CTRE · CareTrust REIT, Inc.

CareTrust REIT delivered strong Q1 2026 results with total revenues surging 48% year-over-year to $142.8 million, primarily driven by rental income growth from $71.6 million to $114.2 million, reflecting successful portfolio expansion and acquisitions. Resident fees and services contributed $3.9 million from senior housing operating properties, a new revenue stream. Expenses rose but at a slower pace, with total expenses at $61.1 million versus $36.6 million prior year, leading to GAAP net income attributable to common shareholders of $80.2 million ($0.36 per diluted share), up 22% from $65.8 million ($0.35). Non-GAAP metrics showed even stronger performance: Normalized FFO of $107.4 million ($0.48 per share, +14%) and Normalized FAD of $107.6 million ($0.48 per share, +12%), supported by robust investment activity of $245.1 million at 8.8% yield during the quarter, part of $1.1 billion YTD at 8.9%. Balance sheet remains fortress-like with Net Debt to Annualized Normalized Run Rate EBITDA at 0.6x (target 4.0x-5.0x), total debt steady at $900 million fixed-rate, and liquidity bolstered by $223 million cash and $879 million ATM capacity as of May 7. The company raised its quarterly dividend 16% YoY to $0.39 per share (81% Normalized FAD payout). Management increased full-year 2026 guidance significantly, with Normalized FFO midpoint implying 14.8% growth over 2025, assuming no further investments/dispositions, 2.5% rent escalators, $145 million loan repayments, and stable GBP:USD. CEO Dave Sedgwick highlighted momentum across US/UK growth engines, a $360 million pipeline, and recent $864 million Q2 investments including a second SHOP deal. Post-quarter, $350 million revolver draw and full ATM settlement for $363.6 million proceeds enhance deployment capacity, with Moody's investment grade upgrade. 100% rent/interest collection underscores operator strength amid healthcare sector dynamics.