CareTrust REIT, Inc. (NYSE:CTRE) is a real estate investment trust that focuses on healthcare-related properties. The company invests in and manages a portfolio of skilled nursing, assisted living, and other healthcare facilities. CTRE competes with other healthcare REITs in the market, striving to provide stable returns to its investors through strategic investments and efficient operations.
On February 13, 2025, CTRE reported earnings per share (EPS) of $0.29, which was below the expected $0.40. This shortfall in EPS aligns with the company's reported net income of $52.1 million, translating to the same EPS of $0.29. Despite this, the normalized funds from operations (FFO) were $72.9 million, or $0.40 per share, indicating a stronger operational performance.
CTRE's revenue for the period was $62.2 million, falling short of the estimated $77.3 million. However, the company made significant investments totaling $696.5 million, achieving an estimated stabilized yield of 9.9%. This suggests that while current revenues were below expectations, CTRE is positioning itself for future growth through strategic investments.
The company successfully collected 98.8% of its contractual rent and interest, demonstrating strong operational efficiency. Additionally, CTRE increased its revolving credit line to $1.2 billion, with a maturity date extended to February 2029. This financial flexibility supports the company's growth initiatives and ability to manage its debt effectively, as highlighted by a Net Debt to Annualized Normalized Run Rate EBITDA of 0.5x.
CTRE's financial metrics, such as a price-to-earnings (P/E) ratio of approximately 41.10 and an earnings yield of roughly 2.43%, reflect its market valuation. The company declared a quarterly dividend of $0.29 per share, representing a payout ratio of about 71% on normalized FAD. This indicates a commitment to returning value to shareholders while maintaining a sustainable payout ratio.
