CareTrust REIT closed a $142 million deal for six skilled nursing facilities in the Mid‑Atlantic region, adding 532 licensed beds to its portfolio. The acquisition, effective January 1, 2026, is structured as a long‑term triple‑net lease to a new operator with inflation‑based rent escalators and multiple renewal options, positioning the REIT to capture a 9% stabilized yield on the portfolio.
The purchase aligns with CareTrust’s core strategy of acquiring high‑yield, long‑term leased assets. By adding a 9% yield property, the REIT strengthens its income profile and diversifies its geographic footprint in a region with robust demand for skilled nursing services. The deal also expands the REIT’s operator network, reinforcing its relationship‑driven growth model and providing a platform for future acquisitions in similar markets.
CareTrust’s 2025 investment activity totaled approximately $1.8 billion, and the company has deployed about $3.3 billion over the past two years. With a current investment pipeline valued at roughly $300 million, the REIT demonstrates sustained capital deployment momentum and a clear path to further portfolio expansion in 2026 and beyond.
CEO Dave Sedgwick said the transaction “checks all the right boxes” and underscores the REIT’s confidence in maintaining investment momentum into 2026. Chief Investment Officer James Callister highlighted the deal’s alignment with the company’s disciplined, relationship‑driven growth approach, while Senior Vice President of Investments Joe Callan noted the successful establishment of a new partnership with a well‑regarded operator.
The new tenant, a proven operator with a strong credit profile, will manage the facilities under a triple‑net lease that includes inflation‑based rent escalators and multiple renewal options. This lease structure provides CareTrust with predictable, long‑term cash flows and protects the REIT from operating and maintenance costs, further enhancing the attractiveness of the 9% yield on the portfolio.
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