CareTrust REIT’s credit rating has been upgraded to investment grade, with Moody’s assigning a Baa3 issuer rating and a stable outlook, a shift from the previous positive outlook. The upgrade places the REIT firmly within the investment‑grade band, a milestone that can lower borrowing costs and broaden access to capital markets.
Moody’s upgrade reflects the company’s strong balance sheet and disciplined capital management. In Q4 2025 CareTrust reported a Net Debt‑to‑Annualized Normalized Run‑Rate EBITDA ratio of 0.7x, well below its target range of 4.0x to 5.0x. The low leverage, combined with a robust cash position and a $1.2 billion capacity remaining on its unsecured revolving credit facility, underpins the rating decision.
The rating upgrade is expected to support CareTrust’s three‑engine growth strategy—ownership, acquisition, and development/lease of skilled nursing, senior housing, and UK care‑home properties. The REIT has deployed $628 million in new investments in mid‑April 2026, bringing year‑to‑date capital deployment to $990 million at a blended stabilized yield of 8.8%. The lower cost of capital will enable the company to accelerate acquisitions and development projects across its portfolio.
CEO Dave Sedgwick said the upgrade “validates the discipline we’ve maintained on our balance sheet even as we deploy over $4 billion of capital since the beginning of 2024 across attractive skilled nursing, seniors housing, and UK care‑home opportunities.” CFO Derek Bunker added that the upgrade “expands our optionality as we continue funding our growth, improving our cost of capital while broadening our access to high‑grade debt markets.”
The upgrade comes amid a supportive market environment. Analysts have maintained a consensus “Buy” stance, and CareTrust recently raised its quarterly dividend by 16% to $0.39 per share, a 4.2% yield. The company’s stock has shown solid performance, and the rating upgrade has reinforced investor confidence in its financial discipline and growth prospects.
Overall, Moody’s upgrade confirms CareTrust’s strong financial footing and positions the REIT to pursue its expansion plans with greater flexibility and lower financing costs, reinforcing its trajectory toward sustained growth in the senior‑care real‑estate sector.
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