Sila Realty Trust, Inc. · NYSE:SILA
Sila Realty Trust — Q1 2025 Earnings Presentation
33 slides from Sila Realty Trust's earnings presentation, May 8, 2025
Slide 1: Company Presentation
Company Presentation March 2025 Skillful and Thoughtful Investing
Slide 2: Disclosures
Disclosures Forward Looking Statements Certain statements contained herein, other than historical fact, may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and
Slide 3: Introductions
Introductions Kay C. Neely Michael A. Seton Christopher K. Flouhouse Miles F. Callahan Executive Vice President President and Chief Executive Officer Executive Vice President Senior Vice President and Chief Financial Officer Founder and Board Member and Chief Investment Officer Capital Markets and 3
Slide 4: Management with a History of Executing on Shareholder Friendly Initiatives
Management with a History of Executing on Shareholder Friendly Initiatives Internalization of management and rebranding Sale of predecessor to Sila Realty Trust, Inc. company’s data center Cash paid for internalization Added new board portfolio, $556.2M was recouped in less than members, bringing sp
Slide 5: Sila Realty Trust At a Glance
Sila Realty Trust At a Glance Sila Realty Trust is a net lease REIT with a strategic focus on investing in the growing and resilient healthcare sector. Portfolio Highlights Financial Highlights 135 96.0% $2.2B 26.5% 3.3x $1.8B Properties(1) Weighted Avg. Total Real Estate Net Debt Net Debt to Enterp
Slide 6: Proven Track Record of Value Creation
Proven Track Record of Value Creation 6 Reading Healthcare Facility, Pennsylvania
Slide 7: Net Lease REIT Focused on High-Quality Healthcare Assets
Net Lease REIT Focused on High-Quality Healthcare Assets Healthcare trends are shifting patients to cost-effective, easy-to-access, healthcare settings, driving demand for strategic asset classes along the healthcare continuum. Highest Acuity Lowest Acuity (Highest Cost Settings) (Lowest Cost Settin
Slide 8: Geographic Diversification with a Focus on “Smile States”
Geographic Diversification with a Focus on “Smile States” Top Five States by ABR(1) 28.6% Texas 7.3% Oklahoma 5.8% Louisiana 5.7% Arizona 5.1% California 64.9% “Smile States” (1) Represents each state’s annualized December 2024 contractual base rent as a percentage of total annualized December 2024
Slide 9: Asset Strategy and Platform Positioned for Growth
Asset Strategy and Platform Positioned for Growth High Quality Facilities Robust In-House • Class A, recent construction or newly renovated Management properties, purpose built for healthcare services • Single or multi-tenant facilities with strong anchor tenants • Specialized facilities with substa
Slide 10: Broad Acquisition Sourcing Network Affords Opportunity to be Highly Selective
Broad Acquisition Sourcing Network Affords Opportunity to be Highly Selective Sila’s Acquisitions and Credit Underwriting teams evaluated over 350 healthcare investment opportunities in 2024. Sourcing and Underwriting • We believe Relationships and 2024 Investment reputation with tenants, Investment
Slide 11: Proven Acquisition Track Record
Proven Acquisition Track Record 2024 Acquisitions: + 8 Properties 2022 + $164M Portfolio Acquisitions: Dispositions: + 7 Properties + $157M − 4 Properties 135 − $19M Properties(1) 2020 Dispositions: Acquisitions: − 1 Property + 3 Properties − $24M $2.2B + $16M Total Real Estate Dispositions: Investm
Slide 12: Select Transactions Demonstrating Investment Strategy
Select Transactions Demonstrating Investment Strategy Mezzanine Loans for Developments $17.5M Lynchburg, Virginia Total Amount of Loans • Two mezzanine loans for the development of an inpatient rehabilitation facility and behavioral healthcare facility, with loan amounts of $12.5 million and $5.0 mi
Slide 13: Robust Portfolio Delivers Strong Operating and Financial Metrics
Robust Portfolio Delivers Strong Operating and Financial Metrics NYSE Listing Day | June 13, 2024
Slide 14: Tenant Strength and Recognition
Tenant Strength and Recognition Tenant Diversification(1)(2)(3) 15 Properties 15.8% 7 Properties 8.0% 9 Properties 6.9% 9 Properties 5.8% Top Ten Tenants 8 Properties 5.6% 64 62.7% 10.9 Yrs Properties Percent of Portfolio WALT 8 Properties 5.6% 10.5% $33.84 2 Properties 5.0% ABR Maturing Average in
Slide 15: EBITDARM Coverage Ratio
EBITDARM Coverage Ratio EBITDARM Coverage Ratio(1)(2) % of ABR by EBITDARM Coverage Ratio(1)(2)(4) 30% 29.1% % of EBITDARM ABR Coverage 25% Medical Outpatient Building 15.6% 7.05x 20% Inpatient Rehabilitation Facility 27.2% 4.22x 15.7% Surgical and Specialty Facilities(3) 29.1% 5.41x 15% 10.2% 10.6%
Slide 16: Diversified and Secure Tenancy
Diversified and Secure Tenancy Sila’s 135 operating healthcare properties are well-diversified through tenancy and across the continuum of care, reducing overexposure to any single healthcare subtype. Property Type Diversification(1) (ABR(2), Properties) Single/Multi-Tenant Concentrations 37.6% Medi
Slide 17: Strong Operating Metrics from Long-Term Leases
