Sila Realty Trust, Inc.SILA
Sila Realty Trust, Inc. Leases Disclosure
Leases
Lessor
The Company’s real estate properties are leased to tenants under operating leases with varying terms. Typically, the leases have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate properties leased to tenants.
The following table summarizes the Company’s rental revenue from operating leases for the years ended December 31, 2025, 2024 and 2023 (amounts in thousands):
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
Rental income | $ | 181,024 | $ | 171,791 | $ | 176,323 | ||||||||||||||
Variable lease income | 15,280 | 15,065 | 12,742 | |||||||||||||||||
Total rental revenue | $ | 196,304 | $ | 186,856 | $ | 189,065 | ||||||||||||||
Future rent to be received from the Company’s investments in real estate assets under the terms of non-cancellable operating leases in effect as of December 31, 2025, for each of the next five years ending December 31, and thereafter, are as follows (amounts in thousands):
December 31, 2025(1) | ||||||||
| 2026 | $ | 176,789 | ||||||
| 2027 | 176,848 | |||||||
| 2028 | 173,905 | |||||||
| 2029 | 170,358 | |||||||
| 2030 | 161,943 | |||||||
| Thereafter | 1,186,641 | |||||||
| Total | $ | 2,046,484 | ||||||
(1)The table includes payments from a tenant who is on the cash basis of accounting for revenue recognition purposes that has continued to make rental payments as of December 31, 2025.
Lessee
The Company is subject to various non-cancellable operating lease agreements on which certain of its properties reside (ground leases) and for its corporate office. Additionally, the Company has one non-cancellable lease agreement that is classified as a finance lease related to a ground lease of a healthcare property.
The Company’s operating leases and finance lease do not provide implicit interest rates. In order to calculate the present value of the remaining operating and finance lease payments, the Company used incremental borrowing rates, or IBRs, adjusted for a number of factors. The determination of an appropriate IBR involves multiple inputs and judgments. The Company determined its IBRs considering the general economic environment, term of the underlying leases, and various financing and asset specific adjustments to ensure the IBRs are appropriate for the intended use of the underlying operating leases and finance lease.
The effects of the Company’s operating leases are recorded in right-of-use assets - operating leases and operating lease liabilities on the consolidated balance sheets. The effects of the Company’s finance lease are recorded in right-of-use assets - finance lease and finance lease liabilities on the consolidated balance sheets.
The future rent payments under non-cancellable leases in effect as of December 31, 2025, for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands):
Operating | Finance | |||||||||||||
| 2026 | $ | 2,803 | $ | 9 | ||||||||||
| 2027 | 2,852 | 9 | ||||||||||||
| 2028 | 2,868 | 9 | ||||||||||||
| 2029 | 2,603 | 9 | ||||||||||||
| 2030 | 2,129 | 9 | ||||||||||||
| Thereafter | 101,384 | 58 | ||||||||||||
| Total undiscounted rental payments | 114,639 | 103 | ||||||||||||
| Less imputed interest | (73,626) | (26) | ||||||||||||
| Total lease liabilities | $ | 41,013 | $ | 77 | ||||||||||
The weighted average IBR and weighted average remaining lease term as of December 31, 2025 and December 31, 2024 for the Company’s operating leases are as follows:
| December 31, 2025 | December 31, 2024 | ||||||||||
| Weighted average IBR | 5.5 | % | 5.5 | % | |||||||
| Weighted average remaining lease term | 34.2 years | 35.2 years | |||||||||
The IBR and remaining lease term as of December 31, 2025 and December 31, 2024 for the Company's finance lease is as follows:
| December 31, 2025 | December 31, 2024 | ||||||||||
IBR | 5.8 | % | — | % | |||||||
Remaining lease term | 10.5 years | — | |||||||||
The following table provides details of the Company's total lease costs for the years ended December 31, 2025, 2024 and 2023 (amounts in thousands):
| Year Ended December 31, | ||||||||||||||||||||||||||
Location in Consolidated Statements of Comprehensive Income | 2025 | 2024 | 2023 | |||||||||||||||||||||||
Operating lease costs: | ||||||||||||||||||||||||||
Ground lease costs(1) | Rental expenses | $ | 2,755 | $ | 2,742 | $ | 2,727 | |||||||||||||||||||
| Corporate operating lease costs | General and administrative expenses | 714 | 749 | 735 | ||||||||||||||||||||||
Finance lease costs: | ||||||||||||||||||||||||||
| Interest on lease liability | Interest expense | 3 | — | — | ||||||||||||||||||||||
| Supplemental disclosure of cash flows information: | ||||||||||||||||||||||||||
Operating cash outflows for operating leases(1)(2) | 838 | 830 | 732 | |||||||||||||||||||||||
| Right-of-use assets obtained in exchange for new operating lease liabilities | — | 814 | — | |||||||||||||||||||||||
| Right-of-use assets obtained in exchange for new finance lease liabilities | $ | 74 | $ | — | $ | — | ||||||||||||||||||||
(1)The Company receives reimbursements from tenants for certain operating ground leases, which are recorded as rental revenue in the accompanying consolidated statements of comprehensive income.
(2)Amounts are net of reimbursements the Company receives from tenants for certain operating ground leases.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Mar 6, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 29, 2022 | |
| 2020 | Mar 24, 2021 | |
| 2019 | Mar 27, 2020 | |
| 2018 | Mar 22, 2019 | |
| 2017 | Mar 21, 2018 | |
| 2016 | Mar 16, 2017 | |
| 2015 | Mar 28, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.