline is estimated to be in the range of $150 million to $175 million, predominantly consisting of skilled nursing assets [18][52] Company Strategy and Development Direction - The company plans to reposition 32 assets, with 3 properties being repurposed into substance addiction recovery centers [7][10] - A partnership with a leading bridge-to-HUD lender aims to support growth in both existing and new operator relationships [11] - Key personnel changes have been made to enhance growth, including hiring a Vice President of Asset Management [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the operating environment, noting that the worst appears to be behind operators [9] - The company is focused on finding and supporting best-in-class operators, particularly in the skilled nursing and behavioral health sectors [13][54] - Management anticipates that the behavioral health sector will continue to attract institutional capital, leading to more sophisticated operators entering the market [60] Other Important Information - An impairment charge of $59.7 million was recorded due to the decision to sell 27 assets [22] - The company maintains strong liquidity with approximately $25 million in cash and $495 million available under its revolver [24] Q&A Session Summary Question: What is the expected dollar value of the 27 assets being sold? - Management indicated it is too early to provide a range for proceeds, as bids have not yet started rolling in [26] Question: Can you provide the new book value post-impairment? - The new book value can be found in the 10-Q filing [27] Question: Do you expect any new watch list tenants to emerge? - Management does not expect new additions to the watch list, as they are proactively managing existing tenants [29] Question: What is the mix between skilled nursing facilities and seniors housing in the repositioning plan? - The vast majority of the 32 assets are seniors housing, not skilled nursing [32] Question: How do you see valuations affected by rising interest rates? - Rising interest rates have not yet affected valuations, but future quarters may see changes as interest rates fluctuate [46] Question: What is the expected yield on the repurposed addiction recovery centers? - The expected stabilized lease coverage is north of 3x, with occupancy anticipated to be in the 90s [41]

[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This section presents the unaudited financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures for the company [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for CareTrust REIT, Inc., including the balance sheets, statements of operations, equity, and cash flows, along with detailed notes explaining the company's business, accounting policies, real estate investments, impairment charges, other investments, fair value measurements, debt, equity, stock-based compensation, earnings per share, commitments, and concentration of risk [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position at specific dates | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | Change (in thousands) | | :--------------------------- | :---------------------------- | :------------------------------- | :-------------------- | | Real estate investments, net | $1,402,889 | $1,589,971 | $(187,082) | | Assets held for sale, net | $141,716 | $4,835 | $136,881 | | Total assets | $1,593,941 | $1,640,848 | $(46,907) | | Total liabilities | $749,358 | $725,091 | $24,267 | | Total equity | $844,583 | $915,757 | $(71,174) | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's financial performance over specific periods | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | Change (in thousands) | | :------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | :-------------------- | | Total revenues | $46,476 | $45,751 | $725 | | Impairment of real estate investments | $59,683 | $— | $59,683 | | Provision for loan losses, net | $3,844 | $— | $3,844 | | Net (loss) income | $(43,264) | $20,486 | $(63,750) | | Basic (loss) earnings per common share| $(0.45) | $0.21 | $(0.66) | | Diluted (loss) earnings per common share| $(0.45) | $0.21 | $(0.66) | [Condensed Consolidated Statements of Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) This section outlines changes in the company's equity during the reporting period | Metric | Balance at January 1, 2022 (in thousands) | Balance at March 31, 2022 (in thousands) | Change (in thousands) | | :--------------------------------------- | :---------------------------------------- | :--------------------------------------- | :-------------------- | | Total Equity | $915,757 | $844,583 | $(71,174) | | Net loss | — | $(43,264) | $(43,264) | | Common dividends ($0.275 per share) | — | $(26,659) | $(26,659) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section reports the cash generated and used by operating, investing, and financing activities | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | Change (in thousands) | | :---------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :-------------------- | | Net cash provided by operating activities | $34,579 | $33,949 | $630 | | Net cash used in investing activities | $(24,072) | $(133,300) | $109,228 | | Net cash (used in) provided by financing activities | $(3,816) | $110,901 | $(114,717) | | Net increase in cash and cash equivalents | $6,691 | $11,550 | $(4,859) | | Cash and cash equivalents as of end of period | $26,586 | $30,469 | $(3,883) | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the financial statements [1. ORGANIZATION](index=10&type=section&id=1.