[About Us](index=2&type=section&id=ABOUT%20US) [Company Overview](index=2&type=section&id=2.1%20Company%20Overview) Community Healthcare Trust (CHCT) is a self-managed healthcare REIT with a diversified portfolio of medical properties primarily located outside urban centers in the U.S - CHCT is a self-managed healthcare REIT, focusing on a diversified portfolio of medical properties primarily located outside urban centers in the U.S[6](index=6&type=chunk) - The company's portfolio includes medical office buildings, acute inpatient behavioral treatment facilities, inpatient rehabilitation facilities, physician clinics, specialty centers, behavioral specialty facilities, and surgical centers and hospitals[6](index=6&type=chunk) - The company's properties are considered crucial for local healthcare service delivery, benefiting from favorable demographic trends, increased healthcare spending, and the shift towards community-based care[6](index=6&type=chunk) [Company Snapshot](index=3&type=section&id=Company%20Snapshot) [Key Metrics as of June 30, 2025](index=3&type=section&id=3.1%20Key%20Metrics%20as%20of%20June%2030,%202025) As of June 30, 2025, the company's total real estate investment reached **$1.172 billion**, with 200 properties, an occupancy rate of **90.7%**, and a weighted average remaining lease term of **6.6 years** Key Metrics (as of June 30, 2025) | Metric | Amount/Value (as of June 30, 2025) | | :----------------------------------- | :----------------------------- | | **Real Estate Investment** | | | Total Real Estate Investment (USD thousands) | $1,171,846 | | Total Properties | 200 | | Occupancy Rate | 90.7 % | | Total Owned Area (sq ft) | 4,525,053 | | Weighted Average Remaining Lease Term (years) | 6.6 | | **Financial Position** | | | Cash and Cash Equivalents (USD thousands) | $4,863 | | Debt Capitalization Ratio | 41.6 % | | Revolving Credit Facility Weighted Average Annual Interest Rate | 5.3 % | | Term Loan Weighted Average Annual Interest Rate | 4.7 % | | **Market Performance** | | | Equity Market Capitalization (USD millions) | $471.8 | | Quarterly Dividend Paid (per share) | $0.4700 | | Quarter-End Stock Price (per share) | $16.63 | | Dividend Yield | 11.30 % | | Common Shares Outstanding | 28,368,353 | [Corporate Information](index=4&type=section&id=Corporate%20Information) [Corporate Details and Leadership](index=4&type=section&id=4.1%20Corporate%20Details%20and%20Leadership) This section provides contact information, board members, executive management, and covering analysts for Community Healthcare Trust, highlighting key leadership roles - Company contact information includes phone **615-771-3052**, email **Investorrelations@chct.reit**, and website **www.chct.reit**[12](index=12&type=chunk) - The Board is chaired by **Alan Gardner**, with **Robert Hensley** leading the Audit Committee, **Claire Gulmi** the Compensation Committee, and **R. Lawrence Van Horn** the ESG Committee[12](index=12&type=chunk) - The executive management team comprises **David H. Dupuy** (CEO & President), **William G. Monroe IV** (EVP & CFO), and **Leigh Ann Stach** (EVP & Chief Accounting Officer)[12](index=12&type=chunk) - Covering analysts represent **Truist Securities**, **Piper Sandler**, **Janney Capital Markets**, **Evercore ISI**, and **Colliers International Securities**[13](index=13&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) [Quarterly Operating Results](index=5&type=section&id=5.1%20Quarterly%20Operating%20Results) In Q2 2025, the company reported revenue of **$29.085 million** and a net loss of **$12.557 million**, impacted by various allowances and severance costs, with FFO and AFFO per share decreasing Operating Results (USD thousands, except per share data) | Metric | 2Q 2025 | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | | :---------------------------------- | :------ | :------ | :------ | :------ | :------ | | Revenue | $29,085 | $30,078 | $29,298 | $29,639 | $27,516 | | Net (Loss) Income | $(12,557) | $1,591 | $1,832 | $1,749 | $(10,427) | | NOI | $23,500 | $23,983 | $23,813 | $23,653 | $21,944 | | EBITDAre | $4,274 | $18,886 | $19,020 | $18,924 | $6,491 | | Adjusted EBITDAre | $20,068 | $21,596 | $21,617 | $21,421 | $19,960 | | FFO | $6,336 | $12,668 | $12,745 | $12,821 | $11,608 | | AFFO | $13,585 | $14,739 | $14,630 | $14,639 | $14,281 | | **Diluted Per Share Data** | | | | | | | Net (Loss) Income Attributable to Common Stockholders | $(0.50) | $0.03 | $0.04 | $0.04 | $(0.42) | | FFO | $0.23 | $0.47 | $0.48 | $0.48 | $0.43 | | AFFO | $0.50 | $0.55 | $0.55 | $0.55 | $0.53 | - Q2 2025 net loss, FFO, and AFFO include approximately **$1.7 million** allowance for interest receivable, reducing diluted net loss, FFO, and AFFO per share by **$0.06**[14](index=14&type=chunk) - Q2 2025 net loss includes an **$8.7 million** allowance for credit losses related to notes receivable from a senior behavioral hospital tenant[15](index=15&type=chunk) - Q2 2025 net loss and FFO include approximately **$5.9 million** in severance and transition-related costs, with **$4.6 million** from non-cash accelerated equity incentive amortization, reducing diluted FFO per share by approximately **$0.22**[16](index=16&type=chunk) [Quarterly Balance Sheet Items](index=6&type=section&id=5.2%20Quarterly%20Balance%20Sheet%20Items) As of Q2 2025, total real estate properties were valued at **$1.158 billion**, with total assets at **$966.292 million**, and a net debt to total capitalization ratio of **41.6%** Balance Sheet Items (USD thousands) | Metric | 2Q 2025 | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | | :----------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | **Assets** | | | | | | | Total Real Estate Properties | $1,158,312 | $1,148,772 | $1,145,931 | $1,135,463 | $1,120,450 | | Total Assets | $966,292 | $985,114 | $992,563 | $981,779 | $983,196 | | **Capitalization** | | | | | | | Net Debt | $500,077 | $496,016 | $485,955 | $473,716 | $457,625 | | Total Capitalization | $1,200,858 | $1,210,874 | $1,204,529 | $1,183,615 | $1,177,230 | | Net Debt/Total Capitalization | 41.6 % | 41.0 % | 40.3 % | 40.0 % | 38.9 % | | Market Capitalization | $471,766 | $514,631 | $542,536 | $512,599 | $656,059 | | Enterprise Value | $966,980 | $1,008,376 | $1,024,107 | $983,479 | $1,112,950 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) [Assets](index=7&type=section&id=6.1%20Assets) As of Q2 2025, total assets were **$966.292 million**, with net real estate properties at **$895.351 million** and cash and cash equivalents at **$4.863 million** Assets (USD thousands) | Metric | 2Q 2025 | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | | :--------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Land and Land Improvements | $152,887 | $149,506 | $149,501 | $146,118 | $143,717 | | Buildings, Improvements, and Lease Intangibles | $1,004,616 | $998,933 | $996,104 | $989,019 | $976,415 | | Personal Property | $809 | $333 | $326 | $326 | $318 | | **Total Real Estate Properties** | $1,158,312 | $1,148,772 | $1,145,931 | $1,135,463 | $1,120,450 | | Less: Accumulated Depreciation | $(262,961) | $(253,537) | $(242,609) | $(232,747) | $(221,834) | | **Net Real Estate Properties** | $895,351 | $895,235 | $903,322 | $902,716 | $898,616 | | Cash and Cash Equivalents | $4,863 | $2,271 | $4,384 | $2,836 | $734 | | Net Assets Held for Sale | $5,465 | $6,755 | $6,755 | $6,351 | $7,326 | | Net Other Assets | $60,613 | $80,853 | $78,102 | $69,876 | $76,520 | | **Total Assets** | $966,292 | $985,114 | $992,563 | $981,779 | $983,196 | [Liabilities and Stockholders' Equity](index=7&type=section&id=6.2%20Liabilities%20and%20Stockholders'%20Equity) As of Q2 2025, total liabilities were **$528.472 million**, with net debt at **$500.077 million**, and total stockholders' equity decreased to **$437.820 million** Liabilities and Stockholders' Equity (USD thousands) | Metric | 2Q 2025 | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | | :--------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | **Liabilities** | | | | | | | Net Debt | $500,077 | $496,016 | $485,955 | $473,716 | $457,625 | | Accounts Payable and Accrued Liabilities | $13,944 | $12,058 | $14,289 | $14,422 | $12,023 | | Net Other Liabilities | $14,451 | $15,719 | $16,354 | $16,489 | $15,777 | | **Total Liabilities** | $528,472 | $523,793 | $516,598 | $504,627 | $485,425 | | **Stockholders' Equity** | | | | | | | Common Stock | $284 | $283 | $282 | $282 | $280 | | Additional Paid-in Capital | $712,498 | $706,776 | $704,524 | $702,014 | $699,833 | | Accumulated Net Income | $74,709 | $87,266 | $85,675 | $83,843 | $82,094 | | Accumulated Other Comprehensive Income | $9,121 | $12,402 | $17,631 | $10,016 | $21,490 | | Accumulated Dividends | $(358,792) | $(345,406) | $(332,147) | $(319,003) | $(305,926) | | **Total Stockholders' Equity** | $437,820 | $461,321 | $475,965 | $477,152 | $497,771 | | **Total Liabilities and Stockholders' Equity** | $966,292 | $985,114 | $992,563 | $981,779 | $983,196 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) [Revenues and Expenses](index=8&type=section&id=7.1%20Revenues%20and%20Expenses) In Q2 2025, total revenue was **$29.085 million**, with a net loss of **$12.557 million** due to increased general and administrative expenses, including accelerated equity incentive amortization and severance Revenue (USD thousands) | Metric | 2Q 2025 | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | | :----------------- | :------ | :------ | :------ | :------ | :------ | | Rental Income | $30,128 | $29,730 | $28,983 | $29,335 | $27,905 | | Other Operating Interest | $(1,043) | $348 | $315 | $304 | $(389) | | **Total Revenue** | $29,085 | $30,078 | $29,298 | $29,639 | $27,516 | Expenses (USD thousands) | Metric | 2Q 2025 | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | | :--------------------- | :------ | :------ | :------ | :------ | :------ | | Property Operating | $5,585 | $6,095 | $5,485 | $5,986 | $5,572 | | General and Administrative | $10,559 | $5,100 | $4,809 | $4,935 | $4,760 | | Depreciation and Amortization | $10,879 | $10,943 | $10,797 | $10,927 | $10,792 | | **Total Expenses** | $27,023 | $22,138 | $21,091 | $21,848 | $21,124 | - Q2 2025 general and administrative expenses include **$4.6 million** in accelerated equity incentive amortization and **$1.3 million** in severance and transition-related costs[25](index=25&type=chunk) [Other (Expense) Income and Net (Loss) Income](index=8&type=section&id=7.2%20Other%20(Expense)%20Income%20and%20Net%20(Loss)%20Income) In Q2 2025, the company reported a net other (expense) income of negative **$14.619 million**, primarily due to credit loss allowances and interest expense, resulting in a net loss of **$12.557 million** Other (Expense) Income (USD thousands) | Metric | 2Q 2025 | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | | :--------------------------------- | :------ | :------ | :------ | :------ | :------ | | Net Gain on Sale of Real Estate Assets (Net of Impairment) | $640 | — | $14 | $5 | $(140) | | Interest Expense | $(6,592) | $(6,352) | $(6,405) | $(6,253) | $(5,986) | | Allowance for Credit Losses | $(8,672) | — | — | — | $(11,000) | | Net Interest and Other Income | $5 | $3 | $16 | $206 | $307 | | **Net Other (Expense) Income** | $(14,619) | $(6,349) | $(6,375) | $(6,042) | $(16,819) | | **Net (Loss) Income** | $(12,557) | $1,591 | $1,832 | $1,749 | $(10,427) | | **Diluted Net (Loss) Income Per Common Share** | $(0.50) | $0.03 | $0.04 | $0.04 | $(0.42) | | **Weighted Average Common Shares Outstanding** | 26,803 | 26,733 | 26,682 | 26,660 | 26,479 | | **Dividend Declared Per Common Share for the Period** | $0.4700 | $0.4675 | $0.4650 | $0.4625 | $0.4600 | [Reconciliation of Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) [Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)](index=9&type=section&id=8.1%20Funds%20From%20Operations%20(FFO)%20and%20Adjusted%20Funds%20From%20Operations%20(AFFO)) In Q2 2025, FFO was **$6.336 million** and AFFO was **$13.585 million**, both negatively impacted by allowances, severance, and accelerated equity incentive amortization FFO and AFFO Reconciliation (USD thousands, except per share data) | Metric | 2Q 2025 | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | | :--------------------------------- | :------ | :------ | :------ | :------ | :------ | | Net (Loss) Income | $(12,557) | $1,591 | $1,832 | $1,749 | $(10,427) | | Real Estate Depreciation and Amortization | $10,861 | $11,077 | $10,927 | $11,077 | $10,895 | | Allowance for Credit Losses | $8,672 | — | — | — | $11,000 | | Net Gain on Sale of Real Estate Assets (Net of Impairment) | $(640) | — | $(14) | $(5) | $140 | | **FFO** | $6,336 | $12,668 | $12,745 | $12,821 | $11,608 | | Straight-line Rent | $(1,184) | $(639) | $(712) | $(679) | $204 | | Stock-Based Compensation | $2,531 | $2,710 | $2,597 | $2,497 | $2,469 | | Accelerated Amortization of Stock-Based Compensation | $4,591 | — | — | — | — | | Severance and Transition-Related Costs | $1,311 | — | — | — | — | | **AFFO** | $13,585 | $14,739 | $14,630 | $14,639 | $14,281 | | **FFO Per Common Share** | $0.23 | $0.47 | $0.48 | $0.48 | $0.43 | | **AFFO Per Common Share** | $0.50 | $0.55 | $0.55 | $0.55 | $0.53 | | **Weighted Average Common Shares Outstanding** | 27,011 | 27,007 | 26,786 | 26,853 | 26,791 | - Q2 2025 net loss, FFO, and AFFO include approximately **$1.7 million** allowance for interest receivable, reducing diluted net loss, FFO, and AFFO per share by **$0.06**[27](index=27&type=chunk) - Q2 2025 net loss includes an **$8.7 million** allowance for credit losses related to notes receivable from a senior behavioral hospital tenant[28](index=28&type=chunk) - Q2 2025 net loss and FFO include approximately **$5.9 million** in severance and transition-related costs, with **$4.6 million** from non-cash accelerated equity incentive amortization, reducing diluted FFO per share by approximately **$0.22**[29](index=29&type=chunk) [AFFO, Adjusted for Acquisitions](index=9&type=section&id=8.2%20AFFO,%20Adjusted%20for%20Acquisitions) AFFO adjusted for acquisitions was **$13.707 million** in Q2 2025, reflecting properties acquired as if they were owned from the start of the reporting period AFFO, Adjusted for Acquisitions (USD thousands) | Metric | 2Q 2025 | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | AFFO | $13,585 | $14,739 | $14,630 | $14,639 | $14,281 | | Revenue from Properties Acquired During Period | $122 | — | $205 | $34 | $98 | | Property Operating Expense Adjustment | — | — | $(48) | $(2) | $(10) | | Interest Expense Adjustment | — | $(41) | $(44) | $(10) | $(28) | | **AFFO, Adjusted for Acquisitions** | $13,707 | $14,698 | $14,743 | $14,661 | $14,341 | [Amortization of Stock-Based Compensation](index=9&type=section&id=8.3%20Amortization%20of%20Stock-Based%20Compensation) In Q2 2025, GAAP-required stock-based compensation amortization was **$2.531 million**, with **$0.496 million** in accelerated amortization, excluding an additional **$4.6 million** due to employment termination Amortization of Stock-Based Compensation (USD thousands) | Metric | 2Q 2025 | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | | :--------------------------- | :------ | :------ | :------ | :------ | :------ | | GAAP Required Amortization | $2,531 | $2,710 | $2,597 | $2,498 | $2,153 | | Amortization Based on Statutory Vesting Period | $2,035 | $2,208 | $2,073 | $2,019 | $1,782 | | **Accelerated Amortization** | $496 | $502 | $524 | $479 | $371 | - The Q2 2025 amortization amount excludes **$4.6 million** in accelerated stock-based compensation amortization resulting from employment termination[34](index=34&type=chunk) [Net Operating Income (NOI)](index=10&type=section&id=8.4%20Net%20Operating%20Income%20(NOI)) In Q2 2025, the company's NOI was **$23.500 million**, a slight decrease from the prior quarter, after adjusting net loss for various non-operating expenses NOI Reconciliation (USD thousands) | Metric | 2Q 2025 | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | | :--------------------------------- | :------ | :------ | :------ | :------ | :------ | | Net (Loss) Income | $(12,557) | $1,591 | $1,832 | $1,749 | $(10,427) | | General and Administrative | $4,657 | $5,100 | $4,809 | $4,935 | $4,760 | | Severance and Transition-Related Compensation | $5,902 | — | — | — | — | | Depreciation and Amortization | $10,879 | $10,943 | $10,797 | $10,927 | $10,792 | | Net Gain on Sale of Real Estate Assets (Net of Impairment) | $(640) | — | $(14) | $(5) | $140 | | Allowance for Credit Losses | $8,672 | — | — | — | $11,000 | | Interest Expense | $6,592 | $6,352 | $6,405 | $6,253 | $5,986 | | Net Interest and Other Income | $(5) | $(3) | $(16) | $(206) | $(307) | | **NOI** | $23,500 | $23,983 | $23,813 | $23,653 | $21,944 | - In Q2 2025, the company reversed approximately **$1.7 million** in tenant-related interest, while Q2 2024 included a reversal of approximately **$3.2 million** in rent and interest, including **$0.9 million** in straight-line rent[36](index=36&type=chunk) - In Q2 2025, the company recorded approximately **$5.9 million** in severance and transition-related costs due to employee termination, including **$4.6 million** in non-cash accelerated