SAN CLEMENTE, Calif. - CareTrust REIT, Inc. (NYSE:CTRE), a real estate investment trust company, has announced the renewal and doubling of its unsecured revolving credit facility to $1.2 billion, with a consortium of banks led by KeyBanc Capital Markets. The expansion of the credit facility is accompanied by an upgrade in the company's corporate rating by S&P Global Ratings to BB+ and an upgrade of its issue-level rating on unsecured notes to BBB-.
The credit facility is designed to support CareTrust's growth strategy, including future acquisitions. Chief Financial Officer Bill Wagner expressed satisfaction with the support from the banking partners, both longstanding and new, who are contributing to the company's growth potential. "This credit facility provides a vital means for financing future acquisitions of any size," Wagner stated.
The press release also includes forward-looking statements regarding the company's intentions and expectations for the future, which involve risks and uncertainties that could cause actual results to differ materially from projected outcomes. Based on InvestingPro's Fair Value analysis, the stock appears fairly valued at current levels. Factors that may affect the company's operations and prospects include tenant performance under leases, regulatory impacts on tenants, the ability to secure favorable acquisition opportunities, market access, interest rate fluctuations, and broader public health crises. The company maintains strong profitability with a 95.3% gross profit margin and has shown a solid return on invested capital of 8%.
CareTrust REIT specializes in the ownership, acquisition, development, and leasing of healthcare-related properties, including skilled nursing and senior housing facilities. The company operates nationwide, focusing on long-term net-leased properties and a growing portfolio of quality operators.
The press release also includes forward-looking statements regarding the company's intentions and expectations for the future, which involve risks and uncertainties that could cause actual results to differ materially from projected outcomes. Based on InvestingPro's Fair Value analysis, the stock appears fairly valued at current levels. Factors that may affect the company's operations and prospects include tenant performance under leases, regulatory impacts on tenants, the ability to secure favorable acquisition opportunities, market access, interest rate fluctuations, and broader public health crises. The company maintains strong profitability with a 95.3% gross profit margin and has shown a solid return on invested capital of 8%.
This news report is based on a press release statement from CareTrust REIT, Inc. and does not include speculative or forward-looking assessments beyond those provided by the company.
In other recent news, CareTrust REIT has been the subject of significant developments. The company was downgraded from an Outperform rating to Market Perform by BMO Capital Markets, following allegations surrounding PACS, a significant tenant contributing approximately 20% of CareTrust's pro-forma rents. This adjustment in stance comes with a new price target set at $32.00.
Despite this, CareTrust REIT reported strong financial performance in the third quarter of 2024, including a significant acquisition of skilled nursing facilities in Tennessee and the Northeast, totaling $557 million. The company's financial highlights include a 66% increase in normalized Funds From Operations (FFO) to $60.9 million and a 60% rise in normalized Funds Available for Distribution (FAD) to $61.9 million.
Furthermore, CareTrust raised its 2024 FFO per share guidance to $1.49-$1.50 and FAD per share guidance to $1.53-$1.54. The company also maintains a strong liquidity position with approximately $230 million in cash and plans to upsize its revolver to $1.2 billion. These recent developments underscore the dynamic environment in which CareTrust REIT operates.
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