CareTrust REIT, Inc. (CTRE): History, Ownership, Mission, How It Works & Makes Money

With a market capitalization hovering around $7.9 billion as of November 2025, CareTrust REIT, Inc. (CTRE) is defintely a key player in healthcare real estate, but are you clear on how its triple-net lease model translates that scale into your portfolio's returns?

The company is not just buying buildings; it's generating significant momentum, reporting Q3 2025 net income of $74.9 million-a powerful 67% jump year-over-year-by specializing in skilled nursing and seniors housing facilities across the US and the UK.

We'll break down the history of its spin-off from The Ensign Group, its core mission to support top-tier operators, and exactly how its long-term, inflation-protected leases ensure cash flow stability, which is why its normalized Funds From Operations (FFO) hit $94.7 million for the quarter.

CareTrust REIT, Inc. (CTRE) History

You need to understand the foundation of a company like CareTrust REIT, Inc. to gauge its future trajectory, and its story is one of a clean, strategic spin-off that immediately focused on aggressive growth. The company began as a pure-play real estate investment trust (REIT) in the healthcare sector, strategically separating from its parent to unlock value and pursue a dedicated, operator-centric investment model.

Given Company's Founding Timeline

Year established

The company was established as a separate, publicly-traded entity on June 1, 2014, following a tax-free spin-off from its former parent company, The Ensign Group, Inc..

Original location

San Clemente, California. The company has maintained its headquarters in this location, a coastal city in Orange County, California, since its inception.

Founding team members

The foundation of CareTrust REIT was built by a team with deep operational experience from The Ensign Group, Inc. The key leaders at the time of the spin-off were:

• Gregory K. Stapley: Founding President and Chief Executive Officer (CEO), who led the spin-off.
• Dave Sedgwick: A key leader since inception, who later became the President and CEO.
• Bill Wagner: Chief Financial Officer (CFO) and principal accounting officer since the company's inception.

Initial capital/funding

The company's initial capital was the real estate portfolio transferred from The Ensign Group, Inc. This initial portfolio consisted of 97 skilled nursing, assisted living, and independent living facilities. At the time of the spin-off, the company had an initial run-rate revenue of approximately $56 million, and later declared a special dividend (Purging Distribution) of approximately $132.0 million in October 2014 to satisfy REIT tax requirements.

Given Company's Evolution Milestones

The company's evolution shows a clear, rapid shift from a single-tenant portfolio to a diversified, multi-national healthcare REIT, which is defintely a huge move in under a decade.

Given Company's Transformative Moments

The real transformation for CareTrust REIT wasn't just in property count, but in diversifying its risk away from the initial single-tenant structure. You can see this shift in three major areas:

• Diversifying the Tenant Base: The company started with nearly 100% of its revenue coming from a single tenant, The Ensign Group, Inc. By June 30, 2025, it had successfully expanded its tenant roster to 39 operators, significantly mitigating concentration risk and validating its operator-centric model.
• International Expansion: The 2025 acquisition of the UK-based Care REIT for $817 million was a massive, transformative step. It immediately expanded the portfolio by 137 care homes, giving the company a platform in the fragmented UK care home market and making it a multi-national REIT.
• Aggressive Capital Deployment: The company's investment pace in 2025 is a clear sign of its maturity and access to capital. Deploying approximately $1.6 billion in investments throughout 2025, funded partly by a $736 million stock offering, shows a confident, accelerating growth strategy. This pace is what separates the players from the pretenders.

To understand what this aggressive growth means for shareholder returns and risk, you should review Exploring CareTrust REIT, Inc. (CTRE) Investor Profile: Who's Buying and Why?. This growth trajectory, coupled with a 2025 full-year normalized Funds From Operations (FFO) per share projected between $1.76 and $1.77, shows the financial impact of these strategic moves.

CareTrust REIT, Inc. (CTRE) Ownership Structure

CareTrust REIT, Inc. (CTRE) is overwhelmingly controlled by institutional investors, which is typical for a large, publicly-traded Real Estate Investment Trust (REIT). The top institutional holders, including BlackRock and Vanguard Group, Inc., effectively steer the company's long-term strategic direction, though day-to-day operations are managed by an experienced executive team.

Given Company's Current Status

CareTrust REIT is a self-administered, publicly-traded REIT listed on the New York Stock Exchange (NYSE) under the ticker symbol CTRE. As of November 2025, its market capitalization stands at approximately $8.12 Billion USD, reflecting its position as a significant player in the healthcare real estate sector. The company is classified as a Large Accelerated Filer with the SEC, indicating its substantial public float and market value. This public status means its financials and ownership structure are transparent and subject to stringent regulatory oversight, giving you a clear view of its performance and governance.

