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Sila Realty Trust, Inc. (SILA)
:SILA
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Sila Realty Trust, Inc. (SILA) AI Stock Analysis

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SILA

Sila Realty Trust, Inc.

(NYSE:SILA)

Rating:71Outperform
Price Target:
$27.00
▲(7.83% Upside)
Sila Realty Trust, Inc. receives a solid overall stock score of 71, driven primarily by strong financial performance and positive earnings call highlights. The company's consistent revenue growth, efficient cash flow management, and strategic acquisitions contribute positively. However, a high P/E ratio and challenges such as increased interest expenses and tenant bankruptcy slightly offset these strengths.
Positive Factors
Acquisition Strategy
Management suggested mid-6% to high-7% acquisition cap rates, which could provide an attractive spread over the cost of capital.
Growth Potential
SILA is considered undervalued due to its low financial leverage, competitive projected earnings growth, and well-covered dividend yield.
Stock Valuation
SILA Realty Trust has a strong balance sheet and its discounted stock valuation offers investors an attractive risk-adjusted return.
Negative Factors
Interest Rate Impact
A 1.6% year-over-year normalized FFOps decline is implied in 2024, followed by a 5.3% decrease in 2025 due to an interest rate swap expiration.
Portfolio Concentration
SILA has relatively high portfolio concentration, with significant exposure to a few tenants and a large portion of revenue from Texas.
Tenant Issues
Healthcare REITs have faced greater-than-expected tenant issues despite a healthy US economy, which poses a risk to Sila Realty Trust.

Sila Realty Trust, Inc. (SILA) vs. SPDR S&P 500 ETF (SPY)

Sila Realty Trust, Inc. Business Overview & Revenue Model

Company DescriptionSila Realty Trust, Inc. is a net lease real estate investment trust headquartered in Tampa, Florida, with a strategic focus on investing in the significant, growing, and resilient healthcare sector of the U.S. economy. The Company invests in high quality healthcare facilities along the continuum of care, which, we believe, generate predictable, durable, and growing income streams. Our portfolio is comprised of high quality tenants in geographically diverse facilities which are positioned to capitalize on the dynamic delivery of healthcare to patients. As of December 31, 2023, the Company owned 131 real estate properties and two undeveloped land parcels located in 62 markets across the United States.
How the Company Makes MoneySila Realty Trust, Inc. generates revenue primarily through leasing its healthcare properties to tenants, including hospitals, healthcare systems, and medical practices. The company earns rental income from these leases, which often include long-term agreements with periodic rental escalations, providing a steady and predictable cash flow. Additionally, Sila Realty Trust may engage in property acquisitions and dispositions to optimize its portfolio and capitalize on market opportunities. The company's partnerships with healthcare providers and its focus on maintaining high occupancy rates and tenant satisfaction contribute significantly to its earnings.

Sila Realty Trust, Inc. Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance, successful acquisitions, and a healthy dividend, indicating robust operating fundamentals. However, challenges such as increased interest expenses and the ongoing issues with the Stoughton asset and a tenant in bankruptcy present concerns. The sentiment is balanced with more positive highlights.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Sila Realty Trust reported a 1.7% increase in cash NOI from the first quarter of 2025, reaching $41.9 million. Compared to the second quarter of 2024, cash NOI was up 5%.
Healthy Dividend and Liquidity
The company maintains a healthy dividend with a quarterly cash dividend of $0.40 per share, and ended the quarter with $568.8 million in liquidity.
Successful Acquisitions
Closed approximately $75 million of high-quality acquisitions, including a new Dover healthcare facility and a 2-property MOB portfolio in Southlake, Texas.
Share Repurchase Program
Executed over $7 million of share repurchases at an average price of $24.09 per share, with a new 3-year program approved for up to $75 million.
High Portfolio Lease Percentage
With the removal of the Stoughton asset, the portfolio lease percentage increased to 99.2%.
Negative Updates
Increase in Interest Expenses
AFFO decreased by 2.7% compared to the second quarter of last year, largely driven by an increase in interest expense related to acquisition activity.
Stoughton Asset Demolition
The Stoughton asset will be demolished, incurring a cost of approximately $1.9 million, and the entitlement process may take until 2026.
Landmark Hospitals in Bankruptcy
Landmark Hospitals, a tenant, is in bankruptcy, though they have remained current on rent obligations.
Company Guidance
During the second quarter of 2025, Sila Realty Trust reported a strong financial performance, driven by strategic capital allocation and robust operating fundamentals. The company's portfolio boasted an average EBITDARM coverage ratio of 5.31x and a portfolio weighted average remaining lease term of 9.5 years, supported by a meaningful annual contractual rent growth of 2.2%. Sila maintained over $568 million in liquidity and reported a cash NOI of $41.9 million, marking a 1.7% increase from the first quarter. The company's AFFO per diluted share rose by 1.7% from the previous quarter to $0.54, despite a 2.7% year-over-year decrease due to higher interest expenses. Sila closed on significant acquisitions, including a two-property medical outpatient building portfolio in Texas, and executed over $7 million in share repurchases, with a new three-year share repurchase program approved for up to $75 million. The company also announced plans to demolish and redevelop the Stoughton asset, which increased the portfolio lease percentage to 99.2%. These strategic moves underscore Sila's commitment to delivering long-term value and maintaining a healthy dividend for shareholders amidst ongoing economic uncertainties.

