Cover - shares shares in Thousands	6 Months Ended
Cover - shares shares in Thousands	Jun. 30, 2021	Aug. 06, 2021
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	000-55435
Entity Registrant Name	SILA REALTY TRUST, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	46-1854011
Entity Address, Address Line One	4890 West Kennedy Blvd.
Entity Address, Address Line Two	Suite 650
Entity Address, City or Town	Tampa
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33609
City Area Code	813
Local Phone Number	287-0101
Title of 12(b) Security	None
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001567925
No Trading Symbol Flag	true
Current Fiscal Year End Date	--12-31
Class A
Entity Common Stock, Shares Outstanding (in shares)		167,198
Class I
Entity Common Stock, Shares Outstanding (in shares)		12,911
Class T
Entity Common Stock, Shares Outstanding (in shares)		40,039
Class T2
Entity Common Stock, Shares Outstanding (in shares)		3,431

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Real estate:
Land	$ 169,540	$ 168,969
Buildings and improvements, less accumulated depreciation of $141,894 and $119,947, respectively	1,667,526	1,661,351
Construction in progress	6,862	19,232
Total real estate, net	1,843,928	1,849,552
Cash and cash equivalents	47,921	53,174
Acquired intangible assets, less accumulated amortization of $60,027 and $49,866, respectively	188,195	197,901
Goodwill	23,284	23,955
Right-of-use assets - operating leases	21,838	22,499
Right-of-use assets - finance leases	2,306	2,527
Notes receivable, net	30,642	31,262
Other assets, net	78,437	64,669
Assets held for sale, net	953,294	959,750
Total assets	3,189,845	3,205,289
Liabilities:
Notes payable, net of deferred financing costs of $487 and $682, respectively	145,405	146,645
Credit facility, net of deferred financing costs of $5,021 and $5,900, respectively	947,979	932,100
Accounts payable and other liabilities	55,104	67,946
Acquired intangible liabilities, less accumulated amortization of $3,763 and $3,122, respectively	12,884	11,971
Operating lease liabilities	23,559	23,926
Finance lease liabilities	2,634	2,843
Liabilities held for sale, net	363,567	365,985
Total liabilities	1,551,132	1,551,416
Stockholders’ equity:
Preferred stock, $0.01 par value per share, 100,000,000 shares authorized; none issued and outstanding	0	0
Common stock, $0.01 par value per share, 510,000,000 shares authorized; 236,667,200 and 234,957,801 shares issued, respectively; 223,285,587 and 222,045,522 shares outstanding, respectively	2,233	2,220
Additional paid-in capital	1,995,298	1,983,361
Accumulated distributions in excess of earnings	(345,941)	(311,264)
Accumulated other comprehensive loss	(12,877)	(20,444)
Total stockholders’ equity	1,638,713	1,653,873
Total liabilities and stockholders’ equity	$ 3,189,845	$ 3,205,289

CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Buildings and improvements, accumulated depreciation	$ 141,894	$ 119,947
Acquired intangible assets, accumulated amortization	60,027	49,866
Notes payable, deferred financing costs	487	682
Credit facility, deferred financing costs	5,021	5,900
Acquired intangible liabilities, accumulated amortization	$ 3,763	$ 3,122
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	510,000,000	510,000,000
Common stock, shares issued (in shares)	236,667,200	234,957,801
Common stock, shares outstanding (in shares)	223,285,587	222,045,522

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue:
Rental revenue	$ 43,747	$ 41,731	$ 86,169	$ 83,157
Expenses:
Rental expenses	3,275	3,895	6,489	8,234
General and administrative expenses	6,639	3,188	13,262	6,382
Internalization transaction expenses	0	911	0	1,405
Asset management fees	0	4,198	0	8,386
Depreciation and amortization	17,615	17,110	35,839	35,712
Impairment loss on real estate	6,502	0	16,925	0
Impairment loss on goodwill	431	0	671	0
Total expenses	34,462	29,302	73,186	60,119
Gain on real estate disposition	0	2,703	0	2,703
Income from operations	9,285	15,132	12,983	25,741
Interest and other expense, net	9,534	10,809	18,298	22,732
(Loss) income from continuing operations	(249)	4,323	(5,315)	3,009
Income from discontinued operations	16,305	6,772	24,253	13,755
Net income attributable to common stockholders	16,056	11,095	18,938	16,764
Other comprehensive income (loss):
Unrealized income (loss) on interest rate swaps, net	1,775	(1,140)	7,567	(21,474)
Other comprehensive income (loss)	1,775	(1,140)	7,567	(21,474)
Comprehensive income (loss) attributable to common stockholders	$ 17,831	$ 9,955	$ 26,505	$ (4,710)
Weighted average number of common shares outstanding:
Basic (in shares)	223,082,912	220,992,009	222,783,708	221,285,475
Diluted (in shares)	223,082,912	221,029,409	222,783,708	221,319,218
Basic:
Basic, continuing operations (in dollars per share)	$ 0	$ 0.02	$ (0.02)	$ 0.02
Basic, discontinued operations (in dollars per share)	0.07	0.03	0.11	0.06
Basic (in dollars per share)	0.07	0.05	0.09	0.08
Diluted:
Diluted, continuing operations (in dollars per share)	0	0.02	(0.02)	0.02
Diluted, discontinued operations (in dollars per share)	0.07	0.03	0.11	0.06
Diluted (in dollars per share)	0.07	0.05	0.09	0.08
Distributions declared per common share (in dollars per share)	$ 0.12	$ 0.12	$ 0.24	$ 0.24