To be fair, while the company is publicly traded, its structure as a REIT means it must distribute at least 90% of its taxable income to shareholders annually, which directly influences its capital allocation strategy and dividend policy. The company has been in an aggressive growth phase, with total investments for 2025 reaching over $1.6 Billion, a historic amount even eclipsing the prior year. You can read more about what drives these decisions in the Mission Statement, Vision, & Core Values of CareTrust REIT, Inc. (CTRE).

Given Company's Ownership Breakdown

The ownership structure is highly concentrated among institutional investors, which is a key factor in understanding the stock's stability and trading volume. Honestly, with institutional ownership nearing 100%, the float available for retail trading is quite tight. Here's the quick math on the breakdown as of late 2025:

The largest institutional holders exert significant influence. For example, BlackRock, Inc. reported an ownership stake of 16.50% as of October 2025. Vanguard Group Inc. is also a major holder, managing a substantial portion of the shares. This heavy institutional presence suggests a focus on long-term value and stability, but it also means large block trades can sometimes move the stock price defintely.

Given Company's Leadership

The company is steered by a seasoned executive team, though a key transition is currently underway, which you should be aware of. The leadership is responsible for executing the strategy of acquiring and leasing skilled nursing, seniors housing, and other healthcare-related properties.

• David M. Sedgwick: President and Chief Executive Officer (CEO). He leads the company's strategic direction and operations, with his total compensation for the 2024 fiscal year reported at $9.62 million.
• William M. Wagner: Chief Financial Officer (CFO) and Treasurer. He is currently in this role but plans to retire in early 2026.
• Derek J. Bunker: Senior Vice President of Strategy and Investor Relations. He is expected to succeed Mr. Wagner as the new CFO, effective January 1, 2026, marking a planned transition at the top of the finance function.
• James B. Callister: Executive Vice President, Chief Investment Officer, and Secretary. He drives the company's aggressive acquisition pipeline, which has been a major source of growth, with the investment pipeline sitting at approximately $600 million as of the third quarter 2025.
• Lauren Beale: Senior Vice President and Chief Accounting Officer. She manages the company's accounting and financial reporting, and is taking on expanded responsibilities as part of the CFO transition plan.

The board of directors is also seeing changes, with Gregory K. Stapley, a former CEO, appointed to rejoin the board effective January 1, 2026, bringing decades of industry expertise back into the governance structure.

CareTrust REIT, Inc. (CTRE) Mission and Values

CareTrust REIT, Inc.'s mission is a dual commitment: to empower high-quality healthcare operators for growth and to deliver predictable, strong value to shareholders, a balance that defines their cultural DNA.

CareTrust REIT, Inc.'s Core Purpose

The company's core purpose extends beyond simply owning real estate; it centers on being a strategic capital partner in the complex, needs-based healthcare sector, primarily focused on the aging demographic in the US and UK. This approach is what allows them to maintain a strong operational foundation, evidenced by a 100.0% collection of contractual rent and interest in the third quarter of 2025.

Official mission statement

CareTrust REIT's formal mission is two-fold, clearly linking their operational strategy to investor returns. They don't just buy property; they select partners who are poised for growth and create a positive culture for their employees.

• Help top-notch healthcare operators realize their growth potential.
• Deliver steady value to shareholders through accretive investments, a well-protected dividend, and a best-in-class tenant roster.

Here's the quick math: the focus on accretive investments paid off in 2025, with year-to-date total investments hitting a record of approximately $1.6 billion, which directly supports their mission of growth for both operators and shareholders.

Vision statement

The company's vision is built around becoming a larger, stronger REIT positioned for a 'multiyear era of accelerated growth' by capitalizing on the generational demand for post-acute care. The strategy for this vision is their 'three-engine model,' which diversifies risk and opportunity.

• Aggressively pursue deals across three large opportunity sets: U.S. skilled nursing, U.K. care homes, and Seniors Housing Operating Portfolio (SHOP).
• Maintain a fortress balance sheet and great liquidity, like the $334 million in cash on hand and full capacity on the $1.2 billion revolver as of Q3 2025.
• Position the portfolio for success by adding talent and reengineering the organization to absorb massive recent growth.

To be fair, the vision is not just about size; it's about quality and stability. They aim to have better diversification across asset mix, operators, geography, and payer mix. You can see more on their shareholder base and strategy in Exploring CareTrust REIT, Inc. (CTRE) Investor Profile: Who's Buying and Why?

