US-based CareTrust REIT, Inc. has launched an underwritten public offering of 17 million shares of common stock through forward sale agreements, with an additional 2.55 million shares available under an option granted to the underwriters. BofA Securities, Morgan Stanley, J.P. Morgan and Wells Fargo Securities are acting as book-running managers. The company expects to receive the net proceeds when the forward sale agreements are settled, with the funds intended for general corporate purposes, including potential property acquisitions, investments and debt repayment.
CareTrust REIT, Inc. has commenced an underwritten public offering of 17 million shares of common stock, as the US-based healthcare property investor seeks to maintain funding flexibility for its growth and capital allocation plans. The offering, announced on 11 November 2026, is being conducted in connection with forward sale agreements that the company expects to enter into with financial institutions.
BofA Securities, Morgan Stanley, J.P. Morgan and Wells Fargo Securities have been appointed as book-running managers for the transaction. The underwriters are expected to receive a 30-day option to purchase up to an additional 2.55 million shares. If exercised in full, the total number of shares covered by the offering could increase to 19.55 million.
The offering is structured through forward sale arrangements with Bank of America and Morgan Stanley, or their respective affiliates, acting as forward purchasers. Under the proposed structure, the forward purchasers or their affiliates are expected to borrow shares from third parties and sell them to the underwriters. This arrangement allows the company to establish the offering while deferring the delivery of the corresponding shares under the forward agreements.
CareTrust REIT will not initially receive proceeds from the sale of shares by the forward purchasers. Instead, the company expects to receive the net proceeds when the forward sale agreements are physically settled. It anticipates completing the settlement within approximately one year from the date of the relevant prospectus supplement, subject to the terms of the agreements.
The company also retains the option to elect cash or net share settlement under the forward sale agreements. If the forward purchasers are unable to borrow and deliver the required shares despite commercially reasonable efforts, or if borrowing costs exceed specified thresholds or other conditions are not satisfied, CareTrust may issue and sell the corresponding shares directly to the underwriters.
Once received, the net proceeds are expected to be contributed to CTR Partnership, L.P., CareTrust REIT's operating subsidiary. The funds may be used for general corporate purposes, including future property acquisitions, investments and repayment of outstanding debt. The company has not specified individual acquisitions or investments that will be financed through the proposed offering.
CareTrust REIT is a publicly traded real estate investment trust focused on the ownership, acquisition, development and leasing of skilled nursing facilities, senior housing and other healthcare-related properties. Its portfolio includes long-term net-leased assets across the United States and the United Kingdom, with healthcare operators serving as tenants. The company's growth strategy combines acquisitions with opportunities to expand and improve its existing property portfolio.
The proposed share offering provides the REIT with another source of potential capital to support its investment programme and balance-sheet requirements. However, the final proceeds will depend on the terms of the offering, the exercise of the additional share option and the eventual settlement of the forward agreements.
The offering is subject to market conditions and customary transaction requirements. CareTrust has filed an automatic shelf registration statement with the US Securities and Exchange Commission, and a preliminary prospectus supplement is expected to provide further details of the transaction.
The information contained in this Site has been provided by Prop News Time for information purposes only. This information does not constitute legal, professional or commercial advice. Communication, content and material within the Site may include photographs and conceptual representations of projects under development. All computer-generated images shown on the Site are only indicative of actual designs and are sourced from third party sites.
The information on this Site may contain certain technical inaccuracies and typographical errors. Any errors or omissions brought to the attention of Prop News Time will be corrected as soon as possible. The content of this Site is being constantly modified to meet the terms, stipulations and recommendations of the Real Estate Regulation Act, 2016 (“RERA”) and rules made thereunder and may vary from the content available as of date. All content may be updated from time to time and may at times be out of date. Prop News Time accepts no responsibility for keeping the information on this website up to date or any liability whatsoever for any failure to do so.
While every care has been taken to ensure that the content is useful, reliable and accurate, all content and information on the Site is provided on an "as is" and "as available" basis. Prop News Time does not accept any responsibility or liability with regard to the content, accuracy, legality and reliability of the information provided herein, or, for any loss or damage caused arising directly or indirectly in connection with reliance on the use of such information. No information given under this Site creates a warranty or expands the scope of any warranty that cannot be disclaimed under applicable law.
This Site provides links to other websites owned by third parties. Any reference or mention of third-party websites, projects or services is for purely informational purposes only. This information does not constitute either an endorsement or a recommendation. Prop News Time accepts no responsibility for the content, reliability and information provided on these third-party websites. Prop News Time will not be held liable for any personal information or data collected by these third parties or for any virus or destructive properties that may be present on these third-party sites.
Your use of the Site is solely at your own risk. You agree and acknowledge that you are solely responsible for any action you take based upon this content and that Prop News Time is not liable for the same. All details in the form of news stories, photos and videos provided on this Site are updated on the basis of information available from the respective developers/owners/promoters. All such information will not be construed as an advertisement. This Site is for guidance only. Your use of this Site – including any suggestions set out in the Site and or any use of the resources available on this Site, do not create any professional–client relationship between you and Prop News Time. Prop News Time cannot accept you as a client until certain formalities and requirements are met.
Are you sure you want to delete your account?
This action is final. Once your account and all associated personal data has been deleted, you have to again register and all your data will be lost.
