SILA
Sila Realty Trust, Inc.
$30.21
Real Estate Investment Trust
85%
P/FFO × Healthcare REIT Multiple
Moderate
·
Conviction
Undervalued
Trading 35.2% below fair value
You pay
$30.21
Bear
$36.26
Fair
$46.62
Bull
$56.98
Bear
$36.26
+20.0%
$1.99 FFO × 18x
Fair
$46.62
+54.3%
$1.99 FFO × 23x
Bull
$56.98
+88.6%
$1.99 FFO × 29x
Key Value Driver
FFO/share ($1.99) × healthcare P/FFO multiple
Implied Market Multiple
15.2x
Summary
At $1.99 FFO/share with a 23x healthcare REIT multiple, the base-case value is $46.62 per share. Dividend yield: 5.3%.
Warnings
Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.
Dividend yield of 5.3% is unusually high — make sure the company generates enough cash to keep paying it.
Key Risks
- P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
- Interest rate sensitivity: REIT multiples compress when rates rise
- FFO approximation (NI + D&A) may include gains on property sales — verify