CareTrust REIT Announces Second Quarter 2025 Operating Results
Business Wire2 days ago
SAN CLEMENTE, Calif.--(BUSINESS WIRE)--CareTrust REIT, Inc. (NYSE:CTRE) today reported operating results for the quarter ended June 30, 2025, as well as other recent events.
For the quarter, CareTrust REIT reported:
Investments of $1.1 billion at an estimated stabilized yield of 8.4%, including the acquisition of Care REIT plc;
Upsized the credit facility to include a $500 million, 5-year term loan;
12.1 million shares sold under its ATM Program for gross proceeds of $353.9 million;
Investment grade rating by Fitch;
99.7% of contractual rent and interest collected;
Net income of $68.5 million and net income per share of $0.35;
Net Debt to Annualized Normalized Run Rate EBITDA of 2.0x;
Normalized FFO of $83.1 million and normalized FFO per share of $0.43;
Normalized FAD of $83.1 million and normalized FAD per share of $0.43; and
A quarterly dividend of $0.335 per share, representing a payout ratio of approximately 78% on normalized FAD.
Since quarter end, CareTrust REIT reports:
Closing of investments totaling approximately $29.4 million at an estimated stabilized yield of 9%;
Pay off of the secured notes payable and secured revolving credit facilities assumed in the Care REIT acquisition;
Cash on hand of approximately $65 million; and
Investment pipeline of approximately $600 million.
CareTrust's President and Chief Executive Officer, Dave Sedgwick, commented, 'Over the last 18 months we have invested more than the prior eight years combined, deploying roughly $2.7 billion of capital into growth opportunities. In May, we closed on the strategic acquisition of Care REIT that marked our entry into the UK care home market. Determined to maintain momentum in the wake of that transaction, we invested an additional $220 million in the second quarter and since, bringing our total investments year-to-date to approximately $1.2 billion. These investments have broadened our operator bench and diversified our asset mix, payor base and geographic reach -- all while we maintained low leverage, improved our credit capacity to support future expansion and reloaded our pipeline.' Mr. Sedgwick continued, 'To ensure the flywheel continues to rip, we have invested throughout the organization by selectively adding talent in tax, finance, investments and asset management, integrating a team of London-based professionals, and deepening operator relationships. All of these moves together are not only producing meaningful FFO per share growth but are also setting the table for strong performance for years to come.'
Financial Results for Quarter Ended June 30, 2025
Chief Financial Officer, Bill Wagner, reported that, for the second quarter, CareTrust reported net income of $68.5 million, or $0.35 per diluted weighted-average common share, normalized FFO of $83.1 million, or $0.43 per diluted weighted-average common share, and normalized FAD of $83.1 million, or $0.43 per diluted weighted-average common share.
Liquidity
As of quarter end, CareTrust reported net debt-to-annualized normalized run rate EBITDA of 2.0x, which is below the Company's target leverage range of 4.0x to 5.0x, and a net debt-to-enterprise value of approximately 12.3%. Mr. Wagner stated that, as of today, the Company has $65.0 million in borrowings outstanding on its $1.2 billion revolving credit line, with no scheduled debt maturities prior to 2028. He also disclosed that CareTrust currently has approximately $65 million in cash on hand. During the second quarter of 2025, the Company sold 12.1 million shares under its ATM Program at a weighted average sales price of $29.36 per share for gross proceeds of $353.9 million. As of June 30, 2025, the Company had $380.1 million available for future issuances under the ATM Program. 'We have plenty of available capital under both our ATM Program and revolving credit line which will allow us to fund a replenishing pipeline of accretive investment opportunities,' said Mr. Wagner.
Increased Guidance
The Company increased guidance for 2025, with Mr. Wagner projecting on a per-diluted weighted-average common share basis net income of approximately $1.43 to $1.45, normalized FFO of approximately $1.77 to $1.79, and normalized FAD of approximately $1.77 to $1.79. He noted that the 2025 guidance is based on a diluted weighted-average common share count of 195.3 million shares, and assumes the following:
All investments year-to-date;
No new investments;
Dispositions made to date;
Loan repayments made to date;
No new dispositions;
No new debt incurrences or new equity issuances; and
Estimated 2.5% CPI-based rent escalators under CareTrust's long-term net leases.
Dividend Maintained
During the quarter, CareTrust declared a quarterly dividend of $0.335 per common share. On an annualized basis, the payout ratio was approximately 78% based on second quarter 2025 normalized FFO, and 78% based on second quarter 2025 normalized FAD.
Conference Call
A conference call will be held on Thursday, August 7, 2025, at 1:00 p.m. Eastern Time (10:00 a.m. Pacific Time), during which CareTrust's management will discuss second quarter 2025 results, recent developments and other matters. The toll-free dial-in number is 1 (800) 715-9871 or toll dial-in number is 1 (646) 307-1963 and the conference ID number is 2243604. To listen to the call online, or to view any financial or other statistical information required by SEC Regulation G, please visit the Investors section of the CareTrust REIT website at http://investor.caretrustreit.com. This call will be recorded, and will be available for replay via the website for 30 days following the call.
About CareTrust TM
CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a portfolio of long-term net-leased properties spanning the United States and United Kingdom, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States and internationally. More information about CareTrust REIT is available at www.caretrustreit.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This press release contains, and the related conference call will include, 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 Company's intent, belief or expectations, including, but not limited to, 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; operating and financial performance; expectations regarding the making of distributions and payment of dividends; and the performance of the Company's tenants and operators and their respective facilities.
Words such as 'anticipate,' 'believe,' 'could,' 'expect,' 'estimate,' 'intend,' 'may,' 'plan,' 'seek,' 'should,' 'will,' 'would,' and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements, though not all forward-looking statements contain these identifying words. The Company's forward-looking statements are based on management's current expectations and beliefs, and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although the Company believes that the assumptions underlying these forward-looking statements are reasonable, they are not guarantees and the Company can give no assurance that its expectations will be attained. Factors which could have a material adverse effect on the Company's operations and future prospects or which could cause actual results to differ materially from expectations include, but are not limited to: (i) the ability and willingness of our tenants and borrowers to meet and/or perform their obligations under the agreements we have entered into with them, including without limitation, their respective obligations to indemnify, defend and hold us harmless from and against various claims, litigation and liabilities; (ii) the risk that we may have to incur additional impairment charges related to our assets held for sale if we are unable to sell such assets at the prices we expect; (iii) the impact of healthcare reform legislation, including potential minimum staffing level requirements, on the operating results and financial conditions of our tenants and borrowers; (iv) the ability of our tenants and borrowers to comply with applicable laws, rules and regulations in the operation of the properties we lease to them or finance; (v) the intended benefits of our acquisition of Care REIT plc ('Care REIT') may not be realized, and we will be subject to additional risks from our investment in Care REIT and any other international investments; (vi) the ability and willingness of our tenants to renew their leases with us upon their expiration, and the ability to reposition our properties on the same or better terms in the event of nonrenewal or in the event we replace an existing tenant, as well as any obligations, including indemnification obligations, we may incur in connection with the replacement of an existing tenant; (vii) the availability of and the ability to identify (a) tenants who meet our credit and operating standards, and (b) suitable acquisition opportunities and the ability to acquire and lease the respective properties to such tenants on favorable terms; (viii) the ability to generate sufficient cash flows to service our outstanding indebtedness; (ix) access to debt and equity capital markets; (x) fluctuating interest and currency rates; (xi) the impact of public health crises, including significant COVID-19 outbreaks as well as other pandemics or epidemics; (xii) the ability to retain our key management personnel; (xiii) the ability to maintain our status as a real estate investment trust ('REIT'); (xiv) changes in the U.S. tax law and other state, federal or local laws, whether or not specific to REITs; (xv) other risks inherent in the real estate business, including potential liability relating to environmental matters and illiquidity of real estate investments; and (xvi) any additional factors included in our Annual Report on Form 10-K for the year ended December 31, 2024, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, including in the sections entitled 'Risk Factors' in Item 1A of such reports, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the SEC.
This press release and the related conference call provides information about the Company's financial results as of and for the quarter ended June 30, 2025 and is provided as of the date hereof, unless specifically stated otherwise. The Company expressly disclaims any obligation to update or revise any information in this press release or the related conference call (and replays thereof), including forward-looking statements, whether to reflect any change in the Company's expectations, any change in events, conditions or circumstances, or otherwise.
As used in this press release or the related conference call, unless the context requires otherwise, references to 'CTRE,' ' CareTrust, ' 'CareTrust REIT' or the 'Company' refer to CareTrust REIT, Inc. and its consolidated subsidiaries. GAAP refers to generally accepted accounting principles in the United States of America.
CARETRUST REIT, INC.
(in thousands)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
Net income attributable to CareTrust REIT, Inc.
$
68,545
$
10,758
$
134,347
$
39,504
Depreciation and amortization
21,215
13,860
39,056
27,308
Noncontrolling interests' share of real estate related depreciation and amortization
(2,513
)
—
(4,736
)
—
Interest expense [1]
13,038
8,222
19,707
16,450
Income tax expense
1,030
—
1,030
—
Amortization of stock-based compensation
1,945
1,406
5,038
3,526
Amortization of stock-based compensation related to extraordinary incentive plan
1,081
—
1,897
—
EBITDA attributable to CareTrust REIT, Inc.
104,341
34,246
196,339
86,788
Impairment of real estate investments
—
25,711
—
28,455
Gain on foreign currency transaction
(4,413
)
—
(4,413
)
—
Property operating expenses
1,090
361
985
1,333
Gain on sale of real estate, net
—
(21
)
(3,876
)
(32
)
Non-routine transaction costs
61
—
949
—
Unrealized (gain) loss on other real estate related investments, net
(1,968
)
1,877
(3,255
)
2,489
Normalized EBITDA attributable to CareTrust REIT, Inc.
99,111
62,174
$
186,729
$
119,033
Full impact of quarterly investments [2]
10,126
3,188
Normalized Run Rate EBITDA attributable to CareTrust REIT, Inc.
$
109,237
$
65,362
(in thousands)
(Unaudited)
Three Months Ended
June 30,
2025
2024
Total debt [1]
$
1,161,990
$
600,000
Cash, cash equivalents, restricted cash and escrow deposits on acquisitions of real estate
(306,051
)
(495,134
)
Net Debt
$
855,939
$
104,866
Annualized Normalized Run Rate EBITDA attributable to CareTrust REIT, Inc. [3]
$
436,948
$
261,448
Net Debt to Annualized Normalized Run Rate EBITDA attributable to CareTrust REIT, Inc.
