8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 1, 2018

CareTrust REIT, Inc.

(Exact name of registrant as specified in its charter)

Maryland	001-36181	46-3999490
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

Registrant’s telephone number, including area code: (949) 542-3130

905 Calle Amanecer, Suite 300, San Clemente, CA	92673
(Address of principal executive offices)	(Zip Code)

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company   ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐

Item 2.02 Results of Operations and Financial Condition.

On August 1, 2018, CareTrust REIT, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2018. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in any such filing.

Item 7.01 Regulation FD Disclosure

A copy of the Company’s supplemental financial information for the second quarter ended June 30, 2018 is attached hereto as Exhibit 99.2 and is incorporated herein by reference. A copy of the supplemental financial information is also available on the “Investors” section of the Company’s website at www.caretrustreit.com.

Exhibit 99.2 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any filing of the Company under the Securities Act or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in any such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibits	Description
99.1	Press Release of the Company, dated August 1, 2018
99.2	Supplemental financial information for the quarter ended June 30, 2018

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: August 1, 2018	CARETRUST REIT, INC.
	By:	/s/ William M. Wagner
		William M. Wagner
		Chief Financial Officer, Treasurer and Secretary

EX-99.1

Exhibit 99.1

CareTrust REIT Announces Second Quarter 2018 Operating Results; Updates 2018 Guidance

Conference Call Scheduled for Thursday, August 2, 2018 at 1:00 pm ET

SAN CLEMENTE, Calif., August 1, 2018 (GLOBE NEWSWIRE) -- CareTrust REIT, Inc. (Nasdaq:CTRE) today reported operating results for the quarter ended June 30, 2018, as well as other recent events.

For the quarter, CareTrust REIT reported:

• Net income of $13.3 million, and net income per diluted weighted-average common share of $0.17;

• Normalized FFO of $24.5 million, an increase of 19%, and normalized FFO per diluted weighted-average common share of $0.32, an increase of 14% over Q2 2017;

• Normalized FAD of $25.6 million, an increase of 18%, and normalized FAD per diluted weighted-average common share of $0.33, an increase of 10% over Q2 2017;

• A net debt-to-normalized EBITDA ratio of 4.1x and a debt-to-enterprise value of 29%, each as of quarter-end.

Pipeline Rebuilding

Commenting on the Company’s lighter-than-usual year-to-date acquisition pace, Greg Stapley, CareTrust REIT’s Chairman and Chief Executive Officer, noted that the Company has been adhering to its core discipline of deploying capital at solid returns and reasonable prices. “In our view, the market for good assets has been overheated since the fourth quarter of 2017, and we will never hesitate to head for the sidelines if the right deals aren’t there,” he said. He noted that, while no acquisitions were closed in the second quarter, one has closed since, and more are underway. “We are pleased to report that deal flow has picked up markedly in the second quarter, and our pipeline is getting back to where it has been historically,” he concluded.

Financial Results for Quarter Ended June 30, 2018

Chief Financial Officer Bill Wagner reported that, for the second quarter, CareTrust REIT generated net income of $13.3 million, or $0.17 per diluted weighted-average common share, normalized FFO of $24.5 million, or $0.32 per diluted weighted-average common share, and normalized FAD of $25.6 million, or $0.33 per diluted weighted-average common share. “We are pleased to be delivering a quarter-over-quarter increase in normalized FFO per share of 14%,” said Mr. Wagner.

Liquidity

Discussing CareTrust REIT’s current liquidity, Mr. Wagner noted that the acquisition-light quarter allowed the Company to significantly pay down the outstanding balance on its $400 million revolving credit facility. “We have used retained FFO and proceeds of equity sales under our at-the-market equity program to reduce our loan balance to approximately $130 million as of today, leaving plenty of liquidity for near-term growth,” he said. He further noted that the revolving credit facility includes an additional $250 million “accordion” feature that can be exercised by the Company if additional liquidity is needed.

Mr. Wagner also reported that, during the quarter and since, CareTrust REIT issued approximately 4.9 million shares of common stock through the Company’s at-the-market equity program at an average price of $16.50 per share, for $80.2 million in gross proceeds. “Our ATM program remains a significant instrument in the Company’s capital-raising repertoire, with up to $155.9 million remaining in authorization at present,” he said. Mr. Wagner stated that CareTrust REIT’s net debt-to-normalized EBITDA ratio was 4.1x and its debt-to-enterprise value was 29%, each at quarter-end, which is well within management’s target leverage range. He also noted that CareTrust REIT continues to have no property-level debt and, taking into account existing extension rights, no debt maturing before 2020.

2018 Guidance Updated

Mr. Wagner updated CareTrust REIT's 2018 earnings guidance, projecting on a per-diluted weighted-average common share basis, net income of approximately $0.71 to $0.73, normalized FFO of approximately $1.26 to $1.28, and normalized FAD of approximately $1.32 to $1.34. He noted that the 2018 guidance is based on a diluted weighted-average common share count of 78.4 million shares and assumes no new acquisitions beyond those made to date, no new debt incurrences or new equity issuances, and 2.0% CPI-based rent escalators under CareTrust REIT's long-term net leases.

Dividend Declared

During the quarter, CareTrust REIT declared a quarterly dividend of $0.205 per common share. “On an annualized basis, our quarterly dividend represents a payout ratio of approximately 64% based on the second quarter 2018 normalized FFO, and 62% on normalized FAD,” said Mr. Wagner. “At this level, our dividend remains among the best-protected of all our industry peers, while simultaneously providing additional growth capital for reinvestment and a solid overall return to our shareholders,” he added.

New Officers

CareTrust REIT also announced that David Sedgwick, CareTrust’s Vice President of Operations since 2014, has been named Chief Operating Officer, and that Mark Lamb, CareTrust’s Director of Investments since 2014, has been named Chief Investment Officer. “Mark and Dave have been key contributors to CareTrust’s growth and success since inception, and we couldn’t be more pleased to have them assume these roles,” said Mr. Stapley. He called the recognitions “hard-earned and well-deserved,” adding that the two new officers have performed at the highest levels throughout their tenure with CareTrust REIT.

Acquisitions in the Quarter and Since

Subsequent to quarter-end, CareTrust REIT acquired a 99-bed skilled nursing facility in Aberdeen, South Dakota, which was formerly operated by an affiliate of HCR ManorCare. CareTrust REIT added the property to its existing master lease with Salt Lake City-based Eduro Healthcare, LLC, which took over operations on July 18, 2018 and rechristened the facility Prairie Heights Healthcare Center. The total investment was approximately $9.7 million, inclusive of transaction costs, and the initial increase in annual cash rent under Eduro’s master lease was approximately $870,000. The Eduro master lease has approximately twelve years remaining on the initial term and carries CPI-based annual escalators. CareTrust REIT funded the acquisition using cash on hand.

Planned Re-Tenantings Completed

Also during the quarter, CareTrust REIT completed the previously-announced planned re-tenanting of nine Ohio assets. “We are pleased to report that the last of the Ohio assets formerly leased to subsidiaries of Pristine Senior Living were successfully transferred to two outstanding operators, on schedule and with minimal disruption to facility operations and our rent stream,” said Mr. Stapley. He also reported that two other properties, which were formerly leased to affiliates of OnPointe Health, were successfully transferred to other current CareTrust operators during the quarter, also without any material rent loss.

Conference Call

A conference call will be held on Thursday, August 2, 2018, at 1:00 p.m. Eastern Time (10:00 a.m. Pacific Time), during which CareTrust REIT’s management will discuss second quarter 2018 results, recent developments and other matters. The dial-in number for this call is (844) 220-4972 (U.S.) or (317) 973-4053 (International). The conference ID number is 7496046. To listen to the call online, or to view any financial or other statistical information required by SEC Regulation G, please visit the Investors section of the CareTrust REIT website at http://investor.caretrustreit.com. The call will be recorded, and will be available for replay via the website for 30 days following the call.

About CareTrust REIT^TM 

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition and leasing of seniors housing and healthcare-related properties. With 189 net-leased healthcare properties and three operated seniors housing properties in 25 states, CareTrust REIT is pursuing opportunities across the nation to acquire properties that will be leased to a diverse group of local, regional and national seniors housing operators, healthcare services providers, and other healthcare-related businesses. More information about CareTrust REIT is available at www.caretrustreit.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This press release contains, and the related conference call will include, 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 the Company’s intent, belief or expectations, including, but not limited to, statements regarding future financial and financing positions, business and acquisition strategies, growth prospects, operating and financial performance, expectations regarding the making of distributions, payment of dividends, compliance with and changes in governmental regulations, and the performance of the Company’s tenants and operators and their respective facilities.

