CareTrust REIT(CTRE) - 2025 Q4 - Annual Results

Financial Performance - For the full year 2025, CareTrust reported net income of $320.5 million, or $1.57 per diluted weighted-average common share, a 96% increase from the prior year[3]. - Normalized FFO for 2025 was $359.7 million, or $1.76 per diluted weighted-average common share, reflecting a 17% increase year-over-year[3]. - For the fourth quarter, net income was $111.3 million, or $0.50 per diluted weighted-average common share, a 72% increase from the prior year quarter[3]. - Net income attributable to CareTrust REIT, Inc. for the twelve months ended December 31, 2025, was $320.5 million, compared to $125.1 million in 2024, representing a 156% increase[15]. - Earnings per common share attributable to CareTrust REIT, Inc. for the three months ended December 31, 2025, was $0.50, up from $0.29 in the same period of 2024[15]. - Net income attributable to CareTrust REIT, Inc. for Q4 2025 was $111.29 million, a significant increase from $52.14 million in Q4 2024, representing a growth of 113%[25]. - Total revenues for Q4 2025 reached $134.86 million, up from $86.94 million in Q4 2024, marking a year-over-year increase of 55%[27]. - Total revenues for the three months ended December 31, 2025, increased to $134.9 million, up 55% from $86.9 million in the same period of 2024[15]. Dividends and Payouts - CareTrust maintained a quarterly dividend of $0.335 per share, with a payout ratio of approximately 73% based on fourth quarter 2025 Normalized FAD[6]. - The company declared dividends of $0.335 per common share for the three months ended December 31, 2025, compared to $0.290 in the same period of 2024[15]. Investment and Growth - The company closed $1.8 billion of investment activity at a blended stabilized yield of 8.6% for the year[3]. - CareTrust's investment pipeline stands at $500 million, indicating strong growth potential[5]. - The company plans to continue expanding its real estate investments and has allocated significant capital for acquisitions in the upcoming year[39]. Debt and Financial Position - As of quarter end, CareTrust reported a Net Debt-to-Annualized Normalized Run Rate EBITDA of 0.7x, significantly below the target leverage range of 4.0x to 5.0x[4]. - The company has approximately $100 million in cash on hand and $372.0 million of gross proceeds pending from unsettled forward equity contracts[4]. - The company reported a net debt of $322.7 million as of December 31, 2025, with a net debt to annualized normalized run rate EBITDA ratio of 0.7x, compared to 0.5x in 2024[18]. - Senior unsecured notes payable totaled $397,816,000 as of December 31, 2025, with a fixed interest rate of 3.875% maturing in 2028[37]. - The total liabilities increased to $1,089,468,000 as of December 31, 2025, from $507,633,000 in 2024, indicating a rise of approximately 114%[33]. Future Projections - The company projects 2026 net income attributable to CareTrust of approximately $1.45 to $1.50 per share, Normalized FFO of approximately $1.90 to $1.95 per share, representing a 9.4% increase over 2025 results[5]. - Net income attributable to CareTrust REIT, Inc. ranged from $326 million to $338 million, with a per share estimate of $1.45 to $1.50[40]. - Funds from Operations (FFO) were projected between $427 million and $439 million, translating to a per share estimate of $1.90 to $1.95[40]. - Funds Available for Distribution (FAD) is expected to be between $428 million and $440 million, also with a per share estimate of $1.90 to $1.95[40]. - Cash rental revenue guidance is set at $430 million to $436 million[41]. - Interest income is projected to be between $88 million and $92 million[41]. - General and administrative expenses are expected to be in the range of $57 million to $59 million[41]. - Interest expense is anticipated to be between $45 million and $46 million[41]. Operational Metrics - The company achieved 100% collection of contractual rent and interest, excluding properties sold during the quarter[3]. - Normalized EBITDA attributable to CareTrust REIT, Inc. for the three months ended December 31, 2025, was $120.2 million, a 33% increase from $90.2 million in the same period of 2024[16]. - Normalized FFO attributable to CareTrust REIT, Inc. was $104.09 million for the year ended December 31, 2025, compared to $77.85 million in 2024, reflecting a growth of 33.9%[30]. - Real estate investments, net, increased to $3,709,576,000 as of December 31, 2025, from $2,226,740,000 in 2024, marking a growth of approximately 66.7%[33]. - Cash flows from operating activities for the year ended December 31, 2025, were $394,029,000, an increase from $244,251,000 in 2024[35]. Expenses and Impairments - Total expenses for the twelve months ended December 31, 2025, were $206.5 million, compared to $178.1 million in 2024, reflecting a 16% increase[15]. - The company’s interest expense for the twelve months ended December 31, 2025, was $43.7 million, an increase from $30.3 million in 2024[15]. - The impairment of real estate investments for the three months ended December 31, 2025, was $2.0 million, down from $5.4 million in the same period of 2024[15]. - Impairment of real estate investments was reported at $2.03 million for Q4 2025, down from $5.35 million in Q4 2024, showing a decrease of 62%[25]. - The company incurred non-routine transaction costs of $3.82 million in Q4 2025, compared to $1.33 million in Q4 2024, indicating an increase of 187%[25].