Executive Summary

Q1 2025 was operationally strong with GAAP diluted EPS of $0.35, normalized FFO/share of $0.42, normalized FAD/share of $0.43, and 99.2% rent and interest collection, supported by continued pipeline reloading and disciplined capital deployment .
On S&P Global consensus, CTRE modestly missed: Primary EPS 0.33 vs 0.348*, Revenue $96.6M vs $98.8M*, EBITDA $84.5M vs $86.1M*, though the company’s reported diluted EPS was $0.35, highlighting definitional differences between GAAP diluted EPS and SPGI “Primary EPS” [GetEstimates].
Guidance was raised twice: on May 1 to NI/share $1.36–$1.40, NFFO/share $1.69–$1.73, NFAD/share $1.73–$1.77, and again post-close of Care REIT on May 12 to NI/share $1.42–$1.45, NFFO/share $1.75–$1.78, NFAD/share $1.75–$1.78 .
Strategic catalysts: closing of Care REIT plc (adding ~$68.6M annual rent with ~2.2x EBITDARM coverage, long WALE, inflation-linked escalators) and initiation of a $500M term loan process to support growth while keeping leverage below target ranges .

What Went Well and What Went Wrong

What Went Well

Accelerated growth and diversification: closed the U.K. Care REIT plc acquisition, adding 134 properties, ~$68.6M annual rent, and ~2.2x EBITDARM coverage; CEO: “This strategic acquisition is transformative…a new growth engine for years to come” .
Guidance raised twice and dividend increased to $0.335/share (from $0.29), with payout ratios ~80% on NFFO and ~78% on NFAD in Q1 .
Balance sheet resilience and liquidity: net debt/annualized normalized run-rate EBITDA at 0.5x; ~$45M cash on hand; $606M restricted cash escrow; ATM activity raised ~$115.5M since Q1-end, and pipeline reloaded to ~$500M; CFO: “plenty of available capital…” .

What Went Wrong

Modest miss vs SPGI consensus: Primary EPS 0.33 vs 0.348*, Revenue $96.6M vs $98.8M*, EBITDA $84.5M vs $86.1M*; GAAP diluted EPS was $0.35, underscoring definitional differences (potential stock impact if investors anchor to SPGI “Primary EPS”) [GetEstimates].
Transaction costs and higher interest expense: $0.9M non-routine transaction costs and interest expense rose to $6.7M, partly due to revolver draw to fund U.K. escrow .
Coverage metric discrepancy: call referenced fixed charge coverage ~15.2x while the Q1 debt covenant table shows 11.85x; likely different definitions/pro formas, but investors should note variance and seek clarity .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$63.070	$86.944	$96.621
GAAP Diluted EPS ($USD)	$0.22	$0.29	$0.35
Normalized EBITDA ($USD Millions)	$56.859	$79.172	$87.618
Normalized FFO ($USD Millions)	$46.505	$72.936	$77.848
Normalized FFO per share ($USD)	$0.35	$0.40	$0.42
Normalized FAD ($USD Millions)	$48.671	$74.286	$80.800
Normalized FAD per share ($USD)	$0.37	$0.41	$0.43

Actual vs SPGI Consensus – Q1 2025 (SPGI)

Metric	Actual	Consensus	Surprise
Primary EPS ($USD)	0.33*	0.34818*	(0.01818)* [GetEstimates]
Revenue ($USD Millions)	96.621	98.8475*	(2.2265)* [GetEstimates]
EBITDA ($USD Millions)	84.526*	86.11126*	(1.58526)* [GetEstimates]
EPS # of Estimates	—	6*	— [GetEstimates]
Revenue # of Estimates	—	2*	— [GetEstimates]

Values retrieved from S&P Global.
Note: Company-reported diluted EPS was $0.35, which differs from SPGI “Primary EPS” actual of $0.33 (methodological differences) [GetEstimates].

