SILA Realty Trust has emerged as an investment in the healthcare real estate investment sector. As a net lease real estate investment trust (REIT), SILA operates at the intersection of real estate and healthcare. This article examines SILA Realty Trust’s investment focus and the challenges it encounters in today’s rapidly evolving economic environment. It also discusses the legal options that investors have with securities attorneys for inappropriate investment recommendations.
Who Is SILA Realty Trust Inc.?
Company Background and Investment Focus
SILA Realty Trust, Inc., formerly Carter Validus Mission Critical REIT II, is a prominent net lease REIT headquartered in Tampa, Florida. The company focuses on the healthcare sector. As of 2024, SILA has a market capitalization of $1.40 billion and an enterprise value of $1.86 billion. SILA primarily focuses on acquiring and managing premium healthcare facilities across the United States, capitalizing on the ongoing expansion in the healthcare sector.
SILA’s portfolio encompasses various healthcare properties, including medical office buildings, specialty hospitals, and outpatient facilities.
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$350 Million for Our Clients Nationwide.
Investor Concerns and Risks
How GenesisCare USA Bankruptcy Affects SILA Realty Trust
A significant challenge for SILA Realty Trust has been the bankruptcy filing of GenesisCare USA Inc. GenesisCare was a key tenant operating 17 radiation oncology and related-use properties owned by SILA. This development raised concerns among investors regarding SILA’s financial health and overall portfolio performance. The bankruptcy of such a significant tenant can potentially lead to reduced rental income and increased vacancy rates, impacting the REIT’s profitability.
Understanding Non-Traded REIT Risks
As a former non-traded REIT, SILA Realty Trust presents certain risks and significant costs that potential investors should consider. Non-traded REITs are high-risk and illiquid investments, rarely appropriate for retail investors seeking moderate growth or income. A significant concern is that SILA’s Net Asset Value (NAV) has decreased by 25% from its initial offering price. This substantial decline can significantly impact investor returns, emphasizing the importance of thorough due diligence before investing.
The limited liquidity of non-traded REITs can pose challenges for investors seeking to sell their shares. While non-traded REITs are often sold as reliable income generators, they are rarely suitable for retirees who need access to their funds. Although SILA’s recent listing on the New York Stock Exchange has improved trading accessibility, investors should remain cautious and aware of potential market fluctuations and price disparities.
To learn more about non-traded REITs, please refer to our informational video:
Key Takeaways on Investing in SILA Realty Trust
Prospective investors should carefully evaluate their financial objectives, risk tolerance, and SILA Realty Trust’s unique attributes before making investment decisions. If you have concerns regarding your investments or investment losses in SILA Realty Trust or similar REITs, consulting our experienced investment fraud attorneys can provide valuable insights and guidance on available options.
Our lawyers are nationwide leaders in investment fraud cases.
Frequently Asked Questions
What is the current NAV of SILA Realty Trust?
As of December 2023, SILA Realty Trust’s NAV was $7.48 per share, subject to fluctuations based on company performance and market conditions.
How does the bankruptcy of a major tenant affect SILA Realty Trust?
The bankruptcy of a major tenant like GenesisCare USA can impact SILA’s rental income and property occupancy rates. SILA has responded by divesting affected properties to maintain stability.
What are the liquidity options for investors in non-traded REITs?
Non-traded REITs like SILA may offer share buyback programs at NAV. SILA’s listing on the NYSE in June 2024 has enhanced investor liquidity options, even if it comes with a significant loss.
What steps can investors take if they face losses with SILA Realty Trust?
Investors experiencing losses may have recourse, particularly if the investment was unsuitable. They can file claims with the Financial Industry Regulatory Authority against advisors or firms that failed to disclose risks adequately. Investors should also reach out to a securities attorney like our firm at Meyer Wilson if they feel that they have suffered major losses or need guidance on their next steps with a non-traded REIT like this one.
Recovering Losses Caused by Investment Misconduct.
