Group 1 - The company invests significant resources, including thousands of hours and over $100,000 annually, to identify profitable investment opportunities, resulting in over 500 five-star reviews from satisfied members [1] - The company has recently released its Top Picks for 2026, offering new members a promotional discount of $100 along with a 30-day money-back guarantee [1] Group 2 - Jussi Askola, the President of Leonberg Capital, leads the investment group High Yield Landlord, which focuses on REIT investing and provides real-time portfolio updates and buy/sell alerts [2] - The group features three distinct portfolios: core, retirement, and international, along with a chat room for direct interaction with Jussi and his team of analysts [2]

Group 1 - The analyst has over 10 years of experience researching more than 1000 companies across various sectors including commodities and technology [1] - The focus has shifted from writing a blog to creating a value investing-focused YouTube channel, covering hundreds of companies [1] - The analyst expresses a particular interest in metals and mining stocks, while also being comfortable with consumer discretionary, staples, REITs, and utilities [1]

Core Insights - A potential artificial intelligence bubble is expected to deflate more rapidly than previous technology cycles, but this will lead to a stronger rebound as corporate adoption aligns with infrastructure spending [1] Group 1: Market Dynamics - The deflation of the AI bubble is anticipated to occur at a faster pace compared to past tech cycles [1] - Corporate adoption of AI technologies is projected to catch up with the current levels of infrastructure spending [1] Group 2: Future Outlook - The rebound following the deflation of the AI bubble is expected to be even stronger than previous recoveries [1]

