Core Insights - Community Healthcare Trust (CHCT) reported quarterly funds from operations (FFO) of $0.56 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, and showing a slight increase from $0.55 per share a year ago [1] - The company achieved revenues of $31.09 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.96% and up from $29.64 million year-over-year [2] - The stock has underperformed, losing approximately 24.5% since the beginning of the year, while the S&P 500 has gained 16.9% [3] Financial Performance - The FFO surprise for the recent quarter was +3.70%, following a previous quarter where the actual FFO was $0.50, missing the estimate of $0.54 by -7.41% [1][2] - Over the last four quarters, the company has surpassed consensus FFO estimates three times and revenue estimates two times [2] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.55 on revenues of $31.2 million, and for the current fiscal year, it is $2.14 on revenues of $121.17 million [7] - The estimate revisions trend for Community Healthcare Trust was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The REIT and Equity Trust - Other industry is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Total revenues for Q3 2025 were $31,086,000, an increase of 6.9% compared to Q2 2025[14] - Net income for Q3 2025 was $1,640,000, recovering from a net loss of $12,557,000 in Q2 2025[14] - Net operating income (NOI) for Q3 2025 reached $25,156,000, up from $23,500,000 in Q2 2025, reflecting a 7.1% increase[14] - Adjusted EBITDAre for Q3 2025 was $22,970,000, compared to $20,068,000 in Q2 2025, marking a 14.3% growth[14] - Rental income for Q3 2025 was $30,814,000, an increase of 2.3% from $30,128,000 in Q2 2025[24] - Funds from Operations (FFO) for Q3 2025 were $13,547,000, compared to $6,336,000 in Q2 2025, marking a 113.5% increase[26] - Adjusted Funds from Operations (AFFO) for Q3 2025 were $15,099,000, up from $13,585,000 in Q2 2025, reflecting an 11.1% growth[26] - The company recorded a loss of $888,000 on the sale and impairments of real estate assets in Q3 2025, compared to a gain of $640,000 in Q2 2025[26] Dividends and Shareholder Returns - The company reported a quarterly dividend of $0.4725 per share, resulting in a dividend yield of 12.35%[8] - The company declared a dividend of $0.4725 per common share for Q3 2025, slightly up from $0.4700 in Q2 2025[24] Debt and Capitalization - The debt to total capitalization ratio was 43.1% as of Q3 2025, up from 41.6% in Q2 2025[20] - Total debt as of September 30, 2025, amounted to $531,000 thousand, with a net debt of $530,138 thousand after accounting for deferred financing costs[42] - The leverage ratio stood at 43.8%, well below the required maximum of 60.0%[45] - The company maintains a minimum debt service coverage ratio of 3.2, exceeding the required minimum of 2.0[45] Property and Portfolio Management - The total real estate properties increased to $1,190,151,000 in Q3 2025 from $1,158,312,000 in Q2 2025[20] - The company has a weighted average remaining lease term of 6.7 years across its properties[8] - The portfolio was approximately 90.1% leased as of September 30, 2025, with lease expirations extending from 2025 to 2045[54] - The company acquired two properties in 2025, with a total purchase price of $36,004 thousand and both properties fully leased at 100%[46] Market Capitalization and Share Performance - The market capitalization was $435,613,000 as of Q3 2025, down from $471,766,000 in Q2 2025[20] - The average share price per share decreased from $19.08 in Q1 2025 to $15.66 in Q3 2025, a decline of approximately 17.0%[40] - The weighted average common shares outstanding increased to 27,195,000 in Q3 2025 from 27,011,000 in Q2 2025[26] Key Performance Metrics - The company emphasizes the importance of Adjusted Funds from Operations (AFFO) as a key performance metric, allowing for better comparison across periods and with other real estate companies[70] - The definition of Net Operating Income (NOI) is highlighted as a crucial measure of operating performance, excluding certain non-operational items[78] - The company utilizes the NAREIT definition of Funds from Operations (FFO) to provide a clearer picture of operating performance, excluding gains or losses from real estate sales[72] Future Outlook and Strategy - The company is focused on expanding its portfolio through acquisitions, which is reflected in the Adjusted AFFO metric[65] - Forward-looking statements indicate management's expectations regarding future performance and market conditions, emphasizing the inherent risks and uncertainties[84] Revenue Generation by Property Type - Approximately 51% of property revenues are generated from MSAs with populations over 1,000,000[56] - The annualized rent distribution by property type shows Medical Office Buildings (MOB) at 36.0% and Inpatient Rehabilitation Facilities (IRF) at 21.5%[48] Annualized Rent Details - The average annualized rent across the listed properties is approximately $1,000K[59][60] - The company is focusing on expanding its medical office buildings (MOB) and surgical centers (SC) in key metropolitan areas[59][60]

