CareTrust agrees £1.1 billion UK care deal

• CareTrust agreed to acquire 45 U.K. care homes from LNT for about £1.1 billion, with 24 properties acquired in the first closing.
• The first tranche cost about £576 million, or $764 million, while CareTrust also raised its full-year 2026 earnings guidance.
• CareTrust said the transaction creates a pathway to move the properties into its senior housing operating portfolio after their initial lease-up periods.

CareTrust REIT (NYSE:CTRE) agreed to acquire 45 U.K. care homes from LNT for about £1.1 billion, including 24 properties acquired for approximately £576 million in the first closing.

The initial 24 homes were constructed within the past two years, while CareTrust plans to acquire another 21 properties for approximately £504 million as construction and regulatory approvals are completed throughout 2027.

CareTrust funded the £576 million first closing using forward-equity proceeds and its revolving credit facility, while the company said the first SHOP conversion is anticipated by the fourth quarter of 2027.

CareTrust now projects 2026 normalized FFO of $2.06–$2.09 per share and normalized FAD of $2.02–$2.05 per share; before the announcement, CareTrust shares closed October 1 down 1.83% at $35.91.

The homes will initially be leased to subsidiaries of LNT's Crystal Care under triple-net agreements before CareTrust and LNT intend to move all 45 properties into a RIDEA structure forming part of CareTrust's SHOP portfolio.

CareTrust said its other recent transactions have lifted year-to-date investment activity to approximately $2.7 billion, while its near-term investment pipeline stands at about $525 million excluding the remaining 21 LNT homes.