CareTrust REIT (CTRE) Q1 2025 earnings summary

Executive summary

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

• 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 company maintains a diversified tenant base, with the top 10 tenants accounting for 82.9% of net-leased rent.

Financial highlights

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

• Rental income rose to $71.6 million from $53.5 million year-over-year.

• Normalized EBITDA for Q1 2025 was $87.6 million, up from $56.9 million in Q1 2024.

• Net debt to annualized normalized run rate EBITDA was 0.5x, well below the target range of 4.0x–5.0x.

• Dividend per share for Q1 2025 was $0.335, with a normalized FFO payout ratio of 72%.

Outlook and guidance

• 2025 guidance increased: normalized FFO per share $1.69–$1.73, normalized FAD per share $1.73–$1.77, and net income projected at $1.36–$1.40 per share.

• Guidance assumes all investments and dispositions to date, no new investments or debt, and 2.5% CPI-based rent escalators.

• U.K. acquisition not included in pipeline guidance; future updates expected post-closing.