SEGMENT REPORTING
The chief operating decision maker (“CODM”) is the President and Chief Executive Officer. The Company represents a single reportable segment, based on how its CODM evaluates the business and allocates resources. The CODM assesses performance for the Company and decides how to allocate resources based on consolidated net income that is also reported on the consolidated income statements. The CODM does not review segment assets at a different asset level or category than the amounts disclosed in the consolidated balance sheets. The CODM uses net income to evaluate the performance of the Company in deciding whether to reinvest profits into the Company.
The CODM evaluates performance based on net income, as follows (dollars in thousands):
Year Ended December 31,
202520242023
Revenues:
Rental income$368,194 $228,261 $198,599 
Resident fees and services1,225 — — 
Interest income from financing receivables11,492 1,009 — 
Interest income from other real estate related investments and other income95,482 67,016 19,171 
Total revenues476,393 296,286 217,770 
Expenses:
Depreciation and amortization92,891 56,831 51,199 
Interest expense43,707 30,310 40,883 
Property taxes8,768 7,838 6,170 
Senior housing operating expenses952 — — 
Impairment of real estate investments2,483 42,225 36,301 
Transaction costs5,329 1,326 — 
Provision for loan losses— 4,900 — 
Property operating expenses(138)5,714 3,423 
Cash Compensation9,656 6,474 5,636 
Incentive compensation18,463 9,699 5,350 
Share-based compensation11,896 6,130 5,153 
Professional services5,942 2,785 2,399 
Taxes and Insurance1,934 1,019 908 
Other expenses(1)
4,574 2,816 2,359 
General and administrative52,465 28,923 21,805 
Total expenses206,457 178,067 159,781 
Other income (loss):
Other income, net4,350 — — 
Loss on extinguishment of debt(390)(657)— 
Gain (loss) on sale of real estate, net31,548 (2,208)2,218 
Unrealized gain (loss) on other real estate related investments, net15,831 9,045 (6,485)
Gain on foreign currency transactions, net4,012 — — 
Total other income (loss)55,351 6,180 (4,267)
Income before income tax expense325,287 124,399 53,722 
Income tax expense(5,001)— — 
Net income 320,286 124,399 53,722 
Net loss attributable to noncontrolling interests(252)(681)(13)
Net income attributable to CareTrust REIT, Inc.$320,538 $125,080 $53,735 

(1) Other expenses include certain overhead expenses.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 12, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.