CareTrust REIT, Inc. reported significant financial growth in its latest quarterly results, with total revenues reaching $96.6 million for the three months ended March 31, 2025, compared to $63.1 million for the same period in 2024, marking a 53% increase. The company's rental income surged to $71.6 million, up from $53.5 million, driven by new acquisitions and increased rental rates. Additionally, interest income from financing receivables contributed $2.8 million, a notable increase from zero in the previous year. The net income attributable to CareTrust REIT, Inc. was $65.8 million, significantly higher than $28.7 million reported in the prior year, resulting in earnings per share of $0.35, up from $0.22.
The company experienced a 9% increase in total expenses, which rose to $36.6 million from $33.7 million year-over-year. This increase was primarily due to higher depreciation and amortization costs, which rose to $17.8 million from $13.4 million, reflecting the impact of recent acquisitions. Interest expenses decreased to $6.7 million from $8.2 million, attributed to a reduction in outstanding debt. Notably, CareTrust did not recognize any impairment charges during the quarter, contrasting with $2.7 million in impairments recorded in the same period last year.
Strategically, CareTrust REIT announced a planned acquisition of Care REIT plc, a UK-based real estate investment trust focused on care homes, for approximately $856 million, which includes the assumption of Care REIT's net debt. This acquisition is expected to enhance CareTrust's portfolio and geographic footprint, as it currently operates 255 skilled nursing and assisted living facilities across 32 states, with a concentration in California, Texas, and Tennessee. The acquisition is subject to customary conditions and is anticipated to close in May 2025.
Operationally, CareTrust's portfolio included 27,672 operational beds and units, with a total future contractual minimum rental income of $2.9 billion. The company reported a 99.2% collection rate of contractual rents and interest due from operators and borrowers, indicating strong operational performance despite macroeconomic challenges. The company also maintained a robust cash position, with cash, cash equivalents, and restricted cash totaling $632.5 million as of March 31, 2025, up from $451.2 million a year earlier.
Looking ahead, CareTrust REIT remains optimistic about its growth trajectory, bolstered by its strategic acquisition plans and strong operational metrics. The company expects to continue leveraging its financial resources to pursue additional investment opportunities while managing the impacts of market conditions on its tenants' performance.
About CareTrust REIT, Inc.
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