The skilled nursing portfolio deals keep on coming, this time from a familiar source. CareTrust REIT announced its acquisition of four skilled nursing facilities in Texas, around the Dallas-Fort Worth metro area. Totaling 554 skilled nursing beds and 24 assisted living beds, they are currently leased to operating affiliates of The Ensign Group, and have been since Ensign took over operations more than a year ago from Senior Care Centers, which was going through bankruptcy proceedings at the time.
The facilities include Beacon Harbor Healthcare & Rehabilitation in Rockwall, Rowlett Health & Rehabilitation Center in Rowlett, Crestwood Health & Rehabilitation in Wills Point and Pleasant Manor Healthcare & Rehabilitation in Waxahachie.
In-place EBITDAR rent coverage for the portfolio was over 2.0x, and CareTrust assumed the seller’s two existing leases with aggregate annual cash rent of approximately $3.8 million plus CPI-based escalators. The leases have a remaining term of approximately 14 years with three five-year renewal options and include a tenant option to purchase the properties later in the initial term. CareTrust used a combination of cash on hand and its $600 million unsecured revolving credit facility to fund the purchase, which came to $47.6 million, or $82,400 per bed.
