Sila Realty Trust, Inc. · NYSE:SILA
Sila Realty Trust — Nareit REITweek 2025
37 slides from Sila Realty Trust's conference presentation, May 30, 2025
Slide 1: Nareit REITweek Company Presentation June 2025
Nareit REITweek Company Presentation June 2025 Skillful and Thoughtful Investing
Slide 2: Disclosures: Forward Looking Statements
2 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, an
Slide 3: Introductions
3 3 Michael A. Seton President and Chief Executive Officer Founder and Board Member Kay C. Neely Executive Vice President and Chief Financial Officer Miles F. Callahan Senior Vice President Capital Markets and Investor Relations Introductions Christopher K. Flouhouse Executive Vice President and Chi
Slide 4: Sila Realty Trust is a net lease REIT focused on healthcare properties
Sila Realty Trust is a net lease REIT focused on institutional quality healthcare properties along the continuum of care. We believe Sila offers REIT investors the best of both worlds - participation in the large and defensive healthcare sector while receiving the benefits of a triple net lease stru
Slide 5: At a Glance
5 5.0x Interest Coverage Ratio 3.5x Net Debt to EBITDAre Ratio(4) 100% Unencumbered ABR $2.0B Enterprise Value $598.5M Liquidity(5) 26.2% Net Debt Leverage Ratio(3) At a Glance 9.7 Yrs Wtd. Average Remaining Lease Term 96.0% Portfolio Leased 2.2% Wtd. Average Contractual Annual Rent Escalation $2.3B
Slide 6: Sila's Philosophy and Objectives
Sila’s Philosophy and Objectives Growth • Long lease terms and contractual rent growth support long-term, sustainable earnings growth • Triple-net lease structure limits exposure to expense inflation • Exclusive focus on the resilient and growing healthcare sector with strong economic and demographi
Slide 7: Sila Demonstrates Strong Metrics Relative to Peers
7 Sila Demonstrates Strong Metrics Relative to Peers 9.7 Yrs 10.9 Yrs 5.7 Yrs SILA Net Lease Peer Average Healthcare Peer Average Long Lease Term 96.0% 99.1% 92.0% SILA Net Lease Peer Average Healthcare Peer Average Portfolio Leased 3.5x 4.7x 6.1x SILA Net Lease Peer Average Healthcare Peer Average
Slide 8: Why Healthcare? A Large, Growing Market in a Defensible Sector
8 Why Healthcare? A Large, Growing Market in a Defensible Sector Number of Americans Aged 65+ 2022 58 Million 17% of Total Population 2050 82 Million 23% of Total Population 47% increase Source: U.S. Census Bureau, 2023 National Population Projections $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,00
Slide 9: Net Lease REIT Focused on High-Quality Healthcare Assets
9 Lubbock Healthcare Facility 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. Brownsburg Healthcare Facility Reading Hea
Slide 10: The Case for Medical Outpatient Buildings
10 Sources: CBRE & UnitedHealth Group $62.4M ABR 37.0% ABR% 6.7 Yrs WALT $26.59 ABR / SF Sila MOB Highlights The Case for Medical Outpatient Buildings (MOBs) • Strong Tailwinds • Seniors are expected to increase total outpatient healthcare spending by 31% to nearly $2 trillion by 2030. • MOBs optimi
Slide 11: Post-Acute Care and Inpatient Rehabilitation Market Growth
11 • Robust Post-Acute Care Market Growth • The U.S. post-acute care market is projected to nearly double over the next decade, growing from $820 billion in 2022 to $1.6 trillion by 2032, reflecting a CAGR of 7.1%. • Demographic Tailwinds & Demand Acceleration • According to the National Library of
Slide 12: Surgical Hospitals and Micro Hospitals
12 • Surgical Hospitals • While many routine surgeries have migrated to outpatient settings, inpatient surgical hospitals are indispensable for complex procedures such as cardiovascular surgeries, neurosurgeries, and multi-organ transplants. These high-acuity services necessitate advanced infrastruc
Slide 13: Geographic Diversification with a Focus on Growing Demographics
13 Geographic Diversification with a Focus on Growing Demographics (1) Represents each state’s annualized March 2025 contractual base rent as a percentage of total annualized March 2025 contractual base rent. All data as of March 31, 2025 Top Five States by ABR(1) 28.1% Texas 7.2% Oklahoma 5.7% Loui
Slide 14: Proven Acquisition Track Record
14 Proven Acquisition Track Record (1) Excludes two undeveloped land parcels. (2) Total real estate investment at cost divided by properties owned, excluding land parcels. (3) Includes the sale of Sila’s 29 property data center portfolio for $1.3 billion. All data as of March 31, 2025, unless noted
Slide 15: Broad Acquisition Sourcing Network
15 Broad Acquisition Sourcing Network Affords Opportunity to be Highly Selective On-site property tours and tenant, guarantor, and/or sponsor interviews are conducted before closing Strong relationships with tenants, private real estate owners, brokers, and developers, drive a mix of on- and off-mar
Slide 16: Asset Strategy and Platform Positioned for Growth
16 Asset Strategy and Platform Positioned for Growth Targeted Investments + High Quality Facilities • Class A, recent construction or newly renovated properties, purpose built for healthcare services • Single or multi-tenant facilities with strong anchor tenants • Specialized facilities with substan
Slide 17: Strategy in Action: Dover Healthcare Facility
