TAMPA, Fla.--(BUSINESS WIRE)--August 06, 2025-- 

Sila Realty Trust, Inc. (NYSE: SILA) ("Sila", the "Company", "we", or "us"), a net lease real estate investment trust ("REIT") with a strategic focus on investing in the growing and resilient healthcare sector, today announced operating results for the second quarter ended June 30, 2025.

Highlights for the quarter ended June 30, 2025:

   --  Net income of $8.6 million, or $0.15 per diluted share 
 
   --  Cash net operating income*, or Cash NOI, of $41.9 million 
 
   --  Adjusted funds from operations*, or AFFO, of $30.0 million, or $0.54 
      per diluted share 
 
   --  Declared and paid cash distributions per share of $0.40 for the 
      quarter 
 
   --  Acquired an inpatient rehabilitation facility for $24.1 million in 
      Dover, Delaware 

Subsequent Events

   --  On August 5, 2025, the Company's board of directors, or the Board, 
      authorized a quarterly cash dividend of $0.40 per share of common stock 
      payable on September 4, 2025, to the Company's stockholders of record as 
      of the close of business on August 21, 2025 
 
   --  Acquired two medical outpatient buildings for $16.2 million in 
      Southlake, Texas 
 
   --  On August 4, 2025, the Board authorized a share repurchase program of 
      up to $75.0 million in gross purchase proceeds for a period of 
      three-years from August 4, 2025, subject to the limitation of $25.0 
      million in gross purchase proceeds in any twelve-month period 

Management Commentary

"Continuing our disciplined and strategic approach to investing through the first six months of 2025, we allocated capital toward growing Sila's portfolio of high quality, net-lease healthcare properties and purchasing outstanding shares at a price that we believe to be a significant discount to the intrinsic value of the Company," stated Michael A. Seton, President and Chief Executive Officer of the Company.

"We realized cash NOI growth this quarter when compared to both the preceding quarter and the prior year's same quarter, and positive leasing spreads on all leases renewed during the quarter. Despite headline news surrounding the U.S. economic and legislative landscape, our focus on necessity-based healthcare solutions, partnering with operators that deliver better outcomes for patients in convenient locations, and our triple-net lease structures, allows us to remain optimistic in our ability to continue our success going forward."

*Some of the financial measures throughout this press release are non-GAAP measures. Refer to the Non-GAAP Financial Measures Reconciliation tables at the end of this press release for additional information and reconciliations to the most directly comparable GAAP measure.

Financial Results

Net Income

Our GAAP net income for the second quarter of 2025 was $8.6 million, or $0.15 per diluted share, compared to $4.6 million, or $0.08 per diluted share, for the second quarter of 2024. Our GAAP net income for the first half of 2025 was $16.5 million, or $0.30 per diluted share, compared to $19.6 million, or $0.34 per diluted share for the first half of 2024.

Cash NOI

Cash NOI was $41.9 million for the second quarter of 2025, as compared to $39.9 million for the second quarter of 2024. The increase in Cash NOI is primarily the result of acquisitions and second quarter 2025 Cash NOI increases at our same store properties compared to the second quarter of 2024, primarily as a result of contractual rent increases. This increase was partially offset by the vacancy of the Stoughton Healthcare Facility as a result of the Steward Healthcare bankruptcy.

Cash NOI was $83.1 million for the first half of 2025, as compared to $86.8 million for the first half of 2024. The decrease in Cash NOI is primarily due to the receipt of a lease termination fee and the severance fee received from GenesisCare USA, Inc. and its affiliates in the first quarter of 2024, the vacancy of the Stoughton Healthcare Facility as a result of the Steward Healthcare bankruptcy, and property dispositions. This decrease was partially offset by acquisitions and Cash NOI increases at our other same store properties in the first half of 2025, compared to the first half of 2024, primarily as a result of contractual rent increases.

AFFO

AFFO was $30.0 million, or $0.54 per diluted share, during the second quarter of 2025, compared to $30.8 million, or 0.54 per diluted share, during the second quarter of 2024.

