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CareTrust REIT (CTRE) Q3 Earnings call transcript Oct 30, 2024

Daily EarningsThursday, Oct 31, 2024 3:58 pm ET

1min read

CTRE -- DAVE --

CareTrust REIT's third-quarter earnings call for 2024 was a testament to the company's remarkable growth trajectory and strategic initiatives. The call, led by CEO Dave Sedgwick, provided valuable insights into the company's financial performance, growth strategies, and future outlook.

Financial Performance and Growth

CareTrust REIT reported a year-over-year market cap growth of 123% and record-setting investments of approximately $917 million at an average stabilized yield of 9.4%. The company also announced pending acquisitions of approximately $500 million of skilled nursing facilities, highlighting its aggressive expansion plans. The combined year-to-date investments and announced pending deals are projected to reach over $1.4 billion at an average stabilized yield of 9.3%.

Strategic Acquisitions and Partnerships

One of the most significant highlights of the call was the announcement of CareTrust's entry into a material contract to acquire a portfolio of 31 skilled nursing assets around Tennessee for a purchase price of $500 million. The deal, which is expected to close by year-end, underscores the company's commitment to expanding its influence with some of the country's best operators. CareTrust also announced plans to acquire $57 million of skilled nursing facilities in the Northeast, further underscoring its aggressive expansion plans.

Financial Metrics and Guidance

CareTrust's financial performance was also noteworthy, with normalized FFO increasing 66% over the prior year quarter to $60.9 million and normalized FAD increasing by 60% to $61.9 million. The company also raised its guidance for this year, expecting FFO per share to range between $1.49 and $1.50, up from the previous guidance of $1.46 to $1.48.

Investor and Analyst Questions

During the Q&A session, investors and analysts probed the company on various topics, including the company's investment strategy, the competitive landscape, and the impact of demographic trends on the company's growth prospects. CareTrust executives provided detailed responses, shedding light on the company's strategic approach, its confidence in the market conditions, and its optimistic outlook for the future.

Key Takeaways

CareTrust REIT's Q3 2024 earnings call was a showcase of the company's robust financial performance, aggressive expansion plans, and strategic partnerships. The call underscored the company's commitment to expanding its influence in the skilled nursing sector, leveraging its relationships with top operators, and capitalizing on the demographic trends that are expected to drive growth in the sector for decades to come. With a strong balance sheet, a disciplined investment approach, and a clear strategic direction, CareTrust REIT is well-positioned for continued growth and success.

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