CareTrust REIT (CTRE) Q4 2023 earnings summary

Executive summary

• Year-end portfolio comprised 207 properties across 25 states, with 22,625 operating beds/units and $1.970B invested in net-leased assets.

• Q4 rent collections were 100.0% of contractual rent; FY collections were 97.7%.

• FY investments totaled $288.1M at a 9.8% estimated stabilized yield; Q4 investments were $43.2M at an 11.4% estimated stabilized yield.

Financial highlights

• Q4 revenue was $59.734M vs. $51.810M YoY; net income attributable to shareholders was $26.296M vs. $14.380M.

• FY revenue was $217.770M vs. $196.132M; net income attributable to shareholders was $53.735M vs. a $7.506M loss in 2022.

• Q4 normalized FFO was $43.376M, or $0.36/share, and normalized FAD was $45.384M, or $0.37/share; FY totals were $149.6M and $156.8M, or $1.41 and $1.48/share.

• Q4 net income was $26.3M, or $0.22 diluted EPS; FY net income was $53.7M, or $0.50 diluted EPS.

• FY real estate impairment charges were $36.301M vs. $79.062M in 2022; Q4 charges were $4.791M vs. $5.356M YoY.

Outlook and guidance

• FY 2024 guidance: diluted EPS of $1.02–$1.04, normalized FFO of $1.43–$1.45/share and normalized FAD of $1.47–$1.49/share.

• Guidance assumes 130.518M diluted weighted-average shares, 2.5% CPI-based rent escalators, 2%–3% uncollected rents, and no unannounced acquisitions, dispositions, loans, debt or equity issuances.

• Management cited a $250M investment pipeline, excluding larger portfolio deals under review, and expects investment opportunities to remain strong if the operating environment is steady.