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Financial Data and Key Metrics Changes - The third quarter normalized FFO per share was $0.45, representing approximately 18% growth over the prior year quarter [3][17] - Normalized FFO increased 55.5% over the prior year quarter to $94.7 million, and normalized FAD increased 50.6% to $93.1 million [17] - The company raised $736 million from an equity issuance, enhancing its financial flexibility [17][19] Business Line Data and Key Metrics Changes - The company closed on $495 million of new investments in the third quarter, bringing the year-to-date total to over $1.6 billion [5][6] - The investment pipeline is approximately $600 million, with about half in U.S. skilled nursing, a third in U.K. care homes, and the remainder in SHOP and strategic loans [13][14] Market Data and Key Metrics Changes - The U.K. acquisition has expanded the company's deal pipeline, now accounting for roughly a third of the total pipeline [7] - The blended stabilized yield on post-quarter-end investments is approximately 8.8% [13] Company Strategy and Development Direction - The company aims to grow by adding two new engines of growth: U.K. care homes and SHOP, alongside its core U.S. skilled nursing facilities [6][7] - The focus is on long-term growth, with a vision for the next decade rather than short-term results [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position going into 2026, highlighting a stronger team, better portfolio, and greater liquidity [9][10] - The management team is optimistic about the growth potential in the U.S. skilled nursing, U.K. care homes, and SHOP sectors [10][72] Other Important Information - The company has maintained low leverage with net debt to EBITDA of 0.43 times and a fixed charge coverage ratio of 11 times as of quarter-end [20] - The company is preparing for a transition in leadership as the CFO will retire at the end of the year [16] Q&A Session Summary Question: Expected yields across SNFs, U.K. care homes, and seniors housing - The expected yield for SNFs is typically around 9%, U.K. care homes around 8.5% or higher, and seniors housing yields are expected to be 7% or higher depending on various factors [24] Question: Plans to minimize duration gap in equity raises - The company is evaluating options on a case-by-case basis and has not found it necessary to pursue forward equity raises yet [26] Question: Investments in seniors housing operating portfolio - Investments began at the end of last year, with plans to add more personnel to support growth in the SHOP segment [30] Question: Comparison of U.K. and U.S. markets - The U.K. market is seeing increased activity and a growing pipeline since the acquisition of CareREIT, with the company remaining competitive [36] Question: Application of data science investments - The data science platform will enhance productivity and decision-making across all departments, particularly benefiting the SHOP business [38] Question: G&A cost growth expectations - G&A costs are expected to stabilize at current levels, with some increases due to team investments and resets in short-term incentives [44][62] Question: Appetite for skilled nursing OPCO or RIDEA investments - The company is open to considering such investments for the right operator and deal, though nothing is currently in the pipeline [48] Question: SHOP deals and operator relationships - The company will approach SHOP deals on a case-by-case basis, aiming to expand relationships with operators regardless of predefined growth paths [52] Question: Coverage levels in the U.K. care home portfolio - The slight decrease in coverage levels is attributed to idiosyncratic factors rather than systemic issues [60] Question: Future growth potential and pipeline expansion - The opportunity set has expanded significantly compared to last year, with a bullish outlook for 2026 [71]

