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Sila REIT Reports Positive Net Income of More Than $24 Million in 2023

Sila REIT Reports Positive Net Income of More Than $24 Million in 2023. Alternative investments, healthcare, real estate investment trust, REIT, Sila, Sila Realty Trust, Carter

Sila Realty Trust Inc., a publicly registered, non-traded real estate investment trust formerly known as Carter Validus Mission Critical REIT II, announced operating results for the fourth quarter and year ended Dec. 31, 2023. The company reported net income of more than $24 million for the year. In 2022, the company reported a net loss of nearly $8 million.

Sila declared distributions per share of common stock in the amount of $0.40 at year’s end. Its dividend payout to adjusted funds from operations, or AFFO, ratio was 68.8% at year’s end.

“During 2023, the company was firmly focused on rigorous balance sheet management while continuing to identify acquisitions with solid creditworthy tenancy,” stated Michael Seton, president and chief executive officer. “We were patient and prudent in allocating capital due to a dramatic increase in short- and long-term interest rates, which outpaced the expectations of potential sellers and general real estate valuations. We are proud of the two Class A medical outpatient buildings that we added to our portfolio, while disposing of certain non-strategic assets…”

“We believe our quarter-over-quarter and year-over-year AFFO growth demonstrates the durability of our property income streams. … We will continue to monitor the dynamic economic landscape, as our desire to pursue a public market listing on a national exchange remains a primary focus, conditioned upon the financial market opportunity,” Seton added.

Overarching Sila REIT highlights include:

  • In 2023, the company acquired two healthcare properties in two separate transactions for an aggregate purchase price of $69.8 million and sold three real estate properties for $271.1 million, generating net proceeds of $270.3 million.
  • Sila’s properties had a weighted average leased rate of 99.4%, a weighted average remaining lease term of 8.5 years, and a weighted average rent escalation rate of 2.2%.
  • As of Dec. 31, 2023, Sila had total principal debt outstanding of $525 million under the company’s credit facility, with a net debt leverage ratio, which is the ratio of principal debt outstanding less cash to adjusted fair value of real estate investments, of approximately 16.1%.
  • As of Dec. 31, Sila’s outstanding debt was comprised of 100% fixed rate debt using interest rate swaps. Its weighted average interest rate on total debt was 3.3%.
  • As of Dec. 31, Sila had liquidity of approximately $702 million, consisting of $202 million in cash and cash equivalents and $500 million in borrowing base availability under its credit facility.

Highlights of the Quarter Ended Dec. 31, 2023, vs. Dec. 31, 2022

  • Rental revenue was $45.9 million, an increase of 5%.
  • Net loss attributable to common stockholders was $9 million, a decrease of 74%.
  • Funds from operations, or FFO, was $27.4 million, a decrease of 2%.
  • AFFO was $32.7 million, an increase of 6%.

Highlights of the Year Ended Dec. 31, 2023, vs. Dec. 31, 2022

  • Rental revenue was $189.1 million, a year-over-year increase of 5%.
  • Net income attributable to common stockholders was $24 million, an increase of 401%.
  • FFO was $122.5 million, an increase of 6%.
  • AFFO was $132.7 million, an increase of 9%.

Sila Realty Trust Inc. is a net lease real estate investment trust headquartered in Tampa, Fla., with a strategic focus on investing in healthcare. As of Dec. 31, 2023, the REIT owned 131 real estate properties and two undeveloped land parcels located in 62 markets across the United States. 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.

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