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    CareTrust REIT (CTRE) Valuation After New LTIP Units and Texas Senior Housing Acquisitions

    Simply Wall St·12/18/2025 02:34:09
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    CareTrust REIT (CTRE) has been drawing more attention after revamping its long term incentive plan with new LTIP Units and buying three senior living communities in Texas, moves that quietly reshape its growth story.

    See our latest analysis for CareTrust REIT.

    Those incentive tweaks and Texas acquisitions are landing against a backdrop of strong momentum, with the share price at $36.34 and a robust year to date share price return of 37.03 percent. This is underpinned by a 38.60 percent one year total shareholder return and a standout 121.73 percent three year total shareholder return, which suggests investors see further room for growth rather than just a short term trade.

    If you like the defensive angle of healthcare real estate but want to see what else is performing well, explore healthcare stocks as a curated way to spot more ideas.

    With shares closing at $36.34, trading at a double digit discount to analyst targets and an even steeper implied discount to intrinsic value, investors now face a key question: is CareTrust REIT still mispriced, or is the market already baking in years of future growth?

    Most Popular Narrative Narrative: 10.6% Undervalued

    With CareTrust REIT last closing at $36.34 against a most popular narrative fair value near $40.64, the story implies more upside than the recent rally alone suggests.

    The expanded investment pipeline of approximately $600 million mainly in skilled nursing, seniors housing, and U.K. care homes gives strong visibility into continued external growth, bolstering FFO and supporting durable, long term dividend increases.

    Read the complete narrative.

    Curious how a real estate landlord earns a growth style valuation while leaning on rising margins, faster revenue expansion, and a lower future earnings multiple than its industry benchmark? The math behind that balance is what powers this fair value call.

    Result: Fair Value of $40.64 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, rising regulatory and reimbursement risks in skilled nursing, along with the execution challenge of rapid U.K. expansion, could quickly undercut that bullish narrative.

    Find out about the key risks to this CareTrust REIT narrative.

    Build Your Own CareTrust REIT Narrative

    If you see the story differently or prefer to dig into the numbers yourself, you can build a custom view in just a few minutes: Do it your way

    A great starting point for your CareTrust REIT research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.