CareTrust REIT Reports 63.3% Revenue Growth to $112.5 Million in Latest Quarter

CareTrust REIT, Inc. reported significant financial growth in its latest quarterly results, with total revenues reaching $112.5 million for the three months ended June 30, 2025, a 63.3% increase from $68.9 million in the same period last year. The company’s net income attributable to CareTrust REIT, Inc. was $68.5 million, compared to $10.8 million in the prior year, resulting in earnings per share of $0.36, up from $0.07. For the six months ended June 30, 2025, total revenues were $209.1 million, a 58.5% increase from $132.0 million in the previous year, with net income of $134.3 million compared to $39.5 million.

The substantial growth in revenue and profitability can be attributed to a combination of factors, including increased rental income from new acquisitions and higher interest income from financing receivables. Rental income alone surged to $86.0 million for the quarter, up from $55.4 million a year earlier, driven by the acquisition of Care REIT plc and other real estate investments. The company also reported a notable increase in interest income from other real estate-related investments, which rose to $23.6 million from $13.5 million year-over-year.

In terms of strategic developments, CareTrust REIT completed the acquisition of Care REIT plc on May 8, 2025, for approximately $595.4 million, which included assuming liabilities of about $290.9 million. This acquisition expanded the company’s portfolio significantly, adding 134 U.K. care homes and enhancing its operational capacity. As of June 30, 2025, CareTrust owned 400 skilled nursing facilities and other healthcare-related properties across 32 states and the U.K., totaling 36,162 operational beds and units.

Operationally, the company reported a total asset value of $4.7 billion as of June 30, 2025, up from $3.4 billion at the end of 2024. The increase in assets was primarily driven by the acquisition of Care REIT and other investments. The company’s cash and cash equivalents also rose to $306.1 million from $213.8 million at the end of 2024. CareTrust's total liabilities increased to $1.3 billion, reflecting the debt assumed in connection with the acquisition. The company maintained a strong liquidity position, with net cash provided by operating activities amounting to $172.2 million for the six months ended June 30, 2025, compared to $101.8 million in the prior year.

Looking ahead, CareTrust REIT expressed optimism about its growth trajectory, citing the successful integration of Care REIT and the potential for further acquisitions. The company plans to leverage its strong cash flow and available capital to pursue additional investment opportunities in the healthcare real estate sector. However, it also acknowledged the challenges posed by current macroeconomic conditions, including rising interest rates and inflation, which could impact its tenants' financial performance and, consequently, the company's rental income.