Sila Realty Trust, Inc. (SILA) AI Stock Analysis

• Market Cap: $1.42B
• Dividend Yield: 3%
• Average Volume (3M): 447.73K
• Price to Earnings (P/E): 34.1
• Beta (1Y): 0.44
• Revenue Growth: -0.10%
• EPS Growth: 78.83%
• Country: US
• Employees: 49
• Sector: General
• Sector Strength: N/A
• Industry: REIT - Healthcare Facilities
• EPS (TTM): 0.75
• Shares Outstanding: 55,470,844
• 10 Day Avg. Volume: 508,956
• 30 Day Avg. Volume: 447,731
• PEG Ratio: 0.43
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.67
• Price to Cash Flow (P/CF): 12.30
• P/FCF Ratio: 12.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.00
• Price Target Upside: 4.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Sila Realty Trust, Inc. is performing strongly with positive momentum and strategic financial management. The stable financial structure and improved profit margins are significant strengths. However, the high P/E ratio raises valuation concerns, which are somewhat mitigated by a solid dividend yield. Overall sentiment remains positive, supported by strategic advancements and a healthy outlook.

Positive Factors

Acquisition Strategy

Management suggested mid-6% to high-7% acquisition cap rates, which could provide an attractive spread over the cost of capital.

Growth Potential

SILA is considered undervalued due to its low financial leverage, competitive projected earnings growth, and well-covered dividend yield.

Stock Valuation

SILA Realty Trust has a strong balance sheet and its discounted stock valuation offers investors an attractive risk-adjusted return.

Negative Factors

Interest Rate Impact

A 1.6% year-over-year normalized FFOps decline is implied in 2024, followed by a 5.3% decrease in 2025 due to an interest rate swap expiration.

Portfolio Concentration

SILA has relatively high portfolio concentration, with significant exposure to a few tenants and a large portion of revenue from Texas.

Tenant Issues

Healthcare REITs have faced greater-than-expected tenant issues despite a healthy US economy, which poses a risk to Sila Realty Trust.

Sila Realty Trust, Inc. Business Overview & Revenue Model

Company Description

Sila Realty Trust, Inc. (SILA) is a real estate investment trust (REIT) specializing in the acquisition and management of high-quality healthcare and technology-related properties. The company's portfolio includes properties such as hospitals, medical office buildings, data centers, and life science facilities, catering to the growing demand in these sectors. SILA focuses on investing in properties that provide stable and attractive returns for its investors.

How the Company Makes Money

Sila Realty Trust, Inc. generates revenue primarily through the leasing of its real estate properties to tenants in the healthcare and technology sectors. The company earns rental income from long-term leases, providing a steady and predictable cash flow. Additionally, SILA may engage in the strategic acquisition and disposition of properties to enhance its portfolio and maximize returns for shareholders. Key partnerships with healthcare providers and technology firms can also contribute to SILA's revenue by ensuring high occupancy rates and reliable lease agreements.

Sila Realty Trust, Inc. Financial Statement Overview

Summary

Sila Realty Trust, Inc. presents a stable financial profile with strong equity and cash flow positions. While revenue has slightly declined, profit margins have improved with effective cost management. The company maintains a manageable debt level, supporting its financial stability. Continuous monitoring of revenue growth and investment strategies will be crucial for sustained performance.

Income Statement

Sila Realty Trust, Inc. has shown moderate revenue stability with a slight decline in total revenue in the recent year. The gross profit margin improved significantly from the previous year, indicating better cost management. However, the absence of EBIT in the latest year affects profitability metrics negatively. The net profit margin improved, showcasing better net income management.

Balance Sheet

The company has a strong equity position with a high equity ratio, indicating financial stability. A moderate debt-to-equity ratio suggests manageable leverage. The return on equity is decent, reflecting efficient use of shareholder capital. Overall, the balance sheet portrays a stable financial structure with room for growth.

