Sila Realty Trust, Inc. announces estimated net asset value per share of $ 8.69

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TAMPA, Florida – (COMMERCIAL THREAD) – Sila Realty Trust, Inc., or the Company, a public and unlisted real estate investment trust focused on net leased healthcare and data center properties, today announced that on December 1 2020, its board of directors, or the board, unanimously approved an updated estimated net asset value, or net asset value, of $ 8.69 per share for each of the Class A common shares, of the common shares of Class I, Class T common shares and Class T2 common shares, calculated as of September 30, 2020.

The increase in the overall real estate value of the Company’s comparable store portfolio, defined as the properties owned by the Company as at October 31, 2019, the date of the calculation of the last estimated net asset value per share, combined with the value of the real estate recently acquired were partially offset by costs associated with the internalisation transaction and changes in the fair value of debt and interest rate swaps due to lower market interest rates.

Michael Seton, President and CEO, said: “The increase in the estimated value of our same-store real estate portfolio, which has resulted in a net increase in the company’s net asset value, signals the strength and stability of the market. total portfolio, while demonstrating the effectiveness of our proactive response to the challenges faced during the unprecedented COVID-19 pandemic. Although the macroeconomic trends induced by the pandemic, in particular the cuts in market interest rates resulting from the Federal Reserve’s support to the economy, have had an impact on our interest rate hedges and our borrowing, and an increase in the debt incurred as part of the completion of the internalisation transaction contributed to the compensation, we expect the expected cost savings from the Company’s recently internalized management structure and our experienced administration. of the portfolio will continue to generate shareholder value in the future.

The board engaged Cushman & Wakefield Western, Inc., or Cushman, an independent appraisal firm, to calculate an estimated net asset value and appraised value of 152 of the 153 properties in the company’s real estate portfolio as of September 30, 2020. In the calculating the estimated net asset value per share, Cushman also valued a building acquired on September 8, 2020, at its full purchase price. The Board directed its Audit Committee, composed entirely of independent directors, to oversee the valuation process, review Cushman’s valuation analysis and estimates, and recommend an estimated net asset value per share for each class of common shares. Based on the recommendation of the Audit Committee, the Board unanimously adopted an estimated net asset value of $ 8.69 per share for each of the Class A common shares, Class I common shares, common shares Class T and Class T2 common shares.

The table below reconciles the increase in the estimated net asset value per share from October 31, 2019, to $ 8.65 as at September 30, 2020, to $ 8.69:

Estimated NAV per share, October 31, 2019

$

8.65

Change in the real estate portfolio on a comparable store basis

0.18

New buildings, net and notes receivable

0.14

Change in net debt

(0.17)

Evolution of the mark to market of hedges and debt

(0.11)

Total increase

0.04

Estimated net asset value per share, September 30, 2020

$

8.69

The various factors taken into account by the board in determining the estimated net asset value per share of the common shares of the Class A corporation, the class I common shares, the class T common shares and the class T2 common shares were based on several assumptions and estimates which may not be exact. or complete. In addition, the value of the Company’s shares will fluctuate over time due to, among other things, changes in individual assets and reactions to real estate and capital markets, including, but not limited to , changes in real estate values ​​resulting from the COVID-19 pandemic. Specifically, due to the COVID-19 pandemic, there is risk and uncertainty in commercial real estate values. Although the Company intends to publish an updated estimated net asset value per share on an annual basis, the Company may be required to reassess the estimated net asset value per share sooner if the COVID-19 pandemic has an adverse impact. material on the Company, its tenants or its assets. .

About Sila Realty Trust, Inc.

Sila Realty Trust, Inc. is a public, unlisted real estate investment trust headquartered in Tampa, Florida that invests in high quality healthcare properties and data centers leased to tenants by capitalizing on essential and structural economic growth engines. As of September 30, 2020, the Company owned 153 real estate properties, comprising 29 data centers and 124 healthcare properties located in 70 markets in the United States.

Forward-looking statements

Certain statements contained in this press release, other than historical facts, may be considered as forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and the Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements include, without limitation, statements relating to the Company’s expectations regarding the performance of its business and the estimated net asset value per share of the Company’s common shares. Cushman has relied on forward-looking information, some of which has been provided by or on behalf of the Company, in preparing its valuation documents. Therefore, neither these statements nor Cushman’s valuation documents are intended, nor should they serve, as a guarantee of the performance of the Company in future periods. You can identify these forward-looking statements by using words such as “prospect”, “believe”, “expect”, “possible”, “continue”, “could”, “approximately”, “plans”, “predict” , “Intentions”, “plans”, “estimates”, “anticipates” or the negative version of these or other comparable words. These forward-looking statements are subject to various risks and uncertainties, including those described in the section entitled “Risk Factors” in the Company’s annual report on Form 10-K for the year ended December 31, 2019, as updated. day by the subsequent quarterly publication of the Company. Reports on From 10-Q for the periods ended March 31, 2020, June 30, 2020, and September 30, 2020 filed with the SEC. Therefore, there are or will be significant factors that could cause actual results to differ materially from those shown in such statements. These factors should not be construed as exhaustive and should be read in conjunction with the other caveats included in this press release and in other documents filed by the Company with the SEC. The Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Actual events may cause the value and returns of the Company’s investments to be lower than those used for the purposes of the estimated net asset value per share of the Company. Factors that may cause the value of the Company’s shares to fluctuate over time include developments in individual assets and responses to real estate and capital markets, including, but not limited to changes in values. real estate as a result of COVID. -19 pandemic. Specifically, due to the COVID-19 pandemic, there is risk and uncertainty in commercial real estate values. In addition, the estimated net asset value per share was calculated at any given time and does not constitute a representation, guarantee or guarantee that (i) a shareholder would be able to realize an amount equal to the estimated net asset value per share if this shareholder tries to sell his shares; (ii) a shareholder would ultimately make distributions per share equal to the estimated net asset value per share on the liquidation or sale of the Company; (iii) the ordinary shares of the Company would trade at the estimated net asset value per share on a national stock exchange or (iv) another independent third party appraiser or other third party valuation company would agree with the net asset value per estimated share of the Company. See the company’s current report on Form 8-K filed with the SEC on December 7, 2020, for a description of the methodology and assumptions used to determine estimated net asset value per share, as well as limits on net asset value. per estimated share.


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