CareTrust REIT(CTRE) Drops 1.68% After UK Acquisition

Caretrust Reit(CTRE) has experienced a decline of 1.68% in its stock price today.

Over the past five years, the strategy of buying CTRE shares after they reached a recent None and holding for one week yielded a 38.81% return, slightly underperforming the benchmark's 41.11% return. The strategy's Sharpe ratio was 0.79, with a maximum drawdown of -16.09% and a volatility of 19.18%, indicating a moderate risk profile and a focus on capital appreciation.

CareTrust REIT's recent acquisition of Care REIT plc has been the primary driver behind the fluctuations in its stock price. The acquisition, finalized on May 12, 2025, signifies CareTrust's entry into the UK market, substantially expanding its portfolio with the addition of 132 care homes and two healthcare facilities. This strategic move is anticipated to diversify CareTrust's portfolio and bolster its growth prospects. The acquisition is valued at approximately $840.5 million and is expected to increase annualized rental revenue by about $68.6 million, with long-term, triple-net leases providing a stable income stream. However, the acquisition also involves assuming $245.1 million in net debt, which poses integration risks and potential currency exchange rate fluctuations. Overall, this acquisition positions CareTrust as a significant player in the UK healthcare real estate market while maintaining its US investments.