Sila Realty Trust, Inc.

Good morning and welcome to CELA Realty Trust's fourth quarter 2025 earnings conference call and webcast. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. I will now turn the conference over to your host, Miles Callahan, Senior Vice President of Acquisitions, Capital Markets, Research, and Credit for CELA. You may begin.

Good morning, and welcome to Cielo Realty Trust's fourth 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 investors.cielorealtytrust.com. With me today are Michael Seaton, President and Chief Executive Officer, and Kay Neely, Executive Vice President and Chief Financial 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, and 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 fourth 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 8K we file with the SEC. With that, I will now turn the call over to Michael Seaton, our President and Chief Executive Officer.

Thank you, Myles, and good morning to everyone joining us today. As we begin a new year, I look back on 2025, our first full calendar year as a publicly traded company, as one during which we faithfully executed our strategy of growing Cielo Realty Trust in a skillful and thoughtful manner. CELA was added to several prominent equity indices during the year, including the RMZ and the Russell 2000. And our shareholder base has continued to evolve to larger institutional investors from an entirely retail ownership at one time prior. We believe our ownership transition reflects the market's recognition of what we have been building at CELA for many years. a high-quality, necessity-based healthcare real estate portfolio designed to deliver predictable, durable, and growing income streams through any market cycle. During 2025, we acquired six healthcare facilities for an aggregate purchase price of approximately $150 million, which equated to 241,000 rentable square feet. Each of these new facilities fits well within what we call the seal of mold, exhibiting the characteristics that we see in new opportunities, modern construction, high utilization, favorable market demographics, and quality tenant sponsorship. After the year end, we closed on another purpose-built state-of-the-art inpatient rehabilitation facility in Oklahoma City for $43.1 million. This well-utilized facility further expands our relationship with Novus Rehabilitation Partners, a well-respected and strong operator in the post-acute space. The property was originally constructed in 2022 and has experienced such strong demand since opening that it has recently undergone an expansion, increasing its licensed bed count from 40 to 58 beds. With the support of a long-term lease with contractual lease escalators, strong EBITDARM coverage, experienced sponsorship and limited competition, we believe this facility aligns firmly within our objective to deliver lasting value to CELA and its shareholders. CELA's ownership of high-quality, diverse healthcare assets with best-in-class tenancy creates opportunities to invest additional capital in existing properties which experience outsized demand for healthcare services within current building envelopes. Over the past year, we have completed over $7 million of redevelopment opportunities at compelling risk-adjusted returns. We are readily prepared to provide capital to our strong and growing tenant base when it aligns with our mutual interest to address market-driven demand requirements with minimal operating execution risk. Consistent with this approach, we have already committed to providing additional capital at our Dover Healthcare facility as previously disclosed during our third quarter earnings call and intend to execute a similar investment at our Overland Park Healthcare facility, both of which are inpatient rehabilitation facilities leased to PAM Health, our largest tenant and one of the strongest and most respective post-acute operators. We foresee additional expansion opportunities in the near future, which typically offer more favorable returns compared to recent acquisition opportunities, frequently yielding 150 to 200 basis points higher than going in capitalization rates. Turning to an update on the Stoughton Healthcare Facility, I'm pleased to report that the building demolition has been completed and the removal of building debris is well underway, which work we currently expect to be entirely finished by the end of the first quarter of 2026. The decision to raise the existing building structures has allowed us to already significantly reduce carrying costs of the properties, which will be reduced to approximately $35,000 per month from as much as $120,000 per month during the middle of last year. I would like to bring your attention to a few plan dispositions in 2026 and our continued pursuit to optimize our portfolio construction. Toward year end 2025, we executed purchase and sale agreements on three properties, our Henderson, Las Vegas II, and Saginaw Healthcare Facilities. After year end, we closed on the sale of the Saginaw Healthcare Facility for gross sales