Earnings call transcript: CareTrust REIT beats Q2 2025 forecasts, boosts guidance

CareTrust REIT (NASDAQ:CAAS) reported its second-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.35, slightly above the forecast of $0.34, marking a 2.94% positive surprise. The company also reported revenues of $112.47 million, significantly exceeding the anticipated $80.39 million, reflecting a 39.91% surprise. Following the earnings announcement, CareTrust’s stock saw a modest movement, with a premarket increase of 0.89% to $32.84. InvestingPro data shows the company maintains a "GREAT" overall financial health score of 3.52 out of 5, with an impressive track record of raising its dividend for 9 consecutive years.

Key Takeaways

• CareTrust REIT’s EPS and revenue both exceeded expectations for Q2 2025.
• The company raised its annual guidance for normalized FFO and FAD per share.
• CareTrust’s stock price experienced a slight increase in premarket trading.
• The company continues to expand its presence in the UK care home market.
• A robust investment pipeline of $600 million is in place.

Company Performance

CareTrust REIT demonstrated strong performance in the second quarter of 2025, with a 63.3% increase in total revenues compared to the prior year. The company has successfully integrated its recent acquisition of Care REIT, expanding into the UK market. This strategic move is part of its broader focus on skilled nursing, seniors housing, and care home asset types.

Financial Highlights

• Revenue: $112.47 million, up 63.3% year-over-year
• Earnings per share: $0.35, a 2.94% surprise over the forecast
• Normalized FFO per share: $0.43, up 19.4% year-over-year
• Normalized FAD per share: $0.43, up 16.2% year-over-year
• Quarterly dividend increased by 15.5% year-over-year

Earnings vs. Forecast

CareTrust REIT’s actual EPS of $0.35 exceeded the forecasted $0.34 by 2.94%. The revenue of $112.47 million significantly surpassed the expected $80.39 million, resulting in a 39.91% surprise. This positive performance highlights the company’s effective growth strategies and market expansion efforts.

Market Reaction

Following the earnings announcement, CareTrust’s stock experienced a slight increase in premarket trading, rising by 0.89% to $32.84. This movement reflects investor confidence in the company’s ability to surpass earnings expectations and its strategic expansion into new markets. According to InvestingPro analysis, the stock is trading near its calculated Fair Value, with a P/E ratio of 27.02x and strong momentum shown by a 26.5% price return over the past six months.

Outlook & Guidance

CareTrust REIT has raised its annual guidance for normalized FFO and FAD per share to a range of $1.77-$1.79. The company is targeting growth through strategic acquisitions and exploring opportunities in the US and UK markets. It expects to realize synergies of around $5 million, mostly beginning in Q1 next year. Analysts maintain a strong bullish consensus on the stock, with a "Strong Buy" rating of 1.33 out of 5, and revenue growth forecasts of 37% for FY2025. For detailed analysis and expert insights, check out the comprehensive Pro Research Report available exclusively on InvestingPro.

Executive Commentary

Dave Sedgwick, President and CEO, emphasized the company’s ongoing growth trajectory, stating, "We are not done. We very much feel like we’re still in startup mode and hungry to prove ourselves." James Collister, Chief Investment Officer, noted the robust pipeline of opportunities, saying, "We continue to see a robust pipeline of both broker marketed deals and off market opportunities."

Risks and Challenges

• Potential market saturation in the care home sector.
• Macroeconomic pressures that could affect investment flows.
• Integration challenges with recent acquisitions.
• Regulatory changes in healthcare funding.
• Competitive pressures from other REITs in the sector.

Q&A

During the earnings call, analysts inquired about the company’s investment pipeline, particularly in the US skilled nursing and UK opportunities. Executives reiterated their cautious approach to SHOP investments and highlighted the importance of developing relationships with new operators.

Full transcript - Caretrust Inc (CTRE) Q2 2025:

Conference Operator: Thank you. I would now like to turn the conference over to Lauren Beale, CareTrust Chief Accounting Officer. You may begin.

Lauren Beale, Chief Accounting Officer, CareTrust REIT: Thank you, and welcome to CareTrust REIT’s second quarter twenty twenty five earnings call. We will make forward looking statements today based on management’s current expectations, including statements regarding future financial performance, dividends, acquisitions, investments, financing plans, business strategies, and growth prospects. These forward looking statements are subject to risks and uncertainties that could cause actual results to materially differ from our expectations. These risks are discussed in CareTrust REIT’s most recent Form 10 ks and 10 Q filings with the SEC. We do not undertake a duty to update or revise these statements except as required by law.

