Sila Realty Trust Announces Third Quarter 2024 Results
Sila Realty Trust (NYSE: SILA) reported Q3 2024 results with net income of $11.9 million ($0.21 per diluted share) and Cash NOI of $40.8 million. The REIT acquired a $28.4 million inpatient rehabilitation facility in Arkansas and sold Fort Myers Healthcare Facilities for $15.5 million. The company completed a $50 million modified Dutch Auction tender offer and maintains strong liquidity of $528.6 million. The portfolio consists of 136 properties with 95.5% occupancy and an 8.3-year weighted average remaining lease term. Monthly cash distributions of $0.1333 per share were declared, with plans to shift to quarterly distributions in 2025.
Sila Realty Trust (NYSE: SILA) ha riportato i risultati del Q3 2024 con un utile netto di 11,9 milioni di dollari (0,21 dollari per azione diluita) e Cash NOI di 40,8 milioni di dollari. Il REIT ha acquisito una struttura di riabilitazione per pazienti ricoverati del valore di 28,4 milioni di dollari in Arkansas e ha venduto le strutture sanitarie di Fort Myers per 15,5 milioni di dollari. L'azienda ha completato un'offerta di acquisto modificata in asta olandese da 50 milioni di dollari e mantiene una buona liquidità di 528,6 milioni di dollari. Il portafoglio consiste di 136 proprietà con un tasso di occupazione del 95,5% e una durata media residua dei contratti di 8,3 anni. Sono state dichiarati pagamenti mensili in contante di 0,1333 dollari per azione, con piani per passare a distribuzioni trimestrali nel 2025.
Sila Realty Trust (NYSE: SILA) reportó los resultados del Q3 2024 con un ingreso neto de 11,9 millones de dólares (0,21 dólares por acción diluida) y Cash NOI de 40,8 millones de dólares. El REIT adquirió una instalación de rehabilitación para pacientes hospitalizados por 28,4 millones de dólares en Arkansas y vendió las instalaciones de atención médica de Fort Myers por 15,5 millones de dólares. La compañía completó una oferta de compra modificada tipo subasta holandesa por 50 millones de dólares y mantiene una sólida liquidez de 528,6 millones de dólares. La cartera consta de 136 propiedades con un 95,5% de ocupación y un promedio ponderado de duración del contrato de 8,3 años. Se declararon distribuciones en efectivo mensuales de 0,1333 dólares por acción, con planes de pasar a distribuciones trimestrales en 2025.
시라 리얼티 트러스트 (NYSE: SILA)는 2024년 3분기 실적을 발표하며 순이익 1천 190만 달러 (희석 주당 0.21 달러) 및 현금 NOI 4천 80만 달러를 기록했습니다. 이 REIT는 아칸소에서 2천 840만 달러에 입원 재활 시설을 인수하였고, 포트마이어스 의료 시설을 1천 550만 달러에 매각했습니다. 이 회사는 5천만 달러 규모의 수정된 네덜란드식 경매 입찰을 완료했으며 5억 2천 860만 달러의 강한 유동성을 유지하고 있습니다. 포트폴리오는 136개의 부동산으로 구성되어 있으며, 점유율은 95.5%이고 임대 계약의 평균 잔여 기간은 8.3년입니다. 주당 0.1333 달러의 월 현금 배당이 선언되었으며, 2025년부터는 분기별 배당으로 전환할 계획입니다.
Sila Realty Trust (NYSE: SILA) a publié ses résultats du 3ème trimestre 2024 avec un revenu net de 11,9 millions de dollars (0,21 dollar par action diluée) et Cash NOI de 40,8 millions de dollars. Le REIT a acquis un établissement de réhabilitation pour patients hospitalisés d'une valeur de 28,4 millions de dollars en Arkansas et a vendu les installations de soins de Fort Myers pour 15,5 millions de dollars. L'entreprise a complété une offre d'achat modifiée aux enchères néerlandaises de 50 millions de dollars et maintient une liquidité solide de 528,6 millions de dollars. Le portefeuille se compose de 136 propriétés avec un taux d'occupation de 95,5 % et une durée moyenne pondérée restante des baux de 8,3 ans. Des distributions mensuelles en espèces de 0,1333 dollar par action ont été déclarées, avec des projets de passage à des distributions trimestrielles en 2025.
