Company Overview - As of June 30, 2025, CareTrust REIT's real estate portfolio has grown to 393 net-leased healthcare properties across 32 states and the United Kingdom, consisting of 35,719 operating beds/units[15] - CareTrust REIT also had 22 other real estate related investments related to 142 healthcare properties across 17 states, consisting of 13,944 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 $4,760 million, encompassing 581 properties and 53,483 operating beds/units across 46 operators and 34 states plus the UK[19] Portfolio Performance - As of June 30, 2025, Skilled Nursing Facilities (SNF) constitute 47.3% of the total investment, amounting to $2,252.12 million and generating $234.715 million in rent, with a current yield of 10.4%[31] - UK Care Homes represent 18.9% of the total investment, valued at $901.593 million, producing $67.500 million in rent, with a current yield of 7.5%[31] - Multi-Service Campuses account for 10.4% of the total investment, totaling $494.236 million and yielding $47.776 million in rent, with a current yield of 9.7%[31] - Seniors Housing makes up 3.8% of the total investment, with a value of $178.997 million, generating $17.010 million in rent, with a current yield of 9.5%[31] - Total Net-Leased Assets represent 80.4% of the total investment, amounting to $3,826.946 million and producing $367.001 million in rent, with a current yield of 9.6%[31] Financial Highlights - For the three months ended June 30, 2025, rental income was $86.033 million, compared to $55.407 million for the same period in 2024[52] - Net income attributable to CareTrust REIT, Inc for the three months ended June 30, 2025, was $68.545 million, or $0.36 per basic share[52] - The company's debt structure as of July 31, 2025, includes $400 million in senior unsecured notes payable at 3.875% and $500 million in senior unsecured term loan at 4.630%[63]

Financial Performance - CareTrust REIT reported net income of $68.5 million, or $0.35 per diluted share, for Q2 2025[2]. - Normalized FFO for the quarter was $83.1 million, equating to $0.43 per diluted share[2]. - Net income attributable to CareTrust REIT, Inc. for Q2 2025 was $68,545,000, a significant increase from $10,758,000 in Q2 2024, representing a growth of 536%[17]. - EBITDA attributable to CareTrust REIT, Inc. for Q2 2025 reached $104,341,000, compared to $34,246,000 in Q2 2024, marking an increase of 205%[17]. - Normalized FFO attributable to CareTrust REIT, Inc. for the first half of 2025 was $160,939,000, up from $99,044,000 in the same period of 2024, reflecting a growth of 62%[20]. - Net income for the six months ended June 30, 2025, was $133.095 million, a significant increase from $39.168 million in 2024, representing a growth of 239%[33]. Investment and Growth - The company has invested approximately $2.7 billion over the last 18 months, with $220 million invested in Q2 2025 alone, bringing year-to-date investments to about $1.2 billion[1]. - CareTrust's investment pipeline is approximately $600 million, indicating potential for future growth[4]. - The company reported a net cash used in investing activities of $825.306 million for the six months ended June 30, 2025, compared to $468.637 million in 2024[33]. Debt and Leverage - CareTrust's net debt-to-annualized normalized run rate EBITDA stands at 2.0x, significantly below the target leverage range of 4.0x to 5.0x[3]. - Total debt as of June 30, 2025, was $1,161,990,000, compared to $600,000,000 in June 2024, indicating a 94% increase[18]. - Net Debt to Annualized Normalized Run Rate EBITDA ratio improved to 2.0x in Q2 2025 from 0.4x in Q2 2024[18]. - The company issued $500 million in senior unsecured term loans with a fixed interest rate of 5.427%[35]. Cash and Liquidity - CareTrust has approximately $65 million in cash on hand and $380.1 million available for future issuances under the ATM Program[3]. - Cash and cash equivalents increased from $213,822 as of December 31, 2024 to $306,051 by June 30, 2025, representing a growth of about 43.2%[31]. - Cash and cash equivalents at the end of the period were $306.051 million, down from $495.134 million at the end of the same period in 2024[33]. Dividends and Payouts - The company declared a quarterly dividend of $0.335 per share, representing a payout ratio of approximately 78% based on normalized FAD[4]. - Funds from Operations (FFO) guidance for full year 2025 is projected between $1.78 and $1.80 per share[39]. - Normalized FFO for 2025 is expected to be between $1.77 and $1.79 per share, indicating stable operational performance[39]. Operational Metrics - The company achieved a 99.7% collection rate of contractual rent and interest[4]. - Property operating expenses for Q2 2025 were $1,090,000, up from $361,000 in Q2 2024, an increase of 202%[20]. - Funds Available for Distribution (FAD) attributable to CareTrust REIT, Inc. for Q2 2025 was $88,302,000, compared to $51,757,000 in Q2 2024, representing a growth of 71%[23]. - Normalized Run Rate EBITDA attributable to CareTrust REIT, Inc. for Q2 2025 was $109,237,000, an increase from $65,362,000 in Q2 2024, reflecting a growth of 67%[17]. Future Projections - CareTrust has increased its 2025 guidance, projecting net income of approximately $1.43 to $1.45 per diluted share and normalized FFO of approximately $1.77 to $1.79[5]. - The company anticipates a normalized EBITDA of $99,111 by June 30, 2025, up from $62,174 in June 30, 2024, reflecting an increase of approximately 59.5%[28]. - Normalized FFO per share is projected to increase from $0.36 in June 30, 2024 to $0.45 by June 30, 2025, a rise of approximately 25%[29]. Financial Definitions and Metrics - The Company defines Net Debt as Total Debt minus cash, cash equivalents, restricted cash, and escrow deposits, providing a clearer picture of its financial obligations[48]. - Annualized Normalized Run Rate EBITDA is calculated by multiplying Normalized Run Rate EBITDA for the quarter by four, reflecting the Company's operational performance[48]. - The Company emphasizes that net income attributable to CareTrust REIT, Inc. is the most appropriate earnings measure according to GAAP, enhancing the understanding of its operating results[49]. - EBITDA and Normalized EBITDA are considered useful for understanding the Company's operating results independent of its capital structure and other non-indicative charges[49]. - FFO, Normalized FFO, FAD, and Normalized FAD are important metrics for comparing the Company's operating performance with other REITs by excluding non-operational gains and losses[49]. - The disclosure of Net Debt to Annualized Normalized Run Rate EBITDA is intended to help investors evaluate the Company's credit strength and ability to service debt obligations[49].

