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Mar 31, 2023
CareTrust REIT Q1 2023 Earnings Report
Reported operating results for the quarter ended March 31, 2023, and increased the quarterly dividend.
Key Takeaways
CareTrust REIT reported a net income of $19.2 million, normalized FFO of $35.0 million, normalized FAD of $36.6 million, and increased the quarterly dividend to $0.28 per share.
96.3% of contractual rents collected.
Net income of $19.2 million and net income per share of $0.19.
Normalized FFO of $35.0 million and normalized FFO per share of $0.35.
Increased the quarterly dividend to $0.28 per share, representing a payout ratio of approximately 76% on normalized FAD.
Forward Guidance
CareTrust is actively pursuing acquisitions and managing its portfolio to de-risk assets and expand operator relationships.
Positive Outlook
- Deal flow has picked up since Q4 and continues year-to-date.
- Actively pursuing actionable acquisitions at historical coverages and yields.
- Closed on three acquisitions representing 5 facilities for approximately $47 million since quarter end.
- Investment pipeline is between $150 million to $200 million, mostly in skilled nursing acquisitions.
- Sold out of a one-facility seniors housing relationship on May 1 for approximately $3 million.
Challenges Ahead
- An operator accounting for approximately $5 million of contractual annual rent had not paid rent since November 2022, though they paid full monthly rent in March and a partial payment in April.
- Discussions are underway with the operator to determine the best long-term path forward for this portfolio.
- 3 facilities under contract to sell are in various stages of the due diligence process.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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