Sila Realty Trust (NYSE: SILA) hat die Ergebnisse des 3. Quartals 2024 mit einem Nettoeinkommen von 11,9 Millionen Dollar (0,21 Dollar pro verwässerter Aktie) und Cash NOI von 40,8 Millionen Dollar veröffentlicht. Der REIT erwarb eine Rehabilitationseinrichtung für stationäre Patienten im Wert von 28,4 Millionen Dollar in Arkansas und verkaufte die Fort Myers Gesundheitsanlagen für 15,5 Millionen Dollar. Das Unternehmen schloss ein modifiziertes holländisches Auktionsangebot über 50 Millionen Dollar ab und verfügt über eine starke Liquidität von 528,6 Millionen Dollar. Das Portfolio besteht aus 136 Immobilien mit einer Belegungsrate von 95,5 % und einer gewichteten durchschnittlichen verbleibenden Mietlaufzeit von 8,3 Jahren. Monatliche Barzahlungen von 0,1333 Dollar pro Aktie wurden beschlossen, mit dem Plan, ab 2025 auf vierteljährliche Auszahlungen umzuschwenken.
- Net income of $11.9 million ($0.21 per diluted share) in Q3 2024
- Strong liquidity position of $528.6 million
- High portfolio occupancy rate of 95.5%
- Strategic acquisition of $28.4 million rehabilitation facility
- Successful completion of $50 million tender offer
- Decrease in Cash NOI from $44.2M in Q3 2023 to $40.8M in Q3 2024
- 2.0% decrease in weighted average percentage of rentable square feet leased during Q3
- Loss of tenant Steward Health Care System due to bankruptcy
- Failed sale contract for Stoughton Healthcare Facility
Insights
The Q3 2024 results reveal a mixed performance for Sila Realty Trust. Key metrics show:
The company's portfolio metrics remain strong with
The Steward bankruptcy impact and GenesisCare lease amendments present near-term challenges, but the
The portfolio repositioning strategy shows careful market selection and asset management. The acquisition of the Fort Smith rehabilitation facility strengthens the company's presence in specialty healthcare, while the disposition of vacant GenesisCare properties demonstrates proactive risk management.
The shift to quarterly distributions in 2025 from monthly payments suggests a more conventional REIT approach, aligning with industry standards. The development of two new facilities through mezzanine loans (
The
Highlights for the quarter ended September 30, 2024:
-
Net income of
, or$11.9 million per diluted share$0.21 -
Cash net operating income*, or Cash NOI, of
$40.8 million -
Adjusted funds from operations*, or AFFO, of
, or$31.7 million per diluted share$0.57 -
Declared regular monthly cash distributions per share of
, representing an aggregate$0.13 33 per share for the quarter$0.40 -
Acquired a
inpatient rehabilitation facility in$28.4 million Fort Smith, Arkansas -
Sold the Fort Myers Healthcare Facility I and Fort Myers Healthcare Facility II, or the Fort Myers Healthcare Facilities, for a sales price of
, generating net proceeds of$15.5 million , excluding real estate tax pro-rations$14.7 million -
Concluded a modified "Dutch Auction" tender offer, or the Tender Offer, for an aggregate purchase price of approximately
, excluding all related costs and fees$50.0 million
Subsequent Events
-
On November 5, 2024, the Company entered into two mezzanine loans for the development of an inpatient rehabilitation facility and a behavioral healthcare facility in
Lynchburg, Virginia , or the Mezzanine Loans. The Mezzanine Loans have total loan amounts of and$12.5 million , respectively, and a maturity date of November 5, 2029. The Mezzanine Loans include purchase options for the Company for both the inpatient rehabilitation facility and the behavioral healthcare facility upon completion of construction.$5.0 million
Management Commentary
"During the third quarter the Company demonstrated its continued pursuit of strategic and thoughtful acquisitions with the addition of a market leading inpatient rehabilitation facility in
“We believe these continued efforts by our team contributed to solid results for the third quarter including cash net operating income of
“Thank you to everyone for the well wishes regarding Hurricane Helene and Hurricane Milton. Thankfully, all of our employees are safe and Sila’s properties in the affected areas experienced no material damage. Our thoughts are with those who were less fortunate as many communities continue their clean up and rebuilding efforts.”
