SILA Realty Trust Inc. Investment Concerns?

If you invested in SILA Realty Trust Inc. (formerly known as Carter Validus Mission Critical REIT II), you may have concerns regarding your investment. Below, Soreide Law Group provides a quick summary of the investment, potential concerns for investors, and how a securities attorney can help.

Overview Of SILA Realty Trust Inc.

SILA Realty Trust Inc. (SILA) (formerly known as Carter Validus Mission Critical REIT II) is a non-traded real estate investment trust (REIT) specializing in healthcare properties. Evidently, SILA Realty Trust owns 137 healthcare properties, with total assets valued at $2.2 billion. The REIT’s portfolio is primarily focused on healthcare facilities, which are generally considered essential real estate assets due to their critical role in society. An example of SILA Realty Trust's investments includes radiation oncology properties operated by GenesisCare USA Inc., a significant tenant that recently filed for Chapter 11 bankruptcy protection.

Investor Concerns About SILA

Recent developments with SILA Realty Trust Inc. have raised concerns among investors. The company’s estimated net asset value (NAV) declined, and its shares have been trading below this adjusted NAV since listing on the New York Stock Exchange, signaling potential market skepticism. Additionally, the bankruptcy of a major tenant introduces financial uncertainty for the REIT. An unsolicited tender offer to purchase shares at a price much lower than the NAV may have also created liquidity concerns and market doubts about the company’s valuation.

Risks Of Investing In SILA Realty Trust Inc.

Investing in SILA Realty Trust Inc. involves significant risks, typical of non-traded REITs. These investments are generally illiquid. When a sale is possible, it often occurs at a substantial loss. REITs like SILA are usually meant for sophisticated investors with a high tolerance for risk. The decrease in SILA’s NAV, coupled with its trading price below its estimated value, creates investor concerns.

Brokers and financial advisors commit sales practice violations if they fail to adequately disclose these risks or recommend the investment to individuals for whom it was unsuitable. Common violations include unsuitable recommendations, misrepresentations, omissions, and breach of fiduciary duty. Investors who have suffered losses could pursue FINRA arbitration claims against the securities firms or advisors responsible for these sales.

Did You Sustain Losses?

Have you incurred losses because of investing in SILA? If so, contact Soreide Law Group online or at (888) 760-6552 and talk with a securities lawyer concerning a possible recovery of your investment losses. Soreide Law Group has recovered losses for investors throughout the United States, works on a contingency fee basis, and advances all costs.