Home Nurse Facilities CareTrust REIT Acquires Two Skilled Nursing Facilities in Austin

CareTrust REIT Acquires Two Skilled Nursing Facilities in Austin


SAN CLEMENTE, Calif., Aug. 02, 2021 (GLOBE NEWSWIRE) — CareTrust REIT, Inc. CENTER today announced the acquisition of two skilled nursing facilities in the Austin, Texas metro area. The 119-bed Sedona Trace Health and Wellness Center in Austin and the 122-bed Cedar Pointe Health and Wellness Center in Cedar Park will be operated by subsidiaries of The Ensign Group, Inc. ENSGwhich resumed operations as of August 1, 2021.

“We are excited to grow our relationship with Ensign, not only because we enjoy over 3.0x EBITDAR rental coverage with them, but because we have seen firsthand their ability to create an unparalleled culture of care. patients and quality outcomes and we are thrilled to see these facilities flourish under their leadership,” said CareTrust President and COO Dave Sedgwick.

Barry Port, President and CEO of Ensign, added, “We are once again delighted with our growing relationship with CareTrust and are pleased to announce that as part of this transaction, CareTrust has extended the applicable lease term of ten years. We continue to look forward to many more years of working with CareTrust on these and future opportunities.”

The two assets, which were both built in 2017, were purchased from the original developer in an off-market transaction for approximately $32.5 million, including transaction fees. At closing, both properties were added to one of eight existing split-term master lease pools between CareTrust and Ensign. Ensign made an initial rent reduction payment of $5.0 million at closing, and the annual cash rent under the head lease was increased by approximately $2.2 million, giving CareTrust a cash-on-cash return of approximately 8.0% for the first year. The original term of the amended head lease was concurrently extended by ten years, with an original remaining term of approximately 17 years, with three five-year renewal options and annual CPI-based rent escalations. The acquisition was financed using CareTrust’s $600 million unsecured revolving credit facility.

About CareTrust™

CareTrust REIT, Inc. is a self-managed, publicly traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, senior housing and other healthcare related properties . With a national portfolio of long-term net leased properties and a growing portfolio of quality operators who lease them, CareTrust REIT seeks external and organic growth opportunities across the United States. More information about CareTrust REIT is available at www.caretrustreit.com.

About Ensign™

Independent operating subsidiaries of Ensign Group, Inc. provide a wide range of skilled nursing and senior living services, physical therapy, occupational therapy and speech therapy and other rehabilitation and care services across 242 healthcare facilities in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin. More information about Ensign is available at http://www.ensigngroup.net.

Contact information

CareTrust REIT, Inc.
(949) 542-3130