Executive Summary

Q3 2025 delivered strong top-line and cash-flow metrics: total revenues of $132.44M, diluted EPS of $0.35, normalized FFO per share of $0.45 (+18% YoY), and normalized FAD per share of $0.44 (+13% YoY) .
Versus Wall Street consensus (S&P Global): revenue beat by ~$10.10M (estimate $122.35M vs actual $132.44M); EPS missed by ~$0.03 (estimate $0.363 vs actual $0.332) — bold revenue beat, EPS miss, with estimates needing recalibration for a larger share count and timing gap impacts. Values retrieved from S&P Global.*
Guidance was updated lower: FY25 normalized FFO/FAD now $1.76–$1.77 (prior $1.77–$1.79), driven by timing mismatch between August equity raise and deal closings plus higher G&A investments to build the SHOP and UK platforms .
Strategic cadence continues: $59.4M closed in Q3 at an ~8.8% blended stabilized yield, plus ~$436.5M post-quarter, bringing YTD investments to ~$1.6B, with portfolio rent collections at 100% and EBITDAR coverage up to ~2.2x — catalysts for 2026 growth narrative and multiple expansion potential .

What Went Well and What Went Wrong

What Went Well

Strong revenue and cash generation: Revenues climbed to $132.44M with normalized FFO per share at $0.45 and normalized FAD per share at $0.44; rent collections were 100% and net debt to run-rate EBITDA remained very low at 0.42x .
Accretive external growth: $59.4M closed in Q3 at ~8.8% yields; ~$436.5M post-quarter including 12 SNFs and one campus across Southeast/Mid-Atlantic; YTD investments now ~$1.6B — “one of our most significant U.S. investments to date” .
Multi-engine strategy boldly reiterated: “If you liked our 2025, I think you're going to love our 2026” as CTRE advances three growth engines — U.S. SNF, U.K. care homes, and SHOP — with first SHOP deal expected before year-end .

What Went Wrong

Guidance trimmed: FY25 normalized FFO/FAD cut to $1.76–$1.77 (from $1.77–$1.79) due to the “duration gap” (equity raised ahead of deal closings) and G&A at the high end as CTRE invests to scale platforms .
EPS fell short of consensus: Primary EPS missed by ~$0.03 even as revenue significantly beat, suggesting dilution and timing dynamics outweighed operating strength. Values retrieved from S&P Global.*
Coverage in U.K. care homes ticked down vs May disclosures; management attributed it to idiosyncratic factors rather than a thematic issue, but investors will watch stabilization closely .

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025	Q3 2025 Consensus	Actual vs Consensus
Revenue ($USD Millions)	$96.621	$112.469	$132.444	$122.345*	+$10.099M beat*
Diluted EPS ($)	$0.35	$0.35	$0.35	$0.3627*	-$0.031 miss*
Normalized FFO per Share ($)	$0.42	$0.43	$0.45	—	—
Normalized FAD per Share ($)	$0.43	$0.43	$0.44	—	—

Revenue Breakdown ($USD Millions)	Q1 2025	Q2 2025	Q3 2025
Rental Income	$71.646	$86.033	$104.265
Interest Income from Financing Receivable	$2.807	$2.886	$2.908
Interest Income from Other RE Investments & Other Income	$22.168	$23.550	$25.271
Total Revenues	$96.621	$112.469	$132.444

Margins (%)	Q1 2025	Q2 2025	Q3 2025
Net Income Margin %	68.10%*	60.95%*	56.55%*
EBITDA Margin %	87.48%*	85.30%*	82.79%*

Values retrieved from S&P Global.*

KPIs	Q1 2025	Q2 2025	Q3 2025
Normalized FFO ($MM)	$77.848	$83.091	$94.677
Normalized FAD ($MM)	$80.800	$83.072	$93.143
Investments Closed in Quarter ($MM)	$47.5	$1,100	$59.4
Post-Quarter Investments ($MM)	—	—	~$436.5
Net Debt / Annualized Normalized Run-Rate EBITDA (x)	0.5x	2.0x	0.42x
Dividend per Share ($)	$0.335	$0.335	$0.335
Rent Collections	99.2%	99.7%	100%
Portfolio EBITDAR Rent Coverage (TTM)	—	2.21x (TTM mix)	~2.2x

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Income per Share ($)	FY 2025	$1.43–$1.45	$1.41–$1.42	Lowered
Normalized FFO per Share ($)	FY 2025	$1.77–$1.79	$1.76–$1.77	Lowered
Normalized FAD per Share ($)	FY 2025	$1.77–$1.79	$1.76–$1.77	Lowered
Dividend per Share ($)	Quarterly	$0.335	$0.335	Maintained
Cash Rental Revenues ($MM)	FY 2025	—	~$344–$345	—
Straight-Line Rent ($MM)	FY 2025	—	~$9	—
Interest Income from Financing Receivables ($MM)	FY 2025	—	~$12	—
Interest Income ($MM)	FY 2025	—	~$96	—
Interest Expense ($MM)	FY 2025	—	~$44 (incl. ~$5 amort.)	—
Income Tax Expense ($MM)	FY 2025	—	~$5	—
G&A Expense ($MM)	FY 2025	$33–$37 (Q1 guide)	~$52–$53 (incl. ~$12 SBC)	Higher