Words such as “anticipate,” “believe,” “could,” “expect,” “estimate,” “intend,” “may,” “plan,” “seek,” “should,” “will,” “would,” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements, though not all forward-looking statements contain these identifying words. The Company’s forward-looking statements are based on management’s current expectations and beliefs, and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although the Company believes that the assumptions underlying these forward-looking statements are reasonable, they are not guarantees and the Company can give no assurance that its expectations will be attained. Factors which could have a material adverse effect on the Company’s operations and future prospects or which could cause actual results to differ materially from expectations include, but are not limited to: (i) the ability to achieve some or all of the expected benefits from the completed spin-off from The Ensign Group, Inc. (“Ensign”); (ii) the ability and willingness of Company tenants to meet and/or perform their obligations under the triple-net leases the Company has entered into with them and the ability and willingness of Ensign to meet and/or perform its obligations under the contractual arrangements that it entered into with the Company in connection with such spin-off, including its triple-net long-term leases with the Company, and any of its obligations to indemnify, defend and hold the Company harmless from and against various claims, litigation and liabilities; (iii) the ability and willingness of the Company’s tenants to comply with laws, rules and regulations in the operation of the properties the Company leases to them; (iv) the ability and willingness of the Company’s tenants, including Ensign, to renew their leases with the Company upon expiration and the ability to reposition Company properties on the same or better terms in the event of nonrenewal or in the event the Company replaces an existing tenant, and obligations, including indemnification obligations, that the Company may incur in connection with the replacement of an existing tenant; (v) the availability of and the ability to identify suitable acquisition opportunities and the ability to acquire and lease the respective properties on favorable terms; (vi) the ability to generate sufficient cash flows to service the Company’s outstanding indebtedness; (vii) access to debt and equity capital markets; (viii) fluctuating interest rates; (ix) the ability to retain key management personnel; (x) the ability to maintain the Company’s status as a real estate investment trust (“REIT”); (xi) changes in the U.S. tax laws and other state, federal or local laws, whether or not specific to REITs; (xii) other risks inherent in the real estate business, including potential liability relating to environmental matters and illiquidity of real estate investments; and (xiii) any additional factors identified in the Company’s filings with the Securities and Exchange Commission (“SEC”), including those in the Company‘s Annual Report on Form 10-K for the year ended December 31, 2017 under the heading entitled “Risk Factors,” as such risk factors may be amended, supplemented or superseded from time to time by other reports the Company files with the SEC.

Information in this press release or the related conference call is provided as of June 30, 2018, unless specifically stated otherwise. The Company expressly disclaims any obligation to update or revise any information in this press release or the related conference call (and replays thereof), including forward-looking statements, whether to reflect any change in the Company’s expectations, any change in events, conditions or circumstances, or otherwise.

As used in this press release or the related conference call, unless the context requires otherwise, references to “CTRE,” "CareTrust," “CareTrust REIT” or the “Company” refer to CareTrust REIT, Inc. and its consolidated subsidiaries. GAAP refers to generally accepted accounting principles in the United States of America.

Contact:

CareTrust REIT, Inc.

(949) 542-3130

ir@caretrustreit.com

CARETRUST REIT, INC.
CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share data)
(unaudited)
		For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2018		2017		2018		2017
Revenues:
	Rental income	$	34,708	$	28,511	$	68,524	$	55,850
	Tenant reimbursements	3,016		2,389		5,984		4,710
	Independent living facilities	845		789		1,644		1,582
	Interest and other income	400		1,140		918		1,295
	Total revenues	38,969		32,829		77,070		63,437
Expenses:
	Depreciation and amortization	11,299		9,335		22,876		18,411
	Interest expense	7,285		6,219		14,377		12,098
	Loss on the extinguishment of debt	—		11,883		—		11,883
	Property taxes	3,016		2,389		5,984		4,710
	Independent living facilities	744		644		1,460		1,305
	Impairment of real estate investment	—		890		—		890
	General and administrative	3,358		2,977		6,550		5,367
	Total expenses	25,702		34,337		51,247		54,664
Other income:
	Gain on sale of real estate	—		—		2,051		—
	Gain on disposition of other real estate investment	—		3,538		—		3,538
Net income		$	13,267	$	2,030	$	27,874	$	12,311
Earnings per common share:
	Basic	$	0.17	$	0.03	$	0.36	$	0.17
	Diluted	$	0.17	$	0.03	$	0.36	$	0.17
Weighted average shares outstanding:
	Basic	76,374		72,564		75,941		69,773
	Diluted	76,374		72,564		75,941		69,773
Dividends declared per common share		$	0.205	$	0.185	$	0.41	$	0.37

CARETRUST REIT, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)
		Three Months Ended June 30,					Six Months Ended June 30,
		2018		2017			2018			2017
Net income		$	13,267	$	2,030		$	27,874		$	12,311
	Depreciation and amortization	11,299		9,335			22,876			18,411
	Interest expense	7,285		6,219			14,377			12,098
	Amortization of stock-based compensation	924		600			1,828			1,136
EBITDA		32,775		18,184			66,955			43,956
	Loss on the extinguishment of debt	—		11,883			—			11,883
	Deferred preferred return	—		(544		)	—			(544		)
	Impairment of real estate investment	—		890			—			890
	Gain on sale of real estate	—		—			(2,051		)	—
	Gain on disposition of other real estate investment	—		(3,538		)	—			(3,538		)
Normalized EBITDA		$	32,775	$	26,875		$	64,904		$	52,647
Net income		$	13,267	$	2,030		$	27,874		$	12,311
	Real estate related depreciation and amortization	11,265		9,309			22,814			18,359
	Impairment of real estate investment	—		890			—			890
	Gain on sale of real estate	—		—			(2,051		)	—
	Gain on disposition of other real estate investment	—		(3,538		)	—			(3,538		)
Funds from Operations (FFO)		24,532		8,691			48,637			28,022
	Deferred preferred return	—		(544		)	—			(544		)
	Effect of the senior unsecured notes payable redemption	—		12,475			—			12,475
Normalized FFO		$	24,532	$	20,622		$	48,637		$	39,953

CARETRUST REIT, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES (continued)
(in thousands, except per share data)
(unaudited)
		Three Months Ended June 30,						Six Months Ended June 30,
		2018			2017			2018			2017
Net income		$	13,267		$	2,030		$	27,874		$	12,311
	Real estate related depreciation and amortization	11,265			9,309			22,814			18,359
	Amortization of deferred financing fees	484			529			968			1,090
	Amortization of stock-based compensation	924			600			1,828			1,136
	Straight-line rental income	(342		)	(43		)	(933		)	(115		)
	Impairment of real estate investment	—			890			—			890
	Gain on sale of real estate	—			—			(2,051		)	—
	Gain on disposition of other real estate investment	—			(3,538		)	—			(3,538		)
Funds Available for Distribution (FAD)		25,598			9,777			50,500			30,133
	Deferred preferred return	—			(544		)	—			(544		)
	Effect of the senior unsecured notes payable redemption	—			12,475			—			12,475
Normalized FAD		$	25,598		$	21,708		$	50,500		$	42,064
FFO per share		$	0.32		$	0.12		$	0.64		$	0.40
Normalized FFO per share		$	0.32		$	0.28		$	0.64		$	0.57
FAD per share		$	0.33		$	0.13		$	0.66		$	0.43
Normalized FAD per share		$	0.33		$	0.30		$	0.66		$	0.60
	Diluted weighted average shares outstanding [1]	76,545			72,803			76,103			69,984
	[1] For the periods presented, the diluted weighted average shares have been calculated using the treasury stock method.

