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]
Sila Realty Trust, Inc.(SILA) - 2024 Q3 - Quarterly Report