Revenue Sources and Tenant Risks - As of December 31, 2024, 14.9% of rental revenue was derived from tenants under common control of Post Acute Medical LLC, which poses a risk if these tenants face financial difficulties[83] - Approximately 38.3% of annualized contractual base rental revenue was from tenants with investment grade credit ratings, while 28.6% was from tenants rated below investment grade, and 33.1% from unrated tenants as of December 31, 2024[86] - Compliance with healthcare laws and regulations is critical, as non-compliance may negatively impact tenants' financial conditions and rent payments[109] - Adverse trends in the healthcare industry, such as shifts to outpatient services and increased scrutiny of billing practices, may negatively affect lease revenues[113] Geographic and Market Concentration - Geographic concentration of properties resulted in 8.0%, 7.3%, 5.4%, 4.2%, and 4.1% of annualized contractual base rental revenue coming from markets in Dallas, Oklahoma City, San Antonio, Akron, and Tucson respectively[84] Lease and Property Management - As of December 31, 2024, 96.0% of the property portfolio was leased, with leases representing 20.3% of annualized base rent set to expire within 5 years[89] - The company may incur additional costs for tenant improvements and refurbishments if tenants vacate their spaces, impacting cash distributions[91] - Properties acquired through ground leases may impose significant limitations, potentially impairing property value and tenant suitability[106] Financial Risks and Costs - The company may face increased operating costs due to climate change compliance obligations, which could affect cash flow and distributions to stockholders[85] - The company is subject to risks from potential development and construction delays, which could lead to increased costs and impact investment returns[98] - Defaults by purchasers in financing arrangements could negatively impact cash distributions to stockholders[104] - The company faces risks in identifying and completing attractive acquisition opportunities, which may not yield anticipated benefits[105] - Competition from nearby healthcare facilities and new stakeholders, including telemedicine, could adversely affect rental revenues[108] Interest Rate and Debt Management - Interest rate exposure poses a risk, as increases may not be matched by rental income, adversely affecting financial condition and distributions[115] - The company has hedged all variable rate debt as of December 31, 2024, to mitigate interest rate risk[116] - High debt levels could limit cash available for distributions and decrease stockholder investment value[118] - The company is exposed to interest rate risk due to variable rate debt financing linked to the one-month Term SOFR[270] - As of December 31, 2024, the total principal debt outstanding was $525,000,000, fixed through 10 interest rate swap agreements[271] - The weighted average interest rate on total principal debt outstanding was 4.62%, including the impact of interest rate swap agreements[273] - An increase of 50 basis points in market interest rates would increase the settlement asset value of interest rate swaps to $20,023,000[272] - A decrease of 50 basis points in market interest rates would decrease the settlement asset value of interest rate swaps to $3,311,000[272] REIT Compliance and Taxation - Failure to maintain REIT qualification could result in corporate-level tax liabilities, adversely affecting net earnings and stockholder returns[125] - To maintain REIT qualification, the company must distribute at least 90% of its REIT taxable income, which may limit available cash for operations and investments[126] - Failure to meet distribution requirements could result in a 4% nondeductible excise tax on the excess of required distributions over actual distributions[126] - The company may face U.S. federal, state, and local income taxes, which would reduce cash available for distribution to stockholders[128] - The use of taxable REIT subsidiaries could increase overall tax liability, further reducing cash available for distribution[129] - If the company fails to comply with REIT asset tests, it may be required to liquidate attractive investments to maintain qualification[132] - Legislative changes could adversely affect the company's ability to qualify as a REIT and impact stockholder returns[136] - Dividends from REITs are generally taxed at ordinary income rates, which may make them less attractive compared to non-REIT corporate dividends[139] - If the Operating Partnership is reclassified as a corporation, it would lose REIT status and face corporate-level taxation, reducing distributions[140] - Foreign investors may be subject to FIRPTA tax on gains from the sale of shares, which could reduce their net investment returns[141] - The company must ensure that its leases qualify as true leases for tax purposes to maintain REIT status[133] Operational and Cybersecurity Risks - The company may face challenges in selling properties at or above purchase prices, potentially leading to decreased asset values and stockholder returns[95] - Disruptions in credit markets could impact the availability of financing for property acquisitions, affecting growth and returns[121] - The company has implemented cybersecurity measures to mitigate risks, but there is no guarantee against potential cyber incidents[150] - The company may be subject to litigation that could negatively impact future cash flow and financial condition[154] - The company has previously paid distributions from sources other than cash flows from operations, which may affect future distributions[152] - The company expects to continue acquiring commercial real estate primarily in the continental United States, which is subject to economic downturns[151] - The company may face substantial volatility in trading prices of its common stock following its listing due to pent-up demand from stockholders[147]