Company Overview - As of September 30, 2025, CareTrust REIT's real estate portfolio has grown to 390 net-leased healthcare properties across 31 states and the United Kingdom, consisting of 35,687 operating beds/units[15] - CareTrust REIT also had 23 other real estate related investments related to 143 healthcare properties across 17 states and the United Kingdom, consisting of 14,082 operating beds/units and one financing receivable related to 46 properties in one state consisting of 3,820 operating beds/units[15] - The company's total investments reached $4,812.044 million, with a current yield of 9.7%[29] Portfolio Composition - Skilled Nursing Facilities (SNF) constitute 46.9% of the total investment, amounting to $2,255.078 million with a current yield of 10.6%[29] - UK Care Homes represent 19.3% of the total investment, totaling $930.768 million with a current yield of 7.4%[29] - Multi-Service Campuses account for 10.5% of the total investment, with a value of $503.626 million and a current yield of 9.7%[29] Financial Performance - For the three months ended September 30, 2025, the company reported rental income of $104.265 million[51] - Net income attributable to CareTrust REIT, Inc for the three months ended September 30, 2025, was $74.901 million, or $0.35 per share on a diluted basis[51] - Normalized FFO attributable to CareTrust REIT, Inc for the quarter ended September 30, 2025, was $94.677 million[53] Tenant Diversification - The Ensign Group is the largest tenant, contributing 24.8% of total rent with $92.102 million[32] - The top 5 tenants account for 55.7% of total rent, amounting to $207.260 million[32]

Core Insights - CareTrust REIT (CTRE) reported quarterly funds from operations (FFO) of $0.45 per share, missing the Zacks Consensus Estimate of $0.47 per share, but showing an increase from $0.38 per share a year ago, resulting in an FFO surprise of -4.26% [1] - The company posted revenues of $132.44 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.08%, compared to year-ago revenues of $77.38 million [2] - CareTrust REIT shares have increased approximately 30.8% since the beginning of the year, outperforming the S&P 500's gain of 15.1% [3] Financial Performance - Over the last four quarters, CareTrust REIT has not surpassed consensus FFO estimates, with the current consensus FFO estimate for the coming quarter at $0.47 on revenues of $139.03 million, and $1.81 on revenues of $479.15 million for the current fiscal year [2][7] - The estimate revisions trend for CareTrust REIT was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Outlook - The REIT and Equity Trust - Other industry is currently in the top 34% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact the stock's performance [8]

Core Viewpoint - CareTrust REIT reported strong operating results for Q3 2025, highlighting significant investments and a robust financial position, setting the stage for continued growth into 2026 [1][2][5]. Financial Performance - Net income for Q3 2025 was $74.9 million, or $0.35 per diluted share, representing a 67% increase from the prior year [2][4]. - Normalized Funds from Operations (FFO) reached $94.7 million, or $0.45 per diluted share, an 18% increase year-over-year [2][4]. - Normalized Funds Available for Distribution (FAD) was $93.1 million, or $0.44 per diluted share, up 13% from the previous year [2][4]. Investment Activity - CareTrust closed $495 million in investments during Q3 2025, bringing the year-to-date total to approximately $1.6 billion, a record for the company [1][4]. - The company has an investment pipeline of approximately $600 million, indicating strong future growth potential [1][4]. Liquidity and Capital Structure - As of September 30, 2025, CareTrust reported a net debt-to-annualized normalized run rate EBITDA of 0.42x, significantly below its target leverage range of 4.0x to 5.0x [3][4]. - The company completed a public offering of 23 million shares at $32.00 per share, raising gross proceeds of $736 million [3][4]. - CareTrust has approximately $334 million in cash on hand and no borrowings on its $1.2 billion revolving credit line [3][4]. Dividend Information - The company declared a quarterly dividend of $0.335 per share, with a payout ratio of approximately 76% based on normalized FAD [6][4]. Guidance - Updated guidance for 2025 projects net income of approximately $1.41 to $1.42 per diluted share, and normalized FFO of approximately $1.76 to $1.77 [5][4].