Segment/Asset-Type Mix (as of March 31, 2025)

Asset Type	Facilities	Operating Beds/Units	Investment ($USD Millions)	% of Total Investment	Rent/Interest ($USD Millions)	% of Total Rent/Interest	Current Yield
Skilled Nursing	190	20,628	$2,103.556	57.9%	$215.127	59.2%	10.2%
Multi-Service Campus	28	3,998	$459.396	12.6%	$43.087	11.8%	9.4%
Seniors Housing	31	2,603	$178.997	4.9%	$18.509	5.1%	10.3%
Financing Receivable	46	3,820	$97.072	2.7%	$11.663	3.2%	12.0%
Other Real Estate Investments	113	11,968	$793.498	21.8%	$75.295	20.7%	9.5%
Total	408	43,017	$3,632.519	100.0%	$363.681	100.0%	10.0%

Key KPIs

KPI	Q1 2025
Rent & Interest Collected (%)	99.2%
Net Debt / Annualized Normalized Run-Rate EBITDA	0.5x
Net Debt / Enterprise Value	~2.9%
Cash on Hand	~$45M
Restricted Cash (escrow for Care REIT)	$606M
ATM Issuance	Q1: 0.6M shares, $16.0M; April: 3.4M shares, $99.5M
Investment Pipeline	~$500M (ex-U.K. acquisition)
Revolver Outstanding	$375M (post $50M paydown)
Dividend Declared	$0.335/share

Guidance Changes

Metric	Period	Previous Guidance (May 1)	Current Guidance (May 12)	Change
Net Income per Diluted Share	FY 2025	$1.36–$1.40	$1.42–$1.45	Raised
Normalized FFO per Diluted Share	FY 2025	$1.69–$1.73	$1.75–$1.78	Raised
Normalized FAD per Diluted Share	FY 2025	$1.73–$1.77	$1.75–$1.78	Raised
Weighted Avg Diluted Shares	FY 2025	190.6M	190.6M	Maintained
Dividend	Quarterly	$0.335/share (from $0.29)	$0.335/share	Raised in Q1, then maintained

Assumptions include no new investments/debt/equity and ~2.5% CPI escalators across long-term net leases .

Earnings Call Themes & Trends

Topic	Q3 2024 (Previous)	Q4 2024 (Prior)	Q1 2025 (Current)	Trend
External growth pipeline	~$700M pipeline; Tennessee and NE portfolios, reloading flywheel	~$325M quoted pipeline; robust deal flow and selective lending	~$500M pipeline, reloaded; singles/doubles plus larger portfolios reviewed	Strengthening/reloading
Capital & leverage	Net debt/EBITDA ~0.08x; ATM used, revolver to be upsized to $1.2B	Liquidity strong; indifferent to higher-for-longer rates	Revolver drawn for U.K. escrow; pursuing $500M 5-year term loan; net debt/EV ~2.9%	Proactive terming-out
U.K. strategy (Care REIT)	Not yet announced	Pre-acquisition positioning; SHOP interest noted	Closed U.K. deal; ~$68.6M rent; ~2.2x coverage; WALE ~20.2 years; 2–4% escalator bands; yields 7–9% range discussed	New growth engine
Policy (Medicaid/Medicare)	Minimum staffing rule reversal expectation; bipartisan Medicaid support	Continued confidence; managed Medicare trend manageable for sophisticated operators	Monitoring; too early for definitive statements; Medicare FY26 uplift blends ~2.2% across portfolio	Neutral-to-cautiously constructive
Operator health & coverage	Top 10 tenants ~3.02x EBITDARM; overall resilient	Coverage strong; PACS commentary deferred pending filings	Portfolio coverage improving; PACS/tenants trend solid; watch list stable	Stable/Improving
SHOP exploration	Discussed as future option	Still building entry point; demographics compelling	SHOP remains on table; patience for right entry	Exploratory

Management Commentary

CEO Dave Sedgwick on U.K. acquisition: “This strategic acquisition is transformative… significantly diversifying our portfolio… adding approximately $68.6 million of annualized rental revenue and a strong EBITDARM coverage ratio of 2.2x” .
CEO on growth outlook: “We have never been more excited about our ability to deliver meaningful growth… The pipe continues to reload” .
CFO Bill Wagner on guidance and funding: Raised 2025 ranges and highlighted revolver draw for escrow; expecting to finalize a $500M term loan to refinance assumed U.K. debt and fund pipeline .
CIO James Callister on pipeline: “The reloaded pipe today sits at approximately $500 million… we only quote deals that we have a reasonable level of confidence we can lock up and close within the next 12 months” .

