CareTrust outlines 9.4% FFO growth target for 2026 while expanding in U.K. and SHOP
View original at seekingalpha.comCareTrust outlines 9.4% FFO growth target for 2026 while expanding in U.K. and SHOP Earnings Call Insights: CareTrust REIT (CTRE) Q4 2025 MANAGEMENT VIEW * David Sedgwick, CEO, described 2025 as a “transformational year” for CareTrust, highlighting a record pace of investments and the company’s expansion into the U.K…
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Investment pipeline remains strong at approximately $500 million
80% confidenceThe $500 million pipeline is about half U.K. care homes, about one-third U.S. skilled nursing, and the rest is a combination of SHOP deal, triple-net seniors and a couple of small loans
80% confidenceQ4 investments totaled approximately $562 million with a blended stabilized yield of 8.8%
80% confidenceMost competition is seen in SHOP where cap rates continue to compress as investors seek more exposure
80% confidenceData analytics team is prioritized on building out SHOP capabilities but will ultimately impact the whole organization
80% confidenceWith great operators and beefy coverage, CareTrust can manage through any headwinds in skilled nursing
80% confidenceCareTrust doubled its team of professionals in 2025 and brought in-house capabilities like tax and data science
80% confidenceThe skilled nursing environment is in a really good place right now with labor in a much better place than recent history
80% confidenceThe difference for continued strong growth is that the team is deeper and more capable, and they have the U.K. and SHOP TAMs to play in as well
80% confidenceSHOP deals are heavily marketed and the company targets a low double-digit IRR
80% confidenceThe start of 2026 feels very much like deja vu all over again compared to the beginning of 2025
80% confidence2025 was a transformational year for CareTrust with record pace of investments and expansion into U.K. care home market and U.S. SHOP
80% confidence2026 guidance does not assume any new investments, dispositions, debt repayments, or equity issuances beyond those announced to date
80% confidenceQ4 normalized FFO increased 42.7% year-over-year to $104.1 million and normalized FAD increased 38.7% to $103 million
80% confidence