We came across a bullish thesis on Sila Realty Trust, Inc. on Jussi Askola, CFA’s YouTube Channel. In this article, we will summarize the bulls’ thesis on SILA. NNN REIT, Inc.’s share was trading at $23.94 as of January 13th. SILA’s trailing P/E was 33.72 according to Yahoo Finance.
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Sila Realty Trust (SILA), currently offering a 7% dividend yield, presents a compelling investment opportunity as it remains under the radar following its direct listing in 2024. Operating under a net lease model similar to NNN REIT, Sila focuses on healthcare properties, including medical office buildings, rehabilitation centers, and surgical facilities.
Its triple net leases, averaging 10 years in duration with annual 2% rent escalations, provide highly predictable and stable cash flows, while a strong rent coverage ratio of roughly 5.3x underscores tenant reliability. The healthcare concentration benefits from long-term demographic trends, particularly the aging population, which supports ongoing demand for medical facilities. Sila’s conservative balance sheet, with debt to EBITDA of about 3.6x, enables the company to continue strategic acquisitions while retaining roughly 25% of cash flow, and FFO per share is projected to grow 4–6% annually. Combined with its attractive dividend, this positions Sila for strong total return potential, which could be further amplified as interest rates decline and market yields compress.
Broader market conditions reinforce Sila’s opportunity. Fixed income has dominated investor attention in recent years due to unprecedented rate hikes, drawing trillions into money market funds and bonds. However, with the Federal Reserve already implementing multiple rate cuts in 2024 and 2025, and expectations for further reductions through 2026, the relative attractiveness of fixed income is diminishing.
This shift may trigger a significant rotation back into high-yielding equity sectors, particularly REITs, which are trading near decade-low valuations. Sila, with its combination of resilient cash flows, strong balance sheet, and 7% dividend, is well positioned to benefit from this potential influx of capital and may see meaningful upside as the market reprices high-quality REITs.
Previously, we covered a bullish thesis on STAG Industrial, Inc. (STAG) by Steve Wagner in May 2025, which highlighted the company’s strong industrial platform, robust leasing spreads, disciplined capital recycling, and consistent FFO growth. STAG’s stock price has appreciated by approximately 13.78% since our coverage. This is because STAG’s execution and capital strategy reinforced investor confidence. Jussi Askola, CFA shares a similar focus but emphasizes SILA REIT’s long-term triple net leases, predictable cash flows, and healthcare industry tailwinds, offering a complementary perspective within the REIT sector.
