Sila Realty Trust Posts Strong Q2 Results

Strategic acquisitions and solid leasing activity drive growth despite headwinds from tenant bankruptcies.

August 08, 2025

Solid Performance Anchored by Core Metrics

Sila Realty Trust is continuing to execute on its strategy—and the Q2 2025 results reflect that. The company saw steady performance across its core financial metrics and moved decisively to grow its healthcare-focused real estate portfolio.

For the quarter ending June 30, Sila reported net income of $8.6 million, or $0.15 per diluted share. Cash net operating income (Cash NOI) rose to $41.9 million, up from $39.9 million in the same period last year. These gains were largely driven by recent acquisitions and lease escalations. Even as certain properties faced pressure from tenant bankruptcies, such as Steward Healthcare, Sila offset the impact with growth from other assets.

Adjusted funds from operations (AFFO) held steady year over year, reaching $30.0 million, or $0.54 per diluted share. While the company’s first-half AFFO of $59.4 million showed a decrease compared to the $69.1 million reported a year ago, that decline was expected given the one-time fee income that supported 2024 results.

Growth Through Strategic Acquisitions

Sila also took action to strengthen and expand its portfolio. The company acquired:

• An inpatient rehabilitation facility in Dover, Delaware for $24.1 million


• Two outpatient medical buildings in Southlake, Texas for $16.2 million

These new assets add over 42,000 square feet of rentable space under long-term, net lease agreements. As of June 30, Sila’s portfolio included 136 properties totaling 5.2 million square feet, with 99.2% of space leased and an average remaining lease term of 9.5 years.

Capital Allocation and Liquidity

In parallel with its investment activity, Sila is also deploying capital to return value to shareholders. On August 4, the board approved a new $75 million share repurchase program, allowing for flexibility across multiple repurchase methods over a three-year period. This replaces the company’s prior $25 million authorization from 2024.

On the balance sheet side, Sila ended the quarter with $568.8 million in liquidity —including $24.8 million in cash and $544.0 million available through its credit facility. Roughly 90% of its $581.0 million in outstanding debt is hedged through interest rate swaps, keeping the weighted average cost of debt at 4.7%. Net debt to enterprise value stood at 29.8%.

Dividend and Outlook

The board declared a quarterly dividend of $0.40 per share, payable on September 4. The payout represents a 74% AFFO payout ratio and an annualized yield of $1.60.

Sila is allocating capital with discipline and moving quickly to secure long-term cash flows. Between strong leasing, new healthcare acquisitions, and a refreshed buyback program, the company is setting itself up for continued growth in the back half of the year.