Finexus Returns & Risk Profile
2026-06-07

A Low‑Beta Shield Riding the Current High‑Vol Bull Run

Why Sila Realty Trust’s defensive profile may capture upside while limiting downside
SILA Sila Realty Trust, Inc.
In this report
01
Returns Overview
Period returns, alpha, cumulative performance, distributions
P. 2-3
→
02
Volatility Analysis
Annualized volatility, downside deviation, drawdowns
P. 4-5
→
03
Beta & Correlation
Trailing, upside, downside beta, systematic risk
P. 6-7
→
04
Risk-Adjusted Returns
Sharpe, Sortino, Calmar, Information, Treynor
P. 8-9
→
05
Market Regime Analysis
Bull/bear behavior, capture ratios
P. 10-11
→
06
Investment Highlights & Risk Summary
Executive summary, risk flags, rankings
P. 12-13
→
For informational purposes only — not investment advice. See full disclaimer at end.
Returns Overview
Sila Realty Trust, Inc. (SILA) — Return Performance
Sila Realty Trust delivered strong absolute returns across all observed horizons, posting a 29.88% gain over the past year and a 54.97% increase over the two‑year period. Relative to its sector benchmark (XLRE), the stock generated positive alpha in every interval—most notably 14.65% of excess return over three months and 19.75% over two years—indicating it outperformed peers consistently, while the sector’s own performance was negative over one month (-1.58%) but turned positive thereafter.
Period Returns vs S&P 500 & XLRE
Monthly Returns Heatmap
SILA
The stock produced robust short‑term upside, achieving a 27.74% total return and 14.65% sector‑adjusted alpha over the last three months, signaling momentum that outpaced the real estate sector’s 18.27% sector‑adjusted gain. Over longer horizons, Sila’s 29.88% one‑year return and 19.75% sector‑adjusted alpha demonstrate sustained outperformance, while the two‑year total return of 54.97% with a 32.4% sector‑adjusted component underscores its ability to generate significant excess returns over extended periods.
Returns Overview
Sila Realty Trust, Inc. (SILA) — Return Charts
Volatility Analysis
Sila Realty Trust, Inc. (SILA) — Volatility Profile
Sila Realty Trust exhibits an annualized volatility of 26.72%, markedly higher than the S&P 500's benchmark level of 17.78%. This elevated dispersion indicates that the stock’s price swings are roughly 50% larger on a yearly basis, translating into greater uncertainty for investors relative to broad market exposure. While short‑term turbulence is evident—60‑day volatility sits at 41.18%, well above the long‑term average of 26.48%—the longer‑run 252‑day figure remains close to its historical level, suggesting that recent spikes are temporary rather than a structural shift in risk profile.
Volatility Metrics
SILA
The downside deviation of 16.34% signals that losses below the mean occur with a magnitude roughly one‑third lower than the total volatility, reflecting moderate asymmetry in risk. However, the maximum drawdown of -16.42%, recorded from April to December 2025 and recovered by February 2026, underscores a pronounced episode where the stock fell more than 16% over an eight‑month horizon before regaining its peak. The duration of this drawdown—approximately ten months—highlights that downside events can be prolonged, demanding patience from investors. Despite these concerns, the current 60‑day volatility is substantially higher than the 252‑day average, indicating a short‑term risk surge that has not yet altered the longer‑run risk baseline.
  • Sila Realty Trust's annualized volatility exceeds the S&P 500 by nearly 9 percentage points.
