CareTrust REIT Launches Senior Housing Operating Platform (SHOP) with Strategic Acquisition of Three Texas Communities
CareTrust REIT, a leading diversified healthcare real estate investment trust today announced a significant and strategic expansion of its investment platform. Effective December 1, 2025, the Company completed the acquisition of three high-quality senior living communities in Texas, comprising 270 assisted living and memory care units, for a total purchase price of approximately $40 million. This landmark transaction is not only a substantial addition to CareTrust’s portfolio but also officially marks the debut of the Company’s first-ever Senior Housing Operating Portfolio (SHOP) platform.
A New Growth Engine: Entering the SHOP Space
The acquisition represents a crucial milestone in CareTrust’s long-term strategy for continued growth and diversification. By entering the SHOP space, CareTrust shifts from a pure triple-net lease model to one that offers direct, active exposure to property-level performance in the senior housing sector. This structure allows the Company to fully participate in the potential upside generated by operational efficiencies and organic growth, aligning its success directly with the performance of the managed assets.
The three acquired properties are located in attractive, high-growth Texas markets and reported a strong occupancy rate of approximately 86% at the time of acquisition. The communities will be managed by affiliates of Sinceri Senior Living, a reputable and experienced operator in the senior housing landscape. The acquisition was executed utilizing cash on hand, underscoring CareTrust’s robust balance sheet strength and financial discipline.
Strategic Rationale and Operator Alignment
CareTrust’s Chief Investment Officer, James Callister, provided insight into the strategic thinking behind the move. “Entering the SHOP space is an exciting, calculated, and natural extension of our comprehensive investment platform,” Callister commented. “We have spent considerable time evaluating the compelling risk-adjusted opportunities within senior housing operations. This model provides us with attractive initial yields, the ability to drive meaningful organic growth through active asset management, and, crucially, an operating dynamic that resonates closely with our roots as former healthcare operators ourselves.”
Mr. Callister further highlighted the expected financial performance, noting that the Company anticipates the portfolio to deliver a competitive going-in yield of approximately 7%. He expressed strong confidence in the chosen operating partner: “We eagerly look forward to collaborating with Sinceri Senior Living. Our shared goal is to deliver outstanding resident care and, in doing so, ensure we create sustainable, long-term value for all our stakeholders.”
Operator’s Perspective: A Partnership for Success
The enthusiasm for the new partnership was mirrored by Sinceri Senior Living. Micah Gerber, Sinceri’s President of Finance and Investments, stated, “We are incredibly excited to partner with CareTrust on this important opportunity. Their deep, operator-informed understanding of the post-acute and seniors housing landscape, coupled with their long-term, disciplined investment mindset, makes them an ideal partner for our organization.”
Gerber concluded, “We look forward to working together to strategically enhance operations, continually elevate the standard of resident care, and ultimately position these three communities for sustained, long-term success.”
Tri Tran, Senior Vice President of Investments at CareTrust, underscored the collaborative nature of the transaction: “We are thrilled to formally launch our first SHOP partnership, and to do so with such a respected and highly experienced operator as Sinceri. We are truly grateful for their seamless collaboration in making this transaction possible, and we anticipate working closely with their entire team to deliver an exceptional, high-quality experience for residents and their families.”
Establishing a Third Growth Engine
Dave Sedgwick, CareTrust’s President and Chief Executive Officer, summarized the long-term corporate implications of the SHOP launch. “The introduction of our SHOP platform formally establishes CareTrust’s third major growth engine,” Sedgwick confirmed. “This new avenue now complements our established U.S. skilled nursing and U.K. care home investment platforms.”
Sedgwick emphasized the resulting strategic advantage: “With this powerful addition, we now possess three distinct and complementary avenues to grow, strategically diversify our risk, and compound shareholder value effectively. The opportunity set within the broader senior housing sector remains significant and underserved. Given our strong balance sheet, high liquidity, and deep-seated operating expertise, we are uniquely well-positioned to capitalize on this opportunity for years to come.”
Mr. Callister reaffirmed that CareTrust will maintain its opportunistic approach, continuing to rigorously evaluate additional acquisition opportunities not only across the U.S. healthcare real estate sector but also within the burgeoning U.K. care home market. The Company’s strategic advantage lies in its emphasis on partnering with high-quality operators, its commitment to maintaining a local perspective in asset management, and its considerable financial strength. These factors collectively position CareTrust to successfully support its operating partners as they deliver essential, high-quality care across a variety of healthcare and senior living settings.
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