Financial Data and Key Metrics Changes - GAAP net income for the year ended 2024 was $42.7 million, or $0.75 per diluted share, compared to $24 million, or $0.42 per diluted share for 2023, indicating a significant increase [35] - Cash NOI for the fourth quarter was $41 million, a decrease of 4.3% from $42.8 million in the same period in 2023 [35] - AFFO for the fourth quarter was $30.2 million, or $0.54 per diluted share, compared to $32.7 million, or $0.57 per diluted share during the same period in 2023 [39] Business Line Data and Key Metrics Changes - The company executed over 1.1 million rentable square feet in lease renewals and modifications, representing approximately 20% of the total real estate portfolio [23] - The weighted average lease term (WALT) increased by approximately 1.5 years to 9.7 years at year-end [25] - The overall portfolio EBITDARM coverage ratio improved to 5.3 times, with less than 2% of ABR having an EBITDARM coverage ratio below one times [16][28] Market Data and Key Metrics Changes - The company has increased exposure to investment-grade tenants to 66.9% [17] - The weighted average lease rate increased by 50 basis points to 96% compared to 95.5% at the end of the third quarter [27] - The company is actively marketing a property in Stoughton, Massachusetts, which accounts for approximately 3.4% of the portfolio's square footage [30] Company Strategy and Development Direction - The company aims to grow enterprise value by approximately 7.5% to 15% per annum in 2025 [50] - The focus remains on long-term net lease investments in strategic locations with reliable tenancy sponsorship [52] - The company plans to leverage its strong capital position to pursue accretive acquisitions and fill gaps in development budgets [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the healthcare industry's recovery and improving credit metrics among tenants [68] - The company anticipates a continued focus on disciplined growth and is optimistic about the transaction market despite a higher interest rate environment [32][50] - Management highlighted the importance of maintaining a strong balance sheet and financial flexibility in the current economic climate [42] Other Important Information - The board approved a change in the frequency of distributions from monthly to quarterly, effective in 2025 [43] - The company closed on a new $600 million revolving credit agreement, increasing its capacity for external growth [41] - The company successfully resolved all exposure related to Genesis Care by releasing, leasing, or selling all 17 assets [18] Q&A Session Summary Question: What should be the main signposts for 2025? - Management indicated a target growth of 7.5% to 15% per annum and emphasized a disciplined approach to acquisitions [50][52] Question: What is the expected mix between loans and acquisitions in 2025? - The majority of transaction volume is expected to be acquisitions, with some mezzanine loans providing mid-teen returns during the funded period [55][60] Question: Are there any new credit issues to be aware of? - Management reported only one small tenant left, maintaining a high renewal rate and improving credit metrics across the portfolio [66][68] Question: What drove the timing of the Post Acute Medical lease extension? - The extension was driven by a proactive approach and a strong relationship with the tenant, providing certainty for both parties [76][78] Question: What is the outlook for the Stoughton facility? - The facility has flexibility for various uses, with interest in both residential and healthcare options, and management is focused on maximizing outcomes [91][92] Question: Where are the best acquisition opportunities currently? - Attractive opportunities are seen in inpatient rehab and outpatient medical facilities, with a focus on pricing and tenant credit [94]

