CareTrust REIT, Inc. Announces Launch of Public Offering of Common Stock

Rhea-AI Summary

CareTrust REIT (NYSE: CTRE) has announced plans for a public offering of 11,500,000 shares of common stock, with an additional 30-day option for underwriters to purchase up to 1,725,000 more shares. The net proceeds will be contributed to CTR Partnership, L.P., and used to fund new investments, including the acquisition of 31 skilled nursing facilities through a joint venture. Wells Fargo Securities, BofA Securities, and J.P. Morgan are serving as joint lead book-running managers, with BMO Capital Markets and KeyBanc Capital Markets also acting as joint book-running managers.

Positive

• Planned acquisition of 31 skilled nursing facilities expanding portfolio
• Strategic growth through joint venture arrangement

Negative

• Potential shareholder dilution from 11.5M share offering
• Additional dilution risk from 1.725M share underwriter option

Insights

Financial Analyst

The announced public offering of 11.5 million shares with an additional 1.725 million share option represents a significant capital raise that will substantially impact CareTrust REIT's capital structure. The planned acquisition of 31 skilled nursing facilities through a joint venture signals an aggressive expansion strategy that could materially boost the company's portfolio and revenue potential. With a current market cap of $5.08 billion, this offering could dilute existing shareholders but provides essential capital for growth. The involvement of major underwriters like Wells Fargo, BofA and J.P. Morgan adds credibility to the offering and suggests strong institutional interest. The healthcare REIT sector's fundamentals remain solid, with aging demographics driving demand for skilled nursing facilities.

SAN CLEMENTE, Calif.--(BUSINESS WIRE)-- CareTrust REIT, Inc. (NYSE: CTRE) (“CareTrust REIT” or the “Company”) announced that, subject to market and other conditions, it intends to offer to sell 11,500,000 shares of its common stock in an underwritten public offering. The Company also intends to grant the underwriters a 30-day option to purchase up to an additional 1,725,000 shares of common stock. If exercised, all additional shares will be offered at the public offering price per share of common stock in the offering.

The Company intends to contribute the net proceeds to CTR Partnership, L.P., its operating partnership, which will in turn use the proceeds from this offering to fund new investments, including to acquire 31 skilled nursing facilities through a joint venture arrangement.

Wells Fargo Securities, BofA Securities and J.P. Morgan are acting as joint lead book-running managers for the offering. BMO Capital Markets and KeyBanc Capital Markets are also acting as joint book-running managers for the offering.

A shelf registration statement (including prospectus) relating to the Company’s common stock was previously filed with the Securities and Exchange Commission and was automatically effective upon filing.

This offering may only be made by means of a prospectus supplement and the accompanying prospectus. A copy of the preliminary prospectus supplement and accompanying prospectus relating to the offering may be obtained from Wells Fargo Securities, LLC, Attn: WFS Customer Service, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402 or by telephone at 800-645-3751 or email a request to wfscustomerservice@wellsfargo.com, BofA Securities, Attn: Prospectus Department, 201 North Tryon Street, Charlotte, NC 28255 or email a request to dg.prospectus_requests@bofa.com, or J.P. Morgan Securities LLC c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or email a request to prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com. You may also obtain a copy of the preliminary prospectus supplement and accompanying prospectus, without charge, by visiting the SEC’s website at http://www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any offer, solicitation or sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About CareTrust REIT^TM

CareTrust REIT is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, financing, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241030052663/en/

CareTrust REIT, Inc.

(949) 542-3130

ir@caretrustreit.com

Source: CareTrust REIT, Inc.

FAQ

How many shares is CareTrust REIT (CTRE) offering in its public offering?

CareTrust REIT is offering 11,500,000 shares of common stock, with an additional 30-day option for underwriters to purchase up to 1,725,000 more shares.

What will CareTrust REIT (CTRE) use the proceeds for?

The proceeds will be used to fund new investments, including the acquisition of 31 skilled nursing facilities through a joint venture arrangement.

Who are the lead book-running managers for CareTrust REIT's (CTRE) offering?

Wells Fargo Securities, BofA Securities, and J.P. Morgan are acting as joint lead book-running managers for the offering.