Sila Realty Trust, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Sila Realty Trust, Inc. has filed its 2023 annual report detailing its financial performance and business operations.</b>

AI Summary

Sila Realty Trust, Inc. (SILA) filed a Annual Report (10-K) with the SEC on March 6, 2024. Sila Realty Trust, Inc. (formerly Carter Validus Mission Critical REIT II, Inc.) filed its annual report for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is located at 1001 Water Street, Suite 800, Tampa, FL 33602. Sila Realty Trust, Inc. is classified under Real Estate Investment Trusts (SIC code 6798). The company was incorporated in Maryland.

Why It Matters

For investors and stakeholders tracking Sila Realty Trust, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Sila Realty Trust's financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors assessing the company's stability and future prospects. The detailed financial statements and disclosures within the report are essential for understanding the company's asset base, liabilities, and equity, as well as its revenue streams and profitability trends.

Risk Assessment

Risk Level: low — Sila Realty Trust, Inc. shows low risk based on this filing. The risk is assessed as low because the filing is a standard annual report (10-K) and does not contain immediate, significant negative financial events or disclosures based on the provided header information.

Analyst Insight

Investors should review the full 10-K filing for detailed financial statements, management's discussion and analysis, and risk factors to form a comprehensive investment thesis.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-06 — Filing Date (Date of submission)
• 2023-01-01 — Period Start Date (Fiscal year)

Key Players & Entities

• Sila Realty Trust, Inc. (company) — Filer name
• Carter Validus Mission Critical REIT II, Inc. (company) — Former company name
• 1001 Water Street, Suite 800, Tampa, FL 33602 (company) — Business address
• 6798 (regulator) — Standard Industrial Classification

FAQ

Industry Context

Sila Realty Trust, Inc. operates as a Real Estate Investment Trust (REIT), focusing on investments in real estate and real estate-related assets.

Regulatory Implications

As a publicly traded company, Sila Realty Trust is subject to the reporting requirements of the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review the detailed financial statements within the 10-K for revenue, net income, and asset/liability balances.
2. Analyze the Management's Discussion and Analysis (MD&A) section for insights into operational performance and strategic initiatives.
3. Examine the Risk Factors section to understand potential challenges and uncertainties facing the company.

Key Dates

• 2024-03-06: 10-K Filing — Submission of the annual report for the fiscal year ended December 31, 2023.

Year-Over-Year Comparison

This is the initial filing data extracted for the 2023 10-K; comparative data from the previous filing (2022) is not yet available in this snippet.

Key Financial Figures

• $0.01 — g) of the Act: Common stock, par value $0.01 per share Indicate by check mark if th
• $8.13 — espectively, assuming a market value of $8.13 per share of our Class A common stock,
• $1,320,000,000 — operties for an aggregate sale price of $1,320,000,000, and generated net proceeds of approxim
• $1,295,367,000 — generated net proceeds of approximately $1,295,367,000. Concurrently, the Board declared a spe
• $1.75 — declared a special cash distribution of $1.75 per share of Class A, Class I, Class T
• $392,685,000 — n the aggregate amount of approximately $392,685,000. The decision of the Board to sell the
• $9.95 — Share NAV May 31, 2021 July 26, 2021 $9.95 (1) May 31, 2021 July 26, 2021 $8.20
• $8.20 — $9.95 (1) May 31, 2021 July 26, 2021 $8.20 (1) June 30, 2022 August 25, 2022 $8.
• $8.22 M — .20 (1) June 30, 2022 August 25, 2022 $8.22 March 31, 2023 May 11, 2023 $8.13 Octob
• $7.48 — 13 October 31, 2023 December 18, 2023 $7.48 (1) On July 22, 2021, we announced th
• $69,822,000 — gregate purchase price of approximately $69,822,000. 2 Table of Contents During the ye
• $271,107,000 — cilities for an aggregate sale price of $271,107,000 and generated net proceeds of $270,306,
• $270,306,000 — 1,107,000 and generated net proceeds of $270,306,000. Investment Objectives and Policies O