17 Strategy in Action: Dover Healthcare Facility High Quality Facilities Institutional quality and well-maintained facility with adjacent land parcels on either side offering expansion opportunities beyond the existing, well utilized, facility envelope. Strategic Locations The property is the only I
Slide 18: Strategy in Action: Knoxville Healthcare Facility
18 Strategy in Action: Knoxville Healthcare Facility High Quality Facilities Recently constructed, heavily utilized facility that was built-to-suit for the tenant’s specific needs; including expansion options within the existing footprint to accommodate continued growth. Strategic Locations Located
Slide 19: Tenant Strength and Recognition
19 2.7% 3.7% 4.6% 4.9% 5.5% 5.5% 5.8% 6.8% 7.8% 15.6% Tenant Strength and Recognition (1) Based on annualized March 2025 contractual base rent. (2) Includes tenants under common control. (3) Lifepoint Health, Inc., or Lifepoint, is a partner in joint ventures that lease certain of our properties, wi
Slide 20: EBITDARM Coverage Ratio
20 EBITDARM Coverage Ratio EBITDARM Coverage Ratio(1)(2) % of ABR by EBITDARM Coverage Ratio(1)(2)(4) EBITDARM Coverage % of ABR 7.58x15.4%Medical Outpatient Building 4.24x29.9%Inpatient Rehabilitation Facility 5.19x28.0%Surgical and Specialty Facilities(3) 5.30x73.3%Reporting Properties 26.7%Non-Re
Slide 21: Diversified and Secure Tenancy
21 Diversified and Secure Tenancy Sila’s 136 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) 37.0% 31.2% 31.8% Medical Outpatient Build
Slide 22: Strong Operating Metrics from Long-Term Leases
22 Strong Operating Metrics from Long-Term Leases 9.7 Yrs Wtd. Average Remaining Lease Term 96.0% Portfolio Leased 5.3M Rentable Square Feet 80.0% ABR with > 5 Yrs to Maturity 169 Total Leases(3) $32.96 Average ABR/Leased SF Tenant Lease Expiration Schedule(1) (1) The graph includes a tenant who has
Slide 23: Fortified Balance Sheet
23 $275 M $250 M $32 M 2025 2026 2027 2028 2029 2030 $ 56 8 M U n d ra w n P or tio n o f t h e R ev ol ve r FFO Payout Ratio (1) 74.5% 77.3% 77.1% 2023 2024 2025 YTD 68.8% 69.7% 76.4% 2023 2024 2025 YTD Fortified Balance Sheet (1) FFO Payout Ratio and AFFO Payout Ratio are calculated by dividing di
Slide 24: Experienced Management Team
24 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 (n
Slide 25: Robust Corporate Governance Led by Experienced Board of Directors
25 Robust Corporate Governance Led by Experienced Board of Directors * Denotes Independent Director 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
Slide 26: Commitment to Corporate Governance
26 26 Commitment to Corporate Governance Experienced Board of Directors, Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee Majority independent Board of Directors (83%), who bring a diverse array of backgrounds, experience, and perspectives 10+ years as
Slide 27: Management with a History of Executing on Shareholder Friendly Initiatives
27 Management with a History of Executing on Shareholder Friendly Initiatives Founding of Sila Realty Trust, Inc. 2014 Sale of predecessor company’s data center portfolio, $556.2M special cash distribution ($3.00/share) paid to predecessor company shareholders from the sale proceeds 2018 Merger with
Slide 28: Appendix
Marana Healthcare Facility, Arizona Appendix
Slide 29: Non-GAAP Measures and Definition of Terms
29 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 ca
Slide 30: Non-GAAP Measures and Definition of Terms: EBITDARM
30 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 “O
Slide 31: Non-GAAP Measures and Definition of Terms: Enterprise Value, FFO
31 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 (calculate
Slide 32: Non-GAAP Measures: FFO, Core FFO, and AFFO Reconciliation
32 Non-GAAP Measures and Definition of Terms Funds from Operations (FFO), Core FFO, and Adjusted FFO (AFFO) (Cont’d) (1) The year ended December 31, 2023, includes $5.7 million of lease termination fee income received, and year ended December 31, 2024, includes $4.1 million of lease termination fee
Slide 33: Non-GAAP Measures and Definition of Terms: Liquidity, NAV
33 Non-GAAP Measures and Definition of Terms Liquidity A financial metric that represents the outstanding cash and cash equivalents combined with the remaining borrowing base availability on the Company’s credit facility at a point in time. Market Capitalization The total number of outstanding share
Slide 34: Non-GAAP Measures and Definition of Terms: NOI
34 Non-GAAP Measures and Definition of Terms Net Operating Income (NOI), Cash NOI and Same Store Cash NOI NOI, a non-GAAP financial measure, is defined as rental revenue, less rental expenses, on an accrual basis. Cash NOI is calculated to exclude the impact of GAAP adjustments to rental revenue and
Slide 35: Non-GAAP Measures: NOI and Cash NOI Reconciliation
35 Non-GAAP Measures and Definition of Terms Net Operating Income (NOI), Cash NOI and Same Store Cash NOI (Cont’d) March 31, December 31, March 31, 2025 2024 2024 Rental revenue 48,256$ 46,545$ 50,639$ Rental expenses (6,326) (5,912) (5,554) Net operating income 41,930 40,633 45,085 Adjustments: Str
Slide 36: Non-GAAP Measures and Definition of Terms: Remaining Lease Term
36 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
Slide 37: 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 IR@silarealtytrust.com