Sila Realty Trust, Inc.(SILA)

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Sila Realty Trust, Inc.(SILA) - 2024 Q3 - Earnings Call Transcript
2024-11-12 22:01
Financial Data and Key Metrics Changes - GAAP net income for Q3 2024 was $11.9 million or $0.21 per diluted share, down from $15 million or $0.26 per diluted share in Q3 2023 [38] - Cash NOI for Q3 2024 was $40.8 million, a decrease of 7.6% from $44.2 million in Q3 2023 [39] - AFFO for Q3 2024 was $31.7 million or $0.57 per diluted share, a decrease of 7.1% from $34.1 million or $0.60 per diluted share in Q3 2023 [43] Business Line Data and Key Metrics Changes - The company reported cash NOI increases at other same-store properties of 2.2% or approximately $765,000 compared to Q3 2023 [39] - The portfolio consisted of 136 properties in 65 markets, with a weighted average remaining lease term of 8.3 years, up from 8.2 years last quarter [28] Market Data and Key Metrics Changes - The company’s portfolio weighted average lease rate decreased by 2% to 95.5% from 97.5% due to the reduction of approximately 181,000 lease square feet related to a property formerly leased to Steward [29] - 68% of ABR from tenants who provided financial reporting maintained a strong EBITDARM coverage ratio of 4.82 times [31] Company Strategy and Development Direction - The company focuses on investing in high-quality healthcare properties, particularly in medical outpatient buildings, inpatient rehab facilities, and surgical and specialty facilities [16] - The company aims to leverage its low leverage fortified balance sheet and strong capital position to pursue investment opportunities [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the investment thesis due to demographic trends, with an increasing number of patients expected in healthcare facilities [12] - The company anticipates greater acquisition opportunities in 2025, particularly in the Sunbelt region [60] Other Important Information - The company announced a share repurchase program and completed a tender offer buying approximately $50 million of outstanding shares [19] - The Board of Directors approved a change in the frequency of the company's distributions from monthly to quarterly, effective in 2025 [52] Q&A Session Summary Question: Can you talk about the acquisition pipeline and pricing? - Management noted an increasing volume of potential transactions and emphasized a focus on outpatient medical facilities in the Sunbelt region [60] Question: What about the EBITDARM coverage disclosures? - Management clarified that 10 properties fall under the one times EBITDARM coverage, with 50% affiliated with large national healthcare systems [64] Question: What is the primary use of the Staunton facility? - Management stated they are agnostic to the use of the property and have engaged a broker to market it [67] Question: What is the interest rate on the Lynchburg mezzanine loans? - The interest rate is characterized as mid-teens for both loans, with draws expected to begin later this month [72] Question: What was the revenue impact from the Steward property? - The revenue impact from the Steward property was approximately $275,000 for the quarter [75] Question: Can you share the cap rate on the Arkansas acquisition? - Management does not disclose cap rates on acquisitions but indicated it fits within their expected range [88]
Sila Realty Trust, Inc.(SILA) - 2024 Q3 - Quarterly Report
2024-11-12 21:33
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-42129 SILA REALTY TRUST, INC. (Exact name of registrant as specified in its cha ...
