Dave Sedgwick, president and CEO of CareTrust REIT (NYSE: CTRE), sat down for a video interview at Nareit’s REITweek: 2026 Investor Conference in New York, June 1-4.
CareTrust REIT is benefiting from some of the strongest operating conditions the skilled nursing sector has experienced in decades, he said, adding that demand for skilled nursing is accelerating as the long-anticipated aging of the baby boomer generation begins to materialize. After spending 25 years in the industry, including as a nursing home administrator, Sedgwick said operators are reporting record occupancy levels as the "silver tsunami" finally arrives.
The sector has also recovered from the challenges of the pandemic. Sedgwick noted that occupancy has rebounded, Medicaid reimbursement has improved across states regardless of political leadership, and operator health has strengthened significantly. As a result, lease coverage across CareTrust's portfolio is at its strongest level to date, leaving operators well positioned to navigate future regulatory changes while pursuing growth opportunities.
CareTrust has been an active acquirer, completing approximately $4.5 billion in investments over the past two and a half years. In addition to its core skilled nursing portfolio, the company has expanded into SHOP (senior housing operating portfolio) and U.K. care homes, giving it what Sedgwick called "three engines of growth."
Despite the broader investment platform, he said the company's strategy remains consistent: "It's always operator first, and that's how we continue to underwrite today."
Looking ahead, Sedgwick believes investors may still underestimate the strength of the sector's long-term fundamentals. He pointed to favorable demographics, noting that new supply is unlikely to keep pace with demand over the next four to five years. He also highlighted the bipartisan political support for skilled nursing and senior care, which provides greater stability for the industry despite ongoing policy debates in Washington.