CareTrust REIT (CTRE) Q4 2025 earnings summary

Executive summary

• 2025 marked a transformational year with record external growth, significant portfolio expansion, and entry into UK Care Homes and the SHOP segment, resulting in a more diverse and robust portfolio.

• Achieved strong year-over-year growth in revenue and net income for Q4 and FY2025, driven by investment activity and portfolio expansion.

• Portfolio reached 577 properties with high occupancy rates and diversified skilled nursing and senior housing assets.

• Management maintains a positive outlook for 2026, citing a strong investment pipeline, world-class operator relationships, and a solid balance sheet.

• Maintained robust rent coverage and operator diversification, with top ten operators accounting for 72% of rent.

Financial highlights

• FY2025 net income attributable to shareholders was $320.5 million ($1.57 per diluted share), up 96% year-over-year; Q4 net income was $111.3 million.

• Normalized FFO for FY2025 was $359.7 million ($1.76 per share), up 17% year-over-year; Normalized FAD was $360.0 million ($1.76 per share), up 14%.

• Q4 normalized FFO rose 42.7% sequentially to $104.1 million; Q4 investments totaled $562 million at an 8.8% yield.

• FY2025 total investments reached $1.8 billion, supporting a 61% increase in market cap to $8.2 billion.

• Dividends declared per share for FY2025 were $1.34, with a Q4 payout ratio of approximately 73% on Normalized FAD.

Outlook and guidance

• FY2026 guidance projects net income of $326–338 million ($1.45–$1.50 per share), Normalized FFO and FAD of $1.90–$1.95 per share, representing 9.4% growth at the midpoint.

• Guidance assumes no new investments, dispositions, or financings beyond those already announced, and 2.5% inflation-based rent escalators.

• Investment pipeline stands at $500 million, with strong deal flow expected across all segments.

• Weighted average diluted share count for 2026 guidance is 225 million.

• Cash rental revenue expected at $430–436 million and interest income at $88–92 million.