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Dec 31, 2023

CareTrust REIT Q4 2023 Earnings Report

CareTrust REIT reported solid Q4 2023 results, driven by strong rental income and strategic investments.

Key Takeaways

CareTrust REIT reported net income of $26.3 million, or $0.22 per diluted share, and normalized FFO of $43.4 million, or $0.36 per diluted share, for the fourth quarter of 2023. The company collected 100% of contractual rents and invested $43.2 million during the quarter. They ended the year with approximately $294 million in cash.

Collected 100% of contractual rents for the quarter.

Reported net income of $26.3 million, or $0.22 per share.

Achieved normalized FFO of $43.4 million, or $0.36 per share.

Invested $43.2 million during the quarter at an estimated stabilized yield of 11.4%.

Total Revenue
$59.7M
Previous year: $51.8M
+15.3%
EPS
$0.36
Previous year: $0.38
-5.3%
Net Debt to EBITDA
1.4
Previous year: 3.7
-62.2%
Quarterly Dividend
$0.28
Previous year: $0.275
+1.8%
Gross Profit
$51.2M
Previous year: $46M
+11.2%
Cash and Equivalents
$294M
Previous year: $13.2M
+2134.4%
Free Cash Flow
$40.8M
Total Assets
$2.08B
Previous year: $1.62B
+28.6%

CareTrust REIT

CareTrust REIT

Forward Guidance

The Company issued guidance for 2024, with Mr. Wagner projecting on a per-diluted weighted-average common share basis net income of approximately $1.02 to $1.04, normalized FFO of approximately $1.43 to $1.45, and normalized FAD of approximately $1.47 to $1.49.

Positive Outlook

  • All investments year-to-date
  • No new acquisitions
  • Dispositions and loan repayments made to date
  • No new dispositions, new loans or loan repayments beyond those completed or announced to date
  • Estimated 2.5% CPI-based rent escalators under CareTrust's long-term net leases.

Challenges Ahead

  • All investments year-to-date
  • No new acquisitions
  • Dispositions and loan repayments made to date
  • No new dispositions, new loans or loan repayments beyond those completed or announced to date
  • Assumes 2% - 3% uncollected rents