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Jun 30, 2021
CareTrust REIT Q2 2021 Earnings Report
Reported operating results for the quarter ended June 30, 2021.
Key Takeaways
CareTrust REIT reported a strong second quarter with 100% contractual rents collected, a 12.6% increase in net income, and increases in normalized FFO and FAD. The company also updated its annual guidance, projecting normalized FFO of approximately $1.48 to $1.50 per share and normalized FAD of approximately $1.57 to $1.59 per share.
100% of contractual rents collected.
Net income increased by 12.6% over the prior year to $21.3 million, with earnings per share of $0.22.
Normalized FFO increased by 11.4% over the prior year to $35.8 million, with normalized FFO per share of $0.37.
A quarterly dividend of $0.265 per share was declared, representing a payout ratio of approximately 66% on normalized FAD.
CareTrust REIT
CareTrust REIT
Forward Guidance
CareTrust updated its annual guidance for 2021, reducing net income to approximately $0.79 to $0.81 and increasing normalized FFO to approximately $1.48 to $1.50 and normalized FAD to approximately $1.57 to $1.59 per share.
Positive Outlook
- All investments, dispositions and loan repayments made to date are included.
- Guidance assumes no new acquisitions, dispositions, new loans or loan repayments beyond those completed or announced to date.
- Guidance assumes no new debt incurrences or new equity issuances.
- Estimated 2.00% CPI-based rent escalators under CareTrust's long-term net leases are included.
- Guidance assumes all contractual cash rents are paid by the end of the year.
Challenges Ahead
- Material changes in economic and other factors related to the COVID-19 pandemic could alter the outlook.
- Government responses to the pandemic could impact tenants' abilities to timely pay rent.
- Ongoing effects of the global pandemic could impact tenants.
- Operating headwinds still face the Company’s tenants.
- Assisted living providers have received little to no government financial support to date.