After quietly acquiring a North Texas portfolio in December, California-based healthcare REIT CareTrust's newly released quarterly earnings are strong. The company’s quarterly revenue of $28.2M exceeded analyst estimates by about $1M and was up 25% from Q1 2016. In 2016, total sales were just less than $24M.
Just before 2016 ended, CareTrust purchased a four-property portfolio in DFW for $96M that consisted of three skilled nursing facilities and one nursing campus. CareTrust named Priority Management Group to handle operations of the facilities.
The portfolio includes 540 skilled nursing beds and 28 assisted living units. In its first year, it is expected to generate $8.6M in rent — an initial cash yield of 8.9%.
The 15-year lease has two five-year renewal options and CPI-based rent escalators. CareTrust funded the $96M acquisition from cash on hand.
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