SAN CLEMENTE, Calif. — CareTrust REIT Inc. (NYSE:CTRE), a San Clemente-based investor, has acquired a five-facility, 498-bed skilled nursing portfolio located in the Southeast for $80.9 million, including transaction costs.
In connection with the acquisition, the company entered into a new triple-net master lease with affiliates of YAD Healthcare, a new operator relationship for the company and an experienced skilled nursing operator with facilities across multiple states in the Mid-Atlantic and Southeast. The lease has an initial term of 10 years with two five-year extension options and provides for a year-one contractual lease yield of 9 percent with annual CPI-based escalators. The investment was funded using cash on hand.
The acquisition was part of a larger transaction that closed concurrently in which CareTrust provided approximately $99 million in portfolio acquisition financing to a regional owner-operator of skilled nursing facilities.
CareTrust also reported that with these two related investments, the company’s year-to-date investments now total approximately $386 million, and the investment pipeline is reloaded with approximately $460 million of “near-term, actionable opportunities.”
CareTrust’s stock price closed at $26.14 per share on Wednesday, June 5, the day the transaction was announced, up from $18.96 one year prior.