AFFO for the first half of 2025 was $59.4 million, or $1.07 per diluted share, compared to $69.1 million, or $1.20 per diluted share, for the first half of 2024.

Real Estate Portfolio Highlights

Investment Activity

During the quarter ended June 30, 2025, the Company acquired one healthcare property in Dover, Delaware, comprising 42,140 rentable square feet, for a purchase price of $24.1 million. The property is 100% leased under an absolute-net lease to a joint venture between Bayhealth and PAM Health with a lease expiration in 2036.

Portfolio

As of June 30, 2025, Sila's well diversified real estate portfolio consisted of 136 properties comprising approximately 5.2 million rentable square feet. The weighted average remaining lease term was approximately 9.5 years with 22.1% of annualized base rent maturing in the next five years and a weighted average fixed rent escalation rate of 2.2%, excluding leases tied to the consumer price index.

As of June 30, 2025, the percentage of rentable square feet leased was 99.2%. There was a 3.2 percentage point increase in the percentage of square feet leased in the second quarter of 2025. This increase was largely attributable to taking the Stoughton Healthcare Facility out of service during the second quarter.

Balance Sheet and Capital Markets Activities

Sila had a strong balance sheet and liquidity position totaling approximately $568.8 million, consisting of $24.8 million in cash and cash equivalents and $544.0 million of availability under its unsecured credit facility as of June 30, 2025.

Total principal debt outstanding under the unsecured credit facility as of June 30, 2025, was $581.0 million. Of the $581.0 million, $525.0 million was fixed through 10 interest rate swap agreements. As of June 30, 2025, the Company's weighted average interest rate on the total principal debt outstanding was 4.7%, including the impact of the interest rate swap agreements. As of June 30, 2025, net debt to enterprise value was approximately 29.8%.

On August 4, 2025, the Board authorized a share repurchase program of up to $75.0 million in gross purchase proceeds for a period of three-years from August 4, 2025, subject to the limitation of $25.0 million in gross purchase proceeds in any twelve-month period. Repurchases of common stock under the share repurchase program may be made from time to time in the open market, in privately negotiated purchases, in accelerated share repurchase programs or by any other lawful means. The number of shares of common stock purchased and the timing of any purchases will depend on a number of factors, including the price and availability of common stock and general market conditions. The three-year share repurchase program replaces the prior one-year share repurchase program authorized on August 16, 2024, which allowed for the repurchase of up to the lesser of 1.5 million shares of the Company's outstanding common stock or $25.0 million in gross purchase proceeds.

Distributions

The Company's dividend payout to AFFO ratio was 74.0% for the quarter ended June 30, 2025. On August 5, 2025, the Board approved and authorized a quarterly cash dividend of $0.40 per share of Common Stock payable on September 4, 2025, to the Company's stockholders of record as of the close of business on August 21, 2025. The quarterly cash dividend of $0.40 per share represents an annualized amount of $1.60 per share.

Conference Call and Webcast

A conference call and audio webcast for investors and analysts will be held on Thursday, August 7, 2025, at 11:00 a.m. Eastern Time to discuss our second quarter 2025 operating results and to answer questions. The live and archived webcast can be accessed on the "Events" page of the Company's website at investors.silarealtytrust.com or by direct link at https://events.q4inc.com/attendee/283338166. The archived webcast will be available for 12 months following the call.

About Sila Realty Trust, Inc.

Sila Realty Trust, Inc., headquartered in Tampa, Florida, is a net lease real estate investment trust with a strategic focus on investing in the growing and resilient healthcare sector. The Company invests in high quality healthcare facilities along the continuum of care in the pursuit of generating predictable, durable, and growing income streams. Sila's portfolio comprises high quality tenants in geographically diverse facilities, which are positioned to capitalize on the dynamic delivery of healthcare to patients. As of June 30, 2025, the Company owned 136 real estate properties, two undeveloped land parcels and one property taken out of service, located in 67 markets across the United States. For more information, please visit the Company's website at www.silarealtytrust.com.

Forward-Looking Statements

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