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Sep 30, 2021

CareTrust REIT Q3 2021 Earnings Report

Reported operating results for the quarter ended September 30, 2021.

Key Takeaways

CareTrust REIT reported a net income of $11.9 million, or $0.12 per share, normalized FFO of $36.7 million, and normalized FAD of $39.0 million for the quarter ended September 30, 2021. The company collected 96.2% of contractual rents and declared a quarterly dividend of $0.265 per share.

96.2% of contractual rents collected.

Net income of $11.9 million and net income per share of $0.12.

Normalized FFO of $36.7 million, a 13.0% increase over the prior year, and normalized FFO per share of $0.38.

A quarterly dividend of $0.265 per share, representing a payout ratio of approximately 66% on normalized FAD.

Total Revenue
$48.6M
Previous year: $45.7M
+6.4%
EPS
$0.38
Previous year: $0.34
+11.8%
Net Debt to EBITDA
3.7
Previous year: 3.1
+19.4%
Quarterly Dividend
$0.265
Previous year: $0.25
+6.0%
Gross Profit
$47.1M
Previous year: $44.2M
+6.4%
Cash and Equivalents
$17.7M
Previous year: $19.1M
-7.3%
Total Assets
$1.64B
Previous year: $1.45B
+13.1%

CareTrust REIT

CareTrust REIT

Forward Guidance

CareTrust updated its annual guidance for 2021, on a per-diluted weighted-average common share basis, increasing net income on the low end to approximately $0.80 to $0.81, and increasing normalized FFO to approximately $1.49 to $1.50 and normalized FAD to approximately $1.58 to $1.59.

Positive Outlook

  • All investments, dispositions and loan repayments made to date are included.
  • No new acquisitions, dispositions, new loans or loan repayments beyond those completed or announced to date are assumed.
  • No new debt incurrences or new equity issuances are assumed.
  • Estimated 2.00% CPI-based rent escalators under CareTrust's long-term net leases are included.
  • All contractual cash rents are assumed to be 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.
  • The government’s responses thereto could impact the outlook.
  • The resulting impact on our tenants’ abilities to timely pay rent could alter the outlook.
  • Ongoing effects of the global pandemic.
  • Operating headwinds still facing the Company’s tenants, especially assisted living providers that have received little to no government financial support to date.