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Total Stockholders’ Equity	Common Stock	Additional Paid-in Capital	Accumulated Distributions in Excess of Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interests
Balance, (in shares) at Dec. 31, 2019			221,912,714
Balance, beginning at Dec. 31, 2019	$ 1,738,419	$ 1,738,417	$ 2,219	$ 1,981,848	$ (240,946)	$ (4,704)	$ 2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under the distribution reinvestment plan (in shares)			1,785,000
Issuance of common stock under the distribution reinvestment plan	15,442	15,442	$ 18	15,424
Vesting of restricted stock (in shares)			2,250
Stock-based compensation	57	57		57
Distribution and servicing fees	59	59		59
Other offering costs	(9)	(9)		(9)
Repurchase of common stock (in shares)			(2,834,656)
Repurchase of common stock	(24,521)	(24,521)	$ (28)	(24,493)
Distributions to common stockholders	(53,167)	(53,167)			(53,167)
Other comprehensive income (loss)	(21,474)	(21,474)				(21,474)
Net income	16,764	16,764			16,764
Balance, (in shares) at Jun. 30, 2020			220,865,308
Balance, ending at Jun. 30, 2020	1,671,570	1,671,568	$ 2,209	1,972,886	(277,349)	(26,178)	2
Balance, (in shares) at Mar. 31, 2020			221,387,100
Balance, beginning at Mar. 31, 2020	1,692,666	1,692,664	$ 2,214	1,977,360	(261,872)	(25,038)	2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under the distribution reinvestment plan (in shares)			891,257
Issuance of common stock under the distribution reinvestment plan	7,711	7,711	$ 9	7,702
Vesting of restricted stock (in shares)			2,250
Stock-based compensation	30	30		30
Distribution and servicing fees	26	26		26
Other offering costs	(2)	(2)		(2)
Repurchase of common stock (in shares)			(1,415,299)
Repurchase of common stock	(12,244)	(12,244)	$ (14)	(12,230)
Distributions to common stockholders	(26,572)	(26,572)			(26,572)
Other comprehensive income (loss)	(1,140)	(1,140)				(1,140)
Net income	11,095	11,095			11,095
Balance, (in shares) at Jun. 30, 2020			220,865,308
Balance, ending at Jun. 30, 2020	$ 1,671,570	1,671,568	$ 2,209	1,972,886	(277,349)	(26,178)	$ 2
Balance, (in shares) at Dec. 31, 2020	222,045,522		222,045,522
Balance, beginning at Dec. 31, 2020		1,653,873	$ 2,220	1,983,361	(311,264)	(20,444)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under the distribution reinvestment plan (in shares)			1,706,088
Issuance of common stock under the distribution reinvestment plan	$ 14,833	14,833	$ 17	14,816
Vesting of restricted stock (in shares)			3,311
Stock-based compensation		1,119		1,119
Distribution and servicing fees		76		76
Repurchase of common stock (in shares)			(469,334)
Repurchase of common stock		(4,078)	$ (4)	(4,074)
Distributions to common stockholders		(53,615)			(53,615)
Other comprehensive income (loss)		7,567				7,567
Net income	$ 18,938	18,938			18,938
Balance, (in shares) at Jun. 30, 2021	223,285,587		223,285,587
Balance, ending at Jun. 30, 2021		1,638,713	$ 2,233	1,995,298	(345,941)	(12,877)
Balance, (in shares) at Mar. 31, 2021			222,702,903
Balance, beginning at Mar. 31, 2021		1,642,170	$ 2,227	1,989,599	(335,004)	(14,652)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under the distribution reinvestment plan (in shares)			857,926
Issuance of common stock under the distribution reinvestment plan		7,459	$ 8	7,451
Stock-based compensation		563		563
Distribution and servicing fees		74		74
Repurchase of common stock (in shares)			(275,242)
Repurchase of common stock		(2,391)	$ (2)	(2,389)
Distributions to common stockholders		(26,993)			(26,993)
Other comprehensive income (loss)		1,775				1,775
Net income		16,056			16,056
Balance, (in shares) at Jun. 30, 2021	223,285,587		223,285,587
Balance, ending at Jun. 30, 2021		$ 1,638,713	$ 2,233	$ 1,995,298	$ (345,941)	$ (12,877)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net income attributable to common stockholders	$ 18,938	$ 16,764
Adjustments to reconcile net income attributable to common stockholders to net cash provided by operating activities:
Depreciation and amortization	47,554	52,359
Amortization of deferred financing costs	2,007	1,893
Amortization of above-market leases	967	1,500
Amortization of below-market leases	(2,219)	(2,757)
Amortization of origination fee	138	26
Amortization of discount of deferred liability	109	0
Reduction in the carrying amount of right-of-use assets - operating leases, net	476	467
Reduction in the carrying amount of right-of-use assets - finance lease, net	9	0
Impairment loss on real estate	16,925	0
Impairment loss on goodwill	671	0
Gain on real estate disposition	0	(2,703)
Straight-line rent	(9,078)	(10,911)
Stock-based compensation	1,119	57
Changes in operating assets and liabilities:
Accounts payable and other liabilities	3,195	(543)
Accounts payable due to affiliates	0	21
Other assets	308	(433)
Net cash provided by operating activities	81,119	55,740
Cash flows from investing activities:
Investment in real estate	(25,048)	(5,030)
Consideration paid for the internalization transaction	(7,500)	0
Proceeds from real estate dispositions	0	6,129
Capital expenditures	(14,743)	(13,610)
Payments of deal costs	0	(126)
Real estate deposits, net	0	100
Proceeds from Collection of Notes Receivable	500	0
Net cash used in investing activities	(46,791)	(12,537)
Cash flows from financing activities:
Payments on notes payable	(2,238)	(1,743)
Proceeds from credit facility	15,000	95,000
Payments on credit facility	0	(65,000)
Payments of deferred financing costs	(92)	(32)
Prepaid loan costs	(95)	0
Repurchase of common stock	(4,078)	(24,521)
Offering costs on issuance of common stock	(1,232)	(1,608)
Distributions to common stockholders	(38,955)	(38,065)
Net cash used in financing activities	(31,690)	(35,969)
Net change in cash, cash equivalents and restricted cash	2,638	7,234
Cash, cash equivalents and restricted cash - Beginning of period	67,909	80,230
Cash, cash equivalents and restricted cash - End of period	70,547	87,464
Supplemental cash flow disclosure:
Interest paid, net of interest capitalized of $212 and $281, respectively	24,878	29,083
Supplemental disclosure of non-cash transactions:
Common stock issued through distribution reinvestment plan	14,833	15,442
Accrued capital expenditures	0	885
Origination of note receivable related to real estate disposition	$ 0	$ 28,000

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (PARENTHETICAL) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Statement of Cash Flows [Abstract]
Interest capitalized	$ 212	$ 281

Organization and Business Operations	6 Months Ended
Organization and Business Operations	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business Operations	Organization and Business Operations Sila Realty Trust, Inc., or the Company, is a Maryland corporation that was formed on January 11, 2013. The Company elected, and currently qualifies, to be taxed as a real estate investment trust, or a REIT, under the Internal Revenue Code of 1986, as amended, or the Code, for federal income tax purposes commencing with its taxable year ended December 31, 2014. Substantially all of the Company’s business is conducted through Sila Realty Operating Partnership, LP, a Delaware limited partnership, or the Operating Partnership, formed on January 10, 2013. The Company is the sole general partner and, prior to the completion of the Internalization Transaction (as defined herein) on September 30, 2020, Carter Validus Advisors II, LLC, or the Former Advisor, was the special limited partner of the Operating Partnership. As of the closing of the Internalization Transaction, the Company owns directly or indirectly, all of the interests in the Operating Partnership. Prior to September 30, 2020, the Former Advisor was responsible for managing the Company’s affairs on a day-to-day basis and for identifying and making investments on the Company’s behalf pursuant to an advisory agreement among the Company, the Operating Partnership and the Former Advisor. On July 28, 2020, the Company and the Operating Partnership entered into a Membership Interest Purchase Agreement, or the Purchase Agreement, to provide for the internalization of the external management functions previously performed for the Company and the Operating Partnership by the Former Advisor and its affiliates, or the Internalization Transaction. On September 30, 2020, the Company closed the Internalization Transaction. Effective September 30, 2020, as a result of the Internalization Transaction, the Former Advisor is no longer affiliated with the Company. Upon completion of the Internalization Transaction, individuals, who were previously employed by an affiliate of the Former Advisor, became employees of the Company and the functions previously performed by the Former Advisor were internalized by the Company. As an internally managed company, the Company no longer pays the Former Advisor and its affiliates any fees or expense reimbursements arising from the advisory agreement. In addition, on September 30, 2020, the Operating Partnership redeemed the Former Advisor’s limited partner interest (including special limited partner interest) in the Operating Partnership in connection with the Internalization Transaction. On September 30, 2020, the Company and Sila REIT, LLC, a Maryland limited liability company that is the sole limited partner of the Operating Partnership, entered into the Third Amended and Restated Agreement of Limited Partnership of the Operating Partnership, or the Third A&R LP Agreement, in order to reflect the completion of the Internalization Transaction. The Company was formed to invest primarily in quality income-producing commercial real estate, with a focus on data centers and healthcare properties, preferably with long-term leases to creditworthy tenants, as well as to make other real estate-related investments in such property types, which may include equity or debt interests in other real estate entities. During the three months ended June 30, 2021, the Company's board of directors, or the Board, made a determination to sell the Company's data center assets. On May 19, 2021, the Company and certain of its wholly-owned subsidiaries entered into a purchase and sale agreement, or the PSA, for the sale of up to 29 data center properties owned by the Company, which constitutes the entirety of the Company's data centers segment. See Note 3—"Discontinued Operations" for further discussion. The decision of the Board to sell the data center assets, as well as the execution of the PSA, represented a strategic shift that had a major effect on the Company's results and operations and assets and liabilities for the periods presented. As a result, the Company has classified the assets and liabilities in its data centers segment as assets held for sale, net, and liabilities held for sale, net, respectively, on the condensed consolidated balance sheets and the operations have been classified as income from discontinued operations on the condensed consolidated statements of comprehensive income (loss). As of June 30, 2021, the Company owned 154 real estate properties, including 29 real estate properties classified as discontinued operations, in two micropolitan statistical areas and 68 metropolitan statistical areas, or MSAs. On July 22, 2021, the Company completed the sale of all 29 of its data centers, or the Data Center Sale, for an aggregate sale price of $1,320,000,000, and generated proceeds of approximately $1,290,557,000, after transaction costs and other pro-rations, excluding defeasance and loan costs, subject to additional transaction costs paid subsequent to the closing date. See Note 18—"Subsequent Events" for additional information. Concurrently, the Board declared a special cash distribution of $1.75 per share of Class A, Class I, Class T and Class T2 shares of common stock. The special cash distribution was funded with the proceeds from the Data Center Sale. The special cash distribution was paid on July 30, 2021 to stockholders of record at the close of business on July 26, 2021, in the aggregate amount of approximately $392,685,000. The Company raised the equity capital for its real estate investments through two public offerings, or the Offerings, from May 2014 through November 2018, and the Company has offered shares pursuant to its distribution reinvestment plan, or the DRIP, pursuant to two Registration Statements on Form S-3, or each, a DRIP Offering and together the DRIP Offerings, since November 2017. Except as the context otherwise requires, the “Company” refers to Sila Realty Trust, Inc., the Operating Partnership and all wholly-owned subsidiaries.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

