CareTrust REIT Crushes Q3 2026 with Record Investments and Blazing Growth
CareTrust REIT, a leading healthcare real estate investment trust (REIT), has delivered yet another impressive performance in the third quarter of 2026. With a record $2.9 billion invested across all three growth engines, the company has set itself up for another strong year of growth in 2027.
The key highlights from Q3 2026 include a 20% increase in normalized FFO (Funds From Operations) per share compared to last year. This remarkable growth is even more impressive when considering that healthcare REITs as a whole have only grown their asset base by 27% since Q4 2022, while CareTrust's asset base has exploded by an astonishing 375%.
CareTrust's ability to grow at such a rapid pace can be attributed in part to its strategic approach to investments. The company has maintained extremely low leverage and stockpiles of dry powder, which has allowed it to navigate the current market with confidence. As Dave Sedgwick, President and CEO, noted, 'In times of rising rates and uncertainty, sellers prioritize the buyer who will close, and that is us.'
One of the most significant developments in Q3 2026 was the announcement of a strategic relationship with LNT (Lawrence Tomlinson). This partnership combines two growth engines: U.K. care homes and SHOP (Single-Occupancy Rooms), making CareTrust one of the few developers in the U.K. capable of delivering high-quality, affordable private pay, purpose-built care homes at scale.
The partnership is expected to deliver double-digit returns with a strong runway of growth, making it a truly differentiated SHOP growth engine. In addition to LNT, the company's core growth engines continue to compound, with $740 million invested in the third quarter alone at a blended stabilized yield of 8.3%.
CareTrust's lease coverage has also set another record this quarter, with skilled nursing EBITDA lease coverage reaching 2.62x and EBITDARM (Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent) across the stabilized portfolio hitting 3.26x.
Overall, CareTrust REIT's performance in Q3 2026 is a testament to its commitment to delivering strong growth and returns for shareholders. With a robust pipeline of accretive investment opportunities ahead and a solid balance sheet, the company is well-positioned to continue its remarkable growth trajectory.
