CareTrust REIT has acquired a large portfolio of skilled nursing facilities in the U.S. Southwest for $400 million, pushing its 2026 year-to-date investment activity to approximately $1.9 billion while replenishing its near-term investment pipeline to roughly $600 million.
The transaction became effective September 1 and includes 2,622 licensed skilled nursing beds. The portfolio is triple-net leased to its existing operator under a long-term agreement featuring annual inflation-based rent escalators and multiple renewal options.
CareTrust completed the off-market acquisition through a joint venture structure in which the REIT invested approximately $380 million.
The company funded the investment with cash on hand and proceeds from settled equity forward contracts. Following the transaction, CareTrust reported $439 million of expected net proceeds from unsettled forward equity contracts, $612 million of remaining capacity under its at-the-market equity program and $725 million available under its revolving credit facility.
The transaction adds another large-scale skilled nursing investment to CareTrust’s portfolio in markets where both the REIT and the operator already have established operations.
Management expects the acquired portfolio to generate a stabilized yield of approximately 8.6%.
CareTrust has now completed approximately $710 million of investments during the third quarter through the date of the announcement.
That figure also includes a smaller care home acquisition completed in the United Kingdom in August.
For all of 2026 through the announcement, CareTrust’s investment total has reached approximately $1.9 billion across about two dozen transactions, generating a blended stabilized yield of approximately 8.7%.
The pace of deployment has already moved CareTrust past its prior full-year record for capital investment with more than one quarter of 2026 still remaining.
CareTrust President and CEO Dave Sedgwick said the company’s investment platform has been built to support multiple transactions of this scale during a single year while continuing to pursue smaller individual acquisitions.
The company is expanding through three primary growth channels, including skilled nursing investments, senior housing operating portfolio opportunities and other healthcare real estate transactions.
Following the $400 million acquisition, CareTrust said its near-term actionable investment pipeline stands at approximately $600 million.
Roughly half of that pipeline is expected to involve the company’s senior housing operating portfolio, or SHOP, platform.
Management also noted that the $600 million figure excludes several larger portfolio transactions that CareTrust is actively pursuing, potentially creating additional investment opportunities beyond the currently identified pipeline.
The large acquisition demonstrates how significantly CareTrust’s investment capacity has increased.
Management noted that a transaction of this size would have represented the company’s primary annual investment event only a few years ago. CareTrust now expects its capital structure and operating platform to support several large transactions alongside smaller acquisitions.
The company’s balance sheet provides further capacity to continue deploying capital.
Between unsettled equity forwards, its remaining ATM capacity and revolving credit availability, CareTrust retains substantial liquidity following the transaction.
That flexibility could be important as the company evaluates its $600 million pipeline and other large portfolio opportunities that are not yet included in that figure.
CareTrust’s business focuses on owning, acquiring, developing and leasing skilled nursing, senior housing and other healthcare properties.
Its portfolio includes long-term net-leased assets in both the U.S. and the U.K., with the company pursuing additional growth through acquisitions and organic investment opportunities.
The $400 million skilled nursing transaction adds scale to that strategy while providing another long-duration lease relationship with an operator already familiar to CareTrust.
With $1.9 billion deployed so far in 2026 and another approximately $600 million of actionable opportunities under consideration, CareTrust is positioned for additional investment activity through the remainder of the year and into 2027.
KEY QUOTES:
“This is exactly the kind of meaningful transaction we’ve built our platform to facilitate: a large, high-quality portfolio in core markets, an off-market process, and with an operator we know well and have tremendous confidence in.”
Joe Callan, Senior Vice President of Investments at CareTrust REIT
“This one is right down the middle of the fairway for us and took careful execution at every stage from inception to closing. As we continue to grow across all three of our growth engines, activity in skilled nursing remains robust, and this transaction is a great example of why we remain so constructive on the space.”
James Callister, Chief Investment Officer of CareTrust REIT
“A few years ago, a transaction of this size and nature would have been the headline of our year. We’ve spent the last several years building the capacity to execute on several deals of this size annually, on top of the singles and doubles we love closing. I’m proud of the team for stepping up to build a platform for continued growth, which pushes us past our prior full-year record for capital deployment with more than a quarter of the year still to play.”
Dave Sedgwick, President and CEO of CareTrust REIT