Strong Operating Metrics from Long-Term Leases Portfolio Leased Tenant Lease Expiration Schedule(1) 99.5% 99.4% 96.0% $80M 2.0M 2022 2023 2024 $60M Square Feet Annual Lease Escalation Structure $40M ABR(2) 1.0M 13.3% ABR(2) 11.2% $20M CPI Contractual $0M 0.0M 2025 2027 2029 2031 2033 Thereafter 88.8
Slide 18: Fortified Balance Sheet
Fortified Balance Sheet FFO Payout Ratio (1) AFFO Payout Ratio (1) $539.8M 74.2% 77.7% 74.5% 77.3% 68.8% 69.7% Liquidity(6) 2022 2023 2024 2022 2023 2024 100% Net Debt / EBITDAre(2) Net Debt Leverage Ratio(3) Fixed Rate Debt(7) 4.2x 26.5% 3.3x 23.7% 2.1x 16.1% 2022 2023 2024 2022 2023 2024 100% Unen
Slide 19: Sila Demonstrates Strong Metrics Relative to Peers
Sila Demonstrates Strong Metrics Relative to Peers Long Lease Term Portfolio Leased 11.0 Yrs 99.3% 9.7 Yrs 96.0% 92.4% 5.7 Yrs SILA Net Lease Healthcare SILA Net Lease Healthcare Peer Average Peer Average Peer Average Peer Average Low Leverage (Net Debt / EBITDAre) High Triple Net Lease Exposure 6.3
Slide 20: Experienced Leadership Team
Experienced Leadership Team NYSE Listing Day | June 13, 2024
Slide 21: Experienced Management Team
Experienced Management Team Michael A. Seton President and Chief Executive Officer • 30+ years of experience in real estate investment and finance, completing billions of dollars in real estate transactions • Formerly served as Managing Director and Division Head of Originations at Eurohypo AG (now
Slide 22: Robust Corporate Governance Led by Experienced Board of Directors
Robust Corporate Governance Led by Experienced Board of Directors Jonathan Kuchin, Chairman of the Board* Member of Audit Committee • Formerly Tax Partner at PWC - Focused on public and private REITS, SEC reporting for public REITS and income tax accounting • Prior experience includes accounting for
Slide 23: Commitment to Corporate Governance
Commitment to Corporate Governance Board Composition Board Procedures Board Policies Experienced Board of Directors, Audit Committee, Non-staggered annual elections of Insider trading and minimum stock Compensation Committee, and Nominating and Board of Directors ownership policies Corporate G
Slide 24: Appendix
Appendix Marana Healthcare Facility, Arizona
Slide 25: Non-GAAP Measures and Definition of Terms
Non-GAAP Measures and Definition of Terms Adjusted Fair Value of Real Estate Investments Adjusted fair value of real estate investments is calculated using the real estate values determined as of the most recent NAV (as defined below), adjusted for property acquisitions and dispositions, major capit
Slide 26: Non-GAAP Measures and Definition of Terms
Non-GAAP Measures and Definition of Terms Earnings Before Interest, Taxes, Depreciation, Amortization, Rent and Management Fees (EBITDARM) The Company utilizes EBITDARM, a supplemental non-GAAP performance measure, to evaluate the core operations of our tenants and/or guarantors (together, the “Obli
Slide 27: Non-GAAP Measures and Definition of Terms
Non-GAAP Measures and Definition of Terms Enterprise Value Enterprise value represents market capitalization plus net debt. Funds from Operations (FFO), Core FFO, and Adjusted FFO (AFFO) FFO, a non-GAAP financial measure, is calculated consistent with NAREIT’s definition, as net income (loss) (calcu
Slide 28: Non-GAAP Measures and Definition of Terms
Non-GAAP Measures and Definition of Terms Funds from Operations (FFO), Core FFO, and Adjusted FFO (AFFO) (Cont’d) Year Ended Three Months Ended December 31, December 31, December 31, December 31, September 30, June 30, March 31, 2024 2023 2022 2024 2024 2024 2024 Net income (loss) attributable to co
Slide 29: Non-GAAP Measures and Definition of Terms
Non-GAAP Measures and Definition of Terms Liquidity A financial metric that represents the outstanding cash and cash equivalents combined with the remaining borrowing base availability on the Company’s credit facility at a point in time. Market Capitalization The total number of outstanding shares o
Slide 30: Non-GAAP Measures and Definition of Terms
Non-GAAP Measures and Definition of Terms Net Operating Income (NOI), Cash NOI and Same Store Cash NOI NOI, a non-GAAP financial measure, is defined as rental revenue, less rental expenses, on an accrual basis. Cash NOI is calculated to exclude the impact of GAAP adjustments to rental revenue and re
Slide 31: Non-GAAP Measures and Definition of Terms
Non-GAAP Measures and Definition of Terms Net Operating Income (NOI), Cash NOI and Same Store Cash NOI (Cont’d) Year Ended Three Months Ended December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Rental revenue $ 186,856 $ 189,065 $ 46,545 $ 45,914 Rental expenses (23,138) (20,196)
Slide 32: Non-GAAP Measures and Definition of Terms
Non-GAAP Measures and Definition of Terms Remaining Lease Term The number of periods remaining in each tenant’s lease, calculated on a weighted average basis using annualized base rent. Rent Escalation The amount of base rent increases that are included within each tenant’s lease, calculated on a we
Slide 33: Contact Information
Contact Information Corporate Address Miles Callahan 1001 Water Street Senior Vice President, Suite 800 Capital Markets & Investor Relations Tampa, FL 33602 IR@silarealtytrust.com www.SilaRealtyTrust.com