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 ...

Exhibit 99.1 CareTrust REIT Announces Second Quarter 2024 Operating Results Conference Call Scheduled for Friday, August 2, 2024 at 1:00 pm ET SAN CLEMENTE, Calif., August 1, 2024 (BUSINESS WIRE) -- CareTrust REIT, Inc. (NYSE:CTRE) today reported operating results for the quarter ended June 30, 2024, as well as other recent events. For the quarter, CareTrust REIT reported: • Investments of $267.7 million during the quarter at an estimated stabilized yield of 9.9%; • 12.1 million shares sold under its ATM Pr ...

Company Operations - As of June 30, 2024, the company owned and leased 235 skilled nursing facilities, totaling 25,058 operational beds and units across 30 states[77]. - The company has a carrying value of $433.5 million in other real estate-related investments, including preferred equity and secured loans[77]. - The number of facilities held for sale increased to 20 as of June 30, 2024, with a net carrying value of $28.8 million[93]. Financial Performance - During the three months ended June 30, 2024, the company collected 98.3% of contractual rents and interest due from operators and borrowers[79]. - Total revenues for the six months ended June 30, 2024, increased by $15.0 million, or 16%, to $108.9 million compared to the same period in 2023[99]. - Rental income for the three months ended June 30, 2024, increased by $1.9 million, reaching $55.4 million, a 4% increase from the previous quarter[94]. - Interest and other income rose by $3.9 million, or 41%, to $13.5 million, primarily due to new loan investments[96]. - Interest and other income rose by $14.8 million, primarily due to an $8.3 million increase in interest income on money market funds and a $7.4 million increase from loans receivable originated after January 1, 2023[100]. - Net cash provided by operating activities increased by $34.8 million to $101.8 million for the six months ended June 30, 2024, compared to $67.0 million in 2023[107]. Impairment and Charges - The company recognized an impairment charge of $25.7 million for the three months and $28.5 million for the six months ended June 30, 2024, related to properties held for sale[89]. - Impairment of real estate investments recognized during the three months ended June 30, 2024, amounted to $25.7 million, a significant increase from $2.7 million in the previous quarter[97]. - Impairment charges of $28.5 million were recognized for properties held for sale during the six months ended June 30, 2024[102]. Capital and Financing Activities - The company entered into a new equity distribution agreement to issue up to $500.0 million in common stock through an "at-the-market" equity offering program[85]. - Cash used in investing activities totaled $468.6 million, primarily for acquisitions of real estate and related investments[107]. - Cash flows from financing activities included $572.2 million in net proceeds from the issuance of common stock for the six months ended June 30, 2024[107]. - The company has an unsecured revolving credit facility with a principal amount of $600.0 million and an unsecured term loan of $200.0 million[110]. - As of June 30, 2024, the company had $200.0 million outstanding under the Term Loan and no borrowings under the Revolving Facility[110]. Operating Costs and Economic Conditions - The company experienced labor shortages and increased operating costs due to current macroeconomic conditions, impacting tenants' financial obligations[79]. - California Senate Bill No. 525 mandates a minimum wage increase for healthcare workers, potentially affecting operating costs for facilities[80]. - Property taxes increased by $1.5 million, or 66%, due to a $1.9 million increase related to acquisitions made after January 1, 2023[102]. Interest Rates and Risk Management - The interest rates for the Revolving Facility range from 0.10% to 0.55% per annum or 1.10% to 1.55% per annum based on the debt to asset value ratio[110]. - The interest rate for the secured borrowing was 7.83% as of June 30, 2024[111]. - An increase of 100 basis points in interest rates would have increased interest expense by approximately $1.4 million for the six months ended June 30, 2024[117]. - The company had no swap agreements to hedge interest rate risks as of June 30, 2024[118]. - The company plans to manage interest rate risk by maintaining a mix of fixed and variable rates for its indebtedness[118]. Dividends and REIT Status - The company is required to pay dividends to maintain its REIT status, with annual dividends expected to be no less than 90% of its annual REIT taxable income[114].

