Sila Realty Trust, Inc. (NYSE: SILA)

Sector: Real Estate Industry: REIT - Healthcare Facilities CIK: 0001567925
Market Cap 1.48 Bn
P/B 0.92
P/E 3.68
P/S 8.46
ROIC (Qtr) 3.31
Div Yield % 1.53
Rev 1y % (Qtr) 8.09
Total Debt (Qtr) 715.02 Mn
Debt/Equity (Qtr) 0.53
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About

Sila Realty Trust, Inc. (SILA), a Maryland corporation, operates in the healthcare real estate industry, having elected to be taxed as a real estate investment trust (REIT) under the Internal Revenue Code of 1986. The company's primary business involves investing in high-quality healthcare assets across the continuum of care, generating revenue through the ownership and operation of these properties, which are leased to tenants. Sila Realty Trust's main business activities revolve around the acquisition, management, and leasing of healthcare properties....

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Investment thesis

Bull case

  • Operating cash flow of 121.68M provides strong 20.77x coverage of stock compensation 5.86M, indicating sustainable incentive practices.
  • Strong tangible asset base of 1.97B provides 2.75x coverage of total debt 715.02M, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 121.68M provides 5.44x coverage of SG&A expenses 22.38M, showing efficient operational cost management.
  • Strong tangible asset base of 1.97B provides 14.02x coverage of intangibles 140.22M, indicating robust asset quality.

Bear case

  • Operating cash flow of 121.68M barely covers its investment activities of (168.74M), with a coverage ratio of -0.72, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 121.68M provides thin coverage of dividend payments of (88.89M) with a -1.37 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of (30.22M) provides weak coverage of capital expenditures of 151.90M, with a -0.20 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 68.11M show weak coverage of depreciation charges of 73.08M, with a 0.93 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (30.22M) represents just -0.21x of debt issuance 145.22M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the REIT - Healthcare Facilities
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 WELL Welltower Inc. 143.17 Bn 152.82 13.21 21.38 Bn
2 VTR Ventas, Inc. 38.32 Bn 152.44 6.57 13.22 Bn
3 OHI Omega Healthcare Investors Inc 9.79 Bn 37.42 11.00 4.26 Bn
4 DOC Healthpeak Properties, Inc. 9.29 Bn 18.52 5.20 10.14 Bn
5 CTRE CareTrust REIT, Inc. 8.40 Bn 26.19 17.62 0.89 Bn
6 AHR American Healthcare REIT, Inc. 6.95 Bn -212.00 3.23 1.70 Bn
7 HR Healthcare Realty Trust Inc 6.42 Bn -26.10 5.44 4.15 Bn
8 NHI National Health Investors Inc 2.58 Bn 24.34 21.93 1.11 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.98 1.24
EV to Cash from Ops. EV/CFO 16.37 24.29
EV to Debt EV to Debt 2.90 3.18
EV to EBIT EV/EBIT 4.73 14.77
EV to EBITDA EV/EBITDA 17.03 19.20
EV to Free Cash Flow [EV/FCF] EV/FCF 1.51 1.78
EV to Market Cap EV to Market Cap 1.40 1.96
EV to Revenue EV/Rev 11.86 11.43
Price to Book Value [P/B] P/B 0.92 2.64
Price to Earnings [P/E] P/E 3.68 29.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.44 -1.90
Dividend Payout Ratio % Div Payout % (Qtr) 206.60 299.46
Dividend per Basic Share Div per Share (Qtr) 1.33 1.85
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -241.92 49.00
Interest Coverage Int. cover (Qtr) 2.36 2.08
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -241.56 -326.40
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -3.14 31.24
Dividend Growth (1y) % Div 1y % (Qtr) 100.15 12.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 52.46 35.66
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 20.59 12.40
EBIT Growth (1y) % EBIT 1y % (Qtr) 52.46 25.81
EBT Growth (1y) % EBT 1y % (Qtr) 73.94 71.96
EPS Growth (1y) % EPS 1y % (Qtr) 82.05 29.36
FCF Growth (1y) % FCF 1y % (Qtr) -112.82 -181.35
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.49 13.29
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.09 0.17
Cash Payout Ratio Cash Payout (Qtr) 0.32 0.07
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 0.53 4.36
Interest Cover Ratio Int Coverage (Qtr) 2.36 2.08
Times Interest Earned Times Interest Earned (Qtr) 2.36 2.08
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 73.00 55.93
EBIT Margin % EBIT Margin % (Qtr) 35.22 28.99
EBT Margin % EBT Margin % (Qtr) 20.28 13.55
Gross Margin % Gross Margin % (Qtr) 87.50 71.26
Net Profit Margin % Net Margin % (Qtr) 20.30 13.18