Mizuho’s Healthcare REIT Recommendations
Mizuho has identified Welltower Inc. (NYSE:WELL) and CareTrust REIT, Inc. (NYSE:CTRE) as its leading picks in the healthcare real‑estate investment trust (REIT) space, citing above‑average growth prospects and low leverage profiles. The firm notes that valuation multiples have risen across the sector, yet both companies offer attractive price‑to‑earnings‑to‑growth (PEG) ratios and strong balance sheets.
Welltower Highlights
Welltower reported record second‑quarter 2026 revenue of $3.54 billion, exceeding analyst expectations, and subsequently raised its full‑year 2026 outlook. Following the earnings release, both KeyBanc Capital Markets and Freedom Broker increased their price targets for the stock. The company benefits from exposure to skilled‑nursing‑facility operators that are navigating evolving regulatory requirements. Recent industry activity includes PACS’ acquisition of 32 skilled‑nursing facilities in Florida owned by OHI, which will make PACS OHI’s second‑largest tenant with more than 80 properties.
Regulatory Development
The Centers for Medicare & Medicaid Services (CMS) will implement new minimum‑data‑set reporting requirements for all residents under Medicare Advantage, Medicaid, private‑pay, or other managed‑care arrangements beginning 1 October 2029. The expanded reporting is expected to increase staffing needs at facilities, especially those with high Medicaid populations.
CareTrust REIT Highlights
CareTrust REIT also received Mizuho’s top‑pick designation. The REIT holds a 5 % rental‑income exposure to Links Healthcare, which operates over 32 facilities in California and Tennessee; CareTrust owned 13 Links properties as of Q2 2026. Links Healthcare is in the early stages of acquiring First Atlantic Healthcare’s portfolio of 20 nursing homes and assisted‑living facilities in Maine, comprising more than 1,300 beds, with the transaction expected to close before year‑end. CareTrust’s second‑quarter results showed adjusted earnings per share beating estimates, while revenue fell short of expectations. Despite the mixed results, the REIT lifted its 2026 outlook. RBC Capital Markets downgraded the stock’s rating to “Sector Perform.”
Analyst Actions
Following the earnings releases, KeyBanc and Freedom Broker raised their price targets on Welltower, while RBC Capital Markets downgraded CareTrust REIT.