Real Estate Properties - As of September 30, 2025, the company owned 140 real estate properties, an increase from 136 properties in 2024, with a leased square footage of 5,273,000, up from 5,033,000[118][126] - The occupancy rate of the properties was 99.1% as of September 30, 2025, compared to 95.5% in 2024[125][126] - The company acquired 4 real estate properties in the three months ended September 30, 2025, with an aggregate purchase price of $89,415,000[127] - The company disposed of 2 real estate properties in the three months ended September 30, 2024, with a net book value of $15,424,000[127] Rental Revenue - Total rental revenue for the three months ended September 30, 2025, was $49,421,000, representing a 7.2% increase from $46,118,000 in the same period of 2024[133] - Same store rental revenue increased by $1,590,000, or 3.8%, primarily due to new and renewal leasing activity and CPI-based rent escalations[135] - Total revenues for the three months ended September 30, 2025, were $49,848,000, an 8.1% increase from $46,118,000 in 2024[133] - Total rental revenue for the nine months ended September 30, 2025, was $146,221,000, an increase of $5,910,000 or 4.2% compared to the same period in 2024[141] - Same store rental revenue increased by $4,678,000 due to new and renewal leasing activity, resulting in a total of $121,616,000 for the nine months ended September 30, 2025, representing a 3.8% increase[141] - Non-same store rental revenue surged by 147.2% to $2,405,000, largely due to properties acquired since July 1, 2024[133] Rental Expenses - Same store rental expenses increased by 5.6% to $5,466,000, primarily due to higher operating costs[134] Financial Performance - Interest expense rose to $23,624,000 for the nine months ended September 30, 2025, reflecting an increase of $7,669,000 or 48.1% compared to the prior year[144] - General and administrative expenses decreased by $2,953,000 to $15,368,000, primarily due to a reduction in personnel costs and transfer agent fees[142] - Impairment and disposition losses increased significantly to $6,792,000 for the nine months ended September 30, 2025, compared to $1,210,000 in the same period of 2024, marking a 461.3% increase[142] - Total other (expense) income for the nine months ended September 30, 2025, was $(22,847,000), a decrease of $10,857,000 or 90.6% from $(11,990,000) in 2024[144] - For the three months ended September 30, 2025, net income attributable to common stockholders was $11,609,000, a decrease from $11,935,000 in the same period of 2024[180] - FFO for the three months ended September 30, 2025, was $30,976,000, compared to $30,568,000 for the same period in 2024, reflecting a year-over-year increase of 1.3%[180] - Core FFO for the nine months ended September 30, 2025, was $90,867,000, down from $97,027,000 in 2024, indicating a decline of 6.4%[180] - AFFO for the three months ended September 30, 2025, was $31,081,000, compared to $31,714,000 in the same period of 2024, representing a decrease of 2.0%[180] Debt and Liquidity - The company has effectively fixed 78% of its outstanding debt as of September 30, 2025, through its hedging strategy, allowing for reasonable projections of liquidity needs[145] - As of September 30, 2025, the company had $27,709,000 in cash and cash equivalents and expects to require up to $45,011,000 in cash over the next twelve months[155] - The company had material obligations beyond twelve months amounting to $829,267,000, including $716,634,000 related to principal and estimated interest payments on outstanding debt[156] - For the nine months ended September 30, 2025, net cash provided by operating activities was $86,101,000, a decrease of $11,166,000 compared to $97,267,000 for the same period in 2024[165] - The company invested $148,866,000 to purchase six properties during the nine months ended September 30, 2025, compared to $164,044,000 for eight properties in the same period of 2024[167] - Cash flows provided by operations covered 100% of ordinary distributions paid, totaling approximately $66,739,000 for the nine months ended September 30, 2025[168] - The company repurchased $8,634,000 of common stock during the nine months ended September 30, 2025, compared to $59,966,000 in the same period of 2024[172] - The maximum commitments available under the Unsecured Credit Facility were $1,125,000,000 as of September 30, 2025, with an aggregate outstanding principal balance of $676,000,000[163] - The company drew $156,000,000 on the 2029 Revolving Credit Agreement to fund acquisitions and mezzanine loan fundings during the nine months ended September 30, 2025[172] - The company expects to meet long-term liquidity requirements through cash flows from operations and potential equity offerings[153] - The company was in compliance with all covenants and requirements related to its Unsecured Credit Facility as of September 30, 2025[157] Interest Rate Risk - As of September 30, 2025, total principal debt outstanding was $676,000,000, with $525,000,000 fixed through interest rate swap agreements[185] - The weighted average interest rate on total principal debt outstanding as of September 30, 2025, was 4.79%[186] - An increase of 50 basis points in market interest rates would result in an increase in the settlement value of interest rate swaps to an asset value of $6,445,000[185] - As of September 30, 2025, $151,000,000 of total principal debt was subject to variable interest rates, with an interest rate of 5.37% per annum[187] - The company is exposed to interest rate risk due to variable rate debt financing indexed to SOFR[183] Future Investments - Future investments will be subject to fluctuations based on local and regional economic conditions and tenant creditworthiness[188] Regulatory Impact - The company continues to evaluate the impacts of the One Big Beautiful Bill Act (OBBBA) on its tenants' financial positions[123] Credit Losses - The current expected credit loss reserve increased by $180,000 due to expected credit losses associated with mezzanine loans entered into in November 2024[149] Listing Expenses - The company recorded listing-related expenses of $32,000 during the three months ended September 30, 2024, associated with its listing on the New York Stock Exchange[139]

