CareTrust REIT Announces Third Quarter 2026 Operating Results; Updates 2026 Guidance Conference Call Scheduled for Friday, November 6, 2026 at 11:00 am ET
CareTrust REIT, Inc. (CTRE) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 CareTrust REIT Announces Third Quarter 2026 Operating Results; Updates 2026 Guidance Conference Call Scheduled for Friday, November 6, 2026 at 11:00 am ET DANA POINT, Calif., November 5, 2026 (BUSINESS WIRE) -- CareTrust REIT, Inc. (NYSE:CTRE) today reported operatin
How this was made
The 30-second read
Why it matters
The guidance raise signals stronger cash‑flow generation and may attract income‑focused investors, while the expanded credit facilities provide financial flexibility.
Market read
Guidance raise and acquisition activity are material for the REIT sector and could influence peer pricing.
What to watch
Potential interest‑rate risk could affect borrowing costs despite the new term loan.
CareTrust REIT Announces Third Quarter 2026 Operating Results; Updates 2026 Guidance
Normalized FFO per diluted share increased 20% year-over-year to $0.54, Normalized FAD per diluted share increased 20% to $0.53, total revenues rose to $176,360 (in thousands), and the Company increased its 2026 Normalized FFO and Normalized FAD guidance midpoints.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenuesGAAP | $176.4M | – | – |
| Q3 2026 rental incomeGAAP | $127.2M | – | – |
| Q3 2026 resident fees and servicesGAAP | $7.23M | – | – |
| Q3 2026 interest income from financing receivablesGAAP | $14.03M | – | – |
| Q3 2026 interest income from other real estate related investments and other incomeGAAP | $27.87M | – | – |
| Q3 2026 total expensesGAAP | $84.12M | – | – |
| Q3 2026 depreciation and amortizationGAAP | $33.26M | – | – |
| Q3 2026 interest expenseGAAP | $17.72M | – | – |
| Q3 2026 property taxes and insuranceGAAP | $2.85M | – | – |
| Q3 2026 senior housing operating expensesGAAP | $5.85M | – | – |
| Q3 2026 transaction costsGAAP | $8.93M | – | – |
| Q3 2026 general and administrativeGAAP | $15.62M | – | – |
| Q3 2026 unrealized loss on other real estate related investments, netGAAP | −$7.26M | – | – |
| Q3 2026 income before income tax expenseGAAP | $85.10M | – | – |
| Q3 2026 net incomeGAAP | $82.17M | – | – |
| Q3 2026 net income attributable to CareTrust REIT, Inc.GAAP | $83.65M | – | – |
| Q3 2026 diluted earnings per common share attributable to CareTrust REIT, Inc.GAAP | $ 0.35 | – | consistent with the prior year quarter |
| Q3 2026 Normalized EBITDA attributable to CareTrust REIT, Inc.non-GAAP | $153.0M | – | – |
| Q3 2026 Normalized Run Rate EBITDA attributable to CareTrust REIT, Inc.non-GAAP | $160.0M | – | – |
| Q3 2026 FFO attributable to CareTrust REIT, Inc.non-GAAP | $113.1M | – | – |
| Q3 2026 Normalized FFO attributable to CareTrust REIT, Inc.non-GAAP | $129.2M | – | – |
| Q3 2026 Normalized FFO per share attributable to CareTrust REIT, Inc.non-GAAP | $ 0.54 | – | an increase of $0.09, or 20%, over the prior year quarter |
| Q3 2026 FAD attributable to CareTrust REIT, Inc.non-GAAP | $110.9M | – | – |
| Q3 2026 Normalized FAD attributable to CareTrust REIT, Inc.non-GAAP | $127.0M | – | – |
| Q3 2026 Normalized FAD per share attributable to CareTrust REIT, Inc.non-GAAP | $ 0.53 | – | an increase of $0.09, or 20%, over the prior year quarter |
| Q3 2026 Net Debt to Annualized Normalized Run Rate EBITDA attributable to CareTrust REIT, Inc.non-GAAP | 1.37x | – | – |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $380.0M | – | – |
| Nine months ended September 30, 2026 net cash used in investing activitiesGAAP | −$2.35B | – | – |
| Nine months ended September 30, 2026 net cash provided by financing activitiesGAAP | $2.26B | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Updated Full Year 2026 Guidance outlook
- NoteNet income attributable to CareTrust REIT, Inc. of $ 359 million to $ 363 million; $ 1.50 to $ 1.51 per share
- NoteFunds from Operations (FFO) of $ 478 million to $ 482 million; $ 2.00 to $ 2.01 per share
- NoteNormalized FFO of $ 498 million to $ 502 million; $ 2.08 to $ 2.09 per share
- NoteFunds Available for Distribution (FAD) of $ 469 million to $ 473 million; $ 1.96 to $ 1.97 per share
- NoteNormalized FAD of $ 489 million to $ 493 million; $ 2.04 to $ 2.05 per share
- NoteWeighted average diluted shares outstanding of 240 million
- NoteCash rental revenue of $478 million at the midpoint
- NoteInterest income from financing receivables of $43 million at the midpoint
- NoteInterest income from loans and other investments of $110 million at the midpoint
- NoteGeneral and administrative expense of $64 million at the midpoint
- NoteInterest expense of $71 million at the midpoint
- NoteIncome tax expense of $13 million at the midpoint
Capital returns
- A quarterly dividend of $0.39 per common share was declared during the quarter.