Core Insights - CareTrust REIT, Inc. announced the closing of transactions totaling approximately $437 million [1] - The company acquired 12 skilled nursing facilities and one skilled nursing campus located in the Southeast and Mid-Atlantic regions [1] - The combined portfolio includes around 1,760 licensed skilled nursing beds and assisted living units [1]

Financial Performance - CareTrust reported net income of $74.9 million, or $0.35 per diluted share, representing a 67% increase from the prior year quarter[2][4] - Normalized FFO was $94.7 million, or $0.45 per diluted share, an 18% increase year-over-year[2][4] - Normalized FAD reached $93.1 million, or $0.44 per diluted share, reflecting a 13% increase compared to the same quarter last year[2][4] - For the three months ended September 30, 2025, total revenues increased to $132,444,000, up 70.9% from $77,381,000 in the same period of 2024[16] - Net income attributable to CareTrust REIT, Inc. for the three months ended September 30, 2025, was $74,901,000, compared to $33,441,000 for the same period in 2024, representing a 123.8% increase[21] - Earnings per common share attributable to CareTrust REIT, Inc. for the three months ended September 30, 2025, was $0.35, up from $0.21 in the same period of 2024[16] - Normalized Funds from Operations (FFO) attributable to CareTrust REIT, Inc. for the three months ended September 30, 2025, was $94,677,000, compared to $60,896,000 for the same period in 2024, an increase of 55.6%[21] Debt and Leverage - CareTrust's net debt-to-annualized normalized run rate EBITDA was 0.42x, significantly below the target leverage range of 4.0x to 5.0x[3][4] - Total debt as of September 30, 2025, was $900,000,000, significantly higher than $400,000,000 in 2024[19] - Net Debt for the three months ended September 30, 2025, was $187,520,000, compared to $22,898,000 in the same period of 2024, indicating a substantial increase in leverage[19] - The company’s total liabilities increased to $1,071,710 thousand as of September 30, 2025, from $507,633 thousand as of December 31, 2024, a rise of 111.1%[33] - The company’s total debt as of September 30, 2025, was $893,795 thousand, with a weighted average interest rate of 4.294%[37] Investments and Growth Potential - CareTrust closed investments totaling approximately $436.5 million at an estimated stabilized yield of 8.8% during the quarter[4] - CareTrust has an investment pipeline of approximately $600 million, indicating strong future growth potential[1][4] - The updated guidance for 2025 projects net income of approximately $1.41 to $1.42 per diluted share and normalized FFO of approximately $1.76 to $1.77[5] Dividends - The quarterly dividend was maintained at $0.335 per share, with a payout ratio of approximately 76% based on normalized FAD[6] - The company declared dividends of $0.335 per common share for the three months ended September 30, 2025, compared to $0.29 in the same period of 2024[16] Cash Flow and Assets - Cash and cash equivalents rose to $712,480 thousand as of September 30, 2025, compared to $213,822 thousand at the beginning of the period, marking a 233.5% increase[35] - Net cash provided by operating activities was $273,069 thousand for the nine months ended September 30, 2025, compared to $169,043 thousand for the same period in 2024, an increase of 61.7%[35] - Total assets increased to $5,088,920 thousand as of September 30, 2025, up from $3,437,016 thousand as of December 31, 2024, representing a growth of 48.3%[33] Performance Metrics - FFO attributable to CareTrust REIT, Inc. is defined as net income excluding gains or losses from real estate dispositions, depreciation, and impairment charges[45] - FAD attributable to CareTrust REIT, Inc. excludes noncash income and expenses, providing a clearer view of operating results[46] - The Company reports Normalized FFO and Normalized FAD, adjusting for non-indicative revenue and expense items to enhance comparability[47] - Net Debt to Annualized Normalized Run Rate EBITDA is calculated to assess the Company's credit strength and ability to service debt obligations[50] - The Company considers net income as defined by GAAP to be the most appropriate earnings measure for evaluating performance[51] - Normalized Run Rate EBITDA is adjusted for investments completed during the quarter, annualized by multiplying by four[50] - FFO, Normalized FFO, FAD, and Normalized FAD are relevant measures among REITs but do not represent cash flows from operations[48] - The Company aims to improve understanding of operating results among investors by combining various performance measures[51] - The computation of FFO and FAD may differ from other REITs due to varying definitions and interpretations[49] - The Company believes that excluding certain items allows for a more meaningful comparison of operating performance between periods[51]

