Our Executive Team knows first-hand what it takes to provide superior healthcare services and facilities for the senior community. We understand that this laser focus on best-in-class care is essential for an operator to achieve healthy growth.
Chairman and Chief Executive Officer
President & Chief Operating Officer
Chief Financial Officer
Chief Investment Officer
CareTrust’s Board of Directors each brings deep expertise in healthcare, real estate, investing, accounting, and business development.
President and Chief Executive Officer of CareTrust REIT
Independent Director on the boards of The Macerich Company and Spirit Realty Capital, Inc.
Founder and President of Clearview Hotel Capital, LLC
Chairman and Chief Executive Officer of Biosynthetic Technologies, LLC
President and Chief Executive Officer of Sabin Holdings, LLC
As former healthcare facility operators, our deep industry roots, experience and relationships distinguish us in our ability to navigate the intricacies, challenges, and opportunities for investment. The lessons we’ve learned from the inside shape our operator-centric approach because we understand more intimately what operators really need in order to provide best-in-class care, and how to set them up for long-term success.
Our timeline starts with very humble beginnings in 1999 when a small group with a big vision founded The Ensign Group “to dignify long-term care in the eyes of the world.” CareTrust was later formed in 2014 through a tax-free REIT spin-off of 97 Ensign-owned properties.
The Ensign Group (a post-acute care operator) is co-founded by industry veteran Roy Christensen and partners Dick Toolson, Christopher Christensen and Greg Stapley, with less than $35,000 in start-up capital.
Ensign receives a capital infusion of $2.3 million from a small group of private investors with long-term investment horizons, in exchange for 16% of the growing company.
Founders and employees retain 84% of ownership, ensuring that Ensign’s unique vision and approach to care will have a long term to prove itself.
Ensign continues to grow via acquisitions using a combination of lease financing, mortgage debt and cash flow from operations to acquire “turnaround” facilities.
The company’s first un-leveraged acquisition comes in mid-2004, when Ensign purchases North Mountain Care Center in Phoenix, Arizona from the John C. Lincoln hospital system for $6.5 million in cash.
Ensign goes public with a $67 million initial public offering in early November. It is one of the last successful IPOs before the Recession.
The company grows to 61 facilities with over $400,000 in annual revenue.
Ensign announces that it will separate its real estate from its operating business in a tax-free spin-off, creating CareTrust REIT.
On June 1st, CareTrust REIT launches as a separate and independent real estate investment trust, financed with a successful $260 million bond offering and a $150 million secured term revolving credit line. CareTrust leaves its entire acquisition pipeline behind at Ensign.
Moody’s rates CareTrust a B2, and Standard & Poor’s issue a B rating on the company. Initial rental revenue is 100% from Ensign.
In November, CareTrust closes its first acquisition as a standalone company, acquiring an assisted living portfolio in Idaho that is leased to Cross Healthcare.
CareTrust deploys $43 million in investment capital by year-end.
In August, CareTrust successfully runs its first secondary offering, a $175 million equity raise. CareTrust’s first foray into the equity markets follows its successful conversion of its $150 million secured term revolver to a $300 million unsecured line.
CareTrust acquires a 14-property, $175 million portfolio in Ohio, which is largely matched-funded with proceeds from the August 2015 equity raise. The assets are re-tenanted and eventually distributed among three different operators. Capital deployment for 2015 reaches $232 million.
CareTrust upsizes its revolver to $400 million, runs two additional equity offerings raising over $190 million, and deploys over $285 million in its second full year as a standalone company.
Moody’s and Standard & Poor’s upgrade their credit ratings on the company to B1 and B+ respectively. With the company’s growth, revenue from the original Ensign master leases drops to 52% of run-rate revenue by year-end.