A credit rating label assigned to bonds or borrowers that signals relatively low risk of default; think of it as a strong health check for a company's or government's ability to repay debt. It matters to investors because investment-grade status typically means lower interest costs for the borrower, greater eligibility for conservative funds and pension portfolios, and generally more stable returns compared with higher-risk, non-investment-grade debt.
Senior unsecured notes are a type of loan a company borrows from investors, promising to pay back with interest. They are called "unsecured" because they aren’t backed by specific assets like buildings or equipment, but "senior" because they are paid back before other debts if the company gets into trouble. Investors see them as a relatively safer way for companies to raise money.
blended stabilized yieldfinancial
A blended stabilized yield is the single, weighted average income return an investor can expect from a group of properties or income-generating projects after each has reached normal operating performance (stabilized). It combines the individual yields of the assets into one number so investors can compare portfolios, estimate steady-state cash flow and judge overall return and risk—like averaging the brightness of several lightbulbs to know how well a room will be lit.
real estate investment trustfinancial
A real estate investment trust (REIT) is a company that owns and manages income-producing properties—like apartment buildings, shopping centers, offices, or warehouses—and is required to pass most of its rental income to shareholders as dividends. Think of it as a shared property owner: instead of buying a whole building, investors buy a slice of a portfolio that pays regular income and can offer exposure to property values and rental markets without direct management. REITs matter to investors for predictable income, diversification, and liquidity compared with owning physical real estate.
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DANA POINT, Calif.--(BUSINESS WIRE)--
CareTrust REIT, Inc. (NYSE:CTRE) (“CareTrust” or the “Company”) announced today that Moody’s Ratings (“Moody’s”) upgraded the Company’s issuer rating and senior unsecured notes to an investment grade rating of Baa3. The outlook was changed from positive to stable following the ratings upgrade.
"This investment grade rating from Moody's is a powerful validation of the discipline we've maintained on our balance sheet even as we've met the moment of extraordinary growth by deploying over $4 billion of capital since the beginning of 2024 across attractive skilled nursing, seniors housing, and UK care home opportunities," said Dave Sedgwick, CareTrust's Chief Executive Officer. Mr. Sedgwick continued, "A disciplined balance sheet is precisely what allows us to move decisively when the right opportunities arise. With as strong a credit foundation as ever, we're energized to keep building momentum in our growth flywheel." Derek Bunker, CareTrust's Chief Financial Officer, added, "This upgrade expands our optionality as we continue funding our growth, improving our cost of capital while broadening our access to high grade debt markets, something that is squarely on our radar."
Additional information regarding the rating changes can be found on Moody’s website here and in the full report issued by Moody’s.
In a separate announcement, the Company reported a series of recent investments totaling approximately $628 million across US skilled nursing and UK care homes at a blended stabilized yield of 8.8%. The announced transactions bring the Company’s year-to-date total investments to $990 million with a $450 million pipeline of actionable deals at least under letter of intent.
About CareTrust™
CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, senior housing and other healthcare-related properties. With a portfolio of long-term net-leased properties spanning the United States and United Kingdom, and a growing portfolio of quality operators leasing them, CareTrust is pursuing both external and organic growth opportunities across the US and internationally. More information about CareTrust REIT is available at www.caretrustreit.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical statements of fact and statements regarding the Company’s intent, belief or expectations, including, but not limited to, statements regarding the following: future financial and financing plans; strategies related to the Company’s business and its portfolio, including acquisition and investment opportunities; growth prospects; operating and financial performance; stabilized yields; pipeline figures; and the performance of the Company’s tenants, operators and borrowers. The Company’s forward-looking statements are based on management’s current expectations and beliefs, and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. The Company expressly disclaims any obligation to update or revise any information in this press release, including forward-looking statements, whether to reflect any change in the Company’s expectations, any change in events, conditions or circumstances, or otherwise.
