CareTrust REIT Invests in Secured Loan Financing on Southeast SNFs

Rhea-AI Summary

CareTrust REIT, Inc. (NYSE:CTRE) announced a $24.9 million B-piece secured financing for a portfolio of four skilled nursing assets located in the Southeast, comprising around 700 beds. The loan has a three-year maturity with two one-year extensions and an annual interest rate of 9.00%. Funded with cash on hand, this financing marks the beginning of a new partnership with a Southeast operator, with plans to explore further growth opportunities through acquisitions and leaseback activities.

Positive

• Secured $24.9 million financing for skilled nursing portfolio.
• New partnership established with a Southeast operator.
• Interest rate of 9.00% is competitive for this type of financing.

Negative

• The 9.00% interest rate could indicate higher financial risk.
• Reliance on cash on hand for funding may limit liquidity.

SAN CLEMENTE, Calif.--(BUSINESS WIRE)-- CareTrust REIT, Inc. (NYSE:CTRE) announced today that it has funded a $24.9 million B-piece secured financing on a 4-asset skilled nursing portfolio located in the Southeast. The portfolio includes approximately 700 skilled nursing beds.

The B-piece loan is secured by the borrowers’ ownership interest in the real estate and carries a three-year maturity with two, 1-year extensions and an annual interest rate of 9.00%. The loan was funded with cash on hand.

“This loan begins a new relationship with this new Southeast operator,” said Dave Sedgwick, CareTrust’s Chief Executive Officer. Mr. Sedgwick went on to state that: “The operator has done a tremendous job since taking over this portfolio and we are excited to now explore other opportunities to grow with them through our traditional asset acquisition and leaseback investment activity.”

About:

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220913005541/en/

CareTrust REIT, Inc.

(949) 542-3130

ir@caretrustreit.com

Source: CareTrust REIT, Inc.

FAQ

What is the recent financing announcement by CareTrust REIT (CTRE)?

CareTrust REIT announced a $24.9 million B-piece secured financing for a portfolio of four skilled nursing assets.

Where is the skilled nursing portfolio financed by CareTrust REIT located?

The skilled nursing portfolio is located in the Southeast.

What is the interest rate for the B-piece loan announced by CareTrust REIT?

The B-piece loan carries an annual interest rate of 9.00%.

How many skilled nursing beds are included in the financed portfolio of CareTrust REIT?

The portfolio includes approximately 700 skilled nursing beds.

What are the terms of the loan maturity for CareTrust REIT's recent financing?

The loan has a three-year maturity with two one-year extensions.