CareTrust Reports Active Investment Quarter, Lingering Senior Living Pricing Gap

CareTrust REIT (NYSE: CTRE) had an active investment period in the second quarter of 2023, particularly on the skilled nursing side — but the company is still seeing a wider than desired bid-ask spread in senior living pricing, according to management.

On the whole, the real estate investment trust (REIT) reported $173 million of new investments and six new operator relationships in the second quarter of 2023, representing an “exciting and busy quarter” for the company’s acquisition team, according to Chief Investment Officer James Callister.

Among the 12 assets the REIT acquired in the second quarter of 2023, four were assisted living communities, another was skilled nursing and memory care, and the rest were skilled nursing facilities.


The company’s $150 million investment pipeline is now mostly aimed at skilled nursing. The reason why is that senior housing deals still remain elusive, with “a gap between seller and buyer pricing expectations,” Callister said.

“Much of the seniors housing deal flow coming across our desk involves increasing numbers of facilities in some stage of operational distress as sellers face … variable interest rate loans and a maturity date risk,” he added.

Callister added that the company expects to keep its focus on external growth opportunities and chances to enhance relationships with the broker community.


“But we have also seen promising results from our decision last year to direct additional resources and manpower for sourcing off market opportunities and towards developing new operator relationships and geographically strategic areas,” he said.

CareTrust REIT’s share value fell 1.11% on Friday, ending the day at $20.46

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