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Sila Realty Trust, Inc. (SILA)
NYSE:SILA
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Sila Realty Trust, Inc.
(NYSE:SILA)
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Rating:73Outperform
Price Target:
$29.00
▲(9.89% Upside)
Action:UpgradedDate:02/26/26
The score is driven primarily by solid financial strength (steady cash generation and a much-improved balance sheet) and supportive technical momentum (price above key moving averages with positive MACD). It is held back by valuation (high P/E despite a strong dividend) and earnings-call headwinds around lower AFFO/share from higher interest costs and isolated property disruptions.
Positive Factors
Balance Sheet Strength
Eliminating total debt in 2025 materially increases financial flexibility and reduces refinancing risk for a REIT. This stronger balance sheet supports dividend coverage, opportunistic acquisitions or redeployments, and provides a durable buffer against cyclical rent or occupancy shocks over the next 2–6 months and beyond.
Consistent Operating Cash Generation
Steady operating cash flow and consistently positive free cash flow underpin the company's ability to fund maintenance capex, redevelopment projects and distributions without relying on frequent equity raises. Reliable cash generation supports disciplined growth and makes the payout profile more sustainable over time.
Portfolio Lease Tenor and Tenant Credit
Longer weighted-average lease terms (10.0 years) combined with rising investment-grade exposure and strong rent coverage improve cash flow predictability and reduce re-leasing risk. Higher tenant credit quality and coverage ratios make revenue streams more resilient to downturns and support long-term rent collections.
Negative Factors
AFFO Decline / Rising Interest Expense
A meaningful AFFO per share decline driven by higher interest costs (new swaps) directly reduces distributable cash and constrains capital allocation. If elevated hedging costs or higher rates persist, AFFO pressure may continue, tightening the margin for dividends and slowing accretive acquisition pacing.
Earnings Volatility and Modest Returns
Historical swings in net income and only modest ROE indicate returns on the asset base are inconsistent. Volatility from non-recurring items complicates forecasting FFO/AFFO and weakens the reliability of earnings growth as a driver of shareholder returns over the medium term.
Asset Disruptions and Vacancy Risk
Isolated but material asset disruptions (demolition, tenant departures, and dispositions) reduce near-term rent roll and can incur remediation or carrying costs. Execution risk on re-leasing or redeployment can depress cash NOI and AFFO until assets are stabilized or sold, affecting cash flow durability.
Sila Realty Trust, Inc. (SILA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.43B
Dividend Yield6.98%
Average Volume (3M)326.15K
Price to Earnings (P/E)43.1
Beta (1Y)0.20
Revenue Growth3.74%
EPS Growth77.82%
CountryUS
Employees49
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.09
Shares Outstanding55,246,390
10 Day Avg. Volume352,404
30 Day Avg. Volume326,146
Financial Highlights & Ratios
PEG Ratio-1.84
Price to Book (P/B)0.96
Price to Sales (P/S)6.49
P/FCF Ratio10.76
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue7.01
Enterprise Value/Gross Profit7.97
Enterprise Value/Ebitda10.28
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.77
Revenue Forecast (FY)$206.64M
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 generates revenue primarily through rental income from its portfolio of healthcare-related properties. The company's revenue model is based on long-term leases with operators of senior housing and skilled nursing facilities, which ensures a steady stream of income. Additionally, Sila may also benefit from property appreciation and potential capital gains upon the sale of assets. Key revenue streams include monthly or quarterly rental payments from tenants, which are often structured to increase over time, thereby providing a hedge against inflation. The company may also engage in strategic partnerships with healthcare operators to enhance property management efficiency and tenant satisfaction, further securing its revenue base.
Sila Realty Trust, Inc. Key Performance Indicators (KPIs)
Any
Number of Properties
Shows how many distinct assets the company owns, which affects geographic and market diversification. More properties can spread risk and capture varied demand, while a concentrated property base heightens exposure to local market downturns or property-specific issues.
Shows how many distinct assets the company owns, which affects geographic and market diversification. More properties can spread risk and capture varied demand, while a concentrated property base heightens exposure to local market downturns or property-specific issues.
Data provided by:
The Fly
The FlySila Realty Trust, Inc. Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 08, 2026
Earnings Call Sentiment Positive
Overall the call emphasized balance-sheet strength, modest operational growth and improving tenant credit quality, supported by acquisitions, strong liquidity (> $480M) and conservative leverage (net debt/EBITDAre 3.9x). Offsetting items included a decline in AFFO per share (-5.8%), higher interest expense from new swaps, and isolated asset disruption (Stoughton demolition, Alexandria vacancy). Management communicated disciplined capital deployment and a pipeline of accretive redevelopment and acquisition opportunities while remaining cautious on share repurchases and equity raises given current valuation dynamics.Q4-2025 Updates
Positive Updates
Acquisition Activity and Portfolio Growth
Acquired 6 healthcare facilities in 2025 for an aggregate purchase price of approximately $150 million (241,000 rentable sq ft); closed an additional inpatient rehabilitation facility in Oklahoma City after year-end for $43.1 million (facility expanded from 40 to 58 licensed beds).