Financial Data and Key Metrics Changes - GAAP net income for the year ended 2024 was $42.7 million or $0.75 per diluted share, compared to $24 million or $0.42 per diluted share for the year ended 2023, indicating significant growth [22] - Cash NOI for the fourth quarter was $41 million, a decrease of 4.3% from $42.8 million in the same period in 2023 [22][23] - AFFO for the fourth quarter was $30.2 million or $0.54 per diluted share, compared to $32.7 million or $0.57 per diluted share during the same period in 2023 [24] Business Line Data and Key Metrics Changes - The company executed renewal leases and lease modifications for over 1.1 million rentable square feet, representing approximately 20% of the total real estate portfolio [15] - The weighted average lease rate increased by 50 basis points to 96% compared to 95.5% at the end of the third quarter [17] - The overall portfolio EBITDARM coverage ratio improved to 5.3 times, with only 1.8% of ABR coming from reporting obligors with EBITDARM coverage ratios below one time [10][18] Market Data and Key Metrics Changes - The company increased exposure to investment grade and rated tenants to 66.9% since the fourth quarter of 2023 [11] - The company noted a lack of new healthcare real estate development, creating a stickier leasing environment [7] - The company is particularly focused on opportunities within the Sunbelt region, also referred to as the "Smile States" [20] Company Strategy and Development Direction - The company aims to enhance the diversity, quality, and size of its healthcare real estate portfolio through strategic acquisitions and capital allocation [7][9] - The company plans to continue executing on its growth strategy in 2025, with a target to grow enterprise value by approximately 7.5% to 15% per annum [33][35] - The company is focused on long-term net lease investments in strategic locations with reliable tenancy sponsorship [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving credit metrics of tenants and the overall health of the healthcare industry [44] - The company anticipates attractive opportunities in the transaction market, despite a higher interest rate environment [20][21] - Management highlighted the importance of maintaining a strong and low to moderately leveraged balance sheet for future growth [27] Other Important Information - The company successfully resolved all exposure related to Genesis Care by re-leasing or selling all 17 assets owned [12] - The company announced a change in the frequency of distributions to stockholders from monthly to quarterly, effective in 2025 [28] - The company has seen a material change in its shareholder base, becoming more institutionally diversified [13] Q&A Session Summary Question: What is the 2025 guidance? - The company indicated a target to grow the enterprise roughly between 7.5% and 15% per annum, with a focus on disciplined growth and accretive assets [33][35] Question: What is the expected mix between loans and acquisitions in 2025? - The majority of transaction volume is expected to be acquisition fee ownership, with some opportunities in loans to fill gaps in development budgets [36][39] Question: Are there any known credit issues or tenant move-outs? - The company reported only one small tenant left, maintaining a high renewal rate and improving credit metrics across the portfolio [42][44] Question: What drove the timing of the Post Acute Medical lease extension? - The extension was driven by a proactive approach and a strong relationship with the tenant, providing them with more certainty as they grow their business [51][52] Question: What is the outlook for the Stoughton facility? - The company is actively marketing the Stoughton property for sale or lease, with interest in both residential and healthcare uses [60][61] Question: Where are the best acquisition opportunities currently? - The company sees attractive opportunities in inpatient rehab and outpatient medical facilities, as well as potential in micro hospitals and urgent care facilities [62]

