CareTrust REIT (CTRE) M&A announcement summary

Deal rationale and strategic fit

• LNT partnership adds 45 new, purpose-built U.K. care homes and a pathway to build a significant senior housing operating portfolio (SHOP).

• LNT brings 30+ years of vertically integrated development and operating experience; Crystal Care is the operator.

• Homes target undersupplied markets and demand for modern private-pay care beds; all 45 have en-suite wet rooms.

Financial terms and conditions

• The 45-home, 2,970-unit relationship is valued at £1.1bn (~$1.4bn).

• 24 lease-up homes closed October 1, 2026, for £576m; 21 development homes are priced at £504m for staggered purchase throughout 2027, subject to completion and approvals.

• Lease-up properties carry 20–21-year NNN leases to Crystal Care, guaranteed by LNT, with initial annual rent of £1.4m and 3% annual escalators.

• Normalized FFO per-share accretion is expected during lease-up, with additional upside upon SHOP conversion; stabilized NOI is estimated at £2.0bn–£2.2bn with mid-to-high 7% yield on cost.

• Revised FY2026 guidance: net income per share $1.54–$1.57, normalized FFO $2.06–$2.09 and normalized FAD $2.02–$2.05; includes the first 24 homes, excludes the remaining 21.

Integration plans and timeline

• Crystal Care subsidiaries lease the homes during lease-up; following stabilization, the parties intend to transition them to RIDEA-compliant SHOP agreements with Crystal Care affiliates.

• SHOP conversion is expected 24–48 months after stabilization or completion; the first transition is anticipated by Q4 2027.

• Put/call options are exercisable as homes stabilize; 21 homes under development are scheduled for rolling purchases throughout 2027.