Dana Point, California — CareTrust REIT has closed roughly $628 million in new investments, with a portfolio of 15 California skilled nursing facilities serving as the centerpiece of the deal spree. The transactions push the real estate investment trust’s total 2026 investment activity to nearly $1 billion — and the company says it’s not done yet.
The California portfolio, acquired through a series of related off-market sale-leaseback transactions with a California-based skilled nursing operator, cost approximately $380 million and includes about 1,700 beds. It marks the start of a new operator relationship for CareTrust. The properties are triple-net leased back to affiliates of the seller under long-term agreements with annual rent escalators and purchase options beginning in the ninth year of the term.
Alongside the California deal, CareTrust also originated two loans to affiliates of the same seller. The first, a $55 million loan, carries a five-year fully amortizing term at 8.7%. The second, at $108 million, is interest-only at 9.5% and is expected to be repaid within the year. Both are secured by portfolios of skilled nursing facilities across California and Washington.
The company also picked up a 124-bed skilled nursing facility in Wyoming for $20 million, triple-net leased to an existing CareTrust operator.
Expanding Beyond U.S. Borders
CareTrust didn’t stop at domestic deals. The REIT acquired four care homes in the United Kingdom — specializing in high-acuity mental health and specialist care — for roughly $56.6 million. A fifth home is set to close in a second tranche pending regulatory approvals, at approximately $12.2 million. The UK properties are triple-net leased to a new CareTrust tenant under long-term agreements with inflation-based rent escalators.
CareTrust first entered the UK market in March 2025 with an $817 million acquisition. The latest deals deepen that foothold.
The Pipeline Keeps Growing
CEO Dave Sedgwick called the pace “exceptional” and said the company’s investment pipeline stands at roughly $450 million in near-term, actionable opportunities — not counting larger portfolio transactions still under evaluation.
“Powered by talented teammates throughout CareTrust, a massive opportunity set across skilled nursing, UK care homes and our budding senior housing operating portfolio, and the balance sheet to match the growth, our investment flywheel keeps turning,” Sedgwick said.
Senior Vice President of Investments Joe Callan credited the deal flow to long-standing operator relationships. “From large off-market sale-leasebacks to targeted loan investments that strengthen existing partnerships to bread-and-butter type single asset acquisitions, our platform is sourcing high-quality, actionable transactions across every one of our growth engines,” he said.
The activity comes as deal volume across the skilled nursing sector has been running well above historical norms, with investors continuing to bet on long-term demographic tailwinds even as broader economic uncertainty lingers.
CareTrust’s blended yield across its 2026 transactions stands at approximately 8.8%.
