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CareTrust REIT Is Exploring Options Including a Sale

The REIT, which operates skilled nursing facilities and seniors housing is working with an adviser to solicit interest from potential suitors.

(Bloomberg)—CareTrust REIT Inc., a real estate investment trust which owns skilled-nursing facilities, senior housing and other health-care properties, is exploring strategic options including a sale, according to people with knowledge of the matter.

The San Clemente, California-based REIT is working with an adviser to solicit interest from potential suitors including rivals and real estate-focused investment firms, said the people, who requested anonymity discussing talks that are private. No final decision has been made and CareTrust could opt to remain publicly traded.

A CareTrust representative declined to comment.

CareTrust is led by Chairman and Chief Executive Officer Greg Stapley and President Dave Sedgwick. When announcing third-quarter results last month, Stapley said that a shortage of qualified workers and rising labor costs present a “growing challenge” and that several of the REIT’s tenants have turned patients away due to a lack of necessary staff to provide care.

The REIT’s shares gained 5.7% to $21.91 at 3:14 p.m. in New York. They have declined about 1.4% this year, compared with the MSCI U.S. REIT index’s roughly 32% advance. Its market capitalization is about $2.1 billion.

Earlier this year, DigitalBridge Group Inc. agreed to sell its wellness portfolio, which included senior housing and skilled-nursing facilities, to Highgate Capital Investments and Aurora Health Network.

© 2021 Bloomberg L.P.

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