CareTrust REIT (CTRE) Reports In-Line Q2 EPS; Announces 14-Property Portfolio Acquisition
CareTrust REIT (NASDAQ: CTRE) reported Q2 EPS of $0.25, in-line with the analyst estimate of $0.25. Revenue for the quarter came in at $17.4 million versus the consensus estimate of $16.46 million.
Announced Pending Acquisitions: Liberty Nursing Centers Portfolio
The Company also announced today that it has a 14-property skilled nursing and seniors housing portfolio under contract, with diligence on the portfolio substantially completed. Currently owned and operated by Ohio-based Liberty Nursing Centers, the portfolio includes 1,102 operating skilled nursing beds and 156 assisted and independent living units. The approximately $175 million transaction is slated to close on October 1, 2015, pending certain regulatory approvals. Mr. Wagner indicated that CareTrust intends to fund all or part of the portfolio acquisition with proceeds of an equity offering.
In connection with the Liberty acquisition, CareTrust will enter into a triple-net master lease for the portfolio with Indiana-based Pristine Senior Living, LLC, which is expected to take over operations effective October 1, 2015. The Pristine master lease will carry an initial term of 15 years with two five-year renewal options and CPI-based rent escalators, with a zero floor and a 3.0% cap. In connection with the Liberty transaction, the seller has also agreed to transfer two additional Ohio skilled nursing facilities, both of which are leased from unrelated third parties, to Pristine. The Liberty portfolio will generate initial annual rental revenue to CareTrust of $17.2 million.
While no specifics were disclosed, Management reported that it has additional acquisition opportunities, either under contract or bid out under competitive term sheets, which collectively represent over $950 million in potential transactions for 2015 and 2016. Management affirmed that the Company is actively working with a variety of owners, operators and brokers to source additional opportunities to extend the CareTrust footprint nationwide.
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