Strong cash conversion is evidenced by 2026Q1 FFO of $32.3M, which significantly exceeds the $12.4M net income, confirming that core rental income remains the primary driver of liquidity.
| Cash from Operations | 124.49M | 119.14M | 132.85M | 128.92M | 121.67M | 136.94M | 112.84M | 80.11M | 74.21M | 51.83M | 24.97M |
| Operating CF Growth % | 19.34% | -10.31% | 3.04% | 5.96% | -11.15% | 21.36% | 40.86% | 7.95% | 43.19% | 107.56% | - |
| Operating CF / Revenue % | 61.65% | 60.32% | 71.1% | 68.19% | 67.6% | 79.23% | 68.06% | 79.15% | 41.85% | 41.43% | 44.25% |
| Net Income | 37.64M | 33.12M | 42.41M | 24.04M | -7.98M | 402.66M | 36.78M | 2.78M | 33.83M | 21.14M | 11.41M |
| Depreciation & Amortization | 78.56M | 76.92M | 75.93M | 75.03M | 77.68M | 80.92M | 105.48M | 74.1M | 53.98M | 41.13M | 19.21M |
| Stock-Based Compensation | 2.35M | 19K | 5.85M | 6.28M | 4.18M | 2.38M | 437K | 89K | 0 | 0 | 0 |
| Other Non-Cash Items | 620K | 8.82M | -1.29M | 24.49M | 47.05M | -348.27M | -24.07M | 6.03M | 87.07M | 66.59M | 30.68M |
| Working Capital Changes | 5.31M | 268K | 9.95M | -920K | 739K | -744K | -5.78M | -2.89M | 1.73M | -802K | 250K |
| Cash from Investing | -159.86M | -174.5M | -149.69M | 197.31M | -142.81M | 1.23B | -41.42M | -538.32M | -232.81M | -636.69M | -548.08M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -24.15M | -148.87M | 0 | 0 | 0 | 0 | -25M | 0 | -217.33M | -604.37M | -539.98M |
| Sale of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -128.01M | -17.34M | -146.7M | 200.48M | -134.37M | 1.25B | 12.38M | -525.48M | 100K | 146K | 153K |
| Cash from Financing | 35.69M | 47.8M | -145.5M | -137.13M | 1.34M | -1.4B | -83.74M | 458.91M | 152.38M | 613.7M | 542.29M |
| Dividends Paid | -66.3M | -88.79M | -81.37M | -66.52M | -65.31M | -465.85M | -76.52M | -49.49M | -40.3M | -28.99M | -17.66M |
| Common Dividends | -66.3M | -88.79M | -81.37M | -66.52M | -65.31M | -465.85M | -76.52M | -49.49M | -40.3M | -28.99M | -17.66M |
| Debt Issuance (Net) | 2M | 1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Share Repurchases | -7.49M | -8.63M | -61.49M | -12.37M | -9.22M | -9.53M | -29.49M | -23.66M | -43.23M | -17.16M | -3.11M |
| Other Financing | -9.52M | 0 | -61K | -240K | -196K | -31.57M | -3.82M | -10.5M | -17.35M | -35.64M | -34.76M |
| Net Change in Cash | 320K | -7.56M | -162.34M | 189.1M | -19.8M | -35.03M | -12.32M | 703K | -6.44M | 24.36M | 19.18M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 32.29M | 39.84M | 202.19M | 13.08M | 32.88M | 67.91M | 80.23M | 79.53M | 74.8M | 50.45M | 31.26M |
| Cash at End | 30.78M | 32.29M | 39.84M | 202.19M | 13.08M | 32.88M | 67.91M | 80.23M | 68.36M | 74.8M | 50.45M |
| Free Cash Flow | 116.79M | 110.86M | 129.86M | 125.75M | 113.23M | 111.54M | 84.04M | 67.27M | 58.63M | 19.32M | 16.72M |
| FCF Growth % | -0.42% | -14.63% | 3.27% | 11.05% | 1.52% | 32.72% | 24.93% | 14.74% | 203.52% | 15.55% | - |
| FCF / Revenue % | 57.83% | 56.12% | 69.5% | 66.51% | 62.91% | 64.53% | 50.69% | 66.46% | 33.06% | 15.44% | 29.62% |
Tenant credit migration risk
As reported in financial statements, SILA consistently generates FFO significantly higher than GAAP net income, with the 2026Q1 FFO of $32.3M dwarfing the $12.4M net income, illustrating how non-cash depreciation charges obscure the actual cash-generating capacity of the company's specialized healthcare real estate portfolio.
The persistent gap between GAAP net income and FFO highlights the necessity of focusing on cash-based metrics to evaluate performance. Investors should monitor this spread, as it suggests that reported net income is a poor proxy for the REIT's ability to fund dividends and capital expenditures.
Based on reported figures from 2025, SILA maintains a disciplined dividend payout policy, with the AFFO payout ratio consistently hovering between 71% and 87%, providing a meaningful buffer that suggests the current distribution is well-supported by recurring cash flows generated from the company's NNN lease structure.
The ability to retain a portion of AFFO after dividend payments provides the company with internal capital for property improvements or debt reduction. This coverage ratio appears healthy, though investors should watch for any compression in this margin if tenant rent coverage ratios begin to deteriorate.
According to recent SEC filings, SILA demonstrates a strong conversion of GAAP operating cash flow into FFO, with the REIT consistently producing FFO figures that align closely with operating cash flow, indicating that the company's earnings are driven by core rental income rather than accounting adjustments.
The high correlation between operating cash flow and FFO suggests that the company's revenue recognition is closely tied to actual cash receipts. This alignment reduces the risk of earnings quality issues often associated with aggressive straight-line rent accounting in the net-lease sector.
As indicated by historical data, SILA's recurring capital expenditures, including tenant improvements and leasing commissions, remain low relative to total cash flow, with quarterly outlays often falling below $2M, which supports the efficiency of the triple-net lease model in minimizing direct property-level capital burdens.
Low maintenance capex requirements are a hallmark of the NNN model, allowing a larger portion of rental income to flow through to AFFO. However, investors should monitor whether these levels remain sustainable or if aging facilities eventually necessitate a higher level of reinvestment to maintain occupancy.
Quick answers to the most common questions about buying SILA stock.
Sila Realty Trust, Inc. (SILA) generated $119.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sila Realty Trust, Inc. (SILA) generated $110.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Sila Realty Trust, Inc. (SILA) spent $8.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Sila Realty Trust, Inc. (SILA) returned $88.8M to shareholders via cash dividends and spent $8.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.