The summary of significant accounting policies presented below is designed to assist in understanding the Company’s condensed consolidated financial statements. Such condensed consolidated financial statements and the accompanying notes thereto are the responsibility of management. These accounting policies conform to United States generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of a normal and recurring nature considered for a fair presentation, have been included. Operating results for the three and six months ended June 30, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021.

The condensed consolidated balance sheet at December 31, 2020, has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended December 31, 2020, and related notes thereto set forth in the Company’s Annual Report on Form 10-K, filed with the SEC on March 24, 2021.

Principles of Consolidation and Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts of the Company, the Operating Partnership, and all wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the condensed consolidated financial statements and accompanying notes in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates.

Restricted Cash

Restricted cash consists of restricted cash held in escrow and restricted bank deposits. Restricted cash held in escrow includes cash held by lenders in escrow accounts for tenant and capital improvements, taxes, repairs and maintenance and other lender reserves for certain properties, in accordance with the respective lender’s loan agreement. Restricted bank deposits consist of tenant receipts for certain properties which are required to be deposited into lender-controlled accounts in accordance with the respective lender's loan agreement. Restricted cash held in escrow and restricted bank deposits attributable to continuing operations are reported in other assets, net, in the accompanying condensed consolidated balance sheets. See Note 10—"Other Assets, Net." Restricted cash held in escrow attributable to discontinued operations is reported in assets held for sale, net, in the accompanying condensed consolidated balance sheets.

The following table presents a reconciliation of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the totals shown in the condensed consolidated statements of cash flows (amounts in thousands):


	Six Months Ended June 30,
	2021			2020
Beginning of period:
Cash and cash equivalents	$	53,174		$	69,342
Restricted cash	14,735		(1)	10,888		(3)
Cash, cash equivalents and restricted cash	$	67,909		$	80,230

End of period:
Cash and cash equivalents	$	47,921		$	74,782
Restricted cash	22,626		(2)	12,682		(4)
Cash, cash equivalents and restricted cash	$	70,547		$	87,464

(1)Of this amount, $13,499,000 is attributable to continuing operations and $1,236,000 is attributable to discontinued operations.

(2)Of this amount, $21,390,000 is attributable to continuing operations and $1,236,000 is attributable to discontinued operations.

(3)Of this amount, $9,652,000 is attributable to continuing operations and $1,236,000 is attributable to discontinued operations.

(4)Of this amount, $11,446,000 is attributable to continuing operations and $1,236,000 is attributable to discontinued operations.

Held for Sale and Discontinued Operations

The Company classifies a real estate property as held for sale upon satisfaction of all of the following criteria: (i) management commits to a plan to sell a property, (ii) the property is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of such properties, (iii) there is an active program to locate a buyer, (iv) the sale of the property is probable and transfer of the asset is expected to be completed within one year, (v) the property is being actively marketed for sale, and (vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Upon the determination to classify a property as held for sale, the Company ceases depreciation and amortization on the real estate properties held for sale, as well as the amortization of acquired in-place leases and right-of-use assets. The real estate properties held for sale and associated liabilities are classified separately on the condensed consolidated balance sheets. Such properties are recorded at the lesser of the carrying value or estimated fair value less estimated cost to sell. The Company recorded the real estate properties held for sale at their carrying value at June 30, 2021.

Additionally, the Company classifies real estate properties held for sale as discontinued operations for all periods presented because they represent a strategic shift that had a major effect on the Company's results and operations. The assets and liabilities are classified on the condensed consolidated balance sheets as assets held for sale, net and liabilities held for sale, net, respectively, and the operations are classified on the condensed consolidated statements of comprehensive income (loss) as income from discontinued operations for all periods presented. The assets held for sale as of June 30, 2021 and December 31, 2020 relate to the Data Center Sale.

On July 22, 2021, the Company completed the Data Center Sale, for an aggregate sale price of $1,320,000,000, and generated proceeds of approximately $1,290,557,000, after transaction costs and other pro-rations, excluding defeasance and loan costs, subject to additional transaction costs paid subsequent to the closing date. See Note 18—"Subsequent Events" for additional information.

Impairment of Long-Lived Assets

The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate may not be recoverable. When indicators of potential impairment suggest that the carrying value of real estate may not be recoverable, the Company assesses the recoverability of the asset group by estimating whether the Company will recover the carrying value of the asset group through its undiscounted future cash flows and their eventual disposition. If, based

on this analysis, the Company does not believe that it will be able to recover the carrying value of the asset group, the Company will record an impairment loss to the extent that the carrying value exceeds the estimated fair value of the asset group.

When developing estimates of expected future cash flows, the Company makes certain assumptions regarding future market rental rates subsequent to the expiration of current lease arrangements, property operating expenses, terminal capitalization and discount rates, probability weighting of the potential re-lease of the property versus sales scenarios, sale prices of comparable properties, required tenant improvements and the number of years the property will be held for investment. The use of alternative assumptions in the future cash flow analysis could result in a different determination of the property’s future cash flows and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the carrying value of the real estate assets.

In addition, the Company estimates the fair value of the assets by applying a market approach using comparable sales for certain properties. The use of alternative assumptions in the market approach analysis could result in a different determination of the property’s estimated fair value and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the carrying value of the real estate assets.

Impairment of Real Estate

During the first quarter of 2021, real estate assets related to one healthcare property were determined to be impaired. A tenant of the property that was experiencing financial difficulty vacated its space on June 19, 2020. During the fourth quarter of 2020, the Company entered into lease negotiations with a prospective tenant for the same property, but the Company did not reach a mutual agreement. As such, the Company evaluated other strategic options for the property, including a possible sale, and in April 2021, the Company received a letter of intent from a prospective buyer. The inclusion of a potential sale scenario in the Company’s step one impairment analysis resulted in the expected future cash flows from the property to fall below its current carrying value. As a result, the carrying value of the property was reduced to its estimated fair value of $17,145,000, resulting in an impairment charge of $10,423,000.

