Sila Realty Trust Sells 29 Data Centers for $1.3 Billion, Declares NAV and Special Distribution

Sila Realty Trust Inc., a publicly registered, non-traded real estate investment trust formerly known as Carter Validus Mission Critical REIT II, has sold a 29-property data center portfolio to Mapletree Industrial Trust, a real estate investment trust listed on the Singapore Exchange, for $1.32 billion.

The original total acquisition cost of the portfolio, including capital improvements on the properties, was approximately $965.2 million.

“The sale of the data center portfolio represents a substantial gain for the company and firmly positions Sila Realty Trust Inc. as a pure-play healthcare REIT,” said Michael Seton, chief executive officer and president.

The REIT’s board also approved an updated estimated net asset value of $9.95 per share for the company’s Class A, Class I, Class T, and Class T2 as of May 31, 2021. The previous NAV per share was $8.69 as of September 30, 2020.

The increased NAV was primarily attributed to the increase in the fair market value of the properties owned by the company. Cushman & Wakefield, an independent third-party valuation firm, assisted with the valuation process.

Sila’s board also declared a $1.75 per share special distribution for the company’s Class A, Class I, Class T, and Class T2 common stock.

The sale price of the data center transaction generated net proceeds of approximately $1.26 billion after transaction costs, loan payoff costs and other prorations. The company repaid approximately $854 million in debt at the time of closing.

The special distribution will be paid in cash around July 29, 2021, to stockholders of record at the close of business on July 26, 2021.

“By opportunistically taking advantage of a constructive data center market, we are pleased that we are able to distribute meaningful cash liquidity to our stockholders well in advance of the liquidity time frame set forth during our initial offering, while also reducing leverage to position the company for future growth as a pure-play healthcare REIT in the publicly traded markets,” added Seton.

Sila Realty Trust invests in what it deems as “high-quality healthcare properties leased to tenants capitalizing on critical and structural economic growth drivers.”

The REIT raised approximately $1.2 billion in investor equity after launching its initial primary offering in May 2014. Its follow-on offering closed in November 2018 and raised $129.3 million, and as of May 31, 2021, it owned 124 healthcare properties.

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Sila Realty Trust to Sell its Data Center Portfolio to Singapore-Listed REIT

Sila Realty Trust Inc., a publicly registered, non-traded real estate investment trust formerly known as Carter Validus Mission Critical REIT II, has agreed to sell its entire 29-property data center portfolio to subsidiaries of Mapletree Industrial Trust, a REIT listed on the Singapore Exchange, for more than $1.3 billion.

“This action marks another key step in Sila Realty Trust’s evolution to provide a clear path for the company to pursue a strategy as a pure-play healthcare REIT,” said Michael Seton, chief executive officer and president. “Upon closing this transaction, we will continue to be focused on enhancing the value of our company through internal and external growth opportunities which, we believe, will maximize optionality to achieve liquidity for our stockholders within the timeframe communicated during our offering.”

The transaction is expected to be completed in one or more closings during the third quarter of 2021.

As of March 31, 2021, Sila Realty Trust owned 153 real estate properties, consisting of 29 data centers and 124 healthcare properties located in 70 markets across the United States with a total purchase price of approximately $3.2 billion, including capital expenditures on development properties placed into service.

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Sila Realty Trust Recommends Shareholders Reject Comrit Tender Offer

Sila Realty Trust Inc., a publicly registered, non-traded real estate investment trust formerly known as Carter Validus Mission Critical REIT II, has sent a letter to its shareholders recommending that they reject an unsolicited tender offer made by Comrit Investments 1 LP.

Comrit is offering to purchase up to 399,334 Class A shares and 99,834 Class T shares of the REIT’s common stock for $6.01 per share in cash. Comrit’s offer price is less than 70 percent of the REIT’s net asset value per share of $8.69, declared in December 2020. Shares were originally priced at $10.00 each.

“We believe the Comrit offer represents an attempt by Comrit to catch current stockholders of the company off guard and acquire the shares at a low price in order to make a profit and, as a result, deprive the stockholders that tender their shares of the company’s common stock of the full potential long-term value of the shares,” the letter stated.

Sila Realty Trust focuses on net-leased data center and healthcare properties and raised approximately $1.2 billion in investor equity after launching its initial primary offering in May 2014. Its follow-on offering closed in November 2018 and raised $129.3 million.

