CareTrust REIT completes £576M acquisition of 23 UK care homes from LNT, with options for 21 more

CareTrust REIT, through its UK subsidiary, acquired 23 completed care homes from LNT Care Developments Holdings Limited. One additional care home is pending regulatory approval expected in October 2026. The acquisition was completed on October 1, 2026.

The company will pay £24 million per property. The initial aggregate purchase price is approximately £576 million ($764 million) for the 24 completed properties and approximately £504 million ($669 million) for the in-development properties, excluding transaction costs.

The company has options to acquire up to 21 additional care homes that are currently under development. These acquisitions are expected to occur on a rolling basis through December 31, 2027, upon completion of development and receipt of regulatory approvals.

After an initial lease-up phase, the company expects to acquire the operating companies (Opcos) for each property and transition the homes to a REIT-compliant structure under the REIT Investment Diversification and Empowerment Act. The Opco purchase price will be a specified multiple of implied annualized mature EBITDA.

The company disclosed a transaction referred to as the LNT Transaction, which is reported in Item 2.01 of the same 8-K. The press release announcing it is attached as Exhibit 99.1.

The company published an investor presentation and management remarks on its website to accompany the LNT Transaction announcement. The presentation is attached as Exhibit 99.2.

CareTrust has signed a definitive agreement to buy 45 newly built UK care homes from LNT for about £1.1 billion. The deal is structured with staggered closings, with the first 24 homes already closed on October 1, 2026 for approximately £576 million (about $764 million). The remaining 21 homes are under development and will be acquired for about £504 million as they are completed through 2027.

All 45 homes are or will be leased to Crystal Care under triple-net leases with fixed annual rent escalators. After an initial lease-up period, CareTrust and LNT intend to convert all 45 homes to a RIDEA structure, moving them into CareTrust's senior housing operating portfolio. The SHOP phase is expected to begin between years two and four after each home's completion, with the first transition anticipated by Q4 2027.

Management expects the LNT transaction to be accretive to normalized FFO per share during the lease-up phase and to generate an all-in pre-tax yield in the mid- to high-7% range in the first year of the SHOP phase. This suggests the deal is structured to avoid near-term earnings dilution while the homes fill with residents.

CareTrust REIT has entered into a strategic partnership with LNT Care Developments to develop and own 45 private pay care homes across the UK. The total transaction value is £1.1 billion, representing a significant expansion of CareTrust's UK portfolio. Note: these figures were previously disclosed in the company's May 7, 2026 8-K.

The acquisition will occur in staggered closings. The first phase involves 24 lease-up homes closing in October 2026 for £576 million ($764 million). The remaining 21 development homes will be purchased throughout 2027 for £504 million ($669 million).

The homes will be leased to Crystal Care, LNT's care home operating subsidiary, under a 20-21 year triple-net lease guaranteed by LNT. The initial annual rent is £1.4 million ($1.9 million) with 3% annual escalators.

CareTrust plans to convert the homes to a Senior Housing Operating Properties (SHOP) structure once they are stabilized, expected within 24-48 months. This conversion is anticipated to provide upside to normalized FFO per share.

The LNT transaction increases CareTrust's pro forma portfolio to 575 properties and 52,973 beds/units, with enterprise value of $11.5 billion. This meaningfully expands the company's UK presence and diversifies its operator and asset mix.