Shares of CareTrust REIT, Inc. (CTRE) has got a push of 4.34% on Wednesday by an acquisition deal. The healthcare facilities company bought two skilled nursing facilities in Montana. The off-market transaction brought in a Helena, Montana-based Apple Rehab Cooney for the company. Other facility on which the company got its hold on is Elkhorn Healthcare & Rehabilitation.

The 80-bed facility of Apple Rehab Cooney is located on the campus of the St. Peter’s Health Regional Medical Center. Elkhorn is situated in Clancy, Montana with ability to accommodate 70 patients in-house.

Eduro Healthcare will run both of the facilities. It is an operator of skilled nursing and rehabilitation operating 16 facilities in different states. Those facilities also include an award winning facility of Copper Ridge Health & Rehabilitation in Butte, Montana.

The acquisition deal was the first by CareTrust which began and concluded in the face of COVID-19. Buying assets in such uncertain times brings some extra challenges in. But these facilities are operating well and parties involved are well prepared to tackle any doubtful situations, said Chief Operating Officer of CareTrust, Dave Sedgwick.

CareTrust’s proven relation with Eduro helped both parties to settle difficult issues smoothly. Seller was concerning over the issues like operations and legacy of the facilities. Eduro’s attachment with CareTrust helped to calm those worries, Sedgwick said.

Total amount invested by CareTrust for acquiring two facilities reached $16.5 million. This also includes costs to execute the transaction and payment of $0.5 million to Eduro to upgrade the facilities. After adding the two new properties, Eduro’s master lease ended up with an increase of nearly $1.55 million in annual cash rent. Eduro’s master lease will remain valid for about 9.5 more years, which could be renewed two more times on 5-year basis.

CareTrust concluded the acquisition transaction by making use of its cash on hand.


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