Core Viewpoint - CareTrust REIT (CTRE) is a strong performer in the REIT sector, offering a 4% annual dividend yield and a 25% increase in stock price this year, making it attractive for income investors [1][5] Summary by Sections Investment Strategy - A covered call strategy can be employed to enhance income from CareTrust REIT while slightly reducing risk on a long stock position, though it limits upside potential above the strike price [2] - Buying 100 shares of CareTrust would cost approximately $3,430, and a Jan. 16, 35-strike call option is trading around $1.25, generating $125 in premium per contract, equating to a 3.8% income in under four months, or 11.9% annualized [3] Profit Potential - If CareTrust stock closes above $35 at expiration, the total profit would be $195, resulting in a 5.9% return or 18.6% annualized [3] Risk Factors - The stock may drop, potentially negating gains from selling the call, and earnings are due to be reported in late November, introducing earnings risk [4] - CareTrust's implied volatility is currently at 22.15%, with a 12-month low of 13.25% and a high of 72.44% [4] Performance Ratings - Investor's Business Daily rates CareTrust with a Composite Rating of 91, an Earnings Per Share Rating of 92, and a Relative Strength Rating of 71, ranking first in its group [5]

As of 2025, I've got over 10 years of researching companies. In total, throughout my investing life, I estimate that I researched (in depth) well over 1000 companies, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies ...

SAN CLEMENTE, Calif.--(BUSINESS WIRE)--CareTrust REIT Announces Quarterly Dividend of $0.335 per Share. ...

PresentationThank you, everyone, for joining. We're at the top of the hour. We are now in the CareTrust REIT meeting. My name is Farrell Granath, and I'm co-lead with Jeff Spector for healthcare REITs and the BofA REIT team. I'm joined today by David Sedgwick, who is the CEO and President of CareTrust. And I will pass it over to you, Dave, for opening remarks and if you want to introduce any of your team members who I see are sitting on sides.David SedgwickCEO, President & Director Great. Well, hello, every ...

Core Points - CareTrust REIT was formed as a spin-off from the Ensign Group, which started as a nursing home company in California in 1999 [2] - The company went public in 2007 and recognized a need to separate its real estate assets to gain better market recognition, leading to the establishment of CareTrust REIT in June 2014 [2] Company Overview - CareTrust REIT focuses on acquiring and managing healthcare-related real estate, particularly in the nursing home sector [2] - The leadership team includes David Sedgwick as CEO and President, Bill Wagner as CFO, and Derek Bunker as SVP of Strategy and Finance [2]

CareTrust REIT Conference Call Summary Company Overview - CareTrust REIT was formed in June 2014 after spinning off real estate from the Ensign Group, which started in 1999 as a nursing home company in California [2][3] - The company has focused on acquiring skilled nursing and senior housing properties, averaging $225 million in investments annually for the first nine years, with a significant increase to $1.5 billion in acquisitions last year [3][4] Key Highlights - **Acquisition Strategy**: CareTrust REIT has expanded its portfolio significantly, including a recent acquisition in the UK, marking its first international deal [4][5] - **Market Capitalization Growth**: The company's market capitalization has grown from approximately $2.5 billion to around $7.5 billion [5] - **Pipeline of Deals**: CareTrust has a $600 million pipeline of deals, with expectations to exceed last year's performance [5][12] UK Market Entry - The decision to enter the UK market was based on a favorable supply-demand imbalance and similarities to the U.S. skilled nursing market [8][9] - The UK acquisition is expected to provide diversification and an additional growth engine, with the potential for significant deal flow [9][19] - The internalization of the UK team is anticipated to yield about $5 million in G&A savings [11] Financial Performance and Strategy - CareTrust's balance sheet is currently low-leverage, providing flexibility to pursue growth opportunities without being restricted by market fluctuations [29][30] - The company aims to maintain a net debt to EBITDA ratio of four to five times, which is advantageous for pursuing large acquisitions [30] Skilled Nursing Market Insights - Competition for U.S. skilled nursing acquisitions remains steady, with CareTrust benefiting from established relationships that provide access to off-market deals [32] - Expected cap rates for skilled nursing acquisitions are in the nines, while UK care homes may see cap rates in the eights to nines [34][35] - Coverage ratios have improved, with EBITDA coverage above 2.5 times, indicating strong operational performance [36] Regulatory Environment and Challenges - The company acknowledges potential regulatory changes affecting Medicaid but remains confident in the resilience of skilled nursing operators [42][43] - CareTrust continues to monitor its exposure to PACS, with positive performance reported despite external challenges [46][47] Future Outlook - CareTrust is focused on building infrastructure to support growth in both the UK and shop opportunities, with a significant number of properties available in the shop sector [26][27] - The company is optimistic about the potential for same-store NOI to increase in the coming year [55] Additional Notes - The company is investing in technology and operational efficiencies to enhance its shop vertical [25] - CareTrust's leadership emphasizes a long-term growth strategy, aiming to add new growth engines while maintaining operational stability [27][28]

