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Community Healthcare Trust(CHCT) - 2025 Q2 - Earnings Call Transcript
2025-07-30 15:00
Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $29.1 million, but excluding a $1.7 million reversal of interest receivable, total revenues would have been approximately $30.7 million, representing a 2.2% growth quarter over quarter compared to $30.1 million in Q1 2025 [14][15] - Funds from operations (FFO) on a diluted common share basis was $0.23, reduced by $0.28 due to one-time items, while adjusted funds from operations (AFFO) totaled $13.6 million, or $0.50 per diluted common share, also reduced by $0.06 from one-time items [15] Business Line Data and Key Metrics Changes - The occupancy rate slightly decreased from 90.9% to 90.7% during the quarter, although there was good leasing activity in the portfolio [8] - The company received $260,000 from the geriatric behavioral hospital tenant during the quarter, compared to $165,000 in the prior quarter [8] Market Data and Key Metrics Changes - The company acquired an inpatient rehabilitation facility for $26.5 million with an anticipated annual return of approximately 9.4% [10] - Six properties are under definitive purchase and sale agreements for an aggregate expected investment of $146 million, with expected returns ranging from 9.1% to 9.75% [10] Company Strategy and Development Direction - The company is focused on capital recycling opportunities to fund near-term acquisitions without over-leveraging the balance sheet [11][50] - The management is optimistic about the acquisition pipeline and is committed to closing these transactions while maintaining modest leverage levels [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing negotiations with the buyer of the geriatric behavioral hospital tenant, highlighting the buyer's experience and resources [21][44] - The company anticipates being able to increase occupancy by 100 basis points or more into 2026, driven by a focus on improving core portfolio performance [53] Other Important Information - The company declared a dividend of $47.25 per common share for Q2 2025, equating to an annualized dividend of $1.89 per share [12] - The company recorded a $1.7 million reversal of interest receivables and an $8.7 million credit loss reserve related to the geriatric behavioral hospital tenant [13] Q&A Session Summary Question: Was the recent acquisition part of the 100 pipeline? - Yes, it accounted for the reduction from seven assets to six [18] Question: How will the remaining 25% acquisition be funded? - The company is focused on capital recycling rather than relying solely on the revolver [19][20] Question: Are there plans for other options with the geriatric facilities? - The company is committed to ensuring the transaction closes and has other interested bidders if needed [21][23] Question: Will there be significant capital needed for deferred maintenance? - Any required work on the buildings is expected to be relatively minor [26] Question: What is the expected run rate for G&A expenses? - The adjusted G&A expense, excluding one-time charges, was $4.7 million, which may serve as a good run rate [27] Question: What is the leverage metric being monitored? - The company is comfortable with current leverage levels and plans to maintain them while managing acquisitions [31] Question: How are the remaining notes receivable performing? - The two remaining notes are in good standing, and the watch list remains consistent with no new top tenants added [38][39] Question: What is the status of the new operator for the geriatric facilities? - The operator has significant experience and resources, and lease terms are still under negotiation [44][46] Question: What is the expected cap rate for dispositions compared to acquisition yields? - Expected cap rates for dispositions are in the 7.5% to 8% range [51] Question: What is the expectation for core occupancy in the coming quarters? - The company aims to increase occupancy by 100 basis points or more into 2026 [53]
Community Healthcare Trust(CHCT) - 2025 Q2 - Earnings Call Presentation
2025-07-30 14:00
Company Overview - Community Healthcare Trust (CHCT) has a market capitalization of $471.8 million and an enterprise value of $967.0 million as of June 30, 2025[3] - CHCT has achieved a total shareholder return of 46% since its inception[4] - The company owns 200 properties with 314 tenants across 36 states[4] Financial Performance & Growth - CHCT has experienced consistent dividend growth for 40 consecutive quarters[4] - Total asset growth has reached 576% since 2015[15] - The company surpassed $1 billion in total gross real estate properties by July 2023[10] Investment Strategy & Portfolio - CHCT focuses on acquiring smaller, off-market or lightly marketed transactions[8] - The company's investment policy requires portfolio diversification by geography, industry segment, and tenant[7] - As of June 30, 2025, the portfolio was leased to approximately 314 separate tenants, with the top 2 tenants accounting for 16.3% of annualized rent[26] Healthcare Industry & Market - Healthcare spending accounted for 18.3% of the US GDP in 2021 and is projected to reach $7.2 trillion by 2031, representing 19.7% of GDP[45] - The U.S 65+ age group is growing rapidly, representing approximately 21% of the entire population by 2030[45] Balance Sheet & Governance - CHCT maintains a conservative balance sheet with a financing policy that limits debt to total capitalization to 40% except for short-term, transitory periods[7] - The company has strong corporate governance with independent members of the Board of Directors[38]
Community Healthcare Trust(CHCT) - 2025 Q2 - Quarterly Results
2025-07-29 20:55
SUPPLEMENTAL INFORMATION Q2 2025 Community Healthcare Trust 2Q 2025 | Supplemental Information Exhibit 99.2 CHCT LISTED NYSE ABOUT US CHCT is a self-managed healthcare real estate investment trust ("REIT") that owns a diverse portfolio of properties including medical office buildings, acute inpatient behavioral facilities, inpatient rehabilitation facilities, physician clinics, specialty centers, behavioral specialty facilities, and surgical centers and hospitals across the United States, primarily outside ...
