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] - Compared to Q4 2024, total revenue grew by 2.7% from $29.3 million, driven by acquisitions and seasonal increases in operating expense reimbursements [13] - Funds from operations (FFO) decreased slightly by $77,000 quarter-over-quarter but remained at $12.7 million, with FFO per diluted share at $0.47 [14] Business Line Data and Key Metrics Changes - Occupancy and weighted average remaining lease term remained stable 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 agreements for seven properties with an expected investment of $169.5 million, with anticipated 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, resulting in net proceeds of about $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 is focused on selective acquisitions and capital recycling opportunities, maintaining modest leverage levels [10][22] - The management is evaluating the potential for share buybacks but prioritizes capital allocation for growth and acquisitions [25][26] - The company aims to close on two inpatient rehab facilities in the near term, with a healthy pipeline of acquisitions expected [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stability of tenants and the healthcare sector's resilience amid economic challenges [44] - The company is monitoring the geriatric psychiatric hospital operator's sale process, expecting more clarity by the end of Q2 or early Q3 [19][40] - Management remains cautious about raising equity at current share prices, preferring to utilize selected asset sales and revolver draws for funding [22][23] 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 has an active watch list for tenants, indicating ongoing monitoring of tenant performance [43] Q&A Session Summary Question: Additional information on the geriatric psychiatric hospital operator's sale process - Management indicated that they expect more certainty regarding buyer interest by the end of Q2 or early Q3 [18] Question: Acquisition outlook and capital allocation - Management confirmed a healthy pipeline but noted less activity in Q1, with plans to utilize selected asset sales and revolver draws for funding [20][22] Question: Clarification on contractual payments with the psychiatric hospital operator - The $3.2 million is solely rent, with additional notes payments of approximately $2.5 million [30][31] Question: Concerns about smaller tenants in the portfolio - Management reported stability among tenants, with no significant issues arising in Q1 [43] Question: Conditions under which the company might not proceed with the $169 million pipeline - Management clarified that while there are obligations to acquire, they can opt out if the opportunity is not right [49] Question: Position of the company's notes in the event of asset sales by the psychiatric hospital operator - Management stated they hold a second lien on accounts receivable and a first lien on other assets [51]

Financial Data and Key Metrics Changes - Total revenue increased from $29,300,000 in Q1 2024 to $30,100,000 in Q1 2025, representing a 2.5% annual growth [11] - Compared to Q4 2024, total revenue grew by 2.7% quarter over quarter, attributed to incremental revenue from acquisitions and seasonal increases in operating expense reimbursements [12] - Funds from operations (FFO) decreased slightly by $77,000 quarter over quarter, remaining at $12,700,000, with FFO per diluted share at $0.47 [13] 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 $9,700,000, with anticipated tenant improvements of $1,400,000, expecting an annual return of 9.5% [7] - The company signed definitive purchase and sale agreements for seven properties with an expected investment of $169,500,000, with returns ranging from 9.1% to 9.75% [7] Market Data and Key Metrics Changes - The company sold a building in Ohio for approximately $400,000, receiving net proceeds of about $600,000, resulting in a gain on the property sale [8] - The geriatric psychiatric hospital operator, a tenant in six properties, represents an annual base rent of $3,200,000, with incremental operating improvements noted [9] Company Strategy and Development Direction - The company continues to be selective in acquisitions while focusing on property operating costs and tenant relationships [6] - Management is evaluating capital recycling opportunities and anticipates sufficient capital from selected asset sales and increased revolver capacity for near-term acquisitions [10] - The company raised its dividend