  • Short‑term (60‑day) volatility is 55% higher than its 252‑day average, pointing to temporary market stress.
  • Downside deviation of 16.34% suggests losses are less volatile than total price movements but still significant.
  • The maximum drawdown of -16.42% persisted for roughly ten months, indicating potential for extended downside periods.
Positive Characteristics
  • Long‑term (252‑day) volatility aligns closely with historical levels, implying that recent spikes may be transitory.
  • Downside deviation is lower than total volatility, reflecting a degree of risk asymmetry that can benefit investors during market rallies.
Volatility Analysis
Sila Realty Trust, Inc. (SILA) — Volatility & Drawdown Charts
Beta & Correlation
Sila Realty Trust, Inc. (SILA) — Beta Profile
Sila Realty Trust exhibits a trailing beta of 0.41 versus the S&P 500, placing it firmly in the defensive range (<0.8). This indicates that the stock moves less than half as much as the broad market on average, offering lower volatility during equity rallies and declines. However, its sector beta of 0.828 relative to the Real Estate index (XLRE) suggests a stronger linkage to industry dynamics, meaning that while overall market movements have limited impact, sector-specific trends drive a larger share of price variance. The asymmetric beta profile—upside beta of 0.448 versus downside beta of 0.577—reveals that Sila’s price is more responsive to market downturns than upswings, an important nuance for risk‑averse investors. A low R-squared of 0.064 and correlation of 0.253 with the S&P 500 underscore that only about 6% of its return variability is explained by broad market factors, highlighting substantial diversification benefits. The systematic component accounts for just 6.4% of total variance, while idiosyncratic risk dominates at 93.6%, confirming that company‑specific drivers are the primary source of price movement.
Beta & Correlation Metrics
SILA
The trailing market beta of 0.41 classifies Sila as defensive, implying muted reactions to general equity market swings and a potential hedge during periods of heightened volatility. Its sector beta of 0.828, however, indicates that real‑estate specific forces—such as REIT yield spreads and property market cycles—exert a more pronounced influence on the stock’s performance. The higher downside beta (0.577) relative to upside beta (0.448) signals greater sensitivity to negative market moves, which may amplify losses in bearish environments despite the overall defensive stance.
  • Trailing market beta of 0.41 places Sila in a defensive risk category.
  • Downside beta (0.577) exceeds upside beta (0.448), indicating asymmetric downside sensitivity.
  • R-squared of 6.4% with the S&P 500 shows limited exposure to broad market drivers and strong diversification potential.
  • Systematic risk comprises only 6.4% of total variance, while idiosyncratic risk dominates at 93.6%.
  • Sector beta (0.828) is higher than market beta, revealing that real‑estate sector dynamics are the primary source of systematic risk.
Positive Characteristics
  • Low overall market beta reduces portfolio volatility during equity market rallies.
  • High idiosyncratic component provides diversification benefits for investors seeking non‑correlated exposure.
  • Sector correlation of 0.497 suggests that Sila can capture upside from favorable real‑estate trends while limiting broader market drag.
Beta & Correlation
Sila Realty Trust, Inc. (SILA) — Rolling Beta
Positive Notes

