CareTrust REIT Reports $267.7M Investments with 9.9% Yield

By Bobby Samwell • Friday, August 02 08:08 • Permanent Link

CareTrust REIT, Inc. (NYSE:CTRE) has reported its operating results for the quarter ended June 30, 2024. The company made investments totaling approximately $267.7 million during the quarter at an estimated stabilized yield of 9.9%, with $378 million in investments since the quarter end. The company also reported 98.3% of contractual rent and interest collected for the quarter.

In terms of financial performance, CareTrust REIT reported net income of $10.8 million and net income per share of $0.07 for the quarter. The company's normalized FFO was $52.5 million, representing a normalized FFO per share of $0.36, and normalized FAD was $54.0 million, with a normalized FAD per share of $0.37.

The company also declared a quarterly dividend of $0.29 per share, representing a payout ratio of approximately 78% on normalized FAD. In addition, the year-over-year market cap growth stood at 84%.

The company's President and CEO, Dave Sedgwick, highlighted a record-breaking annual investment milestone, reaching a total shareholder return of 247% since inception and a major transaction announced, along with a pipeline of $270 million of real estate acquisitions.

In terms of liquidity, the company reported a net debt to annualized normalized run rate EBITDA of 0.4x, which is below the company's target leverage range of 4.0x to 5.0x, and a net debt to enterprise value of approximately 2.6%. CareTrust REIT also disclosed having approximately $100 million in cash on hand and no borrowings outstanding on its $600 million revolving credit line, with no scheduled debt maturities prior to 2026.

The company also updated its guidance for 2024, projecting on a per-diluted weighted-average common share basis net income of approximately $0.86 to $0.88, normalized FFO of approximately $1.46 to $1.48, and normalized FAD of approximately $1.50 to $1.52.

Finally, CareTrust REIT declared a quarterly dividend of $0.29 per common share, with an annualized payout ratio of approximately 81% based on second quarter 2024 normalized FFO and 78% based on second quarter 2024 normalized FAD.

A conference call to discuss the second quarter 2024 results, recent developments, and other matters is scheduled for August 2, 2024, at 1:00 p.m. Eastern Time. Today the company's shares have moved 0.8% to a price of $27.17. If you want to know more, read the company's complete 8-K report here.

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