StratCap Digital REIT Keeps Distributions Frozen, Board Still Weighing Sale or Liquidation
StratCap Digital Infrastructure REIT told stockholders in a July 8 letter that its board has not decided on a course of action in the formal strategic alternatives review it launched in April, and that distributions will remain suspended into the third quarter.
The board authorized the strategic alternatives review process on April 28, as AltsWire reported at the time, citing volatility in digital infrastructure markets and a difficult fundraising environment for retail investment channels. The company simultaneously terminated its public offering and distribution reinvestment plan, suspended monthly cash distributions, and partially suspended its share repurchase program. The board engaged an independent financial adviser to evaluate options including a sale of the company or its assets, a merger or recapitalization, an orderly liquidation, or continuing to operate on a modified standalone basis.
In the July letter, the company said the review “is progressing, but the board has not determined to pursue any specific strategic alternative at this time.” The board has not authorized a distribution for the third quarter of 2026, extending the suspension first disclosed in April, and the share repurchase program remains suspended except for repurchases connected to stockholder death or qualifying disability.
The letter also said the company is finalizing its net asset value per share as of June 30 under a shift from monthly to quarterly valuations, a change the company had flagged as a possibility in April. The company said it will file the updated NAV once its board approves it.
The update follows a December 2025 asset sale in which the REIT sold a portfolio of 48 wireless towers for approximately $55.1 million, generating net proceeds of about $38.5 million after debt repayment. The company said at the time it believed the sale was executed at an attractive price. It continues to hold a joint-venture interest in roughly 150 additional cell tower sites.
In the letter, Jim Condon, president of the REIT and chairman of its board, said the company’s sponsor remains its largest stockholder and reiterated its “close alignment” with investors, adding that the company would keep stockholders informed as the review proceeds.
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