Analyst Ratings Summary - DA Davidson analyst Rudy Kessinger initiated coverage on AvePoint, Inc. (AVPT) with a Buy rating and a price target of $20, while shares closed at $15.75 [6] - Wells Fargo analyst John Kilichowski initiated coverage on Sila Realty Trust, Inc. (SILA) with an Equal-Weight rating and a price target of $27, with shares closing at $25.62 [6] - BMO Capital analyst John Kim initiated coverage on Alexandria Real Estate Equities, Inc. (ARE) with an Outperform rating and a price target of $100, while shares closed at $85.89 [6] - B of A Securities analyst Koji Ikeda initiated coverage on Atlassian Corporation (TEAM) with a Neutral rating and a price target of $200, with shares closing at $170.63 [6] - Maxim Group analyst Tom Forte initiated coverage on Xcel Brands, Inc. (XELB) with a Buy rating and a price target of $3, while shares closed at $1.55 [6]

Group 1 - Sila Realty Trust has completed the acquisition of a two-property inpatient rehabilitation facility portfolio for a total of $70.3 million [1] - The acquisition reflects Sila Realty Trust's strategy to expand its healthcare real estate portfolio [1] - This transaction is expected to enhance the company's revenue and strengthen its position in the healthcare sector [1] Group 2 - The acquired properties are expected to provide stable cash flows due to the growing demand for rehabilitation services [1] - The investment aligns with industry trends indicating an increasing need for specialized healthcare facilities [1] - Sila Realty Trust continues to focus on strategic acquisitions to drive growth in the healthcare real estate market [1]

Core Insights - Healthcare stocks have remained stagnant since April, contrasting with a 27% rise in the S&P 500, which raises interest for contrarian investors [2] - Seven healthcare stocks offer yields up to 7.1%, indicating potential investment opportunities due to their underperformance relative to the broader market [2] Group 1: High Yield Healthcare Stocks - Omega Healthcare Investors (OHI) has a yield of 6.4% and operates skilled nursing and assisted living facilities, with a portfolio of 93,961 beds across over 1,000 properties [3] - OHI has shown progress by beating estimates for adjusted funds from operations (AFFO) and raising its full-year AFFO guidance, while also acquiring 57 properties [4] - LTC Properties (LTC) offers a 6.3% yield and is transitioning some contracts to RIDEA-structured contracts, which could enhance growth potential [7][8] - Healthpeak Properties (DOC) has a yield of 7.0% and a diversified portfolio, but may face growth challenges due to headwinds in its life sciences segment [10] - Sila Realty Trust (SILA) has a yield of 6.4% and has shown a nearly 20% total return since its IPO, with a strong financial position [11][12] - Siga Technologies (SIGA) offers a high yield of 7.1% but is concentrated on a single product, TPOXX, which limits diversification [13][21] - Bristol-Myers Squibb (BMY) has a yield of 5.3% and a market cap of nearly $100 billion, but has underperformed significantly over the past five years [14][15] - Pfizer (PFE) has a yield of 6.9% and is facing challenges with declining COVID drug sales and upcoming patent expirations, leading to a high yield not seen since the Great Recession [18][19] Group 2: Market Context and Challenges - The healthcare sector is facing uncertainties including potential cuts to Medicaid, health research funding, and initiatives aimed at lowering drug costs [6] - The overall healthcare market has underperformed compared to the S&P 500, with BMY experiencing a 25% decline in price over the past five years [15] - Pfizer is targeting over $7 billion in cost savings by the end of 2027, but its long-term prospects depend on the success of its product pipeline [19][20]

Core Insights - The author has over 10 years of experience researching companies across various sectors, including commodities and technology, which provides valuable insights for readers [1]. Company Research - The author has conducted in-depth research on over 1000 companies, covering industries such as oil, natural gas, gold, copper, and technology companies like Google and Nokia [1]. - The focus has shifted to a value investing-oriented YouTube channel after three years of blogging, where hundreds of companies have been researched [1]. - The preferred sectors for coverage include metals and mining stocks, along with comfort in consumer discretionary/staples, REITs, and utilities [1].

