CareTrust REIT — Third Quarter 2026 Earnings Summary

Financial Performance

• Reported net income of $83.7 million ($0.35 per diluted share), consistent with the prior year quarter.
• Reported Normalized FFO of $129.2 million ($0.54 per diluted share), a 20% increase ($0.09) year-over-year.
• Reported Normalized FAD of $127.0 million ($0.53 per diluted share), a 20% increase ($0.09) year-over-year.
• Total revenues for the quarter were $176.4 million, up from $132.4 million in the prior year quarter.
• Net Debt to Annualized Normalized Run Rate EBITDA was 1.4x, below the company's target leverage range of 4.0x to 5.0x.
• Net debt-to-enterprise value was approximately 8.5%.
• Achieved 100.0% collection of contractual rent and interest.
• Declared a quarterly dividend of $0.39 per share, representing a payout ratio of approximately 74% of Normalized FAD.

Guidance and Future Outlook

• Increased 2026 guidance midpoints, projecting net income attributable to CareTrust of $1.50 to $1.51 per share.
• Projected 2026 Normalized FFO of $2.08 to $2.09 per share, representing an 18.5% increase over 2025 results.
• Projected 2026 Normalized FAD of $2.04 to $2.05 per share, representing a 16.2% increase over 2025 results.
• Guidance assumes a weighted average diluted share count of 240 million shares.
• Assumes 2.5% inflation-based rent escalators under long-term triple net leases.
• Assumes $147 million of loans will be fully repaid throughout the year.
• Assumes no material change in the GBP:USD spot exchange rate.
• Assumes no new investments, loans, dispositions, debt issuances, or equity issuances beyond those made or announced year-to-date.

Business Segments and Product Lines

• Closed $739.5 million of investment activity in 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%.
• Closed $273.8 million of additional investment activity subsequent to quarter end at a blended stabilized yield of 10.6%.
• Acquired 45 newly built U.K. care homes from LNT Care Developments for approximately £1.1 billion; 23 homes acquired on October 1, 2026, for £552 million ($733 million), with the remaining 22 homes expected to be acquired on a rolling basis through 2027 for £528 million.
• Maintains an investment pipeline of $1.2 billion, including the remaining LNT homes.
• Portfolio spans skilled nursing, seniors housing (SHOP), and U.K. care homes.

Market and Competitive Landscape

• Management described the "CareTrust flywheel" as accretively delivering year-over-year growth of the asset base and FFO.
• The relationship with LNT is characterized as a multiplier to SHOP and U.K. care home growth engines.
• Company has $1.6 billion available under its expanded $2.0 billion unsecured revolving credit facility as of November 4, 2026.
• Has $599 million available for future issuances under its ATM Program.

Risks and Challenges

• Forward-looking statements are subject to risks including tenant/manager operational success, bankruptcy, or financial deterioration.
• Risks include healthcare reform legislation, reimbursement rates, and minimum staffing level requirements.
• Potential risks involve the inability to renew agreements or reposition properties on favorable terms.
• Risks include impairment charges if assets cannot be sold at expected prices.
• Exposure to public health crises, unfavorable litigation resolution, and rising liability/insurance costs.
• Risks associated with international investments, specifically U.K. investments and the RIDEA structure.
• Risks related to the intended benefits of the LNT Transaction not being realized, including SHOP transition timelines.
• Risks include changes in U.S. and U.K. tax laws, fluctuating interest and currency rates, and access to capital markets.

Management Commentary and Tone

• CEO Dave Sedgwick stated the team set a record of approximately $2.9 billion invested across skilled nursing, SHOP, and U.K. care homes while positioning the balance sheet for continued strong growth.
• CFO Derek Bunker noted the new term loan and expanded revolver extend the company's runway and provide substantial capacity to fund the acquisition of remaining LNT homes and the rest of the pipeline.
• Management expressed high confidence, stating, "We've never been more excited for the runway ahead."
• Management highlighted that leverage is well below the target range and multiple levers across the capital toolkit are available to fund growth at the current pace.

Other Key Points

• Closed a new $700 million unsecured term loan maturing in 2032.
• Expanded the unsecured revolving credit facility to $2.0 billion.
• As of November 4, 2026, the company has $425 million in borrowings outstanding on its revolving credit facility with no scheduled debt maturities prior to 2028.
• Held $100 million in cash on hand as of November 4, 2026.
• Received $578.2 million in gross proceeds from the settlement of the May 2026 forward equity offering.
• Received $280.5 million in gross proceeds from equity issued under the ATM Program.
• Conference call scheduled for November 6, 2026, at 11:00 am ET.