CareTrust REIT: Solid Operational Performance, But I Don't Like The Capital Structure
CTRECareTrust REIT(CTRE) Seeking Alpha·2024-06-21 23:26
FG TradeIntroduction CareTrust REIT (NYSE:CTRE) has significantly outperformed the Vanguard Real Estate Index Fund ETF (VNQ) so far in 2024, with the shares delivering a low double-digit return against a ~5% drop for the benchmark ETF:  CTRE vs VNQ in 2024 (Seeking Alpha)This has resulted in the stock trading at a market-implied cap rate of about 6.1% which coupled with low leverage of just 9% of enterprise value would not provide outsized shareholder returns if interest rates drop as expected over the  ...