Financial Performance - Rental income for the three months ended September 30, 2025, was $104,265,000, a significant increase of 82.5% compared to $57,153,000 for the same period in 2024[13]. - Net income attributable to CareTrust REIT, Inc. for the nine months ended September 30, 2025, was $209,248,000, compared to $72,945,000 for the same period in 2024, reflecting a growth of 186.5%[13]. - Total revenues for the three months ended September 30, 2025, reached $132,444,000, up 70.9% from $77,381,000 in the same quarter of 2024[13]. - The company reported a basic earnings per share of $0.35 for the three months ended September 30, 2025, compared to $0.21 for the same period in 2024, indicating a 66.7% increase[13]. - Net income for the quarter ending September 30, 2025, was $74,901,000, compared to $65,802,000 for the previous quarter, representing an increase of approximately 14%[18]. - The company recorded total comprehensive income of $59,583,000 for the three months ended September 30, 2025, compared to $33,441,000 for the same period in 2024, an increase of 78.1%[16]. - The total expenses for the nine months ended September 30, 2025, were $144.861 million, compared to $133.298 million in 2024, representing an 8.7% increase[168]. Asset and Equity Growth - Total assets increased to $5,088,920,000 as of September 30, 2025, up from $3,437,016,000 as of December 31, 2024, representing a growth of approximately 48.3%[11]. - Cash and cash equivalents rose to $712,480,000 as of September 30, 2025, compared to $213,822,000 as of December 31, 2024, marking an increase of 233.5%[11]. - The company’s total stockholders' equity increased to $3,994,166,000 as of September 30, 2025, up from $2,908,417,000 as of December 31, 2024, reflecting a growth of 37.3%[11]. - As of September 30, 2025, CareTrust REIT, Inc. reported total stockholders' equity of $3,994,166,000, an increase from $3,300,532,000 at June 30, 2025, reflecting a growth of approximately 21%[18]. Liabilities and Debt - Total liabilities increased to $1,071,710,000 as of September 30, 2025, from $507,633,000 as of December 31, 2024, representing a rise of 111.6%[11]. - The company has $900,000,000 in total debt as of September 30, 2025, including $400,000,000 in senior unsecured notes payable and $500,000,000 in senior unsecured term loans[132]. - The weighted average interest rate on the Company's outstanding debt as of September 30, 2025, was 4.29%[153]. Real Estate Investments - As of September 30, 2025, CareTrust REIT owned 399 skilled nursing facilities and other healthcare-related properties with a total of 36,192 operational beds and units[26]. - The total carrying value of real estate-related investments was $871.3 million, with an additional financing receivable of $98.1 million[26]. - The Care REIT Acquisition involved a cash payment of approximately $595.4 million and the assumption of liabilities totaling $290.9 million[42]. - The total consideration for the Care REIT Acquisition was $622.9 million, allocated primarily to real estate investments valued at $851.3 million[43]. - The company completed real estate acquisitions totaling $1.09 billion with an initial annual cash rent of $87.9 million for the nine months ended September 30, 2025[59]. Cash Flow and Dividends - Common dividends declared were $0.335 per share, totaling $74,806,000 for the quarter ending September 30, 2025[18]. - Cash flows from operating activities increased to $273,069 for the nine months ended September 30, 2025, up from $169,043 in 2024[24]. - The company reported a net cash used in investing activities of $901,048 for the nine months ended September 30, 2025, compared to $828,087 in 2024[24]. Market and Regulatory Environment - Major operator Ensign contributed 17% of total revenue for the three months ended September 30, 2025, down from 25% in the same period of 2024[183]. - California represented 22% of total revenue for the three months ended September 30, 2025, a decrease from 28% in the same period of 2024[184]. - The Centers for Medicare and Medicaid Services approved a 3.2% net increase in Medicare Part A payments to skilled nursing facilities for fiscal year 2026[205]. - Idaho implemented a 4% Medicaid reimbursement rate cut, while North Carolina reduced rates by 3% to 10%, potentially impacting tenant operations[201]. Stock-Based Compensation - Stock-based compensation expense for the three months ended September 30, 2025, was $2.493 million, up from $1.143 million in 2024, a 118.9% increase[164]. - The unvested balance of restricted stock awards as of September 30, 2025, was 553,979 shares, with a weighted average share price of $25.67[163]. - The company has authorized 5,000,000 shares for stock-based compensation under its Incentive Award Plan[161].

