Sila Realty Trust, Inc. · NYSE:SILA
Sila Realty Trust — Nareit REITweek 2023
34 slides from Sila Realty Trust's conference presentation, May 31, 2023
Slide 1: Nareit REITweek Company Presentation June 2023
Nareit REITweek Company Presentation June 2023 Tampa Healthcare Facility II, Florida
Slide 2: Disclosures: Forward Looking Statements and Non-GAAP Measures
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 Michael A. Seton President & Chief Executive Officer Founder & Board Member Over 13 years at Sila Kay C. Neely Executive Vice President & Chief Financial Officer Over 7 years at Sila Miles F. Callahan Senior Vice President, Capital Markets & Investor Relations Over 9 years at Sila 3
Slide 4: Company Overview
Company Overview Tucson Healthcare Facility IV, Arizona
Slide 5: At a Glance
• Sila is the only net lease REIT solely dedicated to investing in healthcare real estate • We invest in healthcare properties along the continuum of care, with an emphasis on lower cost patient settings • We maintain a conservative capital structure resulting in a strong balance sheet and liquidity
Slide 6: Sila Maintains Strong Metrics as Compared to Peers
9.2 Yrs 11.4 Yrs 5.9 Yrs SILA Net Lease Peer Average Healthcare Peer Average Long Lease Term 99.4% 99.6% 92.9% SILA Net Lease Peer Average Healthcare Peer Average Portfolio Leased 3.9x 5.0x 5.9x SILA Net Lease Peer Average Healthcare Peer Average Low Leverage (Net Debt / EBITDAre) 99.9% 100.0% 83.1%
Slide 7: Asset Strategy & Platform Positioned for Growth
• On-campus or off-campus facilities in retail-type locations • Strong visibility and access with ample parking • High growth areas near population clusters that are convenient to the patients/customers • Near and convenient to the tenant’s patient referral sources • Large patient catchment areas •
Slide 8: Investment Highlights
Investment Highlights We believe that Sila’s high quality portfolio, attractive growth characteristics, conservative capital structure, and strong governance have positioned the Company for a potential public listing. 1 High-Quality Asset Portfolio • 131 properties(1), well-diversified through geogr
Slide 9: Portfolio
Portfolio Escondido Healthcare Facility, California 1
Slide 10: Asset Focus Strategy along the continuum of care
10 We invest in healthcare properties along the continuum of care, with an emphasis on lower cost patient settings. Highest Acuity (Highest Cost Settings) Lowest Acuity (Lowest Cost Settings) Hospitals Acute Care Post Acute Care Outpatient Senior Housing Long-Term Acute Care Rehabilitation Behaviora
Slide 11: Property Type, Tenant Diversification and Lease Expiration
11 Property Type Diversification (ABR(1), Properties) 35.2%, 88 25.4%, 18 16.1%, 10 11.0%, 10 10.2%, 2 2.1%, 3 Medical Office Building Inpatient Rehabilitation Facility Surgical Hospital Long-Term Acute Care Hospital Short-Term Acute Care Hospital Specialty Facility (Behavioral & Transitional Care)
Slide 12: Geographical Diversification
12 We seek to acquire and own healthcare real estate diversified across the country, with a focus on “Smile State” markets with strong demographic, economic, and social drivers. 1 (1) Represents each state’s annualized March 2023 contractual base rent as a percentage of total annualized March 2023 c
Slide 13: Growth Opportunities
Growth Opportunities Webster Healthcare Facility II, Texas 2
Slide 14: Lease Escalation, WALT and Portfolio Growth
Annual Lease Escalation Structure Historical Weighted Average Lease Term (WALT) 11.7% 88.3% 18.5% 81.5% CPI Contractual ABR(1) Leases(2) 10.1 Yrs 9.6 Yrs 9.5 Yrs 9.3 Yrs 9.2 Yrs 2019 2020 2021 2022 Q1 2023 • Experienced management team has a proven record of negotiating and closing on meaningful acq
Slide 15: Recent Healthcare Facility Acquisitions
Sila continues to acquire and develop institutional quality healthcare facilities that complement its already strong and resilient portfolio. The Company remains focused on creating additional value for stockholders through accretive opportunities in the market, including deployment of construction
Slide 16: Operating Metrics
Operating Metrics Tampa Healthcare Facility, Florida 3
Slide 17: Real Estate Investments and Net Debt / EBITDAre
