CareTrust REIT (NYSE: CTRE ) is a company I've been bullish on for a few years now. Despite the challenging economic environment, CTRE has continued to focus on growth, setting them apart from peers alike. Moreover, they are aContributing 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 to do the ...

Core Insights - The article highlights Steven Cress's role as VP of Quantitative Strategy and Market Data at Seeking Alpha, emphasizing his contributions to the platform's quantitative stock rating system and analytical tools [1][2] - Cress is dedicated to removing emotional biases from investment decisions through a data-driven approach, utilizing sophisticated algorithms to simplify investment research [2][4] - His background includes founding CressCap Investment Research, which was acquired by Seeking Alpha in 2018, and previously running a proprietary trading desk at Morgan Stanley [3][4] Company Contributions - Seeking Alpha's Quant Rating system, created by Cress, is designed to interpret data for investors and provide insights on investment directions, saving time for users [1][2] - The Alpha Picks tool, co-managed by Cress, aims to assist long-term investors in building a high-quality portfolio [1] Professional Background - Cress has over 30 years of experience in equity research, quantitative strategies, and portfolio management, positioning him as an expert in various investment topics [4] - His previous roles include founding a quant hedge fund and leading international business development at Northern Trust, showcasing a strong background in finance and investment [3][4]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones can be challenging due to associated risks and volatility [1] Group 1: Company Overview - CareTrust REIT (CTRE) is currently highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The stock is part of a category that has historically outperformed the market, especially those with a Growth Score of A or B and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [3] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [4] - CareTrust REIT has a historical EPS growth rate of 1.1%, but projected EPS growth for this year is 18.7%, significantly outperforming the industry average of -0.3% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6] - CareTrust REIT's year-over-year cash flow growth stands at 67.6%, far exceeding the industry average of 3% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 12.5%, compared to the industry average of 3.3% [7] Group 4: Earnings Estimate Revisions - Trends in earnings estimate revisions are indicative of potential stock price movements, with positive revisions being favorable [8] - The current-year earnings estimates for CareTrust REIT have been revised upward, with the Zacks Consensus Estimate increasing by 1.7% over the past month [9] Group 5: Conclusion - CareTrust REIT has achieved a Growth Score of B and a Zacks Rank of 2, indicating it is a solid choice for growth investors due to positive earnings estimate revisions [11]

Group 1 - Albert Anthony is a Croatian-American media personality and analyst for financial media platforms Investing.com and Seeking Alpha, focusing on dividend stocks and general market commentary [1] - Since 2023, Albert Anthony has gained over 1,000 followers and has covered more than 200 companies across multiple sectors [1] - He has experience as an analyst in the IT sector and was part of the IT team at a top 10 financial firm in the US [1] Group 2 - Albert Anthony holds a B.A. from Drew University and has completed coursework through the Corporate Finance Institute and Coursera [1] - In 2025, he plans to launch a new book on Amazon discussing his methodology as an analyst and how he rates stocks [1] - The Albert Anthony brand is owned by Albert Anthony & Co., a sole proprietorship registered in Austin, Texas [1]

Core Viewpoint - CareTrust REIT held its first quarter 2025 earnings call, discussing future financial performance, dividends, acquisitions, investments, financing plans, business strategies, and growth prospects [3]. Group 1: Company Overview - The call was led by Lauren Beale, Chief Accounting Officer, and included participation from other key executives such as the President & CEO, Chief Investment Officer, and CFO [1][2]. - The company emphasized that forward-looking statements made during the call are based on current expectations and are subject to risks and uncertainties [3]. Group 2: Financial Metrics - CareTrust REIT will reference non-GAAP metrics such as EBITDA, FFO, and FAD during the call, with reconciliations to GAAP financial measures available in their earnings press release [4].