2.0x
0.4x
[1] Interest expense and Total debt exclude the effect of the $75.0 million participation interest recorded as a secured borrowing in the consolidated balance sheets.
[2] Quarterly adjustments give effect to the investments completed and loans receivable pay downs during the three months ended for the respective period as though such investments and pay downs were completed as of the beginning of the period.
[3] Annualized Normalized Run Rate EBITDA is calculated as Normalized Run Rate EBITDA attributable to CareTrust REIT, Inc. for the quarter multiplied by four (4).
(in thousands)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
Net income attributable to CareTrust REIT, Inc.
$
68,545
$
10,758
$
134,347
$
39,504
Real estate related depreciation and amortization
21,208
13,853
39,041
27,295
Noncontrolling interests' share of real estate related depreciation and amortization
(2,513
)
—
(4,736
)
—
Impairment of real estate investments
—
25,711
—
28,455
Gain on sale of real estate, net
—
(21
)
(3,876
)
(32
)
Funds from Operations (FFO) attributable to CareTrust REIT, Inc.
87,240
50,301
164,776
95,222
Gain on foreign currency transaction
(4,413
)
—
(4,413
)
—
Property operating expenses
1,090
361
985
1,333
Non-routine transaction costs
61
—
949
—
Amortization of stock-based compensation related to extraordinary incentive plan
1,081
—
1,897
—
Unrealized (gain) loss on other real estate related investments, net
(1,968
)
1,877
(3,255
)
2,489
Normalized FFO attributable to CareTrust REIT, Inc.
$
83,091
$
52,539
$
160,939
$
99,044
Expand
CARETRUST REIT, INC.
(in thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
Net income attributable to CareTrust REIT, Inc.
$
68,545
$
10,758
$
134,347
$
39,504
Real estate related depreciation and amortization
21,208
13,853
39,041
27,295
Noncontrolling interests' share of real estate related depreciation and amortization
(2,513
)
—
(4,736
)
—
Amortization of deferred financing fees
984
614
1,898
1,228
Amortization of stock-based compensation
1,945
1,406
5,038
3,526
Amortization of stock-based compensation related to extraordinary incentive plan
1,081
—
1,897
—
Straight-line rental income
(1,760
)
7
(1,753
)
14
Amortization of lease incentives
48
4
96
4
Noncontrolling interests' share of amortization of lease incentives
(24
)
—
(48
)
—
Amortization of above and below market leases
(972
)
(575
)
(1,898
)
(1,150
)
Noncontrolling interests' share of amortization of below market leases
463
—
926
—
Non-cash interest income
(703
)
—
(1,326
)
—
Impairment of real estate investments
—
25,711
—
28,455
Gain on sale of real estate, net
—
(21
)
(3,876
)
(32
)
Funds Available for Distribution (FAD) attributable to CareTrust REIT, Inc.
88,302
51,757
169,606
98,844
Gain on foreign currency transaction
(4,413
)
—
(4,413
)
—
Property operating expenses
1,090
361
985
1,333
Non-routine transaction costs
61
—
949
—
Unrealized (gain) loss on other real estate related investments, net
(1,968
)
1,877
(3,255
)
2,489
Normalized FAD attributable to CareTrust REIT, Inc.
$
83,072
$
53,995
$
163,872
$
102,666
FFO per share attributable to CareTrust REIT, Inc.
$
0.45
$
0.35
$
0.87
$
0.68
Normalized FFO per share attributable to CareTrust REIT, Inc.
$
0.43
$
0.36
$
0.85
$
0.71
FAD per share attributable to CareTrust REIT, Inc.
$
0.46
$
0.36
$
0.89
$
0.71
Normalized FAD per share attributable to CareTrust REIT, Inc.
$
0.43
$
0.37
$
0.86
$
0.74
[1] For the periods presented, the diluted weighted average shares have been calculated using the treasury stock method.
Expand
CARETRUST REIT, INC.
(in thousands, except per share data)
(Unaudited)
Quarter
Quarter
Quarter
Quarter
Quarter
June 30,
2024
September 30,
2024
December 31,
2024
March 31,
2025
June 30,
2025
Revenues:
Rental income
$
55,407
$
57,153
$
62,199
$
71,646
$
86,033
Interest income from financing receivable
—
—
1,009
2,807
2,886
Interest income from other real estate related investments and other income
13,484
20,228
23,736
22,168
23,550
Total revenues
68,891
77,381
86,944
96,621
112,469
Expenses:
Depreciation and amortization
13,860
14,009
15,514
17,841
21,215
Interest expense
8,679
8,281
5,122
6,669
13,038
Property taxes and insurance
1,976
2,115
1,946
2,065
2,117
Impairment of real estate investments
25,711
8,417
5,353
—
—
Transaction costs
—
—
1,326
888
61
Provision for loan losses
—
—
4,900
—
—
Property operating expenses
255
3,477
1,322
105
938
General and administrative
6,136
6,663
9,286
9,023
12,549
Total expenses
56,617
42,962
44,769
36,591
49,918
Other (loss) income:
Loss on extinguishment of debt
—
(657
)
—
—
—
Gain (loss) on sale of real estate, net
21
(2,286
)
46
3,876
—
Unrealized (loss) gain on other real estate related investments, net
(1,877
)
1,800
9,734
1,287
1,968
Gain on foreign currency transaction
—
—
—
—
4,413
Total other (loss) income
(1,856
)
(1,143
)
9,780
5,163
6,381
Income before income tax expense
10,418
33,276
51,955
65,193
68,932
Income tax expense
—
—
—
—
(1,030
)
Net income
10,418
33,276
51,955
65,193
67,902
Net loss attributable to noncontrolling interests
(340
)
(165
)
(180
)
(609
)
(643
)
Net income attributable to CareTrust REIT, Inc.
$
10,758
$
33,441
$
52,135
$
65,802
$
68,545
Expand
CARETRUST REIT, INC.
(in thousands)
(Unaudited)
Quarter
Quarter
Quarter
Quarter
Quarter
June 30,
2024
September 30,
2024
December 31,
2024
March 31,
2025
June 30,
2025
Net income attributable to CareTrust REIT, Inc.
$
10,758
$
33,441
$
52,135
$
65,802
$
68,545
Depreciation and amortization
13,860
14,009
15,514
17,841
21,215
Noncontrolling interests' share of real estate related depreciation and amortization
—
—
(837
)
(2,223
)
(2,513
)
Interest expense
8,222
7,807
4,768
6,669
13,038
Income tax expense
—
—
—
—
1,030
Amortization of stock-based compensation
1,406
1,143
1,461
3,093
1,945
Amortization of stock-based compensation related to extraordinary incentive plan
—
—
—
816
1,081
EBITDA attributable to CareTrust REIT, Inc.
34,246
56,400
73,041
91,998
104,341
Write-off of deferred financing costs
—
—
354
—
—
Impairment of real estate investments
25,711
8,417
5,353
—
—
Gain on foreign currency transaction
—
—
—
—
(4,413
)
Provision for loan losses
—
—
4,900
—
—
Property operating expenses (recovery)
361
3,893
1,665
(105
)
1,090
(Gain) loss on sale of real estate, net
(21
)
2,286
(46
)
(3,876
)
—
Loss on extinguishment of debt
—
657
—
—
—
Non-routine transaction costs
—
—
1,326
888
61
Extraordinary incentive plan payment
—
—
2,313
—
—
Unrealized loss (gain) on other real estate related investments, net
1,877
(1,800
)
(9,734
)
(1,287
)
(1,968
)
Normalized EBITDA attributable to CareTrust REIT, Inc.
$
62,174
$
69,853
$
79,172
$
87,618
$
99,111
Net income attributable to CareTrust REIT, Inc.
$
10,758
$
33,441
$
52,135
$
65,802
$
68,545
Real estate related depreciation and amortization
13,853
14,002
15,507
17,833
21,208
Noncontrolling interests' share of real estate related depreciation and amortization
—
—
(837
)
(2,223
)
(2,513
)
Impairment of real estate investments
25,711
8,417
5,353
—
—
(Gain) loss on sale of real estate, net
(21
)
2,286
(46
)
(3,876
)
—
Funds from Operations (FFO) attributable to CareTrust REIT, Inc.
50,301
58,146
72,112
77,536
87,240
Write-off of deferred financing costs
—
—
354
—
—
Gain on foreign currency transaction
—
—
—
—
(4,413
)
Provision for loan losses
—
—
4,900
—
—
Property operating expenses (recovery)
361
3,893
1,665
(105
)
1,090
Non-routine transaction costs
—
—
1,326
888
61
Loss on extinguishment of debt
—
657
—
—
—
Amortization of stock-based compensation related to extraordinary incentive plan
—
—
—
816
1,081
Extraordinary incentive plan payment
—
—
2,313
—
—
Unrealized loss (gain) on other real estate related investments, net
1,877
(1,800
)
(9,734
)
(1,287
)
(1,968
)
Normalized FFO attributable to CareTrust REIT, Inc.
$
52,539
$
60,896
$
72,936
$
77,848
$
83,091
Expand
CARETRUST REIT, INC.
(in thousands, except per share data)
(Unaudited)
Quarter
Quarter
Quarter
Quarter
Quarter
June 30,
2024
September 30,
2024
December 31,
2024
March 31,
2025
June 30,
2025
Net income attributable to CareTrust REIT, Inc.
$
10,758
$
33,441
$
52,135
$
65,802
$
68,545
Real estate related depreciation and amortization
13,853
14,002
15,507
17,833
21,208
Noncontrolling interests' share of real estate related depreciation and amortization
—
—
(837
)
(2,223
)
(2,513
)
Amortization of deferred financing fees
614
614
619
914
984
Amortization of stock-based compensation
1,406
1,143
1,461
3,093
1,945
Amortization of stock-based compensation related to extraordinary incentive plan
—
—
—
816
1,081
Straight-line rental income
7
7
7
7
(1,760
)
Amortization of lease incentives
4
5
13
48
48
Noncontrolling interests' share of amortization of lease incentives
—
—
(6
)
(24
)
(24
)
Amortization of above and below market leases
(575
)
(809
)
(926
)
(926
)
(972
)
Noncontrolling interests' share of amortization of below market leases
—
—
463
463
463
Non-cash interest income
—
—
(281
)
(623
)
(703
)
Impairment of real estate investments
25,711
8,417
5,353
—
—
(Gain) loss on sale of real estate, net
(21
)
2,286
(46
)
(3,876
)
—
Funds Available for Distribution (FAD) attributable to CareTrust REIT, Inc.