Low overall market beta reduces portfolio volatility during equity market rallies.

High idiosyncratic component provides diversification benefits for investors seeking non‑correlated exposure.

Sector correlation of 0.497 suggests that Sila can capture upside from favorable real‑estate trends while limiting broader market drag.

Risk-Adjusted Returns
Sila Realty Trust, Inc. (SILA) — Risk-Adjusted Performance
Sila Realty Trust, Inc. (SILA) delivers a modest risk-adjusted return profile when measured against standard benchmarks. The Sharpe ratio of 0.696 falls below the “good” threshold of 1.0, indicating that total risk‑adjusted excess returns are limited relative to the risk-free rate of 3.63%. However, the Sortino ratio of 1.138 exceeds the Sharpe figure, suggesting that the fund’s downside volatility is lower than its overall volatility and that investors have been compensated more favorably for adverse price movements. The Calmar ratio of 1.354 reflects a reasonable return relative to the worst historical drawdown, while an Information Ratio of 0.19 signals modest but consistent alpha generation, albeit below the strong‑alpha benchmark of 0.5.
Risk-free rate: 3.63% (Fed Funds Rate)
Risk-Adjusted Metrics
SILA
SILA’s risk-adjusted performance ranks first among its peer set simply because it is the sole entity evaluated; nevertheless, its metrics reveal a balanced but not outstanding profile. The Sharpe ratio of 0.696 signals that total volatility erodes much of the excess return over the risk‑free rate, whereas the higher Sortino ratio (1.138) indicates that downside risk has been better managed than upside volatility, which is a positive for investors concerned with loss aversion. The Calmar ratio of 1.354 suggests that the fund’s cumulative returns have outpaced its peak-to-trough drawdown, implying resilience during market stress, and the Information Ratio of 0.19 points to modest skill in generating alpha relative to a benchmark.
  • Sharpe ratio below 1.0 indicates limited total risk‑adjusted excess return.
  • Sortino ratio exceeds Sharpe, highlighting a favorable downside risk profile.
  • Calmar ratio above 1.0 reflects returns that have outpaced the worst historical drawdown.
  • Information Ratio of 0.19 shows modest but consistent alpha generation.
  • Treynor ratio of 45.405 suggests high return per unit of systematic (beta) risk, though it is not directly comparable to other ratios.
Positive Characteristics
  • Higher Sortino than Sharpe demonstrates effective downside volatility management.
  • Calmar ratio above unity indicates resilience against severe drawdowns.
  • Treynor ratio reflects strong compensation for market exposure.
Risk-Adjusted Returns
Sila Realty Trust, Inc. (SILA) — Rolling Sharpe & Sortino
Positive Notes

Higher Sortino than Sharpe demonstrates effective downside volatility management.

Calmar ratio above unity indicates resilience against severe drawdowns.

Treynor ratio reflects strong compensation for market exposure.

