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]
Sila Realty Trust, Inc.(SILA) - 2025 Q3 - Quarterly Report