During the call, the company will reference non GAAP metrics such as EBITDA, FFO and FAD or FAD. A reconciliation of these measures to the most comparable GAAP financial measures is available in our earnings press release and q two twenty twenty five non GAAP reconciliation that are available on the Investor Relations section of CareTrust website at www.caretrustreit.com. A replay of this call will also be available on the website for a limited period. On the call this morning are Dave Sedgwick, president and chief executive officer Bill Wagner, chief financial officer James Collister, chief investment officer and Derek Bunker, SVP strategy and investor relations. I’ll now turn the call over to Dave Sedgwick, CareTrust REIT’s president and CEO.

Dave?

Dave Sedgwick, President and CEO, CareTrust REIT: Well, good morning, everybody, and thank you for joining us. Before I share the highlights for the quarter and the many good things yet to come, I think it’s important to take a minute to step back and put our growth over the past two years in context. In the second quarter and since, we closed on approximately 1,100,000,000.0 of investments, highlighted, of course, by our acquisition of Care REIT and entry into The UK care home market closed in May. Over the past eighteen months, we have deployed roughly $2,700,000,000 of investments, eclipsing the total amount we invested in the prior eight years since our inception. During our Q4 call, when we were celebrating a record $1,500,000,000 of investments in 2024, which is seven times the amount of our annual average, I mentioned how we would not rest on that record, but would instead continue full steam ahead.

Well, we quickly followed through and closed our first m and a deal in the Care REIT acquisition in May, diversifying our operator bench, our asset type mix, our payer mix, our geographic concentration, and providing a compelling exposure to a key market in which we expect to grow simultaneously with our U. S. Opportunity set. Again, the team did not stop there. Since closing on Care REIT, we closed on another nearly $220,000,000 of investments and yesterday announced a reloaded pipeline of approximately $600,000,000 that James will talk about in his update.

Now the results of this record pace of investments is total revenues are up 63.3% in the second quarter over the prior year quarter. Normalized FFO per share is up about 19%, and normalized FAD per share is up about 16% each over the same period. We’ve also increased our quarterly dividend by 15.5% year over year while maintaining a comfortable payout ratio. Turning to an update on the quarter, the integration of, the Care REIT assets is off to a a strong start. James has promised not to use the word plucky again in this, and I promise won’t I won’t use a British accent.

But I will say, we are chuffed with the operator relationships that we stepped into and have already game plan with many of them how to grow together in the near future. We continue to introduce ourselves to the market and expect more care home opportunities to find their way into our pipeline over time. At the June, we acquired Care REIT’s former external manager and began the integration of those employees into CareTrust. They’re talented group that brings to the table experience with these assets in market and deep relationships with operators and other key industry participants. And we believe that CareTrust UK team will help us source, identify, underwrite, and close on growth opportunities there.

While it’s fun to celebrate all of our recent investments and it’s important to highlight what makes us so excited about the near and long term future prospects, I’ll reiterate what I conveyed on the last few earnings calls. We are not done. We very much feel like we’re still in startup mode and hungry to prove ourselves and produce sustainable FFO per share growth over many years to come. In order to keep the flywheel ripping along with investing in real assets, we’ve been investing in the people and systems to support their integration and our future growth. In addition to building out our UK presence, we’ve added key professionals here in The US across tax, finance, investments, and asset management that position us to grow in more markets and more diversified ways.

Our expanded team is stronger, smarter, and hungrier than ever before. And this behind the scenes investment in the team, like our investments in real assets, will continue to pay off over time. With that, I’ll hand it off to James for a report on investment activity and the acquisition landscape.

James Collister, Chief Investment Officer, CareTrust REIT: Thanks, Dave. Good morning, everyone. During the second quarter, in addition to closing the Care REIT acquisition in May, we completed the acquisition of his external manager and began the process of welcoming those employees to CareTrust. As Dave mentioned, leveraging this platform allows us to focus simultaneously on our growth in both The U. S.

