Dividend sustainability has improved significantly, with the payout ratio declining from 1.67x in 2024Q2 to a more stable 0.54x by 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 413.01M | 394.03M | 244.25M | 154.77M | 144.41M | 156.87M | 145.74M | 126.3M | 99.36M | 88.8M | 64.43M | 40.25M | 21.91M | 26.63M | 24.14M |
| Operating CF Growth % | 227.72% | 61.32% | 57.82% | 7.17% | -7.94% | 7.64% | 15.39% | 27.11% | 11.89% | 37.82% | 60.06% | 83.76% | -17.75% | 10.34% | - |
| Operating CF / Revenue % | 88.23% | 82.68% | 107.01% | 77.93% | 77.02% | 82.48% | 82.95% | 79.4% | 63.95% | 67.73% | 61.99% | 54.41% | 37.23% | 54.58% | 57.38% |
| Net Income | 334.95M | 320.29M | 124.4M | 53.72M | -7.51M | 71.98M | 80.87M | 46.36M | 57.92M | 25.87M | 29.35M | 10.03M | -8.14M | -395K | 110K |
| Depreciation & Amortization | 98.88M | 86.44M | 54.07M | 50.87M | 50.38M | 55.39M | 52.82M | 51.87M | 45.78M | 39.18M | 31.98M | 24.13M | 23M | 23.42M | 21.1M |
| Stock-Based Compensation | 7.99M | 11.9M | 6.13M | 5.15M | 5.76M | 10.83M | 3.79M | 4.1M | 3.85M | 2.42M | 1.55M | 1.52M | 154K | 0 | 0 |
| Other Non-Cash Items | -46.39M | -50.67M | 40.13M | 42.63M | 96.11M | 12.77M | 3.26M | 28.05M | -2.68M | 25.76M | 1.94M | 2.46M | 5.23M | 1.03M | 953K |
| Working Capital Changes | 17.34M | 26.07M | 19.52M | 2.39M | -322K | 5.89M | 5M | -4.08M | -5.51M | -4.42M | -391K | 2.1M | 1.67M | 2.58M | 1.97M |
| Cash from Investing | -1.53B | -1.46B | -1.51B | -267.81M | -127.4M | -192.63M | -41.58M | -316.01M | -115.07M | -302.56M | -284.64M | -234.65M | -53.6M | -54.73M | -49.51M |
| Acquisitions (Net) | 125K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -102.43M | -30M | -52M | -1.78M | 0 | 0 | 0 | 0 | 0 | 0 | -4.66M | 0 | -7.5M | 0 | 0 |
| Sale of Investments | 340K | 0 | 0 | 0 | 0 | 0 | 0 | 2.2M | 0 | 7.5M | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -1.41B | -1.42B | -1.45B | -255.06M | -120.11M | -186.62M | -33.28M | -311.92M | -115.07M | -310.06M | -279.99M | -234.65M | -46.1M | -54.73M | -49.51M |
| Cash from Financing | 707.98M | 1.05B | 1.19B | 394.32M | -23.73M | 36.74M | -105.56M | 173.25M | 45.59M | 213.17M | 216.24M | 180.54M | 56.12M | 28.26M | 25.01M |
| Dividends Paid | -279.76M | -259.35M | -172.16M | -115.49M | -106.14M | -100.78M | -93.16M | -80.62M | -63M | -52.59M | -37.27M | -21.79M | -33M | 0 | 0 |
| Common Dividends | -279.76M | -259.35M | -172.16M | -115.49M | -106.14M | -100.78M | -93.16M | -80.62M | -63M | -52.59M | -37.27M | -21.79M | -33M | 0 | 0 |
| Debt Issuance (Net) | 0 | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 0 |
| Share Repurchases | -151K | -3.33M | -2.48M | -1.48M | -4.47M | -1.33M | -2M | -2.52M | -1.29M | -866K | -515K | 0 | 0 | -22.5M | 0 |
| Other Financing | -14.91M | 1.07B | 8.08M | 636.29M | 41.88M | 8.85M | -404K | 191.39M | 179.88M | 164.26M | 199.05M | 160.51M | -9.08M | -730K | 25.01M |
| Net Change in Cash | -409.3M | -15.78M | -80.63M | 281.27M | -6.72M | 976K | -1.41M | -16.46M | 29.88M | -591K | -3.97M | -13.85M | 24.43M | 160K | -361K |
| Exchange Rate Effect | 34K | 515K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 198.04M | 213.82M | 294.45M | 13.18M | 19.89M | 18.92M | 20.33M | 36.79M | 6.91M | 7.5M | 11.47M | 25.32M | 895K | 735K | 1.1M |
| Cash at End | 223.21M | 198.04M | 213.82M | 294.45M | 13.18M | 19.89M | 18.92M | 20.33M | 36.79M | 6.91M | 7.5M | 11.47M | 25.32M | 895K | 735K |
