CareTrust REIT to Acquire 45 UK Care Homes

By Hao Liu • Friday, October 02 11:07 • Permanent Link

CareTrust REIT said it has agreed to buy 45 new UK care homes from LNT Care Developments for about £1.1 billion, with the first 24 homes closing on Oct. 1 for roughly £576 million and the remaining 21 expected to close in rolling transactions through 2027 for about £504 million.

The first closing covered one completed home and 23 additional homes that were built within the past two years. CareTrust said the initial purchase was funded with proceeds from settled forward equity agreements and a draw on its revolving credit facility.

The 45 homes are, or will be, leased to subsidiaries of Crystal Care under triple-net leases with fixed annual escalators and renewal options. CareTrust said the homes will later transition into a ridea structure, with the first transition expected by the fourth quarter of 2027 and the broader transition expected to begin between two and four years after each home’s completion.

CareTrust said the transaction is expected to produce an all-in yield in the mid* to high-7% range on a pre-tax basis in the first year of the shop phase. It also said the deal should be accretive to normalized funds from operations per share during the lease-up phase.

Beyond the LNT deal, CareTrust said it has closed about $488 million of other investments since its second-quarter 2026 earnings report. That includes three UK care homes for about $34 million and $55 million of preferred equity and debt investments backed by skilled nursing portfolios. The company also pointed to a previously announced acquisition of 20 skilled nursing facilities in the Southwest for about $380 million, representing CareTrust’s share.

CareTrust said the blended, stabilized yield on the investments outside the LNT transaction is 8.8%.

The company said its total investment activity in the third quarter and since has reached about $1.6 billion, while year-to-date investment volume has hit a record $2.7 billion.

CareTrust also raised its full-year 2026 outlook. It now expects net income attributable to CareTrust of $1.54 to $1.57 per share, normalized FFO of $2.06 to $2.09 per share, and normalized FAD of $2.02 to $2.05 per share. Following these announcements, the company's shares moved -1.83%, and are now trading at a price of $35.91. Check out the company's full 8-K submission here.

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