And UK across skilled nursing, seniors housing, and care home asset types. Also in the quarter, through a joint venture where we provided approximately 95% of the total required investment capital, we closed on an approximately $146,000,000 portfolio of 10 skilled nursing assets in the Pacific Northwest leased to two high caliber existing operators. These are quality assets that we’re very excited about, and it’s a testament to the hard work of our team up and down the organization to close on a transaction of this size immediately on the heels of the Care REIT deal. In the rest of the quarter and since, we deployed approximately $110,000,000 in additional capital across skilled nursing real estate acquisitions, preferred equity investments and a mortgage loan. These deals bring our total investments closed year to date of approximately 1,200,000,000 As we look forward, our investment pipeline remains strong sitting at approximately $600,000,000 The quoted pipeline includes some singles and doubles as well as some mid to large sized portfolio transactions and primarily consists of skilled nursing facilities, but also includes a couple of seniors housing deals and a UK care home opportunity.

Please remember that when we quote our pipe, we only include deals that we have a reasonable level of confidence that we can lock up and close within the next twelve months. We continue to see a robust pipeline of both broker marketed deals and off market opportunities sourced through our operator network and other relationships. The flow of prospects span skilled nursing and seniors housing assets, both triple net and SHOP, with a measured yet meaningful uptick in overall volume. At the same time, we’re building our pipeline in The UK, actively evaluating potential acquisitions across the pond and regularly meeting with established and new operators who value a capital partner like CareTrust in a capital tight environment. The UK care home sector represents an additional avenue of accretive growth where our rigorous underwriting, operational expertise, strong balance sheet, advantage cost of capital and proven certainty of closing position us to win.

Importantly, our pursuit of UK transactions will not slow our primary focus on sourcing and executing high return real estate acquisitions in The United States as evidenced by around $215,000,000 in U. S. Investments closed post Care REIT acquisition and by our reloaded pipeline. And with that, I’ll turn it over to Bill.

Bill Wagner, Chief Financial Officer, CareTrust REIT: Thanks, James. For the quarter, normalized FFO increased 58.2% over the prior year quarter to $83,100,000 and normalized FAD increased by 53.9 to 83,100,000.0 On a per share basis, normalized FFO increased $0.7 or 19.4% to $0.43 per share, and normalized FAD increased $06 or 16.2% to $0.43 per share. During the second quarter, we raised approximately $355,000,000 of cash from equity sales under our ATM and closed on a $500,000,000 term loan. These proceeds allowed us to fund investments, including a portion of The UK, to pay off our revolver balance as of June 30, and subsequent to quarter end, pay off approximately $260,000,000 of debt we assumed as part of the Care REIT acquisition. Also after quarter end, we entered into an interest rate swap to fix the rate on our new term loan for a period of three years with a go forward all in rate of 4.6%, bringing our fixed rate debt as a percentage of total debt to 93%.

In yesterday’s press release, we raised guidance for this year to $1.77 to $1.79 for both normalized FFO and normalized FAD per share. This guidance includes all investments closed today, a diluted weighted average share count of 195,300,000.0 shares, and also relies on the following six assumptions: one, no additional investments nor any further debt or equity issuances this year Two, CPI rent escalations of 2.5%. Our total cash rental revenues for the year are projected to be approximately $338,000,000 Not included in this number is straight line rent of $8,000,000 and the amortization of lease intangibles of $2,000,000 Three, interest income from financing receivables of $12,000,000 Four, interest income of approximately $87,000,000 which is made up of $80,000,000 from our loan portfolio and $7,000,000 from cash invested in money market funds five, interest expense of approximately $44,000,000 which includes roughly $5,000,000 of amortization of deferred financing fees and six, G and A expense of approximately 48,000,000 to $52,000,000 and includes about $12,000,000 of stock compensation. Lastly, our liquidity continues to remain strong. In addition to $65,000,000 of cash on hand, we have $1,140,000,000 available under our revolver.

And despite our record pace of investments, we continue to maintain low leverage with a net debt to annualized normalized EBITDA of two times. Our net debt to enterprise value was 12.3% as of quarter end, and we achieved a fixed charge coverage ratio of 8.2 times. And with that, I’ll turn it back to Dave.

Dave Sedgwick, President and CEO, CareTrust REIT: Thank you, Bill. Super excited about the performance and super grateful and proud of the team for what we’ve been able to accomplish over the last couple of years and last quarter. Happy to take your questions.

Conference Operator: Your first question comes from the line of John Klitschowski from Wells Fargo. Please go ahead.