51,757
59,106
73,462
81,304
88,302
Write-off of deferred financing costs
—
—
354
—
—
Gain on foreign currency transaction
—
—
—
—
(4,413
)
Provision for loan losses
—
—
4,900
—
—
Property operating expenses (recovery)
361
3,893
1,665
(105
)
1,090
Non-routine transaction costs
—
—
1,326
888
61
Loss on extinguishment of debt
—
657
—
—
—
Extraordinary incentive plan payment
—
—
2,313
—
—
Unrealized loss (gain) on other real estate related investments, net
1,877
(1,800
)
(9,734
)
(1,287
)
(1,968
)
Normalized FAD attributable to CareTrust REIT, Inc.
$
53,995
$
61,856
$
74,286
$
80,800
$
83,072
FFO per share attributable to CareTrust REIT, Inc.
$
0.35
$
0.36
$
0.40
$
0.41
$
0.45
Normalized FFO per share attributable to CareTrust REIT, Inc.
$
0.36
$
0.38
$
0.40
$
0.42
$
0.43
FAD per share attributable to CareTrust REIT, Inc.
$
0.36
$
0.37
$
0.40
$
0.43
$
0.46
Normalized FAD per share attributable to CareTrust REIT, Inc.
$
0.37
$
0.39
$
0.41
$
0.43
$
0.43
Diluted weighted average shares outstanding [1]
145,380
160,025
182,222
187,574
193,055
[1] For the periods presented, the diluted weighted average shares have been calculated using the treasury stock method.
Expand
CARETRUST REIT, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
June 30, 2025
December 31, 2024
Assets:
Real estate investments, net
$
3,256,024
$
2,226,740
Financing receivable, at fair value (including accrued interest of $1,607 and $281 as of June 30, 2025 and December 31, 2024, respectively)
97,330
96,004
Other real estate related investments (including accrued interest of $4,980 and $4,725 as of June 30, 2025 and December 31, 2024, respectively)
840,900
795,203
Assets held for sale, net
55,166
57,261
Cash and cash equivalents
306,051
213,822
Accounts and other receivables
2,687
1,174
Prepaid expenses and other assets, net
88,415
35,608
Deferred financing costs, net
9,958
11,204
Total assets
$
4,656,531
$
3,437,016
Liabilities and Equity:
Senior unsecured notes payable, net
$
397,371
$
396,927
Senior unsecured term loan, net
496,019
—
Secured notes payable
103,005
—
Secured revolving credit facilities
158,985
—
Accounts payable, accrued liabilities and deferred rent liabilities
109,073
56,318
Dividends payable
67,101
54,388
Total liabilities
1,331,554
507,633
Redeemable noncontrolling interests
20,934
18,243
Equity:
Common stock
1,997
1,870
Additional paid-in capital
3,807,882
3,439,117
Cumulative distributions in excess of earnings
(528,376
)
(532,570
)
Accumulated other comprehensive income
19,029
—
Total stockholders' equity
3,300,532
2,908,417
Noncontrolling interests
3,511
2,723
Total equity
3,304,043
2,911,140
Total liabilities and equity
$
4,656,531
$
3,437,016
Expand
CARETRUST REIT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
For the Six Months Ended June 30,
2025
2024
Cash flows from operating activities:
Net income
$
133,095
$
39,168
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including below-market ground leases)
39,122
27,337
Amortization of deferred financing costs
1,898
1,228
Unrealized (gain) loss on other real estate related investments, net
(3,255
)
2,489
Amortization of stock-based compensation
6,935
3,526
Straight-line rental income
(1,753
)
14
Amortization of lease incentives
97
4
Amortization of above and below market leases
(1,899
)
(1,150
)
Noncash interest income
(1,581
)
(1,813
)
Gain on sale of real estate, net
(3,876
)
(32
)
Impairment of real estate investments
—
28,455
Change in operating assets and liabilities:
Accounts and other receivables
573
(719
)
Prepaid expenses and other assets, net
(459
)
(983
)
Accounts payable, accrued liabilities and deferred rent liabilities
3,260
4,271
Net cash provided by operating activities
172,157
101,795
Cash flows from investing activities:
Acquisitions of real estate, net of deposits applied
(820,046
)
(204,554
)
Purchases of equipment, furniture and fixtures and improvements to real estate
(6,783
)
(1,323
)
Investment in real estate related investments and other loans receivable
(21,715
)
(244,825
)
Preferred equity investments
(30,000
)
(9,000
)
Principal payments received on real estate related investments and other loans receivable
9,857
—
Escrow deposits for potential acquisitions of real estate
(1,020
)
(9,075
)
Net proceeds from sales of real estate
44,401
140
Net cash used in investing activities
(825,306
)
(468,637
)
Cash flows from financing activities:
Proceeds from the issuance of common stock, net
365,282
572,236
Proceeds from the issuance of senior unsecured term loan
500,000
—
Proceeds from the secured borrowing
—
75,000
Borrowings under unsecured revolving credit facility
525,000
—
Payments on unsecured revolving credit facility
(525,000
)
—
Payments of deferred financing costs
(4,189
)
(24
)
Net-settle adjustment on restricted stock
(3,325
)
(2,483
)
Dividends paid on common stock
(117,440
)
(77,723
)
Contributions from noncontrolling interests
6,888
576
Distributions to noncontrolling interests
(2,157
)
(54
)
Net cash provided by financing activities
745,059
567,528
Effect of foreign currency translation
319
—
Net increase in cash and cash equivalents
92,229
200,686
Cash and cash equivalents as of the beginning of period
213,822
294,448
Cash and cash equivalents as of the end of period
$
306,051
$
495,134
Expand
CARETRUST REIT, INC.
DEBT SUMMARY
(dollars in thousands)
(Unaudited)
June 30, 2025
Fixed Rate Debt
Senior unsecured notes payable
3.875 %
2028
$
400,000
34.4 %
$
(2,629
)
$
397,371
Secured notes payable [1]
3.000 %
2035
50,816
4.4 %
—
50,816
Secured notes payable [1]
2.932 %
2035
52,189
4.5 %
—
52,189
3.689 %
503,005
43.3 %
(2,629
)
500,376
Floating Rate Debt
Senior unsecured term loan
5.427 %
[2]
2030
500,000
43.0 %
(3,981
)
496,019
Unsecured revolving credit facility
— %
[3]
2029
[4]
—
— %
—
[5]
—
Secured revolving credit facility [1]
6.217 %
2029
64,550
5.6 %
—
64,550
Secured revolving credit facility [1]
6.217 %
2026
62,160
5.3 %
—
62,160
Secured revolving credit facility [1]
6.217 %
2029
32,275
2.8 %
—
32,275
5.617 %
658,985
56.7 %
(3,981
)
655,004
[1] Secured notes payable and secured revolving credit facilities were fully paid off subsequent to June 30, 2025.
[2] Funds can be borrowed at applicable SOFR plus 1.10% to 1.80% or at the Base Rate (as defined) plus 0.10% to 0.80%. The Company has entered into two interest rate swaps, with a notional amount of $250 million each, that convert the variable SOFR rate to an effective fixed interest rate of 3.5%.
[3] Funds can be borrowed at applicable SOFR plus 1.05% to 1.55% or at the Base Rate (as defined) plus 0.05% to 0.55%.
[4] Maturity date does not assume exercise of two 6-month extension options.
[5] Deferred financing fees are not shown net for the unsecured revolving credit facility and are included in assets on the balance sheet.
Expand
CARETRUST REIT, INC.
(shares in thousands)
(Unaudited)
2025 Guidance Increased
Full Year 2025 Guidance [1]
Low
High
Net income attributable to CareTrust REIT, Inc.
$
1.43
$
1.45
Real estate related depreciation and amortization
0.42
0.42
Noncontrolling interests' share of real estate related depreciation and amortization
(0.05
)
(0.05
)
(Gain) loss on sale of real estate
(0.02
)
(0.02
)
Funds from Operations (FFO) attributable to CareTrust REIT, Inc.
1.78
1.80
Property operating expenses
0.01
0.01
Amortization of extraordinary stock grants
0.02
0.02
Non-routine transaction costs
—
—
Gain on foreign currency transaction
(0.02
)
(0.02
)
Unrealized (gain) loss on other real estate related investments, net
(0.02
)
(0.02
)
Normalized FFO attributable to CareTrust REIT, Inc.
$
1.77
$
1.79
Net income attributable to CareTrust REIT, Inc.
$
1.43
$
1.45
Real estate related depreciation and amortization
0.42
0.42
Noncontrolling interests' share of real estate related depreciation and amortization
(0.05
)
(0.05
)
Amortization of deferred financing fees
0.02
0.02
Amortization of stock-based compensation
0.04
0.04
Amortization of extraordinary stock grants
0.02
0.02
Straight-line rental income
(0.04
)
(0.04
)
Amortization of above and below market leases
(0.01
)
(0.01
)
Noncontrolling interests' share of amortization of below market leases
—
—
Non-cash interest income
(0.01
)
(0.01
)
Amortization of lease incentives
—
—
Noncontrolling interests' share of amortization of lease incentives
—
—
(Gain) loss on sale of real estate
(0.02
)
(0.02
)
Funds Available for Distribution (FAD) attributable to CareTrust REIT, Inc.
1.80
1.82
Property operating expenses
0.01
0.01
Non-routine transaction costs
—
—
Gain on foreign currency transaction
(0.02
)
(0.02
)
Unrealized (gain) loss on other real estate related investments, net
(0.02
)
(0.02
)
Normalized FAD attributable to CareTrust REIT, Inc.
$
1.77
$
1.79
Weighted average shares outstanding:
[1] This guidance assumes and includes (i) all investments, dispositions and loan repayments made to date, (ii) no new investments, dispositions, new loans or loan repayments, (iii) no new debt incurrences or new equity issuances, and (iv) estimated 2.5% CPI-based rent escalators under CareTrust's long-term net leases.
