Sila Realty Trust Praised For 'Lowest Financial Leverage' And Diversified Portfolio

Shares of Sila Realty Trust Inc SILA gained on Monday following a positive analyst outlook, which highlighted optimism about the stock’s potential.

The stock, which was listed on the NYSE on June 13, is likely to provide attractive risk-adjusted returns over the next 12 month, according to Truist Securities.

Analyst Michael Lewis initiated coverage of Sila Realty Trust with a Buy rating and price target of $29.

The Sila Realty Trust Thesis: The company has a high-quality portfolio, good external growth profile, and strong balance sheet, Lewis said in the initiation note.

Check out other analyst stock ratings.

"SILA earned 37% of 2Q24 annualized base rent (ABR) from medical outpatient buildings, 34% from inpatient rehabilitation facilities and 29% from surgical & specialty facilities, providing a diversified healthcare real estate portfolio within a triple-net lease structure," the analyst wrote. "The portfolio offers very high occupancy, long lease term, strong rent coverage, and most tenants with rated credit," he added.

"SILA has the lowest financial leverage in our coverage universe, an improving cost of capital, and a relatively small size, which we think provides an attractive external growth opportunity," Lewis stated.

SILA Price Action: Shares of Sila Realty Trust were up 0.6% to $25.30 at the time of publication on Monday.

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