- Total Investments surged to $1.8 billion in 2025, surpassing 2024’s record and driving 17.3% normalized FFO per share growth.
- FFO Guidance for 2026 is $1.90–$1.95/share, reflecting continued expansion after 2025’s $1.76/share (up 17.3% YoY).
- Acquisition Pipeline stands at $500 million, with 50% UK care homes, 33% US skilled nursing, and 17% SHOP deals.
- Q4 2025 Performance saw normalized FFO jump 42.7% to $104.1 million and FAD rise 38.7% to $103 million.
- SHOP Deals (Skilled Nursing) saw $215 million in 2026 deals already, with cap rates compressing due to increased competition.
Operational Highlights
The company's operational momentum is expected to continue, with a strong pipeline of $500 million in potential investments. James B. Callister noted that the pipeline is diverse, comprising UK care homes, US skilled nursing, and SHOP deals. David M. Sedgwick stated that their operating DNA and deep experience in skilled nursing inform how they underwrite, vet operators, and asset manage, providing a deeper level of expertise.
Growth Prospects
Analysts estimate next year's revenue growth at 11.9%, indicating a continued upward trajectory. The company's guidance for fiscal year 2026 is $1.90 to $1.95 in normalized FFO per share. With a deeper and more capable team, CareTrust REIT is poised to capitalize on emerging opportunities in the care home and SHOP sectors.
Valuation
CareTrust REIT's current valuation multiples are noteworthy, with a P/E Ratio of 32.41 and a P/B Ratio of 2.1. The Dividend Yield is 3.35%, indicating a relatively attractive return for income investors. The EV/EBITDA ratio is 19.74, suggesting that the company's enterprise value is reasonable relative to its earnings before interest, taxes, depreciation, and amortization.
Funding Future Growth
Derek J. Bunker stated that the company will likely continue to use a mix of equity issuances and balance sheet capacity to fund future external growth. With a strong financial position, CareTrust REIT is well-positioned to take advantage of favorable capital markets and explore alternative funding sources, such as the bond market.