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CARETRUST REIT CareTrust REIT Announces Second Quarter 2021 Operating Results August 5 , 2021 Conference Call Scheduled for Friday , August 6 , 2021 at 1:00 pm ET SAN CLEMENTE , Calif . , Aug. 05 , 2021 ( GLOBE NEWSWIRE ) -- CareTrust REIT , Inc. ( Nasdaq : CTRE ) today reported operating results for the quarter ended June 30 , 2021 , as well as other recent events . For the quarter , CareTrust REIT reported : • 100 % of contractual rents collected ; • Net income of $ 21.3 million , a 12.6 % increase over the prior year , and net income per share of $ 0.22 ; • ⚫ Normalized FFO of $ 35.8 million , an 11.4 % increase over the prior year , and normalized FFO per share of $ 0.37 ; • Normalized FAD of $ 38.1 million , a 13.5 % increase over the prior year , and normalized FAD per share of $ 0.40 ; • A quarterly dividend of $ 0.265 per share , representing a payout ratio of approximately 66 % on normalized FAD ; and • A $ 0.02 per share increase to previously - released 2021 guidance , to normalized FFO of approximately $ 1.48 to $ 1.50 per share and normalized FAD of approximately $ 1.57 to $ 1.59 per share . Signs of a Rebound " We are pleased to see occupancy among our skilled nursing tenants beginning to recover , ” said Greg Stapley , CareTrust's Chairman and Chief Executive Officer . He reported that the portfolio's skilled nursing facilities have grown census to 69.9 % since reaching last January's reported lows of 66.9 % , inching closer every month to their pre - pandemic occupancy of 77.7 % . " We are also hearing reports of a pickup in tours at some of our assisted living tenants ' facilities , although their overall census has not yet moved much from the March low of 73.5 % , " he added , noting that the average pre - pandemic census in the assisted living portfolio was about 84.5 % . Mr. Stapley cautioned that despite growing vaccination rates and the lifting of most restrictions on the general population , skilled nursing and seniors housing providers are still in full pandemic mode . " As the current wave of Delta - variant infections raises the possibility of more limitations on the activities of daily living , the skilled nursing and seniors housing industries continue to battle back from the downdraft in census that bottomed in the first quarter of this year , " he said . " Not surprisingly , skilled nursing and seniors housing facilities , which were a favorite target for finger pointing in the early days of the pandemic , have today become some of the safest and healthiest places for vulnerable seniors and post - acute patients to be , " he added . Dave Sedgwick , CareTrust's President and Chief Operating Officer , reported that assisted living operators have been hit particularly hard by the pandemic's occupancy drops and expense increases . " While the skilled nursing providers have been thrown a lifeline in the form of provider relief funds and other measures , seniors housing providers have seen little to no government support to date despite the critical role they play in caring for our nation's seniors , " he said . He noted that CareTrust's assisted living providers have not been unaffected , with one provider who was operating pre - stabilized facilities at the beginning of the pandemic requesting some flexibility in keeping their rent current . CareTrust again provided its enhanced COVID - era disclosure around tenant lease coverage . Referencing the Company's quarterly supplemental report issued earlier today , Mr. Sedgwick said , “ Our objective is to be as transparent and helpful as possible by reporting lease coverage on an EBITDAR and EBITDARM basis - both excluding CARES Act funding and including and amortizing the CARES Act funds received to - date . " He noted that since last quarter's supplemental , the US Department of Health and Human Services has updated the utilization and reporting guidelines for CARES Act funds , and the supplemental's disclosure follows the updated guidance . $ 400M Bond Issuance & Redemption of 2025 Notes During the quarter , CareTrust and its subsidiaries completed a private offering of $ 400.0 million aggregate principal amount of 3.875 % Senior Notes due 2028. The new notes were issued at par and produced net proceeds of approximately $ 393.8 million after deducting underwriting fees and other offering expenses . The new notes mature on June 30 , 2028 and the proceeds were used to redeem CareTrust's $ 300 million 5.25 % senior notes due 2025 , and to repay approximately $ 85.9 million in short - term variable - rate borrowings outstanding under Care Trust's revolving credit facility . Financial Results for Quarter Ended June 30 , 2021 Chief Financial Officer Bill Wagner reported that , for the second quarter , CareTrust generated net income of $ 21.3 million , or $ 0.22 per diluted weighted - average common share , normalized FFO of $ 35.8 million , or $ 0.37 per diluted weighted - average common share , and normalized FAD of $ 38.1 million , or $ 0.40 per diluted weighted - average common share . Liquidity As of quarter end , CareTrust reported net debt - to - annualized normalized run rate EBITDA of 3.7x , well under the Company's target leverage range of