Community Healthcare Trust(CHCT) - 2025 Q2 - Quarterly Report
2025-07-29 20:55
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file number: 001-37401 Community Healthcare Trust Incorporated (Exact Name of Registrant as Specified in Its Charter) Maryland 46-5212033 | Title ...
Community Healthcare Trust Announces Results for the Three Months Ended June 30, 2025
Prnewswire· 2025-07-29 20:30
FRANKLIN, Tenn., July 29, 2025 /PRNewswire/ -- Community Healthcare Trust Incorporated (NYSE: CHCT) (the "Company") today announced results for the three months ended June 30, 2025. The Company reported a net loss for the three months ended June 30, 2025 of approximately $12.6 million, or $0.50 per diluted common share. Funds from operations ("FFO") and adjusted funds from operations ("AFFO") for the three months ended June 30, 2025 totaled $0.23 and $0.50, respectively, per diluted common share.Items Impac ...
Community Healthcare Trust Announces Second Quarter Earnings Release Date And Conference Call
Prnewswire· 2025-07-01 21:40
Company Overview - Community Healthcare Trust Incorporated is a real estate investment trust focusing on owning income-producing real estate properties primarily associated with outpatient healthcare services across the United States [3] - As of March 31, 2025, the company had approximately $1.2 billion in investments across 201 real estate properties, totaling around 4.5 million square feet, located in 36 states [3] Upcoming Events - The company will report its second-quarter results for 2025 on July 29, 2025, after market close [1] - A conference call to discuss the earnings results, quarterly activities, and industry trends will be held on July 30, 2025, at 9:00 a.m. Central Time, with a simultaneous webcast available [2]
Community Healthcare Trust Releases 2024 Corporate Sustainability Report
Prnewswire· 2025-06-11 22:09
Core Insights - Community Healthcare Trust Incorporated has released its second Corporate Sustainability Report, showcasing progress and sustainability initiatives from 2024, aligned with the Global Reporting Framework Initiative (GRI) [1][2] - The report emphasizes the company's commitment to reducing environmental impact and enhancing accountability, reflecting a dedication to transparency and continuous improvement [2] Company Overview - Community Healthcare Trust Incorporated is a real estate investment trust (REIT) that focuses on owning income-producing real estate properties primarily associated with outpatient healthcare services across targeted sub-markets in the United States [3] Sustainability Initiatives - The company has implemented various sustainability initiatives in its corporate office and real estate portfolio, focusing on environmental performance and progress towards 2030 environmental targets [5] - Climate risk and resiliency policies have been established to identify and manage climate risks, alongside employee, tenant, and community engagement programs [5] - Governance practices are in place to ensure transparency, accountability, and ethical conduct within the organization [5]
Community Healthcare Trust Incorporated Announces Key Leadership Change
Prnewswire· 2025-05-06 20:30
Core Viewpoint - Community Healthcare Trust Incorporated announced a leadership change to enhance operational momentum and focus on portfolio leasing, management, and investment with Mark E. Kearns appointed as Senior Vice President of Asset Management, succeeding Timothy L. Meyer [1][2] Group 1: Leadership Change - Mark E. Kearns will join the Company on May 12, 2025, while Timothy L. Meyer will assist with the transition until May 31, 2025 [1] - David H. Dupuy, the CEO, expressed gratitude for Tim Meyer's service and welcomed Mark Kearns, highlighting his extensive experience in healthcare real estate [2] Group 2: Mark E. Kearns' Background - Mark Kearns has over 25 years of experience in healthcare real estate, including roles in leasing and managing medical outpatient properties [2] - Prior to joining Community Healthcare Trust, Kearns served as Vice President of Leasing at Welltower and held senior positions at Healthpeak [2] Group 3: Company Overview - Community Healthcare Trust Incorporated is a real estate investment trust focused on owning income-producing properties primarily related to outpatient healthcare services across the United States [3]
Community Healthcare Trust: Evaluating Upside Potential For A Strategic Buyer
Seeking Alpha· 2025-05-04 01:54
