CareTrust REIT, Inc.

For Q2 2026, normalized FFO increased 44% year over year to $119.7 million, and normalized FAD increased 43% to $118.5 million. Normalized FFO per share was $0.51, up about 19% from the prior-year quarter, and normalized FAD per share was also $0.51, up about 19%. The company said it completed approximately $900 million of investments in the quarter at a blended stabilized yield of 8.9%. Management raised full-year 2026 guidance to normalized FFO per share of $2.03-$2.06 and normalized FAD per share of $2.01-$2.04, implying midpoint growth of 16.2% and about 15.1%, respectively, versus full-year 2025. Liquidity was about $1.4 billion, including approximately $90 million of cash, $605 million of revolver availability, and about $671 million of unsettled equity forward proceeds; net debt to annualized normalized run-rate EBITDA was 1.0x and fixed charge coverage was 9.9x.

David Sedgwick framed the quarter as evidence that CareTrust’s long-running investment “flywheel” is accelerating, calling Q2 a record quarter for investments, revenue, and FFO per share. He repeatedly emphasized operator quality and lease coverage as the foundation of the model, saying the company prefers to pass on deals rather than compromise on operator quality. His tone was highly confident and upbeat, and he said CareTrust is “super bullish” on where the company is headed.

Derek Bunker focused on the financial upside from the investment pace and the company’s funding capacity. He highlighted Q2 normalized FFO of $119.7 million, normalized FAD of $118.5 million, the equity forward raises of $580.5 million in-quarter and $90.6 million since quarter end, and the remaining 16.6 million unsettled shares representing about $671.4 million of gross proceeds. He said the updated guidance assumes no additional investments or financings beyond year-to-date activity, 2.5% inflation-based rent escalators, $147 million of loan repayments, and no material change in GBP/USD; he also pointed to strong liquidity, 1.0x leverage, 9.9x fixed charge coverage, and no debt maturities before 2028.

Analysts focused on SHOP, asking why CareTrust’s SHOP activity has been slower than some peers, and management said it comes down mostly to pricing and discipline rather than lack of interest. James Callister said SHOP cap rates can compress into the mid- to low-5s, while SNF and other opportunities can still offer returns in the 8s or 9s, so CareTrust is choosing risk-adjusted returns over volume. Questions also covered U.K. scale deals, portfolio concentration, possible tenant conversions to SHOP, PACS, purchase options, financing receivables, and regulatory risk; management generally responded that it is staying selective, sees room to grow with strong operators, and views the skilled nursing environment as stable.