Strategic Student & Senior Housing Trust to Pay Special Distribution to Stockholders

Strategic Student & Senior Housing Trust Inc., a publicly registered, non-traded real estate investment trust, recently released its third quarter 2024 letter to stockholders and distribution notice.

In the letter, the REIT announced that, as a result of the sale of its Fayetteville student housing property earlier this year, the trust was able to significantly reduce its debt obligations, increase liquidity and pay a $3.2 million distribution from the net sale proceeds. This distribution equates to approximately $0.24 per share and will be paid in cash to stockholders the week of December 16, 2024.

As previously reported by The DI Wire, the REIT had originally purchased the student housing property in 2017 for $57 million, excluding acquisition costs. The REIT sold the property for $72.25 million. The sale represented a strategic shift for the REIT, which no longer owns or operates student housing properties.

Additionally, the REIT also summarized its senior housing property operating results, as compared to the third quarter of 2023. The company said that its property revenues increased approximately $0.6 million, property operating expenses increased approximately $0.3 million, and property net operating income increased approximately $0.3 million. The company also reported that, as of Sept. 30, 2024, senior housing occupancies were approximately 91%, as compared to approximately 92% as of June 30, 2024.

In addition, the company also stated that its business plan for 2025 includes goals such as improving operational efficiencies, strategically investing in capital projects and improving net operating income, among other plans. Furthermore, the company added that it had met many of its goals for 2024, including paying off its KeyBank bridge loan through the sale of the Fayetteville property and the payment of a cash distribution to stockholders.

The REIT stated that it intends to continue to focus on improving the financial performance of each of its senior housing properties.

As of September 30, 2024, the REIT owned four senior housing properties. In January 2024, its board of directors approved an estimated net asset value per share of $6.34 for its Class A, Class T, Class W, Class Y, and Class Z shares. This represents an increase of approximately 4.3% from $6.08 NAV as of Dec. 31, 2022.

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