CareTrust REIT(CTRE) - 2025 Q2 - Quarterly Results

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].