CareTrust REIT(CTRE) - 2025 Q3 - Quarterly Results

Financial Performance - CareTrust reported net income of $74.9 million, or $0.35 per diluted share, representing a 67% increase from the prior year quarter[2][4] - Normalized FFO was $94.7 million, or $0.45 per diluted share, an 18% increase year-over-year[2][4] - Normalized FAD reached $93.1 million, or $0.44 per diluted share, reflecting a 13% increase compared to the same quarter last year[2][4] - For the three months ended September 30, 2025, total revenues increased to $132,444,000, up 70.9% from $77,381,000 in the same period of 2024[16] - Net income attributable to CareTrust REIT, Inc. for the three months ended September 30, 2025, was $74,901,000, compared to $33,441,000 for the same period in 2024, representing a 123.8% increase[21] - Earnings per common share attributable to CareTrust REIT, Inc. for the three months ended September 30, 2025, was $0.35, up from $0.21 in the same period of 2024[16] - Normalized Funds from Operations (FFO) attributable to CareTrust REIT, Inc. for the three months ended September 30, 2025, was $94,677,000, compared to $60,896,000 for the same period in 2024, an increase of 55.6%[21] Debt and Leverage - CareTrust's net debt-to-annualized normalized run rate EBITDA was 0.42x, significantly below the target leverage range of 4.0x to 5.0x[3][4] - Total debt as of September 30, 2025, was $900,000,000, significantly higher than $400,000,000 in 2024[19] - Net Debt for the three months ended September 30, 2025, was $187,520,000, compared to $22,898,000 in the same period of 2024, indicating a substantial increase in leverage[19] - The company’s total liabilities increased to $1,071,710 thousand as of September 30, 2025, from $507,633 thousand as of December 31, 2024, a rise of 111.1%[33] - The company’s total debt as of September 30, 2025, was $893,795 thousand, with a weighted average interest rate of 4.294%[37] Investments and Growth Potential - CareTrust closed investments totaling approximately $436.5 million at an estimated stabilized yield of 8.8% during the quarter[4] - CareTrust has an investment pipeline of approximately $600 million, indicating strong future growth potential[1][4] - The updated guidance for 2025 projects net income of approximately $1.41 to $1.42 per diluted share and normalized FFO of approximately $1.76 to $1.77[5] Dividends - The quarterly dividend was maintained at $0.335 per share, with a payout ratio of approximately 76% based on normalized FAD[6] - The company declared dividends of $0.335 per common share for the three months ended September 30, 2025, compared to $0.29 in the same period of 2024[16] Cash Flow and Assets - Cash and cash equivalents rose to $712,480 thousand as of September 30, 2025, compared to $213,822 thousand at the beginning of the period, marking a 233.5% increase[35] - Net cash provided by operating activities was $273,069 thousand for the nine months ended September 30, 2025, compared to $169,043 thousand for the same period in 2024, an increase of 61.7%[35] - Total assets increased to $5,088,920 thousand as of September 30, 2025, up from $3,437,016 thousand as of December 31, 2024, representing a growth of 48.3%[33] Performance Metrics - FFO attributable to CareTrust REIT, Inc. is defined as net income excluding gains or losses from real estate dispositions, depreciation, and impairment charges[45] - FAD attributable to CareTrust REIT, Inc. excludes noncash income and expenses, providing a clearer view of operating results[46] - The Company reports Normalized FFO and Normalized FAD, adjusting for non-indicative revenue and expense items to enhance comparability[47] - Net Debt to Annualized Normalized Run Rate EBITDA is calculated to assess the Company's credit strength and ability to service debt obligations[50] - The Company considers net income as defined by GAAP to be the most appropriate earnings measure for evaluating performance[51] - Normalized Run Rate EBITDA is adjusted for investments completed during the quarter, annualized by multiplying by four[50] - FFO, Normalized FFO, FAD, and Normalized FAD are relevant measures among REITs but do not represent cash flows from operations[48] - The Company aims to improve understanding of operating results among investors by combining various performance measures[51] - The computation of FFO and FAD may differ from other REITs due to varying definitions and interpretations[49] - The Company believes that excluding certain items allows for a more meaningful comparison of operating performance between periods[51]