CareTrust REIT (CTRE) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly and full-year results in 2024, with net income of $125.1M and normalized FFO and FAD growth.

• Completed $1.52B in new investments, expanding the portfolio to 406 properties and 42,670 beds/units across 34 states.

• Maintains a disciplined approach to underwriting and portfolio management, focusing on long-term FFO per share growth.

• Raised over $1.5B in equity and upsized revolving credit line to $1.2B, with no outstanding borrowings and $205M cash on hand.

• Positioned for double-digit FFO per share growth in 2025, even without additional investments.

Financial highlights

• Q4 2024 revenues rose to $86.9M from $59.7M year-over-year; full-year revenues reached $296.3M, up from $217.8M.

• Net income for Q4 2024 was $52.1M; full-year net income was $125.1M.

• Normalized FFO for Q4 2024 was $72.9M ($0.40/share); normalized FAD was $74.3M ($0.41/share).

• Dividends declared per share were $0.29 in Q4 2024, with a payout ratio of 71%–83%.

• Ended the quarter with $180M in cash after funding investments and dividends.

Outlook and guidance

• 2025 guidance: net income per share of $1.35–$1.39, normalized FFO per share of $1.68–$1.72, and normalized FAD per share of $1.72–$1.76.

• Projected total cash rental revenues of $279M and interest income from financing receivables of $11.5M.

• Guidance assumes no additional investments or debt/equity issuances in 2025 and 2.5% CPI rent escalations.

• Expected FFO per share growth of 12%–14.6% and FAD per share growth of 11.8%–14.4%.

• Dividend maintained at $0.29/share quarterly; annualized payout ratio of 73% on normalized FFO.