CareTrust REIT Announces Fourth Quarter & Full Year 2024 Operating Results

Conference Call Scheduled for Thursday, February 13, 2025 at 1:00 pm ET

CareTrust REIT, Inc. (NYSE:CTRE) today reported operating results for the quarter and year ended December 31, 2024, as well as other recent events.

For the quarter, CareTrust REIT reported:

• Investments of $696.5 million at an estimated stabilized yield of 9.9%;
• 15.9 million shares sold in a public offering of its common stock for gross proceeds of $507.8 million;
• Upsized its existing revolving credit line to $1.2 billion and extended maturity date to February 2029;
• 98.8% of contractual rent and interest collected;
• Net income of $52.1 million and net income per share of $0.29;
• Net Debt to Annualized Normalized Run Rate EBITDA of 0.5x;
• Normalized FFO of $72.9 million and normalized FFO per share of $0.40;
• Normalized FAD of $74.3 million and normalized FAD per share of $0.41;
• A quarterly dividend of $0.29 per share, representing a payout ratio of approximately 71% on normalized FAD; and
• Announced agency upgrade of its unsecured notes to investment grade.

Since quarter end, CareTrust REIT reported:

• Investments totaling approximately $26.8 million at an estimated stabilized yield of 10.6%;
• Investment pipeline of approximately $325 million;
• Entered into a new $750.0 million ATM Program; and
• Cash on hand of approximately $205 million.

CareTrust's President and Chief Executive Officer, Dave Sedgwick, commented on the Company's 2024 fourth quarter and full year results. "We finished a record year with a record quarter. Now all eyes are on 2025 and beyond." Mr. Sedgwick continued, "We continue to position the company to build on the momentum of impactful growth with top-tier operators. Our balance sheet, access to capital, team, partnerships, and opportunities to grow and diversify the portfolio are all in a stronger position than they were twelve months ago."

Financial Results for Quarter and Year Ended December 31, 2024

Chief Financial Officer, Bill Wagner, reported that, for the fourth quarter, CareTrust reported net income of $52.1 million, or $0.29 per diluted weighted-average common share, normalized FFO of $72.9 million, or $0.40 per diluted weighted-average common share, and normalized FAD of $74.3 million, or $0.41 per diluted weighted-average common share. For the year ended December 31, 2024, CareTrust reported net income of $125.1 million, or $0.80 per diluted weighted-average common share, normalized FFO of $232.9 million, or $1.50 per diluted weighted-average common share, and normalized FAD of $238.8 million, or $1.54 per diluted weighted-average common share.

Liquidity

As of quarter end, CareTrust reported net debt-to-annualized normalized run rate EBITDA of 0.5x, which is below the Company's target leverage range of 4.0x to 5.0x, and a net debt-to-enterprise value of approximately 3.5%. Mr. Wagner stated that, as of today, the Company has no borrowings outstanding on its $1.2 billion revolving credit line, with no scheduled debt maturities prior to 2028. He also disclosed that CareTrust currently has approximately $205 million in cash on hand. During the fourth quarter of 2024, the Company sold 15.9 million shares in a public offering of its common stock at a price of $32.00 per share for gross proceeds of $507.8 million. As of February 12, 2025, the Company had $750.0 million available for future issuances under the ATM Program. "We have plenty of availability under both our ATM Program and revolving credit line which will allow us to fund a replenishing pipeline of accretive investment opportunities," said Mr. Wagner.

Guidance

The Company issued guidance for 2025, with Mr. Wagner projecting on a per-diluted weighted-average common share basis net income of approximately $1.35 to $1.39, normalized FFO of approximately $1.68 to $1.72, and normalized FAD of approximately $1.72 to $1.76. He noted that the 2025 guidance is based on a diluted weighted-average common share count of 187.5 million shares, and assumes the following:

• All investments year-to-date;
• No new investments;
• Dispositions made to date;
• Loan repayments made to date or expected to be made;
• No new dispositions;
• No new debt incurrences or new equity issuances; and
• Estimated 2.5% CPI-based rent escalators under CareTrust's long-term net leases.

Dividend Maintained

During the quarter, CareTrust declared a quarterly dividend of $0.29 per common share. On an annualized basis, the payout ratio was approximately 73% based on fourth quarter 2024 normalized FFO, and 71% based on fourth quarter 2024 normalized FAD.

