Sila Realty Trust Inc.
12/16/2024 | Press release | Distributed by Public on 12/16/2024 15:55
Regulation FD Disclosure Form 8 K
Item 7.01 Regulation FD Disclosure.
GenesisCare Update
As previously disclosed by Sila Realty Trust, Inc. (the "Company"), GenesisCare USA, Inc. and its affiliates ("GenesisCare"), the sponsor and owner of the tenant in certain of the Company's real estate properties, announced that it filed for Chapter 11 bankruptcy protection under the United States Bankruptcy Code on June 1, 2023 and emerged from bankruptcy on February 16, 2024. On October 24, 2024, the Company entered into a contract for sale with a buyer for the Yucca Valley Healthcare Facility, which was previously leased to GenesisCare.
On December 10, 2024, the Company, through a wholly-owned subsidiary of its operating partnership, Sila Realty Operating Partnership, LP (the "Operating Partnership"), completed the sale of the Yucca Valley Healthcare Facility. The contractual sales price of the Yucca Valley Healthcare Facility was $1.7 million, and the Company generated net proceeds of approximately $1.6 million, after transaction costs, subject to additional transaction costs that will be paid subsequent to the closing date.
On December 13, 2024, the Company, through a wholly-owned subsidiary of the Operating Partnership (the "Landlord"), entered into a new triple-net lease agreement (the "Lease Agreement"), effective December 13, 2024, with the Regents of the University of California (the "Tenant") for the El Segundo Healthcare Facility, which was previously leased to GenesisCare. The Lease Agreement has an initial 10-year term, subject to two consecutive 5-year renewal options exercisable by the Tenant (subject to certain conditions).
Interest Rate Swap Agreements
On November 27, 2024, the Company entered into two interest rate swap agreements, which have an effective date of December 31, 2024 and an aggregate notional amount of $150.0 million. Additionally, on December 6, 2024, the Company entered into two interest rate swap agreements, which have an effective date of December 31, 2024 and an aggregate notional amount of $100.0 million. The four swaps have a maturity date of March 20, 2029, and a weighted average fixed interest rate of 3.76%, and were entered into to replace five interest rate swaps with an aggregate notional amount of $250.0 million that have a maturity date of December 31, 2024.
The information furnished under Item 7.01 of this Current Report on Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section and shall not be deemed to be incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended. The furnishing of this information is not intended to constitute a representation that such furnishing is required by Regulation FD or other securities laws, or that the information includes material investor information that is not otherwise publicly available. In addition, the Company does not assume any obligation to update such information in the future.