Expand
Non-GAAP Financial Measures
EBITDA attributable to CareTrust REIT, Inc. represents net income (loss) attributable to CareTrust REIT, Inc. before interest expense (including amortization of deferred financing costs), income tax expense, amortization of stock-based compensation, and depreciation and amortization. Normalized EBITDA attributable to CareTrust REIT, Inc. represents EBITDA attributable to CareTrust REIT, Inc. as further adjusted to eliminate the impact of certain items that the Company does not consider indicative of core operating performance, such as recovery of previously reversed rent, lease termination revenue, property operating expenses, gains or losses on foreign currency transactions, gains or losses from dispositions of real estate, real estate impairment charges, provision for loan losses, non-routine transaction costs, loss on extinguishment of debt, write-off of deferred financing costs, unrealized gains or losses on other real estate related investments and provision for doubtful accounts and lease restructuring, as applicable. EBITDA attributable to CareTrust REIT, Inc. and Normalized EBITDA attributable to CareTrust REIT, Inc. do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating the Company's liquidity or operating performance. EBITDA attributable to CareTrust REIT, Inc. and Normalized EBITDA attributable to CareTrust REIT, Inc. do not purport to be indicative of cash available to fund future cash requirements, including the Company's ability to fund capital expenditures or make payments on its indebtedness. Further, the Company's computation of EBITDA and Normalized EBITDA may not be comparable to EBITDA and Normalized EBITDA reported by other REITs.
Funds from Operations ('FFO'), as defined by the National Association of Real Estate Investment Trusts ('Nareit'), and Funds Available for Distribution ('FAD') are important non-GAAP supplemental measures of operating performance for a REIT. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation except on land, such accounting presentation implies that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a REIT that uses historical cost accounting for depreciation could be less informative. Thus, Nareit created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation and amortization, among other items, from net income, as defined by GAAP.
FFO is defined by Nareit as net income computed in accordance with GAAP, excluding gains or losses from dispositions of real estate investments, real estate related depreciation and amortization and real estate impairment charges, adjustments for the share of consolidated joint ventures, and adjustments for unconsolidated partnerships and joint ventures. Noncontrolling interests' pro rata share information is prepared by applying noncontrolling interests' actual ownership percentage for the period and is intended to reflect noncontrolling interests' proportionate economic interest in the financial position and operating results of properties in our portfolio. The Company computes FFO attributable to CareTrust REIT, Inc. in accordance with Nareit's definition.
FAD attributable to CareTrust REIT, Inc. is defined as FFO attributable to CareTrust REIT, Inc. excluding noncash income and expenses, such as amortization of stock-based compensation, amortization of deferred financing fees, amortization of above and below market intangibles, amortization of lease incentives, the effects of straight-line rent, adjustments for the share of consolidated joint ventures and non-cash interest income. The Company considers FAD attributable to CareTrust REIT, Inc. to be a useful supplemental measure to evaluate the Company's operating results excluding these income and expense items to help investors, analysts and other interested parties compare the operating performance of the Company between periods or as compared to other companies on a more consistent basis.
In addition, the Company reports Normalized FFO attributable to CareTrust REIT, Inc. and Normalized FAD attributable to CareTrust REIT, Inc., which adjust FFO and FAD for certain revenue and expense items that the Company does not believe are indicative of its ongoing operating results, such as write-off of deferred financing costs, provision for loan losses, non-routine transaction costs, provision for doubtful accounts and lease restructuring, loss on extinguishment of debt, extraordinary incentive plan payment, unrealized gains or losses on other real estate related investments, gains or losses on foreign currency transactions, recovery of previously reversed rent, lease termination revenue and property operating expenses. By excluding these items, investors, analysts and our management can compare Normalized FFO and Normalized FAD between periods more consistently.
While FFO, Normalized FFO, FAD and Normalized FAD are relevant and widely-used measures of operating performance among REITs, they do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating the Company's liquidity or operating performance. FFO, Normalized FFO, FAD and Normalized FAD do not purport to be indicative of cash available to fund future cash requirements.
Further, the Company's computation of FFO, Normalized FFO, FAD and Normalized FAD may not be comparable to FFO, Normalized FFO, FAD and Normalized FAD reported by other REITs that do not define FFO in accordance with the current Nareit definition or that interpret the current Nareit definition or define FAD differently than the Company does.
The Company also discloses Net Debt to Annualized Normalized Run Rate EBITDA, which compares the Company's Net Debt as of the last day of the quarter to the Annualized Run Rate EBITDA attributable to CareTrust REIT, Inc. for the quarter. Net Debt is defined as the Company's Total Debt as of the last day of the specified quarter adjusted to exclude the Company's cash, cash equivalents, restricted cash and escrow deposits on acquisition of real estate as of such date as well as the net proceeds from the expected settlement of shares sold under equity forward contracts through the Company's ATM Program that are outstanding as of such date. Normalized Run Rate EBITDA represents Normalized EBITDA, adjusted to give effect to the investments completed during the three months ended for the respective period as though such investments were completed as of the beginning of the period. Annualized Normalized Run Rate EBITDA is calculated as Normalized Run Rate EBITDA attributable to CareTrust REIT, Inc. for the specified quarter multiplied by four.
The Company believes that net income attributable to CareTrust REIT, Inc., as defined by GAAP, is the most appropriate earnings measure. The Company also believes that the use of EBITDA, Normalized EBITDA, FFO, Normalized FFO, FAD and Normalized FAD, combined with the required GAAP presentations, improves the understanding of operating results of REITs among investors and makes comparisons of operating results among such companies more meaningful. The Company considers EBITDA and Normalized EBITDA, in each case attributable to CareTrust REIT, Inc., useful in understanding the Company's operating results independent of its capital structure, indebtedness and other charges that are not indicative of its ongoing results, thereby allowing for a more meaningful comparison of operating performance between periods and against other REITs. The Company considers FFO, Normalized FFO, FAD and Normalized FAD, in each case attributable to CareTrust REIT, Inc., to be useful measures for reviewing comparative operating and financial performance because, by excluding gains or losses from real estate dispositions, impairment charges and real estate related depreciation and amortization, and, for FAD and Normalized FAD, by excluding noncash income and expenses such as amortization of stock-based compensation, amortization of deferred financing fees, and the effects of straight-line rent, FFO, Normalized FFO, FAD and Normalized FAD can help investors compare the Company's operating performance between periods and to other REITs. The Company believes that the disclosure of Net Debt to Annualized Normalized Run Rate EBITDA provides a useful measure to investors to evaluate the credit strength of the Company and its ability to service its debt obligations and to compare the Company's credit strength to prior reporting periods and to other companies without the effect of charges that are not indicative of the Company's ongoing performance or that could obscure the Company's actual credit quality and after considering the effect of investments occurring during the period.
For the quarter, CareTrust REIT reported:
Investments of $1.1 billion at an estimated stabilized yield of 8.4%, including the acquisition of Care REIT plc;
Upsized the credit facility to include a $500 million, 5-year term loan;
12.1 million shares sold under its ATM Program for gross proceeds of $353.9 million;
Investment grade rating by Fitch;
99.7% of contractual rent and interest collected;
Net income of $68.5 million and net income per share of $0.35;
Net Debt to Annualized Normalized Run Rate EBITDA of 2.0x;
Normalized FFO of $83.1 million and normalized FFO per share of $0.43;
Normalized FAD of $83.1 million and normalized FAD per share of $0.43; and
A quarterly dividend of $0.335 per share, representing a payout ratio of approximately 78% on normalized FAD.
Since quarter end, CareTrust REIT reports:
Closing of investments totaling approximately $29.4 million at an estimated stabilized yield of 9%;
Pay off of the secured notes payable and secured revolving credit facilities assumed in the Care REIT acquisition;
Cash on hand of approximately $65 million; and
Investment pipeline of approximately $600 million.
CareTrust's President and Chief Executive Officer, Dave Sedgwick, commented, 'Over the last 18 months we have invested more than the prior eight years combined, deploying roughly $2.7 billion of capital into growth opportunities. In May, we closed on the strategic acquisition of Care REIT that marked our entry into the UK care home market. Determined to maintain momentum in the wake of that transaction, we invested an additional $220 million in the second quarter and since, bringing our total investments year-to-date to approximately $1.2 billion. These investments have broadened our operator bench and diversified our asset mix, payor base and geographic reach -- all while we maintained low leverage, improved our credit capacity to support future expansion and reloaded our pipeline.' Mr. Sedgwick continued, 'To ensure the flywheel continues to rip, we have invested throughout the organization by selectively adding talent in tax, finance, investments and asset management, integrating a team of London-based professionals, and deepening operator relationships. All of these moves together are not only producing meaningful FFO per share growth but are also setting the table for strong performance for years to come.'
Financial Results for Quarter Ended June 30, 2025
Chief Financial Officer, Bill Wagner, reported that, for the second quarter, CareTrust reported net income of $68.5 million, or $0.35 per diluted weighted-average common share, normalized FFO of $83.1 million, or $0.43 per diluted weighted-average common share, and normalized FAD of $83.1 million, or $0.43 per diluted weighted-average common share.
Liquidity
As of quarter end, CareTrust reported net debt-to-annualized normalized run rate EBITDA of 2.0x, which is below the Company's target leverage range of 4.0x to 5.0x, and a net debt-to-enterprise value of approximately 12.3%. Mr. Wagner stated that, as of today, the Company has $65.0 million in borrowings outstanding on its $1.2 billion revolving credit line, with no scheduled debt maturities prior to 2028. He also disclosed that CareTrust currently has approximately $65 million in cash on hand. During the second quarter of 2025, the Company sold 12.1 million shares under its ATM Program at a weighted average sales price of $29.36 per share for gross proceeds of $353.9 million. As of June 30, 2025, the Company had $380.1 million available for future issuances under the ATM Program. 'We have plenty of available capital under both our ATM Program and revolving credit line which will allow us to fund a replenishing pipeline of accretive investment opportunities,' said Mr. Wagner.
Increased Guidance
The Company increased guidance for 2025, with Mr. Wagner projecting on a per-diluted weighted-average common share basis net income of approximately $1.43 to $1.45, normalized FFO of approximately $1.77 to $1.79, and normalized FAD of approximately $1.77 to $1.79. He noted that the 2025 guidance is based on a diluted weighted-average common share count of 195.3 million shares, and assumes the following:
All investments year-to-date;
No new investments;
Dispositions made to date;
Loan repayments made to date;
No new dispositions;
No new debt incurrences or new equity issuances; and
Estimated 2.5% CPI-based rent escalators under CareTrust's long-term net leases.
