CareTrust Enters UK With $840M Care REIT Buy, Adds 132 Homes And Projects Strong 2025 Growth

(RTTNews) - CareTrust REIT, Inc. (CTRE) Monday has completed its acquisition of UK-based Care REIT plc, marking its entry into the United Kingdom and its largest transaction to date.

The deal, initially announced on March 11, 2025, adds 132 care homes with roughly 7,500 beds and two NHS-leased healthcare facilities to CareTrust's portfolio.

These properties are leased across 14 operators under long-term, triple-net agreements, with a weighted average lease term of 20.2 years and inflation-adjusted rent increases.

CEO Dave Sedgwick described the acquisition as a milestone for the company, highlighting that it diversifies CareTrust's asset base across geography, payor sources, and operator types. He stated the transaction is expected to contribute $68.6 million in annual rental revenue and a 2.2x EBITDARM coverage ratio.

Sedgwick emphasized that this move is a growth catalyst rather than a one-time expansion, citing strong UK demographics and a fragmented care provider landscape as key growth enablers. He also confirmed that CareTrust remains committed to growing in its U.S. core markets alongside the UK expansion.

Chief Investment Officer James Callister noted that the company has built positive initial relationships with its new UK tenants and is already exploring further investments in the care home sector. He pointed out that CareTrust's financial strength, underwriting experience, and deal certainty position it as a valuable partner for operators aiming to scale.

CareTrust has a U.S. investment pipeline valued at around $500 million, excluding larger portfolios under review, and continues to pursue opportunities both domestically and internationally.

The $840.5 million acquisition includes $595.4 million in cash and $245.1 million in assumed debt. CareTrust plans to refinance the debt through available cash, a revolving credit facility draw, and a new $500 million unsecured term loan anticipated in Q2 2025. Until refinancing is complete, net debt-to-normalized EBITDA is projected to remain below 2.0x.

CTRE is currently trading at $28.81 or 1.18% lower on the NYSE.