CareTrust REIT acquires 396-bed/unit skilled nursing portfolio for $74.7M

CareTrust REIT announced that it has acquired a four-facility, 396-bed/unit skilled nursing portfolio located in the Mid-Atlantic for a total investment amount of approximately $74.7M. One of the four facilities acquired is a skilled nursing and assisted living campus, which includes 47 assisted living units. In connection with the acquisition, the company entered into a triple-net master lease with a new operator relationship for the company. The operator is an experienced skilled nursing operator who has operated facilities across multiple states. The new master lease has an initial term of 15 years with two, five-year extension options and provides for a year one contractual lease yield of 9.3% with annual CPI-based escalators. To facilitate certain local constraints, the acquisition of one of the facilities was structured as a mortgage loan extended by CareTrust to the operator, with the mortgage loan having substantially the same economics, maturity, and other terms as the master lease. The investment was funded using cash on hand. In September, the company raised $309.9M at an average price of $30.38 per share under its new $750M ATM program bringing its outstanding share count to 171.5M shares. Also in September, the company paid off its $200M term loan. The company is currently in the process of amending and extending its existing credit facility. As of today, the company currently has approximately $280M of cash on hand.