Core Viewpoint - CareTrust REIT (NYSE:CTRE) is positioned for growth and is recommended for inclusion in investment portfolios due to its strong fundamentals and recent performance in the REIT sector [2][6]. Company Performance - CareTrust REIT has seen accelerated growth, closing over $200 million in new investments and expanding its operations from 24 to 30 states [6][7]. - The company reported Q1 revenue growth of over 5% to $63.07 million, exceeding estimates by more than $3 million, despite FFO remaining flat at $0.35 [8][22]. - Year-over-year revenue increased from approximately $51 million in Q1 2023 to $63 million in Q1 2024, marking a growth rate of nearly 24% [22]. Financial Health - CareTrust REIT has strong cash and liquidity levels, with $345 million in cash and $600 million available in a revolving credit facility, an increase from $300 million at the beginning of the year [12]. - The company has a low net debt to EBITDA ratio of 0.6x, significantly below the management's target range of 4x - 5x, indicating a favorable position for future acquisitions [26][27]. - The dividend payout ratio stands at 85%, with $41.2 million in paid dividends compared to $48.7 million in funds available for distribution, suggesting a safe dividend coverage [25]. Growth Potential - CareTrust REIT is expected to achieve an average earnings growth rate of 7.2% over the next three years, with a price target of $29, indicating an upside potential of approximately 18% [29]. - The company has a robust acquisition pipeline, with nearly $400 million in acquisitions made and additional acquisitions planned [20][21]. Market Position - CareTrust REIT has outperformed its peer Omega Health Investors (OHI), with a forward P/FFO ratio of 17.1x compared to OHI's 12.1x, reflecting a higher valuation due to its growth strategy [14].

Core Viewpoint - CareTrust REIT is a triple net lease healthcare REIT focused on Skilled Nursing facilities, with a conservative capital structure and flat year-over-year financial performance in Q1 2024, leading to a neutral outlook on shares [2][22]. Company Overview - CareTrust REIT primarily invests in Skilled Nursing facilities (70% of the portfolio), Multi-Service Campus (22%), and Seniors Housing (8%) [2]. - The company has significant geographic exposure to the Sun Belt region, with California (28% of revenue) and Texas (19%) being the largest contributors [2]. Financial Performance - CareTrust reported a normalized FFO of $0.35/share, flat year-over-year, and a normalized FAD of $0.37/share, also flat year-over-year [2]. - The company has slightly reduced its 2024 guidance to a normalized FFO of approximately $1.42-$1.44/share, up 1% year-over-year, and a normalized FAD of approximately $1.46-$1.48, down 1% year-over-year [7]. Investment Strategy - CareTrust has allocated approximately $386 million for acquisitions and loan/preferred equity financing in 2024, with an average stabilized yield of 10.24% [10]. - The company maintains a conservative capital structure with only $149 million in net debt at the end of Q1 2024, representing just 4% of its enterprise value [8]. Market Position - CareTrust REIT has outperformed the Vanguard Real Estate Index Fund ETF (VNQ) in 2024, delivering a low double-digit return [4]. - The stock currently trades at a market-implied cap rate of about 6.1%, which is considered not particularly exciting given the low leverage of 9% of enterprise value [12][17]. Tenant Exposure - During Q1 2024, 98% of rent and interest was collected on time, with a projected 1.5-2% uncollected rent for the full year [19]. - The Ensign Group represents 32% of all rents, indicating significant tenant exposure [20]. Coverage Metrics - Coverage metrics such as EBITDAR and EBITDARM are well above one, showing strong rent payment coverage despite weaker performance from smaller tenants [21].

Core Insights - The market is anticipating significant movement in CareTrust REIT shares, indicated by high implied volatility in options trading [2][5] - CareTrust REIT currently holds a Zacks Rank of 5 (Strong Sell), placing it in the bottom 30% of the Zacks Industry Rank [2] - Over the past 60 days, no analysts have raised earnings estimates for CareTrust REIT, with one analyst lowering the estimate from 38 cents to 36 cents per share for the current quarter [2] Options Trading Strategy - The high implied volatility suggests a potential trading opportunity, as options traders often seek to sell premium on options with elevated implied volatility [3] - Seasoned traders typically employ strategies that capitalize on the decay of options, hoping that the underlying stock does not move as much as initially expected by expiration [3]

CareTrust REIT, Inc. (NYSE:CTRE) Q1 2024 Results Conference Call May 3, 2024 1:00 PM ET Company Participants Lauren Beale - Senior Vice President and Controller Dave Sedgwick - President and Chief Executive Officer Bill Wagner - Chief Financial Officer Conference Call Participants Jonathan Hughes - Raymond James Juan Sanabria - BMO Capital Markets Michael Carroll - RBC Capital Markets Tayo Okusanya - Deutsche Bank Alec Feygin - Baird Austin Wurschmidt - KeyBanc Capital Markets Joe Dickstein - Jefferies Oper ...

Exhibit 99.1 Conference Call Scheduled for Friday, May 3, 2024 at 1:00 pm ET • Investments of $118.8 million during the quarter and $206.5 million year-to-date at an estimated stabilized yield of 11.1% and 10.5%, respectively, after rent ramps under the applicable leases are completed; • 11.6 million shares sold under its ATM Program for gross proceeds of $273.2 million; • 98.0% of contractual rent and interest collected; • Net income of $28.7 million and net income per share of $0.22; • Net Debt to Annuali ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Maryland 46-3999490 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36181 CareTrust REIT, Inc. (Exact name of registrant as specified in its charter) (State ...