to $0.47 per common share, marking a continuous increase since its IPO [10] Management's Comments on Operating Environment and Future Outlook - Management expects to have more clarity on the status of the geriatric psychiatric hospital operator's sale process by the end of Q2 or early Q3 [18] - The company is cautious about raising equity at current share prices and plans to utilize selected asset sales and revolver draws for funding acquisitions [22] - Overall, management sees stability among tenants and does not anticipate significant negative impacts from the macroeconomic environment on tenants' ability to pay rent [43] Other Important Information - The company has a solid pipeline of acquisitions expected to close over the next three years, totaling approximately $169,000,000 [49] - Management is open to evaluating various capital options, including preferred stock, but maintains a bias towards a simple capital structure [35] Q&A Session Summary Question: Additional information on the geriatric psychiatric hospital operator's sale process - Management indicated that they expect to have more certainty regarding buyer interest by the end of Q2 or early Q3 [18] Question: Acquisition outlook and capital allocation - Management confirmed that they are seeing attractive property acquisitions and are evaluating them, but are cautious about raising equity at current prices [22] Question: Clarification on contractual payments with the psychiatric hospital operator - The $3,200,000 is just the rent, with additional payments on notes amounting to approximately $2,500,000 [30][31] Question: Patience regarding the geriatric tenant's lease default - Management stated they are monitoring the situation and will make decisions based on buyer interest, emphasizing that patience is not unlimited [40] Question: Concerns about smaller tenants in the portfolio - Management reported stability across the portfolio and no significant issues with smaller tenants, indicating a positive macroeconomic outlook for healthcare providers [43]

Company Overview - Community Healthcare Trust (CHCT) has a market capitalization of $514.6 million and an enterprise value of $1,008.4 million as of March 31, 2025 [3] - The company has achieved a 56% total shareholder return since its inception [4] - CHCT has consistently increased its dividend for 39 consecutive quarters [4] - The company's portfolio consists of 201 properties and 313 tenants across 36 states [4] Investment Strategy & Portfolio - CHCT focuses on smaller, off-market or lightly marketed transactions to acquire high-quality assets at attractive yields [8] - The company's investment pipeline includes properties under definitive purchase agreements for approximately $169.5 million with expected returns of 9.1% to 9.75% [25] - The company's investment pipeline includes one property under a signed term sheet for an expected purchase price of approximately $4.1 million and expected return of approximately 9.25% [25] - The company's investment pipeline includes a term sheet signed with an operator for the funding and development of dialysis clinics for an expected aggregate investment of up to $60.0 million with expected aggregate returns of approximately 9.5% [25] - The portfolio is diversified across various property types, with Medical Office Buildings (MOB) representing 36.6%, Inpatient Rehabilitation Facilities (IRF) representing 19.1%, and Acute In-Patient Behavioral Facilities (AIB) representing 12.8% of the portfolio [29] - The portfolio is diversified across 36 states, with Texas (TX) accounting for 16.7%, Illinois (IL) for 11.4%, and Ohio (OH) for 10.1% of the portfolio [31] - The top 2 tenants account for 16.0% of annualized rent [26] Financial Position - The company maintains a conservative balance sheet, targeting a debt to total capitalization ratio of under 40% [7] - As of Q1 2025, Debt / Gross Real Estate Value is 41.0% [54] - As of Q1 2025, Debt to Capitalization is 42.5% [54] - The weighted average lease term is 6.7 years [56] - Leases expiring in 2025 account for 7.2% of total annualized lease revenue, amounting to $7.846 million [56]