Financial Data and Key Metrics Changes - Normalized FFO increased by 67.4% year-over-year to $77,800,000, while normalized FAD rose by 66% to $80,800,000 [16] - On a per share basis, normalized FFO increased by $0.07 or 20% to $0.42, and normalized FAD increased by $0.06 or 16.2% to $0.43 [16] Business Line Data and Key Metrics Changes - In Q1, the company completed three new investments totaling over $47,000,000 at a yield of approximately 10% [11] - Year-to-date investment total reached approximately $82,000,000 at a yield of approximately 10% [12] Market Data and Key Metrics Changes - The acquisition of Care REIT will diversify the company's business, reducing U.S. Skilled Nursing concentration to approximately 49% by property count and 63% by rental income [7] - The investment pipeline currently sits at approximately $500,000,000, primarily consisting of skilled nursing facilities and senior housing opportunities [13] Company Strategy and Development Direction - The strategic acquisition of Care REIT marks the company's entry into the UK market and is expected to be accretive in year one [9] - The company aims to leverage its strong balance sheet and access to capital to pursue growth opportunities in both the U.S. and UK markets [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the overall portfolio, with a focus on monitoring potential Medicaid cuts while maintaining bipartisan support for senior care [25] - The company anticipates a strong investment pipeline in the UK, although it may take time to mature [62] Other Important Information - The company raised guidance for normalized FFO per share to $1.69 to $1.73 and for normalized FAD per share to $1.73 to $1.77 for the year [17] - Liquidity remains strong, with a net debt to normalized EBITDA ratio of 0.5 times and a fixed charge coverage ratio of 15.2 times [20] Q&A Session Summary Question: Comments on macro expectations regarding policy and provider taxes - Management stated there is no significant change in outlook regarding potential Medicaid cuts and continues to monitor the budget process [25] Question: Conditions for entering into a debt investment - The company prioritizes acquisitions but may consider debt investments if they build strategic relationships that lead to future growth [27] Question: Changes to annualized earnings or FAD accretion from the Care REIT transaction - Management indicated that detailed answers would be provided after the deal announcement [32] Question: Reasonable volume or investment pipeline for the UK market - The pipeline in the UK is expected to take time to mature, with a range of cap rates potentially wider than in the U.S. [34] Question: Update on the performance of properties over the last six to nine months - Management indicated that they are still waiting for financial disclosures from operators but feel confident about the overall portfolio performance [39] Question: Access to financing for operators - Management reported no significant challenges in access to financing for operators at this time [80]

Financial Data and Key Metrics Changes - Normalized FFO increased by 67.4% year-over-year to $77,800,000, while normalized FAD rose by 66% to $80,800,000 [18] - On a per share basis, normalized FFO increased by $0.07 or 20% to $0.42, and normalized FAD increased by $0.06 or 16.2% to $0.43 [18] - Total cash rental revenues for the year are projected to be approximately $284,000,000, excluding amortization of lease intangibles [20] Business Line Data and Key Metrics Changes - In Q1, the company completed three new investments totaling over $47,000,000 at a yield of approximately 10% [12] - Year-to-date investment total reached approximately $82,000,000 at a yield of approximately 10% [13] - The investment pipeline is currently strong, sitting at approximately $500,000,000, primarily consisting of real estate acquisitions [14] Market Data and Key Metrics Changes - The acquisition of Care REIT will diversify the company's business in terms of operator concentration, geography, payer sources, and asset classes [9] - The deal is expected to bring U.S. Skilled Nursing concentration down to approximately 49% by property count and 63% by rental income [9] Company Strategy and Development Direction - The strategic acquisition of Care REIT marks the company's entry into the UK market and is the largest deal in its history [6] - The acquisition is expected to be accretive in year one and adds a new growth engine for the company [10] - The company is focused on ensuring that its U.S. growth engine remains robust while expanding into the UK [11] Management's Comments on Operating Environment and Future Outlook - Management is monitoring potential Medicaid cuts but sees bipartisan support for Medicaid and care for seniors in nursing homes [28] - The company is optimistic about the strength of its overall portfolio, with coverage ratios improving [78] - Management expressed confidence in the UK market's potential and is actively reviewing acquisition opportunities [15] Other Important Information - The company raised guidance for normalized FFO per share to $1.69 to $1.73 and for normalized FAD per share to $1.73 to $1.77 [19] - Liquidity remains strong, with a net debt to normalized EBITDA ratio of 0.5 times and a fixed charge coverage ratio of 15.2 times [22][23] Q&A Session Summary Question: Comments on macro expectations regarding policy and provider taxes - Management is monitoring the process regarding potential Medicaid cuts and sees bipartisan support for Medicaid [28] Question: Conditions for entering into a debt investment - The company prioritizes acquisitions but may consider debt investments if they build strategic relationships [30] Question: Changes to annualized earnings or FAD accretion from the Care REIT transaction - Management will provide answers regarding the Care REIT transaction in a week [35] Question: Reasonable volume or investment pipeline for the UK market - The UK pipeline will take time to mature, with a wider range of cap rates expected compared to the U.S. [37] Question: Update on the performance of properties over the last six to nine months - Management is waiting for financial disclosures but believes the coverage ratios are strong [42] Question: Trends regarding cash-paying tenants and overall portfolio strength - Management feels confident about the strength of the overall portfolio and is managing non-paying tenants [78] Question: Access to financing for operators - Management is not seeing challenges in access to financing for operators [86]

