We came across a bullish thesis on CareTrust REIT, Inc. on Investomine’s Substack. In this article, we will summarize the bulls’ thesis on CTRE. CareTrust REIT, Inc.’s share was trading at $40.01 as of February 16th. CTRE’s trailing and forward P/E were 25.48 according to Yahoo Finance.
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CareTrust REIT is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, senior housing and other healthcare-related properties located in the United States and the United Kingdom.
CTRE closed 2025 with transformational growth driven by large-scale acquisitions, international expansion into the United Kingdom, and significant balance sheet scaling, positioning the company as an evolving healthcare real estate platform rather than a pure triple-net skilled nursing landlord. The portfolio expanded to 410 owned properties totaling nearly 38,000 beds/units across 32 U.S. states and the U.K., supported by more than $1.56 billion in acquisitions, including skilled nursing facilities, senior housing triple-net assets, and initial SHOP properties.
The acquisition of Care REIT plc marked a step-change in geographic diversification and scale rather than incremental growth. Revenue rose sharply year over year to $369.4 million, driven primarily by skilled nursing triple-net leases, while senior housing contributed meaningfully and the SHOP platform remained small but strategically important. Senior housing occupancy trends outperformed skilled nursing, reflecting stronger private-pay demand recovery, though skilled nursing continues to anchor rent stability through long-term leases.
Financing activity was substantial, with major equity issuance, forward equity contracts, and increased debt supporting acquisitions, alongside a growing structured finance portfolio that enhanced income diversification. The introduction of a RIDEA-based SHOP platform represents a strategic pivot toward operational exposure with higher upside potential but greater volatility, signaling management’s long-term confidence in private-pay senior housing fundamentals.
Key strengths include operator diversification, capital markets access, and relationships with major tenants such as The Ensign Group, while risks center on reimbursement exposure, rising leverage, regulatory uncertainty, and integration execution. Overall, the company is transitioning into a mid-cap, diversified healthcare REIT with demographic tailwinds supporting demand, though disciplined execution and balance-sheet pacing will be critical to sustaining AFFO growth into 2026.
Previously, we covered a bullish thesis on Omega Healthcare Investors, Inc. OHI by NotFunnyLikeHaHa in May 2025, which highlighted the company’s attractive dividend yield, stable FFO, and demographic tailwinds supporting long-term care demand. OHI’s stock price has appreciated by approximately 26.67% since our coverage. Investomine shares a similar view but emphasizes on CareTrust REIT, Inc.’s acquisitions, U.K. expansion, and SHOP-driven diversification.
CareTrust REIT, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held CTRE at the end of the third quarter which was 26 in the previous quarter. While we acknowledge the risk and potential of CTRE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CTRE and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