Market Regime Analysis
Sila Realty Trust, Inc. (SILA) — Regime Behavior
Sila Realty Trust demonstrates a pronounced sensitivity to market volatility within an overall bullish environment. In the Bull‑LowVol regime, the REIT delivers modest returns of 1.2% per month, reflecting steady but limited upside when the broader market is calm. Conversely, during Bull‑HighVol periods—characterized by elevated S&P 500 volatility—the same stock accelerates to a robust 3.72% monthly average, indicating strong participation in risk‑on rallies. In bear markets the trust’s performance contracts sharply; it has no recorded history in Bear‑LowVol conditions and generates only 0.23% per month in Bear‑HighVol episodes, underscoring limited defensive qualities. The upside capture of 111.7% versus a downside capture of 39.3% yields an overall capture ratio of 2.84, meaning the stock captures nearly three times more upside than downside, a favorable risk‑return profile for investors seeking growth in volatile uptrends while limiting losses in downturns.
Current Market Regime: Bull-HighVol
Bull-LowVol = calm uptrend • Bull-HighVol = volatile uptrend • Bear-LowVol = orderly decline • Bear-HighVol = crisis
Regime Returns & Capture Ratios
SILA
During Bull‑LowVol periods, SILA’s modest 1.2% monthly return suggests it trails the broader market’s smoother gains, likely due to its sector’s reliance on higher leverage and interest‑rate sensitivity. In contrast, the Bull‑HighVol regime propels the REIT to a 3.72% average gain, reflecting an ability to capitalize on heightened investor risk appetite and potentially rising property valuations in a buoyant economy. The absence of performance data in Bear‑LowVol markets limits insight into its defensive stance under orderly declines, while the 0.23% return in Bear‑HighVol months signals that even amid sharp market stress, SILA can preserve modest upside but does not act as a true safe haven.
Market Regime Analysis
Sila Realty Trust, Inc. (SILA) — Regime & Capture Charts
Regime Timeline
  • SILA’s upside capture of 111.7% indicates it outperforms the S&P 500 during rising markets.
  • Downside capture of 39.3% shows limited loss exposure when markets fall, enhancing its defensive profile.
  • The capture ratio of 2.84 (>1.0) confirms the stock captures significantly more upside than downside.
  • Performance spikes in Bull‑HighVol regimes (3.72% avg.) suggest the REIT thrives on market volatility.
  • Minimal returns in Bear‑HighVol periods (0.23% avg.) reveal limited defensive strength during crises.
Positive Characteristics
  • Strong upside capture paired with low downside capture delivers an attractive risk‑adjusted return.
  • The high capture ratio underscores the stock’s ability to magnify market gains while dampening losses.
Investment Highlights & Risk Summary
Sila Realty Trust, Inc. (SILA) — Summary & Implications
Sila Realty Trust delivered a 29.9% total return over the past year, generating an alpha of 10.9% versus the S&P 500 and outpacing its real‑estate sector index (XLRE) by 19.9%. The stock’s low beta of 0.41 indicates limited sensitivity to broad market moves, while an upside capture of 111.7% combined with a downside capture of only 39.3% reflects asymmetric performance that has protected capital in down markets. Risk metrics are mixed: the Sharpe ratio of 0.70 is modest, suggesting the excess return per unit of total risk is below the typical benchmark of 1.0, yet the Sortino ratio of 1.14 signals strong returns relative to downside volatility. Investors should weigh the attractive absolute and sector‑adjusted returns against the elevated annualized volatility of 26.7% and a max drawdown of –16.4%, while noting that the sole risk flag—low beta—may limit upside potential in a strongly rising market.
Summary Dashboard
Investment Highlights
  • 1Y total return of 29.9% generated an alpha of 10.9% versus the S&P 500, indicating strong absolute performance.
  • Sector outperformance of 19.9% against XLRE demonstrates the business’s ability to beat peer REITs.
  • Upside capture of 111.7% with downside capture of only 39.3% yields a capture ratio of 2.84, highlighting asymmetric upside potential and downside protection.
  • Low beta of 0.41 reduces market‑related volatility, making the stock less correlated to equity cycles.
  • Sortino ratio of 1.14 exceeds the Sharpe, indicating that returns are generated primarily from favorable downside risk management.
Risk-Return Rankings
SILA MODERATE
Strong return and sector outperformance with low market sensitivity but elevated volatility.
Strength: High upside capture (111.7%) with low downside capture (39.3%).
Concern: Annualized volatility of 26.7% and max drawdown of –16.4%.
Key Takeaways
  • Sila Realty Trust has delivered superior absolute and sector‑adjusted returns over the past year.
  • The low beta reduces systematic risk, but the stock remains volatile on an absolute basis.
  • Asymmetric capture metrics suggest the stock can add upside while limiting losses in market downturns.
  • Sharpe below 1.0 signals that excess return per unit of total risk is modest; investors should consider this when allocating to higher‑risk assets.
  • The single risk flag (low beta) may constrain upside in a strongly bullish equity environment.
PORTFOLIO IMPLICATIONS
Given its low beta and strong upside capture, Sila Realty can serve as a defensive real‑estate exposure that adds return potential without amplifying overall portfolio volatility. It pairs well with higher‑beta equities to smooth returns during market corrections, while investors seeking pure growth may need complementary assets with higher systematic risk to offset the modest Sharpe ratio.
SILA
Related Reports
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Macroeconomic Context (Slides) Rising Rates Test the Resilience of Sila Realty’s Portfolio 2026-06-07 Valuation Analysis (Slides) DCF Says Sky‑High Upside While Analysts See a Discounted Reality 2026-06-07
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Report written 2026-06-07 • Finexus
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Disclaimer

This report is generated by Finexus and is provided for informational purposes only. It does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any security.

The analysis is based on publicly available data from sources believed to be reliable, but Finexus does not guarantee its accuracy, completeness, or timeliness. Valuation estimates, projections, and any forward-looking statements are model outputs based on historical data and assumptions that may not hold in the future.

Past performance is not indicative of future results. Readers should conduct their own independent research and consult a qualified financial advisor before making any investment decision. Finexus and its contributors disclaim any liability for losses arising from the use of this report.

Created 2026-06-07 · finexus.net

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