CARETRUST REIT, INC.
CONSOLIDATED INCOME STATEMENTS - 5 QUARTER TREND
(in thousands, except per share data)
(unaudited)
	Quarter		Quarter		Quarter		Quarter		Quarter
	Ended		Ended		Ended		Ended		Ended
	June 30, 2017		September 30, 2017		December 31, 2017		March 31, 2018		June 30, 2018
Revenues:
Rental income	$	28,511	$	29,404	$	32,379	$	33,816	$	34,708
Tenant reimbursements	2,389		2,543		3,001		2,968		3,016
Independent living facilities	789		825		821		799		845
Interest and other income	1,140		176		396		518		400
Total revenues	32,829		32,948		36,597		38,101		38,969
Expenses:
Depreciation and amortization	9,335		9,745		11,003		11,577		11,299
Interest expense	6,219		5,592		6,506		7,092		7,285
Loss on the extinguishment of debt	11,883		—		—		—		—
Property taxes	2,389		2,543		3,001		2,968		3,016
Independent living facilities	644		698		730		716		744
Impairment of real estate investment	890		—		—		—		—
Reserve for advances and deferred rent	—		—		10,414		—		—
General and administrative	2,977		3,059		2,691		3,192		3,358
Total expenses	34,337		21,637		34,345		25,545		25,702
Other income:
Gain on disposition of other real estate investment	3,538		—		—		—		—
Gain on sale of real estate	—		—		—		2,051		—
Net income	$	2,030	$	11,311	$	2,252	$	14,607	$	13,267
Diluted earnings per share	$	0.03	$	0.15	$	0.03	$	0.19	$	0.17
Diluted weighted average shares outstanding	72,564		75,471		75,476		75,504		76,374

CARETRUST REIT, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES - 5 QUARTER TREND
(in thousands, except per share data)
(unaudited)
	Quarter			Quarter		Quarter		Quarter			Quarter
	Ended			Ended		Ended		Ended			Ended
	June 30, 2017			September 30, 2017		December 31, 2017		March 31, 2018			June 30, 2018
Net income	$	2,030		$	11,311	$	2,252	$	14,607		$	13,267
Depreciation and amortization	9,335			9,745		11,003		11,577			11,299
Interest expense	6,219			5,592		6,506		7,092			7,285
Amortization of stock-based compensation	600			656		624		904			924
EBITDA	18,184			27,304		20,385		34,180			32,775
Loss on the extinguishment of debt	11,883			—		—		—			—
Deferred preferred return	(544		)	—		—		—			—
Impairment of real estate investment	890			—		—		—			—
Reserve for advances and deferred rent	—			—		10,414		—			—
Gain on sale of real estate	—			—		—		(2,051		)	—
Gain on disposition of other real estate investment	(3,538		)	—		—		—			—
Normalized EBITDA	$	26,875		$	27,304	$	30,799	$	32,129		$	32,775
Net income	$	2,030		$	11,311	$	2,252	$	14,607		$	13,267
Real estate related depreciation and amortization	9,309			9,717		10,973		11,549			11,265
Impairment of real estate investment	890			—		—		—			—
Gain on sale of real estate	—			—		—		(2,051		)	—
Gain on disposition of other real estate investment	(3,538		)	—		—		—			—
Funds from Operations (FFO)	8,691			21,028		13,225		24,105			24,532
Deferred preferred return	(544		)	—		—		—			—
Effect of the senior unsecured notes payable redemption	12,475			—		—		—			—
Reserve for advances and deferred rent	—			—		10,414		—			—
Normalized FFO	$	20,622		$	21,028	$	23,639	$	24,105		$	24,532

CARETRUST REIT, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES - 5 QUARTER TREND (continued)
(in thousands, except per share data)
(unaudited)
	Quarter			Quarter			Quarter			Quarter			Quarter
	Ended			Ended			Ended			Ended			Ended
	June 30, 2017			September 30, 2017			December 31, 2017			March 31, 2018			June 30, 2018
Net income	$	2,030		$	11,311		$	2,252		$	14,607		$	13,267
Real estate related depreciation and amortization	9,309			9,717			10,973			11,549			11,265
Amortization of deferred financing fees	529			484			485			484			484
Amortization of stock-based compensation	600			656			624			904			924
Straight-line rental income	(43		)	(2		)	(227		)	(591		)	(342		)
Impairment of real estate investment	890			—			—			—			—
Gain on sale of real estate	—			—			—			(2,051		)	—
Gain on disposition of other real estate investment	(3,538		)	—			—			—			—
Funds Available for Distribution (FAD)	9,777			22,166			14,107			24,902			25,598
Deferred preferred return	(544		)	—			—			—			—
Effect of the senior unsecured notes payable redemption	12,475			—			—			—			—
Reserve for advances and deferred rent	—			—			10,414			—			—
Normalized FAD	$	21,708		$	22,166		$	24,521		$	24,902		$	25,598
FFO per share	$	0.12		$	0.28		$	0.17		$	0.32		$	0.32
Normalized FFO per share	$	0.28		$	0.28		$	0.31		$	0.32		$	0.32
FAD per share	$	0.13		$	0.29		$	0.19		$	0.33		$	0.33
Normalized FAD per share	$	0.30		$	0.29		$	0.32		$	0.33		$	0.33
Diluted weighted average shares outstanding [1]	72,803			75,659			75,692			75,657			76,545
[1] For the periods presented, the diluted weighted average shares have been calculated using the treasury stock method.

CARETRUST REIT, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
		June 30, 2018			December 31, 2017
Assets:
Real estate investments, net		$	1,167,001		$	1,152,261
Other real estate investments, net		18,108			17,949
Cash and cash equivalents		11,560			6,909
Accounts and other receivables, net		9,023			5,254
Prepaid expenses and other assets		4,972			895
Deferred financing costs, net		1,176			1,718
	Total assets	$	1,211,840		$	1,184,986
Liabilities and Equity:
Senior unsecured notes payable, net		$	294,774		$	294,395
Senior unsecured term loan, net		99,564			99,517
Unsecured revolving credit facility		150,000			165,000
Accounts payable and accrued liabilities		12,515			17,413
Dividends payable		16,249			14,044
	Total liabilities	573,102			590,369
Equity:
Common stock		785			755
Additional paid-in capital		831,286			783,237
Cumulative distributions in excess of earnings		(193,333		)	(189,375		)
	Total equity	638,738			594,617
	Total liabilities and equity	$	1,211,840		$	1,184,986

CARETRUST REIT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
	For the Six Months Ended June 30,
	2018			2017
Cash flows from operating activities:
Net income	$	27,874		$	12,311
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including a below-market ground lease)	22,885			18,419
Amortization of deferred financing costs	969			1,131
Loss on the extinguishment of debt	—			11,883
Amortization of stock-based compensation	1,828			1,136
Straight-line rental income	(933		)	(115		)
Noncash interest income	(217		)	(320		)
Gain on sale of real estate	(2,051		)	—
Interest income distribution from other real estate investment	—			1,500
Impairment of real estate investment	—			890
Change in operating assets and liabilities:
Accounts and other receivables, net	(2,837		)	(3,414		)
Prepaid expenses and other assets	(462		)	(311		)
Accounts payable and accrued liabilities	(4,940		)	1,791
Net cash provided by operating activities	42,116			44,901
Cash flows from investing activities:
Acquisitions of real estate	(47,310		)	(96,641		)
Improvements to real estate	(506		)	(598		)
Purchases of equipment, furniture and fixtures	(702		)	(233		)
Investment in real estate mortgage and other loans receivable	(1,390		)	—
Principal payments received on mortgage loan receivable	58			—
Sale of other real estate investment	—			7,500
Escrow deposits for acquisitions of real estate	(2,250		)	(4,335		)
Net proceeds from the sale of real estate	13,004			—
Net cash used in investing activities	(39,096		)	(94,307		)
Cash flows from financing activities:
Proceeds from the issuance of common stock, net	47,547			170,485
Proceeds from the issuance of senior unsecured notes payable	—			300,000
Borrowings under unsecured revolving credit facility	60,000			63,000
Payments on senior unsecured notes payable	—			(267,639		)
Payments on unsecured revolving credit facility	(75,000		)	(158,000		)
Payments of deferred financing costs	—			(5,511		)
Net-settle adjustment on restricted stock	(1,288		)	(866		)
Dividends paid on common stock	(29,628		)	(24,497		)
Net cash provided by financing activities	1,631			76,972
Net increase in cash and cash equivalents	4,651			27,566
Cash and cash equivalents, beginning of period	6,909			7,500
Cash and cash equivalents, end of period	$	11,560		$	35,066

CARETRUST REIT, INC.
DEBT SUMMARY
(dollars in thousands)
(unaudited)
						June 30, 2018
	Interest			Maturity				% of		Deferred				Net Carrying
Debt	Rate			Date		Principal		Principal		Loan Costs				Value
Fixed Rate Debt
Senior unsecured notes payable	5.250	%		2025		$	300,000	54.5	%	$	(5,226	)		$	294,774
Floating Rate Debt
Senior unsecured term loan	4.044	%	[1]	2023		100,000		18.2	%	(436		)		99,564
Unsecured revolving credit facility	3.844	%	[2]	2020	[3]	150,000		27.3	%	—			[4]	150,000
	3.924	%				250,000		45.5	%	(436		)		249,564
Total Debt	4.647	%				$	550,000	100.0	%	$	(5,662	)		$	544,338
[1] Funds can be borrowed at applicable LIBOR plus 1.95% to 2.60% or at the Base Rate (as defined) plus 0.95% to 1.6%.
[2] Funds can be borrowed at applicable LIBOR plus 1.75% to 2.40% or the Base Rate (as defined) plus 0.75% to 1.4%.
[3] Maturity date assumes exercise of two 6-month extension options.
[4] Deferred financing fees are not shown net for the unsecured revolving credit facility and are included in assets on the balance sheet.