Core Insights - Community Healthcare Trust (CHCT) reported revenue of $30.08 million for the quarter ended March 2025, reflecting a year-over-year increase of 2.6% and a surprise of +1.06% over the Zacks Consensus Estimate of $29.76 million [1] - The earnings per share (EPS) for the quarter was $0.55, significantly higher than the $0.11 reported in the same quarter last year, with an EPS surprise of +3.77% compared to the consensus estimate of $0.53 [1] Revenue Breakdown - Rental income amounted to $29.73 million, exceeding the three-analyst average estimate of $29.43 million, representing a year-over-year increase of +4.9% [4] - Other operating interest, net, was reported at $0.35 million, slightly above the estimated $0.32 million, but showed a significant decline of -64.9% compared to the year-ago quarter [4] Stock Performance - Over the past month, shares of Community Healthcare Trust have returned -11.8%, contrasting with the Zacks S&P 500 composite's -0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it may perform in line with the broader market in the near term [3]

Core Viewpoint - Community Healthcare Trust (CHCT) reported quarterly funds from operations (FFO) of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, but down from $0.59 per share a year ago, indicating a 3.77% surprise [1] Financial Performance - The company achieved revenues of $30.08 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.06%, compared to $29.33 million in the same quarter last year [2] - Over the last four quarters, CHCT has exceeded consensus FFO estimates three times and revenue estimates two times [2] Stock Performance and Outlook - CHCT shares have declined approximately 16.7% year-to-date, contrasting with the S&P 500's decline of 6% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the company's FFO outlook [4][6] Estimate Revisions - The current consensus FFO estimate for the upcoming quarter is $0.55 on revenues of $30.82 million, and for the current fiscal year, it is $2.20 on revenues of $123.67 million [7] - The estimate revisions trend for CHCT is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [6] Industry Context - The REIT and Equity Trust - Other industry, to which CHCT belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Performance - Total revenues for Q1 2025 were $30,078,000, an increase from $29,298,000 in Q4 2024, representing a growth of 2.7%[15] - Net income for Q1 2025 was $1,591,000, compared to $1,832,000 in Q4 2024, showing a decrease of 13.1%[15] - Funds from Operations (FFO) for Q1 2025 were $12,668,000, slightly down from $12,745,000 in Q4 2024[15] - Adjusted EBITDAre for Q1 2025 was $21,596,000, consistent with $21,617,000 in Q4 2024[15] - Adjusted Funds from Operations (AFFO) for Q1 2025 were $14,739,000, an increase from $14,630,000 in Q4 2024[24] - Net Operating Income (NOI) for Q1 2025 was $23,983,000, up from $23,813,000 in Q4 2024[33] - General and administrative expenses for Q1 2025 were $5,100,000, an increase from $4,809,000 in Q4 2024[33] - The company recorded an interest expense of $6,352,000 in Q1 2025, slightly down from $6,405,000 in Q4 2024[33] - The market capitalization was reported at $514,631,000 as of Q1 2025, down from $542,536,000 in Q4 2024[21] Dividends and Shareholder Returns - The company reported a quarterly dividend of $0.4675 per share, with a dividend yield of 10.30%[8] - The company declared a dividend of $0.4675 per common share in Q1 2025, compared to $0.4650 in Q4 2024[23] Debt and Capitalization - Net debt to total capitalization ratio stood at 41.0% as of Q1 2025, up from 40.3% in Q4 2024[21] - Total debt as of March 31, 2025, amounted to $496,016 thousand, with a leverage ratio of 41.9%, well below the required maximum of 60.0%[39][42] - The company reported a total capitalization that includes debt, stockholders' equity, and accumulated depreciation, highlighting its financial structure[83] Property and Portfolio Management - Total real estate properties increased to $1,148,772,000 in Q1 2025 from $1,145,931,000 in Q4 2024[21] - The company owned a total of 201 properties as of March 31, 2025, with a leasing rate of 90.9%[8] - The portfolio was approximately 90.9% leased as of March 31, 2025, with lease expirations ranging from 2025 through 2045[55] - The company’s portfolio includes a variety of healthcare facilities, such as Inpatient Rehabilitation Facilities (IRF) and Long-Term Acute Care Hospitals (LTACH), catering to diverse patient needs[75][76] Market and Revenue Insights - Approximately 51% of property revenues are generated from MSAs with populations over 1,000,000[57] - Medical Office Buildings (MOB) accounted for 36.6% of annualized rent, making it the largest segment in the portfolio[48] - The average annualized rent across the properties listed in the documents indicates a strong rental income potential in the healthcare real estate