Dividend Maintained
During the quarter, CareTrust declared a quarterly dividend of $0.335 per common share. On an annualized basis, the payout ratio was approximately 78% based on second quarter 2025 normalized FFO, and 78% based on second quarter 2025 normalized FAD.
Conference Call
A conference call will be held on Thursday, August 7, 2025, at 1:00 p.m. Eastern Time (10:00 a.m. Pacific Time), during which CareTrust's management will discuss second quarter 2025 results, recent developments and other matters. The toll-free dial-in number is 1 (800) 715-9871 or toll dial-in number is 1 (646) 307-1963 and the conference ID number is 2243604. To listen to the call online, or to view any financial or other statistical information required by SEC Regulation G, please visit the Investors section of the CareTrust REIT website at http://investor.caretrustreit.com. This call will be recorded, and will be available for replay via the website for 30 days following the call.
About CareTrust TM
CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a portfolio of long-term net-leased properties spanning the United States and United Kingdom, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States and internationally. More information about CareTrust REIT is available at www.caretrustreit.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This press release contains, and the related conference call will include, 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 Company's intent, belief or expectations, including, but not limited to, 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; operating and financial performance; expectations regarding the making of distributions and payment of dividends; and the performance of the Company's tenants and operators and their respective facilities.
Words such as 'anticipate,' 'believe,' 'could,' 'expect,' 'estimate,' 'intend,' 'may,' 'plan,' 'seek,' 'should,' 'will,' 'would,' and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements, though not all forward-looking statements contain these identifying words. The Company's forward-looking statements are based on management's current expectations and beliefs, and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although the Company believes that the assumptions underlying these forward-looking statements are reasonable, they are not guarantees and the Company can give no assurance that its expectations will be attained. Factors which could have a material adverse effect on the Company's operations and future prospects or which could cause actual results to differ materially from expectations include, but are not limited to: (i) the ability and willingness of our tenants and borrowers to meet and/or perform their obligations under the agreements we have entered into with them, including without limitation, their respective obligations to indemnify, defend and hold us harmless from and against various claims, litigation and liabilities; (ii) the risk that we may have to incur additional impairment charges related to our assets held for sale if we are unable to sell such assets at the prices we expect; (iii) the impact of healthcare reform legislation, including potential minimum staffing level requirements, on the operating results and financial conditions of our tenants and borrowers; (iv) the ability of our tenants and borrowers to comply with applicable laws, rules and regulations in the operation of the properties we lease to them or finance; (v) the intended benefits of our acquisition of Care REIT plc ('Care REIT') may not be realized, and we will be subject to additional risks from our investment in Care REIT and any other international investments; (vi) the ability and willingness of our tenants to renew their leases with us upon their expiration, and the ability to reposition our properties on the same or better terms in the event of nonrenewal or in the event we replace an existing tenant, as well as any obligations, including indemnification obligations, we may incur in connection with the replacement of an existing tenant; (vii) the availability of and the ability to identify (a) tenants who meet our credit and operating standards, and (b) suitable acquisition opportunities and the ability to acquire and lease the respective properties to such tenants on favorable terms; (viii) the ability to generate sufficient cash flows to service our outstanding indebtedness; (ix) access to debt and equity capital markets; (x) fluctuating interest and currency rates; (xi) the impact of public health crises, including significant COVID-19 outbreaks as well as other pandemics or epidemics; (xii) the ability to retain our key management personnel; (xiii) the ability to maintain our status as a real estate investment trust ('REIT'); (xiv) changes in the U.S. tax law and other state, federal or local laws, whether or not specific to REITs; (xv) other risks inherent in the real estate business, including potential liability relating to environmental matters and illiquidity of real estate investments; and (xvi) any additional factors included in our Annual Report on Form 10-K for the year ended December 31, 2024, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, including in the sections entitled 'Risk Factors' in Item 1A of such reports, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the SEC.
This press release and the related conference call provides information about the Company's financial results as of and for the quarter ended June 30, 2025 and is provided as of the date hereof, unless specifically stated otherwise. The Company expressly disclaims any obligation to update or revise any information in this press release or the related conference call (and replays thereof), including forward-looking statements, whether to reflect any change in the Company's expectations, any change in events, conditions or circumstances, or otherwise.
As used in this press release or the related conference call, unless the context requires otherwise, references to 'CTRE,' ' CareTrust, ' 'CareTrust REIT' or the 'Company' refer to CareTrust REIT, Inc. and its consolidated subsidiaries. GAAP refers to generally accepted accounting principles in the United States of America.
CARETRUST REIT, INC.
(in thousands)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
Net income attributable to CareTrust REIT, Inc.
$
68,545
$
10,758
$
134,347
$
39,504
Depreciation and amortization
21,215
13,860
39,056
27,308
Noncontrolling interests' share of real estate related depreciation and amortization
(2,513
)
—
(4,736
)
—
Interest expense [1]
13,038
8,222
19,707
16,450
Income tax expense
1,030
—
1,030
—
Amortization of stock-based compensation
1,945
1,406
5,038
3,526
Amortization of stock-based compensation related to extraordinary incentive plan
1,081
—
1,897
—
EBITDA attributable to CareTrust REIT, Inc.
104,341
34,246
196,339
86,788
Impairment of real estate investments
—
25,711
—
28,455
Gain on foreign currency transaction
(4,413
)
—
(4,413
)
—
Property operating expenses
1,090
361
985
1,333
Gain on sale of real estate, net
—
(21
)
(3,876
)
(32
)
Non-routine transaction costs
61
—
949
—
Unrealized (gain) loss on other real estate related investments, net
(1,968
)
1,877
(3,255
)
2,489
Normalized EBITDA attributable to CareTrust REIT, Inc.
99,111
62,174
$
186,729
$
119,033
Full impact of quarterly investments [2]
10,126
3,188
Normalized Run Rate EBITDA attributable to CareTrust REIT, Inc.
$
109,237
$
65,362
(in thousands)
(Unaudited)
Three Months Ended
June 30,
2025
2024
Total debt [1]
$
1,161,990
$
600,000
Cash, cash equivalents, restricted cash and escrow deposits on acquisitions of real estate
(306,051
)
(495,134
)
Net Debt
$
855,939
$
104,866
Annualized Normalized Run Rate EBITDA attributable to CareTrust REIT, Inc. [3]
$
436,948
$
261,448
Net Debt to Annualized Normalized Run Rate EBITDA attributable to CareTrust REIT, Inc.
2.0x
0.4x
[1] Interest expense and Total debt exclude the effect of the $75.0 million participation interest recorded as a secured borrowing in the consolidated balance sheets.
[2] Quarterly adjustments give effect to the investments completed and loans receivable pay downs during the three months ended for the respective period as though such investments and pay downs were completed as of the beginning of the period.
[3] Annualized Normalized Run Rate EBITDA is calculated as Normalized Run Rate EBITDA attributable to CareTrust REIT, Inc. for the quarter multiplied by four (4).
(in thousands)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
Net income attributable to CareTrust REIT, Inc.
$
68,545
$
10,758
$
134,347
$
39,504
Real estate related depreciation and amortization
21,208
13,853
39,041
27,295
Noncontrolling interests' share of real estate related depreciation and amortization
(2,513
)
—
(4,736
)
—
Impairment of real estate investments
—
25,711
—
28,455
Gain on sale of real estate, net
—
(21
)
(3,876
)
(32
)
Funds from Operations (FFO) attributable to CareTrust REIT, Inc.
87,240
50,301
164,776
95,222
Gain on foreign currency transaction
(4,413
)
—
(4,413
)
—
Property operating expenses
1,090
361
985
1,333
Non-routine transaction costs
61
—
949
—
Amortization of stock-based compensation related to extraordinary incentive plan
1,081
—
1,897
—
Unrealized (gain) loss on other real estate related investments, net
(1,968
)
1,877
(3,255
)
2,489
Normalized FFO attributable to CareTrust REIT, Inc.
$
83,091
$
52,539
$
160,939
$
99,044
Expand
CARETRUST REIT, INC.
(in thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
Net income attributable to CareTrust REIT, Inc.
$
68,545
$
10,758
$
134,347
$
39,504
Real estate related depreciation and amortization
21,208
13,853
39,041
27,295
Noncontrolling interests' share of real estate related depreciation and amortization
(2,513
)
—
(4,736
)
—
Amortization of deferred financing fees
984
614
1,898
1,228
Amortization of stock-based compensation
1,945
1,406
5,038
3,526
Amortization of stock-based compensation related to extraordinary incentive plan
1,081
—
1,897
—
Straight-line rental income
(1,760
)
7
(1,753
)
14
Amortization of lease incentives
48
4
96
4
Noncontrolling interests' share of amortization of lease incentives
(24
)
—
(48
)
—
Amortization of above and below market leases
(972
)
(575
)
(1,898
)
(1,150
)
Noncontrolling interests' share of amortization of below market leases
463
—
926
—
Non-cash interest income
(703
)
—
(1,326
)
—
Impairment of real estate investments
—
25,711
—
28,455
Gain on sale of real estate, net
—
(21
)
(3,876
)
(32
)
Funds Available for Distribution (FAD) attributable to CareTrust REIT, Inc.
88,302
51,757
169,606
98,844
Gain on foreign currency transaction
(4,413
)
—
(4,413
)
—
Property operating expenses
1,090
361
985
1,333
Non-routine transaction costs
61
—
949
—
Unrealized (gain) loss on other real estate related investments, net
(1,968
)
1,877
(3,255
)
2,489
Normalized FAD attributable to CareTrust REIT, Inc.
$
83,072
$
53,995
$
163,872
$
102,666
FFO per share attributable to CareTrust REIT, Inc.
$
0.45
$
0.35
$
0.87
$
0.68
Normalized FFO per share attributable to CareTrust REIT, Inc.
$
0.43
$
0.36
$
0.85
$
0.71
FAD per share attributable to CareTrust REIT, Inc.
$
0.46
$
0.36
$
0.89
$
0.71
Normalized FAD per share attributable to CareTrust REIT, Inc.
$
0.43
$
0.37
$
0.86
$
0.74
[1] For the periods presented, the diluted weighted average shares have been calculated using the treasury stock method.
Expand
CARETRUST REIT, INC.