CARETRUST REIT, INC.
RECONCILIATIONS OF NET INCOME TO NON-GAAP FINANCIAL MEASURES
(shares in thousands)
(unaudited)
2018 Guidance
		Low			High
Net income		$	0.71		$	0.73
	Real estate related depreciation and amortization	0.58			0.58
	Gain on sale of real estate	(0.03		)	(0.03		)
Funds from Operations (FFO)		1.26			1.28
Normalized FFO		$	1.26		$	1.28
Net income		$	0.71		$	0.73
	Real estate related depreciation and amortization	0.58			0.58
	Amortization of deferred financing fees	0.03			0.03
	Amortization of stock-based compensation	0.05			0.05
	Straight-line rental income	(0.02		)	(0.02		)
	Gain on sale of real estate	(0.03		)	(0.03		)
Funds Available for Distribution (FAD)		1.32			1.34
Normalized FAD		$	1.32		$	1.34
Weighted average shares outstanding:
	Diluted	78,380			78,380

Non-GAAP Financial Measures

EBITDA represents net income before interest expense (including amortization of deferred financing costs), amortization of stock-based compensation, and depreciation and amortization. Normalized EBITDA represents EBITDA as further adjusted to eliminate the impact of certain items that the Company does not consider indicative of core operating performance, such as real estate impairment charges, certain deferred preferred return, losses on the extinguishment of debt, reserve for advances and deferred rent and gains or losses from dispositions of real estate or other real estate investments. EBITDA and Normalized EBITDA do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating the Company’s liquidity or operating performance. EBITDA and Normalized EBITDA do not purport to be indicative of cash available to fund future cash requirements, including the Company’s ability to fund capital expenditures or make payments on its indebtedness. Further, the Company’s computation of EBITDA and Normalized EBITDA may not be comparable to EBITDA and Normalized EBITDA reported by other REITs.

Funds from Operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), and Funds Available for Distribution (“FAD”) are important non-GAAP supplemental measures of operating performance for a REIT. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation except on land, such accounting presentation implies that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a REIT that uses historical cost accounting for depreciation could be less informative. Thus, NAREIT created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation and amortization, among other items, from net income, as defined by GAAP.

FFO is defined by NAREIT as net income computed in accordance with GAAP, excluding gains or losses from dispositions of real estate or other real estate investments, real estate depreciation and amortization and real estate impairment charges, and adjustments for unconsolidated partnerships and joint ventures. The Company computes FFO in accordance with NAREIT’s definition.

FAD is defined as FFO excluding non-cash income and expenses, such as amortization of stock-based compensation, amortization of deferred financing fees and the effects of straight-line rent. The Company considers FAD to be a useful supplemental measure to evaluate the Company’s operating results excluding these income and expense items to help investors, analysts and other interested parties compare the operating performance of the Company between periods or as compared to other companies on a more consistent basis.

In addition, the Company reports Normalized FFO and Normalized FAD, which adjust FFO and FAD for certain revenue and expense items that the Company does not believe are indicative of its ongoing operating results, such as losses on the extinguishment of debt, certain deferred preferred returns, the effect of the senior unsecured notes payable redemption and other unanticipated charges. By excluding these items, investors, analysts and our management can compare Normalized FFO and Normalized FAD between periods more consistently.

While FFO, Normalized FFO, FAD and Normalized FAD are relevant and widely-used measures of operating performance among REITs, they do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating the Company’s liquidity or operating performance. FFO, Normalized FFO, FAD and Normalized FAD do not purport to be indicative of cash available to fund future cash requirements.

Further, the Company’s computation of FFO, Normalized FFO, FAD and Normalized FAD may not be comparable to FFO, Normalized FFO, FAD and Normalized FAD reported by other REITs that do not define FFO in accordance with the current NAREIT definition or that interpret the current NAREIT definition or define FAD differently than the Company does.

The Company believes that net income, as defined by GAAP, is the most appropriate earnings measure. The Company also believes that the use of EBITDA, Normalized EBITDA, FFO, Normalized FFO, FAD and Normalized FAD, combined with the required GAAP presentations, improves the understanding of operating results of REITs among investors and makes comparisons of operating results among such companies more meaningful. The Company considers EBITDA and Normalized EBITDA useful in understanding the Company’s operating results independent of its capital structure, indebtedness and non-recurring charges, thereby allowing for a more meaningful comparison of operating performance between periods and against other REITs. The Company considers FFO, Normalized FFO, FAD and Normalized FAD to be useful measures for reviewing comparative operating and financial performance because, by excluding gains or losses from real estate dispositions, impairment charges and real estate depreciation and amortization, and, for FAD and Normalized FAD, by excluding non-cash income and expenses such as amortization of stock-based compensation, amortization of deferred financing fees, and the effects of straight-line rent, FFO, Normalized FFO, FAD and Normalized FAD can help investors compare the Company’s operating performance between periods and to other REITs.

EX-99.2

EXHIBITEXHIBITEXHIBIT 99.2 99.2 99.2 EXHIBIT 99.2 TheCascadia Rio at ofCabezon Nampa (Rio (Nampa, Rancho, ID) NM) The Rio at Cabezon (Rio Rancho, NM)

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 positions, business and acquisition strategies, growth prospects, operating and financial performance, expectations regarding the making of distributions, payment of dividends, compliance with and changes in governmental regulations, and the performance of our operators and their respective facilities. Words such as “anticipate,” “believe,” “could,” "expect,” “estimate,” “intend,” “may,” “plan,” “seek,” “should,” “will,” “would,” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements, though not all forward-looking statements contain these identifying words. Our forward-looking statements are based on our current expectations and beliefs, and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although we believe that the assumptions underlying these forward-looking statements are reasonable, they are not guarantees and we can give no assurance that our expectations will be attained. Factors which could have a material adverse effect on our operations and future prospects or which could cause actual results to differ materially from expectations include, but are not limited to: (i) the ability to achieve some or all of the expected benefits from the completed spin-off from The Ensign Group, Inc. (“Ensign”); (ii) the ability and willingness of our tenants to meet and/or perform their obligations under the triple-net leases we have entered into with them and the ability and willingness of Ensign to meet and/or perform its obligations under the contractual arrangements that it entered into with us in connection with such spin-off, including its triple-net long-term leases with us, and any of its obligations to indemnify, defend and hold us harmless from and against various claims, litigation and liabilities; (iii) the ability and willingness of our tenants to comply with laws, rules and regulations in the operation of the properties we lease to them; (iv) the ability and willingness of our tenants, including Ensign, to renew their leases with us upon expiration and the ability to reposition our properties on the same or better terms in the event of nonrenewal or in the event we replace an existing tenant, and obligations, including indemnification obligations, that we may incur in connection with the replacement of an existing tenant; (v) the availability of and the ability to identify suitable acquisition opportunities and the ability to acquire and lease the respective properties on favorable terms; (vi) the ability to generate sufficient cash flows to service our outstanding indebtedness; (vii) access to debt and equity capital markets; (viii) fluctuating interest rates; (ix) the ability to retain our key management personnel; (x) the ability to maintain our status as a real estate investment trust (“REIT”); (xi) changes in the U.S. tax laws and other state, federal or local laws, whether or not specific to REITs; (xii) other risks inherent in the real estate business, including potential liability relating to environmental matters and illiquidity of real estate investments; and (xiii) any additional factors identified in our filings with the Securities and Exchange Commission (“SEC”), including those in our Annual Report on Form 10-K for the year ended December 31, 2017 under the heading entitled “Risk Factors,” as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the SEC. This supplement contains certain non-GAAP financial information relating to CareTrust REIT including EBITDA, Normalized EBITDA, FFO, Normalized FFO, FAD, Normalized FAD, and certain related ratios. Explanatory footnotes and a glossary explaining this non-GAAP information are included in this supplement. Reconciliations of these non-GAAP measures are also included in this supplement. Other financial information, including GAAP financial information, is also available on our website. Non-GAAP financial information does not represent financial performance under GAAP and should not be considered in insolation, as a measure of liquidity, as an alternative to net income, or as an indicator of any other performance measure determined in accordance with GAAP. You should not rely on non-GAAP financial information as a substitute for GAAP financial information, and should recognize that non-GAAP information presented herein may not compare to similarly-termed non-GAAP information of other companies (i.e., because they do not use the same definitions for determining any such non-GAAP information). This supplement also includes certain information regarding operators of our properties (such as EBITDARM Coverage, EBITDAR Coverage, and Occupancy), most of which are not subject to audit or SEC reporting requirements. The operator information provided in this supplement has been provided by the operators. We have not independently verified this information, but have no reason to believe that such information is inaccurate in any material respect. We are providing this information for informational purposes only. Ensign is subject to the registration and reporting requirements of the SEC and is required to file with the SEC annual reports containing audited financial information and quarterly reports containing unaudited financial information. Ensign’s financial statements, as filed with the SEC, can be found at Ensign’s website http://www.ensigngroup.net. Information2 in this supplement is provided as of June 30, 2018, unless specifically stated otherwise. We expressly disclaim any obligation to update or revise any information in this supplement (including forward-looking statements), whether to reflect any change in our expectations, any change in events, conditions or circumstances, or otherwise. As used in this supplement, unless the context requires otherwise, references to “CTRE,” “CareTrust,” “CareTrust REIT” or the “Company” refer to CareTrust REIT, Inc. and its consolidated subsidiaries. GAAP refers to generally accepted accounting principles in the United States of America. 2

