CareTrust REIT (CTRE) has disclosed a new risk, in the Debt & Financing category.
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CareTrust REIT faces significant business risks due to the potential financial deterioration or bankruptcy of its tenants or borrowers, which could materially impact its income and operations. The company derives a substantial portion of its revenue from rental payments, and any tenant’s business downturn could lead to missed rent payments or lease terminations. This risk is exacerbated when multiple properties are leased to a single tenant, such as Ensign, posing a threat to the company’s financial health and its ability to make distributions to stockholders. Additionally, the insolvency of loan borrowers could result in loss of principal and interest, further straining CareTrust REIT’s financial position.
The average CTRE stock price target is $31.00, implying 16.89% upside potential.
To learn more about CareTrust REIT’s risk factors, click here.