(in thousands, except per share data)
(Unaudited)
Quarter
Quarter
Quarter
Quarter
Quarter
June 30,
2024
September 30,
2024
December 31,
2024
March 31,
2025
June 30,
2025
Revenues:
Rental income
$
55,407
$
57,153
$
62,199
$
71,646
$
86,033
Interest income from financing receivable
—
—
1,009
2,807
2,886
Interest income from other real estate related investments and other income
13,484
20,228
23,736
22,168
23,550
Total revenues
68,891
77,381
86,944
96,621
112,469
Expenses:
Depreciation and amortization
13,860
14,009
15,514
17,841
21,215
Interest expense
8,679
8,281
5,122
6,669
13,038
Property taxes and insurance
1,976
2,115
1,946
2,065
2,117
Impairment of real estate investments
25,711
8,417
5,353
—
—
Transaction costs
—
—
1,326
888
61
Provision for loan losses
—
—
4,900
—
—
Property operating expenses
255
3,477
1,322
105
938
General and administrative
6,136
6,663
9,286
9,023
12,549
Total expenses
56,617
42,962
44,769
36,591
49,918
Other (loss) income:
Loss on extinguishment of debt
—
(657
)
—
—
—
Gain (loss) on sale of real estate, net
21
(2,286
)
46
3,876
—
Unrealized (loss) gain on other real estate related investments, net
(1,877
)
1,800
9,734
1,287
1,968
Gain on foreign currency transaction
—
—
—
—
4,413
Total other (loss) income
(1,856
)
(1,143
)
9,780
5,163
6,381
Income before income tax expense
10,418
33,276
51,955
65,193
68,932
Income tax expense
—
—
—
—
(1,030
)
Net income
10,418
33,276
51,955
65,193
67,902
Net loss attributable to noncontrolling interests
(340
)
(165
)
(180
)
(609
)
(643
)
Net income attributable to CareTrust REIT, Inc.
$
10,758
$
33,441
$
52,135
$
65,802
$
68,545
Expand
CARETRUST REIT, INC.
(in thousands)
(Unaudited)
Quarter
Quarter
Quarter
Quarter
Quarter
June 30,
2024
September 30,
2024
December 31,
2024
March 31,
2025
June 30,
2025
Net income attributable to CareTrust REIT, Inc.
$
10,758
$
33,441
$
52,135
$
65,802
$
68,545
Depreciation and amortization
13,860
14,009
15,514
17,841
21,215
Noncontrolling interests' share of real estate related depreciation and amortization
—
—
(837
)
(2,223
)
(2,513
)
Interest expense
8,222
7,807
4,768
6,669
13,038
Income tax expense
—
—
—
—
1,030
Amortization of stock-based compensation
1,406
1,143
1,461
3,093
1,945
Amortization of stock-based compensation related to extraordinary incentive plan
—
—
—
816
1,081
EBITDA attributable to CareTrust REIT, Inc.
34,246
56,400
73,041
91,998
104,341
Write-off of deferred financing costs
—
—
354
—
—
Impairment of real estate investments
25,711
8,417
5,353
—
—
Gain on foreign currency transaction
—
—
—
—
(4,413
)
Provision for loan losses
—
—
4,900
—
—
Property operating expenses (recovery)
361
3,893
1,665
(105
)
1,090
(Gain) loss on sale of real estate, net
(21
)
2,286
(46
)
(3,876
)
—
Loss on extinguishment of debt
—
657
—
—
—
Non-routine transaction costs
—
—
1,326
888
61
Extraordinary incentive plan payment
—
—
2,313
—
—
Unrealized loss (gain) on other real estate related investments, net
1,877
(1,800
)
(9,734
)
(1,287
)
(1,968
)
Normalized EBITDA attributable to CareTrust REIT, Inc.
$
62,174
$
69,853
$
79,172
$
87,618
$
99,111
Net income attributable to CareTrust REIT, Inc.
$
10,758
$
33,441
$
52,135
$
65,802
$
68,545
Real estate related depreciation and amortization
13,853
14,002
15,507
17,833
21,208
Noncontrolling interests' share of real estate related depreciation and amortization
—
—
(837
)
(2,223
)
(2,513
)
Impairment of real estate investments
25,711
8,417
5,353
—
—
(Gain) loss on sale of real estate, net
(21
)
2,286
(46
)
(3,876
)
—
Funds from Operations (FFO) attributable to CareTrust REIT, Inc.
50,301
58,146
72,112
77,536
87,240
Write-off of deferred financing costs
—
—
354
—
—
Gain on foreign currency transaction
—
—
—
—
(4,413
)
Provision for loan losses
—
—
4,900
—
—
Property operating expenses (recovery)
361
3,893
1,665
(105
)
1,090
Non-routine transaction costs
—
—
1,326
888
61
Loss on extinguishment of debt
—
657
—
—
—
Amortization of stock-based compensation related to extraordinary incentive plan
—
—
—
816
1,081
Extraordinary incentive plan payment
—
—
2,313
—
—
Unrealized loss (gain) on other real estate related investments, net
1,877
(1,800
)
(9,734
)
(1,287
)
(1,968
)
Normalized FFO attributable to CareTrust REIT, Inc.
$
52,539
$
60,896
$
72,936
$
77,848
$
83,091
Expand
CARETRUST REIT, INC.
(in thousands, except per share data)
(Unaudited)
Quarter
Quarter
Quarter
Quarter
Quarter
June 30,
2024
September 30,
2024
December 31,
2024
March 31,
2025
June 30,
2025
Net income attributable to CareTrust REIT, Inc.
$
10,758
$
33,441
$
52,135
$
65,802
$
68,545
Real estate related depreciation and amortization
13,853
14,002
15,507
17,833
21,208
Noncontrolling interests' share of real estate related depreciation and amortization
—
—
(837
)
(2,223
)
(2,513
)
Amortization of deferred financing fees
614
614
619
914
984
Amortization of stock-based compensation
1,406
1,143
1,461
3,093
1,945
Amortization of stock-based compensation related to extraordinary incentive plan
—
—
—
816
1,081
Straight-line rental income
7
7
7
7
(1,760
)
Amortization of lease incentives
4
5
13
48
48
Noncontrolling interests' share of amortization of lease incentives
—
—
(6
)
(24
)
(24
)
Amortization of above and below market leases
(575
)
(809
)
(926
)
(926
)
(972
)
Noncontrolling interests' share of amortization of below market leases
—
—
463
463
463
Non-cash interest income
—
—
(281
)
(623
)
(703
)
Impairment of real estate investments
25,711
8,417
5,353
—
—
(Gain) loss on sale of real estate, net
(21
)
2,286
(46
)
(3,876
)
—
Funds Available for Distribution (FAD) attributable to CareTrust REIT, Inc.
51,757
59,106
73,462
81,304
88,302
Write-off of deferred financing costs
—
—
354
—
—
Gain on foreign currency transaction
—
—
—
—
(4,413
)
Provision for loan losses
—
—
4,900
—
—
Property operating expenses (recovery)
361
3,893
1,665
(105
)
1,090
Non-routine transaction costs
—
—
1,326
888
61
Loss on extinguishment of debt
—
657
—
—
—
Extraordinary incentive plan payment
—
—
2,313
—
—
Unrealized loss (gain) on other real estate related investments, net
1,877
(1,800
)
(9,734
)
(1,287
)
(1,968
)
Normalized FAD attributable to CareTrust REIT, Inc.
$
53,995
$
61,856
$
74,286
$
80,800
$
83,072
FFO per share attributable to CareTrust REIT, Inc.
$
0.35
$
0.36
$
0.40
$
0.41
$
0.45
Normalized FFO per share attributable to CareTrust REIT, Inc.
$
0.36
$
0.38
$
0.40
$
0.42
$
0.43
FAD per share attributable to CareTrust REIT, Inc.
$
0.36
$
0.37
$
0.40
$
0.43
$
0.46
Normalized FAD per share attributable to CareTrust REIT, Inc.
$
0.37
$
0.39
$
0.41
$
0.43
$
0.43
Diluted weighted average shares outstanding [1]
145,380
160,025
182,222
187,574
193,055
[1] For the periods presented, the diluted weighted average shares have been calculated using the treasury stock method.
Expand
CARETRUST REIT, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
June 30, 2025
December 31, 2024
Assets:
Real estate investments, net
$
3,256,024
$
2,226,740
Financing receivable, at fair value (including accrued interest of $1,607 and $281 as of June 30, 2025 and December 31, 2024, respectively)
97,330
96,004
Other real estate related investments (including accrued interest of $4,980 and $4,725 as of June 30, 2025 and December 31, 2024, respectively)
840,900
795,203
Assets held for sale, net
55,166
57,261
Cash and cash equivalents
306,051
213,822
Accounts and other receivables
2,687
1,174
Prepaid expenses and other assets, net
88,415
35,608
Deferred financing costs, net
9,958
11,204
Total assets
$
4,656,531
$
3,437,016
Liabilities and Equity:
Senior unsecured notes payable, net
$
397,371
$
396,927
Senior unsecured term loan, net
496,019
—
Secured notes payable
103,005
—
Secured revolving credit facilities
158,985
—
Accounts payable, accrued liabilities and deferred rent liabilities
109,073
56,318
Dividends payable
67,101
54,388
Total liabilities
1,331,554
507,633
Redeemable noncontrolling interests
20,934
18,243
Equity:
Common stock
1,997
1,870
Additional paid-in capital
3,807,882
3,439,117
Cumulative distributions in excess of earnings
(528,376
)
(532,570
)
Accumulated other comprehensive income
19,029
—
Total stockholders' equity
3,300,532
2,908,417
Noncontrolling interests
3,511
2,723
Total equity
3,304,043
2,911,140
Total liabilities and equity
$
4,656,531
$
3,437,016
Expand
CARETRUST REIT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
For the Six Months Ended June 30,
2025
2024
Cash flows from operating activities:
Net income
$
133,095
$
39,168
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including below-market ground leases)
39,122
27,337
Amortization of deferred financing costs
1,898
1,228
Unrealized (gain) loss on other real estate related investments, net
(3,255
)
2,489
Amortization of stock-based compensation
6,935
3,526
Straight-line rental income
(1,753
)
14
Amortization of lease incentives
97
4
Amortization of above and below market leases
(1,899
)
(1,150
)
Noncash interest income
(1,581
)
(1,813
)
Gain on sale of real estate, net
(3,876
)
(32
)
Impairment of real estate investments
—
28,455
Change in operating assets and liabilities:
Accounts and other receivables
573
(719
)
Prepaid expenses and other assets, net
(459
)
(983
)
Accounts payable, accrued liabilities and deferred rent liabilities
3,260
4,271
Net cash provided by operating activities
172,157
101,795
Cash flows from investing activities:
Acquisitions of real estate, net of deposits applied
(820,046
)
(204,554
)
Purchases of equipment, furniture and fixtures and improvements to real estate
(6,783
)
(1,323
)
Investment in real estate related investments and other loans receivable
(21,715
)
(244,825
)
Preferred equity investments
(30,000
)
(9,000
)
Principal payments received on real estate related investments and other loans receivable
9,857
—
Escrow deposits for potential acquisitions of real estate
(1,020
)
(9,075
)
Net proceeds from sales of real estate
44,401
140
Net cash used in investing activities
(825,306
)
(468,637
)
Cash flows from financing activities:
Proceeds from the issuance of common stock, net
365,282
572,236
Proceeds from the issuance of senior unsecured term loan
500,000
—
Proceeds from the secured borrowing
—
75,000
Borrowings under unsecured revolving credit facility
525,000
—
Payments on unsecured revolving credit facility
(525,000
)
—
Payments of deferred financing costs
(4,189
)
(24
)
Net-settle adjustment on restricted stock
(3,325
)
(2,483
)
Dividends paid on common stock
(117,440
)
(77,723
)
Contributions from noncontrolling interests
6,888
576
Distributions to noncontrolling interests
(2,157
)
(54
)
Net cash provided by financing activities
745,059
567,528
Effect of foreign currency translation
319
—
Net increase in cash and cash equivalents
92,229
200,686
Cash and cash equivalents as of the beginning of period
213,822
294,448
Cash and cash equivalents as of the end of period
$
306,051
$
495,134
Expand
CARETRUST REIT, INC.
