CareTrust REIT acquires UK care homes for £1.1 billion

Dana Point, Calif. - CareTrust REIT has acquired 45 care homes in the UK for around £1.1 billion from LNT Care Developments Holdings Limited. The deal, announced on Tuesday, features staggered closings, with the first transaction comprising 24 recently built homes for approximately £576 million. The remaining 21 homes, still under development, will be acquired for roughly £504 million upon completion and regulatory approval, expected in 2027.

These properties will be leased to Crystal Care, LNT's operating company, under triple-net leases with fixed annual escalators during an initial phase. CareTrust and LNT plan to transition all 45 homes to a RIDEA structure between years two and four post-completion, with the first transfer anticipated by the fourth quarter of 2027.

The transaction is projected to be beneficial for CareTrust's normalized funds from operations per share during the lease-up phase and will yield an all-in pre-tax rate in the mid- to high-7% range in the SHOP phase's first year. LNT has given CareTrust an option to purchase the entire LNT platform in the future. Additionally, CareTrust has raised capital by selling other investments, including three UK care homes for about $34 million and various preferred equity and debt investments totaling $55 million.

The company has also increased its full-year 2026 earnings guidance, now anticipating net income of $1.54 to $1.57 per share and normalized FFO of $2.06 to $2.09 per share. Financial advisors J.P. Morgan and legal advisor Jones Day assisted with the transaction.