CareTrust REIT (CTRE) Tops Q4 EPS by 2c

CareTrust REIT (NASDAQ: CTRE) reported Q4 EPS of $0.22, $0.02 better than the analyst estimate of $0.20.

• Net income of $20.7 million and net income per diluted weighted-average common share of $0.22;
• Normalized FFO of $32.5 million and normalized FFO per diluted weighted-average common share of $0.34;
• Normalized FAD of $34.1 million and normalized FAD per diluted weighted-average common share of $0.36; and
• A net debt-to-normalized EBITDA ratio of 3.3x, and a net debt-to-enterprise value of 21%, each as of quarter-end.

Record Year for Investments

”We are pleased to report results in line with our 2019 guidance, following the completion of the necessary portfolio changes we announced in the second half of 2019,” said Greg Stapley, CareTrust's Chairman and Chief Executive Officer. “Since highlighting those issues in the third quarter, we have successfully transitioned two small portfolios to new tenants, completed two asset sales, had one loan paid in full, closed on a previously-announced acquisition and begun redeploying the capital that was returned,” he said. Mr. Stapley noted that following these changes, the Company’s portfolio is performing as expected, but management remains vigilant. “We have a couple of tenants who remain on our watchlist, and we are staying close to them and their operations as they work to achieve the potential that’s there,” he added.

Mr. Stapley also highlighted the Company’s best-ever investment volume in 2019. He reported that CareTrust closed on a record $341 million in new investments during 2019, at an average initial cash yield of 8.8%. “I can’t say enough about our team’s performance, as they navigated difficult waters but still never missed a beat on the growth front,” he said. He concluded by adding that, with leverage at approximately 3.3x net debt-to-normalized EBITDA, the Company’s balance sheet is well-positioned for additional growth in 2020

For earnings history and earnings-related data on CareTrust REIT (CTRE) click here.

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