%20ORGANIZATION) This note describes the company's business and operational structure - As of March 31, 2022, the Company owned and leased **228 healthcare facilities** (SNFs, ALFs, ILFs) with **23,834 operational beds/units** in **29 states**[26](index=26&type=chunk) - The Company's primary business is acquiring, financing, developing, and owning real property leased to third-party tenants in the healthcare sector[26](index=26&type=chunk) - The COVID-19 pandemic has had and may continue to have a material adverse impact on the Company's business, results of operations, and financial condition[26](index=26&type=chunk) [2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=10&type=section&id=2.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the key accounting principles and methods used in preparing the financial statements - Financial statements are prepared in accordance with GAAP for interim information and Article 10 of Regulation S-X[27](index=27&type=chunk) - Adoption of ASU 2020-04 (Reference Rate Reform) had no material impact on the Company's consolidated financial statements[27](index=27&type=chunk) [3. REAL ESTATE INVESTMENTS, NET](index=11&type=section&id=3.%20REAL%20ESTATE%20INVESTMENTS%2C%20NET) This note details the company's real estate portfolio, including acquisitions, dispositions, and rental income | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :------------------------------------ | :---------------------------- | :------------------------------- | | Real estate investments, net | $1,402,889 | $1,589,971 | | Real estate investments (gross) | $1,767,272 | $1,979,785 | | Accumulated depreciation and amortization | $(364,383) | $(389,814) | - As of March 31, 2022, **27 facilities** were held for sale[29](index=29&type=chunk) | Year | Future Contractual Minimum Rental Income (in thousands) | | :--------------- | :------------------------------------------------------ | | 2022 (nine months) | $146,848 | | 2023 | $195,547 | | 2024 | $194,202 | | 2025 | $194,173 | | 2026 | $194,278 | | 2027 | $191,589 | | Thereafter | $998,873 | | Total | $2,115,510 | - The Company has various tenant purchase options for **27 properties**, with different option types (fixed base price, fixed base price plus appreciation share, or fixed capitalization rate on lease revenue)[31](index=31&type=chunk) | Rental Income Component | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :-------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Contractual rent due | $46,978 | $45,171 | | Adjustment for collectibility | $(977) | $— | | Total Rental Income | $46,007 | $45,246 | - During Q1 2022, the Company acquired **1 SNF and 1 multi-service campus** for **$21.9 million**, expected to generate **$2.05 million** in initial annual cash rent[34](index=34&type=chunk) - Lease amendments in Q1 2022 included transferring an ALF from Pennant to Ensign, increasing Ensign's annual cash rent by **$0.3 million**, and amending Eduro and WLC master leases to include new acquisitions, increasing annual cash rent by **$0.8 million** and **$1.2 million** respectively[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) [4. IMPAIRMENT OF REAL ESTATE INVESTMENTS, ASSETS HELD FOR SALE, NET AND ASSET SALES](index=13&type=section&id=4.%20IMPAIRMENT%20OF%20REAL%20ESTATE%20INVESTMENTS%2C%20ASSETS%20HELD%20FOR%20SALE%2C%20NET%20AND%20ASSET%20SALES) This note explains charges related to asset value reductions and details properties held for sale or recently sold - An aggregate impairment charge of **$59.7 million** was recognized for **20 of 27 properties** classified as assets held for sale[39](index=39&type=chunk) - As of March 31, 2022, the net book value of the **27 properties** held for sale was **$141.7 million**[39](index=39&type=chunk) - One ALF with a carrying value of **$4.8 million** was reclassified out of assets held for sale during Q1 2022[41](index=41&type=chunk) - The Company sold one SNF for net proceeds of **$1.0 million**, recognizing a gain of **$0.2 million**[42](index=42&type=chunk) [5. OTHER REAL ESTATE INVESTMENTS](index=14&type=section&id=5.