Carter Validus Mission Critical REIT Rumored to Be Considering Sale

March 3, 2017


Carter Validus Mission Critical REIT Rumored to Be Considering Sale

March 3, 2017 | by James Sprow | Blue Vault


SNL reported today that Carter Validus Mission Critical REIT Inc. is considering putting itself up for a sale that could value the company at more than $3.5 billion, according to a Reuters report, citing unnamed sources. The REIT’s most recently reported net asset value per share was $10.02 with 183.7 million weighted average shares outstanding as of September 30, 2016. If a sale materializes that provides full liquidity as rumored, the common shareholders may have a significant capital gain. Both listed data center REITs and healthcare REITs are currently trading at median premiums to net asset values according to SNL analysts.

The nontraded REIT, which in 2015 decided against an outright sale after its strategic review process in which Goldman Sachs Group Inc. served as its financial adviser, is exploring two separate deals for its data center and medical property portfolios, the sources told the news outlet.

The REIT is seeking acquirers for its data centers, which could pull in more than $1 billion, and is evaluating a possible sale and other options for the balance of its portfolio, the sources added, noting that no deal is guaranteed to take place.

Carter Validus did not immediately respond to Reuters’ comment requests.

Based in Tampa, Florida, Carter Validus was launched in 2010 as a vehicle for investors to gain exposure to healthcare and data center properties. The Company reported owning 83 properties as of September 30, 2016, with 63 in the healthcare sector and 20 data centers. The portfolio totaled over 6 million square feet of gross leasable area.

In recent years, data centers have been a source of steady dealmaking activity, as technology companies seek to scale up data operations to keep pace with U.S. businesses’ burgeoning demand for data and video.

Private equity firms or companies that specialize in data centers, such as Equinix Inc (EQIX.O) and Digital Realty Trust Inc DLR.O, have been active buyers of assets.

Sources:  SNL, Reuters


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Matthew C. Strife
Blue Vault Services
April 11, 2016

Blue Vault's services are without question great resources for the review of the nontraded products offered.