Filing Documents

• cik0001567925-20231231.htm (10-K) — 2909KB
• ex231202310-k.htm (EX-23.1) — 3KB
• ex311q4202310-k.htm (EX-31.1) — 10KB
• ex312q4202310-k.htm (EX-31.2) — 10KB
• ex321q4202310-k.htm (EX-32.1) — 7KB
• ex322q4202310-k.htm (EX-32.2) — 7KB
• ex991202310-k.htm (EX-99.1) — 4KB
• cik0001567925-20231231_g1.jpg (GRAPHIC) — 646KB
• 0001567925-24-000009.txt (&nbsp;) — 14892KB
• cik0001567925-20231231.xsd (EX-101.SCH) — 96KB
• cik0001567925-20231231_cal.xml (EX-101.CAL) — 98KB
• cik0001567925-20231231_def.xml (EX-101.DEF) — 389KB
• cik0001567925-20231231_lab.xml (EX-101.LAB) — 955KB
• cik0001567925-20231231_pre.xml (EX-101.PRE) — 658KB
• cik0001567925-20231231_htm.xml (XML) — 2309KB

Risk Factors

Item 1A. Risk Factors 7

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 18 Item 1C. C ybersecurity 19

Properties

Item 2. Properties 20

Legal Proceedings

Item 3. Legal Proceedings 24

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 24 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 24

[Reserved]

Item 6. [Reserved] 28

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 29

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 38

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 39

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 39

Controls and Procedures

Item 9A. Controls and Procedures 39

Other Information

Item 9B. Other Information 39

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 40 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 41

Executive Compensation

Item 11. Executive Compensation 41

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 41

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 41

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 41 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 42

Form 10-K Summary

Item 16. Form 10-K Summary

SIGNATURES

SIGNATURES CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain statements contained in this Annual Report on Form 10-K of Sila Realty Trust, Inc., other than historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. We intend for all such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Securities Act and the Exchange Act, as applicable by law. Such statements include, in particular, statements about our plans, strategies, goals, objectives, initiatives, financial position, prospects, competition, future transactions, acquisitions and partnerships, availability of funds, payment of distributions, share repurchases, capital and other significant expenditures, and liquidity, and are subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "would," "could," "should," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this Annual Report on Form 10-K is filed with the U.S. Securities and Exchange Commission, or SEC. We make no representation or warranty (express or implied) about the accuracy of any such forward-looking statements contained in this Annual Report on Form 10-K, and we do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future even

Business

Item 1. Business. General Description of Business and Operations Sila Realty Trust, Inc. is a Maryland corporation that was formed on January 11, 2013, headquartered in Tampa, Florida, that has elected, and currently qualifies, to be taxed as a real estate investment trust, or a REIT, under the Internal Revenue Code of 1986, as amended, or the Code, for federal income tax purposes. Substantially all of Sila Realty Trust, Inc.'s business is conducted through Sila Realty Operating Partnership, LP, a Delaware limited partnership, or the Operating Partnership. Sila Realty Trust, Inc. is the sole general partner of the Operating Partnership and directly and indirectly owns 100% of the Operating Partnership. Except as the context otherwise requires, "we," "our," "us," and the "Company" refer to Sila Realty Trust, Inc., our Operating Partnership and all wholly-owned subsidiaries. We are an internally managed company primarily focused on investing in high quality healthcare assets across the continuum of care, which we believe typically generate predictable, durable and growing income streams. We may also make other real estate-related investments, which may include equity or debt interests in other real estate entities. We formerly invested in data center properties. During the second quarter of 2021, our board of directors, or the Board, made a determination to sell our data center properties. On May 19, 2021, we and certain of our wholly-owned subsidiaries entered into a purchase and sale agreement, or the PSA, for the sale of up to 29 data center properties owned by us, which constituted the entirety of our data center segment, or the Data Center Sale. On July 22, 2021, we completed the sale of all 29 of the data center properties for an aggregate sale price of $1,320,000,000, and generated net proceeds of approximately $1,295,367,000. Concurrently, the Board declared a special cash distribution of $1.75 per share of Class A, Class I, Class T and Class T2 shares of

View Full Filing

View this 10-K filing on SEC EDGAR