%20OTHER%20REAL%20ESTATE%20INVESTMENTS) This note provides information on other real estate-related investments, such as loans receivable | Investment Type | Principal Balance (March 31, 2022, in thousands) | Book Value (March 31, 2022, in thousands) | Book Value (Dec 31, 2021, in thousands) | Weighted Average Contractual Interest Rate (March 31, 2022) | Maturity Date | | :----------------------- | :----------------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------------------------- | :------------ | | Mezzanine loan receivable| $15,000 | $15,155 | $15,155 | 12.0% | 11/30/2025 | | Other loans receivable | $5,516 | $5,523 | $3,161 | 8.0% | 9/1/2023 - 12/31/2023 | | Expected credit loss | $(4,594) | $(4,594) | $— | N/A | N/A | | Total | $15,922 | $16,084 | $18,316 | N/A | N/A | - A **$4.6 million** expected credit loss was recorded for two other loans receivable placed on non-accrual status, net of an **$0.8 million** recovery[44](index=44&type=chunk) | Investment Type | Interest and Other Income (Q1 2022, in thousands) | Interest and Other Income (Q1 2021, in thousands) | | :----------------------- | :------------------------------------------------ | :------------------------------------------------ | | Mezzanine loan receivable| $450 | $450 | | Other | $19 | $55 | | Total | $469 | $505 | [6. FAIR VALUE MEASUREMENTS](index=14&type=section&id=6.%20FAIR%20VALUE%20MEASUREMENTS) This note describes the valuation methodologies and hierarchy for assets and liabilities measured at fair value - The mezzanine loan receivable is classified as **Level 3** due to significant unobservable inputs in its fair value determination[49](index=49&type=chunk) | Asset/Liability | Fair Value Hierarchy Level | Balance as of March 31, 2022 (in thousands) | Balance as of December 31, 2021 (in thousands) | | :--------------------------- | :------------------------- | :------------------------------------------ | :--------------------------------------------- | | Mezzanine loan receivable | Level 3 | $15,155 | $15,155 | | Senior unsecured notes payable | Level 2 | $377,000 | $410,500 | [7. DEBT](index=16&type=section&id=7.%20DEBT) This note details the company's debt obligations, including senior notes, term loans, and credit facilities | Debt Type | Principal Amount (March 31, 2022, in thousands) | Carrying Value (March 31, 2022, in thousands) | Principal Amount (Dec 31, 2021, in thousands) | Carrying Value (Dec 31, 2021, in thousands) | | :-------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Senior unsecured notes payable | $400,000 | $394,484 | $400,000 | $394,262 | | Senior unsecured term loan | $200,000 | $199,189 | $200,000 | $199,136 | | Unsecured revolving credit facility | $105,000 | $105,000 | $80,000 | $80,000 | | Total | $705,000 | $698,673 | $680,000 | $673,398 | - The **3.875% Senior Notes due 2028** have a principal amount of **$400.0 million**, with interest payable semi-annually[55](index=55&type=chunk) - The Amended Credit Facility includes a **$600.0 million Revolving Facility** (with **$105.0 million** outstanding) and a **$200.0 million Term Loan** (with **$200.0 million** outstanding)[61](index=61&type=chunk)[62](index=62&type=chunk) - The Company was in compliance with all applicable financial covenants under both the Notes indenture and the Amended Credit Agreement as of March 31, 2022[59](index=59&type=chunk)[64](index=64&type=chunk) [8. EQUITY](index=17&type=section&id=8.%20EQUITY) This note provides information on the company's equity structure, including stock programs and dividends - **$476.5 million** remained available for future issuances under the ATM Program as of March 31, 2022, with no ATM activity occurring in Q1 2022[67](index=67&type=chunk)[98](index=98&type=chunk) - A **$150.0 million** share repurchase program, expiring March 31, 2023, had no repurchases through March 31, 2022[67](index=67&type=chunk)[160](index=160&type=chunk) - A cash dividend of **$0.275 per share** was declared for Q1 2022, payable on April 15, 2022[67](index=67&type=chunk) [9. STOCK-BASED COMPENSATION](index=18&type=section&id=9.%20STOCK-BASED%20COMPENSATION) This note details the expenses and activity related to the company's stock-based compensation plans | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | | Stock-based compensation expense | $1,521 | $1,585 | | RSA and Performance Award Activity | Shares (March 31, 2022) | Weighted Average Share Price (March 31, 2022) | | :--------------------------------- | :---------------------- | :-------------------------------------------- | | Unvested balance at Dec 31, 2021 | 891,333 | $20.91 | | Granted RSAs | 9,684 | $17.56 | | Vested | (329,080) | $20.10 | | Forfeited | (1,900) | $21.50 | | Unvested balance at March 31, 2022 | 570,037 | $21.32 | [10. (LOSS) EARNINGS PER COMMON SHARE](index=19&type=section&id=10.%20%28LOSS%29%20EARNINGS%20PER%20COMMON%20SHARE) This note presents the calculation of basic and diluted earnings per common share | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | | Net (loss) income | $(43,264) | $20,486 | | Numerator for basic and diluted earnings | $(43,381) | $20,367 | | Weighted-average basic common shares outstanding | 96,410 | 95,378 | | (Loss) earnings per common share, basic | $(0.45) | $0.21 | | (Loss) earnings per common share, diluted | $(0.45) | $0.21 | [11. COMMITMENTS AND CONTINGENCIES](index=19&type=section&id=11.