CareTrust REIT — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported net income of $89.0 million ($0.38 per diluted share) for the quarter ended June 30, 2026, an increase of 9% ($0.03) year-over-year.
• Reported Normalized FFO of $119.7 million ($0.51 per diluted share) and Normalized FAD of $118.5 million ($0.51 per diluted share), both representing a 19% increase ($0.08 per share) year-over-year.
• Total revenues for the quarter were $161.3 million, compared to $112.5 million in the prior year quarter.
• Net Debt to Annualized Normalized Run Rate EBITDA was 1.01x as of quarter end, down from 2.0x in the prior year period.
• Net debt-to-enterprise value was approximately 5.4%.
• Achieved 100.0% collection of contractual rent and interest.
• Total investment activity closed during the quarter was $899.6 million at a blended stabilized yield of 8.9%.

Guidance and Future Outlook

• Increased 2026 guidance to project net income of $1.53 to $1.56 per share, Normalized FFO of $2.03 to $2.06 per share, and Normalized FAD of $2.01 to $2.04 per share.
• The midpoints of the new Normalized FFO and Normalized FAD guidance represent increases of 16.2% and 15.1%, respectively, over 2025 results.
• Full-year 2026 guidance assumes a weighted average diluted share count of 233 million shares.
• Guidance assumptions include 2.5% inflation-based rent escalators, $147 million of loan repayments, no new investments/loans/dispositions beyond year-to-date, no new debt/equity issuances beyond year-to-date, and no material change in the GBP:USD spot exchange rate.
• Year-to-date investment deployment was approximately $1.5 billion at a blended stabilized yield of roughly 8.7%.
• Post-quarter end, $307.9 million of investment activity closed at a blended stabilized yield of 7.8%.

Business Segments and Product Lines

• Portfolio includes long-term net-leased properties spanning the United States and United Kingdom, with a growing portfolio of quality operators.
• Pursues both external and organic growth opportunities across the United States and internationally.
• Senior housing operating expenses for the quarter were $3.7 million, compared to $0 in the prior year quarter.
• Resident fees and services revenue was $4.6 million for the quarter, compared to $0 in the prior year quarter.

Market and Competitive Landscape

• Management describes the opportunity set as expanded with great relationships with partners and high-quality operators.
• Company maintains a "fortress balance sheet" and deep relationships across capital markets to support aggressive external growth.

Risks and Challenges

• Forward-looking statements are subject to risks including tenant/operator ability to meet obligations, bankruptcy or financial deterioration of tenants, healthcare reform legislation impacts, and potential impairment charges on asset sales.
• Risks include the inability to renew agreements or reposition properties on favorable terms, public health crises, and risks associated with international investments (specifically Care REIT plc).
• Operational and legal risks associated with RIDEA structures, litigation resolution, and rising liability/insurance costs are noted.
• Risks include the ability to maintain REIT status, changes in U.S. and U.K. tax laws, and fluctuations in interest and currency rates.

Management Commentary and Tone

• CEO Dave Sedgwick characterized Q2 as another record quarter, citing momentum generated over the past few years.
• CFO Derek Bunker stated that liquidity and capital access remain in great shape, providing flexibility to fund investments at the current pace.
• Management expressed confidence in the company's balance sheet built for optionality and competitive advantages in capital markets.

Other Key Points

• Declared a quarterly dividend of $0.39 per share, representing a payout ratio of approximately 76% of Normalized FFO and Normalized FAD.
• Generated $578.2 million in gross proceeds from a forward equity offering (unsettled) and $363.6 million from settlement of equity forward contracts under the ATM Program.
• As of August 6, 2026, $605 million was available under the $1.2 billion unsecured revolving credit facility, with $595 million in borrowings outstanding.
• Approximately $90 million in cash on hand was held as of August 5, 2026.
• $671 million in gross proceeds remain outstanding under equity forward contracts.
• No scheduled debt maturities are due prior to 2028.
• Approximately $785.8 million remains available for future issuances under the ATM Program.
• A conference call is scheduled for August 7, 2026, at 11:00 a.m. ET.