CareTrust REIT Reports Strong Q3 2024 Results

CareTrust REIT ( (CTRE) ) has realeased its Q3 earnings. Here is a breakdown of the information CareTrust REIT presented to its investors.

CareTrust REIT, Inc. is a real estate investment trust specializing in the ownership, acquisition, development, and leasing of skilled nursing, senior housing, and other healthcare-related properties across the United States. The company focuses on long-term net-leased properties with quality operators, aiming for both external and organic growth.

In the third quarter of 2024, CareTrust REIT reported significant financial developments, including investments totaling $440.8 million at a stabilized yield of 9.1%, and sold 17.2 million shares for $500.1 million under its ATM Program. The company achieved a net income of $33.4 million, or $0.21 per share, and declared a quarterly dividend of $0.29 per share. The company also managed to prepay its $200 million term loan, indicating strong liquidity.

Key financial metrics included a normalized FFO of $60.9 million and a normalized FAD of $61.9 million, with a payout ratio of approximately 74% on normalized FAD. The company also reported a year-over-year market cap growth of approximately 123% and maintained a net debt-to-annualized normalized run rate EBITDA of 0.08x, showcasing its strong financial health.

Looking ahead, CareTrust REIT is planning to expand with acquisitions such as four skilled nursing facilities in the Northeast and a large portfolio in Tennessee. The company is on track to invest $1.4 billion at an average yield of 9.3% by the end of the year and is seeking to extend and upsize its existing revolving credit line to $1.2 billion.

Overall, CareTrust REIT remains optimistic about its growth prospects, with management expressing confidence in closing the year on a high note with strategic investments and a robust pipeline that promises further expansion and diversification in the following year.