CareTrust REIT Inc. expects normalized funds from operations for full year 2018 to be in the range of $1.25 to $1.27 per share.
The S&P Capital IQ consensus FFO-per-share estimate for the full year is $1.30.
Additionally, the healthcare real estate investment trust reached a lease termination deal with Pristine Senior Living LLC whereby the tenant and its affiliates will surrender its remaining CareTrust facilities to operators chosen by the trust. Prior to the transitions, Pristine will continue to operate the facilities and pay the scheduled base rent.
As a result of the deal, CareTrust CFO Bill Wagner said the company expects to realize Pristine's rental revenues on a cash basis and reserve about $10.4 million of Pristine's obligations. The reserve comprises $6.3 million in property tax reimbursements and advances of certain franchise permit fees made in 2017, $3.3 million of 2017 property tax reimbursements and franchise permit fees due in 2018, and $800,000 of unpaid base rent from September 2017.