%20COMMITMENTS%20AND%20CONTINGENCIES) This note discloses the company's contractual obligations and potential liabilities from legal matters - The Company is party to various claims and lawsuits, not anticipated to have a material adverse effect[75](index=75&type=chunk) - As of March 31, 2022, the Company committed to fund **$5.5 million** in capital expenditures for leased facilities, with **$4.4 million** subject to rent increases[75](index=75&type=chunk) [12. CONCENTRATION OF RISK](index=20&type=section&id=12.%20CONCENTRATION%20OF%20RISK) This note identifies significant concentrations of revenue from operators and geographic regions | Operator | Percentage of Total Revenue (March 31, 2022) | Percentage of Total Revenue (March 31, 2021) | | :------------------------ | :------------------------------------------- | :------------------------------------------- | | Ensign | 34% | 32% | | Priority Management Group | 16% | 16% | | State | Percentage of Total Revenue (March 31, 2022) | | :--------- | :------------------------------------------- | | California | 26% | | Texas | 22% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, including forward-looking statements, an overview of the business, recent developments such as the ongoing impact of COVID-19 and asset impairment, a detailed analysis of operating results, and a discussion of liquidity and capital resources, as well as critical accounting policies [Forward-Looking Statements](index=21&type=section&id=Forward-Looking%20Statements) This section highlights statements about future expectations and the inherent risks involved - The report contains forward-looking statements regarding future financing, business strategies, growth, and financial performance[80](index=80&type=chunk) - Key risks include the COVID-19 pandemic's impact, tenant ability to meet obligations, potential impairment charges, and access to capital markets[81](index=81&type=chunk) [Overview](index=21&type=section&id=Overview) This section introduces CareTrust REIT's business model and strategic objectives - CareTrust REIT is a self-administered, publicly-traded REIT specializing in healthcare-related properties, including SNFs, ALFs, and ILFs[82](index=82&type=chunk) - Revenues are primarily generated from triple-net lease arrangements where tenants are responsible for property costs[82](index=82&type=chunk) - The company plans to grow its portfolio by acquiring additional properties and diversifying across geographic markets and asset classes[84](index=84&type=chunk) [Recent Developments](index=22&type=section&id=Recent%20Developments) This section covers significant events and changes impacting the company's operations and financial position [COVID-19 and Market Conditions Update](index=22&type=section&id=COVID-19%20and%20Market%20Conditions%20Update) This section discusses the ongoing impact of the pandemic on tenant operations, occupancy, and government support - Tenants are experiencing increased operating costs, labor shortages, and reduced occupancy due to the COVID-19 pandemic[85](index=85&type=chunk) - Seniors housing occupancy modestly increased in Q1 2022, while SNF occupancy remained stable compared to Q4 2021[86](index=86&type=chunk) - The temporary waiver of the three-day hospital stay requirement for Medicare benefits is still in effect through July 2022, but skilled mix is anticipated to decline[86](index=86&type=chunk)[87](index=87&type=chunk) - The temporary suspension of the **2% Medicare sequestration cut** ended in March 2022, with a **1% cut** effective April 1, 2022, and the full **2%** resuming thereafter[87](index=87&type=chunk) - In Q1 2022, the Company collected **94.9% of contractual rents** (**91.8%** excluding cash deposits) and moved two operators to a cash basis due to collectibility concerns[90](index=90&type=chunk) - CMS proposed a **0.7% decrease** in aggregate net payment for SNFs for fiscal year 2023, estimated to reduce Medicare Part A payments by **$320 million**[92](index=92&type=chunk) [Impairment of Real Estate Assets, Assets Held for Sale and Asset Sales](index=23&type=section&id=Impairment%20of%20Real%20Estate%20Assets%2C%20Assets%20Held%20for%20Sale%20and%20Asset%20Sales) This section details asset impairment charges, properties classified as held for sale, and recent asset dispositions - A **$59.7 million** impairment charge was recognized in Q1 2022 for **20 properties** designated as held for sale[93](index=93&type=chunk) - **27 properties**, representing approximately **10% of contractual cash rent**, were classified as assets held for sale as of March 31, 2022[93](index=93&type=chunk) - One ALF with a carrying value of **$4.8 million** was reclassified out of assets held for sale[94](index=94&type=chunk) - The sale of one SNF generated net proceeds of **$1.0 million** and a gain of **$0.2 million**[95](index=95&type=chunk) [Recent Investments](index=23&type=section&id=Recent%20Investments) This section outlines recent property