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) For H1 2025, Sila Realty Trust reported $97.0 million in revenues, net income decreased to $16.5 million, total assets reached $2.02 billion, and operating cash flow declined Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total real estate, net | $1,728,062 | $1,707,620 | | Cash and cash equivalents | $24,832 | $39,844 | | Total assets | $2,019,316 | $2,007,074 | | Credit facility, net | $578,490 | $521,921 | | Total liabilities | $661,368 | $603,889 | | Total stockholders' equity | $1,357,948 | $1,403,185 | Condensed Consolidated Statements of Comprehensive Income Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $48,732 | $43,554 | $96,988 | $94,193 | | Total operating expenses | $32,563 | $34,784 | $65,880 | $67,466 | | Net income | $8,598 | $4,628 | $16,496 | $19,608 | | Basic EPS | $0.16 | $0.08 | $0.30 | $0.34 | | Diluted EPS | $0.15 | $0.08 | $0.30 | $0.34 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Category | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $56,054 | $68,212 | | Net cash used in investing activities | ($68,101) | ($135,355) | | Net cash used in financing activities | ($2,965) | ($47,905) | | Net change in cash | ($15,012) | ($115,048) | - During the six months ended June 30, 2025, the Company purchased two real estate properties for a total cash consideration of **$59.5 million**[35](index=35&type=chunk)[36](index=36&type=chunk) - The Company recorded impairment losses on real estate of **$6.8 million** for the six months ended June 30, 2025, primarily related to the Stoughton Healthcare Facility following a lease rejection in bankruptcy by Steward Health Care System[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - On August 5, 2025, the Board authorized a quarterly cash dividend of **$0.40 per share**; subsequent to the quarter end, the company also acquired two healthcare properties for **$16.15 million** and authorized a new three-year, **$75 million** share repurchase program[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) H1 2025 rental revenue increased by 2.8%, but net income declined due to higher expenses, while liquidity remains strong with 90% of debt effectively fixed [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q2 2025 vs Q2 2024 Revenue Breakdown (in thousands) | Revenue Category | Q2 2025 | Q2 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Same store rental revenue | $42,817 | $41,207 | $1,610 | 3.9% | | Non-same store rental revenue | $1,847 | ($1,396) | $3,243 | 232.3% | | Total rental revenue | $48,544 | $43,554 | $4,990 | 11.5% | | Total revenues | $48,732 | $43,554 | $5,178 | 11.9% | - For Q2 2025, total operating expenses decreased by **6.4%** to **$32.6 million**, primarily due to the absence of **$2.9 million** in listing-related expenses incurred in Q2 2024 and lower depreciation and amortization, partially offset by a **$2.8 million** increase in impairment losses[130](index=130&type=chunk)[132](index=132&type=chunk) H1 2025 vs H1 2024 Revenue Breakdown (in thousands) | Revenue Category | H1 2025 | H1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Same store rental revenue | $81,071 | $78,160 | $2,911 | 3.7% | | Non-same store rental revenue | $7,690 | $8,447 | ($757) | (9.0)% | | Total rental revenue | $96,800 | $94,193 | $2,607 | 2.8% | | Total revenues | $96,988 | $94,193 | $2,795 | 3.0% | - For H1 2025, total operating expenses decreased by **2.4%** to **$65.9 million**, driven by lower general & administrative costs (down **$2.7 million**) and the absence of listing-related expenses (**$3.0 million** in 2024), but largely offset by a significant increase in impairment losses to **$6.8 million** from **$0.4 million** in the prior year[137](index=137&type=chunk)[139](index=139&type=chunk) - Interest expense for H1 2025 increased by **44.5%** to **$15.2 million** from **$10.5 million** in H1 2024, primarily due to a higher weighted average interest rate on the credit facility, driven by higher average borrowings and new interest rate swaps[140](index=140&type=chunk)[145](index=145&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) - The company's primary sources of funds are operating cash flows and its credit facility; as of June 30, 2025, **90%** of the company's outstanding debt was effectively fixed through hedging strategies, limiting exposure to interest rate fluctuations[141](index=141&type=chunk) - As of June 30, 2025, the company had **$24.8 million** in cash and cash equivalents; material cash