Group 1 - The article discusses the investment strategy focused on Real Estate Investment Trusts (REITs) for generating stable passive income and potential mean reversion [1] - The individual highlighted in the article, Luuk Wierenga, emphasizes the importance of dividends from REITs as a source of additional cash flow to support lifestyle needs [1] - The investment journey began during the COVID-19 pandemic, leading to a specialization in identifying high-yield REITs [1] Group 2 - There is a mention of Sila Realty Trust, indicating that a position may be initiated if the company shows improved per share performance in upcoming quarters [3]

PART I. FINANCIAL INFORMATION [Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Sila Realty Trust's Q1 2025 saw total revenues of $48.3 million and net income of $7.9 million, a decline from the prior year due to lower rental revenue and a $3.5 million impairment loss, with total assets at $2.01 billion [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased slightly to $2.015 billion, driven by net real estate assets, while total liabilities rose to $633.2 million and stockholders' equity decreased to $1.382 billion Condensed Consolidated Balance Sheets (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total real estate, net** | $1,721,750 | $1,707,620 | | Cash and cash equivalents | $30,458 | $39,844 | | **Total assets** | **$2,014,931** | **$2,007,074** | | Credit facility, net | $554,115 | $521,921 | | **Total liabilities** | **$633,167** | **$603,889** | | **Total stockholders' equity** | **$1,381,764** | **$1,403,185** | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q1 2025 net income significantly decreased to $7.9 million from $15.0 million in Q1 2024, primarily due to a 4.7% decline in rental revenue, a $3.5 million impairment loss, and a 38.4% increase in interest expense Q1 2025 vs Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Rental revenue | $48,256 | $50,639 | | Total operating expenses | $33,317 | $32,682 | | Impairment losses | $3,531 | $0 | | Interest expense | ($7,325) | ($5,294) | | **Net income** | **$7,898** | **$14,980** | | Comprehensive income | $760 | $17,848 | | **Basic EPS** | **$0.14** | **$0.26** | | **Diluted EPS** | **$0.14** | **$0.26** | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity decreased by $21.4 million to $1.382 billion in Q1 2025, primarily due to $22.3 million in distributions and a $7.1 million other comprehensive loss, partially offset by net income Changes in Stockholders' Equity for Q1 2025 (in thousands) | Description | Amount | | :--- | :--- | | **Balance, December 31, 2024** | **$1,403,185** | | Net income | $7,898 | | Distributions to common stockholders | ($22,297) | | Other comprehensive loss | ($7,138) | | Stock-based compensation | $1,261 | | Repurchase of common stock | ($1,145) | | **Balance, March 31, 2025** | **$1,381,764** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 net cash from operating activities decreased to $24.1 million, while net cash used in investing activities significantly fell to $36.0 million, and financing activities provided a $2.5 million inflow, ending with $30.5 million in cash Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $24,129 | $36,572 | ($12,443) | | Net cash used in investing activities | ($36,042) | ($123,920) | $87,878 | | Net cash provided by (used in) financing activities | $2,527 | ($24,429) | $26,956 | | **Net change in cash** | **($9,386)** | **($111,777)** | | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes highlight the company's healthcare REIT focus, detailing a $35.3 million property acquisition, a $3.5 million impairment loss on the Stoughton Healthcare Facility, and a new $600 million revolving credit agreement in Q1 2025 - The company is primarily focused on investing in high-quality healthcare facilities across the continuum of care[18](index=18&type=chunk) - During Q1 2025, the company acquired one healthcare facility in Knoxville for cash consideration of **$35.3 million**[32](index=32&type=chunk)[33](index=33&type=chunk) - A real estate impairment loss of **$3.5 million** was recorded in Q1 2025 for the Stoughton Healthcare Facility, following the lease rejection by tenant sponsor Steward Health Care System during its bankruptcy proceedings[37](index=37&type=chunk)[38](index=38&type=chunk) - In February 2025, the company entered into a new **$600 million** senior unsecured revolving credit agreement, replacing its prior facility and resulting in a **$233,000** loss on debt extinguishment[60](index=60&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 4.7% decrease in Q1 2025 total rental revenue to lower non-same store revenue and a $3.5 million impairment loss, while liquidity remains strong with $568 million available on its credit facility, and non-GAAP measures FFO, Core FFO, and AFFO all declined [Overview](index=22&type=section&id=Overview) The company invests in high-quality healthcare facilities, with a portfolio of 136 properties and two undeveloped land parcels as of March 31, 2025 - As of March 31, 2025, the company owned **136 real estate properties** and two undeveloped land parcels[106](index=106&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q1 2025 total rental revenue decreased by 4.7% to $48.3 million, primarily due to a 49.6% drop in non-same store revenue, while total operating expenses increased by 1.9% to $33.3 million, largely due to a $3.5 million impairment loss Rental Revenue Breakdown (in thousands) | Revenue Source | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Same store rental revenue | $40,676 | $40,011 | $665 | 1.7% | | Non-same store rental revenue | $3,421 | $6,786 | ($3,365) | (49.6)% | | **Total rental revenue** | **$48,256** | **$50,639** | **($2,383)** | **(4.7)%** | Operating