Core Insights - Community Healthcare Trust Incorporated reported a net income of approximately $1.6 million, or $0.03 per diluted common share, for the three months ended September 30, 2025 [1] - The company’s Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) for the same period were $0.50 and $0.56 per diluted common share, respectively [1] Financial Performance - Rental income for the third quarter of 2025 was $30.814 million, compared to $29.335 million for the same period in 2024, reflecting an increase [10] - Total revenues for the three months ended September 30, 2025, were $31.086 million, up from $29.639 million in 2024 [10] - The company reported total expenses of $21.490 million for the third quarter of 2025, slightly down from $21.848 million in 2024 [10] - Net income for the three months ended September 30, 2025, was $1.640 million, compared to $1.749 million in 2024 [10] Property Investments - As of September 30, 2025, the company had investments of approximately $1.2 billion in 200 real estate properties located in 36 states, totaling approximately 4.6 million square feet [3] - The company acquired an inpatient rehabilitation facility in Florida for approximately $26.5 million, which is 100% leased to a tenant with a lease expiration in 2040 and an expected return of approximately 9.4% [6] - The company has six properties under definitive purchase agreements, with an expected aggregate purchase price of approximately $146.0 million and expected returns of approximately 9.1% to 9.75% [6] Dividends and Shareholder Returns - The Board of Directors declared a quarterly common stock dividend of $0.4750 per share, payable on November 21, 2025, to stockholders of record on November 7, 2025 [6] Balance Sheet Highlights - As of September 30, 2025, total assets were approximately $987.261 million, with total liabilities of $560.438 million [8] - Stockholders' equity decreased to $426.823 million from $475.965 million as of December 31, 2024 [8]

Real Estate Acquisitions - The Company acquired two real estate properties totaling approximately 75,000 square feet for an aggregate purchase price of approximately $36.0 million during the first nine months of 2025 [103]. - The Company has six properties under definitive purchase agreements with an expected aggregate purchase price of approximately $146.0 million, anticipated to close throughout 2026 and 2027 [104]. - The Company has six properties under definitive purchase agreements with an expected aggregate purchase price of approximately $146.0 million, anticipated to close between Q4 2025 and 2027 [151]. Leasing and Rental Income - As of September 30, 2025, the real estate portfolio was approximately 90.1% leased, with 612,000 square feet of expiring or terminated leases and 562,000 square feet leased or renewed [106]. - Rental income increased approximately $5.1 million, or 5.9%, for the nine months ended September 30, 2025 compared to the same period in 2024 [119]. Expenses and Losses - General and administrative expenses increased approximately $6.1 million, or 42.6%, for the nine months ended September 30, 2025 compared to the same period in 2024 [121]. - Interest expense increased approximately $0.8 million, or 13.1%, for the three months ended September 30, 2025 compared to the same period in 2024 [117]. - The Company recorded additional reserves totaling approximately $8.7 million on notes and approximately $1.7 million on interest receivables related to a geriatric inpatient behavioral hospital tenant [110]. - The Company recognized a loss of approximately $0.2 million on the sale of a property in Pennsylvania during the third quarter of 2025 [105]. - Net loss for the nine months ended September 30, 2025, was approximately $9.3 million, compared to a net loss of $5.0 million for the same period in 2024 [132]. - Credit loss reserve recorded was $8.7 million for the nine months ended September 30, 2025, compared to $11.0 million for the same period in 2024 [123]. - Interest expense increased by approximately $2.7 million, or 15.7%, for the nine months ended September 30, 2025, primarily due to higher interest rates [124]. - The Company recorded severance and transition-related charges totaling approximately $5.9 million during the nine months ended September 30, 2025 [133]. Funds from Operations - Funds from Operations (FFO) for the nine months ended September 30, 2025, was $32.6 million, down from $38.5 million in 2024 [132]. - Adjusted Funds from Operations (AFFO) for the nine months ended September 30, 2025, was $43.4 million, compared to $44.6 million in 2024 [132]. - Net Operating Income (NOI) for the nine months ended September 30, 2025, was $72.6 million, an increase from $69.1 million in 2024 [138]. - The Company recognized a gain on the sale of real estate totaling approximately $1.3 million during the nine months ended September 30, 2025 [128]. Cash Flows and Dividends - Cash flows provided by operating activities for the nine months ended September 30, 2025, were approximately $40.9 million, down from $43.2 million in the same period of 2024, indicating a decrease of about 5.3% [158]. - Cash flows used in investing activities for the nine months ended September 30, 2025, were approximately $43.7 million, significantly lower than $83.2 million in the same period of 2024 [159]. - The Company declared a quarterly common stock dividend of $0.4750 per share on October 23, 2025, equating to an annualized dividend of $1.90 per share [164]. Tenant Improvements and Security Deposits - The Company expects to fund tenant improvements of up to approximately $29.9 million, with $7.7 million committed to ongoing redevelopment projects [152]. - As of September 30, 2025, the Company held approximately $2.6 million in security deposits for tenant lease obligations [163]. Interest and Inflation Impact - Inflation has significantly increased, impacting expenses, capital expenditures, and variable-rate borrowings, with the Federal Reserve lowering interest rates in 2024 and 2025 [112]. - The Company reversed interest totaling approximately $1.7 million for a geriatric behavioral hospital tenant during the nine months ended September 30, 2025 [143]. Quarterly Performance - For the three months ended September 30, 2025, the Company reported a net income of $1.64 million, compared to $1.75 million in the same period of 2024, reflecting a decrease of approximately 6.3% [143]. - Adjusted EBITDAre for the nine months ended September 30, 2025, was $64.63 million, an increase of 2.9% from $62.79 million in the same period of 2024 [143]. Credit Facility - The Company had $256.0 million outstanding on its Revolving Credit Facility as of September 30, 2025, with a remaining borrowing capacity of approximately $144.0 million [148].