As of September 30, 2020, the REIT owned 153 real estate properties, consisting of 29 data centers and 124 healthcare properties located in 70 markets across the United States. In October 2020, the company completed an internalization transaction and changed its name from Carter Validus Mission Critical REIT II to Sila Realty Trust.

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Sila Realty Trust Increases Net Asset Value Per Share

The board of Sila Realty Trust Inc., a publicly registered, non-traded real estate investment trust, has declared a net asset value per share of $8.69 for its Class A, Class I, Class T, and Class T2 shares of common stock, as of September 30, 2020.

In October 2020, the REIT completed an internalization transaction and changed its name from Carter Validus Mission Critical REIT II to Sila Realty Trust.

The REIT’s previous net asset value per share is $8.65, as of October 31, 2019. Shares originally sold for $10.00 each.

The NAV per share is based on the estimated value of the company’s assets ($3.5 billion), less the estimated value of its liabilities ($1.5 billion), divided by the number of outstanding shares (221.5 million), all as of September 30, 2020.

Last year, total assets were $3.3 billion, total liabilities were $1.4 billion, and there were 221.4 million shares outstanding.

Cushman & Wakefield Western Inc., a third-party firm, assisted with the valuation process and appraised 152 of the 153 properties in the REIT’s real estate portfolio.

“The increase in the estimated value of our same-store real estate portfolio, which drove a net increase in the NAV of the company, signals strength and stability in the total portfolio, while also demonstrating the effectiveness of our proactive response to challenges faced during the unprecedented COVID-19 pandemic,” said Michael Seton, president and chief executive officer.

He added, “Although pandemic-driven macroeconomic trends, particularly reductions in market interest rates as a result of the Federal Reserve’s support for the economy, impacted our interest rate hedges and borrowings, and an increase in debt incurred in conjunction with completing the internalization transaction contributed to the offset, we anticipate the projected cost savings from the company’s recently internalized management structure and our experienced administration of the portfolio will continue to drive stockholder value in the future.”

Sila Realty Trust focuses on net-leased data center and healthcare properties and raised approximately $1.2 billion in investor equity after launching its initial primary offering in May 2014. Its follow-on offering closed in November 2018 and raised $129.3 million.

As of September 30, 2020, the REIT owned 153 real estate properties, consisting of 29 data centers and 124 healthcare properties located in 70 markets across the United States.

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Sila Realty Trust Reports Third Quarter 2020 Results

Sila Realty Trust Inc., a publicly registered non-traded real estate investment trust formerly known as Carter Validus Mission Critical REIT II, announced operating results for the third quarter of 2020.

Financial Results

Net income (loss) attributable to common stockholders was $5.3 million for the quarter ended September 30, 2020, an increase of 155 percent, compared to net loss attributable to common stockholders of $9.6 million for the same period last year.

Funds from operations, or FFO, attributable to common stockholders was $33.5 million for the quarter ended September 30, 2020, an increase of 71 percent, compared to $19.6 million for the same period last year.

Modified funds from operations, or MFFO, attributable to common stockholders was $27.9 million for the quarter ended September 30, 2020, an increase of 78 percent, compared to $15.7 million for the same period last year.

Adjusted funds from operations, or AFFO, attributable to common stockholders was $29 million for the quarter ended September 30, 2020, an increase of 77 percent, compared to $16.4 million for the same period last year.

Operating Results

Net operating income, or NOI, was $58.6 million for the quarter ended September 30, 2020, an increase of 57 percent, compared to $37.3 million for the same period last year.

Rental revenue was $70.7 million for the quarter ended September 30, 2020, an increase of 47 percent, compared to $48.1 million for the same period last year.

Same store NOI was $39.2 million for the quarter ended September 30, 2020, an increase of 6 percent, compared to $37.1 million for the same period last year.

The REIT noted that the increases in financial and operating results during the periods presented above are primarily the result of 67 operating property acquisitions, including 60 properties acquired in the merger with Carter Validus Mission Critical REIT Inc., since July 1, 2019, one of which was sold on May 28, 2020.

Portfolio Overview

On September 8, 2020, the company purchased a multi-tenant healthcare property with 100 percent occupancy, located in the Tampa market, for $11 million.

During the third quarter of 2020, the company wrote off approximately $1.3 million of intangible assets, intangible liabilities, accounts receivable and tenant reimbursements related to two tenants in two data center properties that were experiencing financial difficulties due to deteriorating economic conditions driven by the impact of the COVID-19 pandemic and the pandemic’s acceleration of the tenant’s modification of work strategy to a remote environment.

