CareTrust REIT, Inc. is wasting no time on offense in 2025 and has acquired a nursing facilities portfolio in the Mid-Atlantic region for roughly $142 million.
The deal applies to 532 licensed beds across six properties, with the exact locations in the region not listed. Currently, a tenant under a long-term triple net lease operates all of the beds, with options for renewals and rent hikes based on inflation.
The transaction was effective on January 1, according to CareTrust.
The move by CareTrust follows a busy last 24 months. The REIT has closed roughly $3.3 billion in investments during that span, including about $1.8 billion in 2025. In November, the California-based firm announced the acquisition of 13 skilled nursing facilities across the Mid-Atlantic and Southeast for about $437 million.
“We’re excited to begin 2026 with an off-market transaction that checks all the right boxes for us,” said James Callister, CareTrust’s chief investment officer.
“The quality of the portfolio, attractive coverage metrics, and the opportunity to transact with a strong new tenant with a proven operating and credit profile make this a compelling investment and a great example of the disciplined, relationship-driven growth we continue to pursue.” Mr. Callister noted the Company expects the portfolio to generate a 9% stabilized yield.
Meanwhile, going forward, healthcare faces uncertainties with the looming Medicaid cuts set to take effect from the One Big Beautiful Bill Act. During the 12 months through September, just $16.27 billion in trades have been recorded, well below the $24 billion posted between 2016 and 2024. The hope is that interest rate cuts will spark activity in the fourth quarter, but headwinds remain in the future.
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