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Carter Validus Mission Critical REIT Announces Special Distribution and New Distribution Rate

The board of Carter Validus Mission Critical REIT Inc., a publicly registered non-traded real estate investment trust, has declared a special distribution of $3.00 per share of common stock to stockholders of record as of February 15, 2018.

The board of Carter Validus Mission Critical REIT Inc., a publicly registered non-traded real estate investment trust, has declared a special distribution of $3.00 per share of common stock to stockholders of record as of February 15, 2018. The company expects to pay the special distribution on March 15, 2018.

The special cash distribution is funded from the proceeds from real estate property sales between December 2017 and January 2018 that totaled nearly $1.3 billion.

The special distribution to stockholders was approximately $560 million after paying certain debt obligations, joint venture partners, and other costs associated with the property sales. The REIT estimates the distribution will consist of gains realized from the sale of properties and other assets, as well as depreciation recapture and return of capital from recent asset sales.

“We are pleased to create significant cash liquidity for our stockholders through the sale of certain of the company’s assets,” said REIT president Michael Seton. “We look forward to continuing to explore strategic alternatives for the company and its assets to maximize value for our stockholders.”

In addition to the special distribution, the REIT declared daily distributions of $0.001150685 per share to stockholders of record as of each date beginning on March 1, 2018, through May 31, 2018.

The March distributions will be paid in April 2018, the April distributions will be paid in May 2018 and the May distributions will be paid in June 2018.

The monthly distribution amounts, when converted to a daily distribution amount and then annualized, would equal a 6 percent annualized rate based on an original purchase price of $10.00 per share less the $3.00 special distribution, or a 6.7 percent annualized rate based on the December 2017 estimated value per share of $9.26, less the $3.00 per share special distribution.

Including the $3.00 special distribution, early investors, those who acquired shares on April 28, 2011 and received all cash distributions, have received cumulative cash distributions of approximately $7.76 per share. The sum of these cumulative distributions and the estimated value per share of $9.26, less the $3.00 per share special distribution, equals $14.021.

Later investors, those who acquired shares on June 6, 2014 and received all cash distributions, have received cumulative cash distributions of approximately $5.58 per share, and the sum of these cumulative distributions and the estimated value per share of $9.26, less the $3.00 per share special distribution, equals $11.84.

For investors who participated in the dividend reinvestment plan, the amount of cumulative cash distributions, taking into account the $3.00 special distribution, for early and later investors would increase by approximately $1.20 to $15.22 and $0.23 to $12.07, respectively.

Carter Validus Mission Critical REIT invests in net leased data center and healthcare assets and oversaw a portfolio of 84 properties (19 data center and 64 healthcare properties) purchased for approximately $2.1 billion, as of the third quarter 2017. The company’s offering, which was declared effective by the SEC in December 2010, closed in June 2014 after raising more than $1.7 billion in investor equity.

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