As of September 30, 2020, the company owned 153 real estate properties, located in 70 markets, comprising approximately 8.7 million rentable square feet with total purchase price of approximately $3.1 billion. The company’s properties had a weighted average occupancy of 94.1 percent and weighted average remaining lease term of 9.5 years.

During the three months ended September 30, 2020, the company entered into one COVID-related rent concession with a tenant in a data center property.

As of September 30, 2020, the company entered into 30 rent concessions and lease modifications with tenants impacted by COVID-19 and collected approximately 98 percent of rental revenue originally contracted for the period.

Balance Sheet and Liquidity

As of September 30, 2020, the company had total principal debt outstanding of $1.4 billion, consisting of $454.5 million of notes payable and $983 million of the credit facility with a net debt leverage ratio (the ratio of principal debt outstanding less cash to fair market value of real estate plus the total aggregate cost of properties acquired after the net asset value date of October 31, 2019) of 42.1 percent.

The company’s outstanding debt was comprised of 66.4 percent fixed rate debt (including debt fixed through the use of interest rate swaps) and 33.6 percent variable rate debt.

During the three months ended September 30, 2020, the company drew $45 million on its credit facility related to a healthcare property acquisition and the internalization transaction.

As of September 30, 2020, the company had liquidity of approximately $230.7 million, consisting of $75.5 million in cash and cash equivalents and $155.2 million in borrowing base availability on the credit facility.

Internalization Transaction

On July 28, 2020, the REIT (under its former name, Carter Validus Mission Critical REIT II) agreed to purchase all assets from its former advisor, Carter Validus REIT Management Company II, and their affiliates, effectively internalizing the company’s management structure.

The REIT agreed to pay total consideration of $40 million in cash in connection with the internalization transaction, of which $25 million was paid at the time of closing on September 30, 2020, and the balance will be paid over the next 18 months.

At the closing of the internalization transaction, the REIT hired 76 employees previously employed by an affiliate of the former advisor, including key executives.

As a result of the transaction, the company anticipates its expenses will decrease by approximately $18 million on an annualized basis starting in the fourth quarter of 2020 due to the elimination of asset management, property management and other various fees that would have otherwise been paid to the former advisor.

Sila Realty Trust, which invests in healthcare properties and data centers, owned 153 real estate properties, consisting of 29 data centers and 124 healthcare properties located in 70 markets across the United States, as of September 30, 2020.

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Carter Validus Mission Critical REIT II Completes Internalization and Changes Name

Carter Validus Mission Critical REIT II Inc., a publicly registered non-traded real estate investment trust, has internalized management and changed its name to Sila Realty Trust Inc.

The plans were announced in July after the REIT and Carter Validus Operating Partnership II LP (now named Sila Realty Operating Partnership LP) agreed to purchase all of the assets from its fomer sponsor and advisor, Carter Validus REIT Management Company II and Carter Validus Advisors II, respectively.

As a result of the transaction, the company anticipates its expenses will decrease by approximately $18 million on an annualized basis starting in the fourth quarter of 2020 due to the elimination of asset management, property management and other various fees that would have otherwise been paid to the sponsor.

The company said previously that the internalization cost would be approximately $40 million, payable over an approximately two-year period.

Employees and key executives previously employed by the former sponsor are now employees of Sila Realty Trust through a subsidiary.

“In addition to the significant annual cost savings we expect to achieve, we believe that the transaction will be transformational to the strategic direction of the company as we continue to focus on delivering stockholder value by investing in properties that benefit from macro and microeconomic growth drivers in the economy,” said Michael Seton, chief executive officer and president.

John E. Carter agreed to resign as a director, effective on September 30, 2020, and the board reduced its size to five members, four of whom are independent. The board also established a compensation committee and a nominating and corporate governance committee.

The REIT’s most recent net asset value per share is $8.65, as of October 31, 2019.

Sila Realty focuses on net-leased data center and healthcare properties and raised approximately $1.2 billion in investor equity after launching its initial primary offering in May 2014. Its follow-on offering closed in November 2018 and raised $129.3 million. As of June 30, 2020, the company owned 152 real estate properties, consisting of 29 data centers and 123 healthcare properties located in 69 markets across the United States, aggregating approximately $3.1 billion in invested assets.

