CareTrust REIT (CTRE) came out with quarterly funds from operations (FFO) of $0.40 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.36 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this health care real estate investment trust would post FFO of $0.38 per share when it actually produced FFO of $0.38, delivering no surprise.Over the last four quarters, the company has not been able to surpass consensus FFO estimates ...

CareTrust REIT Announces Fourth Quarter & Full Year 2024 Operating Results Conference Call Scheduled for Thursday, February 13, 2025 at 1:00 pm ET SAN CLEMENTE, Calif., February 12, 2025 (BUSINESS WIRE) -- CareTrust REIT, Inc. (NYSE:CTRE) today reported operating results for the quarter and year ended December 31, 2024, as well as other recent events. For the quarter, CareTrust REIT reported: Since quarter end, CareTrust REIT reported: CareTrust's President and Chief Executive Officer, Dave Sedgwick, commen ...

Industry Trends - The skilled nursing industry is experiencing a supply/demand imbalance, with approximately 14,800 facilities as of July 2024, down from over 15,600 in July 2016, indicating a trend favoring skilled nursing and assisted living providers[36] - The U.S. Census estimates over 59 million individuals aged 65 and older in 2023, projected to nearly double by 2060, driving increased demand for skilled nursing services[36] - Nursing home care expenditures are projected to grow from approximately $209.3 billion in 2023 to about $337.4 billion by 2032, reflecting a significant market opportunity[36] Portfolio Overview - As of December 31, 2024, the portfolio includes 313 skilled nursing facilities (SNFs), with 189 owned facilities and 31 held in consolidated joint ventures[37] - The portfolio is geographically diverse, with significant concentrations in California and Texas based on rental income[39] - The company operates a geographically diverse portfolio across 34 states, with no single state accounting for more than 22% of annualized revenue[60] Rental Income and Growth - Total rental income for the year ended December 31, 2024, was $228,261,000, an increase from $198,599,000 in 2023, representing a growth of approximately 14.9%[49][50] - Skilled Nursing Facilities (SNFs) generated rental income of $169,414,000 in 2024, accounting for 74% of total rental income, with an occupancy rate of 79%[49] - Multi-Service Campuses contributed $43,372,000 in rental income, representing 19% of total income, with an occupancy rate of 79%[49] - Assisted Living Facilities (ALFs) and Independent Living Facilities (ILFs) generated $15,475,000 in rental income, making up 7% of total income, with a 74% occupancy rate[49] Financial Performance - Annualized contractual rental income from Ensign Master Leases was $68.2 million, representing 26% of total annualized contractual rental income as of December 31, 2024[40] - The PACS Master Lease generated annualized contractual rental income of $20.0 million, accounting for 8% of total annualized contractual rental income as of December 31, 2024[42] - The PMG Master Lease contributed $31.9 million in annualized contractual rental income, representing 12% of total annualized contractual rental income as of December 31, 2024[43] Investment and Financing - The company invested in 46 properties through a sale and leaseback transaction, with a gross investment of $97,053,000 and an effective interest rate of 12.0%[52][53] - The financing receivable from the sale and leaseback transaction generated interest income of $1,009,000 for the year ended December 31, 2024[52] - The company’s mortgage loans had a principal balance of $658,400,000 as of December 31, 2024, with total interest income of $35,972,000[54] Tenant and Operator Relationships - The company monitors tenant creditworthiness through lease coverage ratios, evaluating EBITDAR and EBITDARM against rent coverage[44] - The management team emphasizes identifying talented operators to enhance facility performance and tenant relationships[65] - Ensign, the primary tenant, represented 28% of total annualized contractual rental income as of December 31, 2024[62] Regulatory and Compliance Risks - The False Claims Act imposes civil penalties ranging from $5,500 to $11,000 per false claim, plus three times the damages sustained by the government[105] - The Stark Law prohibits billing Medicare or Medicaid for designated health services if referred by a physician with a financial relationship, with penalties up to $15,000 per self-referred service[106] - Increased government oversight mandates immediate reporting of suspected crimes in federally funded long-term care facilities, with penalties up to $300,000 for non-compliance[112] Employee and ESG Initiatives - The company employed 21 full-time employees as of December 31, 2024, with a 100% response rate in the employee satisfaction survey[95][98] - The overall employee satisfaction rate was 84%, with 78% of employees agreeing that the benefits package is competitive[95] - The company reported a 10% increase in leases with ESG requirements from September 2023[86] Debt and Capital Structure - As of December 31, 2024, the company had approximately $400.0 million of indebtedness, represented by 3.875% Senior Notes due 2028[204] - The company must distribute at least 90% of its REIT taxable income annually to avoid U.S. federal corporate income tax[197] - High levels of indebtedness could reduce cash flow available for working capital, dividends, and acquisitions[204] Market and Economic Risks - The company faces risks related to the financial health of its tenants, including potential bankruptcies that could impact rental income[141] - Unstable market conditions and geopolitical events may adversely affect the company's business and financial condition[139] - The company is exposed to potential reductions in reimbursement rates from government payors, which could impact tenants' revenues and their ability to meet obligations[140] Future Strategies - Future investment strategies may include expanding into behavioral health facilities and medical office buildings[58] - The company plans to pursue strategic development opportunities, including renovations and new developments with attractive risk-adjusted returns[79]

Wall Street analysts forecast that CareTrust REIT (CTRE) will report quarterly earnings of $0.40 per share in its upcoming release, pointing to a year-over-year increase of 11.1%. It is anticipated that revenues will amount to $84.07 million, exhibiting an increase of 40.8% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.B ...

Albert Anthony is the pen name / stage name of markets analyst, contributor & host of The Future Investor, on the global investor platform Seeking Alpha, where he has covered over +200 companies, provides general markets commentary, and rates stocks in multiple sectors, while having grown a fan base of over +1K followers since 2023. Going beyond the investor platform, he is also a hobby investor of his own home-based fund called The Future Investor Fund, and talks investor topics on his Future Investor Chan ...

A downtrend has been apparent in CareTrust REIT (CTRE) lately with too much selling pressure. The stock has declined 8.3% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for s ...

Since starting here on Seeking Alpha, I've pretty much been pounding the table telling investors CareTrust REIT (NYSE: CTRE ) was a buy. And this was due to their strong fundamentals and long growth runway.Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence ...

CareTrust REIT (CTRE) has been beaten down lately with too much selling pressure. While the stock has lost 6.3% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that ...

I am bullish on CareTrust REIT (NYSE: CTRE ) and rate it a buy given its strong fundamentals and growth potential. The company has been exhibiting strong and consistent financial performanceI am an experienced financial analyst and a former writer for Fade The Market on Seeking Alpha, with a passion for numbers and a knack for unraveling complex financial data. Armed with a strong financial modeling and data analysis background, I thrive on providing accurate insights and recommendations to drive informed f ...

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