Company Profile Company Profile 3 CareTrust at a Glance 4 CareTrust REIT is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition and leasing Investments 5 of seniors housing and healthcare-related properties. CareTrust REIT generates revenues primarily by leasing properties to a diverse Portfolio Overview group of local, regional and national seniors housing operators, healthcare services providers, and other healthcare-related businesses. Portfolio Performance 6 Tenant Summary 7 Since its debut as a standalone public company on June 1, 2014, and as of August 1, 2018, CareTrust REIT has expanded its tenant Rent Diversification by Tenant 8 roster to 18 operators, and has grown its real estate portfolio to 189 net-leased healthcare properties and three operated seniors housing properties across 25 states, consisting of 18,630 operating beds/units. As of August 1, 2018, we also had other real estate Geographic Diversification 9 investments consisting of two preferred equity investments and a mortgage loan receivable. Rent Diversification by State 10 Lease Maturities 11 Management Financial Overview Consolidated Income Statements 13 Greg Stapley Bill Wagner Reconciliation of EBITDA, FFO and FAD 14 Chairman and Chief Executive Officer Chief Financial Officer Consolidated Balance Sheets 16 Key Debt Metrics 17 Dave Sedgwick Mark Lamb Chief Investment Officer Debt Summary 18 Chief Operating Officer 2018 Guidance 19 Equity Capital Transactions 20 Board of Directors Other Financial Highlights 21 Glossary 22 Greg Stapley David Lindahl Jon Kline Allen Barbieri Spencer Plumb Chairman Contact Information Analyst Coverage CareTrust REIT, Inc. 905 Calle Amanecer, Suite 300 San Clemente, CA 92673 KeyBanc Capital Markets Raymond James Wells Fargo Securities Jordan Sadler | (917) 318-2280 Jonathan Hughes | (727) 567-2438 Todd Stender | (562) 637-1371 (949) 542-3130 | ir@caretrustreit.com www.caretrustreit.com RBC Capital Markets Stifel, Nicolaus & Company BMO Capital Markets Michael Carroll | (440) 715-2649 Chad Vanacore | (518) 587-2581 John Kim | (212) 885-4115 Transfer Agent CapitalOne Securities JMP Research Stephens Broadridge Corporate Issuer Solutions Dan Bernstein | (571) 835-7202 Peter Martin | (415) 835-8904 Dana Hambly, CFA | (615) 279-4329 P.O. Box 1342 Brentwood, NY 11717 Cantor Fitzgerald & Company (800) 733-1121 | shareholder@broadridge.com Joe France | (212) 915-1239 3

CareTrust REIT, Inc. Nasdaq: CTRE Market Data (as of June 30, 2018) Closing Price: $16.69 52 Week Range: $19.82 – $12.73 Market Cap: $1,320M Enterprise Value: $1,870M Outstanding Shares: 79.1M 188 24 States Credit Ratings Properties Credit Ratings S&P S&PCorporate Rating: B+ (positive) CorporateSenior Unsecured Rating: BB-Notes: (stable) BB- Senior Unsecured Notes: BB Moody’s 18 Operators Moody’sCorporate Rating: B1 (positive) CorporateSenior Unsecured Rating: Ba3Notes: (positive) B1 18,531 $1,377.7 M Senior Unsecured Notes: Ba3 Operating Investments Beds/Units Note: 44 Amounts are as of June 30, 2018 and exclude our three operated seniors housing properties, two preferred equity investments and a mortgage loan receivable.

Investments (dollars in thousands) Property Initial Initial Operating Cost per Date Operator Type Location Facilities Investment[1] Bed/Unit [2] Bed/Unit [3] Initial Rent [4] Initial Yield[5] ALF, SNF, 6/1/2014 The Ensign Group Campus Various 94 $ 501,673 10,053 $ 50 $ 56,000 N/A 2014 Investments 6 33,609 157 166 3,076 9.2% 2015 Investments 20 233,028 1,840 127 22,263 9.6% 2016 Investments 35 288,023 2,800 101 26,084 9.1% 2017 Investments 36 309,805 3,324 92 28,000 9.0% 02/01/2018 Eduro Healthcare, LLC SNF MT 1 5,799 100 58 540 9.3% 03/01/2018 Metron Integrated Health Systems SNF MI 5 41,570 422 99 3,735 9.0% 07/18/2018 Eduro Healthcare, LLC SNF SD 1 9,705 99 98 869 9.0% 2018 Investments 7 57,074 621 92 5,144 9.0% Total Post Spin-off Investments[6] 104 921,539 8,742 103 84,567 9.2% Total Investments[6] 198 $ 1,423,212 18,795 $ 75 $ 140,567 Notes: [1] Initial Investment for pre-spin properties represents Ensign's gross book value. Initial Investment for post-spin properties represents CareTrust REIT’s purchase price and transaction costs. [2] Initial Operating Beds/Units as of the acquisition date. [3] Total Cost per Bed/Unit excludes preferred equity investments and a mortgage loan receivable. [4] Initial Rent represents the annualized acquisition-date cash rent or deferred interest income on preferred equity investments. [5] Initial Yield represents Initial Rent divided by Initial Investment. [6] All amounts exclude our three operated seniors housing properties and, except as otherwise indicated, include the preferred equity investments and a mortgage loan receivable. 5

