CareTrust REIT Closes $400M Skilled Nursing Portfolio Deal, Expanding Record Year of Investments
On September 15, CareTrust REIT (NYSE:CTRE) announced the completion of a $400 million skilled nursing portfolio acquisition in the Southwest. The deal includes 2,622 licensed beds triple net leased back to an existing operator and is part of CTRE's broader investment pipeline totaling over $1.9 billion for 2026. This transaction aligns with CareTrust’s consistent yield performance—projected at around 8.6%—matching its blended yield from earlier deals this year. The company has been aggressively expanding, closing roughly $710 million in third-quarter investments and raising full-year guidance to a normalized FFO range of $2.03–$2.06 per share—an increase of over 16%. CareTrust’s balance sheet remains strong with low net debt-to-EBITDA at 1.01x, along with significant liquidity through its revolver and ATM capacity. However, the rapid growth has come at a cost to shareholders due to equity dilution, rising interest expenses, and new provisions for loan losses. Institutional ownership of CareTrust increased in Q3, while short interest remains elevated at 7.80% of float, indicating market uncertainty.
Topics: healthcare investments real estate