Group 1 - The company has a long-standing interest in investing, particularly in REITs, preferred stocks, and high-yield bonds, which began in 2011 [1] - Recently, the investment strategy has evolved to include a combination of long stock positions with covered calls and cash secured puts, focusing on a fundamental long-term perspective [1] - The company primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1] Group 2 - The company holds a beneficial long position in the shares of CHCT through stock ownership, options, or other derivatives [2] - The article expresses the company's own opinions and is not compensated for it, indicating an independent analysis [2]
Community Healthcare Trust(CHCT) - 2025 Q1 - Earnings Call Transcript
2025-04-30 15:02
Financial Data and Key Metrics Changes - Total revenue increased from $29.3 million in Q1 2024 to $30.1 million in Q1 2025, representing a 2.5% year-over-year growth [12] - Quarter-over-quarter, total revenue grew by 2.7% from $29.3 million in Q4 2024 to $30.1 million in Q1 2025 [13] - Funds from operations (FFO) decreased slightly by $77,000 quarter-over-quarter, remaining at $12.7 million in Q1 2025 [14] - Adjusted funds from operations (AFFO) totaled $14.7 million in Q1 2025, approximately $100,000 higher than Q4 2024, with a per diluted common share basis remaining at $0.55 [14] Business Line Data and Key Metrics Changes - Occupancy and weighted average remaining lease term remained flat at 90.9% and 6.7 years, respectively [6] - The company acquired a behavioral residential treatment facility for approximately $9.7 million, with anticipated tenant improvements of $1.4 million [7] - The company signed definitive purchase and sale agreements for seven properties with an expected investment of $169.5 million, with expected returns ranging from 9.1% to 9.75% [8] Market Data and Key Metrics Changes - The company sold a building in Ohio for approximately $400,000, receiving net proceeds of approximately $600,000 [9] - The geriatric psychiatric hospital operator, a tenant in six properties, represents an annual base rent of $3.2 million, with incremental operating improvements noted [9] Company Strategy and Development Direction - The company continues to be selective in acquisitions and is evaluating capital recycling opportunities to fund near-term acquisitions [10][22] - The company aims to maintain modest leverage levels while exploring various capital options, including potential asset sales and draws on the revolver [10][22] - The company has a solid pipeline of acquisitions expected to close over the next three years, totaling approximately $169 million [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of tenants and the overall health care sector, indicating no immediate negative impacts from macroeconomic factors [44] - The company is actively monitoring the geriatric psychiatric hospital operator's sale process and expects more clarity by the end of Q2 or early Q3 [19][40] - Management remains cautious about raising equity at current share prices and is focused on selected capital recycling [22][25] Other Important Information - The company declared a dividend of $0.47 per common share for Q1 2025, marking a continuous increase since its IPO [10] - The company is not currently issuing shares under its ATM program due to low share prices [10] Q&A Session Summary Question: Update on the geriatric psychiatric hospital operator's sale process - Management indicated that the operator is in an active sale process with potential buyers, and more clarity is expected by the end of Q2 or early Q3 [18][19] Question: Acquisition outlook and capital allocation - Management confirmed a healthy pipeline of acquisitions but noted a cautious approach to raising equity at current prices, focusing on selected asset sales and revolver draws [20][22] Question: Concerns about smaller tenants - Management reported stability among tenants and no significant issues arising in Q1, with a positive macro outlook for health care providers [44] Question: Conditions for the $169 million pipeline - Management clarified that the pipeline is solid and expected to close over three years, with flexibility in decision-making based on project evaluations [49] Question: Position of notes in the event of asset sales by the psychiatric operator - Management explained the company's second lien position on accounts receivable and first lien on other assets, indicating a structured approach to creditor relationships [51]