During the second quarter of 2021, real estate assets related to one healthcare property were determined to be impaired. The tenant of the property was experiencing financial difficulty and vacated the space in March 2021. Subsequently, during the second quarter, the Company received a letter of intent from a prospective buyer. The inclusion of this new potential sale scenario in the Company's step one impairment analysis resulted in the expected future cash flows from the property falling below its current carrying value. The Company utilized a market approach, using comparable properties, to estimate the fair value of the property. As a result, the carrying value of the property was reduced to its estimated fair value of $5,957,000, resulting in an impairment charge of $2,894,000.

Additionally, during the second quarter of 2021, real estate assets related to another healthcare property were determined to be impaired. The last of the three tenants that occupied the building terminated its lease agreement and vacated the space on July 12, 2021. Subsequently, the Company received a letter of intent from a prospective buyer. The inclusion of this new potential sale scenario in the Company's step one impairment analysis resulted in the expected future cash flows from the property to fall below its current carrying value. As a result, the carrying value of the property was reduced to its estimated the fair value of $22,311,000, resulting in an impairment charge of $3,608,000. Impairment charges are recorded as impairment loss on real estate in the condensed consolidated statements of comprehensive income (loss).

No impairment losses were recorded on real estate assets during the three and six months ended June 30, 2020. See Note 14—"Fair Value" for further discussion.

During the second quarter of 2021, the Company accelerated depreciation of equipment at one healthcare property based on its anticipated sale in July 2021. As a result, the Company accelerated the depreciation of the equipment in the amount of $296,000 in depreciation and amortization expense in the condensed consolidated statements of comprehensive income (loss).

Impairment of Acquired Intangible Assets and Acquired Intangible Liabilities

During the three months ended June 30, 2021 and 2020, the Company did not record impairment of acquired intangible assets or acquired intangible liabilities.

During the six months ended June 30, 2021, the Company recognized an impairment of one in-place lease intangible asset in the amount of approximately $1,120,000, by accelerating the amortization of the acquired intangible asset related to one healthcare tenant of the Company that was experiencing financial difficulties and vacated the property in March 2021. On April 5, 2021, the Company terminated its lease agreement and the tenant paid a lease termination fee of $400,000, which was recorded in rental revenue in the condensed consolidated statements of comprehensive income (loss).

During the six months ended June 30, 2020, the Company recognized impairments of one in-place lease intangible asset in the amount of approximately $1,484,000 and one above-market lease intangible asset in the amount of approximately $344,000, by accelerating the amortization of the acquired intangible assets related to the previously mentioned healthcare tenant of the Company that was experiencing financial difficulties and vacated the property on June 19, 2020.

Impairment of Goodwill

Goodwill represents the excess of the amount paid over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination and is allocated to an entity's reporting units. Goodwill has an indefinite life and is not amortized. On September 30, 2020, the Company recorded $39,529,000 of goodwill related to the Internalization Transaction, of which $15,574,000 was allocated to the data center properties, which is now classified as assets held for sale, net, on the condensed consolidated balance sheets, and $23,955,000 was allocated to the healthcare segment. See Note 4—"Internalization Transaction" for details.

The Company evaluates goodwill for impairment when an event occurs or circumstances change that indicate the carrying value may not be recoverable, or at least annually. Unless circumstances otherwise dictate, the annual impairment test is performed as of the last day of each year. The Company evaluates potential triggering events that may affect the estimated fair value of the Company’s reporting units to assess whether any goodwill impairment exists. Deteriorating or adverse market conditions for certain reporting units may have a significant impact on the estimated fair value of these reporting units and could result in future impairments of goodwill. If the carrying value of a reporting unit exceeds its estimated fair value, then an impairment charge is recorded in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.

The Company has the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. Under a qualitative assessment, the impairment analysis for goodwill represents an evaluation of whether it is more-likely-than-not the reporting unit's fair value is less than its carrying value, including goodwill. If a qualitative analysis indicates that it is more-likely-than-not that the estimated carrying value of a reporting unit, including goodwill, exceeds its fair value, the Company performs the quantitative analysis as described below.

During the first quarter of 2021, the Company recognized $240,000 of goodwill impairment. Impairment loss on real estate recorded during such period (as discussed in the "Impairment of Real Estate" section above) triggered evaluation of the reporting unit fair value for goodwill impairment. The Company's reporting unit represents each individual operating real estate property. The carrying value of long-lived assets within the reporting unit with indicators of impairment were first tested for recoverability and resulted in recognition of impairment during such period. As a result, the fair value of the reporting unit compared to its carrying value, including goodwill, was determined to be lower than its carrying value. Therefore, the Company recognized an impairment loss on goodwill in the amount of $240,000 for the amount that the carrying value of the reporting unit, including goodwill, exceeded its fair value, limited to the total amount of goodwill allocated to that reporting unit and was recorded in impairment loss on goodwill in the condensed consolidated statements of comprehensive income (loss). Fair value of the reporting unit was determined based on a market valuation approach, using comparable sales to estimate the fair value. As of March 31, 2021, the Company did not have any goodwill associated with this healthcare reporting unit.

During the second quarter of 2021, the Company recognized $431,000 of goodwill impairment on two reporting units. Impairment loss on two real estate properties recorded during such period (as discussed in the "Impairment of Real Estate" section above) triggered evaluation of each reporting unit's fair value for goodwill impairment. As a result, the fair value of each reporting unit compared to its carrying value, including goodwill, was determined to be lower than its carrying value. Therefore, the Company recognized an impairment loss on goodwill for the two reporting units in the amounts of $112,000 and $319,000, respectively. Goodwill impairment was recorded for the amount that the carrying value of each reporting unit, including goodwill, exceeded its fair value, limited to the total amount of goodwill allocated to each reporting unit. Goodwill impairment was recorded in impairment loss on goodwill in the condensed consolidated statements of comprehensive income (loss). Fair value of each reporting unit was determined based on a market approach model. As of June 30, 2021, the Company did not have any goodwill associated with these healthcare reporting units.

The following table summarizes the rollforward of goodwill for the six months ended June 30, 2021, excluding amounts classified as held for sale (amounts in thousands):


	Goodwill
Balance as of December 31, 2020	$	23,955
Accumulated impairment losses	(671)
Balance as of June 30, 2021	$	23,284

Revenue Recognition, Tenant Receivables and Allowance for Uncollectible Accounts

The Company recognizes non-rental related revenue in accordance with Accounting Standards Codification, or ASC, 606, Revenue from Contracts with Customers, or ASC 606. The Company has identified its revenue streams as rental income from leasing arrangements and tenant reimbursements, which are outside the scope of ASC 606. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Non-rental revenue, subject to ASC 606, is immaterial to the Company's condensed consolidated financial statements.

The majority of the Company's revenue is derived from rental revenue, which is accounted for in accordance with ASC 842, Leases, or ASC 842. In accordance with ASC 842, rental revenue is recognized on a straight-line basis over the term of the related lease (including rent holidays). For lease arrangements when it is not probable that the Company will collect all or substantially all of the remaining lease payments under the term of the lease, rental revenue is limited to the lesser of the rental revenue that would be recognized on a straight-line basis or the lease payments that have been collected from the lessee. Differences between rental revenue recognized and amounts contractually due under the lease agreements are credited or charged to straight-line rent receivable or straight-line rent liability, as applicable. Tenant reimbursements, which are comprised of additional amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses, are recognized when the services are provided and the performance obligations are satisfied. The Company wrote off approximately $199,000 and $4,000 for the six months ended June 30, 2021 and 2020, respectively, as a reduction in rental revenue from continuing operations in the accompanying condensed consolidated statements of comprehensive income (loss) because the amounts were determined to be uncollectible. The Company wrote off approximately $17,000 for the six months ended June 30, 2021 related to discontinued operations, which was recorded in income from discontinued operations in the accompanying condensed consolidated statements of comprehensive income (loss). No write-offs were recorded during the three months ended June 30, 2021 and June 30, 2020, respectively.