requirements over the next twelve months are estimated at **$39.5 million**, including **$27.4 million** for interest payments, **$9.3 million** for unfunded loan commitments, and **$2.8 million** for lease obligations[149](index=149&type=chunk) - The company's Unsecured Credit Facility has total commitments of **$1.125 billion**; as of June 30, 2025, the outstanding principal balance was **$581 million**, leaving **$544 million** available for drawing[156](index=156&type=chunk)[157](index=157&type=chunk) [Non-GAAP Financial Measures](index=34&type=section&id=Non-GAAP%20Financial%20Measures) Reconciliation of Net Income to FFO, Core FFO and AFFO (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $8,598 | $4,628 | $16,496 | $19,608 | | FFO | $30,014 | $25,268 | $59,180 | $59,047 | | Core FFO | $30,106 | $30,069 | $59,713 | $66,229 | | AFFO | $29,997 | $30,845 | $59,445 | $69,130 | - The company uses FFO, Core FFO, and AFFO as supplemental performance measures; Core FFO adjusts for items like listing-related expenses and severance, while AFFO further adjusts for non-cash rent adjustments and stock-based compensation and is a metric used to evaluate the dividend policy[170](index=170&type=chunk)[171](index=171&type=chunk) - The decrease in Core FFO and AFFO for the six months ended June 30, 2025, compared to the same period in 2024, is partly because the 2024 period included **$4.1 million** of lease termination fee income[174](index=174&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk on variable-rate debt, which is actively managed through interest rate swaps - As of June 30, 2025, the company had **10** interest rate swap agreements with an aggregate notional amount of **$525 million**, fixing the interest rate on the majority of its debt[178](index=178&type=chunk) - The company is exposed to interest rate risk on **$56 million** of its total **$581 million** debt outstanding; a hypothetical **50 basis point (0.50%)** increase in market interest rates would result in an approximate **$280,000** increase in annual interest expense[181](index=181&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2025, the CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025[184](index=184&type=chunk) - There were no changes in internal controls over financial reporting during the three months ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[185](index=185&type=chunk) [PART II. OTHER INFORMATION](index=38&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any material pending legal proceedings affecting it or its properties - As of the filing date, the company is not a party to any material pending legal proceedings[187](index=187&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes from the risk factors set forth in the Annual Report on Form 10-K for the year ended December 31, 2024[188](index=188&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company repurchased 305,362 shares at an average of $24.09 per share, with $17.7 million remaining available under the program Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | — | $— | | May 2025 | 484 | $24.92 | | June 2025 | 304,878 | $24.09 | | **Total** | **305,362** | **$24.09** | - As of June 30, 2025, the company had up to the lesser of **1,195,122 shares** or **$17,656,000** available for repurchase under its Share Repurchase Program; a new, larger three-year program was authorized on August 4, 2025[194](index=194&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated any Rule 10b5-1 trading plans or other trading arrangements during Q2 2025 - No officers or directors adopted or terminated any Rule 10b5-1 trading plans during the second quarter of 2025[194](index=194&type=chunk)[195](index=195&type=chunk)

Financial Data and Key Metrics Changes - The company reported cash NOI of $41.9 million for Q2 2025, a 1.7% increase from Q2 2024, primarily driven by acquisitions [12] - AFFO was $0.54 per diluted share for Q2 2025, reflecting a 1.7% increase from Q2 2024, despite a 2.7% decrease year-over-year due to higher interest expenses [13][15] - The liquidity position at the end of the quarter was $568.8 million, with a net debt to EBITDAre ratio of 3.6 times [17] Business Line Data and Key Metrics Changes - The average EBITDARM coverage ratio improved to 5.31 times, up from 4.64 times in the previous year, indicating stronger tenant performance [16] - The company maintained a strong tenant base, with 40% associated with investment-grade rated tenants, up from 36.4% year-over-year [16] Market Data and Key