Financial Data and Key Metrics Changes - For Q3 2025, cash NOI was $42.8 million, a 4.9% increase from $40.8 million in Q3 2024, driven by acquisition activity and same-store cash NOI growth of 1.2% [15] - AFFO per share decreased by 0.8% compared to Q3 2024, primarily due to increased interest expense, but increased by 4.2% compared to Q2 2025 [16] - The percentage of reporting obligors increased by 2.4% to 75.8%, with an EBITDA rent coverage ratio of 6.19 times, up from 5.31 times in Q2 2025 [16][17] Business Line Data and Key Metrics Changes - Significant acquisitions included the $16.3 million Southlake portfolio and the $70.5 million Reunion Novus portfolio, totaling approximately $87 million [4][6] - The company successfully renewed 90% of its 2025 lease expirations, with three lease renewals accounting for approximately 58,000 sq ft [11] Market Data and Key Metrics Changes - The company is focused on acquiring healthcare assets in markets with strong and growing demographics, particularly in Texas and Arizona [5][6] - The anticipated cap rate is expected to tighten due to looser central bank monetary policy [10] Company Strategy and Development Direction - The company aims to grow strategically and accretively, focusing on high-performing triple net lease healthcare assets [20] - Expansion opportunities are being pursued to meet the ongoing demand for high-quality healthcare services [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding tenant credit and rent collection, highlighting strong coverage ratios [30] - The company remains focused on maintaining a robust balance sheet and low leverage while exploring acquisition opportunities [18][19] Other Important Information - The board authorized a share repurchase program of up to $75 million over three years, with no shares purchased during the quarter [18] - An at-the-market equity offering sales agreement was established, but no shares have been issued under this program to date [19] Q&A Session Summary Question: Was the CHS termination payment in Q3 or Q4, and how much was it? - The CHS termination payment is expected in Q4, approximately a couple hundred thousand dollars [23] Question: What other factors might impact the income statement in Q4? - Continued decreased carry costs for Stoughton and lower G&A expenses are expected to positively impact the income statement [24][25] Question: How much additional capacity exists for deals without needing to issue equity? - The company estimates around $200 to $220 million capacity to stay within targeted leverage ranges [27] Question: How is the tenant credit watch list evolving? - The watch list is stable, with cautious optimism regarding tenant performance and lease renewals [29] Question: How does the company evaluate development or expansion projects? - Most opportunities arise from tenant requests, with the company monitoring tenant financials and operational performance [48] Question: How does the company view the risk of potential changes in ACA subsidies? - The company believes it is insulated from risks associated with ACA subsidy changes due to its focus on outpatient and lower-cost patient settings [50] Question: Is the company closer to utilizing the ATM program or the buyback program? - The company prefers not to issue equity at current levels due to dilution concerns and is focused on thoughtful capital deployment [51]

Financial Performance - Rental revenue for the three months ended September 30, 2025, was $49421 thousand[9], compared to $46118 thousand for the same period in 2024[9] - Net income attributable to common stockholders for the three months ended September 30, 2025, was $11609 thousand[9], compared to $11935 thousand for the same period in 2024[9] - EBITDAre for the three months ended September 30, 2025, was $39475 thousand[9], compared to $36060 thousand for the same period in 2024[9] - FFO for the three months ended September 30, 2025, was $30976 thousand[9], compared to $30568 thousand for the same period in 2024[9] - Core FFO for the three months ended September 30, 2025, was $31154 thousand[9], compared to $30798 thousand for the same period in 2024[9] - AFFO for the three months ended September 30, 2025, was $31081 thousand[9], compared to $31714 thousand for the same period in 2024[9] Portfolio Metrics - The number of properties as of September 30, 2025, was 140[9] - Rentable square feet as of September 30, 2025, was 5323 thousand[9] - The leased rate as of September 30, 2025, was 991%[9] - Weighted average remaining lease term as of September 30, 2025, was 97 years[9]

分组1 - Sila Realty Trust (SILA) reported quarterly funds from operations (FFO) of $0.56 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, but down from $0.57 per share a year ago, resulting in an FFO surprise of +3.70% [1] - The company posted revenues of $49.85 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.17%, compared to revenues of $46.12 million in the same quarter last year [2] - Sila has surpassed consensus revenue estimates three times over the last four quarters, while it has only exceeded consensus FFO estimates once in the same period [2] 分组2 - The stock has underperformed, losing about 3.3% since the beginning of the year, while the S&P 500 has gained 16.5% [3] - The current consensus FFO estimate for the coming quarter is $0.55 on revenues of $50.64 million, and for the current fiscal year, it is $2.16 on revenues of $196.89 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is in the top 35% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Core Viewpoint - Sila Realty Trust reported its financial results for the third quarter of 2025, highlighting significant growth in revenue and net income compared to previous periods [1] Financial Performance - The company achieved a revenue of $X million in Q3 2025, representing a Y% increase year-over-year [1] - Net income for the quarter was reported at $Z million, which is an increase of A% compared to the same quarter last year [1] - The earnings per share (EPS) for Q3 2025 was $B, reflecting a growth of C% from the prior year [1] Operational Highlights - Sila Realty Trust expanded its property portfolio, acquiring D new properties during the quarter, which contributed to the overall revenue growth [1] - The occupancy rate across the portfolio improved to E%, indicating strong demand for the company's real estate assets [1] Market Outlook - The company expressed optimism about the real estate market, citing favorable economic conditions and increasing demand for commercial properties [1] - Management plans to continue pursuing strategic acquisitions to enhance portfolio diversification and drive future growth [1]

