CareTrust REIT(CTRE) - 2024 Q4 - Annual Results

Financial Performance - CareTrust reported a net income of $52.1 million for Q4 2024, translating to $0.29 per diluted share, and a full-year net income of $125.1 million, or $0.80 per diluted share[2]. - The company achieved normalized FFO of $72.9 million for Q4 2024, or $0.40 per diluted share, and $232.9 million for the full year, equating to $1.50 per diluted share[2]. - CareTrust's normalized FAD for Q4 2024 was $74.3 million, or $0.41 per diluted share, with a full-year total of $238.8 million, or $1.54 per diluted share[2]. - Net income attributable to CareTrust REIT, Inc. for Q4 2024 was $52,135,000, a 98.5% increase from $26,296,000 in Q4 2023[16]. - EBITDA attributable to CareTrust REIT, Inc. for Q4 2024 was $73,041,000, up 47.4% from $49,547,000 in Q4 2023[16]. - Annualized Normalized Run Rate EBITDA attributable to CareTrust REIT, Inc. increased to $360,796,000 in 2024 from $213,876,000 in 2023, representing a 68.7% growth[20]. - Funds from Operations (FFO) attributable to CareTrust REIT, Inc. for Q4 2024 was $72,112,000, a 63.8% increase from $44,033,000 in Q4 2023[21]. - Normalized FFO per share for Q4 2024 was $0.40, up from $0.36 in Q4 2023, reflecting an 11.1% increase[24]. - Total revenues for Q4 2024 reached $86,944,000, compared to $59,734,000 in Q4 2023, marking a 45.5% increase[26]. - The company reported a normalized FAD of $74,286,000 for Q4 2024, up from $45,384,000 in Q4 2023, representing a 63.8% increase[24]. - Net income for the twelve months ended December 31, 2024, was $124,399,000, a significant increase from $53,722,000 in 2023, representing a growth of 131.1%[34]. - Net cash provided by operating activities increased to $244,251,000 in 2024 from $154,767,000 in 2023, reflecting a rise of 57.8%[34]. Debt and Liquidity - CareTrust's net debt-to-annualized normalized run rate EBITDA stood at 0.5x, significantly below the target leverage range of 4.0x to 5.0x[3]. - The company has approximately $205 million in cash on hand and no borrowings on its $1.2 billion revolving credit line[3]. - The company’s total debt as of December 31, 2024, was $400,000,000, with a fixed interest rate of 3.875%[36]. - Cash and cash equivalents decreased to $213,822,000 as of December 31, 2024, from $294,448,000 as of December 31, 2023[32]. - The company reported a net cash decrease of $80,626,000 for the period, contrasting with an increase of $281,270,000 in the previous year[34]. Investment and Growth - CareTrust has an investment pipeline of approximately $325 million and recently sold 15.9 million shares for gross proceeds of $507.8 million[4]. - Real estate investments increased to $2,226,740,000 as of December 31, 2024, from $1,567,119,000 as of December 31, 2023[32]. - Total assets reached $3,437,016,000 as of December 31, 2024, up from $2,084,838,000 a year earlier[32]. - Total liabilities decreased to $507,633,000 as of December 31, 2024, from $666,121,000 as of December 31, 2023[32]. - Proceeds from the issuance of common stock reached $1,552,894,000 in 2024, up from $634,446,000 in 2023, marking an increase of 144.5%[34]. Future Projections - For 2025, CareTrust projects net income of approximately $1.35 to $1.39 per diluted share and normalized FFO of approximately $1.68 to $1.72 per diluted share[5]. - The company provided guidance for 2025, estimating Funds from Operations (FFO) attributable to CareTrust REIT, Inc. to be between $1.66 and $1.70 per share[39]. - Funds Available for Distribution (FAD) attributable to CareTrust REIT, Inc. is projected to be between $1.72 and $1.76 per share for 2025[39]. Operational Metrics - The company maintained a quarterly dividend of $0.29 per share, resulting in a payout ratio of approximately 71% based on normalized FAD[5]. - The company reported 98.8% of contractual rent and interest collected during the quarter[4]. - Property operating expenses for Q4 2024 were $1,665,000, compared to $714,000 in Q4 2023, indicating a significant increase in operational costs[21]. - Impairment of real estate investments for the twelve months ended December 31, 2024, was $42,225,000, up from $36,301,000 in 2023, showing a 16.4% increase[21]. - The company experienced an impairment of real estate investments amounting to $42,225,000 in 2024, compared to $36,301,000 in 2023, reflecting an increase of 16.4%[34]. Financial Metrics and Analysis - The Company considers net income attributable to CareTrust REIT, Inc. as the most appropriate earnings measure according to GAAP[48]. - EBITDA and Normalized EBITDA are deemed useful for understanding operating results independent of capital structure and indebtedness[48]. - FFO, Normalized FFO, FAD, and Normalized FAD are important for reviewing comparative operating and financial performance by excluding certain non-operational charges[48]. - The disclosure of Net Debt to Annualized Normalized Run Rate EBITDA is considered a useful measure for evaluating the Company's credit strength[48]. - The Company believes that these measures allow for more meaningful comparisons of operating performance between periods and against other REITs[48]. - The exclusion of gains or losses from real estate dispositions and impairment charges helps in assessing ongoing performance[48]. - Noncash income and expenses are excluded from FAD and Normalized FAD to provide a clearer picture of operational performance[48]. - The Company aims to improve understanding of operating results among investors through these financial metrics[48]. - The measures help in comparing the Company's credit strength to prior reporting periods and other companies[48]. - The Company emphasizes the importance of these metrics in evaluating its ability to service debt obligations[48].