stock-based compensation amortization[37](index=37&type=chunk) [EBITDAre and Adjusted EBITDAre](index=10&type=section&id=8.5%20EBITDAre%20and%20Adjusted%20EBITDAre) In Q2 2025, EBITDAre was **$4.274 million** and Adjusted EBITDAre was **$20.068 million**, with the latter excluding non-cash stock-based compensation and credit loss allowances EBITDAre and Adjusted EBITDAre Reconciliation (USD thousands) | Metric | 2Q 2025 | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | | :--------------------------------- | :------ | :------ | :------ | :------ | :------ | | Net (Loss) Income | $(12,557) | $1,591 | $1,832 | $1,749 | $(10,427) | | Interest Expense | $6,592 | $6,352 | $6,405 | $6,253 | $5,986 | | Depreciation and Amortization | $10,879 | $10,943 | $10,797 | $10,927 | $10,792 | | Net Gain on Sale of Real Estate Assets (Net of Impairment) | $(640) | — | $(14) | $(5) | $140 | | **EBITDAre** | $4,274 | $18,886 | $19,020 | $18,924 | $6,491 | | Non-Cash Stock-Based Compensation Expense | $2,531 | $2,710 | $2,597 | $2,497 | $2,469 | | Accelerated Amortization of Stock-Based Compensation | $4,591 | — | — | — | — | | Allowance for Credit Losses | $8,672 | — | — | — | $11,000 | | **Adjusted EBITDAre** | $20,068 | $21,596 | $21,617 | $21,421 | $19,960 | | **Adjusted EBITDAre Annualized** | $80,272 | | | | | [Weighted Average Shares](index=11&type=section&id=Weighted%20Average%20Shares) [Weighted Average Common Shares Outstanding](index=11&type=section&id=9.1%20Weighted%20Average%20Common%20Shares%20Outstanding) As of Q2 2025, weighted average common shares outstanding for EPS was **26.803 million** and for FFO diluted was **27.011 million**, with period-end unrecognized deferred compensation at **$19.919 million** Weighted Average Common Shares Outstanding (thousands of shares, except per share data) | Metric | 2Q 2025 | 1Q 2025 | 4Q 2024 | 3Q 2024 | 2Q 2024 | | :--------------------------------- | :------ | :------ | :------ | :------ | :------ | | Weighted Average Common Shares Outstanding | 28,364 | 28,324 | 28,242 | 28,168 | 27,879 | | Unvested Restricted Stock | $(1,561) | $(1,591) | $(1,560) | $(1,508) | $(1,400) | | **Weighted Average Common Shares Outstanding - EPS** | 26,803 | 26,733 | 26,682 | 26,660 | 26,479 | | **Weighted Average Common Shares Outstanding - FFO Basic** | 26,803 | 26,733 | 26,682 | 26,660 | 26,479 | | Potentially Dilutive Common Shares | 208 | 274 | 104 | 193 | 312 | | **Weighted Average Common Shares Outstanding - FFO Diluted** | 27,011 | 27,007 | 26,786 | 26,853 | 26,791 | | **Treasury Stock Calculation** | | | | | | | Unrecognized Deferred Compensation at Period-End (USD thousands) | $19,919 | $25,420 | $25,220 | $27,575 | $26,764 | | Average Stock Price (per share) | $16.50 | $19.08 | $18.13 | $20.44 | $24.30 | | Treasury Stock | 1,374 | 1,339 | 1,456 | 1,315 | 1,122 | | Potentially Dilutive Common Shares | 208 | 274 | 104 | 193 | 312 | [Debt Summary](index=12&type=section&id=Debt%20Summary) [Debt Structure and Covenants](index=12&type=section&id=10.1%20Debt%20Structure%20and%20Covenants) As of June 30, 2025, total debt was **$501 million**, with net debt at **$500.077 million**, and the company maintained compliance with all major debt covenants, including a **42.4%** leverage ratio Debt Structure (USD thousands) | Metric | Principal Balance (USD thousands) | Stated Interest Rate | Hedged Interest Rate | | :-------------------- | :---------------- | :------- | :------- | | Revolving Credit Facility | $226,000 | 5.99% | 3.84% (partial) | | Term Loan A-4 | $125,000 | | 3.60% | | Term Loan A-5 | $150,000 | | 5.61% | | **Debt** | $501,000 | | | | Net Deferred Financing Costs | $(923) | | | | **Net Debt** | $500,077 | | | Major Debt Covenants (as of June 30, 2025) | Covenant | Requirement | As of June 30, 2025 | | :---------------------- | :------- | :----------------- | | Leverage Ratio | ≤ 60.0% | 42.4 % | | Fixed Charge Coverage Ratio | ≥ 1.50x | 3.0 | | Tangible Net Worth (USD thousands) | ≥ $504,476 | $679,724 | | Secured Debt | ≤ 30.0% | — % | | Minimum Debt Service Coverage Ratio | ≥ 2.0 | 3.3 | [Investment Activity](index=13&type=section&id=Investment%20Activity) [2025 Property Investments](index=13&type=section&id=11.1%202025%20Property%20Investments) In 2025, the company acquired a TRT Recovery behavioral specialty facility in Cartersville, GA, for **$9.504 million**, with **100.0%** occupancy at acquisition 2025 Property Investments | Property | Market | Property Type | Acquisition Date | Occupancy at Acquisition | Purchase Price (USD thousands) | Area (sq ft) | | :----------- | :------------- | :------- | :--------- | :----------- | :---------------- | :-------------- | | TRT Recovery | Cartersville, GA | BSF | March 6, 2025 | 100.0 % | $9,504 | 38,339 | - The lease for the Cartersville, GA property commenced on **April 4, 2025**[47](index=47&type=chunk) [Portfolio Diversification](index=14&type=section&id=Portfolio%20Diversification) [Diversification by Property Type, State, and Tenant](index=14&type=section&id=12.1%20Diversification%20by%20Property%20Type,%20State,%20and%20Tenant) The company's portfolio is diversified across property types, states, and tenants, with medical office buildings as the largest property type and LifePoint Health as the top tenant Annualized Rent by Property Type | Property Type | Annualized Rent (%) | | :--------------------------------- | :----------- | | Medical Office Building (MOB) | 36.3 % | | Inpatient Rehabilitation Facility (IRF) | 19.4 % | | Acute Inpatient Behavioral (AIB) | 13.0 % | | Specialty Center (SC) | 10.2 % | | Physician Clinic (PC) | 8.4 % | | Behavioral Specialty Facility (BSF) | 6.7 % | | Surgical Center and Hospital (SCH) | 3.9 % | | Long-Term Acute Care Hospital (LTACH) | 2.1 % | | **Total** | 100.0 % | Annualized Rent by State | State | Annualized Rent (%) | | :------------- | :----------- | | Texas (TX) | 16.9 % | | Illinois (IL) | 11.7 % | | Ohio (OH) | 9.8 % | | Florida (FL) | 8.1 % | | Pennsylvania (PA) | 5.9 % | | All Other | 47.6 % | | **Total** | 100.0 % | Annualized Rent by Tenant | Tenant | Annualized Rent (%) | | :--------------------------------- | :----------- | | LifePoint Health (LifePoint) | 8.8 % | | US Healthvest | 7.5 % | | Assurance Health (Assurance) | 3.0 % | | Summit Behavioral Healthcare (Summit) | 3.0 % | | Post Acute Medical (PAM) | 2.8 % | | Worcester Behavioral Innovations Hospital (Worcester) | 2.5 % | | Oceans Behavioral (Oceans) | 2.4 % | | Blue Cross Blue Shield of Louisiana (BCBS of LA) | 2.3 % | | Radiology Regional | 2.2 % | | UPMC - University of Pittsburgh Medical Center (UPMC) | 2.2 % | | All Other | 63.3 % | | **Total** | 100.0 % | [Lease Expirations](index=15&type=section&id=Lease%20Expirations) [Lease Expiration Schedule](index=15&type=section&id=13.1%20Lease%20Expiration%20Schedule) As of June 30, 2025, the portfolio occupancy was approximately **90.7%**, with lease expirations from 2025 to 2045, and **2026** having the most expiring leases Lease Expiration Schedule | Year | Number of Expiring Leases | Expiring Leased Area (thousands of sq ft) | Percentage of Area (%) | Annualized Rent Amount (USD thousands) | Percentage of Annualized Rent (%) | | :---------- | :----------- | :-------------------- | :------------- | :-------------------- | :--------------- | | 2025 | 26 | 203 | 5.0 % | $4,870 | 4.5 % | | 2026 | 82 | 594 | 14.6 % | $13,182 | 12.2 % | | 2027 | 63 | 363 | 8.9 % | $7,591 | 7.0 % | | 2028 | 62 | 398 | 9.8 % | $8,468 | 7.8 % | | 2029 | 42 | 352 | 8.7 % | $8,961 | 8.3 % | | 2030 | 28 | 199 | 4.9 % | $4,874 | 4.5 % | | 2031 | 25 | 363 | 8.9 % | $10,064 | 9.3 % | | 2032 | 18 | 169 | 4.2 % | $2,784 | 2.6 % | | 2033 | 14 | 80 | 2.0 % | $1,549 | 1.4 % | | 2034 | 21 | 304 | 7.5 % | $11,832 | 10.9 % | | Thereafter | 38 | 981 | 24.1 % | $32,464 | 30.1 % | | Month-to-Month | 18 | 57 | 1.4 % | $1,485 | 1.4 % | | **Total** | 437 | 4,063 | 100.0 % | $108,124 | 100.0 % | - As of June 30, 2025, the total portfolio occupancy rate was approximately **90.7%**, excluding real estate assets held for sale[58](index=58&type=chunk) - Lease expirations range from **2025** through **2045**[58](index=58&type=chunk) [Property Locations](index=16&type=section&id=Property%20Locations) [Geographic Distribution of Properties](index=16&type=section&id=14.1%20Geographic%20Distribution%20of%20Properties) Approximately **50%** of property revenue comes from MSAs with populations over **1 million**, and **92%** from areas over **100,000**, demonstrating a broad national footprint - Approximately **50%** of the company's property revenue is derived from Metropolitan Statistical Areas (MSAs) with populations exceeding **1,000,000**, and approximately **92%** from statistical areas with populations over **100,000**[60](index=60&type=chunk) - The property portfolio is broadly distributed across multiple states and metropolitan areas, including major regions like **Chicago-Naperville-Elgin, IL**, **Dallas-Fort Worth-Arlington, TX**, and **Orlando-Kissimmee-Sanford, FL**[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) [Reporting Definitions](index=23&type=section&id=Reporting%20Definitions) [Key Financial and Operational Terms](index=23&type=section&id=15.1%20Key%20Financial%20and%20Operational%20Terms) This section defines key financial and operational terms used in the report, including various property types and non-GAAP financial measures - Acute Inpatient Behavioral Treatment Facility (AIB): Provides inpatient clinical services for mental health and/or substance abuse diagnoses[68](index=68&type=chunk) - AFFO Adjusted for Acquisitions: Adjusts AFFO to reflect real estate properties acquired during the period as if acquired on the first day of the reporting period[69](index=69&type=chunk) - Annualized Rent: Current month's base rent multiplied by 12[70](index=70&type=chunk) - Behavioral Specialty Facility (BSF): Provides clinical services for mental health and/or substance abuse diagnoses[71](index=71&type=chunk) - EBITDAre and Adjusted EBITDAre: NAREIT-defined EBITDAre, and Adjusted EBITDAre excluding non-cash stock-based compensation amortization[72](index=72&type=chunk) - Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO): NAREIT-defined FFO, and AFFO excluding certain expenses and non-cash items, used to evaluate REIT operating performance[74](index=74&type=chunk)[76](index=76&type=chunk) - Inpatient Rehabilitation Facility (IRF): An independent rehabilitation hospital or a unit within an acute care hospital providing intensive rehabilitation programs[78](index=78&type=chunk) - Long-Term Acute Care Hospital (LTACH): Provides inpatient services for patients with complex medical conditions requiring more intensive care than most skilled nursing facilities[79](index=79&type=chunk) - Medical Office Building (MOB): Occupied by healthcare providers, available for lease to physicians, physician practice groups, hospitals, health systems, or other healthcare providers[80](index=80&type=chunk) - Metropolitan Statistical Area (MSA or MISA): A geographic area defined by the Office of Management and Budget with a high population density core and close economic ties[81](index=81&type=chunk) - Net Operating Income (NOI): A non-GAAP financial measure defined as net income or loss from properties and other investments, excluding general and administrative expenses, depreciation and amortization, gain or loss on real estate sales, interest expense, and income tax expense[82](index=82&type=chunk) - Physician Clinic (PC): A standalone medical facility primarily used for outpatient care[83](index=83&type=chunk) - Specialty Center (SC): Includes various centers such as oncology centers, dialysis centers, urgent care centers, and plasma centers[84](index=84&type=chunk) - Surgical Center and Hospital (SCH): Includes surgical centers not requiring overnight stays and specialty hospitals focused on specific conditions and procedures, such as cardiovascular and orthopedic surgeries[85](index=85&type=chunk) - Total Capitalization: Debt plus stockholders' equity plus accumulated depreciation[86](index=86&type=chunk) [Disclaimers](index=26&type=section&id=Disclaimers) [Forward-Looking Statements and Non-GAAP Financial Measures](index=26&type=section&id=16.1%20Forward-Looking%20Statements%20and%20Non-GAAP%20Financial%20Measures) This section outlines disclaimers regarding forward-looking statements, which involve risks and uncertainties, and non-GAAP financial measures, which are reconciled to GAAP but may not be comparable to other REITs - Forward-looking statements reflect management's current expectations and projections about future events, but involve numerous risks and uncertainties and should not be considered guarantees of future performance[88](index=88&type=chunk)[89](index=89&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements, unless required by applicable law[90](index=90&type=chunk) - This report includes non-GAAP financial measures such as **EBITDAre**, **Adjusted EBITDAre**, **NOI**, **FFO**, and **AFFO**, which are reconciled to the most directly comparable GAAP financial measures[91](index=91&type=chunk) - The non-GAAP financial measures used by the company may not be comparable to similar measures used by other real estate investment trusts[91](index=91&type=chunk)

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited condensed consolidated financial statements, covering balance sheets, operations, comprehensive loss, equity, cash flows, and accounting notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (June 30, 2025 vs. December 31, 2024) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total real estate properties, net | $895,351 | $903,322 | | Cash and cash equivalents | $4,863 | $4,384 | | Assets held for sale, net | $5,465 | $6,755 | | Other assets, net | $60,613 | $78,102 | | **Total assets** | **$966,292** | **$992,563** | | Debt, net | $500,077 | $485,955 | | Total liabilities | $528,472 | $516,598 | | Total stockholders' equity | $437,820 | $475,965 | | **Total liabilities and stockholders' equity** | **$966,292** | **$992,563** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | | :-------------------- | :------------ | :------------ | | Rental income | $30,128 | $27,905 | | Other operating interest | $(1,043) | $(389) | | Total Revenues | $29,085 | $27,516 | | Property operating | $5,585 | $5,572 | | General and administrative | $10,559 | $4,760 | | Depreciation and amortization | $10,879 | $10,792 | | Total Expenses | $27,023 | $21,124 | | Gains on sale, net of impairments | $640 | $(140) | | Interest expense | $(6,592) | $(5,986) | | Credit loss reserve | $(8,672) | $(11,000) | | Interest and other income, net | $5 | $307 | | Total Other (Expense) Income | $(14,619) | $(16,819) | | **NET LOSS** | **$(12,557)** | **$(10,427)** | | Net loss per common share - Basic | $(0.50) | $(0.42) | | Net loss per common share - Diluted | $(0.50) | $(0.42) | Condensed Consolidated Statements of Operations (Six Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | | :-------------------- | :------------ | :------------ | | Rental income | $59,858 | $56,247 | | Other operating interest | $(695) | $602 | | Total Revenues | $59,163 | $56,849 | | Property operating | $11,680 | $11,363 | | General and administrative | $15,659 | $9,314 | | Depreciation and amortization | $21,822 | $21,054 | | Total Expenses | $49,161 | $41,731 | | Gains on sale, net of impairments | $640 | $(140) | | Interest expense | $(12,944) | $(11,048) |\n| Credit loss reserve | $(8,672) | $(11,000) | | Interest and other income, net | $8 | $308 | | Total Other (Expense) Income | $(20,968) | $(21,880) | | **NET LOSS** | **$(10,966)** | **$(6,762)** | | Net loss per common share - Basic | $(0.47) | $(0.31) | | Net loss per common share - Diluted | $(0.47) | $(0.31) | - General and administrative expenses for the three and six months ended June 30, 2025, included severance and transition-related expenses totaling **$1.3 million** and non-cash stock-based compensation expense totaling **$7.1 million** and **$9.8 million**, respectively, which includes accelerated amortization of **$4.6 million** related to a termination in the second quarter of 2025. This is a significant increase compared to **$2.5 million** and **$4.9 million** in non-cash stock-based compensation for the same periods in 2024[9](index=9&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Condensed Consolidated Statements of Comprehensive Loss (Three and Six Months Ended June 30) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | NET LOSS | $(12,557) | $(10,427) | $(10,966) | $(6,762) | | Other comprehensive (loss) income: | | | | | | (Decrease) increase in fair value of cash flow hedges | $(1,463) | $2,703 | $(4,876) | $10,573 | | Reclassification for amounts recognized as interest expense | $(1,818) | $(2,703) | $(3,634) | $(5,500) | | Total other comprehensive (loss) income | $(3,281) | $— | $(8,510) | $5,073 | | **COMPREHENSIVE LOSS** | **$(15,838)** | **$(10,427)** | **$(19,476)** | **$(1,689)** | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Changes in Stockholders' Equity (Six Months Ended June 30, 2025) | Metric (in thousands) | Balance at Dec 31, 2024 | Issuance of common stock, net | Stock-based