Expenses Breakdown (in thousands) | Expense Category | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Rental expenses | $6,326 | $5,554 | $772 | 13.9% | | General and administrative | $5,698 | $8,174 | ($2,476) | (30.3)% | | Depreciation and amortization | $17,762 | $18,898 | ($1,136) | (6.0)% | | Impairment losses | $3,531 | $0 | $3,531 | n/a | | **Total operating expenses** | **$33,317** | **$32,682** | **$635** | **1.9%** | [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by operating cash flows and its credit facility, with $46.3 million in anticipated cash requirements for the next twelve months and $568 million available on its $1.125 billion Unsecured Credit Facility as of March 31, 2025 - The company has effectively fixed **94%** of its outstanding debt as of March 31, 2025, through its hedging strategy, limiting exposure to interest rate fluctuations[127](index=127&type=chunk) Material Cash Requirements (as of March 31, 2025) | Time Horizon | Amount (in thousands) | Description | | :--- | :--- | :--- | | Next 12 Months | $46,348 | Interest payments ($26.0M), unfunded loan commitments ($17.5M), lessee obligations ($2.8M) | | Beyond 12 Months | $709,660 | Debt principal & interest ($595.6M), lessee obligations ($114.0M) | - As of March 31, 2025, the company had an aggregate outstanding principal balance of **$557.0 million** on its Unsecured Credit Facility, with **$568.0 million** available to be drawn[143](index=143&type=chunk) [Cash Flows](index=28&type=section&id=Cash%20Flows) Net cash from operating activities decreased by $12.4 million year-over-year, while cash used in investing activities fell sharply by $87.9 million due to reduced acquisitions, and financing activities provided a $2.5 million inflow Comparison of Cash Flows (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $24,129 | $36,572 | ($12,443) | | Net cash used in investing activities | ($36,042) | ($123,920) | $87,878 | | Net cash provided by (used in) financing activities | $2,527 | ($24,429) | $26,956 | [Non-GAAP Financial Measures](index=29&type=section&id=Non-GAAP%20Financial%20Measures) The company's non-GAAP measures, FFO, Core FFO, and AFFO, all decreased in Q1 2025 compared to Q1 2024, primarily due to lower net income and the impact of a $4.1 million prior-period lease termination fee Reconciliation of Net Income to Non-GAAP Measures (in thousands) | Measure | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income attributable to common stockholders | $7,898 | $14,980 | | **FFO** | **$29,166** | **$33,779** | | **Core FFO** | **$29,607** | **$36,160** | | **AFFO** | **$29,448** | **$38,285** | - The Q1 2024 non-GAAP results include **$4.1 million** of lease termination fee income, which affects comparability with Q1 2025[160](index=160&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages its primary market risk, interest rate risk on variable-rate debt, through swaps, fixing **$525 million** of its **$557 million** debt, with a 50 basis point rate increase on the remaining **$32 million** impacting annual interest expense by **$160,000** - As of March 31, 2025, the company had fixed the interest rate on **$525 million** of its **$557 million** total principal debt (approximately **94%**) using 10 interest rate swap agreements[164](index=164&type=chunk) - The **$32 million** of outstanding debt subject to variable interest rates would incur an additional **$160,000** in annual interest expense if market rates increased by **50 basis points**[166](index=166&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[170](index=170&type=chunk) - No material changes were made to the company's internal controls over financial reporting during the first quarter of 2025[171](index=171&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any material pending legal proceedings to which it or its properties are subject - As of the filing date, the company is not a party to any **material pending legal proceedings**[173](index=173&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred regarding the risk factors since the filing of the 2024 Annual Report on Form 10-K - No material changes have occurred regarding the risk factors since the filing of the 2024 Annual Report on Form 10-K[174](index=174&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company repurchased **47,229 shares** for approximately **$1.1 million** for tax withholding on vested stock awards, with the full **$25 million** Share Repurchase Program authorization remaining available Share Repurchases in Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2025 | 45,222 | $24.19 | | February 2025 | 394 | $25.24 | | March 2025 | 1,613 | $25.51 | | **Total** | **47,229** | **$24.24** | - All shares repurchased during the quarter were for the net settlement of withholding taxes on vested stock awards, not under the formal Share Repurchase Program[175](index=175&type=chunk) - As of March 31, 2025, up to **$25 million** of common stock remained available for repurchase under the authorized Share Repurchase Program[175](index=175&type=chunk) [Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[176](index=176&type=chunk) [Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[177](index=177&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated any Rule 10b5-1 trading plans during the first quarter of 2025 - No officers or directors adopted or terminated any Rule 10b5-1 trading plans during the three months ended March 31, 2025[178](index=178&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including amendments to loan agreements, the new credit agreement, and CEO and CFO certifications - Exhibits filed include amendments to existing term loan agreements, the new Credit Agreement dated February 18, 2025, and Sarbanes-Oxley Act certifications[179](index=179&type=chunk)

