CareTrust REIT (NYSE: CTRE) lines up 45 UK care homes in LNT deal

What happened

CareTrust REIT, Inc. (NYSE: CTRE) agreed to buy 45 UK care homes from LNT Care Developments Holdings Limited. The first 24 homes closed on October 1, 2026, for about $764 million, not including transaction costs.

The other 21 homes are still being developed. CareTrust expects them to close in stages through 2027 after completion and regulatory approvals.

CareTrust said the homes are, or will be, leased to Crystal Care subsidiaries under triple-net leases before a planned move to a RIDEA structure.

Key numbers

Metric	Latest	Change	Source
Acquisition count	45 homes		SEC 8-K
First closing	24 homes		SEC 8-K
First-closing consideration	$764 million		SEC 8-K
Other investments closed since second-quarter 2026 earnings report	$488 million		SEC 8-K
Near-term pipeline	$525 million		SEC 8-K
Normalized FFO guidance	$2.06 to $2.09 per share		SEC 8-K

Read more: CareTrust REIT (CTRE) stock analysis and investment case

Why it matters

CareTrust said the deal should add to normalized funds from operations per share during the lease-up phase. It also said the SHOP phase should produce a pre-tax yield in the mid- to high-7% range in year one.

The near-term pipeline is about $525 million, or 19% of the year-to-date investment total of $2.7 billion. That suggests CareTrust still has room to deploy capital after the LNT closing.

CareTrust also said it has closed about $488 million of other investments since its second-quarter 2026 earnings report. That included three UK care homes for about $34 million and $55 million of preferred equity and debt investments.

The blended, stabilized yield of those investments, excluding the LNT transaction, is 8.8%. CareTrust also raised full-year 2026 guidance to net income of $1.54 to $1.57 per share, Normalized FFO of $2.06 to $2.09, and Normalized FAD of $2.02 to $2.05.

It also assumes cash rental revenue of $478 million at the midpoint and interest income from loans and other investments of $108 million. The remaining 21 homes are still under development, and the filing says timing, completion, regulatory registration, accretion and yields may not match the plan.

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What's next

CareTrust said the remaining 21 homes are expected to be acquired on a rolling basis through 2027. The first transition to a RIDEA structure is expected by the fourth quarter of 2027.

That will show whether the UK SHOP platform is moving from signed deal to operating portfolio on schedule.

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