CareTrust REIT, Inc. (NYSE: CTRE) announced the completion of a strategic acquisition of 24 care homes in the United Kingdom on October 1, 2026. The transaction was executed by CareTrust UK Limited, a subsidiary of the company, through the purchase of the entire issued share capital of care home property companies from LNT Care Developments Holdings Limited.
The initial closing involved 23 completed care homes and one additional property that remains subject to regulatory approval expected in October 2026. The aggregate purchase price for these 24 properties was approximately £576 million, or approximately $764 million, based on an exchange rate of 1.327 on September 28, 2026.
The acquired properties are, or will be upon closing, leased to subsidiaries of Crystal Care Homes Holdco Limited, LNT’s operating portfolio company, under triple-net leases. These leases include fixed annual escalators and renewal options. LNT has guaranteed the payment obligations under these leases.
As part of the agreement, CareTrust has the option to acquire an additional 21 care homes currently under development. The purchase price for these In-Development Properties is approximately £504 million (approximately $669 million). These properties are expected to be acquired upon completion of development and receipt of regulatory approvals on a rolling basis through December 31, 2027.
The total value of the initial acquisition and the potential future purchase of the development properties is approximately £1.08 billion (approximately $1.43 billion). Following an initial lease-up phase, the company intends to transition the properties into a Senior Housing Operating Portfolio (SHOP) structure under the RIDEA Act.
In connection with the transaction, LNT has granted the Operating Partnership an option to acquire the entire share capital of LNT through September 2027. The company also updated its full-year 2026 guidance, projecting net income of approximately $1.54 to $1.57 per share, Normalized FFO of approximately $2.06 to $2.09 per share, and Normalized FAD of approximately $2.02 to $2.05 per share.
