Sila Realty Trust, Inc.

Second quarter 2025 earnings conference call and webcast. All participants will be in listen only mode. Should you need assistance, please sign up a conference specialist by pressing the star key followed by zero. I will now turn the conference over to your host, Myas Kalahan, senior vice president of capital markets and investor relation for CELA. You may begin.

Good morning and welcome to CELA Realty Trust second quarter 2025 earnings conference call. Yesterday evening, we issued our earnings release and supplement, which are available on the investor relations section of our website at .celarealtysrust.com. With me today are Michael Seaton, president and chief executive officer, Kay Neely, executive vice president and chief financial officer, and Chris Flowhouse, executive vice president and chief investment officer. Before we begin, I would like to remind you that today's comments will include forward looking statements under federal securities laws. Forward looking statements are identified by words such as will, be, intend, believe, expect, anticipate or other comparable words and phrases. Statements that are not historical facts, such as statements about expected financial performance are also forward looking statements. Actual results may differ materially from those contemplated by such forward looking statements. A discussion of the factors that could cause a material difference in our results compared to these forward looking statements is contained in our SEC filings. Please note that on today's call, we will be referring to non-GAAP measures. You can find the reconciliation of these historical non-GAAP measures to the most directly comparable GAAP measures in our second quarter earnings release and our earnings supplement, both of which can be found on the investor relations section of our website and in the form AK we file with the SEC. With that, I will now turn the call over to our president and chief executive officer, Michael Seaton.

Thank you, Miles, and good morning to everyone. Thank you for taking the time to join our call today. Our team delivered another positive quarter of results driven by quality operating fundamentals and our ability to remain steadfast in our commitment to our prudent capital allocation strategy. While macroeconomic and legislative uncertainty remain top of mind, SEALA's portfolio continues to fire on all cylinders. With a strong average EBITDAARM coverage ratio of 5.31 times, a portfolio weighted average remaining lease term of nine and a half years, meaningful annual contractual rent growth of 2.2%, and over 568 million in liquidity, our resilient portfolio, an enviable capital position provides stability to deliver solid earnings growth and reinforces our ability to maintain a healthy dividend for our shareholders. On top of our robust operating performance, we remain emboldened by our focus on necessity-based healthcare solutions, focusing on operators that deliver better outcomes for patients in convenient locations at an affordable price. Despite the headlines in various healthcare-related proposals coming from Capitol Hill, our strategic healthcare focus, along with the ultimate tailwind that is the impending silver tsunami of aging adults, provides us with confidence in our ability to continue to grow over the long-term with the partnerships of our established and resilient tenancy. With the passing and signing into law of the One Big Beautiful Bill Act, there are uncertainties as it pertains to healthcare and how the bill will ultimately affect all aspects of the healthcare delivery system. However, many of our tenants across the healthcare continuum of care provide us with payer-mixed information when reporting financial results. Of the tenants that report, Medicaid reimbursement is only a very small fraction of the revenue base. This limited exposure by our tenants to Medicaid and consequently our portfolio is largely due to the types of healthcare facilities that we invest in, the services being provided and the markets in which they reside. In the second quarter, we remain focused on our accretive and thoughtful capital allocation strategy. In April, we closed on the off-market acquisition of our new Dover Healthcare Facility asset, the only inpatient rehabilitation facility in Kent County and one of only four in the state of Delaware. The facility is leased to a joint venture between two -in-class operators, Bay Health, a very strong and successful investment-grade rated health system and the second largest in the state, and PAM Health, or PAM, one of the nation's largest and leading providers of post-acute healthcare services. This facility constructed in 2019 reached stabilization more rapidly than any other PAM facility in the company's history and remains very highly utilized. With such high demand and little competition in the market comes an opportunity to expand the facility which we are currently discussing with the existing tenancy. Subsequent to quarter end, we closed on a two-property MOB portfolio in South Lake, Texas. These properties benefit from strong operational synergies as physicians who practice at the traditional MOB routinely perform surgeries at the outpatient surgery center, creating a unique referral and care pathway between the two buildings. All three of these facilities fit very well within the seal of MOB, and we are excited to embed them within our operating platform. Beyond these three transactions, we are currently under exclusive LOI on over 70 million of new net lease healthcare transactions that are currently going through the typical pre-acquisition due diligence process. The ultimate acquisition of these properties is subject to our due diligence and closing process. However, should they occur, we currently would anticipate they would close in or around the third quarter. Beyond our most recent three net lease acquisitions made, we also utilized our share repurchase program to execute on over $7 million of share repurchases during the quarter. We noticed a significant enough dislocation in our public market share price and private market valuations to make the decision to use excess cash on hand to capture accretion in value for shareholders. As conveyed previously and demonstrated this quarter, share repurchases are a tool in our toolbox that we can use if we deem there to be dislocation in our share price. That being said, our bias remains pointed towards growth through acquisitions of physical property. Finally, I am happy to report that we have arrived at a strategic vision and solution for our Stoughton asset. After exploring many options over the past month, we deem that the course allowing for the highest value for our shareholders is to demolish the building and entitle the land for separate use. The demolition of the building will halt a majority of the expense leakage and is expected to be completed around the end of this year. With the removal of the Stoughton asset from service, our portfolio lease percentage increased to 99.2%. Healers advantages were on full display this quarter. Our balance sheet strength and liquidity position continue to allow us to be opportunistic by executing on accretive transactions while using excess cash to execute on strategic share repurchases. While there is still much noise and uncertainty within the healthcare landscape today, our creative capital allocation decisions this quarter are a testament to our focus on delivering the best value for shareholders over the long term. I will now turn to Kay to discuss our financial performance.