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1. Company Snapshot

1.a. Company Description

CareTrust REIT, Inc.is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties.With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States.

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1.b. Last Insights on CTRE

CareTrust REIT's recent performance was driven by strong operational and financial results, including rising EBITDARM coverage and decreasing net debt to annualized EBITDA. Accretive acquisitions, such as the recent purchase of 12 skilled nursing facilities and one skilled nursing campus for $437 million, fueled growth. The company's aging demographics and international diversification also present opportunities, particularly with the US and UK's growing need for skilled nursing facilities. Additionally, CareTrust's entry into the senior housing operating portfolio (SHOP) with the acquisition of three Texas senior living communities further expands its portfolio.

1.c. Company Highlights

2. CareTrust REIT Q1 2026: Robust Yields, Upgraded Guidance, and Strong Capital Position

CareTrust REIT delivered a standout first quarter, generating $245 million in new investments at an 8.8% blended stabilized yield. Normalized FFO rose 38% to $107.4 million, while normalized FAD climbed 33% to $107.6 million, translating to $0.48 per share for both metrics—up 14% and 12% YoY, respectively. The company beat earnings expectations with an EPS of $0.36 versus a consensus of $0.3535. With $70 million in cash, $850 million of revolving credit, and $879 million of ATM capacity, the firm maintains a solid liquidity profile. Valuation multiples reflect this strength, with a P/E of 27.7, a P/B of 2.25, and an EV/EBITDA of 21.22, underscoring the market’s premium for CareTrust’s disciplined growth strategy.[1]

Publication Date: 07:53

📋 Highlights
  • Investment Momentum:: Closed $1.1B YTD in investments at 8.9% yield, with $360M pipeline, 50%+ in UK care homes.
  • FFO/FAD Growth:: Normalized FFO up 38% ($107.4M) and FAD up 33% ($107.6M), per-share growth at 14–12% YoY.
  • Liquidity & Guidance:: $70M cash, $850M credit facility, $879M ATM capacity; raised 2026 FFO/share guidance to $1.91–$2.01.
  • Strategic Positioning:: Dual investment-grade rating, 50-bps cap-rate compression in SHOP, targeting low double-digit IRR across markets.
  • Debt & Growth Plans:: Potential USD-denominated debt issuance; sustained double-digit FAD growth outlook across all three growth segments.

Investment Pipeline & Yields

Year‑to‑date, CareTrust has closed roughly $1.1 billion in deals at an 8.9% yield, with an additional $865 million added since April. The pipeline now stands at $360 million, more than half of which is anchored in UK care homes—an area where yields remain stable despite mild competition. The company’s off‑market sourcing and deep operator relationships enable it to lock in attractive yields early, reinforcing its portfolio quality.

Deal Flow & Growth Engines

CareTrust’s tri‑segment growth model—Skilled Nursing (SHOP), Home Health (SHOP), and Care Homes—continues to deliver steady deal flow. The skilled nursing segment remains active, driven by both brokered and proprietary opportunities, while the UK care home pipeline offers significant upside. Recent acquisition of 110 assisted‑living units in Prescott, AZ, exemplifies the firm’s ability to secure high‑yield, operator‑centric assets.

Capital Structure & Credit Rating

The recent upgrade to an investment‑grade rating by Moody’s, coupled with a $1.36 Net Debt/EBITDA ratio, positions CareTrust to tap into high‑grade debt markets this year. The company’s low cost of capital and robust liquidity give it flexibility to pursue larger portfolios and optional high‑grade market issuances, enhancing shareholder value.

Strategic Outlook & Market Opportunities

CareTrust has raised 2026 full‑year guidance, projecting normalized FFO per share of $1.91 to $2.01 and normalized FAD of $1.98 to $2.02. The firm remains agnostic on markets, targeting primary, secondary, and tertiary segments on a deal‑by‑deal basis to secure low double‑digit IRRs. Cap rates in SHOP have compressed 50 bps in the last six months, yet the firm’s operator‑centered approach and creative structuring keep it well‑positioned to capture value.

Valuation & Investor Considerations

With a dividend yield of 3.35% and a free cash flow yield of 4.07%, CareTrust offers attractive income alongside growth. The firm’s ROIC of 5.39% and ROE of 8.67% demonstrate efficient capital deployment. Investors should note the company’s strategic use of its dual investment‑grade rating and low debt leverage, which collectively underpin the current valuation multiples and provide a cushion for continued upside.