Management cited the “duration gap” between the August equity raise ($736M gross) and deployment timing, plus elevated G&A investments to scale SHOP/UK platforms as primary drivers of the downward guidance revision .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025, Q2 2025)	Current Period (Q3 2025)	Trend
SHOP Entry & Strategy	Patient, operator-first, evaluating RIDEA/SHOP; no conversion focus; expect initial deal within 12 months	First SHOP deal expected before year-end; “omnivorous” buy-box; focus on secondary markets, low double-digit IRRs, stabilization low-90s occupancy	Accelerating
UK Care Homes Expansion	Care REIT acquisition closed in May; pipeline-building; yields high-7s to 9%; add UK team	UK pipeline now ~⅓ of $600M total; first follow-on UK transaction closed in September	Building
Investment Pipeline & Yields	~$500–$600M pipeline; robust SNF focus; seniors housing and SHOP evaluated	Pipeline ~$600M; yields: SNFs ~9%, UK ~8.5% pre-tax leakage, seniors ≥7% year-one	Stable to expanding
Balance Sheet & Liquidity	Term loan planned; low leverage; strong revolver capacity	$500M term loan swapped to 4.6% all-in; ~$334M cash; $1.2B revolver capacity; net debt/EBITDA ~0.43x	Strengthening
G&A & Platform Build	Q1 G&A guide $33–$37M including stock comp; UK integration costs	FY25 G&A ~$52–$53M; STI reset expected in 2026; continued team build for SHOP/data science	Elevated near term

Management Commentary

“The third quarter normalized FFO per share of $0.45, representing approximately 18% growth over the prior year quarter… If you liked our 2025, I think you're going to love our 2026.” — Dave Sedgwick, CEO .
“Overall, the blended stabilized yield on the post-quarter-end tranche of investments is approximately 8.8%… Our investment pipeline remains strong, sitting at approximately $600 million.” — James Callister, CIO .
“We entered into interest rate swaps to fix the rate on our $500 million term loan… all-in rate of 4.6%… adjusted guidance… to $1.76–$1.77 for both normalized FFO and normalized FAD per share.” — Derek Bunker (incoming CFO) .

Q&A Highlights

Yields by asset class: SNFs generally “with a 9 handle,” UK ~8.5% pre-tax leakage, seniors housing ≥7% year-one, with rate compression observed in seniors housing depending on market and CapEx needs .
SHOP strategy: case-by-case, operator-first; open to stabilized and turnaround but avoiding heavy CapEx turnarounds; initial focus U.S., potential UK in future; targeting low double-digit IRRs and stabilization in low-90s occupancy .
G&A outlook: elevated into Q4 and early 2026 due to platform investments; STI reset expected to reduce part of the pickup next year .
UK care homes coverage: slight downtick vs May; management sees idiosyncratic, not systemic issues .
Financing/duration gap: pipeline closing/replenishing briskly; forward equity component remains optional “case-by-case” .

Estimates Context

Q3 2025 revenue: $132.44M vs consensus $122.35M — bold beat; reflects ramp in rental income and interest streams from accelerated deployment . Values retrieved from S&P Global.*
Q3 2025 EPS: $0.3317 actual vs $0.3627 consensus — bold miss; driven by higher diluted share count post equity offering and the timing gap between funding and closings that lagged slightly . Values retrieved from S&P Global.*
Expect analysts to tweak FY25 EPS/FFO/FAD models, incorporating: updated share count (204.0M diluted avg basis for guide), G&A uplift, swaps on term loan (4.6% all-in), and post-quarter investments contributing more fully in Q4 and FY26 .

Key Takeaways for Investors

CTRE’s revenue growth outpaced expectations; normalized FFO/FAD per share continued to climb, underpinned by 100% rent collections and very low leverage — supportive of dividend stability and potential long-term growth in distributions .
Bold external growth persists: ~$495M closed in Q3 and since, ~$1.6B YTD with ~8.8% blended yields — medium-term earnings power is rising as assets season, favoring 2026 outperformance relative to 2025 .
Guidance reset is transitory: the “duration gap” and platform investments explain the modest trim; as capital is fully deployed and SHOP/UK contribute, guidance should reaccelerate into FY26 .
SHOP and UK open new growth vectors: expect initial SHOP closing by year-end, expanding into strong secondary markets; UK follow-on investments already underway with ~⅓ of the pipeline .
Yields remain attractive: SNFs ~9%, UK ~8.5% pre-tax leakage, seniors ≥7% year-one; disciplined underwriting and operator relationships underpin coverage and credit quality .
Balance sheet optionality: $334M cash, full $1.2B revolver, swaps fixing the $500M term loan at ~4.6% — ample dry powder to fund a reloaded pipeline with minimal refinancing risk before 2028 .
Near-term trading: stock may respond to the revenue beat vs EPS miss; focus attention on post-quarter investment ramp and incoming SHOP contribution as catalysts for estimate revisions and multiple support .

Notes on non-GAAP: Normalized FFO/FAD exclude items like impairment, transaction costs, FX gains/losses, loss on extinguishment, and extraordinary stock-related items; reconciliations provided in the press release and 8‑K supplement .

CareTrust REIT, Inc. (CTRE)·Q3 2025 Earnings Summary