An Update on Carter Validus Mission Critical REIT II, Inc.’s Response to COVID-19
April 14, 2020
Tampa, FL – (BW) – The following is a letter provided by the CEO.
Dear Valued Stockholder,
I am following up on my earlier communication regarding COVID-19, which we posted to our website on March 17, 2020. The company’s advisor personnel successfully transitioned to a remote work environment, and we expect to sustain this approach through at least the end of this month as we remain uncertain of government and Centers for Disease Control guidance in respect to the health and safety of our advisor’s employees.
We believe we are well-positioned to weather the current economic turbulence, as we receive tenant requests for rental deferment in light of COVID-19 and are faced with the impact governmental restrictions are having on building occupancy and some of our core business activities (e.g., elective surgeries) within the healthcare sector. We have tenants unable to maintain sufficient activity in their buildings and/or have not been deemed essential services. Consequently, a few of our tenants have not been able to remain open for business. The number of tenants that requested rent deferrals to date, relative to the overall portfolio, is a minor share, and we anticipate a relatively short duration of these unprecedented circumstances. The company has cash and available liquidity of approximately $270 million, which equates to almost two times annual operating expenses and annual debt service based on our annualized 2019 fourth quarter results. Furthermore, we are confident in our ability to enforce our contractual lease rights when and where appropriate to ensure that tenants who can pay rent, do pay rent. Although we are sensitive to the current market conditions resulting from the pandemic and remain flexible to provide mutually beneficial solutions to certain tenants, it is our responsibility to you as stockholders to maximize the value of your investment in our company.
I thank each and every one of you for your continued support. I will continue to keep you updated as developments occur. Be safe and be well.
Sincerely,
Michael Seton
Chief Executive Officer and President
Carter Validus Mission Critical REIT II, Inc.
