CareTrust REIT Announces Approximately $628 Million of Investments

DANA POINT, Calif.--(BUSINESS WIRE)--CareTrust REIT, Inc. (NYSE:CTRE) (“CareTrust” or the “Company”) announced today the recent closing of investments totaling approximately $628 million.

In mid-April, the Company closed on a series of related off market transactions with a quality skilled nursing operator based in California in what is a new relationship for CareTrust. As part of the transaction, CareTrust acquired 15 skilled nursing facilities for approximately $380 million (inclusive of transaction costs) comprising approximately 1,700 beds located across California. The portfolio is leased back to affiliates of the seller under a long-term triple-net lease with annual rent escalators and purchase options in the seller’s favor beginning in the ninth year of the term. Simultaneous with the sale-leaseback, the Company also originated two loans to affiliates of the seller, secured by portfolios of skilled nursing facilities located in California and Washington. The first loan of $55 million has a five-year term that is fully amortized at a rate of 8.7%, while the second loan of $108 million is interest only with a rate of 9.5% and is expected to be repaid within the year.

Also in mid-April, the Company acquired four care homes in the UK for approximately £42 million. The portfolio comprises 202 beds and specializes in high acuity mental health and specialist care services located throughout the midlands and the north of England. CareTrust will acquire a fifth home for approximately £9 million as part of a second tranche of the transaction following regulatory and other approvals. The properties are triple-net leased to a new CareTrust tenant under long-term leases with annual inflation-based rent escalators.

The Company also acquired one Wyoming skilled nursing facility with 124 beds for approximately $20 million, in a transaction closed in mid-April. The property is triple-net leased to an existing operator of the Company with a strong operating track record, under a long-term lease with annual inflation-based rent escalators and multiple renewal options. Separately, the Company amended and restated an existing two property loan by originating an additional $7.5 million in proceeds for the borrower that is secured by a third property consisting of 60 senior housing units and 20 licensed skilled nursing beds located in Oregon. The borrower master leases the three facilities to an experienced operator and existing CareTrust tenant.

These investments carry a blended stabilized yield of 8.8% and were funded using a combination of proceeds received from settled equity forward contracts and a draw from the Company’s revolving credit facility.

“This group of transactions reflects the disciplined, relationship-driven approach that continues to underpin our exciting growth,” said James Callister, CareTrust’s Chief Investment Officer. “The centerpiece is a high-quality California skilled nursing portfolio acquired in sale-leaseback format with a seasoned operating team. The creative structuring, together with meeting the seller’s expedited timing demands, are testament to the team’s work ethic and the Company’s commitment to collaboratively solving the parties’ transaction goals. The additional investments, spanning our skilled nursing and UK care home growth engines, demonstrate the breadth and quality of the opportunity set we continue to see across every corner of our business.” Joe Callan, Senior Vice President of Investments, added, “The brisk pace and variety of the deal flow we’re seeing right now is a direct product of the deep relationships our team has cultivated over many years. From large off-market sale-leasebacks to targeted loan investments that strengthen existing partnerships to bread-and-butter type single asset acquisitions, our platform is sourcing high-quality, actionable transactions across every one of our growth engines.”

Inclusive of these transactions, the Company’s 2026 year-to-date investment total stands at approximately $990 million across more than a dozen transactions at a blended stabilized yield of approximately 8.8%.

Dave Sedgwick, CareTrust’s Chief Executive Officer, commented, “With nearly $1 billion already closed this year we are well on our way to another exceptional year. After these recent deals, our investment pipeline stands at approximately $450 million of near-term, actionable opportunities, a figure that excludes larger portfolio transactions we continue to evaluate. Powered by talented teammates throughout CareTrust, a massive opportunity set across skilled nursing, UK care homes and our budding senior housing operating portfolio, and the balance sheet to match the growth, our investment flywheel keeps turning, and we remain as disciplined and focused as ever on compounding long-term value for our shareholders.”

Separately, CareTrust also announced today that Moody’s Ratings assigned the Company and its senior unsecured notes each an investment grade rating of Baa3, with a stable outlook, “reflecting CareTrust’s demonstrated commitment to maintaining a conservative financial policy” and “improved business mix diversification and sound operating performance.” A copy of the announcement can be found on Moody’s website here.

About CareTrust^TM 

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, senior housing and other healthcare-related properties. With a portfolio of long-term net-leased properties spanning the United States and United Kingdom, and a growing portfolio of quality operators leasing them, CareTrust is pursuing both external and organic growth opportunities across the US and internationally. More information about CareTrust REIT is available at www.caretrustreit.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical statements of fact and statements regarding the Company’s intent, belief or expectations, including, but not limited to, statements regarding the following: future financial and financing plans; strategies related to the Company’s business and its portfolio, including acquisition and investment opportunities; growth prospects; operating and financial performance; stabilized yields; pipeline figures; and the performance of the Company’s tenants, operators and borrowers. The Company’s forward-looking statements are based on management’s current expectations and beliefs, and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. The Company expressly disclaims any obligation to update or revise any information in this press release, including forward-looking statements, whether to reflect any change in the Company’s expectations, any change in events, conditions or circumstances, or otherwise.