Financial Data and Key Metrics Changes - Cash NOI for Q1 2025 was $41.2 million, a slight increase from $41 million in Q4 2024, driven by contractual lease escalations and a recent acquisition [12] - AFFO for Q1 2025 was $29.4 million or $0.53 per diluted share, down from $30.2 million or $0.54 per diluted share in Q4 2024, primarily due to increased interest expenses [13] - AFFO decreased 23.1% compared to Q1 2024, largely due to nonrecurring fees and bankruptcies impacting cash NOI [14] Business Line Data and Key Metrics Changes - The weighted average remaining lease term is over 9.5 years with average annual contractual rent escalations of 2.2%, providing predictable long-term revenues [9] - The company maintained a 96% lease rate, unchanged from the previous quarter [23] Market Data and Key Metrics Changes - The company completed two acquisitions totaling approximately $59 million in March and April 2025, expanding its footprint into Tennessee and Delaware [19] - The Knoxville Healthcare facility is fully leased to a joint venture with investment-grade rated partners, while the Dover facility is also fully leased to a similar joint venture [20] Company Strategy and Development Direction - The company focuses on acquiring health care properties, which are seen as essential and non-discretionary, providing a stable investment opportunity [7] - The management emphasizes a disciplined investment approach, navigating macroeconomic uncertainties while seeking accretive acquisitions [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current economic challenges, including inflation and potential recession, but believes the company's focus on health care properties positions it well for long-term success [6][11] - The demographic shift towards an aging population is expected to drive increased health care spending, benefiting the company's portfolio [10] Other Important Information - The company has over $598 million in liquidity available for future acquisitions, supported by a new $600 million revolving line of credit [16][17] - The credit loss reserve increased by $171,000, related to the company's mezzanine loans, reflecting a qualitative assessment under GAAP [31][32] Q&A Session Summary Question: Update on Stoughton property - Management engaged a broker to solicit bids for the sale or lease of the Stoughton property, with more interest in sales for multifamily use, potentially involving demolition and entitlement processes [27][29] Question: Update on mezzanine loan investments - The company has funded amounts related to the mezzanine loan for the inpatient rehab facility and expects both loans to be fully funded by Q3 2025 [30] Question: Impact of credit loss reserve - The credit loss reserve is a required GAAP reserve for loans receivable, assessed qualitatively each quarter, and is related to the two mezzanine loans [31][32] Question: Investment pipeline and cost of equity - The company sees opportunities to acquire between $150 million and $250 million of real estate under normal conditions, but is cautious due to current market uncertainties [35][38] Question: Minimum yield for acquisitions - The company targets a cap rate of 6.5% to 7.5% for quality acquisitions, depending on property type and sponsorship quality [42] Question: Improvement in EBITDARM coverage - The improvement in EBITDARM coverage was driven by properties moving up in coverage levels, with a significant portion of the affected ABR being investment-grade rated [44][46] Question: Borrowing costs for future debt - Current borrowing on the revolving line of credit is at 5.57%, with plans to explore longer-duration fixed-rate debt in the future [48][50]

