SAN CLEMENTE, Calif. — CareTrust REIT Inc. (NASDAQ:CTRE) has acquired a portfolio of nine skilled nursing facilities in Iowa for $32.7 million.
CareTrust will lease the portfolio to the current operator, Trillium Healthcare Group LLC, through an amendment to the existing master lease. The names of the specific facilities were not disclosed.
The portfolio includes 518 operating skilled nursing beds. The initial annual rental revenue will be approximately $3.2 million under the master lease, which has more than 14 years remaining. There are two five-year renewal options on the lease, as well as rent escalators based on the Consumer Price Index.
Trillium operates 29 skilled nursing and seniors housing communities throughout the Southeast and Midwest. CareTrust is a publicly traded REIT based in San Clemente with a focus on seniors housing and healthcare properties.