Summit REIT Declares First Shareholder Distribution Since 2023 Difficulties
The board of directors of Summit Healthcare REIT Inc., a publicly registered non-traded real estate investment trust, declared a cash dividend of $0.045 per common share, payable to shareholders of record, as of April 17, 2025. The company intends to pay the dividend on April 30.
This marks the company’s first distribution in several years. According to Summit, the dividend reflects “renewed momentum, strengthened financial performance, and a forward-looking strategy designed to support ongoing shareholder value creation.”
“We’re proud to resume distributions to our shareholders, which speaks to the financial stability we’ve achieved over the last couple years,” said Elizabeth Pagliarini, chief executive officer of Summit. “We remain focused on maintaining a strong foundation while actively pursuing new opportunities that align with our strategic vision.”
Summit also said it anticipates continuing to make semi-annual distributions moving forward.
As part of its strategic growth plan, Summit is currently evaluating alternative opportunities in the senior housing and care sector. These initiatives are expected to not only support the company’s distribution program but also be accretive to long-term shareholder value.
“Our focus on seniors housing and care reflects both market opportunity and our commitment to investing in a sector with demographic tailwinds and resilient demand,” added Pagliarini. “We believe these investments will contribute meaningfully to both income generation and shareholder value over time.”
In September 2024, AltsWire reported that Summit Healthcare REIT sold a portfolio of three California skilled nursing facilities in San Bernardino County for $30 million, a transaction yielding an impressive internal rate of return over 50% on assets originally acquired in 2021.
Pagliarini said then that the profitable sale represented a key step for the REIT’s following reported difficulties in 2023 that included a significant decline in its net asset value. A May 2024 letter to shareholders from Pagliarini conceded that 2023 “was admittedly a frustrating year for Summit.” It highlighted its estimated net asset value as of Dec. 31, 2023, of $1.71, down 37.36% from the estimated $2.73 NAV in the year prior.
Based on its reported financial highlights for the 2024 fiscal year, Summit Healthcare REIT experienced a significant turnaround, swinging to a net income of $27.1 million from a $24.8 million net loss in 2023. This improvement was largely driven by gains on asset sales – which also helped increase net asset value per share to $2.19 from $1.71 – and a reduction in total operating expenses to $14.8 million from $33.4 million in 2023. While these property sales led to a decrease in total rental revenues to $9 million (from $18.1 million in 2023), the REIT saw a slight increase in resident fees and services and a substantial recovery in stockholder equity, moving from a $2 million deficit to $25.1 million.
Summit Healthcare REIT invests in senior housing real estate located throughout the United States. The current portfolio includes interests in 24 senior housing facilities in 10 states.
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