John Klitschowski, Analyst, Wells Fargo: Good afternoon. Thank you, team. Maybe if we could just start on the pipeline, would you mind kind of talking about the composition of that? I’m curious how much of a contribution The UK is already starting to see and if you’re seeing that ramping. And then maybe part two of that would be, what percentage of that is shop, if any?

And, Dave, you get bonus points for using a British accent.

Dave Sedgwick, President and CEO, CareTrust REIT: No. I’m gonna I’m gonna defer to to James to answer this one. We’ll see if he uses the accent or not. We’ll we’ll we’ll we’ll find that on that.

James Collister, Chief Investment Officer, CareTrust REIT: I gotta be

: true to myself, so it’s gonna

James Collister, Chief Investment Officer, CareTrust REIT: be me. You know? The pipeline, John, the majority of it is still US skilled nursing. The remainder of it is a combination of US seniors and UK. There’s definitely UK transaction in there, and that that ramp continues to grow as we continue to engage in and develop relationships with the broker and operator community.

And I think that, you know, there there there is a component of the seniors housing in The US that does consist of SHOP. You know, we have twelve months to realize on that, but we are continuing to actively look at SHOP and try to source the right deals when we find them.

: Got it. That’s helpful. And then

John Klitschowski, Analyst, Wells Fargo: of the shop deals that you’re looking at, could you kind of talk about maybe strategically the ones that you’re interested in, whether it’s core, core plus, or value add and the kind of what tier markets are you looking at? I’m just kind of curious how you’re positioning yourself versus peers.

James Collister, Chief Investment Officer, CareTrust REIT: Yeah. I mean, I think we’re pretty open, John. I think we’re really focused on the right operator manager relationships based on the deals that come in and looking at can we really find an operator or manager solution that we really like and bet and get comfortable with. I think we’re pretty open on the deals. I think we’re gonna be more competitive in some than others.

So, you know, I think we’re really looking at at everything, focusing on the right operator manager solution for that deal, and focusing on the ones that, you know, maybe others, you know, will be more competitive than we would, but focusing on the ones we feel like you’re our lane and that we can source the right operator for.

John Klitschowski, Analyst, Wells Fargo: Alright. Very helpful. Thank you.

: Thanks, John.

Conference Operator: Your next question is coming from the line of Farrell Greneth of Bank of America. Please go ahead.

Farrell Greneth, Analyst, Bank of America: Hello. Good afternoon. This is Farrell Greneth. I also just wanted to dig in a little bit deeper of what you’re seeing in your pipeline, you know, as some of the overhang when it came to sniffs has kind of lifted slightly with the passing of the reconciliation bill. I was wondering if you’ve seen anything else come into the market more or if you’ve seen greater competition for assets of both Smith Senior Housing or even SHOP as you’re coming to the table.

James Collister, Chief Investment Officer, CareTrust REIT: You know, I I don’t think we’ve seen a meaningful uptick or impact from the big beautiful bill on deal flow at all. I think that you still see regional owner operators and mom and pop starting to bring, you know, assets to the market as their recovery is kind of you know, it made most of their way through their recovery following, you know, COVID. And as that has stabilized, a lot of them bringing more stuff to bear and and to the market. But I haven’t seen really any impact from the big beautiful bill. I think that deal flow is consistent.

It’s probably getting a little uptick recently. I think that it’s pretty much the same buyers at the table in the skilled nursing market as it’s been for a while. I would say on seniors, maybe a few more entrants on the private equity side, private money side, but still primarily the publics and the known private equity groups have been there for a while now.

Farrell Greneth, Analyst, Bank of America: Great. Thank you. And my second question is about the potential synergies as you were just mentioning about the integration of the CRT team of what we could maybe see, especially given your G and A picked up slightly, and with the expectation of that going forward of what that could turn into even in out years.

James Collister, Chief Investment Officer, CareTrust REIT: Hey, Pearl. This is Derek.

Derek Bunker, SVP Strategy and Investor Relations, CareTrust REIT: I I think, first of all, it’s going really well. We’re excited about those teams, and we felt like with the record pace of investments in real assets over the past eighteen months, it was important to make sure we build a team around it to take care of it and to position ourselves for that diversified growth growth across markets and kind of future opportunities. So I think you’ll see that continue to bear out through the rest of the year, but we feel like we’ve made a lot of headway. We’ve at the June, we we brought in those UK teams already, and we made, you know, quite a bit of investment in The US team as well. So may not be done, but we’ve made a lot of headway.

We’re really excited about the progress so far and feel like we’ve positioned ourselves well to support that growth.

