CareTrust REIT (NYSE: CTRE) acquired 10 nursing homes in the Pacific Northwest for $146 million, the real estate investment trust announced on Monday.
The 10 facilities are spread across Idaho, Oregon and Washington, and comprise 911 licensed beds. The deal was completed through a joint venture agreement between CareTrust and an unnamed large third-party health care real estate owner.
The acquisition reflects commitment to disciplined growth and continued opportunity in the post-acute care sector, James Callister, chief investment officer for CareTrust, said in a statement.
The joint venture has leased the facilities to two existing tenants who have strong rent coverage on existing leased properties with CareTrust.
“Working alongside two strong existing tenants and our joint venture partner to navigate a complex closing structure has been a pleasure, and we’re thrilled to add to relationships that align with our long-term strategy,” added Callister.
CareTrust provided common equity and preferred equity investments totaling $141 million at an annual contractual yield of about 9%. The deal was funded using a combination of cash on hand and a draw from CareTrust’s revolving credit line, bringing the outstanding balance on the revolver to $475 million.
“This acquisition further underscores the favorable investment environment we are seeing and highlights CareTrust’s unique ability to leverage its operator roots to grow our portfolio with high-quality tenants,” Joe Callan, senior vice president of investments, said of the deal.
This transaction brings CareTrust’s annual investment total to about $1.1 billion.
“After a busy 2024 deploying over $1.5 billion in skilled nursing and seniors housing investments, the momentum continues in 2025,” said Callister. “We’re excited to announce this transaction after closing the Care REIT acquisition in May to highlight the concurrent opportunities in the US and UK to grow our portfolio. With our balance sheet strength, we’re positioned to pursue those opportunities in both markets simultaneously.”
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