CareTrust REIT Announces $55 Million Acquisition of Two California Facilities in Separate Transactions
CareTrust REIT (NYSE:CTRE) has announced two strategic facility acquisitions in California, totaling approximately $55 million. The first acquisition, completed on April 1, 2025, involves a Los Alamitos campus featuring a 150-bed skilled nursing facility and 140-bed residential care facility. This was structured through a joint venture with $34 million investment at a 9.7% initial yield, leased to The Ensign Group under a 15-year NNN agreement.
The second acquisition, completed on March 1, 2025, is a 160-bed residential care facility in Concord, California, purchased for $20.6 million. This facility will be operated by Kalesta Healthcare Group under an existing master lease, generating approximately $1.9 million in first-year annual cash rent. Both investments were funded using cash on hand and include CPI-based annual escalators.
CareTrust REIT (NYSE:CTRE) ha annunciato due acquisizioni strategiche di strutture in California, per un totale di circa 55 milioni di dollari. La prima acquisizione, completata il 1 aprile 2025, riguarda un campus a Los Alamitos con una struttura di assistenza infermieristica con 150 letti e una struttura di assistenza residenziale con 140 letti. Questa operazione è stata realizzata attraverso una joint venture con un investimento di 34 milioni di dollari a un rendimento iniziale del 9,7%, affittata al The Ensign Group con un contratto NNN di 15 anni.
La seconda acquisizione, completata il 1 marzo 2025, è una struttura di assistenza residenziale con 160 letti a Concord, California, acquistata per 20,6 milioni di dollari. Questa struttura sarà gestita dal Kalesta Healthcare Group sotto un contratto di locazione principale esistente, generando circa 1,9 milioni di dollari in affitto annuale per il primo anno. Entrambi gli investimenti sono stati finanziati utilizzando liquidità disponibile e includono aumenti annuali basati sull'IPC.
CareTrust REIT (NYSE:CTRE) ha anunciado dos adquisiciones estratégicas de instalaciones en California, con un total de aproximadamente 55 millones de dólares. La primera adquisición, completada el 1 de abril de 2025, involucra un campus en Los Alamitos que cuenta con una instalación de enfermería especializada de 150 camas y una instalación de cuidado residencial de 140 camas. Esta operación se estructuró a través de una empresa conjunta con una inversión de 34 millones de dólares a un rendimiento inicial del 9.7%, arrendada al The Ensign Group bajo un acuerdo NNN de 15 años.
La segunda adquisición, completada el 1 de marzo de 2025, es una instalación de cuidado residencial de 160 camas en Concord, California, comprada por 20.6 millones de dólares. Esta instalación será operada por Kalesta Healthcare Group bajo un contrato de arrendamiento maestro existente, generando aproximadamente 1.9 millones de dólares en renta anual durante el primer año. Ambas inversiones fueron financiadas utilizando efectivo disponible e incluyen escaladores anuales basados en el IPC.
CareTrust REIT (NYSE:CTRE)는 캘리포니아에서 약 5,500만 달러 규모의 두 개의 전략적 시설 인수를 발표했습니다. 첫 번째 인수는 2025년 4월 1일에 완료되었으며, 150병상의 전문 요양 시설과 140병상의 주거 요양 시설이 있는 로스 알라미토스 캠퍼스를 포함합니다. 이는 3,400만 달러의 투자를 통해 9.7%의 초기 수익률로 구성된 합작 투자로, 15년 NNN 계약 하에 The Ensign Group에 임대됩니다.
두 번째 인수는 2025년 3월 1일에 완료된 콘코드, 캘리포니아의 160병상 주거 요양 시설로, 2,060만 달러에 구매되었습니다. 이 시설은 기존 마스터 리스 하에 Kalesta Healthcare Group에 의해 운영되며, 첫 해 연간 현금 임대료로 약 190만 달러를 생성할 것입니다. 두 투자 모두 현금으로 자금을 조달하였으며, CPI 기반의 연간 인상 조항이 포함되어 있습니다.