Financial Performance - Net income for Q4 2024 was $11.1 million, or $0.20 per diluted share, compared to a net loss of $9.0 million, or $(0.16) per diluted share in Q4 2023[13]. - For the year ended 2024, net income was $42.7 million, or $0.75 per diluted share, up from $24.0 million, or $0.42 per diluted share in 2023[13]. - Net income attributable to common stockholders increased to $42,657,000 for the year ended December 31, 2024, compared to $24,042,000 in 2023, reflecting a growth of approximately 77.4%[36]. - The company reported a comprehensive income of $37,410,000 for the year ended December 31, 2024, compared to $12,655,000 in 2023, an increase of approximately 195.5%[36]. Revenue and Income Metrics - Cash net operating income (NOI) for Q4 2024 was $41.0 million, down from $42.8 million in Q4 2023, primarily due to lost NOI from dispositions[14]. - Rental revenue for the year ended December 31, 2024 was $186,856,000, down from $189,065,000 in 2023, representing a decrease of about 1.1%[36]. - Funds From Operations (FFO) for the year ended December 31, 2024 was $118,186,000, a decrease from $122,474,000 in 2023, showing a decline of about 3.6%[39]. - Core FFO for the year ended December 31, 2024 was $126,025,000, down from $128,847,000 in 2023, indicating a decrease of approximately 2.2%[39]. - Adjusted Funds From Operations (AFFO) for the year ended December 31, 2024 was $131,079,000, slightly down from $132,657,000 in 2023, a decrease of about 1.2%[43]. - The company recognized $2,000,000 in severance fees from GenesisCare, which will be recognized in rental revenues over the remaining lease term[47]. Expenses and Liabilities - The company incurred rental expenses of $23,138,000 for the year ended December 31, 2024, which is an increase from $20,196,000 in 2023, reflecting an increase of about 9.6%[36]. - General and administrative expenses for the year ended December 31, 2024, were $25,336,000, compared to $23,896,000 in 2023, an increase of 6%[46]. - Interest expense for the year ended December 31, 2024, was $21,220,000, down from $23,110,000 in 2023, reflecting a decrease of 8.2%[46]. - Total liabilities remained relatively stable, decreasing slightly from $605,144,000 in December 31, 2023 to $603,889,000 in December 31, 2024[34]. Cash and Liquidity - As of December 31, 2024, the company had a strong liquidity position totaling approximately $539.8 million, including $39.8 million in cash[22]. - Cash and cash equivalents significantly decreased from $202,019,000 in December 31, 2023 to $39,844,000 in December 31, 2024, a decline of approximately 80.3%[34]. Dividends and Shareholder Returns - The company approved a quarterly cash dividend of $0.40 per share, representing an annualized amount of $1.60 per share[26]. - The company's dividend payout to AFFO ratio was 73.3% for Q4 2024[25]. Property and Acquisitions - The company acquired eight healthcare properties for approximately $164.1 million, comprising about 307,000 rentable square feet[10]. - The weighted average remaining lease term was approximately 9.7 years, with 20.3% of annualized base rent maturing in the next five years[20]. - The company entered into two mezzanine loans totaling $17.5 million for the development of healthcare facilities, with purchase options upon completion[18]. Operational Metrics - Same store cash NOI for the year ended December 31, 2024, was $147,457,000, compared to $146,064,000 in 2023, reflecting a slight increase of 0.95%[46]. - The company’s net operating income (NOI) for the year ended December 31, 2024, was $163,718,000, compared to $168,869,000 in 2023, a decrease of 3.1%[46]. - There were 125 same store properties analyzed for the quarters ended December 31, 2024, and 2023, allowing for consistent performance evaluation[49].

Demographic Shift - The U.S. is experiencing a significant demographic shift towards an aging population, with the number of Americans aged 65 and over expected to double from the current 58 million by 2060 [1] Investment Philosophy - The investment philosophy emphasized is focused on buying high-quality stocks and great businesses, particularly those led by disciplined capital allocators that generate exceptional returns on capital and can compound their invested capital over long periods [1]

Group 1 - Newly IPO'd stocks present speculative investment opportunities due to their high quality potential despite limited historical data [1] - The excitement around investing in these stocks is driven by their perceived quality and potential for growth [1] Group 2 - The article emphasizes the importance of conducting due diligence before making investment decisions [2] - It highlights a focus on dividend investing in quality blue-chip stocks, BDCs, and REITs as a strategy for retirement income [2]

Group 1 - Sila Realty Trust, Inc. (NYSE: SILA) reported results that met expectations on November 12th, with AFFO at $0.57 per share, translating to an annualized rate of approximately $2.30 per share after rounding [1] - The article indicates that the investing group Catalyst Hedge Investing focuses on identifying investment ideas with asymmetric risk/reward and clear catalysts [1] Group 2 - Cashflow Hunter has over 25 years of market experience, including nearly 20 years as a hedge fund portfolio manager, providing unique insights into debt and equity markets [2] - Cashflow Hunter successfully predicted the collapse of Silicon Valley Bank, showcasing his market acumen [2]

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]