Q&A Highlights

Policy and reimbursement: Management reiterated bipartisan support for Medicaid, with ongoing monitoring; Medicare FY26 headline uplift translates to ~2.2% blended across CTRE’s portfolio .
U.K. pipeline and yields: U.K. care home opportunities expected in high-7% to ~9% cap rate range; building pipeline expected to take time, with hopes to execute in H2 2025 and more mature flow in 2026 .
Funding mix/term loan: $500M term loan expected to price just inside revolver; focus on refinancing U.K. debt and funding U.S. pipeline .
Debt investments vs acquisitions: Loans are pursued selectively as strategic relationship builders leading to off-market acquisitions; acquisitions remain the default .
Operator performance/coverage: Broad strength; PACS commentary deferred pending their filings; watch list stable with limited expected surprises .

Estimates Context

Metric	Q1 2024 Actual	Q4 2024 Actual	Q1 2025 Actual	Q1 2025 Consensus	Surprise
Primary EPS ($USD)	0.2482*	0.32*	0.33*	0.34818*	(0.01818)* [GetEstimates]
Revenue ($USD Millions)	63.07	86.944	96.621	98.8475*	(2.2265)* [GetEstimates]
EBITDA ($USD Millions)	53.21*	68.611*	84.526*	86.11126*	(1.58526)* [GetEstimates]
EPS # of Estimates	5*	5*	6*	6*	— [GetEstimates]
Revenue # of Estimates	3*	3*	2*	2*	— [GetEstimates]

Values retrieved from S&P Global.
Note: Company-reported diluted EPS was $0.35 in Q1 2025 vs SPGI “Primary EPS” of 0.33; investors should align their model definition with SPGI to avoid mismatch [GetEstimates].

Key Takeaways for Investors

The quarter was fundamentally solid with strong cash collection and expanding normalized metrics; modest SPGI consensus misses are definitional-sensitive given GAAP diluted EPS at $0.35 [GetEstimates].
Guidance raised twice (including after U.K. close) signals confidence in earnings power accretion; near-term synergy run-rate (~$5M) supports upside to normalized FFO/FAD per share .
U.K. platform is a meaningful growth engine (long WALE, inflation-linked escalators, diversified operators), with the team already seeing reverse inquiries; expect pipeline maturation into 2026 .
Capital flexibility is high: ATM capacity, ample revolver availability, and a pending $500M term loan provide funding diversity while keeping net leverage below the 4–5x target .
Watch policy developments (Medicaid, Medicare FY26); management’s stance is neutral-to-positive, with portfolio operators positioned to adapt to managed Medicare trends .
Note coverage ratio discrepancy (15.2x on call vs 11.85x covenant table); seek methodological clarity, but overall credit metrics remain robust .
Tactical: The cadence of updates (U.K. integration, term loan close, pipeline announcements) is likely to be the stock’s narrative driver in coming months; monitor subsequent guidance updates post-integration .

Additional Relevant Press Releases in Q2 Timing Window (for context)

Closing of Care REIT plc (May 12, 2025), updated guidance and integration plan .
Ongoing dividend announcements and acquisitions (June 2025) supporting capital returns and portfolio expansion .

Citations:
8-K Q1 2025 and Exhibits: .
Press Releases: Q1 operating results –; Care REIT close –; April 17 U.K. bid –; Q3 2024 results –.
Earnings Call Q1 2025: –.
Estimates: GetEstimates (SPGI) for Q1 2025 and comps [GetEstimates].

CareTrust REIT, Inc. (CTRE)·Q1 2025 Earnings Summary