Metrics Changes - The company closed on a two-property medical outpatient building portfolio for approximately $16.2 million, enhancing its operational synergies [20] - Year-to-date acquisitions totaled approximately $75 million, with over $70 million of properties under exclusive LOI [21] Company Strategy and Development Direction - The company focuses on necessity-based healthcare solutions, aiming to capitalize on the aging population and limited competition in its markets [5][19] - A strategic decision was made to demolish the Stoughton asset to halt expense leakage and maximize future land value [10][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow despite macroeconomic uncertainties, emphasizing a prudent capital allocation strategy [4][11] - The company aims to maintain a healthy dividend while pursuing growth through acquisitions and share repurchases [17] Other Important Information - The board approved a three-year share repurchase program for up to $75 million, with a cap of $25 million per year [15] - The company is currently under exclusive LOI for additional acquisitions, indicating a robust pipeline for future growth [21] Q&A Session Summary Question: What types of assets are included in the $70 million LOIs? - Management confirmed that the properties under LOI are consistent with their current portfolio and have long lease durations [25][26] Question: What is the current status of the Stoughton facility? - Management indicated that the demolition process is underway and will significantly reduce carrying costs [39][57] Question: How does the company evaluate share repurchases versus acquisitions? - Management stated that share repurchases are viewed as a tool, and decisions are based on the perceived disconnect between share price and intrinsic value [30][41] Question: What are the expectations for lease expirations in the near term? - Management is optimistic about renewing nearly all leases expiring in 2025 and 2026, with only minor exposures expected [42][46]

Financial Performance - Rental revenue for the three months ended June 30, 2025, was $48544 thousand[9] - Net income attributable to common stockholders for the three months ended June 30, 2025, was $8598 thousand[9] - EBITDAre for the three months ended June 30, 2025, was $37870 thousand[9] - FFO per common share - diluted was $054 for the three months ended June 30, 2025[9] - AFFO for the three months ended June 30, 2025, was $29997 thousand[9] Portfolio Metrics - The company had 136 properties as of June 30, 2025[9] - Rentable square feet was 5194 thousand as of June 30, 2025[9] - Weighted average leased rate was 992% as of June 30, 2025[9] - Triple net lease exposure was 999% as of June 30, 2025[9, 10] Debt and Liquidity - Principal debt outstanding was $581000 thousand as of June 30, 2025[11] - Net debt was $556168 thousand as of June 30, 2025[11] - Liquidity was $568832 thousand as of June 30, 2025[13]

Core Viewpoint - Sila Realty Trust (SILA) reported quarterly funds from operations (FFO) of $0.54 per share, matching the Zacks Consensus Estimate, and showing no year-over-year change [1] - The company posted revenues of $48.73 million for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.08%, but up from $43.55 million a year ago [2] Group 1: Financial Performance - FFO for the previous quarter was expected to be $0.54 per share, but the actual result was $0.53, resulting in a surprise of -1.85% [1] - Over the last four quarters, Sila has surpassed consensus FFO estimates only once [1] - The current consensus FFO estimate for the upcoming quarter is $0.55 on revenues of $49.67 million, and for the current fiscal year, it is $2.16 on revenues of $197.72 million [7] Group 2: Market Performance - Sila shares have increased by approximately 4% since the beginning of the year, compared to a 7.1% gain in the S&P 500 [3] - The estimate revisions trend for Sila was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 3: Industry Context - The REIT and Equity Trust - Other industry, to which Sila belongs, is currently in the top 40% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors [5]

