CareTrust REIT (CTRE) Q1 2025 earnings summary

Executive summary

• Announced the strategic acquisition of Care REIT plc, a London-listed company, for approximately $856 million, marking entry into the U.K. and the largest deal in company history, with closing expected in May 2025 following shareholder approval.

• Net income for Q1 2025 was $65.8 million, or $0.35 per diluted share, up from $28.7 million, or $0.22 per share, in Q1 2024.

• Normalized FFO for Q1 2025 reached $77.8 million ($0.42 per share), with a payout ratio of 72%.

• 99.2% of contractual rent and interest were collected during the quarter.

• The acquisition diversifies operator concentration, geography, payer sources, and asset classes, reducing U.S. skilled nursing exposure.

Financial highlights

• Q1 2025 revenues were $96.6 million, up from $63.1 million in Q1 2024, driven by higher rental and interest income.

• Normalized FFO increased 67.4% year-over-year to $77.8 million; normalized FAD rose 66% to $80.8 million.

• Per-share, normalized FFO grew 20% to $0.42, and normalized FAD increased 16.2% to $0.43.

• Dividend per share for Q1 2025 was $0.335, with a payout ratio of 78% on normalized FAD.

• Gain on sale of real estate in Q1 2025 was $3.9 million from five facility dispositions.

Outlook and guidance

• 2025 guidance increased: net income projected at $1.36–$1.40 per share, normalized FFO at $1.69–$1.73, and normalized FAD at $1.73–$1.77 per share, assuming no further investments or capital raises this year.

• Guidance includes all closed investments to date and assumes CPI rent escalations at 2.5%.

• Guidance will be updated after the U.K. transaction closes.