Real Estate Properties - As of September 30, 2024, the company owned 136 real estate properties and two undeveloped land parcels[85] - The company’s real estate properties were 95.5% leased as of September 30, 2024[95] - The number of real estate properties increased to 136 as of September 30, 2024, from 132 in the previous year[100] Financial Performance - Total rental revenue for the three months ended September 30, 2024, decreased by 5.0% to $46,118,000 compared to $48,542,000 in the same period of 2023[105] - Same store rental revenue for the three months ended September 30, 2024, decreased by 0.5% to $38,469,000 from $38,677,000 in the prior year[105] - Non-same store rental revenue for the three months ended September 30, 2024, decreased by 37.9% to $4,095,000 compared to $6,589,000 in the same period of 2023[105] - Total rental revenue for the nine months ended September 30, 2024, decreased by $2,840,000, or 2.0%, totaling $140,311,000 compared to the same period in 2023[111] - Same store rental revenue for the nine months ended September 30, 2024, increased by $1,752,000, or 1.5%, compared to the same period in 2023, totaling $115,768,000[111] - Non-same store rental revenue decreased by $6,523,000, or 32.7%, totaling $13,403,000 for the nine months ended September 30, 2024[111] Expenses and Costs - The company recorded total operating expenses of $29,312,000 for the three months ended September 30, 2024, an increase of 4.9% from $27,930,000 in the prior year[107] - Same store rental expenses increased by $1,165,000, or 8.4%, totaling $15,052,000 for the nine months ended September 30, 2024[112] - General and administrative expenses increased by $1,843,000, or 11.2%, totaling $18,321,000 for the nine months ended September 30, 2024[112] Income and Gains - Net income attributable to common stockholders for the three months ended September 30, 2024, was $11,935,000, a decrease of 20.4% from $14,983,000 in the same period of 2023[130] - 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[130] - Adjusted Funds from Operations (AFFO) for the three months ended September 30, 2024, was $31,714,000, a decrease of 7.5% compared to $34,128,000 in the same period of 2023[130] - The company recorded a gain on disposition of real estate of $76,000 from the sale of a property for $1,500,000 during the nine months ended September 30, 2024[114] Shareholder Actions - A reverse stock split of one-for-four was effective May 1, 2024, in anticipation of the company's listing on the New York Stock Exchange[86] - The company authorized a share repurchase program of up to $25,000,000 in gross purchase proceeds on August 16, 2024[87] - The company accepted for purchase 2,212,389 shares of Common Stock at a price of $22.60 per share for an aggregate purchase price of approximately $50,000,000 during the "Dutch Auction" tender offer[89] - Cash distributions to common stockholders increased to $59,217,000 for the nine months ended September 30, 2024, compared to $49,774,000 in the same period of 2023[124] - Total distributions declared but not paid as of September 30, 2024, were $7,383,000 for common stockholders, to be paid on October 15, 2024[126] Debt and Liquidity - The company has material obligations beyond twelve months totaling $690,830,000, including $575,932,000 related to principal and estimated interest payments on outstanding debt[118] - The company had an aggregate outstanding principal balance of $525,000,000 under its Unsecured Credit Facility as of September 30, 2024, with $500,000,000 available to be drawn[120] - As of September 30, 2024, total principal debt outstanding was $525,000,000, with a weighted average interest rate of 3.3%[132] - The company expects to meet short-term liquidity requirements through net cash flows from operations and borrowings on its credit facility[116] - As of September 30, 2024, the company had $28,606,000 in cash and cash equivalents and expects to require $27,978,000 in cash over the next twelve months, primarily for interest payments on outstanding debt[118] Market and Operational Risks - The company is primarily exposed to interest rate risk due to variable rate debt financing[131] - The company does not have any foreign operations, thus avoiding foreign currency fluctuation risks[131] Other Significant Events - GenesisCare filed for Chapter 11 bankruptcy protection on June 1, 2023, and subsequently entered into an amended master lease on March 27, 2024, affecting 17 properties[97] - The company recognized impairment losses of $418,000 for the Fort Myers Healthcare Facilities for the nine months ended September 30, 2024, due to a reduction in expected sales price[97] - The Fort Myers Healthcare Facilities were sold for a sales price of $15,500,000 on September 25, 2024, resulting in a loss on disposition of $792,000[108] - Significant investing activities included an investment of $164,044,000 to purchase eight properties during the nine months ended September 30, 2024, compared to $69,821,000 for two properties in the same period of 2023[123]

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].