compensation, net | Shares withheld on vesting | Decrease in fair value of cash flow hedges | Reclassification for interest expense | Net loss | Dividends to common stockholders | Balance at Jun 30, 2025 | | :-------------------- | :---------------------- | :---------------------------- | :---------------------------- | :------------------------- | :----------------------------------------- | :------------------------------------ | :------- | :------------------------------- | :---------------------- | | Common Stock (Shares) | 28,242 | — | 228 | (102) | — | — | — | — | 28,368 | | Common Stock (Amount) | $282 | $— | $2 | $— | $— | $— | $— | $— | $284 | | Additional Paid-in Capital | $704,524 | $(121) | $9,830 | $(1,735) | $— | $— | $— | $— | $712,498 | | Cumulative Net Income | $85,675 | $— | $— | $— | $— | $— | $(10,966) | $— | $74,709 | | Accumulated Other Comprehensive Income | $17,631 | $— | $— | $— | $(4,876) | $(3,634) | $— | $— | $9,121 | | Cumulative Dividends | $(332,147) | $— | $— | $— | $— | $— | $— | $(26,645) | $(358,792) | | **Total Stockholders' Equity** | **$475,965** | **$(121)** | **$9,832** | **$(1,735)** | **$(4,876)** | **$(3,634)** | **$(10,966)** | **$(26,645)** | **$437,820** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | | :-------------------- | :------------ | :------------ | | Net cash provided by operating activities | $28,208 | $29,372 | | Net cash used in investing activities | $(13,032) | $(68,797) | | Net cash (used in) provided by financing activities | $(14,697) | $35,526 | | Increase (decrease) in cash, cash equivalents and restricted cash | $479 | $(3,899) | | Cash, cash equivalents and restricted cash, beginning of period | $4,384 | $4,633 | | Cash, cash equivalents and restricted cash, end of period | $4,863 | $734 | - Operating activities provided **$28.2 million** in cash for the six months ended June 30, 2025, a slight decrease from **$29.4 million** in 2024. Investing activities used significantly less cash in 2025 (**$13.0 million**) compared to 2024 (**$68.8 million**), primarily due to fewer real estate acquisitions. Financing activities shifted from providing **$35.5 million** in 2024 to using **$14.7 million** in 2025, mainly due to lower net borrowings on the revolving credit facility and no proceeds from common stock issuance in 2025[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=11&type=section&id=NOTE%201.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Details the Company's healthcare real estate business, accounting policies, financial statement presentation, and the impact of recently issued accounting pronouncements - Community Healthcare Trust Incorporated is a fully-integrated healthcare real estate company owning and acquiring properties leased to healthcare providers. As of June 30, 2025, it had gross investments of approximately **$1.2 billion** in **200 properties** across **36 states**, with an occupancy rate of approximately **90.7%** and a weighted average remaining lease term of approximately **6.6 years**[20](index=20&type=chunk) - The Company operates and manages its business as one reportable operating segment, with the CEO acting as the chief operating decision maker[23](index=23&type=chunk) - New accounting pronouncements, ASU 2023-09 (Income Taxes) and ASU 2024-03 (Disaggregation of Income Statement Expenses), are effective for annual periods beginning after December 15, 2024, and December 15, 2026, respectively. While not expected to impact financial statements, they will require incremental disclosures[25](index=25&type=chunk)[26](index=26&type=chunk) [NOTE 2. REAL ESTATE INVESTMENTS](index=12&type=section&id=NOTE%202.%20REAL%20ESTATE%20INVESTMENTS) Details the Company's real estate investments, categorized by property type, geographic location, and primary tenant, showcasing portfolio diversification Real Estate Investments by Property Type (as of June 30, 2025) | Property Type | of Properties | Gross Investment (in thousands) | | :---------------------------- | :-------------- | :------------------------------ | | Medical Office Building | 93 | $472,188 | | Inpatient Rehabilitation Hospitals | 9 | $198,319 | | Acute Inpatient Behavioral | 5 | $130,535 | | Specialty Centers | 36 | $116,771 | | Physician Clinics | 35 | $108,634 | | Behavioral Specialty Facilities | 13 | $75,271 | | Surgical Centers and Hospitals | 7 | $48,644 | | Long-term Acute Care Hospitals | 2 | $21,484 | | **Total** | **200** | **$1,171,846** | Real Estate Investments by State (as of June 30, 2025) | State | of Properties | Gross Investment (in thousands) | | :---------- | :-------------- | :------------------------------ | | Texas | 16 | $184,275 | | Illinois | 20 | $140,956 | | Ohio | 25 | $115,518 | | Florida | 25 | $110,324 | | Pennsylvania | 16 | $68,043 | | All Others | 98 | $552,730 | | **Total** | **200** | **$1,171,846** | Real Estate Investments by Primary Tenant (as of June 30, 2025) | Primary Tenant | of Properties | Gross Investment (in thousands) | | :---------------------- | :-------------- | :------------------------------ | | Lifepoint Health | 5 | $86,712 | | US HealthVest | 3 | $77,964 | | All Others (less than 4%) | 192 | $1,007,170 | | **Total** | **200** | **$1,171,846** | [NOTE 3. REAL ESTATE LEASES](index=13&type=section&id=NOTE%203.%20REAL%20ESTATE%20LEASES) Details the Company's role as lessor and lessee, outlining lease terms, future minimum payments, purchase options, and ground lease obligations Future Minimum Lease Payments (Lessor) (in thousands) | Year | Amount | | :-------------------- | :-------- | | 2025 (six months ended December 31) | $51,112 | | 2026 | $96,061 | | 2027 | $88,618 | | 2028 | $81,757 | | 2029 | $71,842 | | 2030 and thereafter | $383,555 | | **Total** | **$772,945** | - As of June 30, 2025, the Company had an aggregate gross investment of approximately **$37.4 million** in **twelve real estate properties** with unexercised purchase options[31](index=31&type=chunk) Future Lease Payments (Lessee) for Ground Leases (in thousands) | Year | Operating Lease | Financing Lease | | :-------------------- | :-------------- | :-------------- | | 2025 (six months ended December 31) | $22 | $77 | | 2026 | $44 | $154 | | 2027 | $45 | $154 | | 2028 | $46 | $154 | | 2029 | $47 | $154 | | 2030 and thereafter | $1,055 | $6,649 | | **Total undiscounted lease payments** | **$1,259** | **$7,342** | | Discount | $(503) | $(4,088) | | **Lease liabilities** | **$756** | **$3,254** | [NOTE 4. REAL ESTATE ACQUISITION, DISPOSITIONS, AND ASSET HELD FOR SALE](index=15&type=section&id=NOTE%204.%20REAL%20ESTATE%20ACQUISITION%2C%20DISPOSITIONS%2C%20AND%20ASSET%20HELD%20FOR%20SALE) Details the Company's real estate acquisition and disposition activities, including a Q1 2025 acquisition, property sales, lease reclassifications, and assets held for sale with impairment charges - During Q1 2025, the Company acquired a behavioral specialty facility in Cartersville, GA, for approximately **$9.7 million** cash consideration. The property is **100% leased** with an expiration in **2040**[36](index=36&type=chunk) - In Q2 2025, the Company disposed of an Ohio building for **$0.6 million** net proceeds, recognizing a **$0.2 million** gain. Additionally, an operating lease was amended to a sales-type lease, reclassifying **$3.7 million** of real estate to other assets and recognizing a **$1.3 million** gain[37](index=37&type=chunk)[38](index=38&type=chunk) - The Company had one property classified as held for sale as of June 30, 2025, on which impairment charges of **$0.9 million** were recorded in Q2 2025[39](index=39&type=chunk) [NOTE 5. DEBT, NET](index=16&type=section&id=NOTE%205.%20DEBT%2C%20NET) Details the Company's debt structure, focusing on the Credit Facility, including outstanding amounts, maturity dates, interest rates, and financial covenant compliance Company's Debt (in thousands) | Debt Type | June 30, 2025 | December 31, 2024 | Maturity Dates | | :-------------------- | :------------ | :---------------- | :------------- | | Revolving Credit Facility | $226,000 | $212,000 | 10/29 | | A-4 Term Loan, net | $124,692 | $124,635 | 3/28 | | A-5 Term Loan, net | $149,385 | $149,320 | 3/30 | | **Total** | **$500,077** | **$485,955** | | - The Credit Facility includes a **$400.0 million** revolving credit facility (maturing Oct 2029) and **$275.0 million** in term loans (A-4 maturing Mar 2028, A-5 maturing Mar 2030). As of June 30, 2025, **$226.0 million** was outstanding on the Revolving Credit Facility, with **$174.0 million** remaining borrowing capacity[43](index=43&type=chunk)[44](index=44&type=chunk) - The Company has fixed interest rates on the **$275.0 million** Term Loans and **$75.0 million** of the Revolving Credit Facility through interest rate swaps, with an aggregate fixed weighted average interest rate of approximately **4.7%** and **3.8%** respectively. The floating rate for the unhedged **$151.0 million** of the Revolving Credit Facility was approximately **6.0%** at June 30, 2025[46](index=46&type=chunk) [NOTE 6. DERIVATIVE FINANCIAL INSTRUMENTS](index=17&type=section&id=NOTE%206.