CareTrust REIT (CTRE) investor relations material

Deal rationale and strategic fit

• Adds 45 new, purpose-built private-pay U.K. care homes and creates a pathway to a larger senior housing operating portfolio (SHOP), addressing a shortage of modern care beds.

• LNT brings an integrated development and operating model, a 30+ year track record, and Crystal Care as operator.

• U.K. over-80 population is projected to double by 2050, with an estimated 200,000-bed shortfall; private-pay care represented ~45% of U.K. care-home residents.

Financial terms and conditions

• The £1.1bn relationship covers 45 homes and 2,970 units; 24 lease-up homes closed October 1, 2026, for £576m, with 21 development homes priced at £504m for purchase throughout 2027.

• Crystal Care leases run 20–21 years, are guaranteed by LNT, and include initial annual rent of £1.4m with 3% escalators; first-tranche funding used settled forward equity proceeds and a revolver draw.

• Stabilization put/call options enable acquisition of operating subsidiaries and SHOP conversion; stabilized NOI is estimated at £2.0m–£2.2m, with a mid-to-high 7% yield on cost.

• Lease-up is expected to be accretive to normalized FFO per share; revised FY2026 guidance is $1.54–$1.57 net income, $2.06–$2.09 normalized FFO, and $2.02–$2.05 normalized FAD per share, including the initial 24 homes.

• Pro forma net debt to EBITDA remains in the mid-to-high 2x range after the first tranche.

Synergies and expected cost savings

• LNT’s vertically integrated model spans site selection, design, planning, construction, and operations, with a stated yield on costs of ~17%.

• LNT’s standardized development model and Crystal Care’s operating blueprint align design, construction, operations, and asset management; no quantified cost savings are stated.