Sila Realty Trust, Inc. Financial Statement Overview

Summary
Sila Realty Trust exhibits strong financial performance with solid profitability, effective liquidity management, and a robust balance sheet. Despite minor fluctuations in revenue and cash flow growth, the company maintains a stable financial footing with a strong asset base and low leverage.
Income Statement
78
Positive
Sila Realty Trust demonstrated solid gross profit margins and consistent revenue generation, despite a slight decrease in total revenue over the TTM period. The net profit margin remains healthy, indicating effective cost management and profitability. However, recent EBIT and EBITDA margins have shown slight variances, which could suggest fluctuations in operational efficiency.
Balance Sheet
85
Very Positive
The company maintains a strong balance sheet with a considerable equity base and low leverage, as reflected in a favorable debt-to-equity ratio. The equity ratio is robust, highlighting financial stability. Return on Equity (ROE) is satisfactory, showing effective use of shareholders' funds to generate profits.
Cash Flow
81
Very Positive
Cash flow performance is commendable with substantial free cash flow generation and a healthy operating cash flow to net income ratio, indicating strong operational cash generation. Free cash flow growth has been somewhat volatile, highlighting potential variability in cash utilization or investment activities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue189.65M186.86M189.06M179.99M172.84M165.78M
Gross Profit165.60M163.72M168.87M162.04M155.13M68.14M
EBITDA140.42M139.80M144.97M139.96M133.74M117.81M
Net Income39.55M42.66M24.04M-7.98M402.66M36.78M
Balance Sheet
Total Assets2.02B2.01B2.10B2.22B2.18B3.21B
Cash, Cash Equivalents and Short-Term Investments24.83M39.84M202.02M12.92M32.36M53.17M
Total Debt626.34M563.41M564.31M622.14M27.41M1.12B
Total Liabilities661.37M603.89M605.14M664.71M576.42M1.55B
Stockholders Equity1.36B1.40B1.49B1.56B1.60B1.65B
Cash Flow
Free Cash Flow117.45M129.86M125.75M113.23M111.66M80.90M
Operating Cash Flow120.69M132.85M128.92M121.67M136.94M109.70M
Investing Cash Flow-82.43M-149.69M197.31M-142.81M1.23B-41.42M
Financing Cash Flow-100.56M-145.50M-137.13M1.34M-1.40B-83.74M

Sila Realty Trust, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price25.04
Price Trends
50DMA
24.38
Positive
100DMA
24.47
Positive
200DMA
24.24
Positive
Market Momentum
MACD
0.18
Negative
RSI
62.23
Neutral
STOCH
70.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SILA, the sentiment is Positive. The current price of 25.04 is above the 20-day moving average (MA) of 24.77, above the 50-day MA of 24.38, and above the 200-day MA of 24.24, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 62.23 is Neutral, neither overbought nor oversold. The STOCH value of 70.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SILA.

Sila Realty Trust, Inc. Risk Analysis

Sila Realty Trust, Inc. disclosed 56 risk factors in its most recent earnings report. Sila Realty Trust, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sila Realty Trust, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$1.68B19.868.94%6.23%8.18%-16.83%
71
Outperform
$1.38B35.302.71%6.28%0.43%58.57%
64
Neutral
$549.33M109.361.94%10.33%0.90%
59
Neutral
$939.10M-14.32%0.97%4.29%18.89%
55
Neutral
$6.29B4.66-20.95%6.01%10.84%8.15%
54
Neutral
$441.10M-2.22%11.97%2.96%-877.53%
49
Neutral
$2.67B-25.97%6.94%27.66%18.03%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SILA
Sila Realty Trust, Inc.
25.46
1.37
5.69%
LTC
LTC Properties
36.62
2.23
6.48%
MPW
Medical Properties
4.61
0.00
0.00%
DHC
Diversified Healthcare Trust
4.12
0.96
30.38%
CHCT
Community Healthcare
15.66
1.12
7.70%
GMRE
Global Medical REIT
7.60
-0.70
-8.43%

Sila Realty Trust, Inc. Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Sila Realty Trust Announces $250M Equity Offering
Neutral
Aug 12, 2025

On August 12, 2025, Sila Realty Trust, Inc. entered into an Equity Offering Sales Agreement with several financial institutions to offer and sell up to $250 million in common stock. This agreement allows the company to sell shares through market offerings or forward sale agreements, with proceeds intended for general corporate purposes such as repaying credit facilities or funding acquisitions, potentially impacting the company’s financial flexibility and growth strategy.

Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Sila Realty Trust Reports Q2 2025 Financial Results
Positive
Aug 6, 2025

Sila Realty Trust, Inc. announced its second-quarter 2025 financial results, reporting a net income of $8.6 million and cash net operating income of $41.9 million. The company declared a quarterly cash dividend of $0.40 per share and authorized a $75 million share repurchase program over three years. Sila acquired an inpatient rehabilitation facility in Delaware and two medical outpatient buildings in Texas, enhancing its healthcare property portfolio. The company remains optimistic about its strategic focus on necessity-based healthcare solutions despite economic challenges.

Business Operations and Strategy
Sila Realty Trust Releases Investor Presentation
Positive
May 30, 2025

On May 30, 2025, Sila Realty Trust, Inc. released an investor presentation for use at upcoming conferences and meetings. The presentation, which is available on the company’s website, outlines Sila’s focus on sustainable growth through long lease terms and rent growth in the healthcare sector. The company emphasizes strong governance, balance sheet discipline, and a commitment to high-quality healthcare facilities. Sila’s metrics, such as a 96% leased portfolio and a 9.7-year average remaining lease term, demonstrate its strong positioning compared to peers.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 22, 2025