CareTrust REIT Acquires Two Skilled Nursing Facilities with $62.1 Million Investment

CareTrust REIT, Inc. announced the acquisition of two skilled nursing facilities in separate transactions, totaling $62.1 million in investment. The company acquired a 125-bed skilled nursing facility on the East Coast for $37.7 million and a 134-bed skilled nursing facility on the West Coast for $24.5 million. The facilities will generate initial annual base rent of $3.4 million and $868,000, respectively.

Key Takeaways:

• CareTrust REIT acquired two skilled nursing facilities, a 125-bed facility on the East Coast and a 134-bed facility on the West Coast, in separate transactions totaling $62.1 million.
• The East Coast facility was acquired for $37.7 million, generating initial annual base rent of $3.4 million, and the West Coast facility was acquired for $24.5 million, generating initial annual base rent of $868,000.
• The company has a lease in place with the West Coast facility that expires in mid-2026, and the stabilized yield on its investment is projected to be reset to approximately 10% by no later than 2026.
• CareTrust REIT launched a new $750 million ATM program under its shelf registration statement on Form S-3 filed with the SEC.
• The company has a replenished investment pipeline of approximately $230 million of near-term, actionable real estate acquisition opportunities.
• CareTrust REIT is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development, and leasing of skilled nursing, seniors housing, and other healthcare-related properties.

Statistics:

• Total investment: $62.1 million
• East Coast facility investment: $37.7 million
• West Coast facility investment: $24.5 million
• Initial annual base rent (East Coast): $3.4 million
• Initial annual base rent (West Coast): $868,000
• Stabilized yield on investment: projected to be reset to approximately 10% by no later than 2026
• Investment pipeline: approximately $230 million of near-term, actionable real estate acquisition opportunities
• Outstanding share count: 161.3 million shares
• Cash on hand: approximately $221 million

Sources:

• BusinessWire.com - "CareTrust REIT to Present at the 2024 CRE.UIAL Summer Conference" (August 24, 2024)
• NYSE: CTRE - CareTrust REIT, Inc. (NYSE:CTRE)
• Company press release - "CareTrust REIT Announces Two New Investments" (August 29, 2024)
• SEC Form S-3 - CareTrust REIT, Inc. (August 2024)
• CareTrust REIT website - "About Us" (www.caretrustreit.com)