Sila Realty Trust, Inc.(SILA) - 2024 Q3 - Quarterly Results
2024-11-12 11:31
Financial Performance - Net income for Q3 2024 was $11.9 million, or $0.21 per diluted share, compared to $15.0 million, or $0.26 per diluted share in Q3 2023[8]. - Adjusted funds from operations (AFFO) for Q3 2024 were $31.7 million, or $0.57 per diluted share, compared to $34.1 million, or $0.60 per diluted share in Q3 2023[13]. - Total revenue for the three months ended September 30, 2024, was $46,118,000, a decrease of 5.0% compared to $48,542,000 for the same period in 2023[33]. - Net income attributable to common stockholders for the three months ended September 30, 2024, was $11,935,000, down 20.0% from $14,983,000 in the prior year[33]. - Funds From Operations (FFO) for the three months ended September 30, 2024, was $30,568,000, down 7.5% from $33,055,000 in the prior year[35]. - Rental revenue for the three months ended September 30, 2024, was $46,118,000, a decline of 5.0% compared to $48,542,000 in the same period of 2023[42]. - Net operating income (NOI) for the three months ended September 30, 2024, was $40,295,000, down 6.0% from $43,537,000 in the same period of 2023[42]. - Adjusted Funds From Operations (AFFO) for the three months ended September 30, 2024, was $31,714,000, a decrease of 7.0% from $34,128,000 in the same period of 2023[35]. - Same store cash NOI for the three months ended September 30, 2024, was $36,924,000, a slight decrease of 0.6% from $37,142,000 in the same period of 2023[42]. - The company reported a comprehensive income attributable to common stockholders of $565,000 for the three months ended September 30, 2024, down from $17,298,000 in the prior year[33]. Cash Flow and Liquidity - Cash net operating income (Cash NOI) for Q3 2024 was $40.8 million, down from $44.2 million in Q3 2023, primarily due to lost Cash NOI from dispositions[9]. - The company had a strong balance sheet with approximately $528.6 million in total liquidity as of September 30, 2024[18]. - Cash and cash equivalents decreased significantly to $28,606,000 from $202,019,000 as of December 31, 2023[30]. - The dividend payout to AFFO ratio was 70.7% for Q3 2024, with cash distributions of approximately $7.4 million paid to stockholders[22]. Asset Management - Total assets as of September 30, 2024, amounted to $2,007,433,000, a decrease from $2,099,579,000 as of December 31, 2023[30]. - Total liabilities increased slightly to $606,958,000 as of September 30, 2024, compared to $605,144,000 at the end of 2023[30]. - Rental expenses for the three months ended September 30, 2024, were $5,823,000, an increase of 16.3% from $5,005,000 in the same period of 2023[33]. - The weighted average percentage of rentable square feet leased was 95.5%, reflecting a 2.0% decrease during Q3 2024[17]. - Weighted average number of common shares outstanding for the three months ended September 30, 2024, was 55,571,298, a decrease from 56,859,076 in the same period of 2023[33]. Strategic Initiatives - The company acquired a $28.4 million inpatient rehabilitation facility in Fort Smith, Arkansas, during the quarter[2]. - The company sold the Fort Myers Healthcare Facilities for a sales price of $15.5 million, generating net proceeds of $14.7 million[15]. - The company plans to change the frequency of cash distributions to quarterly, effective in 2025[22]. - The company plans to continue its acquisition and growth strategy, focusing on strategic acquisitions and potential stock repurchases[25]. - The company accepted for purchase approximately 2.2 million shares of common stock at a purchase price of $22.60 per share, totaling approximately $50.0 million[20]. Other Income - The company received $2,000,000 in severance fees from GenesisCare, which will be recognized in rental revenues over the remaining lease term[45]. - The nine months ended September 30, 2024, included $4,098,000 in lease termination fee income received, compared to $5,650,000 in the same period of 2023[43]. - The company reported a net operating income (NOI) of $123,085,000 for the nine months ended September 30, 2024, down from $128,423,000 in the same period of 2023[42]. - The company had 126 same store properties for the quarters ended September 30, 2024, and 2023, allowing for consistent performance comparison[47].
