CareTrust REIT, Inc. (CTRE) SEC Filings & Earnings Calls

Completion risk for in-development properties and regulatory approvals.

“In-Development Properties are currently under development and subject to regulatory approval.”

Lease-up and NOI yield risk for acquired properties.

“Risk that stabilization and anticipated net operating income yields are not achieved.”

Interest rate and capital cost pressure

“Higher interest rates and market volatility have also increased our costs of capital to finance acquisitions and increased our borrowing costs.” · word for word

Tenant financial stress from regulatory and cost pressures

“The step-up may further pressure operating costs for our California-based tenants and borrowers, which could adversely affect their financial condition and ability to meet their obligations to us.” · word for word

Potential future Medicare payment reductions

“While the RFI did not result in specific rate changes for fiscal year 2027, it indicates CMS may pursue future recalibrations to PDPM that could reduce per-beneficiary Medicare payments to SNFs in fiscal years beyond fiscal year 2027.” · word for word

High leverage on credit facility; $595M drawn on $1.2B facility.

“$595 million in borrowings outstanding on its $1.2 billion unsecured revolving credit facility” · word for word

Dilution from additional share issuance; forward sale structure may delay dilution but still dilutive.

“1,875,000 additional shares sold via forward sale.”

Potential dilution from forward sale if physically settled; share count increase of up to 14.375M shares.

“Forward sale agreements for 12.5M shares plus option for 1.875M shares.”

California Minimum Wage Pressure on Tenants

“The upcoming June 2026 step-up may further pressure operating costs for our California-based tenants and borrowers, which could adversely affect their financial condition and ability to meet their obligations to us.” · word for word

CMS PDPM Recalibration Risk

“While the RFI does not propose specific rate changes, it indicates CMS may pursue future recalibrations to PDPM that could reduce per-beneficiary Medicare payments to SNFs in fiscal years beyond fiscal year 2027.” · word for word

Macroeconomic and Tariff Uncertainty

“Recent macroeconomic conditions, particularly market uncertainty, immigration restrictions and changes to immigration enforcement policy, changes to the U.S. healthcare system, shutdown of the federal government, inflation (including higher supply costs and shortages), effects of global tariffs, elevated interest rates and related changes to consumer spendin” · word for word

Guidance assumes no new investments beyond year-to-date, which may be conservative given strong pipeline.

“Guidance assumes no new investments, loans, or dispositions beyond those made year-to-date.”

Exposure to GBP:USD exchange rate fluctuations due to UK investments.

“No material change in the GBP:USD spot exchange rate.” · word for word

Potential dilution from equity issuance.

“Up to $1B in common stock may be issued.”

Concentration in healthcare real estate sector, though diversified with UK and SHOP.

“strategic additions of two new growth engines of UK Care Homes and SHOP” · word for word

Interest rate sensitivity could impact cap rates and investment yields.

“Net Debt to Annualized Normalized Run Rate EBITDA of 0.7x ... below target leverage range of 4.0x to 5.0x” · word for word

Tenant concentration risk

“Ensign accounted for 23% of total annualized contractual rental income as of December 31, 2025.”

Macroeconomic headwinds

“recent macroeconomic conditions, particularly market uncertainty, immigration restrictions and changes to immigration enforcement policy, changes to the U.S. healthcare system, shutdown of the federal government, declining consumer sentiment, inflation (including higher supply costs and shortages), effects of global tariffs, elevated interest rates and relat” · word for word

Regulatory and reimbursement risk

“state level Medicaid reimbursement rate reductions and minimum wage increases could lead to increased costs” · word for word

SHOP platform operational risk

“We are dependent on the ability of our third party managers to successfully manage and operate our SHOP communities” · word for word

Medicaid Reimbursement Risk

“In Idaho, the Department of Health and Welfare enacted a 4% across-the-board rate cut in response to an $80 million budget shortfall. In North Carolina, the Department of Health and Human Services reduced provider reimbursement rates by 3% to 10%, effective October 1, 2025, following a $319 million funding gap in the state’s Medicaid rebase.” · word for word

Interest Rate Risk

“Higher interest rates and market volatility have also increased our costs of capital to finance acquisitions and increased our borrowing costs.” · word for word

Integration Risk

“the intended benefits of our acquisition of Care REIT plc may not be realized, and we will be subject to additional risks from our investment in Care REIT and any other international investments” · word for word

Guidance updated due to duration gap between equity raise and capital deployment; G&A at high end.

“Updated guidance is primarily the result of a duration gap between our equity raise and deploying that capital.” · word for word