Carter Validus Mission Critical REIT I and II Merge to Maximize Stockholder Value

Michael Seton, president and CEO of Carter Validus Mission Critical REIT, joined Nareit in New York for a video interview at REITweek: 2019 Investor Conference.

Seton said that as a diversified REIT, Carter Validus Mission Critical REIT likes the data center and medical sectors because they make up an estimated 25% of U.S. gross domestic product (GDP).

“We think it gives us a lot of opportunity to both buy assets as well as to have our assets grow in value over time,” Seton said.

Seton also mentioned Carter Validus Mission Critical REIT II, which he said has about double the amount of REIT I’s 60 assets. He said both REITs focus on the real estate first when considering acquisitions, including demographics, physical buildings, and the credit quality of the tenancy.

Seton discussed the recent merger of Carter Validus’ REIT I and REIT II, noting that the main reason was to maximize stockholder value.

“We think, ultimately, bigger is better,” Seton said. “It should bring a lower cost of capital and more opportunity for ultimate exit being on the data center side or being on the health care side.”