| Free Cash Flow | 397.14M | 379.04M | 236.2M | 143.79M | 137.12M | 150.86M | 137.44M | 122.94M | -8.29M | -201.37M | -214.85M | -192.65M | -23.69M | -28.1M | -25.37M |
| FCF Growth % | 54.6% | 60.47% | 64.26% | 4.86% | -9.1% | 9.76% | 11.79% | 1582.85% | 95.88% | 6.28% | -11.53% | -713.19% | 15.7% | -10.77% | - |
| FCF / Revenue % | 84.83% | 79.53% | 103.48% | 72.4% | 73.13% | 79.32% | 78.23% | 77.3% | -5.34% | -153.58% | -206.71% | -260.38% | -40.26% | -57.59% | -60.31% |
Tenant concentration and regulation
Based on quarterly financial data, CTRE has demonstrated a consistent ability to cover its dividend obligations with AFFO, maintaining a payout ratio that improved from 1.67x in 2024Q2 to a more sustainable 0.54x by 2025Q4, indicating a strengthening buffer for future capital distributions to shareholders.
The compression of the dividend payout ratio suggests that the company is successfully scaling its earnings faster than its distribution requirements. Investors should monitor whether this trend persists, as the current margin provides significant flexibility for reinvestment or potential future dividend increases.
As reported in recent filings, the relationship between FFO and GAAP operating cash flow shows significant variance, with FFO/NI ratios fluctuating between 1.08 and 4.92, suggesting that non-cash adjustments and acquisition-related accounting significantly influence the reported earnings profile relative to actual cash generated from operations.
The high FFO/NI ratio in certain periods implies that depreciation and amortization are substantial non-cash charges that mask the underlying cash-generating capacity of the portfolio. This divergence warrants caution, as it suggests that GAAP net income is a poor proxy for the actual cash available to the REIT.
According to the provided cash flow statements, maintenance capital expenditures remain relatively low, peaking at $5.0 million in 2025Q4, which appears consistent with a triple-net lease model where the burden of property upkeep is largely shifted to the underlying healthcare facility operators.
Low maintenance capex is a hallmark of the triple-net structure, yet it may obscure the long-term capital needs of aging skilled nursing facilities. If operators face financial distress, the REIT may eventually be forced to absorb these costs to preserve asset value, which could impact future AFFO margins.
Analysis of the financial statements reveals that GAAP Net Income consistently understates the REIT's true cash earnings power, with FFO figures frequently exceeding net income by a wide margin, reflecting the heavy impact of non-cash depreciation charges inherent in the company's large-scale real estate holdings.
The persistent gap between net income and FFO highlights why investors must prioritize cash-based metrics when evaluating CTRE's performance. Relying on GAAP earnings would likely lead to an undervaluation of the company's ability to generate recurring cash flow for its stakeholders.
Quick answers to the most common questions about buying CTRE stock.
CareTrust REIT, Inc. (CTRE) generated $394.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
CareTrust REIT, Inc. (CTRE) generated $379.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
CareTrust REIT, Inc. (CTRE) spent $15.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, CareTrust REIT, Inc. (CTRE) returned $259.3M to shareholders via cash dividends and spent $3.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.