[Management View]
CareTrust's management highlighted record-setting acquisition activity, deploying approximately $1.1 billion in Q2 2025, including the acquisition of Care REIT and entry into the UK care home market. Total revenues increased by 63.3% YoY, driven by accretive acquisitions and portfolio expansion. Normalized FFO and FAD per share both stood at $0.43. The quarterly dividend increased by 15.5% YoY.

[Outlook]
The company raised its full-year guidance for normalized FFO and FAD per share to $1.77-$1.79, assuming no further capital activity. Management expects about 50% of the $10 million targeted run-rate synergies from the Care REIT integration to materialize primarily in Q1 2026. The investment pipeline includes approximately $600 million in deals expected to close within the next twelve months.

[Financial Performance]
Total revenues increased by 63.3% YoY in Q2 2025. Normalized FFO per share increased by 19.4%, and normalized FAD per share increased by 16.2% YoY. The company raised approximately $355 million from equity sales and closed a $500 million term loan.

[Q&A Highlights]
Question 1: Could you talk about the composition of the pipeline, particularly the contribution from the UK and the percentage of SHOP deals?
Answer: The majority of the pipeline is still US skilled nursing, with a combination of US seniors and UK deals. There is a UK transaction in the pipeline, and the ramp continues to grow as relationships develop. There is also a component of US seniors housing that includes SHOP deals.

Question 2: Of the SHOP deals you're looking at, could you talk about the strategic focus, whether it's core, core plus, or value add, and the markets you're targeting?
Answer: The focus is on the right operator-manager relationships rather than specific deal types. The company is open to various deals and is competitive in sourcing the right operator for each opportunity.

Question 3: Have you seen any impact on deal flow from the passing of the reconciliation bill, particularly in SNFs, Senior Housing, or SHOP?
Answer: There hasn't been a meaningful impact from the bill on deal flow. The market remains consistent, with regional owner-operators and mom-and-pop entities bringing assets to market as their recovery stabilizes post-COVID.

Question 4: Can you provide more details on the potential synergies from the integration of the CRT team and the impact on G&A expenses?
Answer: The integration is going well, with significant investments in both the UK and US teams. The company expects to see continued progress and support for growth, with synergies materializing primarily in Q1 2026.

Question 5: Are the seniors housing deals in the pipeline SHOP deals or traditional triple net lease transactions?
Answer: The pipeline includes both SHOP deals and traditional triple net lease transactions.

Question 6: How is the market for RIDEA platform opportunities, and are you closer to any transactions in that space?
Answer: The company is opportunistic and focused on the right operator relationships. There is no pressure to move quickly, but management expects to complete a SHOP deal within the next twelve months.

Question 7: Has the competitive landscape affected the seniors housing side, particularly in terms of cap rates?
Answer: The seniors housing market has a wider range of cap rates compared to skilled nursing. The company remains competitive by focusing on the right operator relationships.

Question 8: What are your plans for the next issuance, and how do you view opportunities with new operators?
Answer: The next issuance will likely wait for investment grade ratings from all agencies. The company continues to develop new operator relationships and will finance deals or buy assets to start relationships.

Question 9: What are your thoughts on the overall regulatory backdrop, particularly regarding Medicaid and Medicare reimbursement?
Answer: Management is encouraged by the broad bipartisan support for Medicaid, particularly for skilled nursing and senior care. They expect this support to continue defending Medicaid rates despite potential budget pressures.

Question 10: Are the SHOP operators you're speaking to mostly existing relationships, and have you considered converting triple net structures to RIDEA?
Answer: The company is casting a wider net for SHOP operators, including new relationships. The focus is on growing the space de novo rather than converting existing structures.

Question 11: Can you provide an update on the integration and synergies from the Care REIT acquisition?
Answer: The integration is progressing well, with confidence in achieving the forecasted synergies. Approximately 50% of the $10 million run-rate synergies are expected to materialize in Q1 2026.

[Sentiment Analysis]
The tone of the analysts was inquisitive and focused on understanding the strategic direction and potential synergies. Management was confident and optimistic about the company's growth prospects and integration progress.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 | YoY Change |
|-------------------------|---------------|---------------|--------------|
| Total Revenues | $83.1 million | $50.9 million | +63.3% |
| Normalized FFO per Share| $0.43 | $0.36 | +19.4% |
| Normalized FAD per Share| $0.43 | $0.37 | +16.2% |
| Quarterly Dividend | $0.265 | $0.23 | +15.5% |

[Risks and Concerns]
- Potential budget pressures on Medicaid and Medicare reimbursement rates.
- Integration risks associated with the Care REIT acquisition and UK market entry.
- Competitive landscape in the seniors housing market, particularly regarding cap rates.

[Final Takeaway]
CareTrust demonstrated strong financial performance in Q2 2025, driven by record acquisition activity and strategic expansion into the UK care home market. The company raised its full-year guidance and highlighted a robust investment pipeline. Management remains focused on developing new operator relationships and achieving synergies from recent acquisitions. Despite potential regulatory and competitive challenges, CareTrust is well-positioned for continued growth and value creation for shareholders.