CareTrust REIT Seals Major Deal: $500 Million Southeastern Portfolio Acquisition to Boost $700 Million Investment Pipeline by Year-End

SAN CLEMENTE, Calif.–(BUSINESS WIRE)–CareTrust REIT, Inc. (NYSE:CTRE) announced today that, together with a joint venture partner, it has entered into a binding agreement to acquire a portfolio of skilled nursing facilities for a purchase price of approximately $500 million. The portfolio consists of 31 skilled nursing facilities and a total of 3,290 licensed beds, with 30 of the facilities located in Tennessee and 1 in Alabama.

SAN CLEMENTE, Calif. (Business News Flash) — CareTrust REIT, Inc. (NYSE: CTRE) today announced that it has entered into a binding agreement with a joint venture partner to acquire approximately $500 million in Acquired a group of skilled nursing facilities for a purchase price of US$. .

The acquisition is subject to customary closing conditions, and there can be no assurance that the transaction will close in the anticipated timeframe, or at all. The Company anticipates that the transaction will close in the fourth quarter of 2024..

The acquisition is subject to customary closing conditions, and there can be no assurance that the transaction will close within the expected timeframe, or at all. The company expects the transaction to close in the fourth quarter of 2024. .

It is anticipated that most of the facilities will be operated by existing CareTrust tenant relationships, including affiliates of The Ensign Group (NASDAQ: ENSG), PACS Group, Inc. (NYSE: PACS), and Links Healthcare Group. PACS has agreed to operate 12 of the facilities, Ensign affiliates 9 of the facilities, and Links 7 of the facilities.

Most facilities are expected to be operated by existing CareTrust tenant relationships, including affiliates of Ensign Group (NASDAQ: ENSG), PACS Group, Inc. (NYSE: PACS) and Links Healthcare Group. PACS has agreed to operate 12 of the facilities, nine of its facilities’ subsidiaries and seven of its facilities’ links.

Three facilities will be master leased to a regional operator that is a new tenant relationship for CareTrust. Three of Ensign’s 9 facilities will be acquired by Ensign’s real estate subsidiary with the remaining 6 to be included in a new master lease..

Three facilities will be master-leased to regional operators, a new tenant relationship for CareTrust. Ensign’s real estate subsidiary will acquire three of Ensign’s nine facilities and the remaining six will be incorporated into new master leases. .

The acquisition will be completed through a joint venture arrangement entered into between CareTrust and a large third-party healthcare real estate owner. In connection with the joint venture’s acquisition of the portfolio, CareTrust expects to provide a combined common equity and preferred equity investment amount totaling approximately $442 million at an initial contractual yield on its combined preferred and common equity investments in the joint venture of approximately 9.0%..

The acquisition will be completed through a joint venture agreement between CareTrust and a large third-party healthcare real estate owner. . .

Dave Sedgwick, CareTrust’s President and Chief Executive Officer, stated that, “This transaction provides an extraordinary opportunity for us and these operators to significantly expand our presence in two states we are very excited about: Tennessee and Alabama.” Mr. Sedgwick went on to state that, “The successful closing of this transaction in the fourth quarter will, not including other opportunities we continue to pursue, bring our annual investment total to approximately $1.4 billion.

Dave Sedgwick, CareTrust president and CEO, said, “This transaction provides us and these carriers with a very good opportunity to significantly expand our presence in both Tennessee and Alabama. business in a state we are very excited about.” Mr. Sedgwick continued, “The successful completion of this transaction in the fourth quarter, excluding other opportunities we continue to pursue, will bring our total annual investment to approximately $1.4 billion.

Combining the full-year impact of this year’s investments with a reloading pipeline, the table is set for 2025 to be another tremendous year for CareTrust and the many operators we support.”.

Combined with the full-year impact of this year’s investments and a reloaded pipeline, the table predicts 2025 will be another huge year for CareTrust and the many carriers we support. “.

James Callister, CareTrust’s Chief Investment Officer, remarked that, “We are incredibly excited to expand our relationship with Ensign, PACS and Links and to begin a new relationship with another quality operator as they each strive to provide an outstanding experience for their employees, residents, patients, and communities.”.