[Sila Realty Trust Second Quarter 2025 Results](index=1&type=section&id=Sila_Realty_Trust_Second_Quarter_2025_Results) Sila Realty Trust reported strong Q2 2025 results, driven by strategic acquisitions, share repurchases, and solid financial performance [Overview and Highlights](index=1&type=section&id=Overview_and_Highlights) Sila Realty Trust reported $8.6 million net income for Q2 2025, acquiring properties, repurchasing shares, and declaring a $0.40 dividend Q2 2025 Key Financial Metrics | Metric | Value | Per Diluted Share | | :--- | :--- | :--- | | Net Income | $8.6 million | $0.15 | | Cash Net Operating Income (Cash NOI) | $41.9 million | N/A | | Adjusted Funds From Operations (AFFO) | $30.0 million | $0.54 | | Cash Distributions Paid | N/A | $0.40 | - Management emphasized a disciplined investment approach, focusing on acquiring net-lease healthcare properties and repurchasing shares at a perceived discount to intrinsic value[5](index=5&type=chunk) - The company achieved positive cash NOI growth compared to both the prior quarter and the same quarter last year, driven by strong leasing spreads on renewals[6](index=6&type=chunk) - Subsequent to the quarter end, on August 5, 2025, the board declared a quarterly cash dividend of **$0.40 per share**[7](index=7&type=chunk) - On August 4, 2025, the board authorized a new three-year share repurchase program for up to **$75.0 million**, with an annual limit of **$25.0 million**[7](index=7&type=chunk)[18](index=18&type=chunk) [Financial Performance](index=2&type=section&id=Financial_Performance) Q2 2025 GAAP net income nearly doubled to $8.6 million, Cash NOI rose to $41.9 million, and AFFO remained stable at $0.54 per share Net Income Comparison (in millions, except per share data) | Period | Net Income | Per Diluted Share | | :--- | :--- | :--- | | **Q2 2025** | **$8.6** | **$0.15** | | Q2 2024 | $4.6 | $0.08 | | **YTD 2025** | **$16.5** | **$0.30** | | YTD 2024 | $19.6 | $0.34 | Cash NOI Comparison (in millions) | Period | Cash NOI | Key Drivers | | :--- | :--- | :--- | | **Q2 2025** | **$41.9** | Acquisitions, contractual rent increases | | Q2 2024 | $39.9 | - | | **YTD 2025** | **$83.1** | Decrease due to prior year termination fees and vacancy | | YTD 2024 | $86.8 | - | AFFO Comparison (in millions, except per share data) | Period | AFFO | Per Diluted Share | | :--- | :--- | :--- | | **Q2 2025** | **$30.0** | **$0.54** | | Q2 2024 | $30.8 | $0.54 | | **YTD 2025** | **$59.4** | **$1.07** | | YTD 2024 | $69.1 | **$1.20** | [Real Estate Portfolio](index=2&type=section&id=Real_Estate_Portfolio) Sila acquired one healthcare property for $24.1 million, expanding its portfolio to 136 properties with 99.2% occupancy - Acquired one inpatient rehabilitation facility in Dover, Delaware for **$24.1 million**, comprising **42,140 rentable square feet**, 100% leased with an expiration in 2036[13](index=13&type=chunk) Portfolio Snapshot as of June 30, 2025 | Metric | Value | | :--- | :--- | | Number of Properties | 136 | | Rentable Square Feet | ~5.2 million | | Percentage Leased | 99.2% | | Weighted Avg. Remaining Lease Term | ~9.5 years | | Weighted Avg. Fixed Rent Escalation | 2.2% | - The percentage of square feet leased increased by **3.2 percentage points** in Q2 2025, largely because the vacant Stoughton Healthcare Facility was taken out of service[15](index=15&type=chunk) [Balance Sheet and Capital Markets](index=3&type=section&id=Balance_Sheet_and_Capital_Markets) Sila maintained strong liquidity of $568.8 million, with $581.0 million in debt, and authorized a new $75 million share repurchase program Liquidity and Debt Position as of June 30, 2025 | Metric | Value | | :--- | :--- | | Total Liquidity | ~$568.8 million | | Cash and Cash Equivalents | $24.8 million | | Credit Facility Availability | $544.0 million | | Total Principal Debt Outstanding | $581.0 million | | Weighted Average Interest Rate | 4.7% | | Net Debt to Enterprise Value | ~29.8% | - Of the **$581.0 million** in debt, **$525.0 million** was fixed through 10 interest rate swap agreements[17](index=17&type=chunk) - A new share repurchase program was authorized on August 4, 2025, allowing for up to **$75.0 million** in repurchases over three years, replacing the prior one-year program[18](index=18&type=chunk) [Distributions](index=3&type=section&id=Distributions) The Q2 2025 dividend payout to AFFO ratio was 74.0%, with a quarterly cash dividend of $0.40 per share declared - The dividend payout to AFFO ratio for Q2 2025 was **74.0%**[19](index=19&type=chunk) - A quarterly cash dividend of **$0.40 per share** was authorized on August 5, 2025, payable on September 4, 2025, to stockholders of record as of August 21, 2025[19](index=19&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated_Financial_Statements) Consolidated financial statements show total assets of $2.02 billion, with Q2 2025 total revenues of $48.7 million and net income of $8.6 