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What CareTrust REIT (CTRE)'s Transformational 2025 and 2026 Outlook Means For Shareholders

Simply Wall St·02/16/2026 16:21:51
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  • In February 2026, CareTrust REIT reported fourth-quarter and full-year 2025 results showing sharply higher revenue and net income, alongside funds from operations (FFO) of US$104.1 million, or US$0.47 per share, and issued 2026 guidance for net income of US$1.45–US$1.50 per share and FFO of US$1.90–US$1.95 per share.
  • The company highlighted what it called a transformational 2025, completing about US$1.80 billion of investments, entering the U.K. care home and SHOP markets, and maintaining full rent collection with low leverage, which together reshape how investors may think about its growth profile and risk mix.
  • We’ll now examine how this transformational year, particularly the US$1.80 billion of investments and new U.K. and SHOP platforms, reshapes CareTrust’s investment narrative.

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CareTrust REIT Investment Narrative Recap

To own CareTrust REIT, you need to believe in its ability to turn a rapidly expanding, more complex healthcare portfolio into consistent, high quality cash flows without overreaching. The latest results, with sharply higher revenue and net income plus 2026 FFO guidance of US$1.90–US$1.95 per share, reinforce the near term growth catalyst of deploying US$1.80 billion of 2025 investments, but they do little to reduce the key risk that fast expansion and U.K. entry could raise integration and execution challenges.

The most relevant update here is management’s 2026 guidance for net income of US$1.45–US$1.50 per share and normalized FFO growth expectations, which ties directly into the core catalyst of an enlarged, income producing portfolio and a roughly US$500 million investment pipeline. For investors, these numbers frame how quickly the transformational 2025 deals, including U.K. care homes and the first SHOP assets, may translate into earnings power while the company continues to balance low leverage with higher complexity.

Yet against this strong growth story, investors should be aware of how entering a new U.K. regulatory regime could...

Read the full narrative on CareTrust REIT (it's free!)

CareTrust REIT's narrative projects $649.2 million revenue and $460.9 million earnings by 2028. This requires 20.2% yearly revenue growth and a roughly $241.6 million earnings increase from $219.3 million today.

Uncover how CareTrust REIT's forecasts yield a $41.45 fair value, a 4% upside to its current price.

Exploring Other Perspectives

CTRE 1-Year Stock Price Chart
CTRE 1-Year Stock Price Chart

Nine fair value estimates from the Simply Wall St Community span roughly US$16 to US$61 per share, showing how far apart individual views can be. As you weigh those opinions against CareTrust’s rapid portfolio expansion and integration risk, you may want to explore several alternative viewpoints before deciding how its recent growth could affect future performance.

Explore 9 other fair value estimates on CareTrust REIT - why the stock might be worth less than half the current price!

Build Your Own CareTrust REIT Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.