Business
CareTrust REIT, Inc. Announces $817 Million Recommended Cash Acquisition of Care REIT plc
SAN CLEMENTE, Calif., March 11, 2025--CareTrust REIT, Inc. (NYSE: CTRE) ("CareTrust") announced today that it has reached an agreement with the board of directors of Care REIT plc (LON: CRT) ("Care REIT") on the terms of a recommended cash offer to be made for the acquisition of Care REIT1 by CR United Bidco Ltd ("Bidco"), a wholly-owned subsidiary of CareTrust (the "Acquisition"). CareTrust has agreed to pay 108 pence in cash per ordinary share of Care REIT.
About this update from Caretrust Reit, Inc.
[{"type":"text","content":"Conference Call Scheduled for Tuesday, March 11, 2025 at 8:00 a.m. EDT","length":70,"tagName":"p"},{"type":"text","content":"SAN CLEMENTE, Calif., March 11, 2025--(BUSINESS WIRE)--CareTrust REIT, Inc. (NYSE: CTRE) ("CareTrust") announced today that it has reached an agreement with the board of directors of Care REIT plc (LON: CRT) ("Care REIT") on the terms of a recommended cash offer to be made for the acquisition of Care REIT1 by CR United Bidco Ltd ("Bidco"), a wholly-owned subsidiary of CareTrust (the "Acquisition"). CareTrust has agreed to pay 108 pence in cash per ordinary share of Care REIT.","length":520,"tagName":"p"},{"type":"text","content":"Based on the Sterling to Dollar exchange rate on March 10, 2025, the terms of the acquisition represent a Care REIT market capitalization of US$577 million and, together with the assumption of net debt of approximately US$240 million, represents a total purchase price of approximately US$817 million. The acquisition represents a 32.8% premium to Care REIT’s March 10, 2025 closing share price and a 28.1% premium to the volume-weighted average share price of Care REIT for the twelve-month period ended March 10, 2025.","length":520,"tagName":"p"},{"type":"text","content":"Care REIT is a UK-based real estate investment trust listed on the Main Market of the London Stock Exchange focused on investing in care homes throughout the UK. Care REIT has built an attractive and diversified real estate portfolio of 137 care homes, comprising approximately 7,500 operating beds leased to 15 operators across England, Scotland and Northern Ireland. All homes are subject to long-term, triple-net leases with a weighted average remaining lease term of 20 years and annual inflation-based rent escalators, most with a floor of 2% and a cap of 4%. Care REIT reported annual contractual rent of approximately US$66 million as of September 30, 2024, which represents an initial yield, based on CareTrust’s investment, of approximately 8.1%. Care REIT had also reported portfolio EBITDARM rent coverage of 2.2x for the trailing twelve month period ending on that same date.","length":887,"tagName":"p"},{"type":"text","content":"CareTrust has spent considerable time evaluating its entry into the UK market and sees attractive underlying dynamics underpinning an investment of th...