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Sila Realty Trust REIT Plans to List on the New York Stock Exchange

Sila Realty Trust Inc., a non-traded real estate investment trust focused on investing in U.S. healthcare properties (and formerly known as Carter Validus Mission Critical REIT II), announced that it intends to pursue a listing on the New York Stock Exchange in the late second quarter or early third quarter of 2024.

The company plans to list its common stock under the ticker symbol SILA. The listing is subject to, among other things, the REIT meeting the NYSE listing requirements and receiving NYSE listing authorization, as well as market conditions. There is no assurance as to whether, or when, the listing may be completed but its management and board of directors are optimistic.

“We are excited to announce our intention to list the company on the New York Stock Exchange, as we believe our existing institutional quality and diverse portfolio, along with our strategy of investing in real estate net leased to leading operators along the continuum of healthcare delivery provides a differentiated opportunity for investors in the REIT space,” said Michael A. Seton, Sila Realty Trust president and chief executive officer.

“Listing on the NYSE will provide our shareholders with liquidity optionality and should allow us to further grow the company, and, we believe, consequently enhance value to our shareholders, as we gain access to the public equity markets,” added Seton.

In anticipation of a listing event, the company’s amended and restated share repurchase program and amended and restated distribution reinvestment plan are suspended and terminated, respectively. The company announced that, despite the suspension of the SRP, it will honor those SRP submissions that meet the eligibility requirements through the end of the first quarter ended March 31, 2024. If the submissions are deemed to be in good order, it will honor those submissions approximately 30 days after the end of the first quarter. Any share repurchase requests received after March 31, 2024, or those deemed to be not in good order, shall not be processed and shall be considered canceled in full. Pursuant to the terms of the SRP, the SRP will immediately terminate upon consummation of a listing event.

The REIT’s DRIP will be terminated effective May 1, 2024. All participating DRIP stockholders will continue to receive their full declared distributions, which will be payable in cash as opposed to additional shares of common stock.

Prior to listing on the NYSE, on May 1, 2024, Sila Realty Trust will effectuate a one-for-four reverse stock split of all classes of common stock. The company’s most recently estimated per share net asset value, declared on Dec. 18, 2023, was $7.48 as of Oct. 31, 2023. The last sale of the company’s stock on LODAS Markets, an online secondaries market, was for $4.80 per share.

As a result of the reverse stock split, stockholders will receive one share of the company’s common stock for every four shares of its issued and outstanding common stock. The REIT expects to arrange for the disposition of fractional shares – or to pay cash for the fair value of fractional shares – that were owned prior to, or are the result of, the reverse stock split. Although the reverse stock split will reduce the total shares of common stock outstanding, it will have no material impact on stockholders as voting rights per share, percentage ownership interest in the company, and the dividend yield will remain the same.

Sila did not announce an intent to pursue an underwritten initial public offering to raise additional capital. As a result, current shareholders would be entitled to trade their shares upon the listing.  This contrasts with the recent underwritten IPO of American Healthcare REIT (NYSE: AHR), which completed an underwritten offering of 56 million shares of its common stock at $12.00 per share prior to its NYSE listing in February 2024. The pricing of the AHR offering was at a significant discount to its most recently adopted estimated NAV of $31.40 per share, as of Dec. 31, 2022. Original stockholders of AHR are precluded from trading their common stock until six months after the listing, Aug. 8, 2024.

Wells Fargo Securities is acting as financial adviser to the Sila REIT.

Sila Realty Trust Inc. is a net lease real estate investment trust headquartered in Tampa, Fla., with a strategic focus on investing in the significant, growing, and resilient healthcare sector of the U.S. economy. As of Dec. 31, 2023, Sila Realty Trust owned 131 real estate properties and two undeveloped land parcels located in 62 markets across the United States.

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