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    Nate Crossett • BNP Paribas

    Nate Crossett's questions to Sila Realty Trust Inc (SILA) leadership

    Nate Crossett's questions to Sila Realty Trust Inc (SILA) leadership • Q2 2025

    Question

    Nate Crossett of BNP Paribas inquired about the asset types and pricing for the $70 million of properties under LOI, the rationale for the updated share buyback program, and any tenants on the watchlist.

    Answer

    President and CEO Michael Seton clarified the LOI is for over $70 million in properties consistent with their current portfolio, with cap rates in the upper end of their low-6s to mid-7s range. He explained the new three-year, $75 million share repurchase program is a tool to capture value when a significant dislocation exists between the share price and private market values, though the company's bias remains toward growth via acquisitions. Regarding the watchlist, Seton noted that Landmark Hospitals is in bankruptcy but remains current on rent, and he anticipates a positive resolution within approximately 60 days.

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    Nate Crossett's questions to Sila Realty Trust Inc (SILA) leadership • Q2 2025

    Question

    Nate Crossett of BNP Paribas inquired about the specifics of the $70 million in properties under LOI, including asset types and pricing. He also asked about the acquisition outlook for the second half of the year, the rationale for the new three-year share repurchase program, and if there were any tenant issues on the company's watchlist.

    Answer

    President and CEO Michael Seton explained that the properties under LOI are consistent with Sila's current portfolio, with cap rates in the upper end of their previously guided 6% to mid-7% range and long lease durations. Regarding the buyback program, he noted it's a 'tool in the toolbox' used when there's a significant dislocation between the share price and private market values, but the company's bias remains towards growth through acquisitions. For the watchlist, he mentioned Landmark Hospitals is in bankruptcy but current on rent, with an expected emergence in about 60 days.

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