BMO Capital analyst Juan C. Sanabria maintained a Buy rating on CareTrust REIT (CTRE – Research Report) today and set a price target of $24.00.
Juan C. Sanabria’s Buy rating for CareTrust REIT is largely influenced by a combination of factors. Despite missing the 3Q23 FFO, CareTrust REIT managed to meet its FAD even in the face of significant de-leveraging. The company also demonstrated improved collections, which sequentially increased by 80bps to 97.5%. Furthermore, CareTrust REIT has shown a positive trend in expanding its investment pipeline, which was upped by $25M to $175M, excluding larger portfolios. Management’s remarks point to a favorable acquisition landscape aligning with NIC commentary.
In addition to these, the low leverage at 2.5x and closing of $80.5M in 3Q/4QTD at 10.6% were also pivotal in Sanabria’s rating. CareTrust REIT has increased its targeted dispositions, sparking interest in the rationale behind and expectations from this move. The company also managed to meet the Street’s Normalized FAD of $0.37 per share. Finally, CareTrust REIT’s acquisition activities have gained momentum. In the 3Q23 alone, the company invested a total of $45.4M in one asset and two secured loans, offering a 9.9% yield. This progress in acquisitions, improved collections, and pipeline expansion are key factors that support Sanabria’s Buy rating for CareTrust REIT.
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CareTrust REIT (CTRE) Company Description:
CareTrust REIT, Inc. operates as real estate investment company, which engages in the ownership, acquisition, and leasing of healthcare-related properties. It offers independent living, memory care, and assisted, and skilled nursing facilities. The company was founded on October 29, 2013 and is headquartered in San Clemente, CA.
Read More on CTRE:
- CTRE Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- CareTrust REIT added to Analyst Current Favorites list at Raymond James
- CareTrust REIT initiated with a Buy at Jefferies
- RBC upgrades CareTrust REIT on improving competitive landspace
- CareTrust REIT upgraded to Outperform from Sector Perform at RBC Capital
