Valuation Metrics - CHCT has a P/B ratio of 1.08, compared to OHI's P/B ratio of 2.34 [1] - CHCT has a forward P/E ratio of 8.28, while OHI has a forward P/E of 13.38 [8] - CHCT has a PEG ratio of 1.04, compared to OHI's PEG ratio of 1.12 [8] Zacks Rank and Style Scores - CHCT has a Zacks Rank of 2 (Buy), while OHI has a Zacks Rank of 3 (Hold) [3] - CHCT holds a Value grade of A, while OHI has a Value grade of C [6] - CHCT's earnings estimate revision activity has been more impressive, indicating an improving analyst outlook [3] Investment Opportunity - CHCT is considered a better option for value investors based on Zacks Rank and Style Scores models [9] - The best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category [4] - Value investors use traditional metrics like P/E ratio, P/S ratio, earnings yield, and cash flow per share to find undervalued companies [5][7]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true v ...

Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Community Healthcare Trust (CHCT) and National Health Investors (NHI) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank fa ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis ...

Core Viewpoint - Investors in the REIT and Equity Trust - Other sector should consider Community Healthcare Trust (CHCT) and SL Green (SLG) as potential value investment opportunities [1] Valuation Metrics - CHCT has a forward P/E ratio of 8.49, while SLG has a forward P/E of 10.02 [5] - CHCT's PEG ratio is 1.06, indicating a more favorable valuation compared to SLG's PEG ratio of 2.01 [5] - CHCT's P/B ratio is 1.11, compared to SLG's P/B ratio of 1.34, suggesting that CHCT is undervalued relative to its book value [6] Earnings Outlook - Both CHCT and SLG currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3][4] - Despite the positive earnings outlook, value investors will focus on a broader range of traditional metrics to assess undervaluation [4] Value Grades - Based on the valuation metrics, CHCT holds a Value grade of B, while SLG has a Value grade of D, indicating that CHCT is the superior value option at this time [6]

These companies could slash their high-yielding payouts in the future. A high dividend yield can be very alluring to an income investor. In theory, it would enable investors to generate more income for every dollar they invest. Unfortunately, a high yield can often be like a siren's song and lead an investor to a destructive outcome when the company slashes its payment. NextEra Energy Partners (NEP -0.41%), Annaly Capital Management (NLY 0.78%), and Community Healthcare Trust (CHCT 6.70%) currently have mon ...

Financial Data and Key Metrics Changes - Total revenue increased from $28.7 million in Q3 2023 to $29.6 million in Q3 2024, representing a 3.1% year-over-year growth [16] - Funds from operations (FFO) rose to $12.8 million in Q3 2024, up from $11.6 million in Q2 2024, with FFO per diluted share increasing from $0.43 to $0.48 [18] - Adjusted funds from operations (AFFO) totaled $14.6 million in Q3 2024, up from $14.3 million in Q2 2024, with AFFO per diluted share increasing from $0.53 to $0.55 [18] - The dividend for Q3 was raised to $0.465 per share, equating to an annualized dividend of $1.86 per share [13] Business Line Data and Key Metrics Changes - Occupancy decreased from 92.6% to 91.3% during the quarter due to lease terminations and expirations, although leasing activity remains strong [10] - Weighted average remaining lease term decreased from 7.1 years to 6.8 years [10] - One physician clinic was acquired for approximately $6.2 million, with an expected return of about 9.3% [11] Market Data and Key Metrics Changes - The company has signed definitive purchase agreements for seven properties with an expected investment of $169.5 million, with anticipated returns ranging from 9.1% to 9.75% [12] - The company is actively evaluating capital recycling opportunities and anticipates sufficient capital from selected asset sales to fund near-term acquisitions [12] Company Strategy and Development Direction - The company successfully increased its revolving credit facility from $150 million to $400 million, extending its maturity date by five years while achieving lower pricing [8] - The company is focused on redevelopment projects, with three expected to commence leases in Q1 2025, which are anticipated to generate similar returns as acquisitions [10][25] - The company aims to maintain a modest leverage profile while exploring selective asset sales to fund growth [12][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stabilization of the geriatric psychiatric hospital operator, with improved census expected to lead to consistent rent and interest payments [21][22] - The company noted that the reduction in occupancy was primarily due to one property on a cash basis that was not paying rent, with a lease termination agreement in place [35] - Management highlighted the strong support from banks during the refinancing of the credit facility, attributing it to the diversified portfolio and strong dividend coverage [44][45] Other Important Information - The company has four properties under definitive purchase agreements for an aggregate expected purchase price of $8.8 million, with expected returns ranging from 9.29% to 9.5% [11] - The company has a modest loan level outstanding to operators, with no top 10 tenants currently on the watch list [23][46] Q&A Session Summary Question: Can you provide more details on the geriatric tenants issue? - Management indicated that consultants have stabilized staffing and improved processes, leading to better census and potential for rent payments [21][22] Question: Are there any other tenants on the watch list? - Management confirmed there are no other top 10 tenants on the watch list, with 15 to 20 tenants monitored for performance [23] Question: What is the expected impact of redevelopment projects on earnings? - Management stated that the three redevelopment projects expected to come online will provide a meaningful increase in annual rent, estimated at over $750,000 [30] Question: What types of facilities are being considered for sale? - Management is looking at both underperforming properties and strong-performing properties for selective sales, aiming to reinvest gains into higher-yielding assets [37][38]

Community Healthcare Trust (CHCT) reported $29.64 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 3.1%. EPS of $0.55 for the same period compares to $0.11 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $29.06 million, representing a surprise of +2.01%. The company delivered an EPS surprise of +5.77%, with the consensus EPS estimate being $0.52. While investors closely watch year-over-year changes in headline numbers -- revenue ...