Portfolio Performance (dollars in thousands) As of June 30, 2018 Operating % of Total % of Total Asset Type Facilities Beds/Units Investment [1] Investment Rent [2] Rent Current Yield [3] Skilled Nursing 136 13,294 $979,626 71.1% $101,050 72.9% 10.3% Multi-Service Campus 16 2,315 177,196 12.9% 17,778 12.8% 10.0% Seniors Housing 36 2,922 220,874 16.0% 19,810 14.3% 9.0% Total Net-Leased Assets [4] 188 18,531 $1,377,696 100.0% $138,638 100.0% 10.1% Total Portfolio Total Portfolio less The Ensign Group & Transitioned Facilities[6] For the twelve-month period ended March 31, 2018 [5] For the twelve-month period ended March 31, 2018 [5] EBITDAR EBITDARM EBITDAR EBITDARM Asset Type Coverage Coverage Occupancy Coverage Coverage Occupancy Skilled Nursing 1.70x 2.24x 77.6% 1.40x 1.86x 78.6% Multi-Service Campus 1.80x 2.25x 78.6% 1.67x 2.00x 77.9% Seniors Housing 1.31x 1.55x 84.6% 1.13x 1.32x 88.5% Total 1.66x 2.14x 78.7% 1.36x 1.75x 80.6% Notes: [1] Investment for pre-spin properties represents Ensign's gross book value. Investment for post-spin properties represents CareTrust REIT’s cumulative capital investment. Capital investment includes purchase price, transaction costs and landlord-funded capital expenditures, if any. [2] Rent represents June 2018 rent, annualized, or based on the initial cash rents annualized. [3] Current Yield represents Rent divided by Investment. [4] All amounts exclude our three operated seniors housing properties and our two preferred equity investments and mortgage loan receivable. [5] EBITDAR Coverage, EBITDARM Coverage and Occupancy include information provided by our tenants. We have not independently verified this information, but have no reason to believe that such information is inaccurate in any material respect. [6] Transitioned facilities include 16 Pristine Senior Living facilities transitioned in December 2017 & May 2018, 4 Better Senior Living facilities transitioned in December 2017, 3 Cross Healthcare facilities sold in March 2018 and 2 OnPointe Health facilities transitioned in May 2018. See “Glossary” for additional information. 6

Tenant Summary 7

Rent Diversification by Tenant (dollars in thousands) As of June 30, 2018 Operating % of Total % of Total Facilities Beds/Units Investment[1] Investment Rent[2] Rent 1 The Ensign Group 92 9,805 501,246 36.4% 59,114 42.6% 2 Trillium Healthcare Group 18 1,362 127,278 9.2% 11,568 8.3% 3 Priority Management Group 7 981 116,229 8.4% 10,622 7.7% 4 Trio Healthcare 7 674 88,391 6.4% 8,785 6.3% 5 Cascadia Healthcare 11 914 86,168 6.3% 8,035 5.8% Total Top 5 Tenants 135 13,736 919,312 66.7% 98,124 70.7% 6 Providence Group 4 654 83,743 6.1% 7,622 5.5% 7 Premier Senior Living Group 8 385 68,564 5.0% 6,181 4.5% 8 WLC Management 7 644 37,424 2.7% 3,804 2.7% 9 Metron Integrated Health Systems 5 422 41,570 3.0% 3,735 2.7% 10 Priority Life Care 7 796 43,373 3.1% 3,230 2.3% Total Top 10 Tenants 166 16,637 1,193,986 86.6% 122,696 88.4% All Other Tenants 22 1,894 183,710 13.4% 15,942 11.6% Total [3] 188 18,531 $ 1,377,696 100.0% $ 138,638 100.0% Notes: [1] Investment for pre-spin properties represents Ensign's gross book value. Investment for post-spin properties represents CareTrust REIT’s cumulative capital investment. Capital investment includes purchase price, transaction costs and landlord-funded capital expenditures, if any. [2] Rent represents June 2018 rent, annualized, or based on the initial cash rents annualized. [3] All amounts exclude our three operated seniors housing properties and our two preferred equity investments and mortgage loan receivable. 8

Top Five States OH: 12.2% AZ: 6.6% ID: 7.6% CA: 19.1% 1 ALF TX: 19.2% Others: 35.3% Run-Rate Rent Run-Rate 1 ALF OH: 13.9% AZ: 4.4% ID: 7.4% CA: 16.4% 1 SNF Investment TX: 19.1% Others: 38.8% OH: 8.0% AZ: 7.2% ID: 6.7% CA: 16.0% TX: 21.2% Beds/Units Others: 40.9% 9

Rent Diversification by State (dollars in thousands) As of June 30, 2018 Net-Leased Assets by State Operating % of Total % of Total Facilities Beds/Units Investment[1] Investment Rent[2] Rent 1 Texas 32 3,939 $ 263,735 19.1% $ 26,687 19.2% 2 California 25 2,971 226,538 16.4% 26,467 19.1% 3 Ohio 16 1,488 191,911 13.9% 16,911 12.2% 4 Idaho 15 1,241 101,602 7.4% 10,596 7.6% 5 Arizona 10 1,327 60,753 4.4% 9,219 6.6% Top 5 States 98 10,966 844,539 61.2% 89,880 64.7% 6 Michigan 9 611 72,222 5.2% 6,613 4.8% 7 Washington 12 1,015 61,730 4.5% 6,404 4.6% 8 Utah 11 1,252 77,322 5.6% 6,187 4.5% 9 Iowa 15 986 53,488 3.9% 5,563 4.0% 10 Colorado 6 633 40,819 3.0% 4,158 3.0% Top 10 States 151 15,463 1,150,120 83.4% 118,805 85.6% All Other States 37 3,068 227,576 16.6% 19,833 14.4% Total[3] 188 18,531 $ 1,377,696 100.0% $ 138,638 100.0% Notes: [1] Investment for pre-spin properties represents Ensign's gross book value. For post-spin properties, Investment represents CareTrust REIT’s cumulative capital investment. Capital investment includes purchase price, transaction costs and landlord-funded capital expenditures, if any. [2] Rent represents June 2018 rent, annualized, or based on the initial cash rents annualized. [3] All amounts exclude our three operated seniors housing properties and our two preferred equity investments and our mortgage loan receivable. 10

Lease Maturities (dollars in thousands) As of June 30, 2018 Lease Maturity % of Total % of Total Year[1] Investment[2] Investment Rent[3] Rent 2019 $ 34,415 2.5% $ 3,224 2.3% 2020-2025 — — — — — 2026 58,157 4.2% 6,606 4.8% 2027 55,929 4.1% 5,861 4.2% 2028 79,914 5.8% 7,969 5.7% 2029 114,770 8.3% 9,938 7.2% 2030 247,774 18.0% 22,067 15.9% 2031 381,759 27.7% 35,584 25.7% 2032 210,526 15.3% 23,363 16.9% 2033 194,452 14.1% 24,026 17.3% Providence Orangetree (Riverside, CA) Total[4] $ 1,377,696 100.0% $ 138,638 100.0% Notes: [1] Lease Maturity Year represents the scheduled expiration year of the primary term of the lease and does not include tenant extension options, if any. [2] Investment for pre-spin properties represents Ensign's gross book value. For post-spin properties, Investment represents CareTrust REIT’s cumulative capital investment. Capital investment includes purchase price, transaction costs and landlord-funded capital expenditures, if any. [3] Rent represents June 2018 rent, annualized. [4] All amounts exclude our three operated seniors housing properties and our two preferred equity investments and our mortgage loan receivable. 25.7% 17.3% 15.9% 16.9% of Rent 7.2% 5.7% % 4.8% 4.2% 2.3% 2019 2020-2025 2026 2027 2028 2029 2030 2031 2032 2033 Lease Maturity Year 11

The Rio at Cabezon (Rio Rancho, NM) 12

Consolidated Income Statements (amounts in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenues: Rental income $ 34,708 $ 28,511 $ 68,524 $ 55,850 Tenant reimbursements 3,016 2,389 5,984 4,710 Independent living facilities 845 789 1,644 1,582 Interest and other income 400 1,140 918 1,295 Total revenues 38,969 32,829 77,070 63,437 Expenses: Depreciation and amortization 11,299 9,335 22,876 18,411 Interest expense 7,285 6,219 14,377 12,098 Loss on the extinguishment of debt — 11,883 — 11,883 Property taxes 3,016 2,389 5,984 4,710 Independent living facilities 744 644 1,460 1,305 Impairment of real estate investment — 890 — 890 General and administrative 3,358 2,977 6,550 5,367 Total expenses 25,702 34,337 51,247 54,664 Other income: Gain on sale of real estate — — 2,051 — Gain on disposition of other real estate investment — 3,538 — 3,538 Net income $ 13,267 $ 2,030 $ 27,874 $ 12,311 Earnings per common share: Basic $ 0.17 $ 0.03 $ 0.36 $ 0.17 Diluted $ 0.17 $ 0.03 $ 0.36 $ 0.17 Weighted-average number of common shares: Basic 76,374 72,564 75,941 69,773 Diluted 76,374 72,564 75,941 69,773 Dividends declared per common share $ 0.205 $ 0.185 $ 0.41 $ 0.37 13

