CareTrust REIT (CTRE) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Individu ...

In an effort to expand its portfolio, CareTrust REIT, Inc. (CTRE) recently acquired four skilled nursing facilities in Mid-Atlantic. The company shelled out $74.7 million, inclusive of transaction costs, for this portfolio acquisition and the transaction was funded with cash on hand. One of the four facilities acquired is a skilled nursing and assisted living campus, which includes 47 assisted living units. In relation to the acquisition, the company has established a triple-net master lease with a new oper ...

CareTrust REIT (NYSE: CTRE ), in my opinion, is one of the best ways to gain healthcare exposure. Moreover, if you're a fan of REITs, then this is definitely a stock to consider for your portfolio. With interest rates recently cut by Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone t ...

0 1 2 land Vertigo3d Being validated by the market can be a bittersweet feeling, especially when it comes to dividend payers that you'd like to own more of. For one thing, it's nice to see capital gains on the investment statement, but that also means acquiring new shares has become more expensive. This brings me to CareTrust REIT (NYSE:CTRE), which I last covered in February, highlighting its appealing cap rates on new acquisitions, strong balance sheet, and undervaluation. It appears the market has agreed ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock cha ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock cha ...

Financial Supplement 97 CARETRUST R E I T Second Quarter 2024 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 the following: future financial and financing plans; strategies related to the Company's business and its portfolio, including acquisition opportunities and disposition plans; growth prospects ...

Financial Data and Key Metrics - Normalized FFO increased 52% YoY to $52 million, and normalized FAD increased 49.5% to $54 million [17] - Normalized FFO per share increased $0.01 to $0.36, and normalized FAD per share also increased $0.01 to $0.37 [17] - The company raised its 2024 guidance for normalized FFO per share to $1.46-$1.48 and normalized FAD per share to $1.50-$1.52 [18] - Total cash rental revenues for 2024 are projected to be $212-$213 million, with CPI rent escalations of 2.5% [18] - Interest income is expected to be $61 million, with $48 million from the loan portfolio and $13 million from money market funds [19] - Interest expense is projected at $34 million, with an assumed interest rate of 6.9% for the term loan [19] - G&A expense is estimated at $25-$27 million, including $5.8 million of deferred stock compensation [19] Business Line Data and Key Metrics - Property-level EBITDAR coverage was 2.17x, and EBITDARM coverage was 2.78x [8] - Skilled nursing occupancy surpassed pre-pandemic levels, with skilled mix settling 330 bps higher than pre-pandemic levels [9] - Assisted living occupancy increased 280 bps YoY and 180 bps QoQ [9] - The company closed $268 million in Q2 investments at a stabilized yield of 9.9%, including acquisitions and mortgage loans [12][13] - Year-to-date investments totaled $765 million at an average yield of 9.5% [16] Market Data and Key Metrics - Medicare rates for fiscal year 2025 will increase by 4.2% [10] - The skilled nursing acquisition market is competitive, with pricing increasing due to post-COVID performance improvements [14] - Small and midsize regional operators are selling portfolios due to COVID exhaustion, loan maturities, and regulatory challenges [15] Company Strategy and Industry Competition - The company focuses on long-term thinking, operator-first decisions, and maintaining a conservative balance sheet [7] - Investments are made with a focus on quality care and value creation, avoiding growth for growth's sake [7] - The company leverages its operational roots, strong capitalization, and nimbleness to provide certainty for sellers and accelerate growth [15] - The pipeline includes $270 million of real estate acquisitions, with potential for larger portfolio opportunities to diversify tenant relationships [16] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong first half of 2024, with record investments and equity issuance [5] - The company is positioned to capitalize on demographic tailwinds expected to last for decades [21] - Labor market normalization is improving, with agency expenses dropping 35% YoY [43] - The company expects to complete transitions and dispositions of underperforming assets by year-end [29][42] Other Important Information - The company has $100 million in cash and $600 million available under its revolver, with a net debt to normalized EBITDA ratio of 0.4x [20] - Leverage is at an all-time low, with a net debt to enterprise value of 2.6% and a fixed charge coverage ratio of 8.2x [20] - The company plans to continue funding its pipeline with equity as long as equity prices remain favorable relative to long-term debt costs [20] Q&A Session Summary Question: How does the company balance acquisition expectations with underwriting discipline? - The company focuses on relationships, operator selection, and creative transaction structures to maintain discipline while pursuing opportunities [23] Question: What is the mix of new vs. existing relationships in the pipeline? - The pipeline includes both new and existing relationships, with a mix of deal sources from brokers, operators, and recent partnerships [24] Question: Thoughts on the leverage target range of 4-5x? - The company maintains flexibility to stay below the target range to fuel growth but may increase leverage if significant growth opportunities arise [26] Question: How does the company view capital recycling for future investments? - Capital recycling will be limited and specific to underperforming assets, with no significant impact on funding growth [28] Question: What are the underwriting standards for new deals? - The company targets 1.4x coverage and yields in the 9% range, with enhanced collaboration on underwriting for assets not yet stabilized [32] Question: What are the cap rates for recent transactions? - Cap rates remain within historical ranges, with some flexibility for larger deals to ensure sustainable rent streams [33] Question: What is the yield expectation for the $270 million pipeline? - Yields are expected to remain in the mid-9% range, consistent with historical levels [37] Question: Impact of labor market normalization on tenants? - Labor market normalization is improving, with agency expenses down 35% YoY, providing tailwinds for coverage [43] Question: Thoughts on future Medicare rate increases? - Medicare rate increases may remain elevated due to lagging inflationary effects, but future trends are uncertain [49] Question: Is there a limit on the loan book size? - No immediate limits, with the loan book tied to expected off-market acquisitions [50]

For the quarter ended June 2024, CareTrust REIT (CTRE) reported revenue of $68.89 million, up 33.6% over the same period last year. EPS came in at $0.36, compared to $0.00 in the year-ago quarter. The reported revenue represents a surprise of +3.81% over the Zacks Consensus Estimate of $66.36 million. With the consensus EPS estimate being $0.36, the company has not delivered EPS surprise. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare ...

CareTrust REIT (CTRE) came out with quarterly funds from operations (FFO) of $0.36 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.35 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this health care real estate investment trust would post FFO of $0.37 per share when it actually produced FFO of $0.35, delivering a surprise of -5.41%. Over the last four quarters, the company has not been able to surpass consensus FF ...