sector[60][61] - The company is focusing on expanding its portfolio in high-demand healthcare markets, as evidenced by the diverse range of properties listed[60][61] Operational Metrics - The fixed charge coverage ratio stood at 3.2, significantly above the required minimum of 1.50x[42] - Non-cash stock-based compensation as a percentage of revenue was 9.0% in Q1 2025, compared to 8.8% in Q4 2024[23] - The weighted average common shares outstanding increased to 27,007,000 in Q1 2025 from 26,786,000 in Q4 2024[24] - Weighted average common shares outstanding for Q1 2025 increased to 28,324 thousand from 27,680 thousand in Q1 2024, reflecting a growth of approximately 2.3% year-over-year[37] Future Outlook and Strategy - The company’s forward-looking statements reflect management's expectations regarding capital resources and portfolio performance, indicating a proactive approach to market conditions[85][86] - The company utilizes non-GAAP financial measures such as AFFO, which adjusts for acquisitions, providing insights into future operational impacts[66] - The company emphasizes the importance of EBITDAre and Adjusted EBITDAre as key performance indicators for evaluating core operating results[69][70]

Financial Performance - Rental income increased by approximately $1.4 million, or 4.9%, for the three months ended March 31, 2025, compared to the same period in 2024[101]. - Funds from Operations (FFO) for the three months ended March 31, 2025, was $12.668 million, compared to $14.043 million for the same period in 2024[113]. - Adjusted Funds from Operations (AFFO) for the three months ended March 31, 2025, was $14.739 million, compared to $15.712 million for the same period in 2024[113]. - Net income for the three months ended March 31, 2025, was $1,591,000, a decrease of 56.5% compared to $3,665,000 in 2024[116]. - EBITDAre for the same period was $18,886,000, slightly down by 0.5% from $18,989,000 in 2024[119]. - Adjusted EBITDAre increased to $21,596,000, up 0.9% from $21,413,000 in 2024[119]. Expenses - Interest expense increased by approximately $1.3 million, or 25.5%, for the three months ended March 31, 2025, due mainly to increases in the weighted average balance and interest rates on the Credit Facility[105]. - General and administrative expenses increased by approximately $0.5 million, or 12.0%, for the three months ended March 31, 2025, primarily due to compensation-related expenses[104]. - Property operating expenses increased by approximately $0.3 million, or 5.2%, for the three months ended March 31, 2025, compared to the same period in 2024[103]. Real Estate Portfolio - As of March 31, 2025, the real estate portfolio was approximately 90.9% leased, with 166,000 square feet of leases expiring or terminated and 168,000 square feet leased or renewed during the first three months of 2025[96]. - The Company has seven properties under definitive purchase agreements with an aggregate expected purchase price of approximately $169.5 million, anticipated to close throughout 2025, 2026, and 2027[95]. - The company had an aggregate gross investment of approximately $31.5 million in 9 real estate properties with purchase options exercisable at March 31, 2025, that had not been exercised[98]. - The company has seven properties under definitive purchase agreements with an expected total purchase price of approximately $169.5 million[128]. Cash Flow - Cash flows provided by operating activities increased to approximately $14.4 million for the three months ended March 31, 2025, compared to $12.6 million in 2024[135]. - Cash flows used in investing activities decreased significantly to approximately $12.6 million in 2025 from $38.5 million in 2024[137]. Debt and Capitalization - The debt to total capitalization ratio was approximately 41.0% as of March 31, 2025, exceeding the company's policy limit of 40%[121]. - As of March 31, 2025, the company had $222.0 million outstanding on its Revolving Credit Facility, with a remaining borrowing capacity of approximately $178.0 million[124]. - The company expects to fund acquisitions and capital improvements through cash from operations, equity or debt issuances, and asset sales[128]. Dividends - The company declared a quarterly common stock dividend of $0.47 per share, equating to an annualized dividend of $1.88 per share[142]. Non-GAAP Measures - Non-GAAP financial measures such as FFO and AFFO are considered useful by management to evaluate the Company's operating performance, excluding certain non-cash items[106].

