CareTrust REIT, Inc. (CTRE) has officially confirmed the acquisition of a skilled nursing portfolio comprising four facilities with a total of 396 beds/units, situated in the Mid-Atlantic region. The investment, amounting to approximately $74.7 million, was fully financed through available cash reserves.
Moreover, the company highlighted that following the completion of this acquisition, its investment pipeline has been replenished to the tune of $240 million, involving immediate actionable opportunities.
Among the four facilities procured, one features a campus combining skilled nursing and assisted living, incorporating 47 assisted living units.
In conjunction with the acquisition, CareTrust has entered into a triple-net master lease arrangement with a new operational partner. This master lease is set for an initial duration of 15 years, inclusive of two optional 5-year extensions. It establishes a first-year contractual lease yield of 9.3%, with provisions for annual increases tied to the Consumer Price Index (CPI).
To adeptly address certain local regulatory constraints, the acquisition for one specific facility was structured as a mortgage loan, extended by CareTrust to the operator.