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Carter Validus Mission Critical REIT II Releases 2Q20 Financial Results

Carter Validus Mission Critical REIT II Inc., a publicly registered non-traded real estate investment trust focused on net-leased data center and healthcare properties, has released its operating results for the second quarter of 2020.

Quarter Ended June 30, 2020 and Subsequent Highlights

  • Net income attributable to common stockholders totaled $11.1 million; net income attributable to common stockholders per diluted share totaled $0.05.
  • Net operating income, or NOI, totaled $58 million.
  • Funds from operations, or FFO, attributable to common stockholders equaled $33.7 million; FFO attributable to common stockholders per diluted share totaled $0.15.
  • Modified funds from operations, or MFFO, attributable to common stockholders equaled $27.7 million; MFFO attributable to common stockholders per diluted share totaled $0.13.
  • Adjusted funds from operations, or AFFO, attributable to common stockholders equaled $28.6 million; AFFO attributable to common stockholders per diluted share totaled $0.13.
  • On May 28, 2020, the company sold one healthcare property and recognized an aggregate gain on sale of $2.7 million.
  • On July 28, 2020, the company entered into a definitive agreement to provide for the internalization of its external management functions for approximately $40 million, payable over an approximately two-year period. The internalization is expected to close on September 30, 2020.
  • On July 29, 2020, the company announced that it intends to change its name to Sila Realty Trust, Inc. immediately following the closing of the internalization.

“We are working diligently to close the recently announced internalization transaction…,” said Michael Seton, chief executive officer and president. “Although interest costs and an increase in third-party fees related to the internalization impacted the quarter’s per share results, our same store portfolio results remained strong as our experienced team continues to anticipate and proactively resolve COVID-19 driven tenant issues.”

Financial Results

  • Net income attributable to common stockholders was $11.1 million for the second quarter of 2020, an increase of 76 percent compared to net income attributable to common stockholders of $6.3 million for the same period in 2019.
  • FFO attributable to common stockholders was $33.7 million for the quarter ended June 30, 2020, an increase of 54 percent compared to $21.9 million for the same period in 2019.
  • MFFO attributable to common stockholders was $27.7 million for the quarter ended June 30, 2020, an increase of 55 percent compared to $17.9 million for the same period in 2019.
  • AFFO attributable to common stockholders was $28.6 million for the quarter ended June 30, 2020, an increase of 54 percent compared to $18.6 million for the same period in 2019.

Operating Results

  • NOI was $58 million for the quarter ended June 30, 2020, an increase of 58 percent compared to $36.8 million for the same period in 2019.
  • Rental revenue was $68.9 million for the quarter ended June 30, 2020, an increase of 47 percent compared to $46.9 million for the same period in 2019.
  • Same store NOI was $37.1 million for the quarter ended June 30, 2020, an increase of 0.8 percent compared to $36.8 million for the same period in 2019.

The company said that the increases in financial and operating results (excluding same store NOI) during the periods presented above are primarily the result of 66 operating property acquisitions, inclusive of 60 properties acquired in the merger with Carter Validus Mission Critical REIT, since April 1, 2019, one of which was sold on May 28, 2020.

Portfolio Overview

During the second quarter of 2020, the company disposed of one healthcare property, located in the San Antonio market, for $35 million, consisting of $7 million cash paid at closing and the origination of a $28 million note receivable, which generated net proceeds of $6.1 million. The company said that the aggregate gain on sale was $2.7 million.

As of June 30, 2020, the company owned 152 real estate properties, located in 69 markets, comprising approximately 8.6 million rentable square feet with a total purchase price of approximately $3.1 billion. The company’s properties had a weighted average occupancy of 93.7 percent and weighted average remaining lease term of 9.6 years.

As of June 30, 2020, the company entered into 29 rent concessions and lease modifications with tenants impacted by COVID-19 and collected approximately 97 percent of rental revenue originally contracted for such period.

Balance Sheet and Liquidity

As of June 30, 2020, the company had total principal debt outstanding of nearly $1.4 billion, consisting of $455.6 million of notes payable and $938 million of the credit facility with a net debt leverage ratio of 41 percent.

The company’s outstanding debt was comprised of 61 percent fixed rate debt (including debt fixed through the use of interest rate swaps) and 39 percent variable rate debt.

During the second quarter of 2020, the company repaid $65 million on its credit facility.

As of June 30, 2020, the company had liquidity of approximately $266.3 million, consisting of $74.8 million in cash and cash equivalents and $191.5 million in borrowing base availability on the credit facility.