On April 22, 2021, the Company entered into a settlement agreement with a data center property tenant that was experiencing financial difficulty due to deteriorating economic conditions driven by the impact of the COVID-19 pandemic and accelerating its modification of work strategy to a remote environment due to the pandemic. The tenant stopped paying rent in October 2020. Pursuant to the settlement agreement, the lease was terminated, effective immediately. The tenant surrendered the space on June 20, 2021. Additionally, in connection with the lease termination, the tenant paid the Company a $7,000,000 termination fee on April 23, 2021, which was recorded in income from discontinued operations in the accompanying condensed consolidated statements of comprehensive income (loss). Subsequent to June 30, 2021, the Company collected an additional $75,000 related to the lease termination agreement with the tenant.

Additionally, on January 26, 2021, in connection with a lease termination with a tenant of one healthcare property that was experiencing financial difficulty and vacated its space on June 19, 2020 (as discussed above), the Company entered into a settlement agreement with the prior tenant to recover certain outstanding rental obligations due under the lease agreement. Pursuant to the settlement agreement, the prior tenant agreed to pay approximately $620,000 in total, payable on a monthly basis from January 2021 through September 2022. During the three and six months ended June 30, 2021, the Company recovered $75,000 and $245,000 of settlement agreement income, respectively, and recorded these amounts on a cash basis, when received, due to uncertainty regarding collectability of the funds. Settlement agreement income was recorded in rental revenue in the accompanying condensed consolidated statements of comprehensive income (loss).

Notes Receivable

Notes receivable are recorded at their outstanding principal balance and accrued interest, unearned income, unamortized deferred fees and costs and allowances for loan losses. The Company defers notes receivable origination costs and fees and amortizes them as an adjustment of yield over the term of the related note receivable. Amortization of the notes receivable origination costs and fees is recorded in interest and other expense, net, in the accompanying condensed consolidated statements of comprehensive income (loss).

The Company evaluates the collectability of both interest and principal on each note receivable to determine whether it is collectable, primarily through the evaluation of credit quality indicators, such as the tenant's financial condition, collateral, evaluations of historical loss experience, current economic conditions and other relevant factors, including contractual terms of repayments. Evaluating a note receivable for potential impairment requires management to exercise judgment. The use of alternative assumptions in evaluating a note receivable could result in a different determination of the note's estimated fair value and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the carrying value of the note receivable.

Concentration of Credit Risk and Significant Leases

As of June 30, 2021, the Company had cash on deposit, including restricted cash, in certain financial institutions that had deposits in excess of current federally insured levels. The Company limits its cash investments to financial institutions with

high credit standings; therefore, the Company believes it is not exposed to any significant credit risk on its cash deposits. To date, the Company has not experienced a loss or lack of access to cash in its accounts.

As of June 30, 2021, the Company owned real estate investments in two micropolitan statistical areas and 68 metropolitan statistical areas, or MSAs, one MSA of which accounted for 10.0% or more of rental revenue from continuing operations for the six months ended June 30, 2021. Real estate investments located in the Houston-The Woodlands-Sugar Land, Texas MSA accounted for 12.1% of rental revenue from continuing operations for the six months ended June 30, 2021

As of June 30, 2021, the Company had one exposure to tenant concentration that accounted for 10.0% or more of rental revenue from continuing operations for the six months ended June 30, 2021. The leases with tenants at healthcare properties under common control of Post Acute Medical, LLC and affiliates accounted for 16.2% of rental revenue from continuing operations for the six months ended June 30, 2021.

Share Repurchase Program

The Company’s share repurchase program, or SRP, allowed for repurchases of shares of the Company’s common stock upon meeting certain criteria. The SRP provided that all repurchases during any calendar year, including those redeemable upon death or a "Qualifying Disability" as defined in the Company's SRP of a stockholder, be limited to those that can be funded with equivalent proceeds raised from the DRIP during the prior calendar year and other operating funds, if any, as the board of directors, in its sole discretion, may reserve for this purpose.

Repurchases of shares of the Company’s common stock were at the sole discretion of the Board, provided, however, that the Company could limit the number of shares repurchased during any calendar year to 5.0% of the number of shares of common stock outstanding as of December 31st of the previous calendar year. Subject to the terms and limitations of the SRP, including, but not limited to, quarterly share limitations, an annual 5.0% share limitation and DRIP funding limitations and any amendments to the plan, as more fully described below, the SRP was generally available to any stockholder as a potential means of interim liquidity. In addition, the Board, in its sole discretion, could suspend (in whole or in part) the SRP at any time, and could amend, reduce, terminate or otherwise change the SRP upon 30 days' prior notice to the Company’s stockholders for any reason it deemed appropriate.

On December 11, 2020, the Board authorized and approved the Amended and Restated Share Repurchase Program, or the A&R SRP, which applied beginning with the first quarter repurchase date of 2021, provided, however, the Company will only repurchase shares due to death and involuntary exigent circumstances in accordance with the A&R SRP, subject in each case to the terms and limitations of the A&R SRP, including, but not limited to, quarterly share limitations, an annual 5.0% share limitation, and distribution reinvestment plan funding limitations. Under the A&R SRP, the Company may waive certain of the terms and requirements of the A&R SRP in the event of the death of a stockholder who is a natural person, including shares held through an Individual Retirement Account or other retirement or profit-sharing plan, and certain trusts meeting the requirements of the A&R SRP. The Company may also waive certain of the terms and requirements of the A&R SRP in the event of an involuntary exigent circumstance, as determined by the Company or any of the executive officers thereof, in its or their sole discretion. See Part II, Item 2. "Unregistered Sales of Equity Securities" for more information on the Company's A&R SRP.

During the six months ended June 30, 2021, the Company repurchased 469,334 Class A shares, Class I shares and Class T shares of common stock (443,434 Class A shares, 2,504 Class I shares and 23,396 Class T shares), for an aggregate purchase price of approximately $4,078,000 (an average of $8.69 per share). During the six months ended June 30, 2020, the Company repurchased 2,834,656 Class A shares, Class I shares, Class T shares and Class T2 shares of common stock (2,197,452 Class A shares, 395,334 Class I shares, 238,206 Class T shares and 3,664 Class T2 shares), for an aggregate purchase price of approximately $24,521,000 (an average of $8.65 per share).

Stock-based Compensation

On March 6, 2020, the Board approved the Amended and Restated 2014 Restricted Share Plan, or the A&R Incentive Plan, pursuant to which the Company has the authority and power to grant awards of restricted shares of its Class A common stock to its directors, officers and employees. The Company accounts for its stock awards in accordance with ASC 718-10, Compensation—Stock Compensation. ASC 718-10 requires that compensation cost for all stock awards be calculated and amortized over the service period (generally equal to the vesting period). For performance-based awards, compensation costs are recognized over the service period if it is probable that the performance condition will be satisfied, with changes of the assessment at each reporting period and recording the effect of the change in the compensation cost as a cumulative catch-up adjustment. The compensation costs for restricted stock are recognized based on the fair value of the restricted stock awards at grant date less forfeitures (if applicable).

