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CareTrust REIT posts strong Q1 with 14% FFO growth but holds at 19x valuation, awaiting pullback.

Analyst Insights
12 Jun 2026
Seeking Alpha
View Source
Neutral
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CareTrust REIT reported a strong first quarter with funds from operations (FFO) up 14% year-over-year and raised its 2024 guidance. The company maintains a very strong balance sheet, with net debt to EBITDA at 0.6x and an investment-grade credit rating, supporting future acquisitions. Despite a 16.4% dividend increase and aggressive investments, the current forward price to adjusted funds from operations (P/AFFO) ratio near 19x suggests the stock is fairly valued, prompting a hold rating while waiting for a better entry point closer to $30. Macro risks and valuation concerns temper enthusiasm despite solid fundamentals.

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