- The quarterly dividend represented a payout ratio of approximately 72% based on third quarter 2026 Normalized FFO and 74% based on third quarter 2026 Normalized FAD.
- Dividends declared per common share were $ 0.39 for the three months ended September 30, 2026, compared with $ 0.335 for the three months ended September 30, 2025.
- Dividends paid on common stock were $ 255,415 (in thousands) for the nine months ended September 30, 2026.
What drove it
- $739.5 million of investment activity closed during the quarter at a blended stabilized yield of 8.3%.
- $273.8 million of other investment activity closed subsequent to quarter end at a blended stabilized yield of 10.6%.
- 2026 year-to-date investments were approximately $2.9 billion at a blended stabilized yield of 8.1%.
- The initial closing of the LNT acquisition comprised 23 homes acquired on October 1, 2026 for £552 million ($733 million), exclusive of transaction costs.
- The remaining 22 LNT homes are expected to be acquired on a rolling basis through 2027 for £528 million.
- The Company reported 100.0% collection of contractual rent and interest.
- The Company settled its May 2026 forward equity offering for $578.2 million of gross proceeds and issued $280.5 million of equity under the ATM Program.
Concerns
- Q3 2026 transaction costs were $ 8,933 (in thousands), compared with $ 560 (in thousands) in the prior-year quarter.
- Q3 2026 interest expense was $ 17,716 (in thousands), compared with $ 12,622 (in thousands) in the prior-year quarter.
- Q3 2026 included an unrealized loss on other real estate related investments, net, of $ (7,262) (in thousands), compared with an unrealized gain of $ 3,603 (in thousands) in the prior-year quarter.
- The Company identified risks related to tenant, manager and borrower performance, healthcare reimbursement and staffing requirements, U.K. investments, RIDEA structures, interest rates and currency rates.
- Full-year guidance assumes no material change in the GBP:USD spot exchange rate.
What to watch
- Execution of the remaining acquisition of 22 LNT homes through 2027 for £528 million.
- Deployment against the $1.2 billion investment pipeline, including the remaining LNT homes.
- The impact of the new $700 million unsecured term loan maturing in 2032 and the expanded $2.0 billion unsecured revolving credit facility on investment funding.
- The $147 million of loans assumed to be fully repaid throughout 2026 under the Company's guidance assumptions.
- Progress toward the Company's target leverage range of 4.0x to 5.0x from Net Debt-to-Annualized Normalized Run Rate EBITDA of 1.4x.
Balance sheet and cash flow
- Cash and cash equivalents were $ 479,876 (in thousands) as of September 30, 2026.
- Total debt was $ 2,075,000 (in thousands) as of September 30, 2026.
- Net Debt was $ 874,173 (in thousands) as of September 30, 2026.
- Total assets were $ 7,706,317 (in thousands) as of September 30, 2026.
- Total liabilities were $ 2,336,316 (in thousands) as of September 30, 2026.
- Net cash provided by operating activities was $ 379,996 (in thousands) for the nine months ended September 30, 2026.
- Acquisitions of real estate, net of deposits applied, were $ (933,165) (in thousands) for the nine months ended September 30, 2026.
- Investment in financing receivables was $ (467,239) (in thousands) for the nine months ended September 30, 2026.
- Escrow deposits for potential acquisitions of real estate were $ (713,776) (in thousands) for the nine months ended September 30, 2026.
- Proceeds from the issuance of common stock, net, were $ 1,339,257 (in thousands) for the nine months ended September 30, 2026.
- As of November 4, 2026, total debt was $ 2,025,000 (in thousands), including $ 425,000 (in thousands) outstanding on the unsecured revolving credit facility.
- As of November 4, 2026, the Company had $1.6 billion available under its $2.0 billion unsecured revolving credit facility and $100 million of cash on hand.
