CareTrust REIT: Nursing Home REIT Set To Age Gracefully

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About: CareTrust REIT, Inc. (CTRE), Includes: ENSG
by: Cashflow Capitalist
This article is exclusive for subscribers.
Cashflow Capitalist
Long-term horizon, dividend investing, dividend growth investing, REITs
Summary

CTRE, which owns triple net leased nursing homes and senior housing, is facing some short-term headwinds that have driven the stock price down.

The company's long-term prospects, however, remain quite strong.

Most of CTRE's tenants are financially strong, with only a few bad apples that management is actively dealing with.

The dividend is still comfortably covered by recurring cash flows and likely to continue growing.

Shares yield 4.47% and should result in a 10-year yield-on-cost between 8% and 10.6%.

Investment Thesis

CareTrust REIT (CTRE) is a landlord of mostly nursing homes and assisted living facilities along with some senior campus communities. It owns (but does not operate) 207 triple-net leased properties run