CareTrust REIT (CTRE) BofA Securities 2025 Global Real Estate Conference summary

Company evolution and growth strategy

• Originated from a nursing home operator, spun off real estate into a REIT in 2014 to unlock value.

• Reduced tenant concentration and averaged $225 million in annual investments over nine years.

• Achieved $1.5 billion in acquisitions last year, with a major international expansion into the U.K.

• Market capitalization grew from $2.5 billion to $7.5 billion in 18 months, with plans to exceed last year’s growth.

• Preparing to enter the SHOP (senior housing operating portfolio) space as a third growth engine.

U.K. acquisition and integration

• U.K. deal provided diversification, new growth opportunities, and checked key strategic boxes.

• Internalized the U.K. team, expecting $5 million in G&A savings by next year.

• U.K. pipeline is growing rapidly, with deals already included in the $600 million pipeline.

• U.K. now represents about 16% of revenue, with potential for significant growth due to local team relationships.

• Cost of capital advantage enables competitive deal-making in the U.K. market.

Pipeline and investment activity

• Announced a $600 million pipeline, with 60% U.S. skilled nursing, 20% SHOP, and the remainder in the U.K.

• U.K. deal flow has accelerated, with operators bringing off-market opportunities.

• SHOP vertical is being built out, with dedicated hires and IT infrastructure improvements.

• SHOP opportunity is large, with 40,000 properties in the U.S. compared to 15,000 SNFs and 15,000 U.K. care homes.

• Infrastructure is being developed to support larger portfolio deals if they arise.