CareTrust REIT Expands Senior Care Portfolio With $55 Million Investment In California

(RTTNews) - CareTrust REIT, Inc. (CTRE) has acquired two senior care facilities in California for approximately $55 million.

On April 1, 2025, the company, through a joint venture, acquired a skilled nursing and assisted living campus in Los Alamitos, comprising a 150-bed skilled nursing facility and a 140-bed residential care facility. CareTrust invested around $34 million in common and preferred equity, yielding an initial return of 9.7%. The facility has been leased to The Ensign Group (ENSG) under a 15-year NNN lease with extension options and annual CPI-based escalators.

Additionally, on March 1, 2025, CareTrust acquired a 160-bed residential care facility in Concord for approximately $20.6 million. The facility has been added to an existing master lease with affiliates of Kalesta Healthcare Group, generating an initial annual rent of $1.9 million with CPI-based escalators.

Chief Investment Officer James Callister emphasized the strategic value of expanding partnerships with The Ensign Group and Kalesta Healthcare, highlighting their operational expertise. Senior Vice President Joe Callan echoed this sentiment, underscoring the company's commitment to working with top-tier operators. Both acquisitions were funded using cash on hand.

Wednesday, CTRE closed at $28.55, up 0.25%, and is currently trading unchanged after hours on the NYSE.