Company Overview - As of June 30, 2025, CareTrust REIT owned and leased 400 skilled nursing facilities and other healthcare-related properties, totaling 36,162 operational beds and units across 32 states and the U.K.[174] - The Care REIT Acquisition was completed on May 8, 2025, with Care REIT stockholders receiving 108 pence per share, totaling approximately $595.4 million, and Care REIT's liabilities assumed were about $290.9 million[176]. Financial Performance - During the three months ended June 30, 2025, CareTrust REIT collected 99.7% of contractual rents and interest due from operators and borrowers, excluding cash deposits[178]. - Rental income increased by approximately $14.4 million, or 20%, to $86.0 million for the three months ended June 30, 2025, compared to $71.6 million for the three months ended March 31, 2025[202]. - Rental income increased by $48.8 million, or 45%, to $157.7 million for the six months ended June 30, 2025, compared to $108.9 million for the same period in 2024[213]. - Interest income from financing receivable was recorded at $5.7 million during the six months ended June 30, 2025[215]. - Interest income from other real estate related investments and other income increased by $22.7 million, primarily due to a $24.7 million increase from loans receivable originated after December 31, 2023[216]. - The company recognized no impairment charges during the three and six months ended June 30, 2025, compared to impairment charges of $25.7 million and $28.5 million in the same periods of 2024[197]. - The company recorded a $4.4 million gain on foreign currency transactions during the three months ended June 30, 2025, related to cash paid to Care REIT shareholders[211]. - The company recognized $3.9 million gain on sale of real estate during the six months ended June 30, 2025, compared to a $32,000 gain in the same period of 2024[223]. Acquisitions and Investments - The company made acquisitions totaling $1,085.2 million from January 1, 2025, to August 6, 2025, which included 145 properties and 8,858 beds/units[185]. - The company disposed of five facilities during the six months ended June 30, 2025, generating net sales proceeds of $44.4 million[199]. - As of June 30, 2025, the net carrying value of assets held for sale was $55.2 million, with 16 facilities classified as held for sale[200]. - The company has committed to fund expansions and improvements totaling $9.9 million, with $8.4 million subject to rent increases upon funding[247]. Debt and Financing - CareTrust REIT entered into a $500 million unsecured term loan facility on May 30, 2025, to support its financing activities[189]. - The company paid off its entire outstanding balance of secured notes payable and terminated secured revolving credit facilities post-June 30, 2025, funded by cash on hand and $65 million in net borrowings[190]. - Cash used in investing activities rose to $825.3 million for the six months ended June 30, 2025, from $468.6 million in 2024, primarily due to $842.8 million in real estate acquisitions[234]. - Cash provided by financing activities was $745.1 million for the six months ended June 30, 2025, compared to $567.5 million in 2024, driven by $500.0 million in net borrowings under the Third Amended Revolving Facility[235]. - As of June 30, 2025, the company had $500.0 million of borrowings outstanding under the Term Loan Facility and no borrowings under the Third Amended Revolving Facility[242]. - The company assumed liabilities of approximately $290.9 million in connection with the Care REIT Acquisition, including $240 million in secured revolving credit facilities[245]. Interest Rates and Economic Conditions - The company continues to monitor macroeconomic conditions, including inflation and interest rates, which have adversely impacted tenants' financial obligations[177]. - An increase in interest rates could raise the costs of variable rate debt obligations and limit the company's ability to refinance debt[252]. - A hypothetical 100 basis point increase in interest rates would have increased interest expense by approximately $2.6 million for the six months ended June 30, 2025[254]. - The company has £270.4 million of British Pound denominated intercompany debt as of June 30, 2025, to mitigate foreign exchange exposure[256]. - A 10% change in the applicable exchange rate would result in a $0.4 million increase or decrease in net income from U.K.-based investments[257]. Shareholder Returns - The company intends to distribute at least 90% of its REIT taxable income to stockholders on an annual basis, subject to board discretion[227]. - The company expects to make quarterly dividend payments with an annual amount no less than 90% of its annual REIT taxable income[248]. Operational Expenses - Interest expense increased by approximately $6.4 million, or 96%, to $13.0 million for the three months ended June 30, 2025, primarily due to new term loan facilities and increased borrowing amounts[205]. - General and administrative expenses rose by $3.5 million, or 39%, to $12.5 million for the three months ended June 30, 2025, compared to $9.0 million for the previous quarter[208]. - General and administrative expenses rose by $8.6 million, totaling $21.6 million for the six months ended June 30, 2025, compared to $13.0 million in the prior year[223]. - Depreciation and amortization increased by $11.7 million, or 43%, primarily due to acquisitions and capital improvements made after December 31, 2023[217]. Risk Management - The company was in compliance with all applicable financial covenants under the Third Amended Credit Agreement as of June 30, 2025[244]. - The company has two interest rate caps for a notional amount of £100 million to manage interest rate risks related to borrowings[253]. - The company has four foreign currency forward contracts with notional amounts totaling £31 million maturing between 2025 and 2026 to hedge interest expense on intercompany debt in the U.K.[257].