On January 8, 2021, the Company granted time-based awards to our executive officers of 178,366 in restricted shares of Class A common stock, or the Time-Based 2021 Awards. The Time-Based 2021 Awards will vest ratably over four years following the grant date, subject to each executive's employment through the applicable vesting dates, with certain exceptions. In addition, on January 8, 2021, the Company's compensation committee approved performance-based deferred stock unit awards, or Performance DSUs, to be granted for the Performance-Based 2021 Awards. The Performance DSUs represent the right to receive a number of restricted shares of the Company's Class A common stock on a one-to-one basis with the number of Performance DSUs that vest. The awards were granted under and subject to the terms of the A&R Incentive Plan and an award agreement. Stock-based compensation expense for the Time-Based 2021 Awards and Performance-Based 2021 Awards for the three and six months ended June 30, 2021, was approximately $226,000 and $452,000, which is reported in general and administrative expenses in the accompanying condensed consolidated statements of comprehensive income (loss). The Company recognized total stock-based compensation expense of $563,000 and $30,000 for the three months ended June 30, 2021 and 2020, respectively, and $1,119,000 and $57,000 for the six months ended June 30, 2021 and 2020, respectively, which is reported in general and administrative expenses in the accompanying condensed consolidated statements of comprehensive income (loss).

Earnings Per Share

The Company calculates basic earnings per share by dividing net income attributable to common stockholders for the period by the weighted average shares of its common stock outstanding for that period. Diluted earnings per share are computed based on the weighted average number of shares outstanding and all potentially dilutive securities. Shares of non-vested restricted common stock and Performance DSUs give rise to potentially dilutive shares of common stock. For the three and six months ended June 30, 2021, diluted earnings per share was computed the same as basic earnings per share because the Company recorded a loss from continuing operations, which would make potentially dilutive shares related to non-vested shares of restricted common stock and Performance DSUs antidilutive. For the three and six months ended June 30, 2020, diluted earnings per share reflected the effect of approximately 37,000 and 34,000 of non-vested awards that were outstanding as of each period, respectively.

Reportable Segments

ASC 280, Segment Reporting, establishes standards for reporting financial and descriptive information about an entity’s reportable segments. As of June 30, 2021 and December 31, 2020, 100% of the Company's consolidated revenues from continuing operations were generated from real estate investments in healthcare properties. The Company’s chief operating decision maker evaluates operating performance of healthcare properties on an individual property level, which are aggregated into one reportable business segment due to their similar economic characteristics.

In accordance with the definition of discontinued operations, the Company's decision to sell the properties in the data centers segment represented a strategic shift that had a major effect on the Company's results and operations and assets and liabilities for the periods presented. As a result of the Data Center Sale, the Company no longer has a data centers segment. All activities related to the previously reported data centers segment have been classified as discontinued operations. The assets and liabilities related to discontinued operations are separately classified on the condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020, as assets held for sale, net, and liabilities held for sale, net, and the operations have been classified as income from discontinued operations on the condensed consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020.

Derivative Instruments and Hedging Activities

As required by ASC 815, Derivatives and Hedging, or ASC 815, the Company records all derivative instruments at fair value as assets and liabilities on its condensed consolidated balance sheets. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge

or a hedge of a net investment in a foreign operation.

In accordance with the fair value measurement guidance Accounting Standards Update, or ASU, 2011-04, Fair Value Measurement, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.

The Company is exposed to variability in expected future cash flows that are attributable to interest rate changes in the normal course of business. The Company’s primary strategy in entering into derivative contracts is to add stability to future cash flows by managing its exposure to interest rate movements. The Company utilizes derivative instruments, including interest rate swaps, to effectively convert some of its variable rate debt to fixed rate debt. The Company does not enter into derivative instruments for speculative purposes.

In accordance with ASC 815, the Company designates interest rate swap contracts as cash flow hedges of floating-rate borrowings. For derivative instruments that are designated and qualify as cash flow hedges, the gains or losses on the derivative instruments are reported as a component of other comprehensive income (loss) in the condensed consolidated statements of comprehensive income (loss) and are reclassified into earnings in the same line item associated with the forecasted transaction in the same period during which the hedged transactions affect earnings. See additional discussion in Note 15—"Derivative Instruments and Hedging Activities."

Recently Adopted Accounting Pronouncements

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (ASC 848), or ASU 2020-04. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time through December 31, 2022, as reference rate reform activities occur. During the six months ended June 30, 2021, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact the guidance may have on its condensed consolidated financial statements and may apply other elections, as applicable, as additional changes in the market occur.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current financial statement presentation, with no effect on the Company’s condensed consolidated financial position or condensed consolidated statement of comprehensive income (loss). Amounts related to expenses incurred in connection with the Internalization Transaction were previously classified in general and administrative expenses, for the three and six months ended June 30, 2020, but are now presented separately as internalization transaction expenses, in the condensed consolidated statements of comprehensive income (loss). In addition, the Company's assets and liabilities related to the data center properties are classified as assets held for sale, net, and liabilities held for sale, net, respectively, on the condensed consolidated balance sheets and their operations are classified as income from discontinued operations on the condensed consolidated statements of comprehensive income (loss) for all periods presented.

Discontinued Operations

6 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

The assets and liabilities related to the 29 data center properties are separately classified on the condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020 as assets held for sale, net, and liabilities held for sale, net, and their operations have been classified as income from discontinued operations on the condensed consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020. The Company has ceased to record depreciation and amortization for the assets classified as held for sale.

On July 22, 2021, the Company completed the Data Center Sale for an aggregate sale price of $1,320,000,000, and generated proceeds of approximately $1,290,557,000, after transaction costs and other pro-rations, excluding defeasance and loan costs, subject to additional transaction costs paid subsequent to the closing date. See Note 18—"Subsequent Events" for additional information.

The following table presents the major classes of assets and liabilities of 29 data center properties classified as assets held for sale, net, presented separately in the condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020 (amounts in thousands):


	June 30, 2021		December 31, 2020
Assets:
Real estate:
Land	$	166,709	$	166,709
Buildings and improvements, net	671,572		677,563
Total real estate, net	838,281		844,272
Acquired intangible assets, net	45,645		48,860
Goodwill	15,574		15,574
Right-of-use assets - operating leases	7,116		7,252

Other assets, net (1)	46,678		43,792
Assets held for sale, net	$	953,294	$	959,750
Liabilities:
Notes payable, net	$	304,375	$	304,972
Accounts payable and other liabilities (2)	12,024		12,300
Acquired intangible liabilities, net	39,011		40,589
Operating lease liabilities	8,157		8,124
Liabilities held for sale, net	$	363,567	$	365,985

(1) Primarily consists of straight-line rent receivable, net, leasing commissions, net, and restricted cash.

(2) Primarily consists of accounts payable and accrued expenses, accrued property taxes, deferred rental income and derivative liabilities.

The operations reflected in income from discontinued operations on the condensed consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020, were as follows (amounts in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenue:
Rental revenue	$	26,250	$	27,144	$	51,723	$	54,903
Lease termination revenue	7,000		—		7,000		—
Total revenue	33,250		27,144		58,723		54,903
Expenses:
Rental expenses	9,576		7,027		15,992		14,176


Asset management fees	—		1,771		—		3,539
Depreciation and amortization	3,981		8,184		11,724		16,647


Total expenses	13,557		16,982		27,716		34,362
Interest and other expense, net (1)	3,388		3,390		6,754		6,786
Income from discontinued operations	$	16,305	$	6,772	$	24,253	$	13,755

(1) Interest expense attributable to discontinued operations for the three months ended June 30, 2021 and 2020, was $3,402,000 and $3,420,000, respectively, and $6,771,000 and $6,841,000 for the six months ended June 30, 2021 and 2020, respectively, which related to notes payable on certain data center properties. On July 22, 2021, in connection with the disposition and proceeds received from the data center properties, the Company paid off all data center and healthcare related notes payable, with an outstanding principal balance of $450,806,000 at the time of repayment. See Note 18—"Subsequent Events" for additional information.