$2.2 B $2.2 B $2.3 B $2.4 B $2.4 B $1.1 B $1.1 B 2019 2020 2021 2022 Q1 2023 Data Center Healthcare Year-over-year the Company has demonstrated admirable operating metrics through the combination of a strong and resilient portfolio paired with strategic and meaningful transactions. Total Real Estate
Slide 18: Consistent Operating Performance
Sustained operating metrics further demonstrate the dependability of our tenants and assets. Cash NOI(1) Core FFO Payout Ratio(2) $82.0 M $135.4 M $148.1 M $162.6 M $45.6 M 2019 2020 2021 2022 1Q23 95.0% 77.0% 69.5% 72.8% 67.0% 2019 2020 2021 2022 1Q23 $101.2 M $165.8 M $172.8 M $180.0 M $49.6 M 201
Slide 19: Balance Sheet
Balance Sheet Allen Healthcare Facility, Texas 4
Slide 20: Strong Balance Sheet and Disciplined Debt Strategy
Sila’s strong balance sheet exhibits efficient use of capital and a disciplined debt strategy, allowing for significant operational flexibility and future growth. Interest Expense(4) & WA Rate on O/S DebtFixed(1) vs. Variable Rate Exposure Debt Maturity Schedule(2)(3) • Approximately $522M liquidity
Slide 21: Leadership
Leadership Silverdale Healthcare Facility, Washington 5
Slide 22: Experienced Management Team
22 Our accomplished leadership team has more than a century of relevant industry experience. 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 Kay C. Neely Executive Vice Pr
Slide 23: Robust Corporate Governance Led by Experienced Board
Our Board of Directors brings a diverse array of industry insights and business experience and perspectives to the Company. * Denotes Independent Director 23 Robust Corporate Governance Lead by Experienced Board of Directors 5 Jonathan Kuchin, Chairman of the Board* Member of Audit Committee • Forme
Slide 24: Corporate Governance
24 Corporate Governance5 10+ years as an SEC registrant (since inception) Experienced Board of Directors, Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee Committee Charters (available on website) Non-staggered annual elections of Board of Directors
Slide 25: Environmental, Social & Governance
Environmental, Social & Governance Katy Healthcare Facility, Texas 6
Slide 26: Environmental, Social & Governance practices
Sila believes in maintaining a healthy, prosperous, and sustainable work environment through stewardship of the environment, the community, the employees, and strong corporate governance practices. • Sila promotes community involvement with contributions and charitable efforts • All employees comple
Slide 27: Appendix
Appendix Akron Healthcare Facility, Ohio
Slide 28: 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 29: Non-GAAP Measures: FFO, Core FFO, and AFFO
Non-GAAP Measures and Definition of Terms 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) (calculated in accordance with GAAP), excluding gains (or losses) from sales of real est
Slide 30: FFO, Core FFO, and AFFO (Cont'd)
Non-GAAP Measures and Definition of Terms Funds from Operations (FFO), Core FFO, and Adjusted FFO (AFFO) (Cont’d) 30 Quarter Ended March 31, 2023 Net income (loss) attributable to common stockholders 2,782$ 36,776$ 402,660$ (7,978)$ 14,200$ Adjustments: Depreciation and amortization 74,104 105,476 8
Slide 31: Liquidity, Net Debt and NAV
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 the end of the period. Net Debt Net debt, a non-GAAP financial measure, represents principal debt outstanding less cash a
Slide 32: Net Operating Income (NOI) and Cash NOI
Net Operating Income (NOI) and Cash NOI NOI, a non-GAAP financial measure, is defined as rental revenue, less rental expenses, on an accrual basis, excluding general and administrative expenses, depreciation and amortization, impairment losses, gain on real estate disposition, and interest and other
Slide 33: Net Operating Income (NOI) and Cash NOI (Cont'd)
Net Operating Income (NOI) and Cash NOI (Cont’d) Non-GAAP Measures and Definition of Terms 33 Quarter Ended March 31, 2023 Healthcare: Rental revenue 101,212$ 165,781$ 172,838$ 179,986$ 49,644$ Rental expenses (10,714) (16,397) (17,712) (17,950) (4,850) Net operating income 90,498 149,384 155,126 16
Slide 34: Contact Information
Contact Information Corporate Address www.SilaRealtyTrust.com 1001 Water Street Suite 800 Tampa, FL 33602 Miles Callahan Senior Vice President, Capital Markets & Investor Relations 813.316.4259 mcallahan@silarealtytrust.com