CareTrust REIT, Inc. (NYSE: CTRE), a healthcare real estate
investment trust specializing in skilled nursing and assisted
living real estate investments, is proud to announce the
celebration of its 10-year anniversary. In separate press releases,
on this significant milestone, CareTrust REIT has announced two
strategic transactions totaling approximately $180 million, further
proving its commitment to growth and excellence in the healthcare
sector.
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Portfolio Star Ratings vs. National
Average (Source: Center for Medicare and Medicaid Services)
A Decade of Commitment to Quality Care and Shareholder
Value
Over the past ten years, CareTrust REIT has grown from a
spin-off of assets leased to a single tenant to a trusted capital
partner to dozens and a high performer in the healthcare real
estate market. Dave Sedgwick, CareTrust REIT Chief Executive
Officer, said, “Our results are a testament to the unwavering
dedication and hard work of our board and team, both past and
present. We owe our success to the outstanding operators leasing
our properties. Their expertise and commitment to providing
high-quality care to their patients and employees have been
instrumental in our ability to deliver strong performance and value
to our loyal shareholders.”
With respect to the strength of the CareTrust portfolio and
corresponding shareholder benchmarks, Mr. Sedgwick said, “A decade
ago, our founding President and Chief Executive Officer Greg
Stapley put a team together who had deep operating understanding
and experience because he understood that the value of skilled
nursing and seniors housing real estate is incredibly sensitive to
the capabilities of the operators. We cannot thank Greg enough for
his vision and for the foundation he laid at CareTrust.”
Mr. Sedgwick continued, “Building a REIT ‘by operators, for
operators’ informs who we lease to, how we underwrite, and how we
asset manage. When I personally ran facilities before CareTrust, I
knew intimately that quality care, of both your patients and
employees, precedes sustainable financial stability. Because our
tenants have complete control over the operations of our
properties, leasing to operators who excel at both their ‘mission’
and a sustainable ‘margin’ is vital.”
CareTrust REIT's dedication to delivering value to shareholders
is reflected in its impressive financial achievements over the past
decade, including a total shareholder return of 247% since
inception.
Looking Forward
Mr. Sedgwick commented on the multi-decade demographic wave of
seniors that is now starting to break. He said, “It is incredible
to realize that the number of Americans who are 85 years and older
will almost double in just 10 years. When you couple that projected
growth in demand with the trend of shrinking supply of facilities,
the term ‘tsunami,’ seems appropriate. CareTrust is exceptionally
positioned to ride this wave.”
In speaking about the near-term investment outlook, James
Callister, Chief Investment Officer, said, “The investment
environment continues to be very healthy for us. We have growing
relationships with some of the best operators in the country.
Today, we are quoting a reloaded pipeline of approximately $460
million.” Bill Wagner, Chief Financial Officer, said, “When you
look at where our cost of equity is compared to our cost of debt
today and you have visibility into a historic pace and pipeline of
investments, our financing strategy is self-evident. We have issued
2.5 million shares under our ATM program quarter-to-date at a gross
price of $24.90 for gross proceeds of $62.3 million bringing the
total outstanding share count to 144.6 million shares. Today’s cash
on hand is approximately $230 million. Together with full
availability under our revolver, we have tremendous flexibility to
fund growth for the foreseeable future.”
Mr. Sedgwick, concluded, “As we celebrate this 10-year
milestone, I extend my deepest gratitude to our team and operators
for their invaluable contributions to our success. We also thank
our loyal shareholders, bankers, brokers, and other friends of
CareTrust for their continued support and confidence in our mission
to create long-term value by matching great operators with great
opportunities. We are just getting started.”
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, 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.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995:
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements include all statements that are
not historical statements of fact and statements regarding the
Company’s intent, belief or expectations, including, but not
limited to, statements regarding the following: industry and
demographic conditions, the investment environment, the Company’s
investment pipeline, and financing strategy.
Words such as “anticipate,” “believe,” “could,” “expect,”
“estimate,” “intend,” “may,” “plan,” “seek,” “should,” “will,”
“would,” and similar expressions, or the negative of these terms,
are intended to identify such forward-looking statements, though
not all forward-looking statements contain these identifying words.
The Company’s forward-looking statements are based on management’s
current expectations and beliefs, and are subject to a number of
risks and uncertainties that could lead to actual results differing
materially from those projected, forecasted or expected. Although
the Company believes that the assumptions underlying these
forward-looking statements are reasonable, they are not guarantees
and the Company can give no assurance that its expectations will be
attained. Factors which could have a material adverse effect on the
Company’s operations and future prospects or which could cause
actual results to differ materially from expectations include, but
are not limited to: (i) the ability and willingness of our tenants
to meet and/or perform their obligations under the triple-net
leases we have entered into with them, including without
limitation, their respective obligations to indemnify, defend and
hold us harmless from and against various claims, litigation and
liabilities; (ii) the risk that we may have to incur additional
impairment charges related to our assets held for sale if we are
unable to sell such assets at the prices we expect; (iii) the
impact of healthcare reform legislation, including minimum staffing
level requirements, on the operating results and financial
conditions of our tenants; (iv) the ability of our tenants to
comply with applicable laws, rules and regulations in the operation
of the properties we lease to them; (v) the ability and willingness
of our tenants to renew their leases with us upon their expiration,
and the ability to reposition our properties on the same or better
terms in the event of nonrenewal or in the event we replace an
existing tenant, as well as any obligations, including
indemnification obligations, we may incur in connection with the
replacement of an existing tenant; (vi) the availability of and the
ability to identify (a) tenants who meet our credit and operating
standards, and (b) suitable acquisition opportunities and the
ability to acquire and lease the respective properties to such
tenants on favorable terms; (vii) the ability to generate
sufficient cash flows to service our outstanding indebtedness;
(viii) access to debt and equity capital markets; (ix) fluctuating
interest rates; (x) the impact of public health crises, including
significant COVID-19 outbreaks as well as other pandemics or
epidemics; (xi) the ability to retain our key management personnel;
(xii) the ability to maintain our status as a real estate
investment trust (“REIT”); (xiii) changes in the U.S. tax law and
other state, federal or local laws, whether or not specific to
REITs; (xiv) other risks inherent in the real estate business,
including potential liability relating to environmental matters and
illiquidity of real estate investments; and (xv) any additional
factors included in our Annual Report on Form 10-K for the year
ended December 31, 2023 and our Quarterly Report on Form 10-Q for
the quarter ended March 31, 2024, including in the section entitled
“Risk Factors” in Item 1A of such reports, as such risk factors may
be amended, supplemented or superseded from time to time by other
reports we file with the SEC.
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CareTrust REIT, Inc. (949) 542-3130 ir@caretrustreit.com
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