Capital expenditures on a cash basis for the six months ended June 30, 2021 and 2020, were $2,017,000 and $3,449,000, respectively, related to properties classified within discontinued operations.

There were no significant non-cash operating or investing activities for the properties classified within discontinued operations for the six months ended June 30, 2021. Significant non-cash operating activities for properties classified within discontinued operations were $2,534,000 for the six months ended June 30, 2020, which primarily related to property taxes and utilities. There were no significant non-cash investing activities for the properties classified within discontinued operations for the six months ended June 30, 2020.

Internalization Transaction

6 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

Internalization Transaction

Overview

On July 28, 2020, the Company and the Operating Partnership entered into the Purchase Agreement, to effectively provide for the internalization of the Company’s external management functions. The Purchase Agreement was entered into with the Former Advisor, and various affiliates of the Former Advisor, or the Sellers, and Sila Realty Management Company, LLC, f/k/a CV Manager, LLC, a newly formed Delaware limited liability company, or Manager Sub.

The Internalization Transaction closed on September 30, 2020. A special committee comprised entirely of independent and disinterested members of the Board, negotiated the Internalization Transaction and, after consultation with its independent legal and financial advisors, determined that the Internalization Transaction was advisable, fair and reasonable to and in the Company’s best interests and on terms and conditions no less favorable to the Company than those available from unaffiliated third parties. The Company believes that the Internalization Transaction provides various benefits, including cost savings, continuity of management and further alignment of interests between management and its stockholders, as well as a potential benefit for ultimate liquidity given the preference for an internal management structure in traded equity REITs.

Under the Purchase Agreement and related agreements, immediately prior to the closing of the Internalization Transaction, the Sellers assigned to Manager Sub all of the assets necessary to operate the business of the Company and its subsidiaries, or the Business, and delegated all obligations of the Sellers in connection with the Business to Manager Sub pursuant to an assignment and acceptance agreement.

On September 30, 2020, or the Closing, under the Purchase Agreement, the Operating Partnership (i) acquired 100% of the membership interests in Manager Sub for an aggregate cash purchase price of $40,000,000, subject to certain adjustments, or the Purchase Price, and (ii) redeemed the Former Advisor’s limited partner interest (including special limited partner interest) in the Operating Partnership. The Purchase Price was paid as follows, subject to certain acceleration provisions: (i) $25,000,000 was paid at the Closing, (ii) $7,500,000 was due and payable on March 31, 2021, and was paid on March 30, 2021, and (iii) $7,500,000 was due and payable on March 31, 2022, and was paid on July 27, 2021, as a result of the Data Center Sale, which is considered an acceleration condition as outlined in the Purchase and Sale Agreement filed as Exhibit 10.1 to the Company's Current Report on Form 8-K/A, filed on July 23, 2021, and incorporated herein by reference. The Purchase Price was recorded at fair value, net of amortization of discount in accounts payable and other liabilities in the accompanying condensed consolidated balance sheets.

Allocation of Purchase Price

The Internalization Transaction was accounted for as a business combination and the following table summarizes management’s allocation of the fair value of the Internalization Transaction as of September 30, 2020 (amounts in thousands):


	Total
Goodwill	$	39,529
Right-of-use assets - operating lease	1,205
Total assets acquired	40,734
Operating lease liabilities	(1,060)
Deferred internalization transaction purchase price	(14,674)
Total liabilities acquired	(15,734)
Net assets allocated at acquisition	$	25,000

Pro Forma Financial Information (Unaudited)

Assuming the Internalization Transaction had occurred on January 1, 2020, pro forma revenues and net income attributable to common stockholders would have been as follows for the periods presented below (amounts in thousands, except per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Pro forma basis:
Revenues	$	43,747	$	41,731	$	86,169	$	83,157
(Loss) income from continuing operations	(151)		8,460		(5,120)		10,764
Income from discontinued operations	16,305		6,772		24,253		13,755
Net income attributable to common stockholders	$	16,154	$	15,232	$	19,133	$	24,519
Net income (loss) per common share attributable to common stockholders:
Basic:
Continuing operations	$	—	$	0.04	$	(0.02)	$	0.05
Discontinued operations	0.07		0.03		0.11		0.06
Net income attributable to common stockholders	$	0.07	$	0.07	$	0.09	$	0.11
Diluted:
Continuing operations	$	—	$	0.04	$	(0.02)	$	0.05
Discontinued operations	0.07		0.03		0.11		0.06
Net income attributable to common stockholders	$	0.07	$	0.07	$	0.09	$	0.11

The condensed pro forma financial statements for the three and six months ended June 30, 2021 and 2020 include pro forma adjustments related to the Internalization Transaction during 2020 and 2021. The pro forma information for the three and six months ended June 30, 2020, was adjusted to exclude approximately $911,000 and $1,405,000 of internalization transaction expenses. Internalization transaction expenses consist primarily of legal fees, as well as fees for other professional and financial advisors. The pro forma information may not be indicative of what actual results of operations would have been had the transaction occurred at the beginning of 2020, nor is it necessarily indicative of future operating results.

Acquisitions

6 Months Ended

Jun. 30, 2021

Real Estate [Abstract]

Acquisitions

2021 Real Estate Property Acquisition

During the six months ended June 30, 2021, the Company purchased one real estate property, or the 2021 Acquisition, which was determined to be an asset acquisition. Upon the completion of the 2021 Acquisition, the Company allocated the purchase price of the real estate property to acquired tangible assets, consisting of land and building and improvements, acquired intangible assets, consisting of an in-place lease, and acquired intangible liabilities, consisting of a below-market lease, based on the relative fair value method of allocating all accumulated costs.

The following table summarizes the consideration transferred for the 2021 Acquisition during the six months ended June 30, 2021:

Property Description

Date Acquired

Ownership Percentage

Purchase Price
(amount in thousands)

Greenwood Healthcare Facility

04/19/2021

100%

$

25,048

The following table summarizes the Company's purchase price allocation of the 2021 Acquisition during the six months ended June 30, 2021 (amounts in thousands):


	Total
Land	$	1,603
Buildings and improvements	22,588
In-place leases	2,411
Total assets acquired	26,602
Below-market leases	(1,554)
Total liabilities acquired	(1,554)
Net assets acquired	$	25,048

Acquisition costs associated with transactions determined to be asset acquisitions are capitalized. The Company capitalized acquisition costs of approximately $48,000 related to the 2021 Acquisition, which are included in the Company's allocation of the real estate acquisition presented above. The total amount of all acquisition costs is limited to 6.0% of the contract purchase price of a property, unless the Board determines a higher transaction fee to be commercially competitive, fair and reasonable to the Company. The contract purchase price is the amount actually paid or allocated in respect of the purchase, development, construction or improvement of a property exclusive of acquisition costs. During the six months ended June 30, 2021, acquisition costs did not exceed 6.0% of the contract purchase price of the 2021 Acquisition during such period.