proceeds of $14.5 million, while the Henderson and Las Vegas two healthcare facilities are estimated to close in the first quarter of 2026. We also recently executed a purchase and sale agreement to sell the Alexandria Healthcare Facility, which became vacant in December of 2025 with the departure of our ASC tenant. Subject to the typical due diligence process, we would expect this sale to close around the end of the first quarter or beginning of the second quarter. We had approximately 4.8% of total gross leasable area scheduled to expire in 2025. Our leasing team successfully retained 90% of scheduled expiring tenancy on a square footage basis, while the 10% of tenants who did not renew represented only 0.5% of ABR. The Alexandria Health Care Facility, which I just mentioned, accounted for 60% of that 10% non-renewal. In addition, the tenant which had a lease expiry in 2025 at our Tampa Health Care Facility did not fully vacate its space. It simply reduced its footprint in the building due to the departure of a subtenant. This available space is only 2,100 square feet and has seen strong interest due to the facility's location in a bustling medical corridor in Tampa, in close proximity to BayCare St. Joseph's Hospital and BayCare's newly planned health hub. Our lease renewal activity and proactive early lease extensions at our other properties resulted in an increase to our weighted average remaining lease term from 9.7 years at the end of the third quarter of 2025 to 10 years by year end. For leases scheduled to expire in 2026, we have already completed renewals for 34.8% of the 4.1% of total gross leaseable area expiring in the year. For the renewal pipeline for 2026, we have a known conversion of a single-tenant property into a multi-tenant property. With this change, the legacy tenancy will renew approximately 60% of the total space. leaving the balance, or 40%, which represents approximately 0.3% of company ABR, to be re-left to new tenants. We have already engaged a well-known broker and are actively marketing the anticipated available space. Our portfolio continues to demonstrate significant strength, while our high credit quality remains a critical factor in ensuring CLS sustained success. Notably, there have been meaningful improvements in our tenant credit quality during 2025, which have aided the growth in our investment grade rated tenant guarantor and affiliate percentage by 2.3% on a year-over-year basis to 40.6%. As an example of credit quality upgrade in the fourth quarter of 2025, Washington Regional Medical Center, an investment grade rated best-in-class regional hospital system, executed a lease and took occupancy of our Fayetteville health care facility from Community Health Systems. This transition moves Community Health Systems from being our third largest tenant to our seventh largest tenant at year end, further diversifying our tenant concentration and upgrading our overall sponsorship profile. In addition, subsequent to year end, Community Health Systems completed the divestiture of its three Pennsylvania hospitals, including our Wilkes-Barre Healthcare Facility to Tenor Health Foundation, effective February 1, 2026, which will further reduce our CHS exposure going forward. In the fourth quarter, our tenant at our Savannah Healthcare Facility was successfully sold through the bankruptcy process to Select Medical, an existing tenant in CLS portfolio, moving Select up to be our fourth largest tenant and providing operational strength and stability to the Savannah asset going forward. Lastly, on the sponsorship front, late in the fourth quarter of 2025, Sincora, one of the largest Fortune 500 companies, announced that it has entered into a definitive agreement to acquire the majority of the outstanding equity interest that it does not already own in one oncology. Sencora, with over $300 billion in annual revenue, will be the common control at our seven former GenesisCare master leased properties. As we look ahead to the full year 2026, I see Ciela as a company in prime position to continue executing on its strategy. We have the balance sheet, strength, pipeline, team members, and discipline to continue to allocate capital skillfully, and thoughtfully. The silver tsunami is imminent, with the entire baby boomer generation reaching 65 or older by 2030, which is expected to increase total outpatient healthcare spending to nearly $2 trillion. We continue to believe that this demographic shift should drive increasing patient volumes and case acuity, supporting stronger operator revenues and therefore more durable income streams for CELA. As we know, healthcare is non-discretionary, which means healthcare real estate is vital social infrastructure. Today, SEAL owns over $2 billion worth of institutional quality healthcare facilities with high utilization, which along with the triple net lease structures that we have in place at 99.9% of our properties provides a powerful combination for long-term success. I will now turn the call over to Kay to discuss our financial performance.