Farrell Greneth, Analyst, Bank of America: Okay. Thank you so much.

Dave Sedgwick, President and CEO, CareTrust REIT: Thanks, Carol.

Conference Operator: The next question is coming from the line of Michael Carroll from RBC Capital Markets. Please go ahead.

Michael Carroll, Analyst, RBC Capital Markets: Yes, thanks. I guess, James, I wanted to quickly touch on the pipeline where you said that there were a few seniors housing deals. I mean, are those deals shop deals, or are they just traditional triple net lease type transactions?

James Collister, Chief Investment Officer, CareTrust REIT: There’s some of both in there, Mike.

Michael Carroll, Analyst, RBC Capital Markets: And then I know like, how can you talk about to, like, the the Radia platform that you’ve been kinda looking to get into? I mean, are we how’s that market looking? Are we any closer to some type of transaction on that side or anything interesting out there to you?

Dave Sedgwick, President and CEO, CareTrust REIT: I would say that with respect to RIDEA, what we’ve been saying for, I guess, about the last eighteen months is still very true, which is, like like James said, we’re we’re looking at a of opportunities, a range of entry points from large deals that would come with the team and platform all the way down to onesie twosies that would be a more modest entry, and, we’re gonna be opportunistic. We don’t feel any, you know, pressure to to be fast about it. We wanna get it right. And I think James’ answer to the previous question was right on where it’s less about the size of the deal for shop, and it’s all about the operator. When you look at our lease coverage, it’s it’s so high, relatively speaking, and and that’s based on matching great opportunities with great operators.

And if we can stay true to that with respect to shop as well, then all of our energy can really be focused on growth. And, and so I’ll say we we continue to look at at the field, and we’ll be opportunistic. I’m I’m I’d be really surprised if we didn’t get something done with respect to shop within the next, you know, twelve months.

Michael Carroll, Analyst, RBC Capital Markets: Alright. Thanks, Dave. That’s helpful. Then I guess last for me is, has the competitive landscape made it more difficult, I guess, specifically on the seniors housing side? I know cap rates for SNFs rarely change.

I’m assuming that that’s still kind of holding true. But are you seeing any type of compression on the seniors housing side that that might make it more difficult?

James Collister, Chief Investment Officer, CareTrust REIT: I wouldn’t say they make it more difficult. You just have a much bigger range in the seniors housing world of cap rates, Mike, depending on location, the quality type, the newness of the asset, a whole host of other things. So you see just a different wider range of cap rates than you see in the skill side. Think anything that makes it particularly difficult. I mean, as you get into lower cap rates, we may not be as competitive as others, but, I don’t think there’s anything that makes it particularly difficult.

There are more prospective buyers, but I think with the right opportunity, when we’ve got the right operator, you know, we can be pretty gritty and still compete.

Dave Sedgwick, President and CEO, CareTrust REIT: K. Great. Thank you. Thanks, Mike.

Conference Operator: Your next question is coming from the line of Alec Fiji from Baird. Please go ahead.

Lauren Beale, Chief Accounting Officer, CareTrust REIT0: Hi, and thanks for

James Collister, Chief Investment Officer, CareTrust REIT: taking my

Lauren Beale, Chief Accounting Officer, CareTrust REIT0: question. First, on the new investment grade rating, just can you speak on what you would do for the next issuance, whether private placement or another term loan, and when that would be?

Bill Wagner, Chief Financial Officer, CareTrust REIT: Yeah. Look. It’s Bill. The next issuance, if we did a bond offering, we’d probably wait until we get investment grade from all the different, agencies. And it all depends on the size would all depend on the investment pipeline and what we’re closing on at the time.

But with equity priced so nicely right now, that’s a, real good way to fund our investments.

Lauren Beale, Chief Accounting Officer, CareTrust REIT0: Yeah. It makes sense. And, you know, second for me is, you know, thinking of opportunities with new operators. Are you, you know, looking at new operators, and would you look to finance deals with them or buy assets right away to start relationships? And just any any commentary on new operators.

Dave Sedgwick, President and CEO, CareTrust REIT: Yeah. Like, I think we spent quite a bit of time developing a bench of of, new operators, and that’s that’s been the case from day one. It continues to be the case. I think as we, continue to execute on this pipe, you will see a a you’ll continue to see a combination of growing with existing operators and bringing on some new ones.

