We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CareTrust (CTRE) Rewards Shareholders With Dividend Hike
Read MoreHide Full Article
CareTrust REIT, Inc. (CTRE - Free Report) announced a 3.6% increase in its quarterly common stock cash dividend to 29 cents per share from 28 cents paid out earlier. The increased dividend will be paid out on Apr 15 to shareholders of record as of Mar 28, 2024.
Based on the hiked rate, the annualized dividend comes at $1.16 per share compared with the prior rate of $1.12 per share. At this new rate, the dividend yield is 4.83%, based on the company’s share price of $23.97 on Mar 18, 2024.
The latest hike reflects CTRE’s ability to generate decent cash flow through its operating platform and high-quality portfolio.
Solid dividend payouts are the biggest enticements for real estate investment trust (REIT) investors and CareTrust is committed to boosting its shareholder wealth. Prior to this hike, in March 2023, the company’s board hiked its quarterly dividend by 1.8% to 28 cents per share. CareTrust has increased its dividend five times in the last five years and has a five-year annualized dividend growth rate of 5.26%. Check CareTrust’s dividend history here.
Dave Sedgwick, CEO of CareTrust, stated, “This increase reflects our balanced approach to maintaining our pattern of steadily increasing the dividend while also retaining the least expensive form of capital for future investments.”
This healthcare REIT engages in the ownership, acquisition, financing, development and leasing of skilled nursing, seniors housing and other healthcare-related properties.
As of Dec 31, 2023, the company owned, directly or through joint ventures, and leased to independent operators, 226 skilled nursing facilities, multi-service campuses, assisted living facilities and independent living facilities consisting of 23,928 operational beds and units located in 28 states.
CareTrust pursues an impressive inorganic growth strategy and its solid financial position serves as a cushion for it to pursue investments related to its growth efforts. Management keeps an eye on detecting opportunistic acquisitions and investments.
Recently, CareTrust acquired two skilled nursing facilities in Houston, Texas and one nursing facility in Columbia, MO. It shelled out $55.6 million, inclusive of transaction costs, for this portfolio acquisition. CareTrust will add the portfolio to its existing master lease with affiliates of PACS Group, Inc. With this transaction, there will be more than 1,200 beds/units under the CareTurst/PACS partnership.
CTRE is making efforts to bolster its financial flexibility. This enabled the company to exit the fourth quarter of 2023 with $294.4 million of cash and cash equivalents. It has no borrowings outstanding on its $600 million revolving credit line, with no scheduled debt maturities prior to 2026. As of Dec 31, 2023, it had net debt-to-annualized normalized run rate EBITDA of 1.4x, below the company's target leverage range of 4.0x to 5.0x, which is impressive. With a strong financial footing and ample flexibility, CTRE remains well-positioned to tide over any challenges and bank on growth opportunities.
CareTrust’s return on equity (“ROE”) is 5.14%, which is higher than the industry’s ROE of 2.99%. Also, its debt/equity ratio of 0.42 compares favorably with the industry average of 0.89, thereby reflecting its relatively strong financial health.
Moreover, with a robust financial position compared with the industry, we expect CTRE’s latest dividend payout to be sustainable over the long run.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 5.8% against the industry's decline of 3.9%.
The Zacks Consensus Estimate for HST’s 2024 funds from operation (FFO) per share has moved 2.6% northward over the past week to $1.97.
The Zacks Consensus Estimate for LAMR’s current-year FFO per share has been raised marginally over the past month to $7.74.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CareTrust (CTRE) Rewards Shareholders With Dividend Hike
CareTrust REIT, Inc. (CTRE - Free Report) announced a 3.6% increase in its quarterly common stock cash dividend to 29 cents per share from 28 cents paid out earlier. The increased dividend will be paid out on Apr 15 to shareholders of record as of Mar 28, 2024.
Based on the hiked rate, the annualized dividend comes at $1.16 per share compared with the prior rate of $1.12 per share. At this new rate, the dividend yield is 4.83%, based on the company’s share price of $23.97 on Mar 18, 2024.
The latest hike reflects CTRE’s ability to generate decent cash flow through its operating platform and high-quality portfolio.
Solid dividend payouts are the biggest enticements for real estate investment trust (REIT) investors and CareTrust is committed to boosting its shareholder wealth. Prior to this hike, in March 2023, the company’s board hiked its quarterly dividend by 1.8% to 28 cents per share. CareTrust has increased its dividend five times in the last five years and has a five-year annualized dividend growth rate of 5.26%. Check CareTrust’s dividend history here.
Dave Sedgwick, CEO of CareTrust, stated, “This increase reflects our balanced approach to maintaining our pattern of steadily increasing the dividend while also retaining the least expensive form of capital for future investments.”
This healthcare REIT engages in the ownership, acquisition, financing, development and leasing of skilled nursing, seniors housing and other healthcare-related properties.
As of Dec 31, 2023, the company owned, directly or through joint ventures, and leased to independent operators, 226 skilled nursing facilities, multi-service campuses, assisted living facilities and independent living facilities consisting of 23,928 operational beds and units located in 28 states.
CareTrust pursues an impressive inorganic growth strategy and its solid financial position serves as a cushion for it to pursue investments related to its growth efforts. Management keeps an eye on detecting opportunistic acquisitions and investments.
Recently, CareTrust acquired two skilled nursing facilities in Houston, Texas and one nursing facility in Columbia, MO. It shelled out $55.6 million, inclusive of transaction costs, for this portfolio acquisition. CareTrust will add the portfolio to its existing master lease with affiliates of PACS Group, Inc. With this transaction, there will be more than 1,200 beds/units under the CareTurst/PACS partnership.
CTRE is making efforts to bolster its financial flexibility. This enabled the company to exit the fourth quarter of 2023 with $294.4 million of cash and cash equivalents. It has no borrowings outstanding on its $600 million revolving credit line, with no scheduled debt maturities prior to 2026. As of Dec 31, 2023, it had net debt-to-annualized normalized run rate EBITDA of 1.4x, below the company's target leverage range of 4.0x to 5.0x, which is impressive. With a strong financial footing and ample flexibility, CTRE remains well-positioned to tide over any challenges and bank on growth opportunities.
CareTrust’s return on equity (“ROE”) is 5.14%, which is higher than the industry’s ROE of 2.99%. Also, its debt/equity ratio of 0.42 compares favorably with the industry average of 0.89, thereby reflecting its relatively strong financial health.
Moreover, with a robust financial position compared with the industry, we expect CTRE’s latest dividend payout to be sustainable over the long run.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 5.8% against the industry's decline of 3.9%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Host Hotels & Resorts (HST - Free Report) and Lamar Advertising (LAMR - Free Report) , each carrying a Zacks Rank #2 (Buy) at presnt. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for HST’s 2024 funds from operation (FFO) per share has moved 2.6% northward over the past week to $1.97.
The Zacks Consensus Estimate for LAMR’s current-year FFO per share has been raised marginally over the past month to $7.74.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.