1315_Nareit Testimonials_Seton_2023-06-20_v2
07/11/2023 | by Diane Rusignola

Michael Seton, president and CEO of Sila Realty Trust, Inc., participated in a video interview at Nareit’s REITweek: 2023 Investor Conference, held in New York June 6-8.

Seton said Sila Realty Trust views itself as the only net lease REIT investing exclusively in the health care space “along the full continuum of health care delivery.” He said heading into the rising rate environment in the spring of 2022 when the Federal Reserve increased interest rates, the company was already well-hedged.

“However, we’ve now hedged the liability side of our balance sheet in excess of 93% today,” he said. “In fact, our average in place interest rate of our outstanding debt is approximately 3.5%.”

Turning to acquisitions, Seton said that although over the past year there was a significant expectation disconnect between buyer and seller, Sila is currently finding opportunities.

“Buyers were expecting cap rates to be significantly higher, and sellers were expecting essentially the former environment type cap rates,” he noted. “What we’re finding now today are much more realistic sellers.”

Seton also said that over the past two years, Sila has made “significant charter changes” to the company as well as refreshed its board in terms of experience and perspective.