CareTrust REIT, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $277.5 million, a 39.7% increase from $198.6 million in 2023. The company’s rental income rose by 15% to $228.3 million, driven by new real estate investments and increased rental rates. Additionally, interest income from financing receivables contributed $1.0 million, marking a full-year contribution for the first time. The company also saw a substantial rise in interest income from other real estate-related investments, which surged by 250% to $67.0 million, primarily due to new loan originations.
In terms of operational metrics, CareTrust REIT owned and leased 258 skilled nursing facilities, assisted living facilities, and independent living facilities, totaling 28,088 operational beds across 32 states. The company’s portfolio is geographically diverse, with a concentration of properties in California and Texas. The occupancy rates for skilled nursing facilities improved to 79% from 75% in the previous year, while assisted living facilities maintained a 74% occupancy rate. The company’s strategic focus on acquiring additional properties and enhancing existing ones has contributed to this growth.
CareTrust REIT has actively pursued acquisitions, completing several significant transactions in 2024. The company acquired multiple skilled nursing and assisted living facilities, with a total investment of approximately $1.5 billion in real estate and related investments. Additionally, the company disposed of 17 facilities, generating net proceeds of $17.7 million, although this resulted in a net loss on sale of $2.2 million. The company also recognized impairment charges of $42.2 million during the year, reflecting adjustments to the carrying value of certain assets.
The company’s financial outlook remains cautiously optimistic, with management anticipating continued growth in rental income and occupancy rates. However, challenges such as rising interest rates, inflationary pressures, and regulatory changes, particularly in California, may impact future performance. The company has also noted that its tenants are facing increased operating costs, which could affect their ability to meet financial obligations. CareTrust REIT plans to maintain its focus on strategic acquisitions and operational efficiencies to navigate these challenges while continuing to provide returns to its shareholders.
Overall, CareTrust REIT's financial results for 2024 reflect a strong recovery and growth trajectory, supported by strategic investments and a diversified portfolio, despite facing potential headwinds from market conditions and regulatory changes.
About CareTrust REIT, Inc.
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