Financial Data and Key Metrics Changes - Cash NOI for Q1 2025 was $41.2 million, a slight increase from $41 million in Q4 2024, representing a 0.5% increase driven by scheduled lease escalations and a recent acquisition [11] - AFFO for Q1 2025 was $29.4 million or $0.53 per diluted share, down from $30.2 million or $0.54 per diluted share in Q4 2024, reflecting a 2.6% decrease primarily due to increased interest expenses [12] - Compared to Q1 2024, AFFO decreased by 23.1%, largely due to nonrecurring fees and bankruptcies impacting cash NOI [12] Business Line Data and Key Metrics Changes - The company maintained a weighted average remaining lease term of over 9.5 years with average annual contractual rent escalations of 2.2%, indicating stable long-term revenue growth [8][22] - The portfolio consisted of approximately 5.3 million rentable square feet, with a leasing rate of 96%, unchanged from the previous quarter [22] Market Data and Key Metrics Changes - The company reported that 73.3% of ABR from tenants with financial reporting maintained a strong EBITDARM coverage ratio of 5.3 times, indicating financial stability among tenants [16] - The percentage of ABR with EBITDARM coverage below one times decreased significantly from 1.8% to 0.5%, driven by improvements in tenant coverage levels [43] Company Strategy and Development Direction - The company focuses on acquiring health care properties, which are seen as essential and non-discretionary, providing a stable investment opportunity amid economic uncertainty [7] - Recent acquisitions included two healthcare facilities totaling approximately $59 million, expanding the company's footprint into new states and aligning with its strategic focus on necessity-based healthcare properties [18][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current economic challenges, including inflation and potential recession, but expressed confidence in the company's ability to navigate these issues due to its strong financial position and focus on healthcare real estate [6][10] - The demographic shift towards an aging population is expected to drive increased healthcare spending, benefiting the company's portfolio and future acquisition opportunities [9][10] Other Important Information - The company has over $598 million in liquidity available for future acquisitions, supported by a new $600 million revolving line of credit [15] - The company is currently evaluating the financial strength of its tenant base and monitoring potential impacts from tariffs and healthcare policy changes [17] Q&A Session Summary Question: Update on Stoughton property status - Management engaged a broker to solicit bids for the sale or lease of the Stoughton property, with more interest from multifamily developers, potentially involving demolition and entitlement processes [26][28] Question: Update on mezzanine loan investments - The company has funded amounts related to the mezzanine loan for the inpatient rehab facility and expects both loans to be fully funded by Q3 2025 [30] Question: Increase in credit loss reserve - The increase in the credit loss reserve is a required GAAP reserve related to loans receivable, assessed quarterly based on qualitative judgments [31][32] Question: Impact of stock price on acquisition pace - The company is cautious about leveraging to the high end of its target range until its stock price recovers, indicating a methodical approach to acquisitions [37] Question: Minimum yield for quality acquisitions - The company is currently looking for opportunities in the 6.5% to 7.5% cap rate range, depending on property type and quality [41][42] Question: Improvement in EBITDARM coverage - The improvement in EBITDARM coverage was due to properties moving up in coverage levels, with a significant portion of the lower coverage associated with investment-grade rated tenants [43][44]