3. NewsRoom

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CareTrust REIT Q1 Earnings Call Highlights

May -09

Source: marketbeat.com

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CareTrust REIT, Inc. (CTRE) Q1 2026 Earnings Call Transcript

May -08

Source: seekingalpha.com

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CareTrust REIT (CTRE) Q1 FFO Meet Estimates

May -08

Source: zacks.com

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CareTrust REIT Announces First Quarter 2026 Operating Results; Increases 2026 Guidance

May -07

Source: businesswire.com

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REITs Excel, Earnings Swell, Fed Rebels

May -03

Source: seekingalpha.com

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CareTrust REIT Receives Investment Grade Rating Upgrade from Moody's

Apr -27

Source: businesswire.com

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CareTrust REIT Announces Approximately $628 Million of Investments

Apr -27

Source: businesswire.com

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10 Dividend Growth Stocks: April 2025

Apr -24

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.59%)

6. Segments

Rental

Expected Growth: 7.5%

CareTrust REIT's 7.5% rental growth is driven by a strong demand for senior housing and healthcare facilities, fueled by an aging population and increasing healthcare spending. Additionally, the company's strategic acquisitions and investments in high-quality properties, as well as its focus on operator diversification, contribute to its growth momentum.

Interest and Other

Expected Growth: 8.5%

CareTrust REIT's 8.5% growth in Interest and Other is driven by increasing investment in high-yielding debt securities, expansion of its mortgage loan portfolio, and rising interest income from its real estate investments. Additionally, the company's strategic partnerships and joint ventures contribute to the growth, along with its focus on diversifying its revenue streams.

7. Detailed Products

Skilled Nursing Facilities

CareTrust REIT, Inc. invests in skilled nursing facilities that provide 24-hour skilled care and rehabilitation services to patients who require intensive therapy and nursing care.

Assisted Living Facilities

CareTrust REIT, Inc. invests in assisted living facilities that provide supportive care and services to seniors who require assistance with daily living activities.

Memory Care Facilities

CareTrust REIT, Inc. invests in memory care facilities that provide specialized care and services to individuals with Alzheimer's disease and other forms of dementia.

Independent Living Facilities

CareTrust REIT, Inc. invests in independent living facilities that provide housing and amenities to seniors who are able to live independently.

8. CareTrust REIT, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

CareTrust REIT, Inc. operates in a niche market, providing real estate solutions to healthcare operators. While there are substitutes available, the company's focus on healthcare real estate and its expertise in the field reduce the threat of substitutes.

Bargaining Power Of Customers

CareTrust REIT, Inc.'s customers are primarily healthcare operators, who have limited bargaining power due to the specialized nature of the company's services.

Bargaining Power Of Suppliers

CareTrust REIT, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. Additionally, the company's scale and expertise in healthcare real estate give it an upper hand in negotiations with suppliers.

Threat Of New Entrants

The healthcare real estate market has high barriers to entry, including regulatory hurdles and the need for specialized expertise. This limits the threat of new entrants and gives CareTrust REIT, Inc. a competitive advantage.

Intensity Of Rivalry

The healthcare real estate market is moderately competitive, with a few established players. While there is some rivalry, CareTrust REIT, Inc.'s focus on healthcare real estate and its expertise in the field help it to differentiate itself from competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.60%
Debt Cost 9.20%
Equity Weight 70.40%
Equity Cost 9.20%
WACC 9.20%
Leverage 42.04%

11. Quality Control: CareTrust REIT, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CareTrust REIT

A-Score: 7.1/10

Value: 2.5

Growth: 3.9

Quality: 8.3

Yield: 9.0

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Omega Healthcare

A-Score: 6.9/10

Value: 2.9

Growth: 3.0

Quality: 7.3

Yield: 10.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Sabra Health Care REIT

A-Score: 6.8/10

Value: 4.0

Growth: 3.4

Quality: 6.8

Yield: 10.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
National Health Investors

A-Score: 6.8/10

Value: 2.8

Growth: 4.4

Quality: 7.6

Yield: 9.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Healthcare Realty Trust

A-Score: 6.4/10

Value: 5.9

Growth: 2.9

Quality: 5.4

Yield: 10.0

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Ventas

A-Score: 5.6/10

Value: 1.4

Growth: 3.6

Quality: 3.2

Yield: 7.0

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

41.6$

Current Price

41.6$

Potential

-0.00%

Expected Cash-Flows