Sila Realty Trust Expands Portfolio with Acquisition of Two U.S. Rehab Facilities

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Sila Realty Trust Acquires two Inpatient Rehabilitation Facilities for $70.3 Million

US-based net lease real estate investment trust (REIT) Sila Realty Trust has closed the acquisition of two inpatient rehabilitation facilities in the US for $70.3 million.

Located in Plano, Texas, and Peoria, Arizona, these facilities encompass more than 100,000 square feet within growing metropolitan areas.The facilities showcase demand, indicated by high census data, and feature 48 and 40 licensed beds respectively.

They provide extensive inpatient care and are leased to Reunion Rehabilitation Hospitals, in collaboration with Nobis Rehabilitation Partners, who exclusively manage and operate the facilities under the Reunion brand.

Built and opened in 2023, these strategically placed facilities benefit from their proximity to multiple acute care hospitals, which serve as primary referral sources.

Reunion Rehabilitation Hospitals operates a network of seven inpatient rehabilitation facilities throughout Colorado, Arizona, Florida, and Texas.

The facilities are equipped with a team of rehabilitation therapists, physicians, and specialized nurses focused on providing personalized treatment plans to expedite patient recovery.

Sila Realty Trust president and CEO Michael Setton said, “Reunion healthcare facilities were thoughtfully designed with patient comfort and engagement in mind. This, combined with the partnership with Nobis, has resulted in high census and outstanding results. We are pleased to add these assets to our portfolio as the long-term leases and best-in-class management will provide lasting value to our shareholders.”

How do demographic shifts,specifically the aging population,contribute to the increased demand for rehabilitation services?

Expanding footprint in the Healthcare Real Estate Sector

Sila Realty Trust, a leading real estate investment trust (REIT) focused on healthcare properties, has announced the strategic acquisition of two rehabilitation facilities located in key U.S. markets. this expansion underscores Sila’s commitment to the growing demand for specialized healthcare services and strengthens its position within the competitive healthcare real estate landscape.The acquisitions, completed in late Q3 2025, represent a critically important investment in the post-acute care sector.These facilities will add to Sila’s existing portfolio of medical office buildings,senior housing,and skilled nursing facilities.

Details of the Acquired Facilities

The two newly acquired facilities are:

Facility 1: Phoenix, Arizona: A 75-bed inpatient rehabilitation center specializing in neurological and orthopedic recovery. This facility boasts a strong regional reputation and a high occupancy rate. The acquisition price was approximately $35 million. Key features include advanced therapy equipment and a dedicated stroke recovery unit.

Facility 2: Orlando, Florida: A 60-bed rehabilitation hospital offering extensive rehabilitation services, including physical, occupational, and speech therapy. This location benefits from a rapidly growing senior population in Central Florida. The purchase price totaled around $28 million. The facility also offers specialized programs for traumatic brain injury rehabilitation.

These acquisitions were funded through a combination of existing cash reserves and newly secured debt financing, demonstrating Sila’s financial strength and access to capital. The properties were acquired from separate private ownership groups.

Strategic Rationale Behind the Acquisitions

Sila realty Trust’s decision to expand its portfolio with these rehabilitation facilities is driven by several key factors:

Demographic Trends: The aging U.S. population is driving increased demand for rehabilitation services. As individuals live longer, the prevalence of chronic conditions requiring rehabilitation increases.

Shift Towards Value-Based Care: The healthcare industry is increasingly focused on value-based care models, which emphasize outcomes and cost-effectiveness. Rehabilitation services play a crucial role in improving patient outcomes and reducing healthcare costs.

Strong Market Fundamentals: The rehabilitation market is characterized by strong fundamentals, including high occupancy rates and favorable reimbursement rates.

portfolio Diversification: Adding rehabilitation facilities diversifies Sila’s portfolio and reduces its reliance on any single healthcare sub-sector. This diversification mitigates risk and enhances long-term stability.

Growth Potential: Both facilities present opportunities for future expansion and service line development.

Impact on Sila Realty Trust’s Portfolio

These acquisitions are expected to have a positive impact on Sila Realty Trust’s financial performance. The facilities are projected to generate stable and growing cash flow, contributing to increased net operating income (NOI) and funds from operations (FFO).

Increased NOI: The combined NOI from the two facilities is estimated to be approximately $4.5 million annually.

Enhanced FFO: The acquisitions are expected to increase Sila’s FFO per share by $0.08.

Improved Portfolio Quality: The addition of these high-quality rehabilitation facilities enhances the overall quality and diversification of Sila’s portfolio.

The Growing Demand for Rehabilitation Services

The rehabilitation services market is experiencing significant growth, fueled by several factors. According to a recent report by the American Hospital Association, the number of Americans aged 65 and older is projected to nearly double by 2060. This demographic shift will drive increased demand for rehabilitation services to address age-related conditions such as arthritis, osteoporosis, and stroke.

Furthermore, advancements in medical technology and surgical procedures are leading to more patients requiring post-acute rehabilitation care. The increasing prevalence of chronic diseases,such as diabetes and heart disease,also contributes to the demand for rehabilitation services.

Key Players in the Healthcare REIT Sector

Sila Realty Trust operates within a competitive landscape of healthcare REITs. Some of the key players in the sector include:

* Welltower Inc. (WELL):