Sila Realty Trust, Inc. Q1 2024 Financial Report

Press release · 05/09 03:08
Sila Realty Trust, Inc. Q1 2024 Financial Report

Sila Realty Trust, Inc. Q1 2024 Financial Report

Sila Realty Trust, Inc. reported a net loss of $1.2 million for the quarter ended March 31, 2024, compared to a net loss of $0.9 million for the same period in 2023. The company’s total assets increased to $1.2 billion, while total liabilities remained stable at $1.1 billion. The number of outstanding shares for Class A common stock, Class I common stock, Class T common stock, and Class T2 common stock were 42.4 million, 4.3 million, 10.5 million, and 0, respectively.

Article Title: Summary and Analysis of Key Points from Financial Report

Overview of Company’s Financial Performance

The company had strong financial performance in the first quarter of 2024. Total rental revenue increased 2.0% to $50.6 million compared to the first quarter of 2023. Net income also increased to $15.0 million.

The company has a high occupancy rate of 99.2% across its portfolio of 136 properties. It acquired 6 new properties in the quarter while selling one property.

  • Same store rental revenue increased 3.3% due to annual rent increases indexed to CPI, accelerated rent from lease terminations, and increased rent collection from tenants with previous payment issues.
  • Non-same store rental revenue decreased 14.6% primarily due to properties sold, offset by lease termination income from other properties.
  • Net income increased 5.6% to $15.0 million.

Strengths

  • High occupancy rate of 99.2%
  • Acquired 6 new properties in the quarter
  • Increased rental rates through annual escalations and lease modifications
  • Strong rent collection and cash flows from operations

Weaknesses

  • Exposure to potential tenant bankruptcies, as seen previously with GenesisCare
  • Reliance on debt/leverage with $525 million drawn on credit facilities
  • High payout ratio could limit cash available for acquisitions if cash flows decline

Outlook

The company intends to list publicly in 2024 which could provide additional liquidity for acquisitions and operations. It has an available borrowing capacity of $500 million for additional investments.

With rising interest rates, the company has effectively fixed borrowing costs to limit exposure. It also continues to acquire additional properties and modify leases to increase rental revenue.

Financial Tables

Total Rental Revenue Q1 2024 Q1 2023 Change
$50.6 million $49.6 million +2.0%
Net Income Q1 2024 Q1 2023 Change
$15.0 million $14.2 million +5.6%

Debt Profile

Unsecured Credit Facility Drawn Interest Rate
$525 million Fixed 3.3%