Michael Seton, president and CEO of Sila Realty Trust, Inc., participated in a video interview at Nareit’s REITworld: 2022 Annual Conference held in San Francisco on Nov. 15-17.
Seton described the operating fundamentals that Sila is encountering today as “very strong,” adding that the company has a diversified portfolio ranging from higher to lower acuity assets. The portfolio is also diversified by geography, with assets in almost 30 states. Sila also has in excess of $400 million in liquidity to grow the balance sheet, he noted.
Sila has purchased a number of health care properties this year. Seton explained that SIla has been most attracted to medical office building and in-patient rehab facilities, with the rehab facilities benefitting from hospital sponsorship.
Prior to March, there was a tremendous amount of competition for health care assets, Seton said, but that has since gone from a situation of about 20-30 bidders per asset to perhaps one or two, “and we may be one of those bidders in certain cases.”
Meanwhile, Seton noted that while Sila is in a very strong balance sheet position, the company is also seeking liquidity for its stockholders. To that end, it intends to pursue a public listing in the near term, he said. Such a move will allow Sila to access different debt capital markets, in addition to the equity capital markets where it currently has more limited access.