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 June 30, 2025, the company had approximately $1.2 billion in investments across 200 real estate properties, totaling around 4.5 million square feet, located in 36 states [3]. Upcoming Events - The company will report its third-quarter results for 2025 on October 28, 2025, after market close [1]. - A conference call to discuss the earnings results, quarterly activities, and industry trends is scheduled for October 29, 2025, at 9:00 a.m. Central Time, with a simultaneous webcast available [2]. Conference Call Details - Domestic Dial-In Number: 1-888-347-1332 - International Dial-In Number: 1-412-902-4278 - Canada Toll Free: 1-855-669-9657 - Replay Conference Call Domestic Dial-In Number: 1-877-344-7529 - Replay Conference Call International Dial-In Number: 1-412-317-0088 - Replay Conference Call Canada Toll Free: 1-855-669-9658 - Conference ID: 2955671 [3].

Group 1 - Community Healthcare Trust Incorporated (CHCT) is experiencing significant activity in the options market, particularly with the Oct. 17, 2025 $2.5 Call showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Analysts currently rate Community Healthcare Trust as a Zacks Rank 5 (Strong Sell), placing it in the bottom 44% of the Zacks Industry Rank, with no earnings estimate increases and a decrease in consensus estimates from 56 cents to 54 cents per share over the last 60 days [3] Group 2 - The high implied volatility may indicate a trading opportunity, as options traders often seek to sell premium on options with such volatility, hoping the stock does not move as much as expected by expiration [4]

Core Insights - Albert Anthony is a Croatian-American business author and media contributor with a focus on real estate investment trusts (REITs) [1] - He has a background in IT analysis for Fortune 500 companies and experience in financial services with Charles Schwab [1] - Anthony is launching a book on REITs in 2025 and operates his own equities research firm remotely [1] Background and Experience - The author has over 1,000 followers on Seeking Alpha and writes for various financial platforms [1] - He has participated in numerous business and innovation conferences in the EU and the US [1] - Anthony is pursuing a CMSA certification from the Corporate Finance Institute [1] Media and Digital Presence - He is active in digital media, including a YouTube channel focused on REITs [1] - The author has appeared in regional media channels in Croatia and has had roles in multiple productions [1] - Albert Anthony & Company is a sole proprietorship based in Austin, Texas, focusing on general market commentary and research [1]

Group 1 - The article discusses the author's long-term investment approach, focusing on REITs, preferred stocks, and high-yield bonds, which began in high school in 2011 [1] - The author has recently combined long stock positions with covered calls and cash secured puts, indicating a strategic investment methodology [1] - The primary focus of the author's coverage on Seeking Alpha includes REITs and financials, with occasional insights on ETFs and macro-driven stock ideas [1] Group 2 - The author has a beneficial long position in the shares of CHCT, indicating a personal investment interest in this company [2] - The article expresses the author's own opinions without any external compensation, emphasizing independence in analysis [2] - There is no business relationship with any company mentioned, reinforcing the objectivity of the insights provided [2]

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]

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]