Acquired Intangible Assets, Net

6 Months Ended

Jun. 30, 2021

Finite-Lived Intangible Assets, Net [Abstract]

Acquired Intangible Assets, Net

Acquired intangible assets, net, excluding assets held for sale, consisted of the following as of June 30, 2021 and December 31, 2020 (amounts in thousands, except weighted average remaining life amounts):


	June 30, 2021		December 31, 2020
In-place leases, net of accumulated amortization of $56,506 and $47,312, respectively (with a weighted average remaining life of 10.1 years and 10.5 years, respectively)	$	173,601	$	182,340
Above-market leases, net of accumulated amortization of $3,521 and $2,554, respectively (with a weighted average remaining life of 9.4 years and 9.9 years, respectively)	14,594		15,561
	$	188,195	$	197,901

The aggregate weighted average remaining life of the acquired intangible assets was 10.0 years and 10.5 years as of June 30, 2021 and December 31, 2020, respectively.

Amortization of the acquired intangible assets was $5,499,000 and $5,493,000 for the three months ended June 30, 2021 and 2020, respectively, and $12,117,000 and $12,887,000 for the six months ended June 30, 2021 and 2020, respectively. Of the $12,117,000 recorded for the six months ended June 30, 2021, $1,120,000 was attributable to accelerated amortization due to the impairment of one in-place lease intangible asset. Of the $12,887,000 recorded for the six months ended June 30, 2020, $1,828,000 was attributable to accelerated amortization due to the impairment of one in-place lease intangible asset and one above-market lease intangible asset. Amortization of the in-place leases is included in depreciation and amortization and amortization of above-market leases is recorded as an adjustment to rental revenue in the accompanying condensed consolidated statements of comprehensive income (loss).

Acquired Intangible Liabilities, Net

6 Months Ended

Jun. 30, 2021

Intangible Lease Liabilities, Net [Abstract]

Acquired Intangible Liabilities, Net

Acquired intangible liabilities, net, excluding liabilities held for sale, consisted of the following as of June 30, 2021 and December 31, 2020 (amounts in thousands, except weighted average remaining life amounts):


	June 30, 2021		December 31, 2020
Below-market leases, net of accumulated amortization of $3,763 and $3,122, respectively (with a weighted average remaining life of 9.9 years and 10.1 years, respectively)	$	12,884	$	11,971

Amortization of the below-market leases was $333,000 and $300,000 for three months ended June 30, 2021 and 2020, respectively, and $641,000 and $600,000 for the six months ended June 30, 2021 and 2020, respectively. Amortization of below-market leases is recorded as an adjustment to rental revenue in the accompanying condensed consolidated statements of comprehensive income (loss).

Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

Lessor

Rental Revenue

The Company’s real estate properties are leased to tenants under operating leases with varying terms. Typically, the leases have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate properties leased to tenants.

Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of June 30, 2021, excluding properties classified as discontinued operations, for the six months ending December 31, 2021, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):


Year	Amount
Six months ending December 31, 2021	$	75,378
2022	155,352
2023	157,855
2024	157,861
2025	153,721
Thereafter	1,058,581
Total (1) (2)	$	1,758,748

(1)The total future rent amount of $1,758,748,000 includes approximately $16,313,000 in rent to be received in connection with one lease executed as of June 30, 2021, at one development property with an estimated lease commencement date of February 1, 2022.

(2)The total future rent amount of $1,758,748,000 excludes approximately $774,327,000 in rent to be derived from data center properties placed in discontinued operations as of June 30, 2021. All activities related to the Company's 29 data center properties previously reported as a part of the data centers segment have been classified as discontinued operations. On July 22, 2021, the Company completed the Data Center Sale. See Note 18—"Subsequent Events" for additional information.

Lessee

The Company has entered into various non-cancellable operating lease agreements for 17 ground leases, including two ground leases attributable to the data center properties and classified as discontinued operations, and one office lease related to the Company’s principal executive office in Tampa, Florida, or the Corporate Lease. Of the 17 ground operating leases entered into, four do not have corresponding operating lease liabilities because the Company did not have future payment obligations at the acquisition of these leases.

The Company has one non-cancellable ground lease agreement classified as a finance lease, as defined in ASC 842, Leases, related to a healthcare property. Ground lease expenses for finance lease payments are recognized as amortization expense of the ROU asset - finance lease and interest expense on the finance lease liability over the lease term.

The Company's operating and finance leases do not provide an implicit interest rate. In order to calculate the present value of the remaining operating and finance lease payments, the Company used incremental borrowing rates, or IBRs, adjusted for a number of factors. The determination of an appropriate IBR involves multiple inputs and judgments. The Company determined its IBRs considering the general economic environment, the Company's credit rating and various financing and asset specific adjustments to ensure the IBRs are appropriate for the intended use of the underlying operating or finance lease.

As of June 30, 2021, the Company's IBRs for its operating leases attributable to continuing operations were between 3.5% and 6.4%, with a weighted average IBR of 5.5%. The weighted average remaining lease term for the Company's operating leases attributable to continuing operations was 37.5 years and 38.0 years as of June 30, 2021 and December 31, 2020, respectively.

As of June 30, 2021, the Company's IBRs for its two operating ground leases attributable to the data center properties and classified as discontinued operations were 5.6% and 6.6%, respectively, with a weighted average IBR of 6.5%. The weighted average remaining lease term for the two operating ground leases attributable to the data center properties and classified as discontinued operations was 78.2 years and 78.7 years as of June 30, 2021 and December 31, 2020, respectively.

As of June 30, 2021, the Company's IBR for its finance lease was 5.3%. The remaining lease term for the Company's

finance lease was 42.9 years and 43.4 years as of June 30, 2021 and December 31, 2020, respectively.

The future rent payments, discounted by the Company's incremental borrowing rates, under non-cancellable leases, as of June 30, 2021, for the six months ending December 31, 2021, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):


Year	Operating			Finance
Six months ending December 31, 2021	$	1,015		$	68
2022	1,240			136
2023	1,196			136
2024	1,245			141
2025	1,246			143
Thereafter	66,354			6,584
Total undiscounted rental payments	72,296			7,208
Less imputed interest	(48,737)			(4,574)
Total lease liabilities	$	23,559	(1)	$	2,634

(1)The total operating leases liabilities of $23,559,000 excludes operating leases liabilities of $8,157,000 related to two operating ground leases attributable to the data center properties and classified as held for sale. On July 22, 2021, the Company completed the Data Center Sale. See Note 18—"Subsequent Events" for additional information.

The following table provides details of the Company's total lease costs and reimbursements for the three and six months ended June 30, 2021 and 2020 (amounts in thousands):


		Three Months Ended June 30,				Six Months Ended June 30,
	Location in Condensed Consolidated Statements of Comprehensive Income (Loss)	2021		2020		2021		2020
Operating lease costs:
Ground lease costs	Rental expenses	$	422	$	422	$	844	$	844
Ground lease reimbursements (1)	Rental revenue	298		298		596		595
Ground lease costs (2)	Income from discontinued operations	169		220		389		440
Ground lease reimbursements (1),(2)	Income from discontinued operations	103		103		206		206
Corporate lease costs	General and administrative expenses	264		—		528		—
Finance lease costs:
Amortization of right-of-use asset	Depreciation and amortization	$	4	$	—	$	9	$	—
Interest on lease liability	Interest and other expense, net	29		—		67		—

(1)The Company was reimbursed by tenants who sublease the ground leases.

(2)Amounts relate to lease costs and reimbursements attributable to two operating ground leases related to the Data Center Sale and classified as discontinued operations.

Leases

Lessor

Rental Revenue

The Company’s real estate properties are leased to tenants under operating leases with varying terms. Typically, the leases have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate properties leased to tenants.

Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of June 30, 2021, excluding properties classified as discontinued operations, for the six months ending December 31, 2021, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):


Year	Amount
Six months ending December 31, 2021	$	75,378
2022	155,352
2023	157,855
2024	157,861
2025	153,721
Thereafter	1,058,581
Total (1) (2)	$	1,758,748