- CareTrust REIT sports a low valuation, but its skilled nursing tenant-operators are facing huge challenges, which has eroded rent coverage for CTRE's properties.
- The nursing care industry has lost some 240,000 employees over the last few years, and total employment in this industry has not been this low since 1994.
- President Biden's proposed minimum staffing requirement, if enacted, would severely exacerbate the problem.
- Fortunately, occupancy is slowly rising at nursing homes.
- CTRE is the best-in-class skilled nursing REIT.
For further details see:
CareTrust REIT: Worsening Labor Shortage But Improving Occupancy