Strong Liquidity and Conservative Leverage
Total liquidity exceeded $480 million at year-end; net debt to EBITDAre of 3.9x, below the company's target leverage range of 4.5x–5.5x, translating to over $200 million of debt capacity to reach the midpoint and theoretical incremental buying capacity of ~$225 million (midpoint) to ~$375 million (high end).
Cash NOI and Same-Store Performance
Cash NOI for the year was $169.9 million versus $168.6 million in 2024, a +0.8% increase driven by acquisitions and same-store cash NOI growth of +0.9%. Excluding certain one-time fees, cash NOI growth would have been +4.4% and same-store cash NOI +1.1%.
FFO per Share Growth
FFO per share for the full year was $2.16, a +3.6% increase year-over-year, supported by straight-line rent increases, higher interest income on mezzanine loans, and reduced G&A/onetime listing costs in the prior year.
Tenant Credit Quality and Coverage Improvement
Investment-grade tenant/guarantor percentage increased by 2.3 percentage points year-over-year to 40.6%. Portfolio-wide EBITDARM rent coverage improved to 5.9x in 2025 from 5.3x in 2024 (5.7x excluding an outsized Saginaw tenant) and 75.6% of ABR now reports financials at tenant or guarantor level.
Portfolio Optimization and Redevelopment Activity
Completed over $7 million of redevelopment projects in 2025 with compelling risk-adjusted returns and expects additional expansion opportunities (management noted these expansions often yield 150–200 bps higher than going-in cap rates). Executed planned dispositions (Saginaw sale closed for $14.5 million; Henderson and Las Vegas II expected to close in Q1 2026; Alexandria sale under contract).
Longer Lease Term and High Retention
Weighted average remaining lease term increased from 9.7 years to 10.0 years by year-end. Of the 4.8% of GLA scheduled to expire in 2025, the company retained 90% of expiring tenancy by square footage, and non-renewals represented only 0.5% of ABR.
Institutional Recognition and Market Position
Company was added to prominent equity indices (including RMZ and Russell 2000), and shareholder base rotated materially toward institutional investors (management noted roughly 70% institutional ownership), reflecting stronger market recognition.
Negative Updates
AFFO per Share Decline
AFFO per share for the full year was $2.18, a -5.8% decline year-over-year, driven primarily by increased interest expense (new swaps) which offset cash NOI benefits and lower G&A.
Rising Interest Expense Impact
Interest expense increased largely due to new interest rate swaps entered at the end of 2024 as prior swap maturities expired, negatively impacting AFFO and partially offsetting FFO growth.
Stoughton Facility Vacancy and Demolition
Stoughton Healthcare Facility required building demolition; carrying costs were elevated last year (as much as ~$120,000/month) though management expects carrying costs to fall to approximately $35,000/month and debris removal to be completed by end of Q1 2026—asset disruption reduced near-term cash flow and contributed to vacancy impacts.
Asset Dispositions and Vacancy
Several properties placed under purchase and sale agreements (Henderson, Las Vegas II, Alexandria); Alexandria became vacant in Dec 2025 following ASC departure—vacancies and dispositions can reduce near-term rent roll and create re-leasing execution risk (though sales proceeds may be redeployed).
Comparability Impact from Prior-Year One-Time Items
2024 included over $6 million of one-time lease termination and severance fees compared to < $300,000 in 2025, making year-over-year comparisons less favorable and masking underlying operational trends without adjustments.
Valuation/Stock Price Disconnect
Management noted implied cap-rate on stock is north of an 8% yield while acquisition opportunities and portfolio blended going-in cash cap rates are around ~7%, creating reluctance to raise equity and caution on share repurchases (repurchases could reduce market liquidity).