*Some of the financial measures throughout this press release are non-GAAP measures. Refer to the Non-GAAP Financial Measures Reconciliation tables at the end of this press release for additional information and reconciliations to the most directly comparable GAAP measure.
Financial Results
Third quarter results include the acquisition of the Fort Smith Healthcare Facility, the disposition of the Fort Myers Healthcare Facilities, and the conclusion of the Tender Offer where the Company accepted for purchase 2.2 million shares of common stock at a purchase price of
Net Income
Our GAAP net income for the third quarter of 2024 was
Cash NOI*
Cash NOI was
Cash NOI was
Adjusted Funds from Operations (AFFO)*
AFFO was
AFFO for the first nine months of 2024 was
Real Estate Portfolio Highlights
Investment Activity
During the quarter ended September 30, 2024, the Company acquired one healthcare property in
During the quarter ended September 30, 2024, the Company sold the Fort Myers Healthcare Facilities for a sales price of
Portfolio
As of September 30, 2024, Sila's well diversified real estate portfolio consisted of 136 properties comprising approximately 5.3 million rentable square feet. The weighted average remaining lease term was approximately 8.3 years with
As of September 30, 2024, the weighted average percentage of rentable square feet leased was
Balance Sheet and Capital Markets Activities
Sila had a strong balance sheet and liquidity position totaling approximately
Total principal debt outstanding under the unsecured credit facility as of September 30, 2024 was
As a result of the Tender Offer, the Company accepted for purchase approximately 2.2 million shares of its common stock (which represented approximately
On August 16, 2024, the Company's board of directors, or the Board, authorized a share repurchase program of up to the lesser of 1.5 million shares of the Company's outstanding common stock, or
Distributions
The Company's dividend payout to AFFO ratio was
Conference Call and Webcast
A conference call and audio webcast for investors and analysts will be held on Tuesday, November 12, 2024, at 11:00 a.m. Eastern Time to discuss our third quarter 2024 operating results and to answer questions. The live and archived webcast can be accessed on the "Events" page of the Company's website at investors.silarealtytrust.com or by direct link at events.q4inc.com/attendee/591029814. The archived webcast will be available for 12 months following the call.
About Sila Realty Trust, Inc.
Sila Realty Trust, Inc., headquartered in
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 are intended to be covered by the safe harbor provided by the same. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties. No forward-looking statement is intended to, nor shall it, serve as a guarantee of future performance. You can identify the forward-looking statements by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will” and other similar terms and phrases, including statements about and references to investment opportunities and the availability thereof, intent to sell or lease the Stoughton Healthcare Facility, funding costs and fees related to the Tender Offer through available cash, the execution of our acquisition and growth strategy, strategic and thoughtful acquisitions, the Company's potential stock repurchases and the payment and announcement of future distributions. Forward-looking statements are subject to various risks and uncertainties and factors that could cause actual results to differ materially from the Company's expectations, and you should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond the Company's control and could materially affect the Company's results of operations, financial condition, cash flows, performance or future achievements or events. Additional factors include those described under the section entitled Item 1A. "Risk Factors" of Part I of the Company's 2023 Annual Report on Form 10-K, as filed with the SEC on March 6, 2024, and the risk factors described under section Item 1A. "Risk Factors" of Part II of our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024, as filed with the SEC on August 7, 2024, copies of which are available at www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
Supplemental Information
The Company routinely provides information for investors and the marketplace through press releases, SEC filings, public conference calls, and the Company's website at investors.silarealtytrust.com. The information that the Company posts to its website may be deemed material. Accordingly, the Company encourages investors and others interested in the Company to routinely monitor and review the information that the Company posts on its website, in addition to following the Company's press releases, public conference calls and SEC filings. A glossary of definitions (including those of certain non-GAAP financial measures) and other supplemental information may be found attached as Exhibit 99.2 to the Current Report on Form 8-K filed on November 12, 2024.