Company Overview - Community Healthcare Trust Incorporated is a real estate investment trust (REIT) focused 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 investments totaling approximately $1.2 billion in 201 real estate properties, covering about 4.5 million square feet across 36 states [3] Financial Performance - For the three months ended March 31, 2025, the Company reported a net income of approximately $1.6 million, or $0.03 per diluted common share [1] - Funds from operations (FFO) and adjusted funds from operations (AFFO) for the same period were $0.47 and $0.55 per diluted common share, respectively [1][12] Revenue and Expenses - Rental income for the first quarter of 2025 was $29.73 million, an increase from $28.34 million in the same period of 2024 [10] - Total expenses for the first quarter of 2025 were $22.14 million, compared to $20.61 million in the first quarter of 2024 [11] Property Transactions - During the first quarter of 2025, the Company acquired a property for approximately $9.7 million, funded through its Revolving Credit Facility [6] - The Company disposed of a building in Ohio, receiving net proceeds of approximately $0.6 million [6] - There are seven properties under definitive purchase agreements, with an expected aggregate purchase price of approximately $169.5 million, anticipated to close throughout 2025, 2026, and 2027 [6] Dividends - The Company's Board of Directors declared a quarterly common stock dividend of $0.47 per share, payable on May 23, 2025, to stockholders of record on May 9, 2025 [6]

Group 1 - The article discusses the author's long-term investment strategy, focusing on REITs, preferred stocks, and high-yield bonds, which began in high school in 2011 [1] - The author combines long stock positions with covered calls and cash secured puts, indicating a sophisticated approach to managing investments [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 and does not involve compensation from any company mentioned, ensuring an independent perspective [2]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $29.3 million, slightly down from $29.6 million in Q3 2024 [17] - Property operating expenses decreased by approximately $500,000 quarter over quarter to $5.5 million [17] - Funds from operations (FFO) was $12.7 million in Q4 2024, a decline of 14.5% year over year from $14.9 million in Q4 2023 [18] - Adjusted funds from operations (AFFO) totaled $14.6 million in Q4 2024, unchanged from Q3 2024, but down 9% year over year from $16.1 million in Q4 2023 [20] Business Line Data and Key Metrics Changes - The company acquired three physician clinics totaling 38,000 square feet for $8.2 million, with leases running through 2029 and anticipated annual returns of approximately 9.4% [8] - For the year, nine properties were acquired totaling 261,000 square feet for $72.1 million, approximately 99.3% leased with leases running through 2039 [9] Market Data and Key Metrics Changes - Occupancy at year-end decreased slightly to 90.9%, with a weighted average remaining lease term declining to 6.7 years [7] Company Strategy and Development Direction - The company is focused on selective acquisitions and has signed definitive purchase agreements for six properties to be acquired after completion, with an expected investment of $146 million [10] - The company increased its revolving credit facility from $150 million to $400 million, extending the maturity date by five years [12] - The company is evaluating capital recycling opportunities and anticipates sufficient capital from selected asset sales to fund near-term acquisitions [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in resolving issues with a tenant in six properties, which could lead to significant additional AFFO [50] - The company aims to maintain occupancy in the 91% to 93% range long-term, with no significant changes expected in the near term [55] Other Important Information - The company declared a fourth-quarter dividend of $0.4675 per common share, raising it to an annualized rate of $1.87 per share [14] Q&A Session Summary Question: Timeline for geriatric psychiatric hospital operator - Management indicated that they received a small payment and expect the tenant to make payments of $100,000 to $200,000 per quarter, with a clearer timeline expected in the coming quarters [26][28] Question: Funding acquisitions and capital allocation - Management stated that all options are on the table for funding acquisitions, including using the revolving credit facility and capital recycling to maintain leverage at acceptable levels [34] Question: Expected closings in Q1 2025 - Management confirmed two properties expected to close in Q1 2025: a behavioral residential treatment facility for $9.5 million and an inpatient rehab facility for $23.5 million [42][43] Question: Dividend coverage and cash flow - Management expressed confidence in dividend coverage, noting that the coverage has been compressed due to the tenant issue but expects resolution to improve AFFO [50][51] Question: Occupancy expectations for 2025 - Management does not expect significant changes in occupancy, aiming to maintain levels between 91% and 93% [55]