Sila Realty Trust Completes First Day on NYSE, Closes at $22.70
Sila Realty Trust Inc., a net lease real estate investment trust with a focus on healthcare assets, commenced trading its common stock on the New York Stock Exchange yesterday under the ticker symbol “SILA.” The REIT started the trading day at $19. At the close of trading, shares finished at $22.70, up 19.47%.
“Becoming a publicly traded company listed on the New York Stock Exchange marks a great milestone for Sila Realty Trust,” stated Michael A. Seton, president and chief executive officer of the company. “This achievement would not be possible without the diligent work of our outstanding team, our tenants, and our longtime stockholders who have supported us through the years.
As previously reported by The DI Wire, the Sila REIT, headquartered in Tampa, Fla., announced its plans to list on the NYSE in early April 2024.
Shortly thereafter, the company acknowledged that the price at which the common stock may list on the NYSE could be significantly lower or higher than its estimated per share net asset value of $29.92 as of Oct. 31, 2023. Prior to listing, the company effected a one-for-four reverse stock split for its outstanding shares of common stock on May 1, 2024, to align its common share price with a share price that is more typical for a publicly traded company. In connection with the listing, Sila commenced a modified “Dutch Auction” tender offer to purchase up to $50 million of the company’s outstanding common stock. This offer is ongoing.
“We strongly believe that our existing institutional quality and diverse portfolio of healthcare properties, along with our strategy of investing in net leased assets to leading operators along the continuum of the healthcare delivery system, provides investors with a differentiated opportunity in the REIT space,” added Seton. “Becoming publicly traded on the NYSE will provide the company with future access to scale capital through the public equity markets, which we believe will allow the company to further grow its robust and diverse portfolio of healthcare assets, and, consequently, enhance value to our stockholders.”
Upon announcing its plans to list, the Sila REIT touted its public company-readiness, at least partially based on a diversified portfolio of more than $2.1 billion of properties associated with some of the largest and most reputable healthcare operators in the country, including Post Acute Medical LLC; Baylor, Scott and White Health; Tenet Healthcare Corporation; and Cleveland Clinic Foundation.
Another real estate investment trust with a focus on clinical healthcare real estate properties, American Healthcare REIT Inc. (NYSE: AHR), went public earlier this year and recently reported Q1 2024 results. It followed Peakstone Realty Trust’s listing as a public company (NYSE: PKST) in April 2023. Results of the latter’s one-year performance were mixed.
As of March 31, 2024, the REIT had approximately $590 million in liquidity and a net debt leverage ratio of approximately 20.5%. As of June 13, the REIT has acquired seven high-quality properties in 2024 for an aggregate purchase price of approximately $135 million.
According to the Sila REIT, its disciplined and accretive approach to capital allocation and $500 million available under its revolving credit facility gave it the financial flexibility to pursue a direct listing on the NYSE rather than raising capital through a traditional initial public offering.
Including its latest acquisition in May – a medical outpatient building located in Reading, Penn., for $10.5 million – the Sila REIT’s current portfolio consists of 137 high-quality properties, including medical outpatient buildings, inpatient rehabilitation facilities, and surgical and specialty facilities. As of the end of March, the company had a weighted average lease rate of 99.2%, with 64.3% of its tenants, guarantors or affiliates having rated or investment grade rated credit. As a net lease REIT, Sila has longer lease terms with a weighted average remaining lease term of 8.4 years.
The Sila REIT said it aims to scale and grow to over $3 billion in enterprise value.
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