2024-04-06 07:30:00 ET
Summary
- CareTrust REIT has outperformed its peers in the healthcare REIT sector over the past year, up by nearly 27%. They also outperformed their peers, Omega Healthcare Investors & Sabra Healthcare REIT.
- The company has a safe dividend payout ratio and has raised its dividend for 9 consecutive years, with the latest, a 4% increase to $0.29.
- CareTrust REIT has a low-leverage balance sheet, strong acquisition growth, and increased liquidity, positioning it for future growth and acquisitions.
- The REIT stands to benefit from the 75% increase in the need for nursing care facilities for aging baby boomers by 2030.
- If rates remain higher for longer and are not cut as expected, CTRE could face tenant problems similar to peer Medical Properties Trust.
Previous Thesis
I last covered Care Trust REIT ( CTRE ) here on Seeking Alpha back in November. I thought the stock was a safer alternative to another healthcare REIT that is a favorite amongst dividend investors, Omega Healthcare Investors ( OHI ). Since that article published CTRE is up nearly 20%, so investors who bought in during that time have enjoyed some nice capital gains.
I also touched on the company's chance to capture growth with the expected increased revenue of the healthcare industry going forward. I discussed their steady cash flows and dividend growth, which are what made the REIT very attractive in the first place....
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For further details see:
CareTrust REIT: This Near 5% Yielding Healthcare REIT Is A Great Long-Term Buy For Dividend Investors