Analysis
CareTrust reported a strong third quarter, led by total revenues of $ 176,360 (in thousands), compared with $ 132,444 (in thousands) in the prior-year quarter and $ 161,348 (in thousands) in the prior quarter. Rental income was $ 127,236 (in thousands), interest income from financing receivables was $ 14,030 (in thousands), and resident fees and services were $ 7,226 (in thousands). The latter revenue category was not reported in the prior-year quarter, while financing-receivable interest income was $ 2,908 (in thousands) a year earlier. The Company also reported 100.0% collection of contractual rent and interest.
GAAP net income attributable to CareTrust REIT, Inc. was $ 83,653 (in thousands), or $ 0.35 per diluted share, with diluted EPS consistent with the prior-year quarter. The operating measures highlighted by management improved more sharply: Normalized FFO was $ 129,236 (in thousands), or $ 0.54 per share, and Normalized FAD was $ 126,997 (in thousands), or $0.53 per share. Both per-share measures increased by $0.09, or 20%, over the prior-year quarter. Sequentially, Normalized FFO per share increased from $0.51 and Normalized FAD per share increased from $0.51 in the second quarter.
Expense growth reflects the scale of portfolio activity and financing. Interest expense was $ 17,716 (in thousands), transaction costs were $ 8,933 (in thousands), and senior housing operating expenses were $ 5,852 (in thousands). The quarter also included an unrealized loss on other real estate related investments, net, of $ (7,262) (in thousands). Management closed $739.5 million of investment activity during the quarter at a blended stabilized yield of 8.3%, then closed $273.8 million of other investment activity after quarter end at a blended stabilized yield of 10.6%. Year-to-date investments were approximately $2.9 billion at a blended stabilized yield of 8.1%.
The balance sheet is positioned for additional acquisitions. Net Debt-to-Annualized Normalized Run Rate EBITDA was 1.4x, below the Company's 4.0x to 5.0x target leverage range. Subsequent to quarter end, CareTrust closed a new $700 million unsecured term loan maturing in 2032 and expanded its unsecured revolving credit facility to $2.0 billion. As of November 4, 2026, the Company reported $1.6 billion available under the revolver and $100 million of cash on hand. The initial LNT closing added 23 U.K. care homes on October 1, 2026 for £552 million ($733 million), exclusive of transaction costs, and 22 additional homes are expected to be acquired through 2027 for £528 million.
CareTrust increased its 2026 guidance midpoints and raised the low ends of its Normalized FFO and Normalized FAD ranges. Updated guidance calls for Normalized FFO of $2.08 to $2.09 per share and Normalized FAD of $2.04 to $2.05 per share, alongside net income attributable to CareTrust of $1.50 to $1.51 per share. The outlook assumes no new investments, loans or dispositions beyond those made or announced year-to-date, no new debt or equity issuances beyond those made year-to-date, $147 million of loan repayments, and no material change in the GBP:USD spot exchange rate. The quarterly dividend remained $0.39 per common share, with payout ratios of approximately 72% of third-quarter Normalized FFO and 74% of third-quarter Normalized FAD.
Management, verbatim
Normalized FFO per share increased 20% year-over-year and the team set another record of approximately $2.9 billion invested across skilled nursing, SHOP, and UK care homes, all while positioning the balance sheet for continued strong growth in the near to mid-term.
Dave Sedgwick, Chief Executive Officer
The CareTrust flywheel continues to accretively deliver year-over-year growth of our asset base and FFO. The relationship with LNT is a multiplier to our SHOP and UK care home growth engines. We've never been more excited for the runway ahead.
Dave Sedgwick, Chief Executive Officer
The midpoints of our updated Normalized FFO and Normalized FAD guidance represent increases of 18.5% and 16.2%, respectively, over 2025 results. The new term loan and expanded revolver extend our runway and give us substantial capacity to fund the acquisition of the remaining LNT homes and the rest of our pipeline.
Derek Bunker, Chief Financial Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating income was not reported.
- A tax rate was not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- Reportable operating segment revenue was not reported.
- Prior-quarter values for Net Debt to Annualized Normalized Run Rate EBITDA and Normalized Run Rate EBITDA were not reported.
- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
CareTrust REIT reported Q3 2026 results, disclosed new acquisitions in the UK, and raised its 2026 guidance.
Ticker impact
updated 2026 guidance raising the low end of Normalized FFO and Normalized FAD estimates
likely upward pressure as investors price in higher FFO expectations
The REIT increased its guidance midpoints, a material signal of improved performance, and disclosed new financing capacity.
Market effects
reinforces bullish view on healthcare REITs and may lift peer valuations
positive for US and UK property markets where the REIT holds assets
limited to REIT and real‑estate investment community
Counterpoint
If the higher guidance is already priced in, the stock may face a short‑term pullback.
Key entities
- companyCareTrust REIT, Inc.
US‑listed REIT focused on skilled nursing and senior housing.
- partnerLNT Care Developments
Seller of UK care homes acquired by CareTrust.