Sila Realty Trust, Inc.(SILA) - 2024 Q2 - Quarterly Report
2024-08-07 21:09
Real Estate Properties - As of June 30, 2024, the company owned 137 real estate properties and two undeveloped land parcels [80] - The company’s real estate properties were 97.5% leased as of June 30, 2024 [90] - As of June 30, 2024, the company had 137 real estate properties with a total leased square feet of 5,155,000, down from 5,400,000 in 2023, resulting in a weighted average percentage of rentable square feet leased of 97.5% [95] Financial Performance - Same store rental revenue decreased by $1,285,000 (3.4%) to $36,055,000 for the three months ended June 30, 2024, compared to $37,340,000 in 2023 [98] - Non-same store rental revenue decreased by $887,000 (19.1%) to $3,756,000 for the three months ended June 30, 2024, primarily due to property dispositions [98] - Total rental revenue for 2024 was $94,193,000, down $416,000 or 0.4% from $94,609,000 in 2023 [103] - Same store rental revenue for 2024 was $75,917,000, a decrease of $2,592,000 or 10.1% compared to 2023 [103] - Non-same store rental revenue decreased by $2,068,000 or 16.2%, totaling $10,690,000 in 2024 [103] - Same store tenant reimbursements increased by $592,000 or 10.1%, primarily due to higher operating costs [103] - Net income attributable to common stockholders for the three months ended June 30, 2024, was $4,628 million, up from $3,855 million for the same period in 2023, representing a 20% increase [124] - Funds from operations (FFO) for the six months ended June 30, 2024, was $59,047 million, compared to $62,053 million for the same period in 2023, reflecting a decrease of approximately 4% [124] - The company reported an adjusted funds from operations (AFFO) of $69,130 million for the six months ended June 30, 2024, compared to $65,832 million for the same period in 2023, indicating an increase of about 5% [124] Stock and Shareholder Activities - The company accepted for purchase 2,212,389 shares of Common Stock at a purchase price of $22.60 per share, totaling approximately $50 million [83] - The company suspended its Amended and Restated Share Repurchase Program effective April 5, 2024, and terminated it upon the Listing [82] - The company executed a one-for-four reverse stock split effective May 1, 2024, in anticipation of its listing on the NYSE [81] - The company’s common stock began trading on the NYSE under the ticker symbol "SILA" on June 13, 2024 [81] - Cash distributions to common stockholders increased to $36,785,000 for the six months ended June 30, 2024, up from $32,969,000 in the same period of 2023 [117] - Total distributions declared but not paid as of June 30, 2024, were $7,663,000 for common stockholders, which were paid on July 15, 2024 [120] Impairment and Write-offs - The company recorded a write-off of straight-line rent receivables related to Steward of $1,604,000 during the three months ended December 31, 2023 [91] - The company recorded $10,945,000 of impairment losses on the real estate property leased to Steward during the three months ended December 31, 2023 [91] - GenesisCare filed for Chapter 11 bankruptcy protection on June 1, 2023, leading to a $1,630,000 write-off of straight-line rent receivables for the six months ended June 30, 2023 [92] - Impairment losses on certain real estate properties leased or formerly leased to GenesisCare were recorded at $418,000 for the three months ended June 30, 2024, a significant decrease from $6,364,000 in the same period of 2023 [100] Cash and Debt Management - As of June 30, 2024, the company had $86,971,000 in cash and cash equivalents, with expected cash requirements of $25,447,000 over the next twelve months [112] - The company had $525,000,000 of principal outstanding under its Unsecured Credit Facility as of June 30, 2024, and was in compliance with all covenants [112] - As of June 30, 2024, the total pool availability under the Unsecured Credit Facility was $1,025,000,000, with an outstanding principal balance of $525,000,000, leaving $500,000,000 available to be drawn [114] - The 2027 Term Loan Agreement had an outstanding principal balance of $250,000,000 as of June 30, 2024, and was entered into to replace a prior term loan agreement [114] - The company borrowed $20,000,000 on the Revolving Credit Agreement on July 24, 2024, to fund an acquisition, increasing the outstanding principal balance to $545,000,000 [114] Operating Expenses and Income - Total operating expenses decreased by $803,000 (2.3%) to $34,784,000 for the three months