CareTrust REIT, Inc. (NASDAQ:CTRE) Q4 2022 Earnings Call Transcript

Dave Sedgwick: I think we’ve really offering upside and participation. I think that we work really close with the tenants we’re looking to put in on some of these value add, if you will, transactions to work really closely side by side to try and come up with the best we can in terms of underwriting run rate for labor and what the occupancy can do. Those are difficult assumptions to make right now and I think the closer we work with the incoming operator to look at historic, where, if we have assets in the area, what they’ve been doing on their turnaround with respect to labor and occupancy and trying to mimic that with the deals we’re looking at, I think we just try to get to the best assumptions we can with the tenant, who has the more local knowledge and localized expertise to come up with a stabilized rent structure.

And if a ramp is needed, then we definitely are open to looking at that and look at other creative ways to help them get to the point where we feel like the facilities will be stabilized.

Austin Wurschmidt: Thanks for taking the question. End of QA

Operator: There are no further questions at this time. With that said, concludes today’s conference. Thank you for attending today’s presentation. You may now disconnect.