Reconciliation of EBITDA, FFO and FAD Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended (amounts in thousands, except per share data) June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018 June 30, 2018 Net income $ 2,030 $ 11,311 $ 2,252 $ 14,607 $ 13,267 Depreciation and amortization 9,335 9,745 11,003 11,577 11,299 Interest expense 6,219 5,592 6,506 7,092 7,285 Amortization of stock-based compensation 600 656 624 904 924 EBITDA 18,184 27,304 20,385 34,180 32,775 Loss on the extinguishment of debt 11,883 — — — — Deferred preferred return (544) — — — — Impairment of real estate investment 890 — — — — Reserve for advances and deferred rent — — 10,414 — — Gain on sale of real estate — — — (2,051) — Gain on disposition of other real estate investment (3,538) — — — — Normalized EBITDA $ 26,875 $ 27,304 $ 30,799 $ 32,129 $ 32,775 Net income $ 2,030 $ 11,311 $ 2,252 $ 14,607 $ 13,267 Real estate related depreciation and amortization 9,309 9,717 10,973 11,549 11,265 Impairment of real estate investment 890 — — — — Gain on sale of real estate — — — (2,051) — Gain on disposition of other real estate investment (3,538) — — — — Funds from Operations (FFO) 8,691 21,028 13,225 24,105 24,532 Deferred preferred return (544) — — — — Effect of the senior unsecured notes payable redemption 12,475 — — — — Reserve for advances and deferred rent — — 10,414 — — Normalized FFO $ 20,622 $ 21,028 $ 23,639 $ 24,105 $ 24,532 See Glossary for additional information. 14

Reconciliation of EBITDA, FFO and FAD (continued) Quarter Quarter Quarter Quarter Quarter Ended Ended Ended Ended Ended (amounts in thousands, except per share data) June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018 June 30, 2018 Net income $ 2,030 $ 11,311 $ 2,252 $ 14,607 $ 13,267 Real estate related depreciation and amortization 9,309 9,717 10,973 11,549 11,265 Amortization of deferred financing fees 529 484 485 484 484 Amortization of stock-based compensation 600 656 624 904 924 Straight-line rental income (43) (2) (227) (591) (342) Impairment of real estate investment 890 — — — — Gain on sale of real estate — — — (2,051) — Gain on disposition of other real estate investment (3,538) — — — — Funds Available for Distribution (FAD) 9,777 22,166 14,107 24,902 25,598 Deferred preferred return (544) — — — — Effect of the senior unsecured notes payable redemption 12,475 — — — — Reserve for advances and deferred rent — — 10,414 — — Normalized FAD $ 21,708 $ 22,166 $ 24,521 $ 24,902 $ 25,598 FFO per share $ 0.12 $ 0.28 $ 0.17 $ 0.32 $ 0.32 Normalized FFO per share $ 0.28 $ 0.28 $ 0.31 $ 0.32 $ 0.32 FAD per share $ 0.13 $ 0.29 $ 0.19 $ 0.33 $ 0.33 Normalized FAD per share $ 0.30 $ 0.29 $ 0.32 $ 0.33 $ 0.33 Diluted weighted average shares outstanding [1] 72,803 75,659 75,692 75,657 76,545 [1] For the periods presented, the diluted weighted average shares have been calculated using the treasury stock method. See Glossary for additional information. 15

Consolidated Balance Sheets (dollars in thousands) June 30, 2018 December 31, 2017 Assets: Real estate investments, net $ 1,167,001 $ 1,152,261 Other real estate investments, net 18,108 17,949 Cash and cash equivalents 11,560 6,909 Accounts and other receivables, net 9,023 5,254 Prepaid expenses and other assets 4,972 895 Deferred financing costs, net 1,176 1,718 Total assets $ 1,211,840 $ 1,184,986 Liabilities and Equity: Senior unsecured notes payable, net $ 294,774 $ 294,395 Senior unsecured term loan, net 99,564 99,517 Unsecured revolving credit facility 150,000 165,000 Accounts payable and accrued liabilities 12,515 17,413 Dividends payable 16,249 14,044 Total liabilities 573,102 590,369 Equity: Common stock 785 755 Additional paid-in capital 831,286 783,237 Cumulative distributions in excess of earnings (193,333) (189,375) Total equity 638,738 594,617 Total liabilities and equity $ 1,211,840 $ 1,184,986 16

Key Debt Metrics Debt to Normalized EBITDA [1][2] Debt to Enterprise Value [3] 5.37 43.1% 5.18 5.00 4.87 37.4% 4.70 34.9% 35.0% 4.53 4.59 4.67 33.2% 31.3% 30.8% 4.19 29.0% 24.1% 25.5% 3.75 3.72 22.1% 5 6 6 6 6 7 7 7 7 8 8 5 6 6 6 6 7 7 7 7 8 8 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 1 1 0 0 1 1 0 0 1 1 0 1 1 0 0 1 1 0 0 1 1 0 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 2 3 6 9 2 3 6 9 2 3 6 2 3 6 9 2 3 6 9 2 3 6 1 1 1 1 1 1 [1] Debt to Normalized EBITDA compares total debt as of the last day of the quarter to the annualized Normalized EBITDA for the quarter. [2] See "Financials & Filings - Quarterly Results" on the Investors section of our website at http://investor.caretrustreit.com for reconciliations of Normalized EBITDA to the most directly comparable GAAP measure for the periods presented. [3] Debt to Enterprise Value compares total debt as of the last day of the quarter to CareTrust REIT’s Enterprise Value as of the last day of the quarter. See “Glossary” for additional information. 17

Debt Summary (dollars in thousands) June 30, 2018 Interest Maturity % of Deferred Net Carrying Debt Rate Date Principal Principal Loan Costs Value Fixed Rate Debt Senior unsecured notes payable 5.250% 2025 $ 300,000 54.5% $ (5,226) $ 294,774 Floating Rate Debt Senior unsecured term loan 4.044% [1] 2023 100,000 18.2% (436) 99,564 Unsecured revolving credit facility 3.844% [2] 2020 [3] 150,000 27.3% — [4] 150,000 3.924% 250,000 45.5% (436) 249,564 Total Debt 4.647% $ 550,000 100.0% $ (5,662) $ 544,338 $300,000 $150,000 $100,000 Principal 2018 2019 2020 2021 2022 2023 2024 2025 Debt Maturity Year Notes: [1] Funds can be borrowed at applicable LIBOR plus 1.95% to 2.60% or at the Base Rate (as defined) plus 0.95% to 1.6%. [2] Funds can be borrowed at applicable LIBOR plus 1.75% to 2.40% or at the Base Rate (as defined) plus 0.75% to 1.4%. [3] Maturity date assumes exercise of two, 6-month extension options. [4] Deferred financing fees are not shown net for the unsecured revolving credit facility and are included in assets on the balance sheet. 18

2018 Guidance (shares in thousands) Low High Net income $ 0.71 $ 0.73 Real estate related depreciation and amortization 0.58 0.58 Gain on sale of real estate (0.03) (0.03) Funds from Operations (FFO) 1.26 1.28 Normalized FFO $ 1.26 $ 1.28 Net income $ 0.71 $ 0.73 Real estate related depreciation and amortization 0.58 0.58 Amortization of deferred financing fees 0.03 0.03 Amortization of stock-based compensation 0.05 0.05 Straight-line rental income (0.02) (0.02) Gain on sale of real estate (0.03) (0.03) Funds Available for Distribution (FAD) 1.32 1.34 Normalized FAD $ 1.32 $ 1.34 Weighted average shares outstanding: Diluted 78,380 78,380 See “Glossary” for additional information. 19

Equity Capital Transactions Follow-On Equity Offering Activity 2015 2016 Q1 Q2 Q3 Q4 Total Number of Shares (000s) 16,330 — 9,775 — 6,325 16,100 Public Offering Price per Share $ 10.50 $ — $ 11.35 $ — $ 13.35 $ 12.14 [1] Gross Proceeds (000s) $ 171,465 $ — $ 110,946 $ — $ 84,439 $ 195,385 At-the-Market Offering Activity 2016 2017 2018 Q1 Q2 Q3[2] Total Number of Shares (000s) 924 10,574 — 2,989 1,869 4,858 Average Price per Share $ 15.31 $ 16.43 $ — $ 16.13 $ 17.11 $ 16.50 Gross Proceeds (000s) $ 14,147 $ 173,760 $ — $ 48,198 $ 31,976 $ 80,173 Notes: [1] Represents average offering price per share for follow-on equity offerings. [2] Represents activity in July 2018. At July 31, 2018, we had approximately $155.9 million available for future issuances under the ATM Program. 20