Internalization Transaction

On July 28, 2020, the company entered into a definitive agreement to purchase all assets from Carter Validus REIT Management Company II LLC, Carter Validus Advisors II LLC and their affiliates necessary to operate the business of the company and its subsidiaries for approximately $40 million, payable over an approximately two-year period, with $25 million to be paid at closing, $7.5 million to be paid on March 31, 2021, and $7.5 million to be paid on March 31, 2022. The internalization is expected to close on September 30, 2020.

In May 2020, the REIT partially suspended its share repurchase program, citing the uncertainty surrounding the coronavirus (COVID-19) pandemic. The suspension affects repurchase requests that would otherwise be processed on the third quarter repurchase date of July 30, 2020.

The REIT will continue to process repurchases due to death in accordance with the terms of its share repurchase program. The company said that unprocessed requests will automatically roll over to be considered for repurchase when it fully reopens its share repurchase program, unless withdrawn.

Carter Validus Mission Critical REIT II raised approximately $1.2 billion in investor equity after launching its initial primary offering in May 2014, and its follow-on offering closed in November 2018 and raised $129.3 million. As of June 30, 2020, the company owned 152 real estate properties, consisting of 29 data centers and 123 healthcare properties located in 69 markets across the United States.

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Carter Validus Mission Critical REIT II to Internalize Management and Rebrand

Carter Validus Mission Critical REIT II Inc., a publicly registered non-traded real estate investment trust, has agreed to internalize management by purchasing all of the assets from its sponsor and advisor.

In addition, the company plans to change its name to Sila Realty Trust Inc. immediately following the closing of the transaction, which is expected on September 30, 2020.

Total consideration will be paid in cash and consists of approximately $40 million paid over an approximately two-year period, with $25 million to be paid at closing, $7.5 million to be paid on March 31, 2021, and $7.5 million to be paid on March 31, 2022.

The REIT expects its general and administrative expenses to decrease by approximately $18 million on an annualized basis starting in 2021 primarily because it will no longer pay any acquisition, asset management, construction management, property management or disposition fees to affiliates of the sponsor, Carter Validus REIT Management Company II LLC.

The company entered into employment agreements with its current key executive officers that will be effective upon closing.

According to a filing with the Securities and Exchange Commission, John Carter resigned as the chairman of the board and was replaced by Jonathan Kuchin, who has served as an independent director and the chairman of the board’s audit committee since April 2014. Once the transaction closes, Carter will resign as a director.

The REIT claims that it will be organized in a way that is preferable to equity analysts and institutional investors should the board decide to list the company’s securities on a national securities exchange in the future.

“We are excited to embark on this latest evolution of our company, a natural progression from our merger last year with Carter Validus Mission Critical REIT Inc., which we believe strengthens our corporate governance by eliminating many perceived conflicts of interest and better aligning the interests of management with those of our stockholders,” said Michael Seton, chief executive officer and president.

“Furthermore, we expect that the internalization transaction will provide substantial cost savings to the company over time, better situating the company to explore potential liquidity options in the future,” he added.

Carter Validus Mission Critical REIT II completed its merger with affiliated REIT, Carter Validus Mission Critical REIT, in October 2019.

Carter Validus Mission Critical REIT II invests in data centers and healthcare facilities, and as of March 31, 2020, the company owned a portfolio of 153 real estate properties, consisting of 29 data centers and 124 healthcare properties, purchased for approximately $3.1 billion. The company raised approximately $1.2 billion in investor equity after launching its initial primary offering in May 2014, and its follow-on offering closed in November 2018 and raised $129.3 million.

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Carter Validus Mission Critical REIT II Urges Shareholders to Reject Comrit Tender Offer, Provides COVID-Related Rent Update

The board of Carter Validus Mission Critical REIT II Inc., a publicly registered non-traded real estate investment trust, is urging shareholders to reject an unsolicited tender offer made by Comrit Investments 1 LP.

Comrit is offering to purchase up to 798,669 Class A shares and 199,667 Class T shares for $6.01 per share. No offer is being made for the REIT’s Class T2 or Class I shares. The offer expires on June 30, 2020.

The REIT’s most recent net asset value per share is $8.65, as of October 31, 2019, nearly 44 percent higher than the $6.01 per share Comrit offer price.

