On Thursday, shares of CareTrust REIT, Inc. (NASDAQ: CTRE) oscillated between $17.25 and $17.52 before concluding trading period lower/higher -0.06% or 17.30 at $-0.01. The stock recorded total trading quantity of 217,751 shares as compared to its ninety days average volume of 528,689 shares.
CareTrust REIT, Inc. (CTRE) recently stated operating results for the quarter ended June 30, 2018, as well as other recent events.
For the quarter, CareTrust REIT stated:
- Net income of $13.3M, and net income per diluted weighted-average ordinary share of $0.17;
- Normalized FFO of $24.5M, an raise of 19%, and normalized FFO per diluted weighted-average ordinary share of $0.32, an raise of 14% over Q2 2017;
- Normalized FAD of $25.6M, an raise of 18%, and normalized FAD per diluted weighted-average ordinary share of $0.33, an raise of 10% over Q2 2017;
- A net debt-to-normalized EBITDA ratio of 4.1x and a debt-to-enterprise value of 29%, each as of quarter-end.
Financial Results for Quarter Ended June 30, 2018
- Chief Financial Officer Bill Wagner stated that, for the second quarter, CareTrust REIT generated net income of $13.3M, or $0.17 per diluted weighted-average ordinary share, normalized FFO of $24.5M, or $0.32 per diluted weighted-average ordinary share, and normalized FAD of $25.6M, or $0.33 per diluted weighted-average ordinary share. “We are happy to be delivering a quarter-over-quarter raise in normalized FFO per share of 14%,” stated Mr. Wagner.
- Discussing CareTrust REIT’s current liquidity, Mr. Wagner noted that the acquisition-light quarter allowed the Company to importantly pay down the outstanding balance on its $400M revolving credit facility. “We have used retained FFO and proceeds of equity sales under our at-the-market equity program to reduce our loan balance to about $130M as of recently, leaving plenty of liquidity for near-term growth,” he stated. He further noted that the revolving credit facility includes an additional $250M “accordion” feature that can be exercised by the Company if additional liquidity is needed.
- Wagner also stated that, during the quarter and since, CareTrust REIT issued about 4.9M shares of ordinary stock through the Company’s at-the-market equity program at an average price of $16.50 per share, for $80.2M in gross proceeds. “Our ATM program remains a important instrument in the Company’s capital-raising repertoire, with up to $155.9M remaining in authorization at present,” he stated. Mr. Wagner stated that CareTrust REIT’s net debt-to-normalized EBITDA ratio was 4.1x and its debt-to-enterprise value was 29%, each at quarter-end, which is well within management’s target leverage range. He also noted that CareTrust REIT continues to have no property-level debt and, taking into account existing extension rights, no debt maturing before 2020.
2018 Guidance Updated
- Wagner updated CareTrust REIT’s 2018 earnings guidance, projecting on a per-diluted weighted-average ordinary share basis, net income of about $0.71 to $0.73, normalized FFO of about $1.26 to $1.28, and normalized FAD of about $1.32 to $1.34. He noted that the 2018 guidance is based on a diluted weighted-average ordinary share count of 78.4M shares and assumes no new acquisitions beyond those made to date, no new debt incurrences or new equity issuances, and 2.0% CPI-based rent escalators under CareTrust REIT’s long-term net leases.
- During the quarter, CareTrust REIT reported a quarterly dividend of $0.205 per ordinary share. “On an annualized basis, our quarterly dividend represents a payout ratio of about 64% based on the second quarter 2018 normalized FFO, and 62% on normalized FAD,” stated Mr. Wagner. “At this level, our dividend remains among the best-protected of all our industry peers, while simultaneously providing additional growth capital for reinvestment and a solid overall return to our shareholders,” he added.
EPS growth for this year is -32.30% and EPS growth for next year is expected to reach at 3.76%. EPS growth in past five years was 135.00% while EPS growth in next five years is projected to arrive at 30.30%. Sales growth past 5 years was measured at 25.90%.
Brian Johnson – Market Movers
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