CareTrust REIT, Inc. (NYSE:CTRE) Q3 2023 Earnings Call Transcript

Dave Sedgwick: So, yes, they vary deal-by-deal. In some cases, they will be — it depends on whether or not we provide any sort of ramp in rent. In some cases, like James talked about, a lot of what we are underwriting and bidding on today have some form of value-add turnaround or stabilization required. And so in order to make that really a better chance of success for our operators, we will occasionally give a ramp where needed anywhere from two to three months and in an extreme case, maybe a one or two-year ramp. And so generally speaking, that initial yield is going to be for SNFs in the nines, if you adjust for the ramps.

Unidentified Analyst : Okay. That’s helpful. Thank you. And to touch on the Eduro Group comments that you made in your prepared remarks and other people have asked. What kind of visibility do you have in their financials? And how confident are you that they’re going to keep paying rent to end the quarter?

Dave Sedgwick: Yeah. We, like I said, we have a really great relationship with those guys. They’re an open book to us, and we’re working with them on how to transition a couple of buildings into better hands, we don’t expect a hiccup to rent.

Unidentified Analyst : Okay. Thank you.

Dave Sedgwick: You bet.

Operator: There are no further questions at this time. I’d like to turn the call back over to Dave Sedgwick for any additional or closing remarks.

Dave Sedgwick: Well, thank you. I really appreciate everybody’s support and interest. Have a Happy Veterans Day and a great weekend. Thank you.

Operator: Thank you. That does conclude today’s presentation. Thank you for your participation, and you may now disconnect.