Conference Call

A conference call will be held on Thursday, February 13, 2025, at 1:00 p.m. Eastern Time (10:00 a.m. Pacific Time), during which CareTrust's management will discuss fourth quarter and full year 2024 results, recent developments and other matters. The toll-free dial-in number is 1 (800) 715-9871 or toll dial-in number is 1 (646) 307-1963 and the conference ID number is 2243604. To listen to the call online, or to view any financial or other statistical information required by SEC Regulation G, please visit the Investors section of the CareTrust REIT website at http://investor.caretrustreit.com. This call will be recorded, and will be available for replay via the website for 30 days following the call.

About CareTrust™

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States. More information about CareTrust REIT is available at www.caretrustreit.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This press release contains, and the related conference call will include, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical statements of fact and statements regarding the Company's intent, belief or expectations, including, but not limited to, statements regarding the following: future financial and financing plans; strategies related to the Company's business and its portfolio, including acquisition opportunities and disposition plans; growth prospects; operating and financial performance; expectations regarding the making of distributions and payment of dividends; and the performance of the Company's tenants and operators and their respective facilities.

Words such as "anticipate," "believe," "could," "expect," "estimate," "intend," "may," "plan," "seek," "should," "will," "would," and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements, though not all forward-looking statements contain these identifying words. The Company's forward-looking statements are based on management's current expectations and beliefs, and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although the Company believes that the assumptions underlying these forward-looking statements are reasonable, they are not guarantees and the Company can give no assurance that its expectations will be attained. Factors which could have a material adverse effect on the Company's operations and future prospects or which could cause actual results to differ materially from expectations include, but are not limited to: (i) the ability and willingness of our tenants and borrowers to meet and/or perform their obligations under the agreements we have entered into with them, including without limitation, their respective obligations to indemnify, defend and hold us harmless from and against various claims, litigation and liabilities; (ii) the risk that we may have to incur additional impairment charges related to our assets held for sale if we are unable to sell such assets at the prices we expect; (iii) the impact of healthcare reform legislation, including minimum staffing level requirements, on the operating results and financial conditions of our tenants and borrowers; (iv) the ability of our tenants and borrowers to comply with applicable laws, rules and regulations in the operation of the properties we lease to them or finance; (v) the ability and willingness of our tenants to renew their leases with us upon their expiration, and the ability to reposition our properties on the same or better terms in the event of nonrenewal or in the event we replace an existing tenant, as well as any obligations, including indemnification obligations, we may incur in connection with the replacement of an existing tenant; (vi) the availability of and the ability to identify (a) tenants who meet our credit and operating standards, and (b) suitable acquisition opportunities and the ability to acquire and lease the respective properties to such tenants on favorable terms; (vii) the ability to generate sufficient cash flows to service our outstanding indebtedness; (viii) access to debt and equity capital markets; (ix) fluctuating interest rates; (x) the impact of public health crises, including significant COVID-19 outbreaks as well as other pandemics or epidemics; (xi) the ability to retain our key management personnel; (xii) the ability to maintain our status as a real estate investment trust ("REIT"); (xiii) changes in the U.S. tax law and other state, federal or local laws, whether or not specific to REITs; (xiv) other risks inherent in the real estate business, including potential liability relating to environmental matters and illiquidity of real estate investments; and (xv) any additional factors included in our Annual Report on Form 10-K for the year ended December 31, 2024, including in the section entitled "Risk Factors" in Item 1A of such report, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the SEC.

This press release and the related conference call provides information about the Company's financial results as of and for the quarter and year ended December 31, 2024 and is provided as of the date hereof, unless specifically stated otherwise. The Company expressly disclaims any obligation to update or revise any information in this press release or the related conference call (and replays thereof), including forward-looking statements, whether to reflect any change in the Company's expectations, any change in events, conditions or circumstances, or otherwise.

As used in this press release or the related conference call, unless the context requires otherwise, references to "CTRE," "CareTrust," "CareTrust REIT" or the "Company" refer to CareTrust REIT, Inc. and its consolidated subsidiaries. GAAP refers to generally accepted accounting principles in the United States of America.