Non-GAAP Financial Measures
This press release includes certain financial performance measures not defined by
These non-GAAP financial measures should not be considered as alternatives to net income attributable to common stockholders (determined in accordance with GAAP) as indicators of our financial performance, as alternatives to cash flows from operating activities (determined in accordance with GAAP), or as measures of our liquidity, nor are these measures necessarily indicative of sufficient cash flows to fund all of our needs.
Condensed Consolidated Balance Sheets (amounts in thousands, except share data)
|
(Unaudited) |
|
|
||||
|
|
|
December 31, 2023 |
||||
ASSETS |
|||||||
Real estate: |
|
|
|
||||
Land |
$ |
160,984 |
|
|
$ |
157,821 |
|
Buildings and improvements, less accumulated depreciation of |
|
1,559,654 |
|
|
|
1,470,831 |
|
Total real estate, net |
|
1,720,638 |
|
|
|
1,628,652 |
|
Cash and cash equivalents |
|
28,606 |
|
|
|
202,019 |
|
Intangible assets, less accumulated amortization of |
|
130,982 |
|
|
|
134,999 |
|
Goodwill |
|
17,700 |
|
|
|
17,700 |
|
Right-of-use assets |
|
36,219 |
|
|
|
36,384 |
|
Other assets |
|
73,288 |
|
|
|
79,825 |
|
Total assets |
$ |
2,007,433 |
|
|
$ |
2,099,579 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||
Liabilities: |
|
|
|
||||
Credit facility, net of deferred financing costs of |
$ |
521,611 |
|
|
$ |
523,153 |
|
Accounts payable and other liabilities |
|
36,734 |
|
|
|
30,381 |
|
Intangible liabilities, less accumulated amortization of |
|
7,384 |
|
|
|
10,452 |
|
Lease liabilities |
|
41,229 |
|
|
|
41,158 |
|
Total liabilities |
|
606,958 |
|
|
|
605,144 |
|
Stockholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
550 |
|
|
|
570 |
|
Additional paid-in capital |
|
1,997,642 |
|
|
|
2,044,450 |
|
Distributions in excess of accumulated earnings |
|
(603,703 |
) |
|
|
(567,188 |
) |
Accumulated other comprehensive income |
|
5,986 |
|
|
|
16,603 |
|
Total stockholders’ equity |
|
1,400,475 |
|
|
|
1,494,435 |
|
Total liabilities and stockholders’ equity |
$ |
2,007,433 |
|
|
$ |
2,099,579 |
|
|
(1) |
Retroactively adjusted for the effects of the Reverse Stock Split effective May 1, 2024. |
Condensed Consolidated (Unaudited) Quarterly Statements of Comprehensive Income (amounts in thousands, except share data and per share amounts)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
|
|
|
|
||||||||
Rental revenue |
$ |
46,118 |
|
|
$ |
48,542 |
|
|
$ |
140,311 |
|
|
$ |
143,151 |
|
Expenses: |
|
|
|
|
|
|
|
||||||||
Rental expenses |
|
5,823 |
|
|
|
5,005 |
|
|
|
17,226 |
|
|
|
14,728 |
|
Listing-related expenses |
|
32 |
|
|
|
— |
|
|
|
3,012 |
|
|
|
— |
|
General and administrative expenses |
|
4,800 |
|
|
|
4,828 |
|
|
|
18,321 |
|
|
|
16,478 |
|
Depreciation and amortization |
|
17,865 |
|
|
|
18,097 |
|
|
|
57,009 |
|
|
|
55,452 |
|
Impairment and disposition losses |
|
792 |
|
|
|
— |
|
|
|
1,210 |
|
|
|
6,708 |
|
Total operating expenses |
|
29,312 |
|
|
|
27,930 |
|
|
|
96,778 |
|
|
|
93,366 |
|
Other (expense) income: |
|
|
|
|
|
|
|
||||||||
Gain on dispositions of real estate |
|
— |
|
|
|
1 |
|
|
|
76 |
|
|
|
22 |
|
Interest and other income |
|
597 |
|
|
|
23 |
|
|
|
3,889 |
|
|
|
170 |
|
Interest expense |
|
(5,468 |
) |
|
|
(5,653 |
) |
|
|
(15,955 |
) |
|
|
(16,939 |
) |
Total other (expense) income |
|
(4,871 |
) |
|
|
(5,629 |
) |
|
|
(11,990 |
) |
|
|
(16,747 |
) |
Net income attributable to common stockholders |
$ |
11,935 |
|
|
$ |
14,983 |
|
|
$ |
31,543 |
|
|
$ |
33,038 |
|
Other comprehensive (loss) income - unrealized (loss) gain on interest rate swaps, net |
|
(11,370 |
) |
|
|
2,315 |
|
|
|
(10,617 |
) |
|
|
1,433 |
|
Comprehensive income attributable to common stockholders |
$ |
565 |
