CareTrust REIT acquires 5 skilled nursing facilities for $81M

CareTrust REIT “announced that it has acquired a 5-facility, 498 licensed bed, skilled nursing portfolio located in the Southeastern United States for a total investment amount of approximately $80.9M. 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 Southeastern regions. The new master lease has an initial term of 10 years with two, 5-year extension options and provides for a year 1 contractual lease yield of 9.0% with annual CPI-based escalators. The investment was funded using cash on hand. 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 has issued 2.5 million shares under its ATM program quarter-to-date at a gross price of $24.90 for gross proceeds of $62.3 million bringing the total outstanding share count to 144.6 million shares. Today’s cash on hand is approximately $230 million.”