acquisitions and their expected financial contributions - Acquired **1 SNF and 1 multi-service campus** for approximately **$21.9 million** between January 1, 2022, and May 5, 2022[96](index=96&type=chunk) - These acquisitions are expected to generate initial annual cash revenues of approximately **$2.1 million** and an initial blended yield of approximately **9.4%**[96](index=96&type=chunk) [At-The-Market Offering of Common Stock](index=24&type=section&id=At-The-Market%20Offering%20of%20Common%20Stock) This section reports on the company's ATM program activity and remaining availability - No ATM Program activity occurred during the three months ended March 31, 2022[98](index=98&type=chunk) - As of March 31, 2022, **$476.5 million** remained available for future issuances under the ATM Program[98](index=98&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance by comparing revenues and expenses across periods [Three Months Ended March 31, 2022 Compared to Three Months Ended December 31, 2021](index=24&type=section&id=Three%20Months%20Ended%20March%2031%2C%202022%20Compared%20to%20Three%20Months%20Ended%20December%2031%2C%202021) This section compares the company's financial performance between the first quarter of 2022 and the fourth quarter of 2021 | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | Increase (Decrease) (in thousands) | Percentage Difference | | :------------------------------------ | :---------------------------- | :------------------------------- | :--------------------------------- | :-------------------- | | Rental income | $46,007 | $49,118 | $(3,111) | (6)% | | Interest and other income | $469 | $619 | $(150) | (24)% | | Impairment of real estate investments | $59,683 | $— | $59,683 | * | | Provision for loan losses, net | $3,844 | $— | $3,844 | * | | General and administrative | $5,215 | $10,738 | $(5,523) | (51)% | - Rental income decreased by **$3.1 million** (**6%**) primarily due to moving tenants to a cash basis (**$2.6 million** decrease) and a **$1.0 million** write-off of uncollectible rent[101](index=101&type=chunk) - General and administrative expense decreased by **$5.5 million** (**51%**) due to lower stock compensation (**$4.1 million**) and non-routine transaction costs (**$1.4 million**)[108](index=108&type=chunk) [Three Months Ended March 31, 2022 Compared to Three Months Ended March 31, 2021](index=26&type=section&id=Three%20Months%20Ended%20March%2031%2C%202022%20Compared%20to%20Three%20Months%20Ended%20March%2031%2C%202021) This section compares the company's financial performance between the first quarter of 2022 and the first quarter of 2021 | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | Increase (Decrease) (in thousands) | Percentage Difference | | :------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | :--------------------------------- | :-------------------- | | Rental income | $46,007 | $45,246 | $761 | 2% | | Property taxes | $1,420 | $696 | $724 | 104% | | Impairment of real estate investments | $59,683 | $— | $59,683 | * | | Provision for loan losses, net | $3,844 | $— | $3,844 | * | | Gain (loss) on sale of real estate | $186 | $(192) | $378 | (197)% | - Rental income increased by **$0.8 million** (**2%**) due to new investments (**$2.9 million**) and contractual increases (**$0.8 million**), partially offset by moving tenants to a cash basis (**$2.2 million** decrease) and uncollectible rent write-off (**$1.0 million**)[113](index=113&type=chunk) - Property taxes increased by **$0.7 million** (**104%**) due to assets held for sale, new investments, and transfers to new operators[116](index=116&type=chunk) - Gain on sale of real estate improved from a **$0.2 million loss** in Q1 2021 to a **$0.2 million gain** in Q1 2022[122](index=122&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to meet its financial obligations and fund future operations and investments - The Company is required to distribute at least **90% of REIT taxable income** to maintain REIT status[123](index=123&type=chunk) - Short-term liquidity requirements include operating/interest expenses, G&A, dividends, operating lease obligations, and capital expenditures[124](index=124&type=chunk) - Long-term liquidity needs are for acquisitions, capital expenditures, and debt maturities, to be financed by existing cash, credit facilities, and equity offerings[125](index=125&type=chunk) - As of March 31, 2022, the Company had **$26.6 million in cash**, **$495.0 million** available under the Revolving Facility, and **$476.5 million** under the ATM Program[126](index=126&type=chunk) [Cash Flows](index=28&type=section&id=Cash%20Flows) This section analyzes the sources and uses of cash from operating, investing, and financing activities | Cash Flow Activity | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | Change (in thousands) | | :---------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :-------------------- | | Net cash provided by operating activities | $34,579 | $33,949 | $630 | | Net cash used