CareTrust REIT Price Target Raised to $44 After 2025 Net Income Jumps 96%
RBC Capital raised CareTrust REIT’s price target to $44 from $41 and kept an Outperform rating while cutting its 2026 FFO per share outlook by $0.08 to $2.01 due to investment timing and higher G&A costs. In 2025, net income jumped 96% to $320.5M, normalized FFO grew 17%.
1. Q4 and Full-Year 2025 Results
CareTrust REIT reported net income for 2025 of $320.5 million, a 96% increase year-over-year, equating to $1.57 per diluted share. Normalized FFO rose 17% to $359.7 million ($1.76 per share) and normalized FAD grew 14% to $360.0 million, while fourth-quarter FFO and FAD reached $104.1 million ($0.47 per share) and $103.0 million ($0.46 per share), respectively, with quarterly net income of $111.3 million ($0.50 per share).
2. Investment Activity and Yield
The company completed $561.5 million in investment activity at a combined stabilized yield of 8.8%, maintaining full contractual rent collection across its senior housing and healthcare property portfolio. The board approved a quarterly dividend of $0.335 per share, representing approximately 73% of normalized FAD, underscoring its commitment to shareholder distributions.
3. Analyst Outlook and 2026 Forecast Revision
RBC Capital raised its price target on CareTrust REIT to $44 from $41 and maintained an Outperform rating, while reducing the full-year 2026 FFO per share outlook by $0.08 to $2.01 to reflect delayed investment deployment and elevated general and administrative expenses.