CareTrust REIT Inc., in reporting its latest results, said it terminated its existing master lease with Trillium Healthcare Group LLC affiliates for its 10 properties in Iowa, seven properties in Ohio and a singe property in Georgia.
The healthcare real estate investment trust and Trillium are also in talks for a new master lease covering only the Iowa and Georgia assets. Trillium is expected to continue operating the Ohio assets until the REIT finds new property operators.
The REIT is set to write-off accounts and straight-line rent receivable by approximately $2.4 million in the third quarter following the termination.
Furthermore, CareTrust is looking to sell three of its Ohio properties, subject to normal diligence and state approval processes, and is in negotiations to lease the remainder to a new operator. Both transactions are expected to close Sept. 1.
CareTrust is also planning to buy the 99-bed Cascadia of Boise skilled nursing facility in Boise, Idaho, by 2019-end for a price similar to what it paid for the Cascadia of Nampa facility in Nampa, Idaho.