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 ...

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with CareTrust REIT (CTRE) currently holding a Momentum Style Score of B [2][3] Group 2: CareTrust REIT Performance - CareTrust REIT has a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance in the market [3] - Over the past week, CTRE shares increased by 1.61%, while the Zacks REIT and Equity Trust - Other industry declined by 1.04% [5] - In the last three months, CTRE shares rose by 10.97%, and over the past year, they increased by 37.36%, significantly outperforming the S&P 500's gains of 2.96% and 19.86% respectively [6] Group 3: Trading Volume and Earnings Outlook - CTRE's average 20-day trading volume is 1,416,967 shares, which serves as a bullish indicator when combined with rising stock prices [7] - In the past two months, two earnings estimates for CTRE have increased, raising the consensus estimate from $1.45 to $1.47 [9] - The positive earnings revisions and strong price performance contribute to CTRE's status as a 1 (Strong Buy) stock with a Momentum Score of B [9]

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 ...

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].