CareTrust REIT, a real estate investment trust focused on owning and financing healthcare properties, has acquired six skilled nursing facilities totaling 532 licensed beds for approximately $142 million, including transaction costs.
The deal was an off-market transaction and was funded entirely with cash on hand. The portfolio is being leased to a new tenant under a long-term triple net lease with annual inflation-based rent escalators and multiple renewal options. CareTrust (NYSE: CTRE) expects the investment to deliver a stabilized yield of nine percent.
The newly acquired facilities are located across the Mid-Atlantic region, though specific states were not disclosed. The tenant, whose name was not made public, is a first-time partner of CareTrust but is described as having a strong operating and credit profile. The acquisition is part of CareTrust’s ongoing strategy to build relationships with reputable operators and strengthen its skilled nursing portfolio.