|
|
$ |
17,298 |
|
|
$ |
20,926 |
|
|
$ |
34,471 |
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic(1) |
|
55,571,298 |
|
|
|
56,859,076 |
|
|
|
56,634,376 |
|
|
|
56,748,751 |
|
Diluted(1) |
|
56,081,618 |
|
|
|
57,320,665 |
|
|
|
57,094,737 |
|
|
|
57,210,977 |
|
Net income per common share attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic(1) |
$ |
0.21 |
|
|
$ |
0.26 |
|
|
$ |
0.55 |
|
|
$ |
0.58 |
|
Diluted(1) |
$ |
0.21 |
|
|
$ |
0.26 |
|
|
$ |
0.55 |
|
|
$ |
0.58 |
|
Distributions declared per common share(1) |
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
1.20 |
|
|
$ |
1.20 |
|
|
(1) |
Retroactively adjusted for the effects of the Reverse Stock Split effective May 1, 2024. |
Non-GAAP Financial Measures Reconciliation
A description of FFO, Core FFO and AFFO, and reconciliations of these non-GAAP measures to net income, the most directly comparable GAAP measure, and a description of same store cash NOI and reconciliation of this non-GAAP measure to rental revenue, the most directly comparable GAAP measure, are provided below.
Reconciliation of Net Income to FFO, Core FFO and AFFO (amounts in thousands)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income attributable to common stockholders |
$ |
11,935 |
|
|
$ |
14,983 |
|
|
$ |
31,543 |
|
|
$ |
33,038 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization of real estate assets |
|
17,841 |
|
|
|
18,073 |
|
|
|
56,938 |
|
|
|
55,384 |
|
Gain on dispositions of real estate |
|
— |
|
|
|
(1 |
) |
|
|
(76 |
) |
|
|
(22 |
) |
Impairment and disposition losses |
|
792 |
|
|
|
— |
|
|
|
1,210 |
|
|
|
6,708 |
|
FFO(1) |
$ |
30,568 |
|
|
$ |
33,055 |
|
|
$ |
89,615 |
|
|
$ |
95,108 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Listing-related expenses |
|
32 |
|
|
|
— |
|
|
|
3,012 |
|
|
|
— |
|
Severance |
|
3 |
|
|
|
43 |
|
|
|
1,866 |
|
|
|
83 |
|
Write-off of straight-line rent receivables related to prior periods |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,618 |
|
Accelerated stock-based compensation |
|
12 |
|
|
|
— |
|
|
|
875 |
|
|
|
— |
|
Amortization of above (below) market lease intangibles, including ground leases, net |
|
183 |
|
|
|
279 |
|
|
|
1,431 |
|
|
|
1,110 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
228 |
|
|
|
— |
|
Core FFO(1) |
$ |
30,798 |
|
|
$ |
33,377 |
|
|
$ |
97,027 |
|
|
$ |
97,919 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Deferred rent(2) |
|
333 |
|
|
|
325 |
|
|
|
3,054 |
|
|
|
1,188 |
|
Straight-line rent adjustments |
|
(1,294 |
) |
|
|
(1,217 |
) |
|
|
(3,767 |
) |
|
|
(4,108 |
) |
Amortization of deferred financing costs |
|
578 |
|
|
|
415 |
|
|
|
1,607 |
|
|
|
1,240 |
|
Stock-based compensation |
|
1,299 |
|
|
|
1,228 |
|
|
|
2,923 |
|
|
|
3,721 |
|
AFFO(1) |
$ |
31,714 |
|
|
$ |
34,128 |
|
|
$ |
100,844 |
|
|
$ |
99,960 |
|
|
(1) |
The three months ended September 30, 2023 include |
(2) |
The nine months ended September 30, 2024 include a |
Funds From Operations (FFO)
FFO is calculated consistent with NAREIT's definition, as net income (calculated in accordance with GAAP), excluding gains from sales of real estate assets, impairment of real estate assets and disposition losses from sales of real estate assets, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect FFO on the same basis. To date, we do not have any investments in unconsolidated partnerships or joint ventures. We believe FFO provides a useful understanding of our performance to investors and to our management, and when compared to year over year, FFO reflects the impact on our operations from trends in occupancy. It should be noted, however, that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently than the Company does, making comparisons less meaningful.