EXHIBIT 99.2 Disclosures Non-GAAP Measures This presentation contains certain financial information not derived in accordance with the United States generally accepted accounting principles (GAAP). These items include earnings before interest, income taxes, depreciation and amortization (EBITDA), EBITDA for real estate (EBITDAre), earnings before interest, income taxes, depreciation, amortization, rent and management fees (EBITDARM), funds from operations (FFO), core funds from operations (Core FFO), adjust ...

EXHIBIT 99.1 Sila Realty Trust Announces First Quarter 2025 Results TAMPA, Fla. May 7, 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 first quarter ended March 31, 2025. Highlights for the quarter ended March 31, 2025: Subsequent Events Management Commentary "We are pleased with our strong start to ...

Core Viewpoint - The article emphasizes the importance of dividend investing in quality blue-chip stocks, BDCs, and REITs for building a sustainable retirement income stream over the next 5-7 years [1]. Group 1 - The author is a Navy veteran who focuses on long-term investment strategies, particularly in high-quality, dividend-paying companies [1]. - The goal is to assist lower and middle-class workers in constructing investment portfolios that can lead to financial independence [1]. - The author expresses a personal commitment to buy-and-hold investment philosophy, prioritizing quality over quantity in stock selection [1]. Group 2 - The article does not provide specific financial data or performance metrics related to the companies or sectors discussed [2][3].

I rate Sila Realty Trust, Inc. (NYSE: SILA ) as a Buy, for income focused investors who are looking for long-term buy and hold real estate investment trusts (REITs). The most important factors that influence my opinion of the REIT are:David A. Johnson is founder and principal of Endurance Capital Management, a New Jersey Limited Liability Company. As an investor entrepreneur, David invests in stocks, bonds, options, ETFs, REITs, real estate, closed end funds and alternative investment funds such as hedge fu ...

Core Insights - Albert Anthony is a Croatian-American media personality active on investor platforms, focusing on markets and stocks, with a growing follower base of over 1,000 since 2023 [1] - He is set to launch a new book titled "Financial Markets: Growing A Dividend Income Portfolio" in 2025, coinciding with an ongoing article series on the same topic [1] - Albert Anthony has a background in management and information systems, having worked in a top-10 financial firm's IT department, and has participated in various business and innovation conferences [1] Company Overview - Albert Anthony & Co. is a sole proprietorship registered in Austin, Texas, focusing on general market commentary based on publicly available data [1] - The company does not provide personalized financial advice or sell financial products, and it operates without compensation from any rated companies [1] Investment Focus - Albert Anthony has launched the Future Investor Fund, which aims to build a dividend portfolio, indicating a strategic focus on dividend income generation [1]

Core Viewpoint - The article emphasizes the importance of identifying and maintaining stock price trends for successful short-term investing, highlighting the utility of a specific screening strategy to find stocks with strong fundamentals and positive price momentum [1][2]. Group 1: Stock Screening Strategy - The "Recent Price Strength" screen is designed to identify stocks with sufficient fundamental strength to sustain their recent upward trends, focusing on those trading in the upper portion of their 52-week high-low range, indicating bullish sentiment [3]. - Sila Realty Trust (SILA) is highlighted as a candidate that passed the screening criteria, showing a price increase of 7.6% over the past 12 weeks, reflecting investor confidence in its potential upside [4]. - A further price increase of 5.1% over the last four weeks indicates that the upward trend for SILA is still intact, with the stock currently trading at 99% of its 52-week high-low range, suggesting a potential breakout [5]. Group 2: Fundamental Strength - SILA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock's Average Broker Recommendation of 1 (Strong Buy) indicates high optimism from the brokerage community regarding its near-term price performance [7]. - The article suggests that the price trend for SILA is unlikely to reverse soon, and encourages consideration of other stocks that meet the screening criteria for potential investment opportunities [8].