CareTrust Reports 99.7 Percent Rent Collection in May

by Jeff Shaw

SAN CLEMENTE, Calif. — Despite the struggles caused by the COVID-19 pandemic, CareTrust REIT (NASDAQ: CTRE) reports that it still received 99.7 percent of rents in May.

The San Clemente-based REIT invests in seniors housing, with a portfolio of 212 properties totaling 21,652 units around the country. Skilled nursing makes up about three quarters of the company’s units.

Although occupancy is generally down across CareTrust’s portfolio, the company noted that moves at relief for skilled nursing facilities has helped soften the blow.

In an investor presentation, CTRE said that the elimination of the three-day requirement before a Medicare or Medicaid patient could move from the hospital to a skilled nursing facility has had a strong impact.

“Providers can now ‘skill in place’ — eliminating the high risk of transferring the patient to the hospital,” the presentation stated. “Because of this rule change, skilled mix in some facilities has increased while overall occupancy has declined.”

As of June 1, estimated federal and state national emergency-related relief approved or received to date by CTRE skilled nursing operators totals $137.3 million, which likely helped the tenants continue to pay rent on time.

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