CareTrust REIT Enters SHOP; Acquires Three Senior Living Communities
CareTrust REIT, Inc. (NYSE:CTRE) ("CareTrust" or the "Company") announced today its acquisition of three Texas senior living communities comprising 270 assisted living and memory care units for approximately $40 million. The acquisition was effective December 1, 2025, and marks the first investment of CareTrust's senior housing operating portfolio ("SHOP") platform.
The Company noted that this acquisition represents a meaningful milestone in CareTrust's continued growth and diversification, offering direct exposure to a senior housing sector with compelling fundamentals and allowing the Company to participate directly in property-level performance. The three communities, located in attractive Texas markets and approximately 86% occupied at the time of acquisition, will be managed by affiliates of Sinceri Senior Living. The acquisition was funded with cash on hand.
James Callister, CareTrust's Chief Investment Officer, commented, "Entering the SHOP space is an exciting and natural extension of our investment platform. We've long considered the risk-adjusted opportunity in senior housing operations, which offers attractive yields, the ability to drive organic growth through active asset management, and an operating dynamic that aligns closely with our roots as former operators. We look forward to working with Sinceri to deliver outstanding resident care and, in doing so, creating long-term value for stakeholders." Mr. Callister also noted that the Company expects the portfolio to deliver a going-in yield of approximately 7%.
Micah Gerber, Sinceri's President of Finance and Investments, commented on the transaction: "We are incredibly excited to partner with CareTrust on this important opportunity. Their deep understanding of the post-acute and seniors housing landscape, combined with their long-term investment mindset, makes them an ideal partner for our organization. We look forward to working together to enhance operations, elevate resident care, and position these communities for long-term success." Tri Tran, Senior Vice President of Investments at CareTrust, added, "We're thrilled to launch our first SHOP partnership and to do so with such a respected and experienced operator. We're grateful for their collaboration in making this transaction possible, and we look forward to working closely with their team to deliver an exceptional experience for residents and their families."
Dave Sedgwick, CareTrust's President and Chief Executive Officer, said, "The launch of our SHOP platform establishes CareTrust's third growth engine alongside our US skilled nursing and UK care home investment platforms. With this addition, we now have three complementary avenues to grow, diversify, and compound shareholder value. The opportunity set within the senior housing sector is significant, and with our balance sheet strength and operating expertise, we're well-positioned to capitalize on that opportunity in the years ahead."
Looking ahead, Mr. Callister emphasized that CareTrust will continue to evaluate additional acquisition opportunities in the US as well as the UK. The Company noted that its balance sheet strength and liquidity, emphasis on quality operators and local perspective position it to successfully support operators as they deliver essential care across a variety of healthcare and senior living settings.
About CareTrust™
CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, senior housing and other healthcare-related properties. With a portfolio of long-term net-leased properties spanning the United States and United Kingdom, and a growing portfolio of quality operators leasing them, CareTrust is pursuing both external and organic growth opportunities across the US and internationally. More information about CareTrust REIT is available at www.caretrustreit.com.
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