CareTrust REIT Q2 Earnings Call Highlights

CareTrust REIT NYSE: CTRE reported record second-quarter investment activity and raised its full-year 2026 guidance, citing continued deal flow across U.S. skilled nursing, U.K. care homes, senior housing operating properties (SHOP), and strategic real estate loans. The company closed approximately $900 million of investments during the second quarter at a blended stabilized yield of 8.9%, representing its largest quarterly investment total excluding M&A activity. The quarter also produced record revenue and funds from operations per share. Second-quarter investments covered the company’s full platform, including U.S. skilled nursing sale-leasebacks, U.K. care homes, SHOP investments, and loans to skilled nursing operators that were made alongside, or in anticipation of, asset acquisitions. Since June 30, the company has closed an additional approximately $308 million of investments at a blended stabilized yield of about 7.8%. That activity included a 16-property U.K. care homes portfolio leased to a new CareTrust operator relationship and a $65 million, two-community addition to its SHOP platform. CareTrust’s investments for 2026 stood at approximately $1.5 billion as of the call, comprising: About $735 million in U.S. triple-net skilled nursing and senior housing investments; Approximately $397 million in U.K. care homes; Approximately $240 million in loans; and Approximately $81 million in SHOP investments. The company’s current investment pipeline totaled about $540 million, with roughly two-thirds tied to skilled nursing and one-third consisting of loans to strategic partners and U.K. care homes. The pipeline includes transactions the company has a reasonable level of confidence it can close within the next 12 months and generally excludes larger portfolios still under review. While the immediate pipeline does not include SHOP opportunities, that reflects timing and underwriting discipline rather than a retreat from the property type. The company continues to develop relationships with operators and managers that could help it move quickly when suitable opportunities arise. Competition has been particularly significant in SHOP, where more private-market entrants have contributed to cap-rate compression and more competitive acquisition processes. The company is reviewing larger SHOP portfolios but remains selective about pricing and expected returns.