CareTrust REIT Closes $45 Million of Investments in Skilled Nursing and Seniors Housing Facilities
05 Julho 2023 - 7:01AM
Business Wire
CareTrust REIT, Inc. (NYSE:CTRE) announced today that it
recently closed two separate transactions on the West Coast with an
aggregate initial investment amount of approximately $45.2 million.
The investments include the acquisition of a skilled nursing
facility as well as the funding of a mortgage loan secured by a
California skilled nursing, assisted living, and independent living
campus.
On June 30, 2023, CareTrust acquired a 99-bed skilled nursing
facility on the West Coast with an initial investment amount,
inclusive of transaction costs, of approximately $19.2 million. The
acquisition completes the four-property transaction referenced in
the Company’s June 2, 2023 press release. Concurrently with
closing, the newly-acquired facility was added to the Company’s
existing master lease with Links Healthcare Group, who will operate
the facility. Annual cash rent for the first year under the Links
master lease portfolio was increased to approximately $6.8 million
from $5.4 million, second year rent was increased to approximately
$7.6 million up from $6.1 million, and annual rent for the third
year was increased to approximately $8.9 million from $7.1 million,
with CPI-based annual escalators thereafter.
Effective June 30, 2023, CareTrust also funded a first priority
mortgage loan to a regional owner of skilled nursing facilities in
the amount of approximately $26.0 million at an initial rate of
9.0% and a term of 10 years. The loan proceeds were used by the
borrower to fund its acquisition of an 83-bed skilled nursing,
46-unit assisted living, and 99-unit independent living campus
located in Loma Linda, California and known as Linda Valley Care
Center, Linda Valley Assisted Living, and Linda Valley Villa,
respectively. The skilled nursing and assisted living facilities
will be operated by affiliates of The Providence Group and the
independent living facility will be operated by an affiliate of
Chancellor Health Care, each pursuant to new master lease
agreements. The mortgage loan documents contemplate CareTrust and
the borrower subsequently entering into a joint venture arrangement
pursuant to which the mortgage loan would be replaced with the
Company acquiring a common equity and a preferred equity interest
in the entities owning the campus facilities.
James Callister, CareTrust’s Chief Investment Officer, stated
that “these investments reflect our continued focus on an
operator-first, relationship-based investment approach.” He went on
to state that, “we are excited by the opportunity to further our
relationship with some of the country’s top tenants by matching
them with facilities that complement their operating
strengths.”
“Links has done a tremendous job transitioning into these
facilities and we are thrilled to add another facility to our
relationship with them,” said Dave Sedgwick, CareTrust’s Chief
Executive Officer. He went on to state that, “Extending a loan on
facilities operated by talented operators like Providence and
Chancellor furthers our strategy of using loans primarily as a tool
to strengthen relationships with operators we admire with an eye
towards future investments.”
The investments were funded using proceeds from the Company’s
$600 million unsecured revolving credit facility as well as cash on
hand. At June 30, 2023, the Company had $280 million outstanding on
the unsecured revolving credit facility. Additionally, during the
second quarter, the Company utilized the forward provisions under
its at-the-market equity offering program and expects to fully
physically settle shares sold under equity forward contracts on one
or more settlement dates prior to final settlement in the second
quarter of 2024. Expected net proceeds of $133 million represent
approximately 67% of year-to-date investments completed of $199.7
million. “We are thrilled with our year-to-date acquisitions and
look forward to continuing to grow with both new and existing
operators,” Mr. Sedgwick said.
About CareTrust™
CareTrust REIT, Inc. is a self-administered, publicly-traded
real estate investment trust engaged in the ownership, acquisition,
development and leasing of skilled nursing, seniors housing and
other healthcare-related properties. With a nationwide portfolio of
long-term net-leased properties, and a growing portfolio of quality
operators leasing them, CareTrust REIT is pursuing both external
and organic growth opportunities across the United States. More
information about CareTrust REIT is available at
www.caretrustreit.com.
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CareTrust REIT, Inc., (949) 542-3130, ir@caretrustreit.com
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