CareTrust REIT (CTRE) Acquires Texas-Located Nursing Facilities Portfolio for ~$96M
- Wall Street falls as investors ready for Trump's inauguration
- IBM (IBM) Tops Q4 EPS by 13c, FY17 EPS Guidance Beats Consensus
- American Express (AXP) Misses Q4 EPS by 7c, FY17 EPS Guidance Tops Views at Mid-Poinit
- Skyworks Solutions (SWKS) Tops Q1 EPS by 3c, Offers Q2 Guidance, Announces Buyback
- After-Hours Stock Movers 01/19: (SWKS) (QRVO) (NVAX) Higher; (AFMD) (SGYP) (IBM) Lower (more...)
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
CareTrust REIT, Inc. (Nasdaq: CTRE) announced that it has acquired three skilled nursing facilities and one skilled nursing campus in the greater Dallas-Fort Worth area. The purchase price was approximately $95.9 million, inclusive of transaction costs. In connection with the acquisition, CareTrust entered into a new tenant relationship with affiliates of Priority Management Group, LLC, which took over operations effective December 1, 2016.
“These well-regarded, well-located and recently-built or renovated facilities are an outstanding addition to our growing portfolio,” said Mark Lamb, CareTrust’s Director of Investments. “More importantly, we are very excited to be welcoming Priority Management Group, an exceptional operator with a very experienced and highly successful management team, to the CareTrust family,” he added.
Industry veteran Doug Boulware, Priority Management Group’s Chief Executive Officer, said, “We are excited to join forces with CareTrust because, as former operators themselves, they uniquely understood both our patient-centric mindset and our vision for disciplined future growth.” He added that Priority is looking forward to growing with CareTrust throughout Texas and the Southeast.
The portfolio, consisting of 540 skilled nursing beds and 28 assisted living units, is scheduled to generate first-year annual cash rent of $8.6 million, resulting in an initial cash yield of 8.9%. The new master lease carries an initial term of fifteen years, with two five-year renewal options and CPI-based rent escalators. CareTrust funded the acquisition from cash on hand, including the approximately $81 million of net proceeds from its November equity offering, and its $400 million unsecured revolving credit facility, which currently has a total outstanding balance of $115 million.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Wix.com (WIX) to Acquire flok
- Atmos Energy (ATO) Appoints Christopher Forsythe to CFO
- Intricon Corporation (IIN) Exercises Option to Acquire Remaining 80% Stake in Hearing Help Express
Create E-mail Alert Related CategoriesCorporate News, Management Comments, Mergers and Acquisitions
Related EntitiesDefinitive Agreement, Equity Offerings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!