Sila Realty Trust, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a decrease in rental revenue and net income compared to the same periods in 2023. For the three months ended September 30, 2024, total rental revenue was $46.1 million, down 5.0% from $48.5 million in Q3 2023. For the nine months, rental revenue decreased by 2.0% to $140.3 million from $143.2 million in the prior year. The decline in rental revenue was attributed to lease terminations and lower rates on amended leases, despite some offsetting increases from cash basis rent recognition and CPI-indexed rent escalations.
Net income attributable to common stockholders for the third quarter was $11.9 million, a decrease from $15.0 million in Q3 2023. For the nine-month period, net income fell to $31.5 million from $33.0 million in the previous year. The company’s earnings per share also declined, with basic earnings per share at $0.21 for Q3 2024 compared to $0.26 in Q3 2023.
Total operating expenses for the three months ended September 30, 2024, increased to $29.3 million from $27.9 million in the same quarter of 2023, driven by higher rental expenses and general administrative costs. The company reported a significant rise in rental expenses, which totaled $5.8 million for Q3 2024, compared to $5.0 million in Q3 2023.
Strategically, Sila Realty Trust made substantial investments in real estate, purchasing eight properties for $164.0 million during the nine months ended September 30, 2024, compared to $69.8 million for two properties in the same period of 2023. The company also sold the Fort Myers Healthcare Facilities for $15.5 million, resulting in a loss on disposition of $792,000.
As of September 30, 2024, total assets decreased to $2.0 billion from $2.1 billion at the end of 2023, while total stockholders’ equity also declined to $1.4 billion from $1.5 billion. Cash and cash equivalents significantly dropped to $28.6 million from $202.0 million at the end of 2023, reflecting increased cash outflows for acquisitions and distributions.
The company continues to navigate challenges posed by economic conditions, including rising interest rates and inflation, which have impacted its operating results and tenant payments. Sila Realty Trust remains committed to maintaining its status as a Real Estate Investment Trust (REIT) and has implemented provisions in lease agreements to mitigate inflation impacts.
About Sila Realty Trust, Inc.
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