Caretrust Stock Price, News & Analysis

CareTrust REIT (NASDAQ:CTRE) has acquired four continuing care retirement communities (CCRCs) in California for approximately $126.1 million. These upscale communities, previously developed by Marriott, provide 637 beds across assisted living, skilled nursing, and memory care services. The properties will be operated by Bayshire Senior Communities and Aspen Skilled Healthcare. Initial cash rent for the first year is expected to be $8.6 million, increasing to $9.4 million in the second year. The deal enhances CareTrust's portfolio in strategically favorable locations.

CareTrust REIT (CTRE) reported solid Q4 2020 results with a net income of $21.1 million ($0.22 per share). Normalized FFO reached $34.2 million ($0.36 per share), reflecting resilience amid the COVID-19 pandemic. The company maintained a strong dividend and collected 99.3% of contract rents, showcasing its Operator First investment strategy. Key personnel changes were announced, promoting David Sedgwick to President and COO. The company forecasts 2021 net income between $0.84 and $0.86 per share, alongside a robust pipeline. A conference call is scheduled for February 11, 2021.

The Board of Directors of CareTrust REIT (NASDAQ:CTRE) has promoted David Sedgwick to President, while he retains his role as Chief Operating Officer. This decision underscores Sedgwick's vital contributions to the company's growth. He will oversee key activities such as investing and investor relations. Notably, CareTrust REIT has achieved a 23% compound annual growth rate in total shareholder return over the last five years. Sedgwick's extensive experience in healthcare operations and real estate investments positions him well for this leadership role.

CareTrust REIT (NASDAQ:CTRE) announced the appointment of James Callister as General Counsel and Secretary, and the promotion of Lauren Beale to Senior Vice President and Controller. Both individuals have been key contributors since the company's inception. Greg Stapley, CEO, highlighted their roles in enhancing the management team and driving future success. Beale has expanded her responsibilities in finance and investor relations, while Callister brings extensive experience in real estate and healthcare transactions. This leadership transition aims to solidify CareTrust's growth prospects.

CareTrust REIT (NASDAQ:CTRE) announced it will release its fourth quarter and full year 2020 financial results on February 10, 2021, after U.S. markets close. The company will host a conference call to discuss the results on February 11, 2021, at 1:00 p.m. ET. Investors can participate via phone or listen online. CareTrust REIT focuses on owning and leasing skilled nursing and healthcare-related properties, emphasizing growth through acquisitions and quality operators. Further information is accessible on their investor website.

CareTrust REIT (NASDAQ:CTRE) disclosed the tax status of its 2020 dividends, reporting a total of $1.00 distributed to shareholders, with $0.75 qualifying as ordinary dividends. For tax purposes, the January 2021 distribution is classified as a 2021 distribution due to earnings exceeding cash distributions in 2020. Record shareholders will see $0.25 reported in 2021, not 2020. Tax implications vary by state, and the company advises consulting tax advisors regarding reporting these dividends.

On December 17, 2020, CareTrust REIT (NASDAQ:CTRE) declared a quarterly cash dividend of $0.25 per share, to be paid on or about January 15, 2021, to shareholders of record as of December 31, 2020. Despite the challenges posed by the COVID-19 pandemic, the company reported a 99.7% collection rate of its contractual cash rents for the fourth quarter. This strong performance highlights the adaptability and resilience of CareTrust's tenants in a difficult economic climate.

CareTrust REIT (NASDAQ:CTRE) announced a $15 million secured mezzanine loan to Next Healthcare for acquiring a nine-property skilled nursing portfolio in Virginia, comprising around 1,000 beds. This transaction aims to bolster relationships and aligns with CareTrust's investment philosophy of enhancing superior care outcomes. The loan features a five-year maturity with a 12% annual interest rate and is financed through CareTrust’s $600 million unsecured revolving credit facility.

CareTrust REIT (NASDAQ:CTRE) announced the acquisition of four post-acute care facilities in the Dallas-Ft. Worth area for $47.6 million. The portfolio includes 554 skilled nursing beds and 24 assisted living beds, currently leased to The Ensign Group. With an in-place EBITDAR rent coverage exceeding 2.0x, this strategic acquisition increases CareTrust's rent concentration with Ensign from 31.5% to 33.0%. The acquisition is funded through cash on hand and a $600 million credit facility, with existing leases providing approximately $3.8 million annually.