Attached files
| file | filename |
|---|---|
| EX-99.3 - EXHIBIT 99.3 - Sila Realty Trust, Inc. | a20188-kexhibit993reitii09.htm |
| EX-99.2 - EXHIBIT 99.2 - Sila Realty Trust, Inc. | a20188-kexhibit992reitii09.htm |
| 8-K - 8-K - Sila Realty Trust, Inc. | a8kreitii09272018nav.htm |
Exhibit 99.1
October 1, 2018
Dear Stockholder,
Thank you for your investment in Carter Validus Mission Critical REIT II, Inc. We are writing today to provide you with an update regarding your investment, including information regarding the estimated net asset value (“NAV”) per share of each of our Class A common stock, Class I common stock, Class T common stock and Class T2 common stock recently determined by our board of directors (the “Board”).
We are pleased to report that on September 27, 2018, the Board, upon the recommendation of the audit committee of the Board, which is comprised solely of independent directors (the “Committee”), approved an estimated per share NAV of each of our Class A common stock, Class I common stock, Class T common stock and Class T2 common stock of $9.25 as of June 30, 2018 (the “Estimated Per Share NAV”). The Board determined the Estimated Per Share NAV in order to assist broker-dealers that participate, or participated, in our offering in connection with their obligations under National Association of Securities Dealers Conduct Rule 2340, as required by FINRA, with respect to customer account statements. The Board engaged Robert A. Stanger & Co., Inc. (“Stanger”), an independent third-party valuation firm, to calculate an estimated NAV and provide an appraised value of 70 of the 75 properties in our real estate portfolio as of June 30, 2018. In calculating the estimated NAV, Stanger also considered, among other things, appraisal reports prepared by third parties other than Stanger on five properties with valuation dates ranging from February 7, 2018 to May 22, 2018. The Committee, pursuant to authority delegated by the Board, was responsible for the oversight of the valuation process, including the review and approval of the valuation process and methodology used to determine the Estimated Per Share NAV, the consistency of the valuation and appraisal methodologies with real estate industry standards and practices and the reasonableness of the assumptions used in the valuations and appraisals. The Board directed the Committee to review Stanger’s valuation analysis and estimates and recommend the Estimated Per Share NAV of our Class A common stock, Class I common stock, Class T common stock and Class T2 common stock to the Board. The determination of the Estimated Per Share NAV was solely the decision of the Board.
Your account statement for the quarter ended June 30, 2018, reflected, and your account statement for the quarter ended September 30, 2018 will reflect, last year's Estimated Per Share NAV of $9.18 for each of our Class A common stock, Class I common stock, Class T common stock and Class T2 common stock. Your future quarterly account statements, however, will reflect the Estimated Per Share NAV of $9.25 for each of our Class A common stock, Class I common stock, Class T common stock and Class T2 common stock.
If you participate in our distribution reinvestment plan, pursuant to which your monthly distributions attributable to the class of shares owned are automatically reinvested in additional shares of the
same class, effective October 1, 2018, your distributions will be reinvested at $9.25 per share of each of our Class A common stock, Class I common stock, Class T common stock and Class T2 common stock.
In July 2018, the Board approved and adopted the fourth amended and restated share repurchase program (the “Amended & Restated SRP”), which was effective on August 29, 2018. The Amended & Restated SRP provides that the Company will repurchase shares on a quarterly, instead of monthly, basis. In accordance with the Company's Amended & Restated SRP, the per share repurchase price will be 100% of the most recent estimated value of the Class A shares, Class I shares, Class T shares or Class T2 shares, as applicable (in each case, as adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to the Company’s common stock). As a result of the Board’s determination of an estimated value of each of the Company’s shares of Class A common stock, Class I common stock, Class T common stock and Class T2 common stock, the Estimated Per Share NAV of $9.25 shall serve as the most recent estimated value for the Class A shares, Class I shares, Class T shares and Class T2 shares for purposes of the Amended & Restated SRP, effective October 1, 2018. We will either accept or reject a repurchase request on the last day of each quarter.
For a full description of the Amended & Restated SRP, please see our Current Report on Form 8-K that we filed with the U.S. Securities and Exchange Commission (the "SEC") on July 30, 2018.
It is important to keep in mind that the Estimated Per Share NAV of $9.25 is simply a snapshot as of a particular date, will fluctuate over time as we continue to purchase properties and potentially sell properties, and is not intended to represent the amount that you could expect to receive if you were to sell your shares of Class A common stock, Class I common stock, Class T common stock and/or Class T2 common stock now or if we liquidate in the future. Further, the various factors considered by the Board in determining the Estimated Per Share NAV were based on a number of assumptions and estimates that may not be accurate or complete. Subsequent estimates of our Estimated Per Share NAV will be prepared at least annually. For a description of the methodology and assumptions used to determine the Estimated Per Share NAV, please see our Current Report on Form 8-K that we filed with the SEC on October 1, 2018.
If you have any questions, please contact your Financial Advisor or our Investment Services team at (888) 292-3178.
Sincerely,
Michael A. Seton
Chief Executive Officer and President
Carter Validus Mission Critical REIT II, Inc.
Forward-looking Statements
This letter may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to the Company’s expectations regarding the performance of its business and the estimated net asset value per share of the Company’s common stock. Stanger relied on forward-looking information, some of which was provided by or on behalf of the Company, in preparing its valuation materials. Therefore, neither such statements nor Stanger’s valuation materials are intended to, nor shall they, serve as a guarantee of the Company’s performance in future periods. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as updated by the Company’s subsequent Quarterly Reports on From 10-Q for the periods ended March 31, 2018 and June 30, 2018 filed with the SEC. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements, including, but not limited to, the Company’s inability to pay a monthly distribution, the Company’s inability to maximize returns to investors and the Company’s inability to realize a wide variety of future liquidity opportunities. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Actual events may cause the value and returns on the Company’s investments to be less than that used for purposes of the Company’s estimated per share NAV.