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  • Writer's pictureRealFacts Editorial Team

CareTrust REIT Acquires Skilled Nursing Portfolio for $80.9 Million

CareTrust REIT

CareTrust REIT, Inc. (NYSE:CTRE) has announced the acquisition of a portfolio comprising five skilled nursing facilities with a total of 498 licensed beds, located in the Southeastern United States as reported by BusinessWire. The total investment, including transaction costs, amounts to approximately $80.9 million.

James Callister, Chief Investment Officer at CareTrust, expressed excitement about the acquisition, stating, "We are thrilled to announce the acquisition of these five facilities in a region we've targeted for future growth."

In connection with this acquisition, CareTrust has entered into a new triple-net master lease with affiliates of YAD Healthcare, marking a new operator relationship. YAD Healthcare is an experienced skilled nursing operator with facilities in multiple states across the Mid-Atlantic and Southeastern regions. The master lease has an initial term of 10 years, with two 5-year extension options, and includes a year one contractual lease yield of 9.0%, inclusive of transaction costs, with annual CPI-based escalators. This investment was funded using cash on hand.

Eric Gillis, Senior Vice President of Investments at CareTrust, added, “We are excited to begin a new relationship with YAD Healthcare, who have shown a strong commitment to caring for their employees and patients in this region. We hope to continue matching them with growth opportunities.”

Hershy Alter, Chief Executive Officer of YAD Healthcare, commented, “CareTrust has been an ideal transaction partner, and we are grateful for the opportunity to extend our commitment to high-quality care and innovation to more facilities within our existing footprint.”

Additionally, CareTrust reported that this acquisition is part of a larger transaction, where the company provided approximately $99 million in portfolio acquisition financing to a regional owner/operator of skilled nursing facilities.

With these investments, CareTrust’s year-to-date investments now total approximately $386 million. The company also announced a robust investment pipeline with around $460 million in near-term actionable opportunities. Furthermore, CareTrust has issued 2.5 million shares under its ATM program, generating gross proceeds of $62.3 million and bringing the total outstanding share count to 144.6 million shares. The company's current cash on hand is approximately $230 million.


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