Core FFO
The Company believes Core FFO is a supplemental financial performance measure that provides investors with additional information to understand the Company's sustainable performance. The Company calculates Core FFO by adjusting FFO to remove the effect of certain GAAP non-cash income and expense items, unusual and infrequent items that are not expected to impact its operating performance on an ongoing basis, items that affect comparability to prior periods and/or items that are not related to its core real estate operations. Excluded items include listing-related expenses, severance, write-off of straight-line rent receivables related to prior periods, accelerated stock-based compensation, amortization of above- and below-market lease intangibles (including ground leases) and loss on extinguishment of debt. Other REITs may use different methodologies for calculating Core FFO and, accordingly, the Company’s Core FFO may not be comparable to other REITs.
AFFO
The Company believes AFFO is a supplemental financial performance measure that provides investors appropriate supplemental information to evaluate the ongoing operations of the Company. AFFO is a metric used by management to evaluate the Company's dividend policy. The Company calculates AFFO by further adjusting Core FFO for the following items: deferred rent, current period straight-line rent adjustments, amortization of deferred financing costs and stock-based compensation. Other REITs may use different methodologies for calculating AFFO and, accordingly, the Company’s AFFO may not be comparable to other REITs.
FFO, Core FFO and AFFO should not be considered to be more relevant or accurate than the GAAP methodology in calculating net income or in its applicability in evaluating the Company's operational performance. The method used to evaluate the value and performance of real estate under GAAP should be considered a more relevant measure of operating performance and more prominent than the non-GAAP FFO, Core FFO and AFFO measures and the adjustments to GAAP in calculating FFO, Core FFO and AFFO.
Reconciliation of Net Income to Same Store Cash Net Operating Income (Same Store Cash NOI) (amounts in thousands)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Rental revenue |
|
$ |
46,118 |
|
|
$ |
48,542 |
|
|
$ |
140,311 |
|
|
$ |
143,151 |
|
Rental expenses |
|
|
(5,823 |
) |
|
|
(5,005 |
) |
|
|
(17,226 |
) |
|
|
(14,728 |
) |
Net operating income |
|
|
40,295 |
|
|
|
43,537 |
|
|
|
123,085 |
|
|
|
128,423 |
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Straight-line rent adjustments, net of write-offs |
|
|
(1,294 |
) |
|
|
(1,217 |
) |
|
|
(3,767 |
) |
|
|
(2,490 |
) |
Amortization of above (below) market lease intangibles, including ground leases, net |
|
|
183 |
|
|
|
279 |
|
|
|
1,431 |
|
|
|
1,110 |
|
Internal property management fee |
|
|
1,295 |
|
|
|
1,237 |
|
|
|
3,827 |
|
|
|
3,918 |
|
Deferred rent(1) |
|
|
333 |
|
|
|
325 |
|
|
|
3,054 |
|
|
|
1,188 |
|
Cash NOI(1,2) |
|
|
40,812 |
|
|
|
44,161 |
|
|
|
127,630 |
|
|
|
132,149 |
|
Non-same store cash NOI(2,3) |
|
|
(3,888 |
) |
|
|
(7,019 |
) |
|
|
(16,484 |
) |
|
|
(21,852 |
) |
Same store cash NOI(4) |
|
|
36,924 |
|
|
|
37,142 |
|
|
|
111,146 |
|
|
|
110,297 |
|
Listing-related expenses |
|
|
(32 |
) |
|
|
— |
|
|
|
(3,012 |
) |
|
|
— |
|
General and administrative expenses |
|
|
(4,800 |
) |
|
|
(4,828 |
) |
|
|
(18,321 |
) |
|
|
