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CareTrust Announces Strategic SHOP Pipeline Agreement with LNT Care Developments to Acquire 45 New UK Care Homes for £1.1 Billion

CTRE
  • CareTrust REIT entered a definitive agreement to acquire 45 new care homes from LNT Care Developments Holdings Limited for approximately £1.1 billion ($1.47 billion at the time of announcement).
  • The first closing occurred on October 1, 2026, involving 24 completed homes for £576 million, funded via forward equity settlements & a revolving credit facility draw.
  • The remaining 21 homes are under development & will be acquired for £504 million upon completion & regulatory approvals anticipated throughout 2027.
  • All properties are leased to Crystal Care subsidiaries under triple-net leases with fixed annual escalators & renewal options during an initial lease-up phase.
  • A planned transition to a RIDEA structure (SHOP Phase) is expected between years two & four post-completion, with the first conversion anticipated by Q4 2027.
  • The transaction aims to generate all-in yields in the mid- to high-7% range on a pre-tax basis during the first year of the SHOP Phase.
  • CareTrust received an option to acquire the entire LNT platform in the future & continues to explore further collaboration structures.
  • Additional investments totaling $488 million were closed since the Q2 2026 report, including three UK care homes & skilled nursing facility investments with a blended stabilized yield of 8.8%.
  • Year-to-date investment activity reached a record $2.7 billion, with a near-term actionable pipeline of approximately $525 million excluding the remaining 21 LNT homes.
  • Full-year 2026 guidance was revised upward to project net income of $1.54-$1.57 per share, Normalized FFO of $2.06-$2.09 per share, & Normalized FAD of $2.02-$2.05 per share.
  • The revised guidance assumes no new investments, loans, or debt issuances beyond those already announced, 2.5% inflation-based rent escalators, & a stable GBP:USD exchange rate.