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]

Core Insights - Companies with a strong history of dividend payments and increases are attractive to income-focused investors, with CareTrust REIT, Hess Midstream, and Kimberly-Clark recently announcing dividend hikes and offering yields up to approximately 8% [1] CareTrust REIT - CareTrust REIT Inc. is a real estate investment trust focused on seniors housing and healthcare-related properties [2] - The company has raised its dividends annually for the last 10 years, with the most recent increase on March 18, raising the quarterly payout from $0.29 to $0.335 per share, equating to an annual figure of $1.34 per share [3] - As of June 30, CareTrust's annual revenue was $277.03 million, with Q2 2025 revenues of $112.47 million and EPS of $0.43, both exceeding expectations [4] Hess Midstream - Hess Midstream LP operates midstream assets and provides fee-based services, having increased dividends for the last eight years [5] - The latest dividend hike on July 28 raised the quarterly payout from $0.7098 to $0.737 per share, resulting in an annual figure of $2.95 per share, with a current dividend yield of 8.64% [5] - The company's annual revenue as of June 30 was $1.57 billion, with Q2 2025 revenues of $414.20 million and EPS of $0.74, both surpassing market expectations [6] Kimberly-Clark - Kimberly-Clark Corp. is engaged in the manufacturing and marketing of personal care products on an international scale [7]

Group 1 - The company has released its latest top investment picks for October 2025, emphasizing the timeliness of joining to access these opportunities [1] - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities, particularly in real estate strategies [1] - The approach has garnered over 500 five-star reviews from satisfied members, indicating a positive reception and effectiveness of the investment strategies [2] Group 2 - The company encourages potential members to join now to start maximizing their returns, highlighting the urgency and potential benefits of membership [2]

Core Viewpoint - Collaboration between South Africa and Europe is essential for developing an alternative value chain for electric vehicle components, particularly batteries, to decrease reliance on China [1] Group 1: Industry Collaboration - The CEO of BMW South Africa emphasizes the need for partnerships between South Africa and Europe to establish a robust supply chain for electric vehicle components [1] - The focus is on creating a sustainable and independent value chain that can support the growing electric vehicle market [1] Group 2: Strategic Importance - Reducing dependence on China for critical components like batteries is highlighted as a strategic priority for the automotive industry [1] - The initiative aims to enhance regional capabilities and foster innovation within the electric vehicle sector [1]

Core Insights - CareTrust REIT, Inc. (NYSE:CTRE) has demonstrated significant revenue and dividend growth, positioning itself as one of the 20 best stocks to buy and hold for a lifetime [1] Acquisition Details - On September 24, 2025, CareTrust REIT, Inc. acquired two care facilities in the UK for approximately $27 million, enhancing its global presence [2] - The acquired properties are leased under triple-net long-term agreements, featuring options for extensions and annual rent escalators, and provide 265 beds for higher-acuity tenants [2][3] Financial Strategy - The acquisition was financed using cash on hand, aligning with CareTrust REIT's strategy of making prudent investments in healthcare real estate, which is expected to generate steady and contractually predictable revenue [3] - Following a previous acquisition of Care REIT in May 2025, this marks CareTrust REIT's first follow-on investment in the UK, indicating potential for further pipeline opportunities [4] Performance Metrics - The acquisition bolsters investor confidence in CareTrust REIT's growth trajectory in both U.S. and U.K. healthcare properties, supported by strong financial performance, including a gross profit margin close to 95% and a year-to-date return exceeding 30% [4] - The company's primary goals include ownership, acquisition, development, and leasing of skilled nursing, senior housing, and other healthcare-related assets in the U.S. and the U.K. [5]

Core Insights - CareTrust has published its fifth annual Corporate Sustainability Report, highlighting its commitment to sustainability and corporate responsibility [1] Group 1: Corporate Sustainability - The report outlines CareTrust's initiatives and progress in sustainability practices over the past year [1] - Key metrics and achievements related to environmental impact, social responsibility, and governance are detailed in the report [1] - The company emphasizes transparency and accountability in its sustainability efforts [1]

Core Insights - Companies with a strong history of dividend payments and increases are attractive to income-focused investors, with CareTrust REIT, Virtus Investment, and Alliant Energy recently announcing dividend hikes and offering yields up to 5% [1] CareTrust REIT - CareTrust REIT Inc. has increased its dividends annually for the last 10 years, with the most recent hike on March 18 raising the quarterly payout from $0.29 to $0.335 per share, resulting in an annual figure of $1.34 per share [2] - The company maintained the same dividend payout in its September 15 announcement, with a current dividend yield of 3.91% [2] - As of June 30, CareTrust's annual revenue was $277.03 million, and it reported Q2 2025 revenues of $112.47 million and EPS of $0.43, both exceeding expectations [3] Virtus Investment Partners - Virtus Investment Partners has increased its dividends for seven consecutive years, with a 7% increase announced on August 14, raising the quarterly payout to $2.40 per share, equating to an annual figure of $9.60 per share [4] - The current dividend yield for Virtus is 5.05% [4] - The company's annual revenue as of June 30 was $884.72 million, with Q2 2025 revenues of $210.53 million and EPS of $6.25, both surpassing consensus estimates [4] Alliant Energy - Alliant Energy Corp. provides regulated electric and natural gas services in the U.S. [6]