CareTrust REIT Inc., a San Clemente real estate investment trust that owns skilled-nursing facilities, senior housing and other healthcare properties, is exploring strategic options including a sale, Bloomberg said, citing unidentified people with knowledge of the matter.
CareTrust (Nasdaq: CTRE) is working with an unnamed adviser to solicit interest from potential suitors including rivals and real estate-focused investment firms, Bloomberg said.
A CareTrust representative declined to comment to Bloomberg.
CareTrust Chairman and Chief Executive Officer Greg Stapley last month told analysts on a conference call that a shortage of qualified workers and rising labor costs present a “growing challenge” and that several of the REIT’s tenants have turned patients away due to a lack of necessary staff to provide care.
The REIT’s shares climbed 7.3% to $22.25 and a $2.2 billion market cap.
Bloomberg noted that earlier this year, DigitalBridge Group Inc. agreed to a $3.2 billion deal to sell its wellness portfolio, which included senior housing and skilled nursing facilities, to Highgate Capital Investments and Aurora Health Network.