Core Insights - Proceeds raised by US equity real estate investment trusts (REITs) through at-the-market offerings decreased in the second quarter of 2025, indicating a slight decline in capital raising activities within the sector [2]. Group 1 - Twenty-six US REITs participated in at-the-market (ATM) programs during the quarter [2]. - The total amount raised by these REITs was $4.85 billion, reflecting a sequential decrease of 3.9% compared to the previous quarter [2].

Core Insights - CareTrust REIT (NYSE: CTRE) is currently positioned as a rare investment opportunity that offers both meaningful yield and high growth potential [2] Group 1: Company Overview - CareTrust REIT is identified as a company that is "firing on all cylinders," indicating strong operational performance [2] Group 2: Investment Focus - The focus of iREIT+HOYA Capital is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1]

Group 1 - The article expresses a strong enthusiasm for Real Estate Investment Trusts (REITs), indicating a positive outlook on this sector [1] - The author identifies as a buy-and-hold investor focused on quality investments, particularly in blue-chip stocks, Business Development Companies (BDCs), and REITs [2] - The goal is to help lower and middle-class workers build high-quality, dividend-paying investment portfolios to achieve financial independence [2] Group 2 - The author has a beneficial long position in ADC shares, indicating confidence in the company's performance [3] - The article is presented as an opinion piece without compensation from any mentioned companies, emphasizing independence in analysis [3] - Seeking Alpha clarifies that past performance does not guarantee future results, highlighting the importance of individual due diligence [4]

Financial Data and Key Metrics Changes - Total revenues increased by 63.3% in Q2 2025 compared to the same quarter last year [6] - Normalized FFO per share rose by approximately 19% [6] - Normalized FAD per share increased by about 16% [6] - Quarterly dividend was raised by 15.5% year over year while maintaining a comfortable payout ratio [6][14] Business Line Data and Key Metrics Changes - The integration of Care REIT assets is progressing well, with strong operator relationships established [7] - Approximately $1,200,000,000 in total investments closed year to date, with a strong pipeline of about $600,000,000 [11][12] - The company completed a $146,000,000 acquisition of a portfolio of 10 skilled nursing assets in the Pacific Northwest [11] Market Data and Key Metrics Changes - The investment pipeline primarily consists of skilled nursing facilities, with some seniors housing deals and UK care home opportunities included [12] - The company is actively evaluating potential acquisitions in the UK care home sector, which represents an additional growth avenue [12] Company Strategy and Development Direction - The company aims to continue its growth trajectory, feeling like it is still in "startup mode" and focused on sustainable FFO per share growth [8] - Investments are being made in people and systems to support future growth, including expanding the UK presence and enhancing the US team [9] - The company is focused on building strong operator relationships and diversifying its asset types and geographic concentration [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the strong performance and record pace of investments over the past two years [8][18] - There is a belief that Medicaid for skilled nursing and senior care has broad bipartisan support, which may help stabilize reimbursement rates [60] Other Important Information - The company raised its guidance for normalized FFO and FAD per share for the year to between $1.77 and $1.79 [15] - Liquidity remains strong with $65,000,000 in cash on hand and $1,140,000,000 available under the revolver [16] Q&A Session Summary Question: Can you discuss the composition of the investment pipeline and contributions from the UK? - The majority of the pipeline is still US skilled nursing, with some contributions from US seniors and UK transactions [22] Question: Have you seen increased competition for assets in the market? - There has not been a meaningful uptick in deal flow from recent legislation, but regional operators are starting to bring more assets to market [32] Question: What are the potential synergies from the integration of the Care REIT team? - Integration is going well, with expectations of realizing synergies of about $10,000,000, with 50% expected to kick in mostly in Q1 next year [69] Question: Are you looking at new operators and financing deals with them? - The company is developing a bench of new operators while continuing to grow with existing ones [52] Question: How is the competitive landscape affecting your operations, particularly in seniors housing? - There is a wider range of cap rates in seniors housing, but the company remains competitive with the right opportunities and operators [46]