Sila Realty Trust, Inc.

For full-year 2025, cash NOI was $169.9 million versus $168.6 million in 2024, up 0.8%. FFO per share was $2.16, up 3.6% year over year, and AFFO per share was $2.18, down 5.8% year over year. Same-store cash NOI increased 0.9%, and if one-time lease termination and severance fees are excluded, cash NOI growth would have been 4.4% and same-store cash NOI growth 1.1%. Portfolio-wide EBITDARM rent coverage was 5.9x versus 5.3x in 2024, or 5.7x excluding Saginaw. Net debt to EBITDAre was 3.9x, liquidity exceeded $480 million, and outstanding debt under unsecured credit facilities was $676 million at a weighted average interest rate of 4.7%. For 2026, management did not provide formal per-share guidance, but said acquisition volume this year should be similar to last year, with another acquisition already completed after year-end and more capital likely deployed toward existing-property expansion opportunities.

Michael Seton framed 2025 as Sila’s first full public year and emphasized that the company executed its strategy in a disciplined, thoughtful way. He highlighted the shift toward larger institutional ownership, the strength of the necessity-based health care portfolio, and continued portfolio upgrades through acquisitions, redevelopment projects, and tenant-credit improvements. His tone was confident but measured, repeatedly stressing caution, balance sheet discipline, and a willingness to pursue growth only when risk-adjusted returns are attractive.

Kay Neely said the company delivered strong financial results from disciplined operational integrity and capital allocation. She cited $169.9 million of cash NOI, $2.16 of FFO per share, $2.18 of AFFO per share, and explained the year-over-year changes through acquisitions, same-store growth, disposition activity, Stoughton vacancy, and the impact of 2024 one-time fees. She also pointed to 3.9x net debt to EBITDAre, more than $480 million of liquidity, and $676 million of debt at 4.7% average interest as evidence of a strong balance sheet and flexibility for acquisitions, share repurchases, or other capital uses.

Analysts focused on acquisition yields, implied valuation, stock repurchases, and how much leverage capacity could be deployed in 2026. Management said similar assets are generally trading around a 7.0% cash cap rate on a blended basis, but noted they are cautious about buying back stock because it would reduce market liquidity while the company is still building its institutional base. On leverage, Seton said reaching the midpoint of the target range could support about $225 million of additional investment, or as much as $375 million at the high end, and he expects 2026 acquisition volume to be similar to 2025, with more activity potentially weighted toward the back half of the year.