CareTrust REIT, Inc. slogan/tagline

CareTrust REIT does not use a single, public-facing tagline, preferring to communicate their value proposition through their dual-focus mission. The most concise phrase that captures their operational identity is their commitment to Strong Partnerships. They select operators who bring a scoreboard of quality results, not just a high rent check. This focus on operator quality is defintely a key differentiator.

Their financial projections for 2025 reflect this disciplined approach, with normalized Funds From Operations (FFO) per diluted share projected to be approximately $1.76 to $1.77, a clear metric of the steady value they aim to deliver.

CareTrust REIT, Inc. (CTRE) How It Works

CareTrust REIT, Inc. operates as a self-administered real estate investment trust (REIT) that generates revenue by owning, acquiring, and leasing healthcare-related properties under long-term, triple-net leases (NNN), where the tenant covers most operating expenses, taxes, and insurance. The company essentially acts as a specialized landlord, providing capital to healthcare operators who deliver essential care to the aging population.

CareTrust REIT, Inc.'s Product/Service Portfolio

CareTrust REIT, Inc. employs a strategic 'three-engine model' to diversify its portfolio and growth drivers, moving beyond its core U.S. business to capture global demographic trends. This model helps mitigate sector-specific risks while capitalizing on the high demand for senior care, a market that is defintely undersupplied in many regions.

CareTrust REIT, Inc.'s Operational Framework

The operational framework is built on disciplined capital allocation and a strong balance sheet, which is how they fund their aggressive, accretive acquisition strategy. For the nine months ended September 30, 2025, CareTrust REIT, Inc. reported total revenues of $341.5 million, a significant leap from the prior year, showing this model is working.

• Triple-Net Leasing: Secure long-term leases (often 10-15 years) with operators, transferring property-level operating risk, maintenance, and capital expenditures to the tenant. This creates stable, predictable cash flow for the REIT.
• Acquisition Engine: Focus on acquiring properties with an estimated stabilized yield of approximately 8.8% on recent investments, like the roughly $437 million spent on 12 skilled nursing facilities post-Q3 2025. Year-to-date investments totaled approximately $1.6 billion.
• Operator-Centric Model: Partner with a diverse group of local, regional, and national operators-39 operators as of June 30, 2025-to ensure portfolio quality and stability. They collect 100.0% of contractual rent and interest, which is a clean number.
• Balance Sheet Strength: Maintain a low-leveraged position, with Net Debt to Annualized Normalized Run Rate EBITDA at a fortress-like 0.42x as of September 30, 2025. That's a very low number for a REIT.

Here's the quick math: The company's 2025 guidance projects normalized Funds From Operations (FFO) per share to be between $1.76 and $1.77, relying heavily on the success of these operational engines.

CareTrust REIT, Inc.'s Strategic Advantages

The company's success comes down to a few core, repeatable advantages that allow it to consistently outpace peers in the healthcare REIT sector. The diversification into the U.K. and the SHOP model is a smart move that protects against U.S. reimbursement volatility.

• Financial Flexibility and Liquidity: With no significant debt maturities until 2028, the company can deploy capital into new acquisitions without near-term refinancing pressure. They have a large investment pipeline of approximately $600 million ready to go.
• Diversified Growth Platform: The 'three-engine model' (U.S. SNFs, U.K. Care Homes, SHOP) provides a hedge against regional or segment-specific downturns, positioning the company to capitalize on global aging demographics. This is a crucial strategic pivot.
• Disciplined Underwriting: A long-term track record of high-yield investments, with a 10-year average yield of 9%, shows a disciplined approach to capital deployment that generates superior returns.
• Internal Management Structure: Being internally managed aligns the interests of management more closely with shareholders, often resulting in lower operating costs and a more focused long-term strategy compared to externally managed peers.

For a deeper dive into the company's financial standing and risk profile, you should read Breaking Down CareTrust REIT, Inc. (CTRE) Financial Health: Key Insights for Investors.

CareTrust REIT, Inc. (CTRE) How It Makes Money

CareTrust REIT, Inc. primarily makes money by owning and leasing a large portfolio of healthcare properties-mostly skilled nursing facilities and seniors housing-to third-party operators under long-term, triple-net leases. This structure means the tenant pays for taxes, insurance, and maintenance, providing CareTrust REIT with a predictable, inflation-protected stream of rental income.

Plus, the company generates a smaller but growing income stream from providing financing, like mortgage and mezzanine loans, to its operators, acting as a strategic lender in addition to a landlord. It's a simple, high-margin real estate model.

