CareTrust REIT reported fourth‑quarter 2025 results that surpassed consensus estimates. Net income rose to $111.3 million, or $0.50 per diluted share, while normalized FFO reached $104.1 million, or $0.47 per diluted share. Revenue for the quarter was $134.9 million, beating the $112.8 million consensus estimate by $22.1 million, a 19% increase. The earnings beat was driven by robust demand in the company’s core skilled‑nursing‑facility segment, strong pricing power, and disciplined cost management that kept operating margins healthy.
The full‑year 2025 performance continued the upward trajectory. Net income totaled $320.5 million, or $1.57 per diluted share, and normalized FFO reached $359.7 million, or $1.76 per diluted share. Annual revenue of $476.4 million also exceeded expectations, reflecting record external growth and a $1.8 billion investment program that expanded the portfolio across the U.S., U.K. care‑home, and Senior Housing Operating Portfolio platforms. The diversified mix helped offset any regional headwinds and reinforced the company’s growth strategy.
Cash and balance‑sheet strength remained a cornerstone of the results. CareTrust held approximately $100 million in cash and had no outstanding borrowings on its $1.2 billion revolving credit facility. The company’s net‑debt‑to‑EBITDA ratio of 0.7x underscores a conservative leverage profile that provides flexibility for future acquisitions and capital deployment.
Looking ahead, management raised 2026 guidance, projecting net income of $1.45–$1.50 per share and normalized FFO and FAD of $1.90–$1.95 per share, a 9.4% increase over 2025 figures. While the guidance is below the consensus estimate of $2.06, it signals confidence in continued demand across the three‑engine platform, a robust investment pipeline, and the ability to maintain low leverage. The company’s leadership emphasized that the guidance reflects a balanced view of market conditions and the firm’s disciplined execution.
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