Carter Validus Mission Critical REIT Inc., a publicly registered non-traded real estate investment trust, has reached its 2 percent share repurchase limit for the first quarter of 2019 and will not be able to fully process all repurchase requests.
In October 2018, the board approved a second amended share repurchase program, which became effective on January 1, 2019. Under the amended program, the company limits the number of shares repurchased on a quarterly, rather than monthly basis, and either accepts or rejects repurchase requests by the first day of each quarter.
For the first quarter of 2019, the company limits repurchases to no more that 2 percent of the shares outstanding as of the last day of 2018. For the remaining three quarters of the year, the quarterly limit is 1 percent.
Prior to processing any other repurchase requests, first priority is given to requests associated with the death of a shareholder; second priority is given to shareholders who demonstrate another involuntary exigent circumstance such as bankruptcy, and third priority is given to shareholders who are required to take a mandatory distribution under their individual retirement accounts.
The company repurchased all shares requests associated with the death or involuntary exigent circumstance of a shareholder in full and noted that there were no repurchase requests received due to mandatory distribution requirement under stockholder IRAs. For all other requests, the company repurchased based on a proration of approximately 49.5 percent of the shares made in the requests.
All outstanding repurchase requests will automatically roll over to the second quarter of 2019 and priority will be given to the repurchase requests as provided above.
As reported by The DI Wire in early October, the company declared an estimated net asset value of $5.33 per share, as of June 30, 2018. The company’s previously declared NAV per share was $9.26, which was later updated to $6.26 per share in connection with a $3.00 per share special cash distribution paid on March 16, 2018. Shares were originally sold for $10.00 each.
Shares are repurchased at a price equal to the most recent NAV per share, therefore, for the January 2019 repurchases, the price for all stockholders was $5.33 per share.
Carter Validus Mission Critical REIT owns a $1.2 billion portfolio comprised of 65 healthcare properties, as of October 2018. The company’s offering was declared effective by the SEC in December 2010 and closed in June 2014 after raising more than $1.7 billion in investor equity, according to Summit Investment Research.