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - CareTrust REIT (CTRE) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for attracting investor attention, with double-digit growth being particularly desirable [4] - CareTrust REIT has a historical EPS growth rate of 1.1%, but projected EPS growth for this year is expected to be 21.2%, significantly outperforming the industry average of 1.4% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, enabling expansion without relying on external funding [6] - CareTrust REIT's year-over-year cash flow growth is currently at 67.6%, far exceeding the industry average of 2.7% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 12.5%, compared to the industry average of 3.1% [7] Group 4: Earnings Estimate Revisions - Trends in earnings estimate revisions are important indicators of near-term stock price movements, with positive trends being favorable [8] - CareTrust REIT has seen upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate increasing by 0.3% over the past month [8] Group 5: Overall Assessment - CareTrust REIT has achieved a Growth Score of B and a Zacks Rank of 2 due to positive earnings estimate revisions, indicating potential for outperformance and suitability for growth investors [10]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns, although identifying such stocks can be challenging due to their inherent risks and volatility [1]. Company Summary: CareTrust REIT (CTRE) - CareTrust REIT is currently highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2]. - The stock has shown a historical EPS growth rate of 1.1%, but projected EPS growth for the current year is expected to be 21.2%, significantly outperforming the industry average of 1% [4]. - The company has a year-over-year cash flow growth rate of 67.6%, which is substantially higher than the industry average of 2.7% [5]. - Over the past 3-5 years, CareTrust REIT has maintained an annualized cash flow growth rate of 12.5%, compared to the industry average of 3.1% [6]. - The current-year earnings estimates for CareTrust REIT have been revised upward, with the Zacks Consensus Estimate increasing by 0.6% over the past month [8]. - CareTrust REIT has achieved a Growth Score of B and holds a Zacks Rank 2, indicating positive earnings estimate revisions and positioning it well for potential outperformance [9].

Company Overview - CareTrust REIT (NYSE: CTRE) is an American real estate company focused on leasing healthcare and other service properties [1] - The company operates primarily in two strong segments that represent about 87% of its rental income, which is significant given the current aging population [1] Market Position - The company's focus on healthcare-related properties positions it well to benefit from demographic trends, particularly the increasing demand for healthcare services due to an aging population [1]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - A well-managed portfolio of REITs with strong value creation and growth potential is valuable for total return investors [2] Group 2 - The article emphasizes the importance of due diligence and independent conclusions for investment decisions [4][5]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns. However, identifying such stocks can be challenging due to their inherent risks and volatility [1]. Company Summary: CareTrust REIT (CTRE) - CareTrust REIT is currently highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2]. - The stock has shown a historical EPS growth rate of 1.1%, but projected EPS growth for the current year is expected to be 20.9%, significantly outperforming the industry average of 0.8% [4]. - The company has demonstrated impressive cash flow growth, with a year-over-year increase of 67.6%, compared to the industry average of 2.7% [5]. - Over the past 3-5 years, CareTrust REIT has maintained an annualized cash flow growth rate of 12.5%, again surpassing the industry average of 3.1% [6]. - Recent upward revisions in earnings estimates indicate positive momentum, with the Zacks Consensus Estimate for the current year increasing by 0.5% over the past month [8]. - CareTrust REIT has achieved a Zacks Rank of 2 (Buy) and a Growth Score of B, suggesting it is a solid choice for growth investors [10].

Group 1 - CareTrust REIT (NYSE: CTRE) is positioned favorably compared to other healthcare REITs that are experiencing a sectoral cool-off due to reduced funding for biotech and life sciences R&D [1] - The company focuses on senior and assisted living, which remains a stable segment within the healthcare real estate investment trust market [1]

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