Blue Owl Stretches Beyond AI, Acquires REIT for $2.4B

Blue Owl Capital took a break from its controversial artificial intelligence dealings to acquire a health care real estate investment trust.

Affiliates of the alternative asset investor agreed to purchase Tampa-based Sila Realty Trust for $2.4 billion, Bisnow reported. The purchase price comes to $30.38 per share in an all-cash transaction, a 19 percent premium on the stock’s Friday closing price.

As part of the deal, the Blue Owl funds will acquire 137 properties and three undeveloped parcels, spread across more than 60 markets in the United States. Most of the properties are occupied by a single tenant.

At the end of last year, Sila’s portfolio spanned 5.3 million square feet, much of which was concentrated in Texas and Florida. The properties were nearly 98 percent leased and sported an average remaining term of 10 years; only two properties were vacant at the end of last year.

Sila will pay its quarterly dividends for the first and second quarter and file earnings for the first quarter, but no longer plans to hold an earnings call. The deal is expected to close in the second or third quarter, at which point the company will be delisted from the New York Stock Exchange.

The stock surged upon the market’s opening on Monday in light of the acquisition news.

“This transaction provides us with a compelling opportunity to acquire a scaled portfolio with durable cash flows and attractive long‑term growth characteristics, while further expanding Blue Owl managed funds’ exposure to an asset class and sector we view as both resilient and essential,” Blue Owl co-president Marc Zahr said in a statement.

Sila’s net income dropped last year, from $42.7 million to $33.1 million. Last February, it closed on a $600 million revolving credit facility, which replaced a $500 million line of credit that was maturing.

Health care-focused REITs are all the rage these days thanks to their healthy fundamentals. This month, New York-based National Healthcare Properties filed for an IPO with the U.S. Securities and Exchange Commission. Last month, Janus Living — a Healthpeak Properties spinoff — raised roughly $878 million in net proceeds through its IPO, exceeding expectations of a $740 million raise for the Denver-based real estate investment trust.

The perceived safety of the sector could buttress Blue Owl from the growing turmoil around its AI bets, which included a $3 billion equity infusion into a data center being built for Meta in Louisiana.

Blue Owl capped redemptions on a pair of its funds this month and its stock has declined by 35 percent year-to-date.

— Holden Walter-Warner