Company Guidance
The company guided that it will remain disciplined but has significant firepower to grow, with net debt/EBITDAre at 3.9x (below its 4.5x–5.5x target), total liquidity >$480M and $676M of outstanding unsecured debt at a 4.7% weighted average rate; management said it could deploy roughly $225M to reach the midpoint (~5.0x) or up to ~$375M to reach the high end (≈5.5x) of its leverage range (roughly 24 months of buying capacity). Operational and portfolio metrics cited as supporting that capacity include 2025 cash NOI of $169.9M (+0.8% YoY; +4.4% ex one‑time items), same‑store cash NOI +0.9% (+1.1% ex one‑time items), FFO/share $2.16 (+3.6%), AFFO/share $2.18 (‑5.8%), portfolio EBITDARM rent coverage 5.9x in 2025 (5.7x excl. Saginaw) vs. 5.3x in 2024, 75.6% of ABR reporting results, weighted average remaining lease term increased to 10.0 years, investment‑grade guarantor/affiliate exposure up 2.3 ppt to 40.6%, and a 2026 lease expiration book of 4.1% GLA with 34.8% of that already renewed (2025 expirations were 4.8% GLA with 90% retained and nonrenewals equating to just 0.5% of ABR). Portfolio and transaction activity noted as part of the plan: >$2B of owned assets, six 2025 acquisitions for ~ $150M (241k rentable SF) plus a $43.1M post‑year‑end acquisition, >$7M of redevelopments completed, Saginaw sale for $14.5M, anticipated dispositions (Henderson, Las Vegas II, Alexandria) in early‑2026, Stoughton carrying costs cut to ~$35k/month from ~$120k/month (demolition to finish by end‑Q1 2026), and management expects in‑portfolio expansions to yield ~150–200 bps above going‑in cap rates (blended going‑in cash cap ~7%).Sila Realty Trust, Inc. Financial Statement Overview
Summary
Fundamentals are solid for a healthcare REIT: steady revenue/cash NOI trends and strong operating cash generation, plus a notably strengthened balance sheet with debt eliminated in 2025. Offsetting this, profitability has shown meaningful volatility across years and underlying returns (ROE) are generally modest, which can limit upside without stronger normalized growth.Income Statement
Revenue has been generally stable with modest growth in 2025 after a slight dip in 2024. Profitability is a clear strength: gross profit and EBITDA margins are consistently high, and the company returned to solid positive earnings after the 2022 loss. The main weakness is earnings volatility—net margin swung from a loss in 2022 to unusually high profit in 2021 and then normalized—suggesting results can be impacted by non-recurring items and/or changing cost and rent dynamics.74
Positive
Balance Sheet
Leverage has improved meaningfully, with total debt moving from moderate levels in prior years to zero in 2025, and debt-to-equity dropping accordingly—this materially strengthens financial flexibility for a REIT. Equity remains large relative to assets, supporting balance sheet stability. The trade-off is that shareholder returns are modest in most years (low return on equity outside of the 2021 outlier), implying the asset base is not translating into consistently high bottom-line returns.82
Very Positive
Cash Flow
Operating cash generation is steady and strong across the period, and free cash flow remains positive each year with improving growth in 2025. Cash flow quality looks healthy, with free cash flow broadly tracking reported earnings in most years. A key limitation is that cash flow has not consistently covered debt obligations strongly in years when debt existed, and the relationship between earnings and cash flow can vary—particularly around the years with unusual net income outcomes.77
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 197.54M | 186.86M | 189.06M | 179.99M | 172.84M |
| Gross Profit | 173.73M | 163.72M | 168.87M | 162.04M | 155.13M |
| EBITDA | 142.85M | 139.80M | 122.18M | 139.96M | 119.76M |
| Net Income | 33.12M | 42.66M | 24.04M | -7.98M | 402.66M |
Balance Sheet | |||||
| Total Assets | 2.09B | 2.01B | 2.10B | 2.22B | 2.18B |
| Cash, Cash Equivalents and Short-Term Investments | 32.29M | 39.84M | 202.02M | 12.92M | 32.36M |
| Total Debt | 0.00 | 563.41M | 564.31M | 622.14M | 523.17M |
| Total Liabilities | 763.21M | 603.89M | 605.14M | 664.71M | 576.42M |
| Stockholders Equity | 1.33B | 1.40B | 1.49B | 1.56B | 1.60B |
Cash Flow | |||||
| Free Cash Flow | 119.14M | 129.86M | 125.75M | 113.23M | 111.54M |
| Operating Cash Flow | 119.14M | 132.85M | 128.92M | 121.67M | 136.94M |
| Investing Cash Flow | -174.50M | -149.69M | 197.31M | -142.81M | 1.23B |
| Financing Cash Flow | 47.80M | -145.50M | -137.13M | 1.34M | -1.40B |
Sila Realty Trust, Inc. Technical Analysis
Positive
26.39
Price Trends
24.34
Positive
23.79
Positive
23.93
Positive
Market Momentum
0.46
Positive
60.06
Neutral
56.80
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 26.39 is above the 20-day moving average (MA) of 25.37, above the 50-day MA of 24.34, and above the 200-day MA of 23.93, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 60.06 is Neutral, neither overbought nor oversold. The STOCH value of 56.80 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.43B | 43.13 | 0.72% | 6.98% | 3.74% | 77.82% | |
69 Neutral | $1.94B | 15.75 | 11.52% | 6.70% | 11.89% | -68.41% | |
66 Neutral | $494.86M | 220.80 | 0.46% | 12.08% | 3.40% | -240.85% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $611.87M | 34.34 | 10.61% | 7.51% | 0.68% | -1.34% | |
54 Neutral | $1.75B | ― | -15.78% | 0.80% | 4.10% | 8.96% |
* Real Estate Sector Average
SILA
Sila Realty Trust, Inc.
25.51
2.21
9.48%
LTC
LTC Properties
39.48
5.99
17.90%
DHC
Diversified Healthcare Trust
7.26
4.66
179.34%
CHCT
Community Healthcare
17.15
0.82
5.05%
UHT
Universal Health Realty Income
43.77
6.25
16.65%
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.