In a letter to REIT shareholders, the board said that it believes Comrit’s tender offer represents “an opportunistic attempt to purchase shares at a low share price and make a profit…”

In late April, Carter Validus Mission Critical REIT II partially suspended its share repurchase program, except for the death of a shareholder, citing the uncertainty surrounding the coronavirus (COVID-19) pandemic. The company also reached its 1.25 percent share repurchase limit for the second quarter of 2020 and will not be able to fully process all repurchase requests.

“…The outbreak of COVID-19, together with the resulting restrictions on travel and quarantines imposed, has had a negative impact on the economy and business activity globally,” stated Carter Validus Mission Critical REIT II in the letter. “The extent to which our business may be affected by COVID-19 will largely depend on future developments with respect to the continued spread and treatment of the virus, which we cannot accurately predict.”

Comrit and its affiliates currently own approximately 269,800 Class A shares, 1.2 million Class T shares and 272,331 Class T2 shares of Carter Validus Mission Critical REIT II, or approximately 0.2 percent of the outstanding Class A shares, 3 percent of the Class T shares, and 7.9 percent of the Class T2 shares.

In other company news, Carter Validus Mission Critical REIT II issued a COVID-19 related update to its investors, indicating that since the onset of the pandemic, it has received tenant requests for rent deferment and abatement.

“In the vast majority of cases in which we allowed tenants to defer rent, repayment of such deferred amounts is due within six to 12 months,” the company said in a letter to shareholders. “For a limited number of requests, we provided an abatement of rent in conjunction with a multi-year lease extension, in which cases we anticipate such extensions adding value to the corresponding property and overall company portfolio.”

For the months of April and May, the REIT said that it collected approximately 97 percent and 94 percent of contractual rent, respectively. However, when deferred rents and other tenant accommodations are excluded, collections are 99 percent in April and 98 percent in May.

The REIT noted that the total amount of deferment and abatement granted to tenants is equal to approximately 1.75 percent of the total annual contractual revenue in 2020, which it does not anticipate being material to its near-term liquidity or ability to cover current monthly distributions.

Carter Validus Mission Critical REIT II invests in data centers and healthcare facilities, and as of December 31, 2019, the company owned a $3.2 billion portfolio of 153 real estate properties. The company raised approximately $1.2 billion in investor equity after launching its initial primary offering in May 2014, and its follow-on offering closed in November 2018 and raised $129.3 million.

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Carter Validus Mission Critical REIT II Partially Suspends Share Repurchase Program

The board of Carter Validus Mission Critical REIT II, a publicly registered non-traded real estate investment trust, has partially suspended its share repurchase program, citing the uncertainty surrounding the coronavirus (COVID-19) pandemic. The company also disclosed that it has reached its 1.25 percent share repurchase limit for the second quarter of 2020 and will not be able to fully process all repurchase requests.

The share repurchase program suspension goes into effect with repurchase requests that would otherwise be processed on the third quarter repurchase date, which is expected to be July 30, 2020.

However, the REIT will continue to process repurchases due to death in accordance with the terms of its share repurchase program. The company said that unprocessed requests will automatically roll over to be considered for repurchase when it fully reopens its share repurchase program, unless a stockholder withdraws the request for repurchase 15 days prior to the next announced repurchase date.

During any calendar year, Carter Validus Mission Critical REIT II will not repurchase more than 5 percent (1.25 percent quarterly) of the number of shares outstanding on December 31st of the previous calendar year.

The company also limits the amount of distribution reinvestment plan proceeds used to fund share repurchases in each quarter to 25 percent of the amount of DRIP proceeds received during the previous calendar year.

Additionally, the company has reached the DRIP funding limitation during the 2020 second quarter repurchase date, therefor not all repurchase requests will be fully processed.

First priority is given to requests associated with the death of a shareholder, then to shareholders who demonstrate another involuntary exigent circumstance such as bankruptcy, and finally 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 8.25 percent of the shares made in the requests.

All outstanding repurchase requests will automatically roll over when the company fully reopens its share repurchase program.

In other company news, Carter Validus Mission Critical REIT II is urging investors to reject an unsolicited tender offer made by MacKenzie Realty Capital, as reported by The DI Wire last week.

Carter Validus Mission Critical REIT II invests in data centers and healthcare facilities, and as of December 31, 2019, the company owned a $2.8 billion portfolio of 152 real estate properties. The company raised approximately $1.2 billion in investor equity after launching its initial primary offering in May 2014, and its follow-on offering closed in November 2018 and raised $129.3 million.

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