%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) Details the Company's use of derivative financial instruments, primarily interest rate swaps, to manage interest rate risk, including fair value disclosures and cash flow hedge accounting impact - The Company uses interest rate swaps to hedge interest rate risk, aiming to stabilize interest expense. As of June 30, 2025, it had **fifteen outstanding interest rate derivatives** designated as cash flow hedges for notional amounts totaling **$350.0 million**, maturing between **2026 and 2030**[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) Fair Value of Interest Rate Swaps (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Interest rate swaps (Other assets, net) | $9,121 | $17,631 | - Changes in the fair value of cash flow hedges are recorded in accumulated other comprehensive income (AOCI) and reclassified to interest expense as payments are made. An estimated **$5.2 million** will be reclassified from AOCI as a decrease to interest expense over the next **twelve months**[53](index=53&type=chunk)[54](index=54&type=chunk) [NOTE 7. STOCKHOLDERS' EQUITY](index=19&type=section&id=NOTE%207.%20STOCKHOLDERS'%20EQUITY) Provides a reconciliation of common stock balances and details the Company's At-The-Market (ATM) Program for issuing common stock Common Stock Balance Reconciliation (in thousands) | Metric | Six Months Ended June 30, 2025 | Year Ended December 31, 2024 | | :-------------------------- | :----------------------------- | :--------------------------- | | Balance, beginning of period | 28,242 | 27,613 | | Issuance of common stock | — | 313 | | Vested RSUs | 28 | 11 | | Restricted stock issued, net of withheld shares and forfeitures | 98 | 305 | | **Balance, end of period** | **28,368** | **28,242** | - The Company amended its ATM Program on February 18, 2025, allowing it to issue and sell up to **$300.0 million** in common stock. No shares were issued under this program during the six months ended June 30, 2025, leaving the full **$300.0 million** capacity remaining[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) [NOTE 8. NET LOSS PER COMMON SHARE](index=20&type=section&id=NOTE%208.%20NET%20LOSS%20PER%20COMMON%20SHARE) Presents the computation of basic and diluted net loss per common share for the three and six months ended June 30, 2025 and 2024 Net Loss Per Common Share (Three and Six Months Ended June 30) | Metric (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(12,557) | $(10,427) | $(10,966) | $(6,762) | | Participating securities' share in earnings | $(770) | $(657) | $(1,528) | $(1,303) | | Net loss, less participating securities' share in earnings | $(13,327) | $(11,084) | $(12,494) | $(8,065) | | Weighted average Common Shares outstanding–Basic | 26,803 | 26,479 | 26,768 | 26,388 | | Weighted average Common Shares outstanding–Diluted | 26,803 | 26,479 | 26,768 | 26,388 | | **Basic Net Loss Per Common Share** | **$(0.50)** | **$(0.42)** | **$(0.47)** | **$(0.31)** | | **Diluted Net Loss Per Common Share** | **$(0.50)** | **$(0.42)** | **$(0.47)** | **$(0.31)** | [NOTE 9. STOCK INCENTIVE PLAN](index=20&type=section&id=NOTE%209.%20STOCK%20INCENTIVE%20PLAN) Summarizes the Company's restricted stock award and RSU activity, including grants, vesting, forfeitures, compensation expenses, and accelerated amortization from an executive termination Restricted Stock Award Activity (in thousands) | Metric (Dollars and shares) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Stock-based awards, beginning of period | 1,598 | 1,380 | 1,560 | 1,374 | | Total stock granted | 84 | 54 | 203 | 144 | | Vested shares | (225) | (17) | (306) | (101) | | Forfeited shares | (2) | — | (2) | — | | Stock-based awards, end of period | 1,455 | 1,417 | 1,455 | 1,417 | | Amortization expense | $6,735 | $2,152 | $9,360 | $4,260 | - Amortization expense for restricted stock awards for the three and six months ended June 30, 2025, includes **$4.4 million** in accelerated amortization due to an executive termination[68](index=68&type=chunk) - The Company recognized **$4.6 million** of accelerated amortization expense in Q2 2025 due to the termination of its former Executive Vice President, Asset Management, which resulted in the immediate vesting of **198,015 restricted shares** and **18,275 restricted stock units**[74](index=74&type=chunk) [NOTE 10. OTHER ASSETS, NET](index=23&type=section&id=NOTE%2010.%20OTHER%20ASSETS%2C%20NET) Provides a detailed breakdown of the Company's other assets, net, including receivables, fair value of interest rate swaps, notes receivable, and significant credit loss reserves Other Assets, Net (in thousands) | Asset Type | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :------------ | :---------------- | | Straight-line rent receivables, net | $22,248 | $20,426 | | Fair value of interest rate swaps | $9,121 | $17,631 | | Sales-type lessor receivable | $8,004 | $3,012 | | Notes receivable, net of credit loss reserve | $2,080 | $15,727 | | Mortgage note receivable | $2,000 | $2,000 | | Accounts and interest receivables, net | $1,709 | $4,138 | | **Total Other assets, net** | **$60,613** | **$78,102** | - In Q2 2025, the Company recognized an additional credit loss reserve of approximately **$8.7 million** for notes and **$1.7 million** for interest receivable related to a geriatric inpatient behavioral hospital tenant, due to collectability concerns[79](index=79&type=chunk) - A note receivable secured by seven long-term acute care hospitals and one inpatient rehabilitation hospital was prepaid in full in June 2025, with a balance of **$3.0 million** at December 31, 2024[78](index=78&type=chunk) [NOTE 11. OTHER LIABILITIES, NET](index=24&type=section&id=NOTE%2011.%20OTHER%20LIABILITIES%2C%20NET) Provides a breakdown of the Company's other liabilities, net, including prepaid rent, security deposits, and lease intangibles Other Liabilities, Net (in thousands) | Liability Type | June 30, 2025 | December 31, 2024 | | :------------------------------ | :------------ | :---------------- | | Prepaid rent | $5,813 | $6,504 | | Security deposits | $2,677 | $2,975 | | Below-market lease intangibles, net | $1,940 | $2,359 | | Financing lease liability | $3,254 | $3,262 | | Operating lease liability | $756 | $763 | | **Total Other liabilities, net** | **$14,451** | **$16,354** | [NOTE 12. FAIR VALUE OF FINANCIAL INSTRUMENTS](index=25&type=section&id=NOTE%2012.%20FAIR%20VALUE%20OF%20FINANCIAL%20INSTRUMENTS) Describes methods and assumptions for estimating fair value of financial instruments, including cash, notes, Credit Facility borrowings, and derivatives, with a table detailing carrying and fair values Fair Values and Carrying Values of Financial Instruments (in thousands) | Instrument | June 30, 2025 Carrying Value | June 30, 2025 Fair Value | December 31, 2024 Carrying Value | December 31, 2024 Fair Value | | :---------------------------------- | :----------------------------- | :----------------------- | :------------------------------- | :--------------------------- | | Notes and mortgage note receivable, level 2 | $4,080 | $4,170 | $7,180 | $7,248 | | Notes receivable, net of credit loss, level 3 | $— | $— | $10,547 | $10,547 | | Interest rate swap asset | $9,121 | $9,121 | $17,631 | $17,631 | - Fair value estimates for cash and cash equivalents use Level 1 inputs, while notes and mortgage notes receivable, Credit Facility borrowings, and derivative financial instruments primarily use Level 2 inputs. Notes receivable, net of credit loss, are classified as Level 3 due to valuation based on underlying collateral[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) [NOTE 13. COMMITMENTS AND CONTINGENCIES](index=26&type=section&id=NOTE%2013.%20COMMITMENTS%20AND%20CONTINGENCIES) Outlines the Company's commitments for tenant and capital improvements, along with its legal proceedings - As of June 30, 2025, the Company had approximately **$29.4 million** in commitments for tenant improvements, with **$7.2 million** related to one ongoing redevelopment project. It also had **$4.1 million** in commitments for capital improvement projects, with **$1.6 million** related to two ongoing redevelopment projects[93](index=93&type=chunk)[94](index=94&type=chunk) - The Company is not aware of any pending or threatened litigation that would have a material adverse effect on its financial statements[95](index=95&type=chunk) [NOTE 14. SUBSEQUENT EVENTS](index=26&type=section&id=NOTE%2014.