Robert Stevenson's questions to Sila Realty Trust (SILA) leadership • Q2 2025
Question
Robert Stevenson of Janney Montgomery Scott inquired about the cost and accounting treatment for the Stoughton facility demolition, the expected carrying costs post-demolition, and the potential future use of the site. He also asked about the intermediate-term financing strategy for new acquisitions and the board's rationale for the $25 million annual cap on share repurchases.
Answer
President and CEO Michael Seton stated the demolition cost is approximately $1.9 million. EVP and CFO Kay Neely added that this would be treated as a non-recurring expense and added back for FFO and AFFO, and that monthly carry costs are expected to decrease from ~$120,000 to ~$20,000-$25,000. Mr. Seton suggested the highest and best use for the Stoughton site is likely residential. Ms. Neely outlined the financing strategy as using the revolver for the short-to-medium term, with a potential for a longer-term private placement later. Finally, Mr. Seton explained the buyback cap allows for nimbleness while prioritizing the company's primary mission of growth.