CareTrust Execs on Larry H. Miller Operating Partnership, Nursing Home Sector Upswing, ‘Beefy Coverage’
•February 13, 2026
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Why It Matters
The results underscore CareTrust’s ability to scale in a stable nursing‑home market, signaling strong earnings potential for investors and reinforcing confidence in REIT‑based senior‑care assets.
Key Takeaways
- •2025 investment activity five times historic level
- •Q4 normalized FFO 47¢ per share, meets estimates
- •Occupancy averages 80%, room for upside
- •$500M pipeline, one-third skilled nursing
- •New partnership with Larry H. Miller adds six facilities
Pulse Analysis
The senior‑care real estate sector has benefited from demographic tailwinds and a gradual improvement in reimbursement rates, creating a more favorable environment for REITs focused on skilled‑nursing facilities. Investors are increasingly attracted to the sector’s defensive characteristics, as aging populations drive steady demand for long‑term care. This macro backdrop has encouraged capital inflows, allowing operators to pursue aggressive acquisition strategies while maintaining disciplined balance sheets.
CareTrust REIT leveraged this climate to execute its most aggressive acquisition year, deploying over $562 million in Q4 alone and closing an additional $215 million post‑year. The partnership with Larry H. Miller Senior Health expands its footprint in the Mid‑Atlantic, adding six facilities with strong rent coverage. By keeping occupancy near 80% and improving reimbursement conditions, the REIT boosted normalized FFO per share 17.3% to $1.76, demonstrating that operational strength and “beefy coverage” can offset typical industry headwinds.
For stakeholders, CareTrust’s trajectory signals a compelling growth narrative. The firm’s low leverage, access to capital, and a pipeline where a third is earmarked for skilled‑nursing investments suggest sustained expansion potential. As the sector continues to stabilize, REITs like CareTrust are positioned to capture upside from both occupancy gains and favorable lease terms, making them attractive candidates for portfolios seeking income stability and capital appreciation.
CareTrust Execs on Larry H. Miller Operating Partnership, Nursing Home Sector Upswing, ‘Beefy Coverage’
CareTrust REIT (NYSE: CTRE) reported strong momentum in the nursing home sector throughout 2025, highlighting stable operations, active SNF acquisitions and continued investment in the sector, including an operating partnership with Larry H. Miller Senior Health.
“Today, the skilled nursing operating environment is stable and largely supportive across most states,” President and CEO Dave Sedgwick said during the company’s quarterly call to discuss fourth quarter and year-end results. “Simply put, 2025 was a transformational year for CareTrust.”
CareTrust’s operators continue to set the standard for portfolio lease coverage, he noted.
“We continue to have access to capital and a fortressed balance sheet, and we again have high hopes for a substantial year of external growth,” Sedgwick said.
CareTrust’s operators are reporting an improved reimbursement climate and a much better staffing environment, he said. Portfolio occupancy for the San Clemente, California-based real estate investment trust (REIT) averaged around 80%, leaving room for further upside.
“There’s still quite a bit of upside for our operators as that number increases to offset the inevitable headwinds,” Sedgwick said. “There are always going to be headwinds for skilled nursing every year. There’s always something.”
For CareTrust, beating the negatives comes down to operator strength, Sedgwick said.
“With great operators and beefy coverage, you can, at least we can, we believe, manage through any of that,” he said. “Our operators continue to set the standard for portfolio lease coverage.”
Sedgwick said 2025 was the most active investment year in CareTrust’s history by a factor of five.
During the fourth quarter, CareTrust reported normalized funds from operations (FFO) of 47 cents per share, in line with Wall Street estimates.
On Friday, CareTrust shares closed slightly lower at $40.01, down 0.08, or 0.20%.
A third of $500M pipeline is SNF-based
Chief Investment Officer James Callister detailed fourth-quarter investments of approximately $562 million, including the acquisition of 14 skilled nursing facilities across three transactions. The company also originated about $84 million in loans, with the majority towards the skilled nursing sector.
Since year-end, CareTrust closed another $215 million in investments, including the acquisition of six skilled nursing facilities in the Mid-Atlantic in an operating partnership with Larry H. Miller Senior Health, a new relationship for CareTrust, in which CareTrust has “strong going-in rent coverage,” Callister said.
The current $500 million pipeline consists of roughly one-third U.S. skilled nursing investments.
Financially, normalized FFO per share increased 17.3% year over year to $1.76 in 2025. The company raised capital to fund acquisitions and maintained low leverage, positioning it for further SNF growth in 2026.
The post CareTrust Execs on Larry H. Miller Operating Partnership, Nursing Home Sector Upswing, ‘Beefy Coverage’ appeared first on Skilled Nursing News.
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