CareTrust REIT (NYSE:CTRE) a annoncé deux acquisitions stratégiques d'établissements en Californie, totalisant environ 55 millions de dollars. La première acquisition, finalisée le 1er avril 2025, concerne un campus à Los Alamitos comprenant un établissement de soins infirmiers de 150 lits et un établissement de soins résidentiels de 140 lits. Cela a été structuré par le biais d'une coentreprise avec un investissement de 34 millions de dollars à un rendement initial de 9,7 %, loué au The Ensign Group sous un contrat NNN de 15 ans.
La deuxième acquisition, finalisée le 1er mars 2025, est un établissement de soins résidentiels de 160 lits à Concord, Californie, acheté pour 20,6 millions de dollars. Cet établissement sera exploité par le Kalesta Healthcare Group sous un bail principal existant, générant environ 1,9 million de dollars de loyer annuel pour la première année. Les deux investissements ont été financés par des liquidités disponibles et incluent des augmentations annuelles basées sur l'IPC.
CareTrust REIT (NYSE:CTRE) hat zwei strategische Einrichtungen in Kalifornien angekündigt, die insgesamt etwa 55 Millionen Dollar kosten. Die erste Akquisition, die am 1. April 2025 abgeschlossen wurde, betrifft einen Campus in Los Alamitos mit einer 150-Betten-Pflegeeinrichtung und einer 140-Betten-Wohneinrichtung. Diese wurde durch ein Joint Venture mit einer Investition von 34 Millionen Dollar und einer anfänglichen Rendite von 9,7 % strukturiert, die an die Ensign Group unter einem 15-jährigen NNN-Vertrag vermietet wurde.
Die zweite Akquisition, die am 1. März 2025 abgeschlossen wurde, ist eine 160-Betten-Wohneinrichtung in Concord, Kalifornien, die für 20,6 Millionen Dollar gekauft wurde. Diese Einrichtung wird von der Kalesta Healthcare Group unter einem bestehenden Hauptmietvertrag betrieben und generiert im ersten Jahr etwa 1,9 Millionen Dollar an jährlicher Barmiete. Beide Investitionen wurden aus vorhandenen liquiden Mitteln finanziert und beinhalten jährliche Steigerungen basierend auf dem Verbraucherpreisindex.
- Total investment of $55 million expands portfolio with two performing facilities
- 9.7% initial yield on $34 million Los Alamitos joint venture investment
- Secured 15-year NNN lease with The Ensign Group including two 5-year extension options
- Concord facility generates $1.9 million in first-year annual cash rent
- Both deals include CPI-based annual escalators for rent protection
- None.
Insights
CareTrust REIT's
Both acquisitions feature triple-net lease structures with CPI-based escalators, providing built-in inflation protection while shifting operational expenses to tenants. The use of cash on hand for funding demonstrates balance sheet strength without dilution or additional leverage. While these acquisitions represent just
The diversification across two different operating partners reduces concentration risk while maintaining geographic focus in California, where healthcare facilities typically command premium valuations. The long-term leases (15 years with extension options) create predictable, growing cash flows that align perfectly with the REIT's income-focused investment model.
These healthcare facility acquisitions highlight CareTrust's expertise in strategic asset selection and operator relationship development. The Los Alamitos campus combines a 150-bed skilled nursing facility with a 140-bed residential care facility, offering valuable care-level diversification within a single location – creating operational synergies for the Ensign Group as operator.
The 15-year lease term provides revenue visibility through 2040, with extension options potentially extending to 2050. Similarly, adding the Concord facility to an existing master lease with Kalesta demonstrates relationship deepening and operator satisfaction. Both lease structures include CPI-based escalators, creating inflation-protected income streams essential in the current economic environment.
The joint venture approach for the larger acquisition indicates sophisticated capital deployment, enabling CareTrust to participate in larger transactions while maintaining return thresholds. Healthcare facilities serving aging demographics remain among the most recession-resistant real estate investments, particularly when operated by established companies like Ensign Group.
