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CareTrust REIT Acquires Santa Barbara Skilled Nursing Facility

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CareTrust REIT, Inc. (NASDAQ:CTRE) has acquired Buena Vista Care Center, a 150-bed skilled nursing facility in Santa Barbara, California, for approximately $15.9 million. The facility will continue operations under Covenant Care, which has a strong local presence. CareTrust's investment includes transaction costs and will leverage its $600 million unsecured revolving credit facility. The acquisition is expected to enhance CareTrust's relationship with Covenant Care, adding to its portfolio of long-term net-leased healthcare properties.

Positive
  • Acquisition of Buena Vista Care Center enhances CareTrust's relationship with Covenant Care.
  • Strategic location near Goleta Valley Cottage Hospital increases market reach.
  • Expected annual cash rent of approximately $1.5 million with 3.0% annual escalators.
Negative
  • None.

SAN CLEMENTE, Calif., March 09, 2021 (GLOBE NEWSWIRE) -- CareTrust REIT, Inc. (NASDAQ:CTRE) announced today that it has acquired Buena Vista Care Center, a 150-bed skilled nursing facility in the exclusive Southern California community of Santa Barbara. The facility will continue to be operated by California-based Covenant Care, Inc. under a long-term lease that CareTrust assumed in the off-market transaction.         

“Not only is Buena Vista a special property, the icing on the cake is the opportunity to add an eighth facility to our existing relationship with Covenant Care,” said Mark Lamb, CareTrust’s Chief Investment Officer. “Covenant Care has established a long and admirable track record of providing excellent care to Santa Barbara’s residents and medical community,” he said. Mr. Lamb noted that Buena Vista Care Center is located in close proximity to Goleta Valley Cottage Hospital and has a market reach that extends well beyond the greater Santa Barbara area.

CareTrust’s total investment was approximately $15.9 million, inclusive of transaction costs. Covenant Care has approximately four years left on its existing lease term, with two five-year renewal options. The lease currently carries approximately $1.5 million in annual cash rent with 3.0% annual escalators. The acquisition was funded using CareTrust’s $600 million unsecured revolving credit facility.        

About CareTrust REIT, Inc.

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.

Contact:
CareTrust REIT, Inc.
(949) 542-3130
ir@caretrustreit.com


FAQ

What is the significance of CareTrust's acquisition of Buena Vista Care Center?

The acquisition strengthens CareTrust's relationship with Covenant Care and expands its portfolio of skilled nursing facilities.

How much did CareTrust invest in the Buena Vista Care Center acquisition?

CareTrust invested approximately $15.9 million in the acquisition, including transaction costs.

What are the lease terms for Buena Vista Care Center?

Covenant Care has four years left on its existing lease with two five-year renewal options.

What is the expected cash rent from the acquired facility?

The expected annual cash rent is approximately $1.5 million, with 3.0% annual escalators.

How will the acquisition be funded?

The acquisition will be funded using CareTrust's $600 million unsecured revolving credit facility.

CareTrust REIT, Inc

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REIT - Healthcare Facilities
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