CareTrust REIT — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $83.7 million ($0.35 per diluted share) for the quarter ended September 30, 2026, consistent with the prior year quarter.
• Reported Normalized FFO of $129.2 million ($0.54 per diluted share), a 20% increase year-over-year.
• Reported Normalized FAD of $127.0 million ($0.53 per diluted share), a 20% increase year-over-year.
• Achieved 100.0% collection of contractual rent and interest.
• Net Debt to Annualized Normalized Run Rate EBITDA stood at 1.4x as of quarter end.
• Total revenues for the quarter were $176.4 million, compared to $132.4 million in the prior year quarter.
• Rental income increased to $127.2 million from $104.3 million in the prior year quarter.

Guidance and Future Outlook:

• Increased 2026 guidance midpoints, projecting net income of $1.50 to $1.51 per share, Normalized FFO of $2.08 to $2.09 per share, and Normalized FAD of $2.04 to $2.05 per share.
• Updated guidance assumes a weighted average diluted share count of 240 million shares.
• Guidance assumes 2.5% inflation-based rent escalators under long-term triple net leases and no material change in the GBP:USD spot exchange rate.
• Management projects the midpoints of updated Normalized FFO and Normalized FAD represent increases of 18.5% and 16.2%, respectively, over 2025 results.
• Full-year guidance assumes no new investments, loans, or dispositions beyond those made or announced year-to-date, and no new debt or equity issuances beyond those made year-to-date.

Business Segments and Product Lines:

• Closed $739.5 million of investment activity during the quarter at a blended stabilized yield of 8.3%.
• Year-to-date 2026 investment activity totaled approximately $2.9 billion at a blended stabilized yield of 8.1%.
• Post-quarter end, closed the initial acquisition of 45 newly built U.K. care homes from LNT Care Developments for approximately £1.1 billion ($733 million), with 23 homes acquired on October 1, 2026, and the remaining 22 homes expected to be acquired on a rolling basis through 2027.
• Closed $273.8 million of other investment activity post-quarter end at a blended stabilized yield of 10.6%.
• Maintains an investment pipeline of $1.2 billion, including the remaining LNT homes.
• Generated $578.2 million in gross proceeds from the settlement of the May 2026 forward equity offering and $280.5 million from equity issued under the ATM Program.

Market and Competitive Landscape:

• The company operates across skilled nursing, seniors housing (SHOP), and U.K. care homes.
• Management described the relationship with LNT as a multiplier to SHOP and U.K. care home growth engines.
• The company has a portfolio of long-term net-leased properties spanning the United States and United Kingdom.

Risks and Challenges:

• Forward-looking statements are subject to risks including tenant/operator performance, bankruptcy, or financial deterioration of tenants.
• Risks include the impact of healthcare reform legislation, reimbursement rates, and minimum staffing level requirements.
• Potential risks involve the inability to renew agreements, reposition properties, or generate sufficient cash flows to service indebtedness.
• International investments carry additional operational, legal, and currency fluctuation risks.
• Risks include the potential for impairment charges on asset sales and unfavorable resolution of litigation or disputes.

Management Commentary and Tone:

• CEO Dave Sedgwick stated that Normalized FFO per share increased 20% year-over-year and the team set a record of approximately $2.9 billion invested across skilled nursing, SHOP, and U.K. care homes.
• Sedgwick commented that the "CareTrust flywheel continues to accretively deliver year-over-year growth" and expressed excitement for the runway ahead.
• CFO Derek Bunker noted that leverage is well below the target range and the company has multiple levers across its capital toolkit to fund growth.
• Bunker highlighted that the new term loan and expanded revolver extend the company's runway and provide capacity to fund the acquisition of remaining LNT homes and the rest of the pipeline.

Other Key Points:

• Declared a quarterly dividend of $0.39 per share, representing a payout ratio of approximately 74% of Normalized FAD.
• Closed a new $700 million unsecured term loan maturing in 2032.
• Expanded the unsecured revolving credit facility to $2.0 billion, with $1.6 billion available as of November 4, 2026.
• As of November 4, 2026, the company had $100 million in cash on hand and $425 million in borrowings outstanding on the revolving credit facility.
• No scheduled debt maturities are expected prior to 2028.
• Approximately $599 million remains available for future issuances under the ATM Program.