CareTrust REIT announced 13 skilled nursing acquisitions this week in that part of its continuing senior housing investments.
One set of acquisitions was a southeastern 5-facility, 498 licensed bed, skilled nursing portfolio. As part of that deal, the company entered a triple-net master lease with affiliates of YAD Healthcare, a new operator relationship for the company. The initial term is 10 years with two 5-year extensions and a year 1 contractual lease yield of 9.0% (inclusive of transaction costs) with annual CPI-based escalators, the company said.
The deal was funded with cash on hand. According to Dave Sedgwick, CareTrust REIT's president and chief executive officer, during a May earnings call, the company entered 2024 with about $300 million cash "because we saw the potential for 2024 to be a record year of investments."
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