James Callister, chief investment officer at CareTrust, said: “We are very pleased to expand our relationships with Ensign, PACS and Links and enter into a new relationship with another quality operator as they all work to provide services for their employees, Provide an exceptional experience for residents, patients and the community.”

CareTrust also reported that, inclusive of this pending transaction, the reloaded investment pipeline sits at approximately $700 million of near-term, actionable opportunities, not including larger portfolios the company is reviewing.

CareTrust also reported that, including this pending deal, Reloaded’s investment pipeline has approximately $700 million in near-term viable opportunities, excluding the larger portfolio of investments the company is reviewing.

About CareTrust™

About CareTrust™

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.

CareTrust REIT, Inc. is a self-managed, 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 lease real estate, as well as a growing portfolio of prime carrier leases, CareTrust REIT is pursuing external and organic growth opportunities throughout the United States.

More information about CareTrust REIT is available at www.caretrustreit.com..

For more information about CareTrust REIT, please visit www.caretrustreit.com. .

About Ensign™

About Ensign™

The Ensign Group, Inc.’s independent subsidiaries provide a broad spectrum of skilled nursing and senior living services, physical, occupational and speech therapies and other rehabilitative and healthcare services at 323 healthcare facilities in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Tennessee, Texas, Utah, Washington and Wisconsin.

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As part of its investment strategy, Ensign will also acquire, lease and own healthcare real estate to service the post-acute care continuum through acquisition and investment opportunities in healthcare properties. Ensign’s new business venture operating subsidiaries also offer several other post-acute-related services, including mobile x-ray, emergency and non-emergency transportation services, long-term care pharmacy and other consulting services also across several states..

As part of its investment strategy, Ensign will also acquire, lease and own healthcare real estate, serving the post-acute care continuum through healthcare real estate acquisition and investment opportunities. Ensign’s new corporate operating subsidiary also provides several other post-acute related services, including mobile x-ray, emergency and non-emergency transportation services, long-term care pharmacy and other consulting services. .

About PACS™

About PACS™

PACS Group, Inc. is a holding company investing in post-acute healthcare facilities, professionals, and ancillary services. Founded in 2013, PACS Group is one of the largest post-acute platforms in the United States. Its independent subsidiaries operate 276 post-acute care and senior living facilities across 15 states, serving over 32,000 patients daily..

PACS Group, Inc. is a holding company that invests in post-acute healthcare facilities, professionals and ancillary services. Founded in 2013, PACS Group is one of the largest post-acute platforms in the United States. Its independent subsidiaries operate 276 acute care and senior living facilities in 15 states, serving more than 32,000 patients daily. .

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

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..

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 statements of historical fact and statements about the Company’s intentions, beliefs or expectations, including, without limitation, statements regarding the closing of transactions, lease arrangements for acquisition facilities and the Company’s investment channels. .

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.

Words such as “anticipate”, “believe”, “could”, “expect”, “estimate”, “intend”, “could”, “plan”, “seek”, “should”, “will”, “will” Words such as, and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements, although 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.

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 cause actual results to differ materially from those projected, projected or anticipated. Although the Company believes that the assumptions underlying these forward-looking statements are reasonable, these assumptions are not guarantees and the Company cannot guarantee that the transaction will be completed within the timeframe anticipated, or at all.

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, i.

Factors that may have a material adverse effect on the company’s operations and future prospects or may cause actual results to differ materially from expectations include, but are not limited to: (i) uncertainty about the timing of transaction closing and other anticipated investments; (ii) possible failure to satisfy or the possibility of waiving closing conditions; (iii) whether our lessees have the ability and willingness to perform and/or perform their obligations under the triple net lease agreements we enter into with them, including but not limited to their respective indemnification obligations, defense obligations and To indemnify us against claims, suits and liabilities of all kinds; (iv) the risk that we may have to incur additional impairment charges related to our assets for sale if we are unable to sell these assets at the prices we anticipate; (v) ) The impact of health care reform legislation, ie.

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.

In this press release, unless the context otherwise requires, “CTRE,” “CareTrust,” “CareTrust REIT” or the “Company” refers to CareTrust REIT, Inc. and its consolidated subsidiaries.