Cash Flow

Operating cash flow remains strong, with a slight increase over prior years. The free cash flow growth is positive, indicating robust cash generation capabilities. The free cash flow to net income ratio suggests efficient conversion of income to cash. Overall, the cash flows reflect a healthy liquidity position, although the high investing outflows might require attention.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
186.86M	189.06M	179.99M	172.84M	165.78M
	Gross Profit
163.72M	94.58M	84.84M	89.87M	68.14M
	EBIT
0.00	71.81M	77.20M	70.26M	69.85M
	EBITDA
139.80M	144.97M	140.75M	119.76M	156.44M
	Net Income Common Stockholders
42.66M	24.04M	-7.98M	-3.17M	2.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.84M	202.02M	12.92M	32.36M	53.17M
	Total Assets
2.01B	2.10B	2.22B	500.14M	3.21B
	Total Debt
563.41M	564.31M	3.87M	27.41M	963.74M
	Net Debt
523.57M	362.29M	-9.05M	-4.95M	910.57M
	Total Liabilities
603.89M	605.14M	2.26M	2.24M	2.22M
	Stockholders Equity
1.40B	1.49B	2.22B	2.18B	3.21B
Cash Flow		Free Cash Flow
129.86M	125.75M	113.23M	111.66M	80.90M
	Operating Cash Flow
132.85M	128.92M	121.67M	136.94M	109.70M
	Investing Cash Flow
-149.69M	197.31M	-142.81M	1.23B	-41.42M
	Financing Cash Flow
-145.50M	-137.13M	1.34M	-1.40B	-83.74M

Sila Realty Trust, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 26.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SILA, the sentiment is Neutral. The current price of 26.67 is above the 20-day moving average (MA) of 26.05, above the 50-day MA of 25.42, and above the 200-day MA of 24.16, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 48.41 is Neutral, neither overbought nor oversold. The STOCH value of 74.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SILA.

Sila Realty Trust, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SILA	74 Outperform	$1.42B	34.07	2.86%	3.00%	-0.10%	78.83%
LTC	74 Outperform	$1.56B	16.68	9.81%	6.38%	6.54%	-4.13%
CHCT	63 Neutral	$452.01M	―	-1.21%	11.59%	2.61%	-221.50%
GMRE	57 Neutral	$540.92M	608.94	1.19%	11.23%	-0.43%	-94.73%
Sector *	55 Neutral	$3.80B	-11.38	-15.29%	5.24%	19.55%	-44.95%
DHC	54 Neutral	$542.78M	―	-17.24%	1.78%	6.04%	-25.79%
MPW	54 Neutral	$3.27B	―	-38.69%	7.16%	14.19%	-331.18%

Sila Realty Trust, Inc. Corporate Events

Sila Realty Trust Monitors Tenant’s Bankruptcy Situation

On March 9, 2025, Landmark Holdings of Florida, LLC, which operates six long-term acute care hospitals across Florida, Georgia, and Missouri, filed for Chapter 11 bankruptcy protection. This includes the Savannah Healthcare Facility in Georgia, the only property owned by Sila Realty Trust, Inc. where Landmark is the tenant. Landmark’s financial struggles stem from a $30 million loan taken in December 2020 to sustain operations during the COVID-19 pandemic. The loan required a significant principal payment in December 2024, which Landmark is unable to meet, leading to the bankruptcy filing. Sila Realty Trust, Inc. is monitoring the situation closely, having consulted legal counsel, as the Savannah Healthcare Facility contributes minimally to its portfolio’s annualized rent.

Sila Realty Trust Highlights Strategic Focus in Presentation

On March 3, 2025, Sila Realty Trust, Inc. released an investor presentation for use at various conferences and meetings. The presentation, available on the company’s website, outlines the company’s strategic focus on healthcare real estate and its strong financial positioning. The release highlights Sila’s commitment to investing in high-quality healthcare facilities and its geographic focus on ‘Smile States,’ which are expected to drive future growth. The presentation does not constitute a filing under securities laws and is not intended to provide new material investor information.

Sila Realty Trust Secures $600 Million Credit Facility

On February 19, 2025, Sila Realty Trust, Inc. announced the closing of a new $600 million revolving credit facility, replacing its previous $500 million line. This new facility, with an initial term extending to February 2029, provides Sila with enhanced liquidity to support its growth objectives and demonstrates strong lender confidence in the company’s financial health and strategic direction. The arrangement includes an accordion feature allowing the facility to expand up to $1.5 billion, highlighting Sila’s commitment to long-term shareholder value.