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Mar 31
CareTrust REIT Q1 2025 Earnings Report
Reported operating results for the quarter ended March 31, 2025
Key Takeaways
CareTrust REIT delivered strong first quarter 2025 results, with significant increases in net income and revenue compared to the previous year. The company also increased its quarterly dividend and announced the pending strategic acquisition of Care REIT plc, which is expected to close in May 2025.
Net income increased to $65.8 million, or $0.35 per diluted share, compared to $28.7 million, or $0.22 per diluted share, in the prior year.
Total revenues for the quarter were $96.6 million, a substantial increase from $63.1 million in the same period last year.
The company's Net Debt to Annualized Normalized Run Rate EBITDA was 0.5x, well below its target range of 4.0x to 5.0x.
CareTrust increased its quarterly dividend to $0.335 per common share and raised its full-year 2025 guidance for net income, normalized FFO, and normalized FAD.
CareTrust REIT
CareTrust REIT
Forward Guidance
CareTrust REIT increased its full-year 2025 guidance, projecting strong performance driven by recent investments and the anticipated acquisition of Care REIT plc.
Positive Outlook
- Increased net income guidance range to $1.36 to $1.40 per diluted weighted-average common share.
- Increased normalized FFO guidance range to $1.69 to $1.73 per diluted weighted-average common share.
- Increased normalized FAD guidance range to $1.73 to $1.77 per diluted weighted-average common share.
- Guidance includes the impact of all investments and dispositions made year-to-date.
- Assumes estimated 2.5% CPI-based rent escalators under long-term net leases.
Challenges Ahead
- Guidance assumes no new or approved investments beyond those already made.
- Guidance assumes no new dispositions.
- Guidance assumes no new debt incurrences.
- Guidance assumes no new equity issuances.
- Future results could be materially different due to various risk factors outlined in the report.