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Nursing homes

CareTrust REIT Acquires 4-Facility Skilled Nursing Operations in Mid-Atlantic for $74.7m

Strategic Insights

— 1 min read

US-based CareTrust REIT, Inc. has expanded its portfolio of skilled nursing facilities by acquiring a portfolio of four facilities in the Mid-Atlantic region for an investment of approximately $74.7 million. The acquisition was funded using the company's cash on hand, which totals around $280 million. This move comes after the company raised $309.9 million in September 2024 under its new ATM programme and paid off its $200 million term loan.

Key Takeaways:

  • CareTrust REIT has acquired a portfolio of four skilled nursing facilities in the Mid-Atlantic region for approximately $74.7 million, marking a significant expansion of its portfolio in the region.
  • The acquisition was funded using cash on hand, with the company having approximately $280 million available for future investments.
  • The acquisition is part of CareTrust's strategy to grow its portfolio of skilled nursing and seniors housing properties, with a focus on the Mid-Atlantic region.
  • The company entered into a triple-net master lease with a new operator relationship for the facilities, while one of the facilities was structured as a mortgage loan extended by CareTrust to the operator.
  • This acquisition highlights CareTrust's ability to finance and execute large-scale investments in the healthcare real estate sector.

Statistics:

  • CareTrust REIT has acquired 4 skilled nursing facilities in the Mid-Atlantic region.
  • The total investment amount for the acquisition is approximately $74.7 million.
  • CareTrust REIT has approximately $280 million of cash on hand.
  • The company raised $309.9 million under its new ATM programme in September 2024.
  • The company paid off its $200 million term loan in September 2024.
  • CareTrust REIT has 171.5 million outstanding shares.

Sources:

  • M2 EQUITYBITES-October 9, 2024
  • http://www.m2.co.uk

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