%20SUBSEQUENT%20EVENTS) Reports significant events after June 30, 2025, including a dividend declaration, a property acquisition, and RSU issuances - On July 24, 2025, the Board declared a quarterly common stock dividend of **$0.4725 per share**, payable August 22, 2025[96](index=96&type=chunk) - On July 9, 2025, the Company acquired an inpatient rehabilitation facility in Florida for approximately **$26.5 million**, funded by the Revolving Credit Facility and cash on hand. The property is **100% leased** with an expiration in **2040**[97](index=97&type=chunk) - On July 24, 2025, the Company granted performance-based and time-based RSUs to executive officers, with vesting tied to Absolute TSR, Relative TSR, and continued service through June 2026, 2027, and 2028[98](index=98&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on financial condition, operations, and cash flows, discussing key trends, acquisitions, credit losses, non-GAAP measures, liquidity, and capital resources [Overview](index=27&type=section&id=Overview) - Community Healthcare Trust Incorporated is a self-administered, self-managed healthcare REIT that acquires and owns properties leased to hospitals, doctors, healthcare systems, or other healthcare service providers[102](index=102&type=chunk) [Trends and Matters Impacting Operating Results](index=27&type=section&id=Trends%20and%20Matters%20Impacting%20Operating%20Results) Management monitors factors impacting operations, including acquisitions, dispositions, pipeline, leased square footage, credit losses, accelerated compensation amortization, and inflation - The Company acquired a behavioral specialty facility for approximately **$9.7 million** in Q1 2025, which became a recognized real estate purchase in Q2 2025[104](index=104&type=chunk) - A subsequent acquisition of an inpatient rehabilitation facility in Florida for approximately **$26.5 million** occurred on July 9, 2025[105](index=105&type=chunk) - The Company has **six properties** under definitive purchase agreements for an aggregate expected purchase price of approximately **$146.0 million**, anticipated to close throughout **2025, 2026, and 2027**[106](index=106&type=chunk) - As of June 30, 2025, the real estate portfolio was approximately **90.7% leased**, excluding one property held for sale[108](index=108&type=chunk) - An additional credit loss reserve of approximately **$8.7 million** for notes and **$1.7 million** for interest receivable was recognized in Q2 2025 due to collectability concerns with a geriatric inpatient behavioral hospital tenant[111](index=111&type=chunk) - The termination of the former Executive Vice President, Asset Management, resulted in **$4.6 million** of accelerated amortization expense for unvested restricted shares and RSUs, plus **$1.3 million** in severance and transition-related expenses[112](index=112&type=chunk) - Inflation and rising interest rates pose risks, potentially increasing expenses, capital expenditures, and variable-rate borrowing costs, although many leases include provisions for annual rent increases[113](index=113&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Analyzes the Company's financial performance for the three and six months ended June 30, 2025 and 2024, highlighting changes in revenues, expenses, gains, interest expense, and credit loss reserves [Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=29&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202024) - Rental income increased by **$2.2 million (8.0%)** due to properties acquired in 2024 and 2025 (**$0.8 million**) and a **$1.2 million** increase from the reversal of revenues related to a geriatric behavioral hospital tenant[115](index=115&type=chunk) - General and administrative expenses increased by **$5.8 million**, primarily due to **$4.6 million** in non-cash accelerated amortization of deferred compensation and **$1.3 million** in severance and transition-related expenses from an executive termination[117](index=117&type=chunk) - Interest expense increased by **$0.6 million (10.1%)** due to higher weighted average balance and interest rates on the Credit Facility[119](index=119&type=chunk) - An additional credit loss reserve of **$8.7 million** was recorded in Q2 2025 for notes receivable with a geriatric inpatient behavioral hospital tenant, following an **$11.0 million** reserve in Q2 2024[120](index=120&type=chunk) [Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=30&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030%2C%202024) - Rental income increased by **$3.6 million (6.4%)**, driven by **$2.7 million** from acquired properties and **$0.4 million** from the reversal of revenues related to the geriatric behavioral hospital tenant[122](index=122&type=chunk) - General and administrative expenses increased by **$6.3 million (68.1%)**, mainly due to **$4.6 million** in accelerated amortization and **$1.3 million** in severance/transition expenses from an executive termination, plus a **$0.7 million** increase in other compensation expense[125](index=125&type=chunk)[128](index=128&type=chunk) - Interest expense increased by **$1.9 million (17.2%)** due to higher weighted average balance and interest rates on the Credit Facility, including the replacement of maturing interest rate swaps with higher-rate forward-starting swaps[127](index=127&type=chunk) - Gains on sale, net of impairment, increased by **$0.8 million**, primarily from a **$1.3 million** gain on a sales-type lease and a **$0.2 million** gain on property sale, partially offset by a **$0.9 million** impairment on a property held for sale[126](index=126&type=chunk)[128](index=128&type=chunk) [Non-GAAP Financial Measures and Key Performance Indicators](index=32&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Key%20Performance%20Indicators) Presents and reconciles non-GAAP financial measures like FFO, AFFO, NOI, and EBITDAre, used to evaluate operating performance by excluding certain non-cash items and adjustments FFO and AFFO Reconciliation (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(12,557) | $(10,427) | $(10,966) | $(6,762) | | Real estate depreciation and amortization | 10,861 | 10,895 | 21,938 | 21,273 | | Gains on sale, net of impairments | (640) | 140 | (640) | 140 | | Credit loss reserve | 8,672 | 11,000 | 8,672 | 11,000 | | **FFO** | **6,336** | **11,608** | **19,004** | **25,651** | | Straight-line rent | (1,184) | 204 | (1,823) | (551) | | Stock-based compensation | 2,531 | 2,469 | 5,241 | 4,893 | | Accelerated amortization of deferred compensation | 4,591 | — | 4,591 | — | | Severance and transition related expenses | 1,311 | — | 1,311 | — | | **AFFO** | **$13,585** | **$14,281** | **$28,324** | **$29,993** | | FFO per diluted common share | $0.23 | $0.43 | $0.70 | $0.96 | | AFFO per diluted common share | $0.50 | $0.53 | $1.05 | $1.12 | NOI Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(12,557) | $(10,427) | $(10,966) | $(6,762) | | General and administrative (excluding severance) | 4,657 | 4,760 | 9,757 | 9,314 | | Severance and transition-related compensation | 5,902 | — | 5,902 | — | | Depreciation and amortization | 10,879 | 10,792 | 21,822 | 21,054 | | Gains on sale, net of impairments | (640) | 140 | (640) | 140 | | Credit loss reserve | 8,672 | 11,000 | 8,672 | 11,000 | | Interest expense | 6,592 | 5,986 | 12,944 | 11,048 | | Interest and other income, net | (5) | (307) | (8) | (308) | | **NOI** | **$23,500** | **$21,944** | **$47,483** | **$45,486** | EBITDAre and Adjusted EBITDAre Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(12,557) | $(10,427) | $(10,966) | $(6,762) | | Interest expense | 6,592 | 5,986 | 12,944 | 11,048 | | Depreciation and amortization | 10,879 | 10,792 | 21,822 | 21,054 | | Gains on sale, net of impairments | (640) | 140 | (640) | 140 | | **EBITDAre** | **$4,274** | **$6,491** | **$23,160** | **$25,480** | | Non-cash stock-based compensation expense | 2,531 | 2,469 | 5,241 | 4,893 | | Accelerated amortization of deferred compensation | 4,591 | — | 4,591 | — | | Credit loss reserve | 8,672 | 11,000 | 8,672 | 11,000 | | **Adjusted EBITDAre** | **$20,068** | **$19,960** | **$41,664** | **$41,373** | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the Company's liquidity