CareTrust REIT Reports Strong Second Quarter 2025 Financial Results

Strategic Insights -

CareTrust REIT, Inc. (NYSE:CTRE) has announced its operating results for the quarter ended June 30, 2025. The company reported a strong quarter, with significant investments, debt repayment, and a robust financial performance.

CareTrust REIT invested $1.1 billion at an estimated stabilized yield of 8.4%, including the acquisition of Care REIT plc. The company up-sized its credit facility to include a $500 million, 5-year term loan, and sold 12.1 million shares under its ATM Program for gross proceeds of $353.9 million. The company's investment grade rating by Fitch highlights its strong financial position. 99.7% of contractual rent and interest was collected, demonstrating the company's ability to manage its cash flow effectively.

The company's financial results were impressive, with net income of $68.5 million and net income per share of $0.35. Normalized FFO was $83.1 million, and normalized FAD was $83.1 million, both at $0.43 per diluted weighted-average common share. CareTrust REIT maintained its low leverage, with a net debt-to-annualized normalized run rate EBITDA of 2.0x, and improved its credit capacity to support future expansion.

Key Takeaways:

  • CareTrust REIT invested $1.1 billion at an estimated stabilized yield of 8.4%, including the acquisition of Care REIT plc.
  • The company up-sized its credit facility to include a $500 million, 5-year term loan.
  • 12.1 million shares were sold under the ATM Program for gross proceeds of $353.9 million.
  • The company's investment grade rating by Fitch highlights its strong financial position.
  • 99.7% of contractual rent and interest was collected during the quarter.
  • Net income was $68.5 million, net income per share was $0.35, and normalized FFO was $83.1 million.
  • Normalized FAD was $83.1 million, and normalized FAD per share was $0.43.
  • CareTrust REIT maintains a low leverage, with a net debt-to-annualized normalized run rate EBITDA of 2.0x.
  • The company improved its credit capacity to support future expansion.
  • An approximate $600 million investment pipeline is identified as of quarter end.
  • CareTrust has cash on hand of approximately $65 million.

Statistics:

  • $1.1 billion invested at an estimated stabilized yield of 8.4%.
  • 12.1 million shares sold under the ATM Program at a weighted average sales price of $29.36 per share for gross proceeds of $353.9 million.
  • $500 million 5-year term loan added to the credit facility.
  • 99.7% of contractual rent and interest collected during the quarter.
  • Net income of $68.5 million and net income per share of $0.35.
  • Normalized FFO of $83.1 million and normalized FFO per share of $0.43.
  • Normalized FAD of $83.1 million and normalized FAD per share of $0.43.
  • Net debt-to-annualized normalized run rate EBITDA of 2.0x.
  • $65.0 million in borrowings outstanding on the $1.2 billion revolving credit line as of today.
  • No scheduled debt maturities prior to 2028.
  • Cash on hand of approximately $65 million as of quarter end.

Sources:

  • CareTrust REIT, Inc. (NYSE:CTRE) - News Release: CareTrust REIT Reports Operating Results for the Quarter Ended June 30, 2025.