CareTrust REIT, Inc. (CTRE) Stock Analysis

CareTrust REIT’s principal competitive advantage lies in its focused, disciplined approach to healthcare real estate, particularly skilled nursing facilities (SNFs) and seniors housing. The company’s portfolio is highly diversified by geography and operator, with 400 properties across 32 U.S. states and the U.K. as of June 2025. No single state accounts for more than 22% of run-rate revenue, and its largest tenant, The Ensign Group, represents 20% of revenue—lower concentration than many peers, such as Omega Healthcare (OHI), which has historically had higher tenant exposure.

CTRE’s triple-net lease structure shifts operating costs and capital expenditure risk to tenants, supporting stable cash flows and high EBITDA margins (92.7% in 2024). The company’s average lease coverage ratios (EBITDAR to rent) for top tenants exceed 2.2x, indicating strong tenant health.

Financially, CTRE maintains a conservative balance sheet: net debt to EBITDA was 0.5x at year-end 2024, well below sector averages (e.g., OHI at ~5x). This low leverage, combined with investment-grade ratings from Fitch and S&P, provides flexibility to pursue accretive acquisitions—evidenced by the recent U.K. expansion, which is expected to be 6% accretive to FFO per share in year one.

CTRE’s management team has deep sector experience and a track record of prudent capital allocation. Its culture emphasizes tenant quality, risk management, and operational transparency, supporting above-average customer satisfaction and portfolio resilience.