NYSE-listed CareTrust REIT, which entered the UK market with the acquisition of CARE REIT in March, has now acquired two more UK care homes for $27m (€23m).
CareTrust said the 265-bed portfolio was funded using cash on hand, with a “stabilised contractual yield on the company’s investment in line with prior investment activity”.
The homes are leased to an existing operator under long-term triple-net leases that include extension options and annual escalators, the company said.
James Callister, CareTrust’s CIO, said: “We are pleased to announce our first follow-on investment in the UK since the acquisition of Care REIT earlier this year.
“This acquisition is a strong addition to our portfolio and further evidence that our pipeline in the UK continues to expand. We’re excited to keep growing our presence there alongside experienced operators.”
Callister said CareTrust will continue to evaluate additional acquisition opportunities in the UK as well as in the US.
Martin Robb, SVP of investments, said: “The UK care-home market continues to present compelling opportunities for disciplined investors. This transaction underscores CareTrust’s ability to identify and execute on high-quality opportunities in partnership with operators who share our long-term vision.”
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