CareTrust REIT: Opportunistic Capital Structure At The Right Moment

Roberts Berzins, CFA
10.21K Followers

Summary

  • CareTrust REIT has a strong balance sheet and a well-structured debt profile, allowing it to take advantage of depressed property prices in the senior housing sector.
  • CTRE's debt to EBITDA ratio is significantly lower than the sector average, and its debt financing structure allows for opportunistic acquisitions and aggressive pricing.
  • The company's current valuation does not fully reflect its growth potential and strong financial position, making it an attractive investment opportunity.

Happy doctor talking to a senior woman on a house call

Hispanolistic/E+ via Getty Images

CareTrust REIT (NYSE:CTRE) is a senior housing and healthcare REIT operating across 24 states with a portfolio of 205 net-lease properties. As of Q1, 2023, CTRE had a roster of 18 operators, where the top ten accounted for ~89% of leases.

This article was written by

10.21K Followers
Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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