
CareTrust REIT (CTRE) Stock Forecast & Price Target
CareTrust REIT (CTRE) Analyst Ratings
Bulls say
CareTrust REIT Inc has significantly expanded its structured finance portfolio from $15 million at the beginning of 2022 to $871 million, enhancing operator relationships and diversifying yield within its investment strategy. This growth has contributed to the company achieving an industry-best funds from operations (FFO) growth rate while maintaining the lowest leverage profile among its peers, positioning it strongly in the healthcare real estate sector. Furthermore, analysts project a promising outlook with anticipated embedded funds available for distribution (FAD) growth of 10% by 2026, driven by continued accretive acquisitions and favorable market dynamics in the seniors housing operating properties (SHOP) segment.
Bears say
The analysis indicates a negative outlook on CareTrust REIT's stock due to potential increases in property prices driven by rising competition, which could adversely impact profitability. Additionally, the company faces risks associated with capital market conditions that may result in increased illiquidity, negatively affecting cash investments and asset valuations. Furthermore, the initial lease yield of 8.1% is considered low when compared to industry peers in the US, raising concerns about attracting investment in a market characterized by significant tax leakage and the potential for tenant disruptions affecting earnings growth.
This aggregate rating is based on analysts' research of CareTrust REIT and is not a guaranteed prediction by Public.com or investment advice.
CareTrust REIT (CTRE) Analyst Forecast & Price Prediction
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