Lauren Beale, Chief Accounting Officer, CareTrust REIT0: Alright. That’s it for me. Thank you.

James Collister, Chief Investment Officer, CareTrust REIT: Thanks a lot, Alec.

Conference Operator: Your next question is coming from the line of Omotayo Okusanya of Deutsche Bank. Please go ahead.

Dave Sedgwick, President and CEO, CareTrust REIT: We don’t hear a question. Dave? Yep. Yeah.

: Hey. Sorry about that. Most of my questions have been answered, but just curious your thoughts on the overall I know you you talked a little bit about the big beautiful bill already, but, like, the overall regulatory backdrop, I I think, again, things look like they’ve gone pretty well from a Medicare and Medicaid perspective this year. But if you’re kind of talking about next year where you potentially have, you know, increased budget deficits because of the one beautiful bill because of the one big beautiful bill, Does that put additional pressure potentially on what reimbursement could look like next year? Do we start to kind of have the word sequestration thrown around a little bit next year?

Dave Sedgwick, President and CEO, CareTrust REIT: Oh, I I suppose it’ll it remains to be seen. I think what we’re really encouraged by, though, is when there is so much talk and hand wringing over the risks associated to Medicaid in particular, I think what we saw was, in fact, that Medicaid, for skilled nursing, for senior care, has broad bipartisan support both at the federal and state level. And if there are some pressures more locally, I think that, that reality will will continue to defend the, the Medicaid rate for senior care above and prioritize it above maybe other Medicaid participants that, maybe are younger, able-bodied, that sort of thing.

: Gotcha. Okay. Thank you.

Dave Sedgwick, President and CEO, CareTrust REIT: Alright, Tayo. Thanks.

Conference Operator: Your next question is coming from the line of Austin Wurschmidt from KeyBanc Capital Markets. Please go ahead.

Lauren Beale, Chief Accounting Officer, CareTrust REIT1: Thanks. Hello, everybody. Hey, Austin. Just honing in again a little bit on sort of the relationship side. Are the shop operators you’re speaking to mostly relationships you’ve had a track record worth?

And and would that sort of be the initial foray or your preference, I guess? Or or, you know, similarly, are you casting a much wider net, you know, as you are, you know, across the skilled side?

Dave Sedgwick, President and CEO, CareTrust REIT: I would say that we’re we’re casting a wider net with respect to shop. And these are these are, in in some respects, new relationships to CareTrust, but in some respects, long standing relationships with individuals at CareTrust. So I I think that, we’re gonna we’re a lot of time on that front making sure that we’ve fully vetted these operators because, you know, the economics are are different when, when it’s a shop environment, and, wanna make sure we get that right.

Lauren Beale, Chief Accounting Officer, CareTrust REIT1: Have you spoken to any of your existing relationships within the portfolio about potential conversion opportunities, from the triple net structure to the right data structure?

Dave Sedgwick, President and CEO, CareTrust REIT: No. That’s not our focus. Our focus is really, growing growing that space de novo.

Lauren Beale, Chief Accounting Officer, CareTrust REIT1: Understood. That’s helpful. And then just one more for me. I just would love to hear an update. You know, you touched a little bit on the integration, but would would like to hear a little bit on some of the synergy side potentially.

You know, if if you could provide a figure, you know, how far along are you in sort of realizing some of those synergies and, just any potential upside to maybe, your initial thoughts now that you’ve had some time to, you know, digest the portfolio and and integrate some of the team? Thanks.

Derek Bunker, SVP Strategy and Investor Relations, CareTrust REIT: Hey, Austin. It’s Derek. Yeah. So far, so good. Really excited about the team.

I think as we have continued to dig in and go through the process, our confidence in our forecast and what we thought we could accomplish together, has only increased. I think last time we had signaled that they were on a run rate about 10,000,000, and our synergies are about 50% of that. That would probably kick in mostly in q one next year. And I think we’re still, on track with all that, and it’s looking solid.

Lauren Beale, Chief Accounting Officer, CareTrust REIT1: Thanks, everybody.

Dave Sedgwick, President and CEO, CareTrust REIT: Thanks, Austin.

Conference Operator: I will now turn the back the call back over to David Sevek, CEO, for closing remarks. Please go ahead.

Dave Sedgwick, President and CEO, CareTrust REIT: Okay. Thank you. Well, really appreciate everybody’s time and interest, and wish you a nice end of the week. Thank you.

Conference Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.

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