management, financing policies, and cash flows, detailing the Credit Facility, acquisition pipeline, commitments, notes receivable, and equity programs - The Company's financing policy limits aggregate debt to **40% of total capitalization**, with the ratio at approximately **41.6%** as of June 30, 2025[150](index=150&type=chunk) - Primary liquidity sources include rental income, operating expense reimbursements, cash on hand, cash flows from operations, and proceeds from equity/debt issuances, the Revolving Credit Facility, or asset sales[151](index=151&type=chunk)[152](index=152&type=chunk) - As of June 30, 2025, the Company had **$226.0 million** outstanding on its Revolving Credit Facility (maturity Oct 2029) and **$275.0 million** in Term Loans (maturities 2028-2030), with **$174.0 million** remaining borrowing capacity on the Revolving Credit Facility[154](index=154&type=chunk) - The Company has an acquisition pipeline of **six properties** under definitive purchase agreements for an aggregate expected purchase price of approximately **$146.0 million**, anticipated to close throughout **2025, 2026, and 2027**[158](index=158&type=chunk) - Cash flows provided by operating activities were **$28.2 million** for the six months ended June 30, 2025, down from **$29.4 million** in 2024. Investing activities used **$13.0 million** in 2025, a significant decrease from **$68.8 million** in 2024. Financing activities used **$14.7 million** in 2025, compared to providing **$35.5 million** in 2024[164](index=164&type=chunk)[165](index=165&type=chunk)[167](index=167&type=chunk) - The Company declared a quarterly common stock dividend of **$0.4725 per share** on July 24, 2025, equating to an annualized dividend of **$1.89 per share**[170](index=170&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Addresses the Company's exposure to market interest rate risk and its use of derivative financial instruments to manage this risk, confirming no material changes since the previous annual report - The Company's income, cash flows, and fair values are sensitive to market interest rates. It uses derivative financial instruments, such as interest rate swaps, to hedge interest rate risks associated with borrowings, not for speculative purposes[172](index=172&type=chunk) - There were no material changes in the quantitative and qualitative disclosures about market risks presented in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, during the six months ended June 30, 2025[172](index=172&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Reports on the effectiveness of the Company's disclosure controls and procedures and any changes in internal control over financial reporting - The Company's management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2025[173](index=173&type=chunk) - There were no material changes in the Company's internal control over financial reporting during the quarter ended June 30, 2025[174](index=174&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) Confirms the Company is not involved in any pending or threatened litigation that would materially adversely affect its financial position, results of operations, or cash flows - The Company is not aware of any pending or threatened litigation that, if resolved against it, would have a material adverse effect on its consolidated financial position, results of operations, or cash flows[175](index=175&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) Refers to risk factors in the Annual Report on Form 10-K, highlighting material changes, specifically potential adverse effects from U.S. trade policy changes - No material changes to risk factors were reported other than potential adverse effects on business, financial condition, and results of operations from significant changes or discussions regarding U.S. trade policies, treaties, and tariffs[176](index=176&type=chunk)[177](index=177&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports on shares of common stock canceled to satisfy employee tax withholding obligations upon the vesting of stock-based awards during the quarter ended June 30, 2025 Shares Canceled for Employee Tax Withholding (Three Months Ended June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per share | | :-------------- | :------------------------------- | :--------------------------- | | April 1 - April 30 | — | $— | | May 1 - May 30 | 78 | $16.36 | | June 1 - June 30 | 2 | $16.77 | | **Total** | **80** | | [Item 3. Defaults Upon Senior Securities](index=40&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) States that there were no defaults upon senior securities during the reporting period - There were no defaults upon senior securities during the reporting period[179](index=179&type=chunk) [Item 4. Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Indicates that there are no mine safety disclosures to report - There are no mine safety disclosures to report[180](index=180&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) Details recent changes to equity vesting conditions upon retirement, reports on RSU issuances to executive officers, and provides a statement on Rule 10b5-1 trading arrangements - Effective July 24, 2025, the Board approved an amendment to equity vesting upon retirement, requiring at least one year of continuous employment and one year's written notice of retirement for award shares to vest[181](index=181&type=chunk) - On July 24, 2025, performance-based and time-based RSUs were granted to executive officers, with vesting contingent on Absolute TSR, Relative TSR (measured over three years from July 1, 2025), and ratable vesting for time-based RSUs on June 30, 2026, 2027, and 2028[182](index=182&type=chunk) - No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[183](index=183&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the report, including corporate documents, certifications, and XBRL-related files - The report includes various exhibits such as the Corporate Charter, Amended and Restated Bylaws, Severance Agreement, CEO and CFO certifications (31.1, 31.2, 32.1), and Inline XBRL documents[184](index=184&type=chunk) SIGNATURES Contains the official signatures of the registrant's authorized officers, confirming the submission of the report - The report was signed on July 29, 2025, by David H. Dupuy, Chief Executive Officer and President, and William G. Monroe IV, Executive Vice President and Chief Financial Officer[191](index=191&type=chunk)

Core Viewpoint - Community Healthcare Trust Incorporated reported a net loss of approximately $12.6 million, or $0.50 per diluted common share, for the three months ended June 30, 2025, alongside FFO and AFFO of $0.23 and $0.50 per diluted common share, respectively [1][9][12]. Financial Performance - The Company recorded a net loss of $12.6 million for Q2 2025, compared to a net loss of $10.4 million in Q2 2024 [9][10]. - FFO for Q2 2025 was $6.3 million, down from $11.6 million in Q2 2024, while AFFO was $13.6 million compared to $14.3 million in the same period last year [12][10]. - The Company’s revenues for Q2 2025 included rental income of $30.1 million, an increase from $27.9 million in Q2 2024 [9][10]. Operational Highlights - As of June 30, 2025, the Company had investments of approximately $1.2 billion in 200 real estate properties across 36 states, totaling about 4.5 million square feet [3]. - The Company recorded a $1.7 million reserve on interest receivable and an $8.7 million credit loss reserve related to a geriatric behavioral hospital tenant, impacting FFO and AFFO [6][17]. - The Company acquired a behavioral specialty facility for approximately $9.7 million and an inpatient rehabilitation facility for approximately $26.5 million during the second quarter of 2025 [6][10]. Balance Sheet Overview - Total assets as of June 30, 2025, were approximately $966.3 million, down from $992.6 million at the end of 2024 [8]. - Total liabilities increased to $528.5 million from $516.6 million at the end of 2024, with net debt at $500.1 million [8]. - Stockholders' equity decreased to $437.8 million from $476.0 million at the end of 2024 [8]. Dividend Declaration - The Company’s Board of Directors declared a quarterly common stock dividend of $0.4725 per share, payable on August 22, 2025 [6].

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]

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]

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]

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]

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]

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]