Sila Realty Trust Reports 9.1% Revenue Growth and Announces Merger Agreement

Sila Realty Trust, Inc. reported a notable increase in financial performance for the first quarter of 2026, with total revenues reaching $52.7 million, a 9.1% increase from $48.3 million in the same period of 2025. The growth was primarily driven by a rise in rental revenue, which amounted to $52.1 million, up 7.9% from $48.3 million year-over-year. The company also recorded a net income attributable to common stockholders of $12.4 million, or $0.22 per diluted share, compared to $7.9 million, or $0.14 per diluted share, in the prior year, reflecting a significant improvement in profitability.

In terms of operational changes, Sila Realty Trust engaged in strategic acquisitions and dispositions during the quarter. The company acquired one healthcare facility for $43.3 million and disposed of four properties, generating net proceeds of approximately $24.8 million. The gains from these dispositions contributed positively to the overall financial results, with a total gain on real estate sales of $2.5 million recognized in the quarter. Additionally, the company reported a decrease in operating expenses, which totaled $31.9 million, down from $33.3 million in the previous year, largely due to lower general and administrative costs and the absence of impairment losses recorded in the prior year.

Sila Realty Trust's operational metrics showed a strong occupancy rate of 98.7% across its portfolio of 137 properties, an increase from 96.0% a year earlier. The company’s focus on high-quality net lease healthcare facilities continues to yield stable income streams, with a significant portion of rental revenue derived from long-term leases. The company also reported an increase in its cash and cash equivalents, totaling $30.8 million as of March 31, 2026, compared to $32.3 million at the end of 2025.

Looking ahead, Sila Realty Trust announced a definitive merger agreement with affiliates of Blue Owl Real Estate Capital LLC, which will acquire all outstanding shares of the company for $30.38 per share, valuing the transaction at approximately $2.4 billion. This merger, unanimously approved by the Board of Directors, is expected to close in the second or third quarter of 2026, subject to stockholder approval and customary closing conditions. The company plans to continue paying regular dividends during the merger process, with a quarterly cash dividend of $0.40 per share authorized for payment on June 4, 2026. The merger is anticipated to transition Sila Realty Trust into a private entity, with shares no longer trading on the New York Stock Exchange post-transaction.