Core Insights - CareTrust REIT reported revenue of $96.62 million for Q1 2025, a year-over-year increase of 53.2% [1] - The EPS for the same period was $0.42, compared to $0.22 a year ago [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $96.85 million, resulting in a surprise of -0.24% [1] - The company experienced an EPS surprise of -2.33%, with the consensus EPS estimate being $0.43 [1] Revenue Breakdown - Rental income was reported at $71.65 million, exceeding the average estimate of $68.40 million by two analysts, representing a year-over-year increase of 33.9% [4] - Interest income from other real estate-related investments and other income was $22.17 million, slightly below the average estimate of $22.35 million, but showing a significant year-over-year increase of 131.7% [4] Stock Performance - CareTrust REIT shares returned +2.5% over the past month, while the Zacks S&P 500 composite experienced a -0.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

分组1 - CareTrust REIT reported quarterly funds from operations (FFO) of $0.42 per share, missing the Zacks Consensus Estimate of $0.43 per share, but showing an increase from $0.35 per share a year ago [1] - The company posted revenues of $96.62 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.24%, compared to $63.07 million in the same quarter last year [2] - CareTrust REIT shares have increased by approximately 8.2% since the beginning of the year, contrasting with a decline of 5.3% in the S&P 500 [3] 分组2 - The current consensus FFO estimate for the upcoming quarter is $0.44 on revenues of $99.85 million, and for the current fiscal year, it is $1.75 on revenues of $374.08 million [7] - The Zacks Industry Rank indicates that the REIT and Equity Trust - Other sector is currently in the bottom 35% of over 250 Zacks industries, suggesting potential challenges for performance [8] - The estimate revisions trend for CareTrust REIT is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]

Company Overview - CareTrust REIT has expanded its portfolio to 249 net-leased healthcare properties across 32 states with 27,229 operating beds/units as of March 31, 2025 [15] - The company also holds 21 other real estate related investments tied to 113 healthcare properties across 17 states, consisting of 11,968 operating beds/units, and one financing receivable related to 46 properties in one state consisting of 3,820 operating beds/units [15] - As of March 31, 2025, the company's investments totaled $3,633 million across 408 properties with 43,017 operating beds/units in 34 states [19] Financial Performance - For the three months ended March 31, 2025, total revenues were $96621 thousand, including $71646 thousand in rental income and $2807 thousand in interest income from financing receivable [49] - Net income attributable to CareTrust REIT, Inc for the three months ended March 31, 2025, was $65802 thousand, or $035 per basic and diluted share [49] - Normalized FFO attributable to CareTrust REIT, Inc for the quarter ended March 31, 2025, was $77848 thousand, or $042 per share [50] - Normalized FAD attributable to CareTrust REIT, Inc for the quarter ended March 31, 2025, was $80800 thousand [51] Portfolio Composition and Diversification - As of March 31, 2025, skilled nursing facilities comprised 579% of the total investment in real estate properties, generating 592% of the total rent/interest with a current yield of 102% [33] - The Ensign Group is the largest tenant, accounting for 272% of total rent from net-leased assets [34] - California represents the largest geographic concentration, contributing 221% of total rent and interest [39] Debt and Capital Structure - As of March 31, 2025, total debt was $825 million, with a weighted average interest rate of 4698% [59] - The company has a $400 million senior unsecured notes payable at 3875% due in 2028 and $425 million outstanding on its unsecured revolving credit facility [59] - The company's consolidated leverage ratio was 209% as of March 31, 2025, well below the maximum requirement of 60% [64] Future Outlook - The company's full-year 2025 guidance for Normalized FFO is $169 to $173 per share and for Normalized FAD is $173 to $177 per share [65]