H
enry RiversMonday, Aug 4, 2025 6:40 am ET15min read
The healthcare real estate sector has long been a stable haven for investors, offering consistent cash flow and the ability to adapt to evolving healthcare delivery models. Sila Realty Trust, Inc. (NYSE: SILA) has solidified its position as a leader in this space through strategic acquisitions of triple-net leased medical outpatient buildings (MOBs) and inpatient rehabilitation facilities.
Sila's recent $16.15 million acquisition of two MOBs in Southlake, Texas, exemplifies its disciplined approach to capitalizing on the shift toward outpatient care. The properties benefit from operational synergies, serving overlapping physician groups and patient populations, reducing tenant risk and enhancing utilization. This trend is driven by cost efficiency and technological advancements, with outpatient procedures growing over 40% between 2010 and 2023.
Sila's focus on ASCs and MOBs aligns perfectly with this trajectory, providing predictable, inflation-linked income streams with minimal operational risk. The strength of Sila's portfolio lies in its tenant profiles, including GI Alliance, a subsidiary of Cardinal Health, and Baylor Scott & White Health, the largest not-for-profit healthcare system in Texas.
Sila's Dover, Delaware, acquisition—a $23.5 million inpatient rehabilitation facility—is fully leased to a joint venture between Bayhealth Medical Center and Post Acute Medical, LLC (PAM), both of which are investment-grade-rated. The property's regulatory protections create a near-monopoly, ensuring high occupancy and stable cash flows.
Sila's recent capital structure adjustments reinforce its ability to execute its acquisition strategy, with a $600 million unsecured facility maturing in 2029 and a net debt-to-EBITDAre ratio of 3.5x. The weighted average remaining lease term of 9.7 years provides a durable revenue base.
For income-focused investors, Sila offers a compelling combination of yield, growth, and risk mitigation, with a current dividend yield of approximately 3.8% (as of August 2025). However, the healthcare sector is not without risks, including regulatory changes that could impact tenant margins. Despite this, Sila's focus on necessity-driven assets and long-term institutional tenants provides a buffer against such shocks.
In conclusion, Sila Realty Trust's recent acquisitions are strategic bets on the future of healthcare, creating a portfolio that thrives in both bull and bear markets. For investors seeking durable, inflation-protected cash flows, Sila represents a rare combination of defensive qualities and growth potential.
