CareTrust REIT, National HealthCare Corp. and Ventas held second-quarter earnings calls or released earnings reports on Friday. Here’s a roundup.
National HealthCare Corp.
Continued occupancy increases in skilled nursing and the June 2021 acquisition of hospice provider Caris HealthCare translated to a 3.1% increase in net operating revenues and government stimulus income for the second quarter compared with the same quarter in 2021, Murfreesboro, TN-based National HealthCare Corp. reported Friday.
The amount totaled $271.4 million in the second quarter of this year compared with $263.2 million for the same quarter last year.
The net increase in resident/patient revenue was offset by the reduction in government stimulus income of $14.8 million during the second quarter compared with the same period a year ago, the company said.
NHC reported net income of $3.2 million compared with $104.9 million for the same period in 2021. Much of the 2021 amount, however, was due to the gain recorded from the acquisition of Caris HealthCare, NHC said. Not counting that gain, and not counting unrealized losses in the company’s marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the second quarter was $7.2 million compared with $15.1 million for the same period in 2021.
A decrease in non-GAAP earnings for the second quarter of this year compared with the same period last year primarily was due to the $14.8 million less of government stimulus income recorded, as well as incurring inflationary wage pressures on labor costs, NHC said.
GAAP diluted earnings per share were $0.21 for the quarter compared with $6.80 for the same period last year. Adjusted diluted earnings per share were $0.46 and $0.98 for the second quarters of 2022 and 2021, respectively.
NHC affiliates operate 75 skilled nursing facilities, 24 assisted living communities, five independent living communities, three behavioral health hospitals, 35 homecare agencies and 29 hospice agencies. NHC’s other services include memory care units, pharmacy services, a rehabilitation services company, and management and accounting services for third-party post-acute operators.
CareTrust REIT
Inflation, rising rates and mounting indications of a recession present challenges and opportunities for CareTrust REIT and its operating partners, President and CEO Dave Sedgwick said in discussing the San Clemente, CA-based company’s second-quarter operating results.
“These extraordinary times of rising borrowing rates could result in price moderation for assets and tip the scales to buyers like us who present more certainty to close in the coming quarters,” he said in a statement. Recessionary cycles historically have had a net benefit for the skilled nursing sector because labor tends to “loosen” while demand remains unaffected, Sedgwick added.
The real estate investment trust issued a press release Thursday and hosted a call for analysts on Friday. Read what executives said about debt investment; portfolio optimization, including efforts to expand into behavioral health; and operational performance at McKnight’s Senior Living.
Ventas
The business performance of Chicago-based real estate investment trust Ventas during the second quarter was at the high end of expectations, Ventas Chairman and CEO Debra Cafaro said Friday during a second-quarter earnings.
The REIT’s senior housing operating portfolio benefited from strong demand and expanded pricing power, offsetting anticipated expense growth caused by inflationary pressures, she said. Favorable supply and demand conditions, minimal competition and a growing population of older adults entering the market place point to strong results for Ventas in the future, according to the company.
Read more about the REIT’s second-quarter performance — occupancy, revenue, workforce initiatives and investments — at McKnight’s Senior Living.
