SAN CLEMENTE, Calif., Dec. 18, 2014 (GLOBE NEWSWIRE) -- CareTrust REIT, Inc. (Nasdaq:CTRE) today announced that its Board of Directors has declared a quarterly cash dividend of $0.125 per share of CareTrust common stock, payable on or before January 15, 2015 to shareholders of record as of December 31, 2014.
"This year-end dividend allows us to preserve our REIT eligibility by clearing our remaining taxable income for the portion of the year since our June 1 spin-off," noted Greg Stapley, CareTrust's Chairman and Chief Executive Officer. The spin-off referenced was CareTrust's successful spin-off from well-known healthcare operator The Ensign Group, Inc. (Nasdaq:ENSG) on June 1, 2014, which established CareTrust REIT, Inc. as a separate and independent publicly-traded company. "More importantly, we believe that the amount of this dividend represents a good balance of conserving capital for impending growth while rewarding our shareholders for their patience while we completed the spin-off," he added.
CareTrust's Chief Financial Officer Bill Wagner discussed some of the metrics used in setting the year-end dividend. "Clearing the taxable income for the seven months was our first priority," he said, "but coincidentally a comparison of the amount of the year-end dividend to our third quarter performance represents a payout ratio of approximately 50% of funds available for distribution, or FAD."
Looking forward to 2015, Mr. Wagner added, "We currently anticipate that next year's quarterly dividends will see us in approximately that same 50% payout range, with correspondingly competitive yields."
Mr. Stapley noted that the company has accumulated a compelling pipeline of potentially accretive acquisition targets that are expected to provide ample opportunities to use undistributed FAD to create additional shareholder value. "In shepherding our cash," he stated, "we intend to strike a competitive balance between dividend payouts and accretive growth, all of which benefit shareholders and add value over the long run."
The regular dividend follows a $5.88 per share special dividend that the company paid on December 10, 2014 in order to purge accumulated earnings and profits allocated to CareTrust in connection with the spin-off. It was the first regular quarterly REIT dividend paid by CareTrust since the spin-off.
About CareTrustTM
CareTrust REIT, Inc. is a real estate investment company that is engaged in the ownership, acquisition and leasing of seniors housing and healthcare-related properties. CareTrust is organized and conducts its operations to qualify as a REIT for U.S. federal income tax purposes. With 97 net-leased healthcare properties and three operated seniors housing properties in ten states, CareTrust is pursuing opportunities nationwide to acquire additional properties that will be leased to a diverse group of local, regional and national seniors housing operators, healthcare services providers, and other healthcare-related businesses. More information about CareTrust is available at http://www.caretrustreit.com.
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This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief or expectations, including, but not limited to, statements regarding future financing plans, business strategies, growth prospects and operating and financial performance; expectations regarding the making of distributions and the payment of dividends; and compliance with and changes in governmental regulations.
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