Industry Overview - The global population is aging rapidly, with the number of individuals aged 60 and above surpassing those under five for the first time in 2020, leading to significant implications for healthcare systems and investors [2] - By 2050, nearly 22% of the global population will be over 60, with a significant concentration in low- and middle-income countries [2] - The geriatric care services industry is currently valued at approximately $1.21 trillion and is projected to grow to around $2.12 trillion by 2034, reflecting a compound annual growth rate (CAGR) of 6.4% [3] Market Dynamics - Evolving healthcare utilization patterns due to aging are creating growth opportunities in senior living communities, skilled nursing facilities, assisted living, and post-acute care providers [4] - The Centers for Medicare & Medicaid Services (CMS) has advanced the Program of All-Inclusive Care for the Elderly (PACE), aimed at providing comprehensive care for seniors [4] Key Players - Major healthcare companies like Boston Scientific, AbbVie, Amgen, and Edwards Lifesciences are actively expanding their presence in the senior and aging demographics [5] - The Ensign Group is expanding its skilled nursing and rehabilitative services, supported by a decentralized management strategy [7] - Healthcare real estate investment trusts (REITs) such as Omega Healthcare Investors and CareTrust REIT are focusing on skilled nursing and senior housing properties [7] Investment Perspective - The senior-care services sector is resilient during economic downturns, providing stable cash flows and making it attractive for long-term investors seeking defensive growth [8] Company Highlights - **Boston Scientific**: Focuses on medical devices for the elderly, including the WATCHMAN device for stroke risk reduction and the SYNERGY bioabsorbable stent system [9][10] - **AbbVie**: Expanding its focus on the aging demographic through strategic partnerships, including the acquisition of Aliada Therapeutics for Alzheimer's treatment [11][12][14] - **Amgen**: Targeting the aging population with innovations in biopharma, including obesity treatments and bone health therapies [15][16] - **Edwards Lifesciences**: Advancing care for aortic stenosis in elderly patients, with significant sales growth in structural-heart solutions [17][18][19]

Core Insights - CareTrust REIT Inc. is a real estate investment trust focused on healthcare-related properties, primarily skilled nursing facilities and senior housing [1] Financial Performance - The company is set to report Q3 2025 earnings on November 4, with analysts expecting EPS of $0.42, an increase from $0.38 in the prior-year period [2] - Quarterly revenue is anticipated to reach $125.82 million, up from $77.38 million a year earlier [2] - In Q2 2025, the company reported FFO of $0.43, below the consensus estimate of $0.44, while revenues of $112.47 million exceeded the consensus of $81.34 million [6] Historical Investment Performance - If an investor had purchased CareTrust REIT stock 10 years ago at approximately $11.67 per share, a $10,000 investment would have grown to $39,657, reflecting a total return of 296.57% [3][4] - The S&P 500 total return for the same period was 284.60% [4] Dividend Information - CareTrust REIT's current dividend yield is 3.83%, with approximately $11.29 paid in dividends per share over the last 10 years, resulting in $9,674 from dividends alone [4] Analyst Ratings - The company has a consensus rating of "Overweight" with a price target of $29.58, indicating more than 15% potential downside from the current stock price [5] Strategic Investments - Over the last 18 months, the company has invested more than $2.7 billion into growth opportunities, including a strategic acquisition in the UK care home market [7] - In the second quarter, an additional $220 million was invested, bringing total investments year-to-date to approximately $1.2 billion [7]