Real Estate Holdings - As of December 31, 2025, the company owned 140 real estate properties and three undeveloped land parcels, with a total leased square footage of 5,255,000[187][202]. - The weighted average percentage of rentable square feet leased increased to 98.7% in 2025 from 96.0% in 2024[202]. - As of December 31, 2025, the company’s properties were 98.7% leased, indicating strong demand and occupancy rates[201]. - The company did not dispose of any real estate properties in 2025, compared to four properties disposed of in 2024[203]. Financial Performance - Total revenues for the year ended December 31, 2025, increased by $10,680,000, or 5.7%, to $197,536,000 compared to $186,856,000 in 2024[206]. - Same store rental revenue rose by $5,400,000, or 3.4%, primarily due to new and renewal leasing activity and annual base rent escalations[206]. - Non-same store rental revenue increased by $3,834,000, or 25.1%, driven by properties acquired since January 1, 2024[206]. - Net income attributable to common stockholders for the year ended December 31, 2025, was $33,120,000, a decrease of 22.3% from $42,657,000 in 2024[249]. - Funds from Operations (FFO) for 2025 was $119,909,000, slightly up from $118,186,000 in 2024[249]. - Core FFO decreased to $121,925,000 in 2025 from $126,025,000 in 2024, reflecting a decline of 3.4%[249]. - Adjusted Funds from Operations (AFFO) for 2025 was $120,913,000, down from $131,079,000 in 2024, indicating a decrease of 7.8%[249]. Expenses and Costs - Total operating expenses for 2025 were $132,619,000, an increase of $5,169,000, or 4.1%, from $127,450,000 in 2024[207]. - General and administrative expenses decreased by $4,429,000, or 17.5%, primarily due to lower personnel costs and reduced advisory fees[207]. - Impairment losses recorded in 2025 amounted to $9,951,000, a significant increase from $1,210,000 in 2024[208]. - Interest expense rose by $11,566,000, or 54.5%, to $32,786,000 due to higher interest rates on the credit facility[213]. Cash and Liquidity - As of December 31, 2025, the company had $32,288,000 in cash and cash equivalents, with expected cash requirements of up to $43,554,000 over the next twelve months[219]. - The company has material obligations beyond twelve months totaling $818,998,000, including $707,068,000 related to principal and estimated interest payments on outstanding debt[220]. - The company drew $164,000,000 on the 2029 Revolving Credit Agreement to fund acquisitions during the year ended December 31, 2025[237]. - The 2029 Revolving Credit Agreement had an aggregate outstanding principal balance of $151,000,000 as of December 31, 2025[224]. - The company had a total pool availability under its Unsecured Credit Facility of $1,125,000,000, with an outstanding principal balance of $676,000,000, leaving $449,000,000 available to be drawn[228]. Shareholder Distributions - During the year ended December 31, 2025, the company repurchased 304,878 shares of Common Stock for an aggregate purchase price of $7,344,000 under a prior share repurchase program[189]. - The company paid approximately $88,787,000 in cash distributions to common stockholders for the year ended December 31, 2025, compared to $81,367,000 in 2024[237]. - The character of distributions for 2025 included 73.84% as ordinary dividends and 26.16% as nontaxable distributions[238]. - The company plans to continue regular distributions to stockholders, subject to available funds and Board authorization[235]. Market Conditions and Risks - Economic conditions, including elevated interest rates and inflation, may adversely impact the company's borrowing costs and real estate asset values[199]. - The company continues to evaluate the impacts of the One Big Beautiful Bill Act (OBBBA) on its tenants' financial positions[199]. - The primary market risk faced by the company is interest rate risk, with strategies in place to manage this exposure[250]. - An increase of 50 basis points in market interest rates would result in an increase in interest expense of approximately $755,000 per year[254]. Acquisitions - The company acquired six healthcare properties in 2025 for an aggregate purchase price of approximately $148,877,000, compared to eight properties acquired in 2024 for $164,053,000[198][203]. - The company invested $148,874,000 to purchase six properties during the year ended December 31, 2025, compared to $164,053,000 for eight properties in 2024[231].
Sila Realty Trust, Inc.(SILA) - 2025 Q4 - Annual Report