Other Financial Highlights Dividend History Normalized FFO Payout Ratio [1][2] $0.205 $0.205 66.1% 66.1% 63.0% 63.0% 60.7% 60.7% 63.8% 59.7% 64.1% 64.1% $0.185 $0.185 $0.185 $0.185 $0.17 $0.17 $0.17 $0.17 6 6 6 6 7 7 7 7 8 8 6 6 6 6 7 7 7 7 8 8 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 /1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 /2 /2 /2 /2 /2 /2 /2 /2 /2 3 / / / / / / / / / / 1 0 0 1 1 0 0 1 1 / 1 0 0 1 1 0 0 1 1 0 3 3 3 3 3 3 3 3 3 6 3 3 3 3 3 3 3 3 3 3 / / / / / / / / / / / / / / / / / / / 3 6 9 2 3 6 9 2 3 3 6 9 2 3 6 9 2 3 6 1 1 1 1 Normalized FFO per Share [2] Normalized FFO [2] $24,532 $0.32 $0.32 $23,639 $24,105 $0.31 $20,622 $21,028 $19,331 $0.29 $17,160 $16,258 $0.28 $0.28 $0.28 $0.28 $15,498 $0.27 $0.27 $13,098 6 6 6 6 7 7 7 7 8 8 6 6 6 6 7 7 7 7 8 8 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 1 0 0 1 1 0 0 1 1 0 1 0 0 1 1 0 0 1 1 0 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 /3 3 6 9 2 3 6 9 2 3 6 3 6 9 2 3 6 9 2 3 6 1 1 1 1 Notes: [1] Normalized FFO Payout Ratio represents dividends declared divided by Normalized FFO, in each case for the applicable quarter. [2] See “Financials & Filings - Quarterly Results” on the Investors section of our website at http://investor.caretrustreit.com for a reconciliation of Normalized FFO and Normalized FFO per Share to the most directly comparable GAAP measure for the periods presented. See “Glossary” for additional information. 21

Glossary Assisted Living Facilities (“ALFs”) EBITDARM Coverage Licensed healthcare facilities that provide personal care services, support and housing Aggregate EBITDARM produced by all facilities under a master lease (or other for those who need help with daily living activities, such as bathing, eating and grouping) divided by the base rent payable to CareTrust REIT under such master lease dressing, yet require limited medical care. The programs and services may include (or other grouping) for the same period. For this supplement, the reported period is transportation, social activities, exercise and fitness programs, beauty or barber shop the trailing twelve-month period ended March 31, 2018. Notwithstanding the access, hobby and craft activities, community excursions, meals in a dining room foregoing, for any facility for which CareTrust REIT has not received four consecutive setting and other activities sought by residents. These facilities are often in apartment- quarters of post-acquisition operating reports, the quarterly EBITDARM used in this like buildings with private residences ranging from single rooms to large apartments. calculation is the proforma EBITDARM utilized in CareTrust REIT’s underwriting Certain ALFs may offer higher levels of personal assistance for residents requiring process annualized. Beginning with the fifth quarter of reported post-acquisition memory care as a result of Alzheimer’s disease or other forms of dementia. Levels of operating performance, each reported quarter EBITDARM replaces the oldest personal assistance are based in part on local regulations.  underwriting proforma quarter EBITDARM, until all previously-used proforma quarters EBITDARM amounts are eliminated from the calculation. EBITDA Net income before interest expense, income tax, depreciation and amortization and Enterprise Value amortization of stock-based compensation.[1] Share price multiplied by the number of outstanding shares plus total outstanding debt, each as of a specified date. EBITDAR Net income before interest expense, income tax, depreciation, amortization and rent, Funds Available for Distribution (“FAD”) after applying a standardized management fee (5% of facility operating revenues). FFO, excluding straight-line rental income adjustments and amortization of deferred financing fees and stock-based compensation expense.[2] EBITDAR Coverage Aggregate EBITDAR produced by all facilities under a master lease (or other grouping) Funds from Operations (“FFO”) divided by the base rent payable to CareTrust REIT under such master lease (or other Net income, excluding gains and losses from dispositions of real estate or other real grouping) for the same period. For this supplement, the reported period is the trailing estate, before real estate depreciation and amortization and real estate impairment twelve-month period ended March 31, 2018. Notwithstanding the foregoing, for any charges. CareTrust REIT calculates and reports FFO in accordance with the definition facility for which CareTrust REIT has not received four consecutive quarters of post- and interpretive guidelines issued by the National Association of Real Estate acquisition operating reports, the quarterly EBITDAR used in this calculation is the Investment Trusts.[2] proforma EBITDAR utilized in CareTrust REIT’s underwriting process, annualized. Beginning with the fifth quarter of reported post-acquisition operating performance, Independent Living Facilities (“ILFs”) each reported quarter EBITDAR replaces the oldest underwriting proforma quarter Also known as retirement communities or senior apartments, ILFs are not healthcare EBITDAR, until all previously-used proforma quarters EBITDAR amounts are eliminated facilities. ILFs typically consist of entirely self-contained apartments, complete with from the calculation. their own kitchens, baths and individual living spaces, as well as parking for tenant vehicles. They are most often rented unfurnished, and generally can be personalized EBITDARM by the tenants, typically an individual or a couple over the age of 55. These facilities Earnings before interest expense, income tax, depreciation, amortization, cash rent, offer various services and amenities such as laundry, housekeeping, dining options/ and a standardized management fee (5% of facility operating revenues). meal plans, exercise and wellness programs, transportation, social, cultural and recreational activities, and on-site security. 22

Glossary Multi-Service Campus Notes: Facilities that include a combination of Skilled Nursing beds and Seniors Housing [1] EBITDA and Normalized EBITDA do not represent cash flows from operations or units. net income as defined by GAAP and should not be considered an alternative to those measures in evaluating the Company’s liquidity or operating performance. EBITDA Normalized EBITDA and Normalized EBITDA do not purport to be indicative of cash available to fund future EBITDA, adjusted for certain income and expense items the Company does not believe cash requirements, including the Company’s ability to fund capital expenditures or are indicative of its ongoing results, such as certain acquisition costs, real estate make payments on its indebtedness. Further, the Company’s computation of EBITDA impairment charges, losses on the extinguishment of debt, certain deferred preferred and Normalized EBITDA may not be comparable to EBITDA and Normalized EBITDA returns, reserve for advances and deferred rent and gains or losses from dispositions reported by other REITs. of real estate or other real estate.[1] [2] CareTrust REIT believes FAD, FFO, Normalized FAD, and Normalized FFO (and their Normalized FAD related per-share amounts) are important non-GAAP supplemental measures of its FAD, adjusted for certain income and expense items the Company does not believe operating performance. Because the historical cost accounting convention used for are indicative of its ongoing results, such as certain reserves for advances and deferred real estate assets requires straight-line depreciation (except on land), such accounting rent, certain deferred preferred returns, and the effect of the senior unsecured notes presentation implies that the value of real estate assets diminishes predictably over payable redemption.[2] time, even though real estate values have historically risen or fallen with market and other conditions. Moreover, by excluding items not indicative of ongoing results, Normalized FFO Normalized FAD and Normalized FFO can facilitate meaningful comparisons of FFO, adjusted for certain income and expense items the Company does not believe operating performance between periods and between other companies. However, are indicative of its ongoing results, and certain reserves for advances and deferred FAD, FFO, Normalized FAD, and Normalized FFO (and their per-share amounts) do not rent, certain deferred preferred returns, and the effect of the senior unsecured notes represent cash flows from operations or net income attributable to shareholders as payable redemption.[2] defined by GAAP and should not be considered an alternative to those measures in evaluating the Company’s liquidity or operating performance. Occupancy A facility’s occupied operating beds/units divided by the total available operating beds/units for that facility, in each case for the trailing twelve-months ended March 31, 2018; provided that Occupancy for any facility acquired during such twelve-months period may be normalized. Seniors Housing Includes ALFs, ILFs, dedicated memory care facilities and similar facilities. Skilled Nursing or Skilled Nursing Facilities (“SNFs”) Licensed healthcare facilities that provide restorative, rehabilitative and nursing care for people not requiring the more extensive and sophisticated treatment available at an acute care hospital or long-term acute care hospital. Treatment programs include physical, occupational, speech, respiratory, ventilator, and wound therapy. 23

Cascadia of Nampa (Nampa, ID)