CareTrust REIT (CTRE) concentration risks

The company's concentration profile combines a moderate geographic tilt with a small tenant dependency that together define the most material disclosed risks. On the geographic side, the filing identifies a concentration of properties in California, the U.K., Texas, and Tennessee — a moderately sized structural exposure reflecting the geographic distribution of the healthcare real estate portfolio. This is structural in character; the concentration reflects where the company has invested and where its tenant operators have their own facilities, rather than a specific counterparty decision that could quickly shift. At the tenant level, properties leased to Ensign and held for investment represented $92.1 million, or 23%, of total annualized contractual rental income. This is a small-share exposure by disclosed size but still a named, identifiable counterparty dependency — Ensign's financial health, lease renewal behavior, and operational performance at the underlying facilities directly affect that income stream. A lease restructuring, operator distress, or facility transition at Ensign-operated properties would affect this portion of annualized rent. Together, the two disclosures present a profile where geographic concentration is the more structurally embedded exposure and Ensign represents the largest named single-tenant dependency but at a small disclosed share. Neither exposure, individually, is expected to dominate the investment outcome, but monitoring Ensign's operational and financial health alongside regional regulatory conditions in the named states remains relevant for assessing rental income stability.

For the engine’s reasoning on CTRE’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.

Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.