CareTrust REIT Funds Mortgage Financing on Southeast SNFs; 96% of Year-to-Date $215.4 Million Investments Funded with Equity
July 20 2023 - 6:01AM
Business Wire
CareTrust REIT, Inc. (NYSE:CTRE) announced today that it has
funded a $15.7 million mortgage loan on a 2-asset, 115-bed skilled
nursing portfolio located in the State of Florida. The borrowers
under the loan are affiliates of Elevation Group, LLC, a
Florida-based skilled nursing operator led by industry veterans Ken
and Dan Funk. Elevation is an existing tenant of CareTrust.
Proceeds of the loan were used to refinance Elevation’s existing
loan on its Athens Post Acute facility, as well as to partially
fund Elevation’s acquisition of Blue Lake Post Acute, both located
in Deland, Florida. Prior to loan closing, Elevation had been
operating the Blue Lake facility under a lease agreement with a
third-party landlord. Elevation elected to exercise its purchase
option and acquire the facility. The loan is secured by a first
priority lien on the borrowers’ ownership interest in the real
estate and carries a five-year maturity with one, 5-year extension
and an annual interest rate of 9.00%. During the extension term,
the annual interest rate escalates by .25% each year.
“Elevation has done a great job of operating these two
facilities and we are excited to be a part of their continuing
growth and to expand our relationship with them through this loan,”
said James Callister, CareTrust’s Chief Investment Officer. Mr.
Callister went on to say that, “Extending this loan to Elevation
further promotes our strategy of providing loans as a means to
strengthen relationships with select operators in an effort to
foster future growth and investment opportunities.”
Ken Funk, Elevation Group’s CEO, stated that “CareTrust and
Elevation work well together and we are thrilled to have worked
together to close this loan. This transaction will help facilitate
future growth opportunities with CareTrust and the closing process
has reinforced our positive, strategic working relationship.”
CareTrust currently leases to Elevation one skilled nursing
facility in Georgia.
The investments were funded using proceeds from the Company’s
$600 million unsecured revolving credit facility as well as cash on
hand. As of July 18, 2023, the Company had $310 million outstanding
on the unsecured revolving credit facility. However, during the
second quarter and through July 13, 2023, the Company utilized the
forward provisions under its at-the-market (ATM) equity offering
program and expects to fully physically settle shares sold under
equity forward contracts on one or more settlement dates prior to
final settlement in the second quarter of 2024. Expected net
proceeds of approximately $206 million represent approximately 96%
of year-to-date investments completed of $215.4 million.
About:
CareTrust REIT, Inc. is a self-administered, publicly-traded
real estate investment trust engaged in the ownership, acquisition,
development and leasing of skilled nursing, seniors housing and
other healthcare-related properties. With a nationwide portfolio of
long-term net-leased properties, and a growing portfolio of quality
operators leasing them, CareTrust REIT is pursuing both external
and organic growth opportunities across the United States. More
information about CareTrust REIT is available at
www.caretrustreit.com.
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CareTrust REIT, Inc. (949) 542-3130 ir@caretrustreit.com
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