After Inking First Shop Deal In 2025, Caretrust Reit Looks For More Growth Opportunities 

CareTrust REIT Inc. (NYSE: CTRE) is kicking off 2026 with plans to further grow its senior housing operating portfolio (SHOP).

During the fourth quarter of 2026, the Dana Point, California-based REIT closed on its first SHOP deal as part of its $1.8 billion total investments in 2025 with 17.3% year-over-year normalized funds from operation (FFO), according to President and CEO David Sedgwick.

“As we hit the ground running in 2026 we do it with a CareTrust team that is deeper and more capable than any time in our history,” Sedgwick told investors during a Feb. 13 earnings call.

CareTrust has two additional “growth engines,” according to Sedgwick: U.K. care homes and SHOP. Its SHOP investments in the fourth quarter involve three communities in Texas, totaling 270 assisted living in memory care units, which Sinceri Senior Living is managing. Other senior housing investments included $27 million to acquire two senior housing communities with a triple net lease, according to Chief Investment Officer James Callister.

Moving forward, CareTrust has a pipeline of $500 million, half of which is dedicated to U.K. care homes, one-third for skilled nursing investments, a SHOP deal and the remaining set aside for loans and senior housing triple net.

“We continue to see consistent deal flow across all sectors encompassing triple net and SHOP structures, alongside a steady and meaningful increase in overall transaction activity, particularly within seniors housing and the care home market,” Callister said.

Of the investments and acquisitions it is seeking, CareTrust sees the most competition for deals in the SHOP space, where there is the most capital pursuing deals. Despite this, there are still deals that are attractive to the company, Callister added, and he believes CareTrust can be competitive.

CareTrust is expanding its team to incorporate senior living into its portfolio through hiring data analysts that are “prioritized on building out our SHOP capabilities,” according to Callister, though they will likely have an impact across the organization.

With a background in the skilled nursing sector, Sedgwick believes it benefits the company as it moves forward in the senior housing operating sphere.

“We do think that our operating DNA and deep experience is helpful. It certainly informs how we underwrite. It certainly informs how we vet operators and how we asset manage,” he said. “There’s a lot that we carry over from betting skilled operators with choosing seniors as well.”

CareTrust’s total portfolio consists of 366 skilled nursing properties, 208 senior housing properties and care homes with triple net and now three in the SHOP.

Analysts Juan Sanabria and John Kim with BMO Capital Markets wrote they “look for color on the pipeline’s breadth across geographies and asset type, and competition/pricing,” and see the REIT in-line with its pro forma investment expectations.

CareTrust’s stock is priced at $40.01, down 0.3% from the previous close.

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