(16,478 |
) |
Depreciation and amortization |
|
|
(17,865 |
) |
|
|
(18,097 |
) |
|
|
(57,009 |
) |
|
|
(55,452 |
) |
Impairment and disposition losses |
|
|
(792 |
) |
|
|
— |
|
|
|
(1,210 |
) |
|
|
(6,708 |
) |
Gain on dispositions of real estate |
|
|
— |
|
|
|
1 |
|
|
|
76 |
|
|
|
22 |
|
Interest and other income |
|
|
597 |
|
|
|
23 |
|
|
|
3,889 |
|
|
|
170 |
|
Interest expense |
|
|
(5,468 |
) |
|
|
(5,653 |
) |
|
|
(15,955 |
) |
|
|
(16,939 |
) |
Straight-line rent adjustments, net of write-offs |
|
|
1,294 |
|
|
|
1,217 |
|
|
|
3,767 |
|
|
|
2,490 |
|
Amortization of above (below) market lease intangibles, including ground leases, net |
|
|
(183 |
) |
|
|
(279 |
) |
|
|
(1,431 |
) |
|
|
(1,110 |
) |
Internal property management fee |
|
|
(1,295 |
) |
|
|
(1,237 |
) |
|
|
(3,827 |
) |
|
|
(3,918 |
) |
Deferred rent(1) |
|
|
(333 |
) |
|
|
(325 |
) |
|
|
(3,054 |
) |
|
|
(1,188 |
) |
Non-same store cash NOI(2,3) |
|
|
3,888 |
|
|
|
7,019 |
|
|
|
16,484 |
|
|
|
21,852 |
|
Net income attributable to common stockholders |
|
$ |
11,935 |
|
|
$ |
14,983 |
|
|
$ |
31,543 |
|
|
$ |
33,038 |
|
|
(1) |
The nine months ended September 30, 2024 include a |
(2) |
The three months ended September 30, 2023 include |
(3) |
The nine months ended September 30, 2024 include |
(4) |
The nine months ended September 30, 2024 include |
NOI
The Company defines net operating income, or NOI, a non-GAAP financial measure, as rental revenue, less rental expenses, on an accrual basis.
Same Store Properties
In order to evaluate the overall portfolio, management analyzes the NOI of same store properties. The Company defines "same store properties" as properties that were owned and operated for the entirety of both calendar periods being compared and excludes properties under development, re-development, or classified as held for sale. By evaluating same store properties, management is able to monitor the operations of the Company's existing properties for comparable periods to measure the performance of the current portfolio and readily observe the expected effects of new acquisitions and dispositions on net income. There were 126 same store properties for the quarters ended September 30, 2024 and 2023.
Cash NOI
The Company defines Cash NOI as NOI for its properties excluding the impact of GAAP adjustments to rental revenue and rental expenses, consisting of straight-line rent adjustments, net of write-offs, amortization of above- and below-market lease intangibles (including ground leases) and internal property management fees, then including deferred rent received in cash. Cash NOI is used to evaluate the cash-based performance of the Company’s real estate portfolio. Same store Cash NOI is calculated to exclude non-same store Cash NOI. The Company believes that NOI and Cash NOI both serve as useful supplements to net income because they allow investors and management to measure unlevered property-level operating results and to compare these results to the comparable results of other real estate companies on a consistent basis. The Company uses both NOI and Cash NOI to make decisions about resource allocations and to assess the property-level performance of the real estate portfolio.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241112344122/en/
Investor Contact:
Miles
833-404-4107
IR@silarealtytrust.com
Source: Sila Realty Trust, Inc.
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