in investing activities | $(24,072) | $(133,300) | $109,228 | | Net cash (used in) provided by financing activities | $(3,816) | $110,901 | $(114,717) | - The increase in operating cash flow was primarily due to increased rental payments from new investments, partially offset by moving certain tenants to a cash basis and higher G&A expenses[132](index=132&type=chunk) - Investing activities saw a significant decrease in cash used, mainly due to lower real estate acquisitions (**$24.0 million** in 2022 vs. **$138.9 million** in 2021)[133](index=133&type=chunk) - Financing activities shifted to a net outflow, driven by **$26.0 million** in dividends paid and a **$2.8 million** net settlement adjustment on restricted stock, partially offset by **$25.0 million** in revolving credit borrowings[134](index=134&type=chunk) [Material Cash Requirements](index=29&type=section&id=Material%20Cash%20Requirements) This section outlines the company's significant future cash obligations, including debt, capital expenditures, and dividends - The Company has **$400.0 million** in **3.875% Senior Unsecured Notes due 2028**, with semi-annual interest payments[136](index=136&type=chunk) - The Amended Credit Facility includes a **$200.0 million Term Loan** (maturing Feb 2026) and a **$600.0 million Revolving Facility** (maturing Feb 2023, with two 6-month extension options), with **$105.0 million** outstanding[137](index=137&type=chunk)[138](index=138&type=chunk) - As of March 31, 2022, **$5.5 million** was committed for capital improvements, with **$4.4 million** subject to rent increases[141](index=141&type=chunk) - Quarterly dividend payments are a requirement to maintain REIT status[142](index=142&type=chunk) [Critical Accounting Policies and Estimates](index=31&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section describes the accounting policies requiring significant judgment and estimation by management - Financial statements rely on management estimates and assumptions in accordance with GAAP[144](index=144&type=chunk) - No material changes to critical accounting policies occurred during the three months ended March 31, 2022[144](index=144&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company's primary market risk is interest rate risk associated with its variable rate debt under the Amended Credit Facility. A hypothetical 100 basis point increase in interest rates would raise Q1 2022 interest expense by approximately $0.8 million. The impending discontinuation of LIBOR by June 2023 introduces uncertainty regarding future interest rate benchmarks - Primary market risk exposure is interest rate risk related to variable rate indebtedness[145](index=145&type=chunk) - As of March 31, 2022, the Company had **$200.0 million Term Loan** and **$105.0 million Revolving Facility** outstanding, both with variable interest rates[146](index=146&type=chunk) - A **100 basis point increase** in interest rates would increase Q1 2022 interest expense by approximately **$0.8 million**[150](index=150&type=chunk) - The discontinuation of LIBOR by June 30, 2023, introduces uncertainty regarding alternative interest rate indices and potential increases in interest expense[148](index=148&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the Company's disclosure controls and procedures, which were evaluated by management, including the CEO and CFO, and deemed effective as of March 31, 2022. No material changes in internal control over financial reporting occurred during the quarter [Disclosure Controls and Procedures](index=32&type=section&id=Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's controls for financial reporting and disclosure - Disclosure controls and procedures were evaluated and deemed effective at a reasonable assurance level as of March 31, 2022[152](index=152&type=chunk) [Changes in Internal Control over Financial Reporting](index=32&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section reports on any significant changes to the company's internal controls during the quarter - No material changes in internal control over financial reporting occurred during the quarter ended March 31, 2022[153](index=153&type=chunk) [PART II—OTHER INFORMATION](index=33&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) This part includes legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in various routine legal proceedings that are not expected to have a material adverse effect on its operations or financial condition. Tenants are typically responsible for general or professional liability claims and are obligated to indemnify the Company - The Company is a party to various claims and lawsuits arising in the ordinary course of business, none of which are material[156](index=156&type=chunk) - Tenants are responsible for general or professional liability claims and indemnify the Company[156](index=156&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 - No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021[157](index=157&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2022, the