The triple-net lease structure effectively insulates CareTrust from rising operational costs, making these additions particularly valuable amid inflationary pressures. These transactions demonstrate CareTrust's ability to source accretive acquisitions while maintaining disciplined underwriting standards and strengthening their operator ecosystem.
On April 1, 2025, the company acquired a skilled nursing and assisted living campus facility located in
CareTrust has also announced that on March 1, 2025, the company acquired a 160-bed residential care facility for the elderly located in
“We are excited to add two additional, solidly-performing facilities to our portfolio,” said James Callister, CareTrust’s Chief Investment Officer. Mr. Callister went on to state that, “We are always excited to expand our relationship with affiliates of The Ensign Group as they bring their outstanding operating expertise to the employees, residents, and patients of this
Joe Callan, a Senior Vice President at CareTrust, stated that, “To expand our relationship with an operator of Kalesta’s quality is an exciting seniors housing opportunity for us as we continue our mission of matching opportunities with best-in-class operators.”
The investments were funded using cash on hand.
About CareTrustTM
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
About EnsignTM
The Ensign Group, Inc.'s independent operating subsidiaries provide a broad spectrum of skilled nursing and senior living services, physical, occupational and speech therapies and other rehabilitative and healthcare services at 343 healthcare facilities in
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical statements of fact and statements regarding the Company’s intent, belief or expectations, including, but not limited to, statements regarding the closing of the transaction, lease arrangements for the acquired facilities, and the Company’s investment pipeline.
Words such as “anticipate,” “believe,” “could,” “expect,” “estimate,” “intend,” “may,” “plan,” “seek,” “should,” “will,” “would,” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements, though not all forward-looking statements contain these identifying words. The Company’s forward-looking statements are based on management’s current expectations and beliefs, and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although the Company believes that the assumptions underlying these forward-looking statements are reasonable, they are not guarantees and the Company can give no assurance that the transaction will close in the anticipated timeframe, or at all, or that its expectations will be attained. Factors which could have a material adverse effect on the Company’s operations and future prospects or which could cause actual results to differ materially from expectations include, but are not limited to: (i) uncertainties as to the timing of closing of the transaction and other anticipated investments; (ii) the possibility that conditions to closing the transaction may not be satisfied or waived; (iii) the ability and willingness of our tenants to meet and/or perform their obligations under the triple-net leases we have entered into with them, including without limitation, their respective obligations to indemnify, defend and hold us harmless from and against various claims, litigation and liabilities; (iv) the risk that we may have to incur additional impairment charges related to our assets held for sale if we are unable to sell such assets at the prices we expect; (v) the impact of healthcare reform legislation, including minimum staffing level requirements, on the operating results and financial conditions of our tenants; (vi) the ability of our tenants to comply with applicable laws, rules and regulations in the operation of the properties we lease to them; (vii) the ability and willingness of our tenants to renew their leases with us upon their expiration, and the ability to reposition our properties on the same or better terms in the event of nonrenewal or in the event we replace an existing tenant, as well as any obligations, including indemnification obligations, we may incur in connection with the replacement of an existing tenant; (viii) the availability of and the ability to identify (a) tenants who meet our credit and operating standards, and (b) suitable acquisition opportunities and the ability to acquire and lease the respective properties to such tenants on favorable terms; (ix) the ability to generate sufficient cash flows to service our outstanding indebtedness; (x) access to debt and equity capital markets; (xi) fluctuating interest rates; (xii) the impact of public health crises, including significant COVID-19 outbreaks as well as other pandemics or epidemics; (xiii) the ability to retain our key management personnel; (xiv) the ability to maintain our status as a real estate investment trust (“REIT”); (xv) changes in the
As used in this press release, unless the context requires otherwise, references to “CTRE,” "CareTrust," “CareTrust REIT” or the “Company” refer to CareTrust REIT, Inc. and its consolidated subsidiaries.
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CareTrust REIT, Inc.
(949) 542-3130
ir@caretrustreit.com
Source: CareTrust REIT, Inc.
FAQ
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What is the bed capacity of the newly acquired CTRE facilities in California?
