This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the shares. Based on InvestingPro‘s Fair Value analysis, CareTrust REIT (NYSE:) is currently trading near its fair value. Investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of CareTrust’s financial health, valuation metrics, and growth prospects, along with 10 additional exclusive ProTips. Based on InvestingPro‘s Fair Value analysis, CareTrust REIT is currently trading near its fair value. Investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of CareTrust’s financial health, valuation metrics, and growth prospects, along with 10 additional exclusive ProTips.
Under the terms of the agreement, CareTrust REIT, along with its operating partnership, CTR Partnership, L.P., may issue and sell shares at market prices or through negotiated transactions. These sales can occur on the New York Stock Exchange or other markets, through ordinary broker transactions, block trades, or market makers.
A consortium of financial institutions, including BMO Capital Markets Corp. and Wells Fargo (NYSE:) Securities, LLC, will serve as sales agents or principals in the transactions. Additionally, entities such as Bank of Montreal and Wells Fargo Bank, National Association, will act as forward purchasers.
The sales agents, when working on behalf of the forward purchasers, are termed “Forward Sellers.” They will be responsible for selling shares that have been borrowed, aligning with the forward sale agreements. Each sales agent or forward seller may receive up to a 2.0% commission on the sales price of the shares sold.
This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the shares. Based on InvestingPro‘s Fair Value analysis, CareTrust REIT is currently trading near its fair value. Investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of CareTrust’s financial health, valuation metrics, and growth prospects, along with 10 additional exclusive ProTips.
CareTrust REIT may settle these forward sale agreements by delivering common stock shares, potentially receiving proceeds upon settlement. Alternatively, the company may opt for cash or net share settlement, which could result in no proceeds or an obligation to deliver shares to the forward purchaser.
The equity distribution agreement follows the termination of a previous “at-the-market” equity offering program, which concluded with approximately $440.15 million in unsold shares.
The shares offered under this program will be issued pursuant to a shelf registration statement filed with the SEC on February 24, 2023, and a prospectus supplement filed on January 21, 2025. Legal opinion regarding the validity of the shares has been provided by DLA Piper LLP (US).
This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the shares.
In other recent news, CareTrust REIT has made significant strides in its financial performance and expansion strategy. The company has reported a 66% increase in normalized Funds From Operations (FFO) to $60.9 million and a 60% rise in normalized Funds Available for Distribution (FAD) to $61.9 million. Additionally, CareTrust REIT has acquired skilled nursing facilities in Tennessee and the Northeast, totaling $557 million.
On the financial front, CareTrust REIT has doubled its unsecured revolving credit facility to $1.2 billion, a move supported by a consortium of banks led by KeyBanc Capital Markets. This expansion coincides with an upgrade in the company’s corporate rating by S&P Global Ratings.
However, BMO Capital Markets has downgraded CareTrust REIT from an Outperform rating to Market Perform, following allegations involving PACS, a significant tenant contributing approximately 20% of CareTrust’s pro-forma rents. Despite this, the company continues to maintain a strong liquidity position with approximately $230 million in cash and plans to upsize its revolver to $1.2 billion.
These recent developments emphasize the dynamic environment in which CareTrust REIT operates, while also indicating the company’s commitment to growth and financial stability. The company’s future operations and prospects are subject to various factors including tenant performance under leases, regulatory impacts, market access, interest rate fluctuations, and broader public health crises.
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