Company acquired 138,687 shares of its common stock from employees at an average price of $19.99 per share to cover tax withholding obligations related to restricted stock vesting. The $150.0 million share repurchase program authorized by the Board of Directors remains entirely unused as of March 31, 2022 | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :-------------------------- | :------------------------------- | :--------------------------- | | January 1 - January 31, 2022| 30,556 | $20.84 | | February 1 - February 28, 2022| 108,131 | $19.75 | | March 1 - March 31, 2022 | — | — | | Total | 138,687 | $19.99 | - The Company acquired **138,687 shares** from employees to satisfy tax withholding obligations related to restricted stock vesting[159](index=159&type=chunk)[160](index=160&type=chunk) - The **$150.0 million** share repurchase program remains unused as of March 31, 2022[160](index=160&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists the exhibits accompanying the Form 10-Q filing, including organizational documents, certifications from the Chief Executive Officer and Chief Financial Officer, and various Inline XBRL documents - The exhibits include Articles of Amendment and Restatement, Amended and Restated Bylaws, CEO and CFO certifications (Sarbanes-Oxley Act Sections 302 and 906), and Inline XBRL documents[162](index=162&type=chunk) [Signatures](index=36&type=section&id=Signatures) The report is officially signed by David M. Sedgwick, President and Chief Executive Officer, and William M. Wagner, Chief Financial Officer and Treasurer, on behalf of CareTrust REIT, Inc. on May 5, 2022 - The report was signed by David M. Sedgwick (President and CEO) and William M. Wagner (CFO and Treasurer) on May 5, 2022[165](index=165&type=chunk)

Exhibit 99.2 Fourth Quarter 2021 Financial Supplement Disclaimers This supplement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical statements of fact and statements regarding our intent, belief or expectations, including, but not limited to, statements regarding future financial and financing plans, business and acquisition strategies, growth prospects, operating and finan ...

Financial Data and Key Metrics Changes - In Q4 2021, normalized FFO grew by 9% year-over-year to $37.3 million, while normalized FAD increased by 11.5% to $39.8 million [20] - On a per share basis, normalized FFO rose by 8.3% to $0.39, and normalized FAD grew by 10.8% to $0.41 [20] - Cash collections for the quarter were 100% of contractual cash rent, with January collections at 93% and February at 92% [20] Business Line Data and Key Metrics Changes - The company reported a flat occupancy rate across skilled nursing and seniors housing in Q4, impacted by the Omicron variant [7][8] - The company is pursuing the sale or repurposing of up to 32 assets, representing approximately 10% of contractual rent, to improve the risk profile of its portfolio [10][12] Market Data and Key Metrics Changes - The market for nursing homes is described as robust, with limited supply leading to significant bidding for available assets [16] - The company anticipates that the tight supply will loosen as more owners consider selling their assets due to the drying up of stimulus and a tighter labor market [18] Company Strategy and Development Direction - The company plans to repurpose some of the identified assets into behavioral health facilities, marking a new growth vertical [12][14] - The management is focused on proactively addressing underperforming operators and properties to strengthen the portfolio [10][38] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the pandemic, particularly the impact of the Omicron variant on employee infection rates and labor costs [8][47] - The company is optimistic about the potential for new investments and partnerships, particularly in the behavioral health sector [12][14] Other Important Information - The company has postponed guidance for 2022 until there is more clarity on the sale or repurposing of the identified assets [21] - The management emphasized the importance of maintaining a strong balance sheet and liquidity, with approximately $13 million in cash and $510 million available under the revolver [20] Q&A Session Summary Question: Opportunity in Behavioral Health - Management expressed interest in the behavioral health sector, noting potential for acquiring distressed facilities and repurposing them [22][23] Question: Sales and Repositioning of Assets - Management indicated that all options are on the table for redeploying proceeds from asset sales, including investments in behavioral health [29][30] Question: Coverage Levels and Timing - Management expects coverage levels to improve as they address the identified properties, with sales likely executed by summer [39][40] Question: Dividend Safety - Management reassured that there are no concerns regarding the safety of the dividend, with decisions on increases to be made in March [70]