CareTrust REIT's Revenue Breakdown

For the 2025 fiscal year, CareTrust REIT's total projected revenue is approximately $365.5 million, a significant jump driven by major acquisitions like the Care REIT plc portfolio. The vast majority of this revenue comes from contractual rent payments, with a smaller but stable portion from financial services to its tenants.

Business Economics

CareTrust REIT's core business relies on the triple-net lease (NNN) model. This is key because it shifts all property operating expenses-like property taxes, insurance, and maintenance-to the tenant, insulating the REIT's cash flow from rising costs. The company's leases also typically include annual rent escalators, which help to protect the real value of the income against inflation.

• Pricing Strategy: New investments in 2025, including a record $1.6 billion in year-to-date acquisitions, have a blended stabilized yield of approximately 8.8%, locking in strong returns.
• Three-Engine Model: The company is diversifying its revenue base beyond U.S. Skilled Nursing Facilities (SNFs), which still make up 51.2% of total rent/interest, into two new engines: U.K. Care Homes and a Seniors Housing Operating Portfolio (SHOP).
• Risk Mitigation: By focusing on a diverse operator base and moving into the SHOP model, where the REIT shares in the upside of the facility's operations, they are balancing the predictable NNN rent with the higher growth potential of operating real estate.

CareTrust REIT's Financial Performance

The company's financial health as of November 2025 shows a strong balance sheet and robust profitability metrics, which is defintely what you want to see. The updated 2025 guidance reflects a strong trajectory, even with the costs of integrating the new acquisitions.

• Funds From Operations (FFO): Full-year 2025 normalized FFO per diluted share is projected to be between $1.76 and $1.77.
• Net Income: Full-year 2025 net income per diluted share is projected to be approximately $1.41 to $1.42.
• Liquidity and Leverage: The balance sheet is exceptionally strong, with Net Debt to Annualized Normalized Run Rate EBITDA at a low 0.42x as of Q3 2025.
• Dividend Coverage: The quarterly dividend of $0.335 per share is well-covered, with a payout ratio of approximately 76% based on Q3 2025 normalized Funds Available for Distribution (FAD).

Here's the quick math: The $94.7 million in normalized FFO for Q3 2025 shows the cash-generating power is accelerating as the new, large-scale investments start contributing. For a deeper dive into the metrics, check out Breaking Down CareTrust REIT, Inc. (CTRE) Financial Health: Key Insights for Investors.

CareTrust REIT, Inc. (CTRE) Market Position & Future Outlook

CareTrust REIT, Inc. is strategically positioned as a high-growth, mid-cap healthcare real estate investment trust (REIT) that is aggressively diversifying its portfolio to capitalize on the aging demographics in both the U.S. and U.K. You should expect continued accretive acquisitions, as the company leverages its low-leverage balance sheet to drive its 2025 normalized Funds From Operations (FFO) per share guidance of $1.76 to $1.77.

Competitive Landscape

In the vast healthcare REIT sector, CareTrust REIT, Inc. (CTRE) is a focused player, specializing in skilled nursing and senior housing. To be fair, its market capitalization of $8.12 billion makes it significantly smaller than the industry giants, but this also allows for a more nimble, acquisition-focused strategy.

Opportunities & Challenges

The company's future trajectory hinges on successfully executing its 'three-engine model,' which is a smart way to mitigate risk by not putting all its capital into one asset class. That said, the regulatory environment for skilled nursing facilities (SNFs) is a constant headwind, and you need to watch tenant health closely.

Industry Position

CareTrust REIT, Inc. is carving out a strong position as a disciplined, low-leverage acquirer in a capital-intensive sector. Its Net Debt to Annualized Normalized Run Rate EBITDA of only 0.42x as of Q3 2025 is defintely a fortress-like balance sheet, especially when compared to many peers. This financial strength gives them a huge advantage in a high interest rate environment. The company's investment pace is a clear indicator of this strength, with a record year-to-date investment total of approximately $1.6 billion in 2025.

• Maintain a high concentration in Skilled Nursing Facilities (SNFs), which account for 51.2% of total rent/interest.
• Prioritize a continually replenished investment pipeline, currently sitting at approximately $600 million.
• Focus on diversification through the U.K. Care Homes segment, which was deemed a 'transformative' expansion.

To understand the foundation of this strategy, you should review the Mission Statement, Vision, & Core Values of CareTrust REIT, Inc. (CTRE). The focus remains on partnering with high-quality operators and securing long-term, triple-net leases (NNN), which shifts property-level operating risk to the tenant. This is a simple, effective model. Your next step should be to model how the projected $344 million to $345 million in 2025 cash rental revenues will translate into a sustainable dividend payout ratio.