CareTrust REIT Prices Upsized Public Offering of 20M Shares at $32.00/shr

CareTrust REIT Inc. priced an upsized public offering of 20 million shares at $32.00 per share, with an additional 3 million shares available for purchase by underwriters. The company intends to use the proceeds to fund new investments and repay debt. The offering is expected to close on August 14, 2025.

CareTrust REIT Inc. (NYSE: CTRE) has priced an upsized public offering of 20 million shares at $32.00 per share, with an additional 3 million shares available for purchase by underwriters. The company intends to use the proceeds from this offering to fund new investments and repay debt. The offering is expected to close on August 14, 2025.

The company has granted the underwriters a 30-day option to purchase up to an additional 3 million shares of common stock. The proceeds from this offering will be contributed to CTR Partnership, L.P., the company's operating partnership. This partnership will use the funds to finance new investments and repay the borrowings outstanding on its revolving credit facility.

The offering was led by J.P. Morgan, BofA Securities, and RBC Capital Markets, with BMO Capital Markets, KeyBanc Capital Markets, Morgan Stanley, and Wells Fargo Securities also participating as joint book-running managers. Huntington Capital Markets, M&T Securities, and Raymond James served as co-managers for the offering.

CareTrust REIT Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development, and leasing of skilled nursing, seniors housing, and other healthcare-related properties. The company's portfolio spans the United States and United Kingdom, with a growing number of quality operators leasing its properties.

In the second quarter of 2025, CareTrust REIT reported net income of $68.5 million and a net income per share of $0.35. The company also reported a net debt-to-annualized normalized run rate EBITDA of 2.0x, which is below its target leverage range of 4.0x to 5.0x. The company has a cash on hand of approximately $65 million and an investment pipeline of approximately $600 million.

The company's President and Chief Executive Officer, Dave Sedgwick, commented on the recent investments, stating, "Over the last 18 months, we have invested more than the prior eight years combined, deploying roughly $2.7 billion of capital into growth opportunities. We have broadened our operator bench and diversified our asset mix, payor base, and geographic reach."

The company has increased its guidance for 2025, projecting net income of approximately $1.43 to $1.45 per diluted weighted-average common share, normalized FFO of approximately $1.77 to $1.79, and normalized FAD of approximately $1.77 to $1.79.

The offering may only be made by means of a prospectus supplement and the accompanying prospectus. A copy of the preliminary prospectus supplement relating to this offering was filed with the SEC on August 12, 2025, and a final prospectus supplement relating to the offering will be filed with the SEC. A copy of the final prospectus supplement, when available, and accompanying prospectus relating to the offering may be obtained from the company's website.

References:
[1] https://finance.yahoo.com/news/caretrust-reit-inc-announces-pricing-025600395.html
[2] https://www.businesswire.com/news/home/20250805964070/en/CareTrust-REIT-Announces-Second-Quarter-2025-Operating-Results