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Sep 30
CareTrust REIT Q3 2025 Earnings Report
CareTrust REIT reported strong operating results for the third quarter of 2025, with significant increases in net income, FFO, and FAD per share, alongside substantial investment activity and robust rent collection.
Key Takeaways
CareTrust REIT delivered a strong third quarter in 2025, marked by a 67% increase in net income per diluted share to $0.35 and an 18% rise in normalized FFO per diluted share to $0.45 compared to the prior year. The company closed $59.4 million in investments during the quarter and maintained 100% contractual rent and interest collection, demonstrating solid operational performance and strategic growth.
Net income per diluted share increased by 67% to $0.35, up from $0.21 in the prior year quarter.
Normalized FFO per diluted share grew by 18% to $0.45, compared to $0.38 in the same period last year.
The company closed $59.4 million in investment activity during the quarter at a blended stabilized yield of 8.8%.
Contractual rent and interest collection stood at 100.0%, excluding properties held-for-sale.
CareTrust REIT
CareTrust REIT
CareTrust REIT Revenue by Segment
Revenue by Segment
Rental Income Revenue
CapyFin.comInterest from Financing Receivable Revenue
CapyFin.comInterest from Other RE Investments Revenue
CapyFin.com Forward Guidance
CareTrust REIT updated its 2025 guidance, projecting net income of $1.41 to $1.42, normalized FFO of $1.76 to $1.77, and normalized FAD of $1.76 to $1.77 per diluted weighted-average common share. This guidance reflects a duration gap between equity raise and capital deployment, along with higher G&A expenses due to team investments, but the company anticipates strong momentum into 2026 with a replenished investment pipeline.
Positive Outlook
- Replenished investment pipeline of approximately $600 million for future growth.
- Strong balance sheet and available capacity under ATM and revolver provide flexibility for funding near-term opportunities.
- Fundamentals remain strong, providing a compelling launch point for 2026.
- Anticipated addition of SHOP to the portfolio in 2026 presents a large opportunity set.
- Positioning portfolio for success in 2026 and beyond with bolstered liquidity and leverage.
Challenges Ahead
- Updated guidance primarily due to a duration gap between equity raise and deploying capital.
- General and administrative expenses are at the higher end of expectations due to investments in the team.
- Guidance assumes no new investments, loans, dispositions, or loan repayments beyond those made to-date.
- Guidance assumes no new debt or equity issuances.
- The timing and amount of certain excluded charges in non-GAAP measures cannot be quantified with certainty.