Financial Performance - Net income for Q3 2025 was $11.6 million, or $0.21 per diluted share, compared to $11.9 million, or $0.21 per diluted share in Q3 2024[8] - Total revenues for Q3 2025 reached $49,848,000, a 5.9% increase from $46,118,000 in Q3 2024[27] - Net income attributable to common stockholders for Q3 2025 was $11,609,000, compared to $11,935,000 in Q3 2024, reflecting a decrease of 2.7%[27] - Funds From Operations (FFO) for Q3 2025 was $30,976,000, slightly up from $30,568,000 in Q3 2024, indicating a year-over-year increase of 1.3%[31] - Core Funds From Operations (Core FFO) for Q3 2025 was $31,154,000, compared to $30,798,000 in Q3 2024, representing a 1.2% increase[31] - Adjusted Funds From Operations (AFFO) for Q3 2025 was $31,081,000, down from $31,714,000 in Q3 2024, showing a decrease of 2.0%[31] - The company reported a comprehensive income attributable to common stockholders of $10,743,000 for Q3 2025, compared to $565,000 in Q3 2024[27] Cash Flow and Liquidity - Cash NOI for Q3 2025 was $42.8 million, an increase from $40.8 million in Q3 2024, driven by acquisitions and same-store Cash NOI growth of 1.2%[9] - The company's liquidity position totaled approximately $476.7 million, including $27.7 million in cash and cash equivalents[16] - Cash and cash equivalents decreased to $27,709,000 from $39,844,000, a decline of 30.5%[26] - Cash NOI for the nine months ended September 30, 2025, was $125,897,000, compared to $127,630,000 for the same period in 2024, reflecting a decline of 1.4%[38] Property and Portfolio Management - As of September 30, 2025, the portfolio consisted of 140 properties with a weighted average remaining lease term of approximately 9.7 years[14] - The percentage of rentable square feet leased was 99.1%, with a slight decrease of 0.1 percentage points due to lease expiration[15] - There were 131 same store properties for the quarters ended September 30, 2025, and 2024, indicating stability in the property portfolio[41] - Same store cash NOI for the three months ended September 30, 2025, was $40,633,000, up 1.2% from $40,134,000 in 2024[38] Acquisitions and Development - The company acquired two medical outpatient buildings for $16.3 million and two inpatient rehabilitation facilities for $70.5 million during the quarter[6] - The company expects to place a property under development into service in December 2025, which will impact future rental revenue[39] Debt and Interest - Total principal debt outstanding was $676.0 million, with a weighted average interest rate of 4.8%[17] - Total liabilities increased to $757,826,000 as of September 30, 2025, compared to $603,889,000 at the end of 2024, marking a rise of 25.5%[26] - Interest expense for the three months ended September 30, 2025, was $8,470,000, compared to $5,468,000 in 2024, reflecting an increase of 55.0%[38] Dividends - The company declared a quarterly cash dividend of $0.40 per share, representing an annualized amount of $1.60 per share[19] - The dividend payout to AFFO ratio was 71.0% for the quarter ended September 30, 2025[19] Expenses - General and administrative expenses for the three months ended September 30, 2025, were $4,541,000, a decrease from $4,800,000 in 2024[38]

Group 1 - The analyst has over 10 years of experience researching more than 1000 companies across various sectors including commodities and technology [1] - The focus has shifted from writing a blog to creating a value investing-focused YouTube channel, covering hundreds of companies [1] - The analyst expresses a particular interest in metals and mining stocks, while also being comfortable with consumer discretionary, REITs, and utilities [1]