Sila Realty Trust Reports Second Quarter 2022 Results
Sila Realty Trust Inc., a publicly registered, non-traded real estate investment trust formerly known as Carter Validus Mission Critical REIT II, has reported its financial results for the second quarter of 2022.
Sila Realty Trust Inc., a publicly registered, non-traded real estate investment trust formerly known as Carter Validus Mission Critical REIT II, has reported its financial results for the second quarter of 2022.
Net income attributable to common stockholders was $12 million for the quarter ended June 30, 2022, a decrease of 25 percent compared to net income attributable to common stockholders of $16.1 million for the same quarter in 2021.
Funds from operations attributable to common stockholders was $29.8 million for the second quarter of 2022, a decrease of 33 percent compared to $44.2 million for the second quarter of 2021.
Adjusted funds from operations attributable to common stockholders was $29.4 million for the second quarter of 2022, a decrease of 29 percent compared to $41.3 million for the second quarter of 2021.
Sila Realty Trust noted that the decreases are primarily due to it owning a substantially smaller portfolio of properties subsequent to selling the data center portfolio in July 2021, which was partially offset by an increase in rental revenue from the acquisition of nine operating properties and the placement of one development property in service since April 1, 2021.
Net operating income attributable to operating healthcare properties was $41.9 million for the quarter ended June 30, 2022, an increase of 3 percent compared to $40.5 million for the quarter ended June 30, 2021.
Rental revenue attributable to operating healthcare properties was $44.9 million for the quarter ended June 30, 2022, an increase of 3 percent compared to $43.7 million for the quarter ended June 30, 2021.
Same store NOI attributable to operating healthcare properties was $39.8 million for the second quarter 2022, a decrease of (0.3) percent compared to $39.9 million for the same quarter in 2021.
The REIT explained that the increase in NOI and rental revenue is primarily attributable to the acquisition of nine operating properties and the placement of one development property in service since April 1, 2021.
“We are excited with the continuing strong performance of the company as evidenced by higher rental revenue and net operating income, when compared to the second quarter of 2021 resulting from our carefully assembled portfolio of healthcare properties. These increases resulted from both the durability of the rental revenue from our same store properties and property acquisitions completed while adhering to our underwriting and capital allocation strategy”, stated Michael Seton, president and chief executive officer. “We have also taken key steps to further strengthen our balance sheet by closing a new term loan agreement during the quarter, which resulted in the extension of our debt maturities to 2028 and the significant reduction of our debt cost of capital. We remain focused on maximizing stockholder value and achieving liquidity, which may include a public listing of the company…”
During the second quarter of 2022, the company purchased four healthcare properties, located in the Pittsburgh and Prosser, Washington markets, for a total of $22.9 million. The properties are composed of 54,300 rentable square feet and are fully leased to five tenants.
As of June 30, 2022, the REIT owned 130 operating real estate properties and two undeveloped land parcels, located in 57 markets, composed of approximately 5.4 million rentable square feet with a total real estate investment of approximately $2.2 billion. The company’s properties had a weighted average occupancy of 99.4 percent and weighted-average remaining lease term of 9.4 years.
As of June 30, 2022, the company had liquidity of approximately $593.1 million, consisting of $23.1 million in cash and cash equivalents and $570.0 million in borrowing base availability under its credit facility.
As of June 30, 2022, Sila Realty Trust had total principal debt outstanding of $505.0 million under its credit facility, with a net debt leverage ratio, which is the ratio of principal debt outstanding less cash to fair value of real estate plus the total aggregate cost of properties acquired after the net asset value date of May 31, 2021, of 20.7 percent. The company’s outstanding debt was composed of 96 percent fixed rate debt through the use of interest rate swaps and 4 percent variable rate debt.
Sila Realty Trust owned 130 operating healthcare properties and two undeveloped land parcels located in 57 markets across the United States, as of the second quarter of 2022. The REIT raised approximately $1.2 billion in investor equity after launching its initial offering in May 2014. Its follow-on offering closed in November 2018 after raising $129.3 million.