DEBT SUMMARY
(dollars in thousands)
(Unaudited)
June 30, 2025
Fixed Rate Debt
Senior unsecured notes payable
3.875 %
2028
$
400,000
34.4 %
$
(2,629
)
$
397,371
Secured notes payable [1]
3.000 %
2035
50,816
4.4 %
—
50,816
Secured notes payable [1]
2.932 %
2035
52,189
4.5 %
—
52,189
3.689 %
503,005
43.3 %
(2,629
)
500,376
Floating Rate Debt
Senior unsecured term loan
5.427 %
[2]
2030
500,000
43.0 %
(3,981
)
496,019
Unsecured revolving credit facility
— %
[3]
2029
[4]
—
— %
—
[5]
—
Secured revolving credit facility [1]
6.217 %
2029
64,550
5.6 %
—
64,550
Secured revolving credit facility [1]
6.217 %
2026
62,160
5.3 %
—
62,160
Secured revolving credit facility [1]
6.217 %
2029
32,275
2.8 %
—
32,275
5.617 %
658,985
56.7 %
(3,981
)
655,004
[1] Secured notes payable and secured revolving credit facilities were fully paid off subsequent to June 30, 2025.
[2] Funds can be borrowed at applicable SOFR plus 1.10% to 1.80% or at the Base Rate (as defined) plus 0.10% to 0.80%. The Company has entered into two interest rate swaps, with a notional amount of $250 million each, that convert the variable SOFR rate to an effective fixed interest rate of 3.5%.
[3] Funds can be borrowed at applicable SOFR plus 1.05% to 1.55% or at the Base Rate (as defined) plus 0.05% to 0.55%.
[4] Maturity date does not assume exercise of two 6-month extension options.
[5] Deferred financing fees are not shown net for the unsecured revolving credit facility and are included in assets on the balance sheet.
Expand
CARETRUST REIT, INC.
(shares in thousands)
(Unaudited)
2025 Guidance Increased
Full Year 2025 Guidance [1]
Low
High
Net income attributable to CareTrust REIT, Inc.
$
1.43
$
1.45
Real estate related depreciation and amortization
0.42
0.42
Noncontrolling interests' share of real estate related depreciation and amortization
(0.05
)
(0.05
)
(Gain) loss on sale of real estate
(0.02
)
(0.02
)
Funds from Operations (FFO) attributable to CareTrust REIT, Inc.
1.78
1.80
Property operating expenses
0.01
0.01
Amortization of extraordinary stock grants
0.02
0.02
Non-routine transaction costs
—
—
Gain on foreign currency transaction
(0.02
)
(0.02
)
Unrealized (gain) loss on other real estate related investments, net
(0.02
)
(0.02
)
Normalized FFO attributable to CareTrust REIT, Inc.
$
1.77
$
1.79
Net income attributable to CareTrust REIT, Inc.
$
1.43
$
1.45
Real estate related depreciation and amortization
0.42
0.42
Noncontrolling interests' share of real estate related depreciation and amortization
(0.05
)
(0.05
)
Amortization of deferred financing fees
0.02
0.02
Amortization of stock-based compensation
0.04
0.04
Amortization of extraordinary stock grants
0.02
0.02
Straight-line rental income
(0.04
)
(0.04
)
Amortization of above and below market leases
(0.01
)
(0.01
)
Noncontrolling interests' share of amortization of below market leases
—
—
Non-cash interest income
(0.01
)
(0.01
)
Amortization of lease incentives
—
—
Noncontrolling interests' share of amortization of lease incentives
—
—
(Gain) loss on sale of real estate
(0.02
)
(0.02
)
Funds Available for Distribution (FAD) attributable to CareTrust REIT, Inc.
1.80
1.82
Property operating expenses
0.01
0.01
Non-routine transaction costs
—
—
Gain on foreign currency transaction
(0.02
)
(0.02
)
Unrealized (gain) loss on other real estate related investments, net
(0.02
)
(0.02
)
Normalized FAD attributable to CareTrust REIT, Inc.
$
1.77
$
1.79
Weighted average shares outstanding:
[1] This guidance assumes and includes (i) all investments, dispositions and loan repayments made to date, (ii) no new investments, dispositions, new loans or loan repayments, (iii) no new debt incurrences or new equity issuances, and (iv) estimated 2.5% CPI-based rent escalators under CareTrust's long-term net leases.
Expand
Non-GAAP Financial Measures
EBITDA attributable to CareTrust REIT, Inc. represents net income (loss) attributable to CareTrust REIT, Inc. before interest expense (including amortization of deferred financing costs), income tax expense, amortization of stock-based compensation, and depreciation and amortization. Normalized EBITDA attributable to CareTrust REIT, Inc. represents EBITDA attributable to CareTrust REIT, Inc. as further adjusted to eliminate the impact of certain items that the Company does not consider indicative of core operating performance, such as recovery of previously reversed rent, lease termination revenue, property operating expenses, gains or losses on foreign currency transactions, gains or losses from dispositions of real estate, real estate impairment charges, provision for loan losses, non-routine transaction costs, loss on extinguishment of debt, write-off of deferred financing costs, unrealized gains or losses on other real estate related investments and provision for doubtful accounts and lease restructuring, as applicable. EBITDA attributable to CareTrust REIT, Inc. and Normalized EBITDA attributable to CareTrust REIT, Inc. do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating the Company's liquidity or operating performance. EBITDA attributable to CareTrust REIT, Inc. and Normalized EBITDA attributable to CareTrust REIT, Inc. do not purport to be indicative of cash available to fund future cash requirements, including the Company's ability to fund capital expenditures or make payments on its indebtedness. Further, the Company's computation of EBITDA and Normalized EBITDA may not be comparable to EBITDA and Normalized EBITDA reported by other REITs.
Funds from Operations ('FFO'), as defined by the National Association of Real Estate Investment Trusts ('Nareit'), and Funds Available for Distribution ('FAD') are important non-GAAP supplemental measures of operating performance for a REIT. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation except on land, such accounting presentation implies that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a REIT that uses historical cost accounting for depreciation could be less informative. Thus, Nareit created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation and amortization, among other items, from net income, as defined by GAAP.
FFO is defined by Nareit as net income computed in accordance with GAAP, excluding gains or losses from dispositions of real estate investments, real estate related depreciation and amortization and real estate impairment charges, adjustments for the share of consolidated joint ventures, and adjustments for unconsolidated partnerships and joint ventures. Noncontrolling interests' pro rata share information is prepared by applying noncontrolling interests' actual ownership percentage for the period and is intended to reflect noncontrolling interests' proportionate economic interest in the financial position and operating results of properties in our portfolio. The Company computes FFO attributable to CareTrust REIT, Inc. in accordance with Nareit's definition.
FAD attributable to CareTrust REIT, Inc. is defined as FFO attributable to CareTrust REIT, Inc. excluding noncash income and expenses, such as amortization of stock-based compensation, amortization of deferred financing fees, amortization of above and below market intangibles, amortization of lease incentives, the effects of straight-line rent, adjustments for the share of consolidated joint ventures and non-cash interest income. The Company considers FAD attributable to CareTrust REIT, Inc. to be a useful supplemental measure to evaluate the Company's operating results excluding these income and expense items to help investors, analysts and other interested parties compare the operating performance of the Company between periods or as compared to other companies on a more consistent basis.
In addition, the Company reports Normalized FFO attributable to CareTrust REIT, Inc. and Normalized FAD attributable to CareTrust REIT, Inc., which adjust FFO and FAD for certain revenue and expense items that the Company does not believe are indicative of its ongoing operating results, such as write-off of deferred financing costs, provision for loan losses, non-routine transaction costs, provision for doubtful accounts and lease restructuring, loss on extinguishment of debt, extraordinary incentive plan payment, unrealized gains or losses on other real estate related investments, gains or losses on foreign currency transactions, recovery of previously reversed rent, lease termination revenue and property operating expenses. By excluding these items, investors, analysts and our management can compare Normalized FFO and Normalized FAD between periods more consistently.
While FFO, Normalized FFO, FAD and Normalized FAD are relevant and widely-used measures of operating performance among REITs, they do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating the Company's liquidity or operating performance. FFO, Normalized FFO, FAD and Normalized FAD do not purport to be indicative of cash available to fund future cash requirements.
Further, the Company's computation of FFO, Normalized FFO, FAD and Normalized FAD may not be comparable to FFO, Normalized FFO, FAD and Normalized FAD reported by other REITs that do not define FFO in accordance with the current Nareit definition or that interpret the current Nareit definition or define FAD differently than the Company does.
