CareTrust REIT(US:CTRE)2022-02-15 16:00Real Estate Portfolio - CareTrust REIT's real estate portfolio includes 227 skilled nursing facilities and 23,650 operational beds across 29 states as of December 31, 2021[141]. - The company acquired five skilled nursing facilities and four multi-service campuses for approximately $192.5 million, expected to generate initial annual cash revenues of about $13.9 million[153]. - The company plans to pursue the sale, retenanting, or repurposing of up to 32 assets in fiscal 2022, representing approximately 10% of contractual cash rent[146]. Financial Performance - Rental income for the year ended December 31, 2021, was $190.2 million, a 10% increase from $173.6 million in 2020[158]. - Rental income increased by $16.6 million, or 10%, to $190.2 million for the year ended December 31, 2021, compared to $173.6 million in 2020, primarily due to new real estate investments and contractual rental rate increases[160]. - Interest and other income decreased by $0.5 million, or 18%, to $2.2 million for the year ended December 31, 2021, primarily due to a $2.0 million decrease in interest income from mortgage loans receivable[162]. - Cash provided by operating activities increased by $11.1 million to $156.9 million for the year ended December 31, 2021, primarily due to increased rental payments[181]. - Cash used in investing activities was $192.6 million for the year ended December 31, 2021, primarily for real estate acquisitions and investments[184]. Expenses and Losses - General and administrative expenses increased by 65% to $26.9 million in 2021, compared to $16.3 million in 2020[158]. - General and administrative expenses increased by $10.6 million, or 65%, to $26.9 million for the year ended December 31, 2021, mainly due to higher stock-based compensation and cash wages[169]. - The loss on extinguishment of debt recorded during Q3 2021 was $10.8 million, including a prepayment penalty of $7.9 million[151]. - The company recorded a $10.8 million loss on extinguishment of debt during the year ended December 31, 2021, including a prepayment penalty of $7.9 million[170]. - Depreciation and amortization expense rose by $2.6 million, or 5%, to $55.3 million for the year ended December 31, 2021, driven by new real estate investments and capital improvements[163]. Cash Flow and Financing - Cash flows from financing activities included $393.8 million in net proceeds from the issuance of notes and $30.0 million in net borrowings under the Amended Credit Facility for the year ended December 31, 2021[185]. - The company had cash and cash equivalents of $19.9 million at the end of the period, up from $18.9 million at the beginning of the year[180]. - The company has an unsecured revolving credit facility with a principal amount of $600.0 million and an unsecured term loan of $200.0 million[188]. - As of December 31, 2021, the company had $200.0 million outstanding under the Term Loan and $80.0 million under the Revolving Facility[188]. Interest Rates and Future Outlook - The interest rates for the Revolving Facility range from 0.10% to 0.55% per annum or LIBOR plus 1.10% to 1.55% per annum, while the Term Loan rates range from 0.50% to 1.20% per annum or LIBOR plus 1.50% to 2.20% per annum[189]. - An increase in interest rates could raise the cost of financing acquisitions and increase interest expenses on variable rate debt, potentially impacting cash flows[210]. - As of December 31, 2021, a 100 basis point increase in interest rates would have raised interest expenses by approximately $2.8 million for the year[211]. - The company had no interest rate swap agreements as of December 31, 2021, to hedge interest rate risks[212]. - Future rental income will be influenced by inflation, with most lease agreements including annual rent escalators based on the Consumer Price Index[205]. - The company intends to invest in additional healthcare and seniors housing properties as suitable opportunities arise, depending on available financing sources[175]. - The company expects to fund capital expenditures within the next one to two years[192]. Government Relief and COVID-19 Impact - The estimated federal and state relief approved and received by operators is approximately $171.4 million, with ongoing reliance on government relief programs due to COVID-19 impacts[142]. - Occupancy levels at skilled nursing facilities have shown a steady incline through Q4 2021 after a decline at the onset of the COVID-19 pandemic[145].