ended June 30, 2024, compared to $35,587,000 in 2023 [100] - Interest and other income increased by $910,000 (645.4%) to $1,051,000 for the three months ended June 30, 2024, primarily due to increased dividend income from money market funds [102] - Interest and other income surged by $3,145,000 or 2,139.5%, totaling $3,292,000 in 2024 [108] - Interest expense decreased by $799,000 or 7.1%, amounting to $10,487,000 in 2024 [108] Risk Factors - The company faces risks from increased interest rates and inflation, which may impact its borrowing costs and real estate asset values [89] - The company is exposed to interest rate risk due to variable rate debt financing and has strategies in place to manage this risk [125] - The company does not have foreign operations, thus avoiding exposure to foreign currency fluctuation risks [126] - The company plans to continue entering into derivative financial instruments to mitigate interest rate risk on variable rate financial instruments [126] Significant Transactions - Significant investing activities included an investment of $135,681,000 to purchase seven properties during the six months ended June 30, 2024, compared to $9,920,000 for one property in the same period of 2023 [116] - The company reported a net cash used in investing activities of $(135,355,000) for the six months ended June 30, 2024, compared to $1,359,000 provided in the same period of 2023, reflecting a change of $(136,714,000) [115] - The company received a $2,000,000 severance fee from GenesisCare during the six months ended June 30, 2024, which will be recognized in rental revenues over the remaining lease term [92] - The company received $4,098 million in lease termination fee income for the six months ended June 30, 2024 [124] Miscellaneous - The company recorded accelerated amortization of in-place lease intangible assets totaling $2,564,000 for the three months ended June 30, 2024, as a result of the GenesisCare Amended Master Lease [92] - General and administrative expenses rose by $1,871,000 or 16.1%, reaching $13,521,000 in 2024 [105] - Listing-related expenses of $2,980,000 were incurred in the first half of 2024 due to advisory fees related to the company's listing [105] - The company has 11 interest rate swap agreements with an aggregate notional amount of $525,000 million, which are designated as cash flow hedging instruments [126] - An increase of 50 basis points in market interest rates would raise the settlement asset value of interest rate swaps to $23,481 million, while a decrease of 50 basis points would lower it to $14,017 million [126]
Sila Realty Trust, Inc.(SILA) - 2024 Q2 - Quarterly Results
2024-08-06 20:59
EXHIBIT 99.1 Sila Realty Trust Announces Second Quarter 2024 Results TAMPA, Fla. August 6, 2024 - 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 large, growing, and resilient healthcare sector, today announced operating results for the second quarter ended June 30, 2024. Highlights for the quarter ended June 30, 2024: • Listed on the New York Stock Exchange, or the NYSE, on June 13, 202 ...
Sila Realty Trust, Inc.(SILA) - 2024 Q1 - Quarterly Results
2024-05-08 12:19
EXHIBIT 99.1 Sila Realty Trust, Inc. First Quarter 2024 Results TAMPA, FL (May 8, 2024) - Sila Realty Trust, Inc. today announced operating results for the first quarter ended March 31, 2024. All per share data has been retroactively adjusted to reflect the one-for-four reverse stock split which occurred on May 1, 2024. Highlights of the Quarter Ended March 31, 2024 vs. March 31, 2023 • Rental revenue was $50.6 million, an increase of 2%. • Net income attributable to common stockholders was $15.0 million, a ...
Sila Realty Trust, Inc.(SILA) - 2024 Q1 - Quarterly Report
2024-05-08 12:18
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-55435 SILA REALTY TRUST, INC. (Exact name of registrant as specified in its charter ...
Sila Realty Trust, Inc.(SILA) - 2023 Q4 - Annual Report
2024-03-06 17:51
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-55435 SILA REALTY TRUST, INC. (Exact name of registrant as specified in its charter) Mar ...
Sila Realty Trust, Inc.(SILA) - 2023 Q3 - Quarterly Report
2023-11-08 11:08
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-55435 SILA REALTY TRUST, INC. (Exact name of registrant as specified in its cha ...
Sila Realty Trust, Inc.(SILA) - 2023 Q1 - Quarterly Report
2023-05-04 18:56
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-55435 SILA REALTY TRUST, INC. (Exact name of registrant as specified in its charter ...