The Company also discloses Net Debt to Annualized Normalized Run Rate EBITDA, which compares the Company's Net Debt as of the last day of the quarter to the Annualized Run Rate EBITDA attributable to CareTrust REIT, Inc. for the quarter. Net Debt is defined as the Company's Total Debt as of the last day of the specified quarter adjusted to exclude the Company's cash, cash equivalents, restricted cash and escrow deposits on acquisition of real estate as of such date as well as the net proceeds from the expected settlement of shares sold under equity forward contracts through the Company's ATM Program that are outstanding as of such date. Normalized Run Rate EBITDA represents Normalized EBITDA, adjusted to give effect to the investments completed during the three months ended for the respective period as though such investments were completed as of the beginning of the period. Annualized Normalized Run Rate EBITDA is calculated as Normalized Run Rate EBITDA attributable to CareTrust REIT, Inc. for the specified quarter multiplied by four.
The Company believes that net income attributable to CareTrust REIT, Inc., as defined by GAAP, is the most appropriate earnings measure. The Company also believes that the use of EBITDA, Normalized EBITDA, FFO, Normalized FFO, FAD and Normalized FAD, combined with the required GAAP presentations, improves the understanding of operating results of REITs among investors and makes comparisons of operating results among such companies more meaningful. The Company considers EBITDA and Normalized EBITDA, in each case attributable to CareTrust REIT, Inc., useful in understanding the Company's operating results independent of its capital structure, indebtedness and other charges that are not indicative of its ongoing results, thereby allowing for a more meaningful comparison of operating performance between periods and against other REITs. The Company considers FFO, Normalized FFO, FAD and Normalized FAD, in each case attributable to CareTrust REIT, Inc., to be useful measures for reviewing comparative operating and financial performance because, by excluding gains or losses from real estate dispositions, impairment charges and real estate related depreciation and amortization, and, for FAD and Normalized FAD, by excluding noncash income and expenses such as amortization of stock-based compensation, amortization of deferred financing fees, and the effects of straight-line rent, FFO, Normalized FFO, FAD and Normalized FAD can help investors compare the Company's operating performance between periods and to other REITs. The Company believes that the disclosure of Net Debt to Annualized Normalized Run Rate EBITDA provides a useful measure to investors to evaluate the credit strength of the Company and its ability to service its debt obligations and to compare the Company's credit strength to prior reporting periods and to other companies without the effect of charges that are not indicative of the Company's ongoing performance or that could obscure the Company's actual credit quality and after considering the effect of investments occurring during the period.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
4 minutes ago
- Business Wire
Dollar General and Uber Eats Partner to Deliver Household Essentials Nationwide
SAN FRANCISCO--(BUSINESS WIRE)--Uber Technologies, Inc. (NYSE: UBER) and Dollar General Corporation (NYSE: DG) today announced a partnership that will bring more than 14,000 Dollar General and pOpshelf locations to the Uber Eats platform. Starting today and expanding this month, DG and pOpshelf customers can tap to order an expansive mix of affordable essentials, food, and fun, on-trend items delivered straight to their door—on-demand or scheduled—via Uber Eats. 'Our customers will enjoy even greater convenience through our Uber Eats partnership, accessing everything from food to essential household items, saving them valuable time and money,' said Tony Rogers, Dollar General's Chief Marketing Officer. 'Providing communities with affordable, fresh, and accessible food options delivered right to their front door is aligned with our mission of Serving Others.' To celebrate the launch, Uber Eats is offering 40% off Dollar General and pOpshelf orders of $20 or more (up to $10) using the code 40GENERAL †. Uber One members enjoy $0 delivery fees on eligible orders and other exclusive savings ††. 'Retailers today are navigating a rapidly changing landscape—consumers expect convenience, speed, and accessibility like never before,' said Hashim Amin, Head of Grocery & Retail at Uber. 'Through this partnership Dollar General and Uber Eats are meeting those expectations. We're proud to help extend Dollar General's reach into the on-demand economy, and to help retailers like DG serve their customers in more dynamic and flexible ways.' How It Works Getting what you need from Dollar General or pOpshelf on Uber Eats is simple: Open the Uber Eats app and go to the 'Grocery' or 'Convenience' category Search for Dollar General or pOpshelf and explore a wide selection of food, beverages, and essentials Add your items, choose a delivery time, and place your order Track your delivery in real time About Uber Uber's mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 61 billion trips later, we're building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities. † Promo expires on September 30, 2025 at 11:59 PM PDT. Valid for 40% off (up to a maximum of $10) on orders of $20 or more (before taxes, fees, and other promotions) from Dollar General and pOpshelf stores in the Uber Eats app. Available on your next order only. Orders scheduled ahead of time must be delivered before the expiration date to qualify. Valid only for users who received this offer directly from Uber. Taxes and fees still apply. Pickup orders excluded. Terms are subject to change. Other exclusions may apply (e.g., alcohol). †† Taxes and fees may still apply. See app for details.
Business Wire
4 minutes ago
- Business Wire
POTTERY BARN LAUNCHES COLLABORATION WITH ROLLER RABBIT
SAN FRANCISCO--(BUSINESS WIRE)--Pottery Barn, a portfolio brand of Williams-Sonoma, Inc. (NYSE: WSM), the world's largest digital-first, design-led and sustainable home retailer, announced today, a new home collaboration with vibrant fashion and lifestyle brand, Roller Rabbit. Roller Rabbit's new partnership with Pottery Barn builds upon Roller Rabbit's existing popular home furnishing collections with both the Pottery Barn Kids and Pottery Barn Teen brands. The new Roller Rabbit for Pottery Barn collection combines Roller Rabbit's signature motifs, heritage prints and vibrant aesthetic with Pottery Barn's design expertise and commitment to quality. Designed to bring a playful optimism to the home, each piece in the collection celebrates color and comfort and infuses personality throughout the bedding, decorative pillows, rugs, and wallpaper offerings. 'We approached this collection with Roller Rabbit with intention and creativity,' says Monica Bhargava, Pottery Barn President. 'Our teams came together around a shared design vision, and the result is a collection that brings a fresh, expressive point of view into the home, one that feels both joyful and timeless.' 'At Roller Rabbit, we believe in the power of color, joy, and storytelling in every space and we couldn't be more excited to bring that spirit into homes across the country through our collaboration with Pottery Barn,' said Ed Bertouch, CEO of Roller Rabbit. 'Building on the success of our collections with Pottery Barn Kids and Teen, this new partnership allows us to expand our heritage prints and playful sensibility into new rooms of the home, with the quality and design expertise for which Pottery Barn is known.' To explore the collection available now, visit and follow along on social @potterybarn and @rollerrabbitofficial. ABOUT POTTERY BARN Pottery Barn, a member of the Williams-Sonoma, Inc. (NYSE: WSM) portfolio of brands, is a premier specialty retailer for casual, comfortable and stylish home furnishings. The brand is dedicated to beautiful ideas for real life, quality products that are crafted to last, sustainability and service. Key product categories include furniture, bedding, bath, rugs, window treatments, tabletop, lighting and decorative accessories. Nearly all Pottery Barn products are designed in-house and are exclusive to its catalogs, stores and website. Pottery Barn is also part of The Key Rewards, a free-to-join loyalty program that offers members exclusive benefits across the Williams-Sonoma family of brands, the world's largest digital-first, design-led and sustainable home retailer. The company is headquartered in San Francisco, California. ABOUT WILLIAMS-SONOMA. INC. Williams-Sonoma, Inc. is the world's largest digital-first, design-led and sustainable home retailer. The company's brands — Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham, and GreenRow — represent distinct merchandise strategies that are marketed through e-commerce, direct-mail catalogs and retail stores. These brands collectively support The Key Rewards, our loyalty and credit card program that offers members exclusive benefits. We operate in the U.S., Puerto Rico, Canada, Australia and the United Kingdom and have unaffiliated franchisees that operate stores in the Middle East, the Philippines, Mexico, South Korea and India. ABOUT ROLLER RABBIT Roller Rabbit's story is fueled by curiosity and one that finds inspiration in global travel. Best recognized for its vibrant plays on pattern and whimsical motifs, the brand thrives off togetherness and a passion for imperfect fun. The Roller Rabbit story began in India with a piece of discarded fabric. More than a piece of hand block printed cotton, this fabric told the tale of a magical rabbit and its quest for joy. With a mission to outfit vibrant lives through clothing, accessories, and home decor, Roller Rabbit has cultivated a large following of sleepwear enthusiasts. Founded in 2003, Roller Rabbit's victory is anchored in the rich craftsmanship and charming prints its catalog includes. With a collection that can adorn your bed and brunch wardrobes and embellish your home top to bottom, the Roller Rabbit lifestyle is about making every moment extraordinarily bright. The Roller Rabbit family loves a matching moment and memorable delight. From grandma to baby, there's something special for everyone. In its nearly 22 years of business, Roller Rabbit has become a global household name. With 13 U.S. storefronts and growing and a worldwide e-commerce following, Roller Rabbit has excelled in the sleepwear market. From admired fashion/lifestyle partners to key travel players, collaborations have only strengthened the brand's ties to its family-oriented community. WSM-PR
Business Wire
4 minutes ago
- Business Wire
SharkNinja to Participate in the Canaccord Genuity 45th Annual Growth Conference
NEEDHAM, Mass.--(BUSINESS WIRE)--SharkNinja, Inc. (NYSE: SN), a global product design and technology company, today announced that the Company will be participating in the Canaccord Genuity 45th Annual Growth Conference in Boston, MA. SharkNinja is hosting a fireside chat that is scheduled to begin at 4:30 p.m. Eastern Time on Tuesday, August 12, 2025. The fireside chat will be webcast live and available for replay. The link to the webcast will be available on the Investor Relations section of the Company's website at About SharkNinja SharkNinja is a global product design and technology company, with a diversified portfolio of 5-star rated lifestyle solutions that positively impact people's lives in homes around the world. Powered by two trusted, global brands, Shark and Ninja, the company has a proven track record of bringing disruptive innovation to market, and developing one consumer product after another has allowed SharkNinja to enter multiple product categories, driving significant growth and market share gains. Headquartered in Needham, Massachusetts with more than 3,600 associates, the company's products are sold at key retailers, online and offline, and through distributors around the world. For more information, please visit