million [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed_Consolidated_Balance_Sheets) The balance sheet details assets, liabilities, and equity, with total assets reaching $2.02 billion as of June 30, 2025 Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total real estate, net | $1,728,062 | $1,707,620 | | Cash and cash equivalents | $24,832 | $39,844 | | **Total assets** | **$2,019,316** | **$2,007,074** | | Credit facility, net | $578,490 | $521,921 | | **Total liabilities** | **$661,368** | **$603,889** | | **Total stockholders' equity** | **$1,357,948** | **$1,403,185** | [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Condensed_Consolidated_Statements_of_Comprehensive_Income) The income statement reports Q2 2025 total revenues of $48.7 million and net income of $8.6 million, with diluted EPS of $0.15 Income Statement Summary - Three Months Ended June 30 (in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Total revenues | $48,732 | $43,554 | | Total operating expenses | $32,563 | $34,784 | | **Net income** | **$8,598** | **$4,628** | | **Diluted EPS** | **$0.15** | **$0.08** | Income Statement Summary - Six Months Ended June 30 (in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Total revenues | $96,988 | $94,193 | | Total operating expenses | $65,880 | $67,466 | | **Net income** | **$16,496** | **$19,608** | | **Diluted EPS** | **$0.30** | **$0.34** | [Non-GAAP Financial Measures and Reconciliations](index=9&type=section&id=Non-GAAP_Financial_Measures_and_Reconciliations) This section reconciles non-GAAP measures like FFO, Core FFO, AFFO, and Same Store Cash NOI, providing definitions for investor understanding [Reconciliation of Net Income to FFO, Core FFO and AFFO](index=9&type=section&id=Reconciliation_of_Net_Income_to_FFO_Core_FFO_and_AFFO) This reconciliation details the adjustments from net income to FFO, Core FFO, and AFFO for Q2 2025 and Q2 2024 FFO, Core FFO, and AFFO Reconciliation Summary - Q2 2025 (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income | $8,598 | $4,628 | | FFO | $30,014 | $25,268 | | Core FFO | $30,106 | $30,069 | | AFFO | $29,997 | $30,845 | [Reconciliation of Net Income to Same Store Cash NOI](index=11&type=section&id=Reconciliation_of_Net_Income_to_Same_Store_Cash_NOI) This reconciliation details the adjustments from rental revenue to net operating income, Cash NOI, and Same Store Cash NOI Cash NOI Reconciliation Summary - Q2 2025 (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Rental revenue | $48,544 | $43,554 | | Net operating income | $42,553 | $37,705 | | Cash NOI | $41,889 | $39,878 | | Same store cash NOI | $40,383 | $39,802 | [Definitions of Non-GAAP Measures](index=10&type=section&id=Definitions_of_Non-GAAP_Measures) This section provides clear definitions for key non-GAAP financial measures, including FFO, Core FFO, AFFO, and Cash NOI - **FFO (Funds From Operations):** Calculated per Nareit's definition, starting with net income and excluding gains/losses from property sales, impairment losses, and real estate depreciation[33](index=33&type=chunk) - **Core FFO:** Adjusts FFO to remove non-cash items and unusual or infrequent items like listing-related expenses and severance to show sustainable performance[34](index=34&type=chunk) - **AFFO (Adjusted Funds From Operations):** Further adjusts Core FFO for items like deferred rent and stock-based compensation, serving as a key metric for management to evaluate dividend policy[35](index=35&type=chunk) - **Cash NOI (Cash Net Operating Income):** Defined as NOI excluding non-cash GAAP adjustments like straight-line rent, used to evaluate the cash-based performance of the real estate portfolio[43](index=43&type=chunk)

Group 1 - The investment group High Yield Landlord, led by Jussi Askola, provides real-time updates on a REIT portfolio and transactions, featuring three portfolios: core, retirement, and international [2] - The group offers buy/sell alerts and a chat room for direct interaction with Jussi and his team of analysts, enhancing member engagement and investment decision-making [2] - Jussi Askola, as President of Leonberg Capital, has extensive experience in REIT investing, having authored award-winning academic papers and built relationships with top REIT executives [2] Group 2 - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities, particularly in real estate strategies [1] - The approach has garnered over 500 five-star reviews from satisfied members, indicating a strong level of member satisfaction and perceived value [1]