Community Healthcare Trust(CHCT)

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CHCT or SLG: Which Is the Better Value Stock Right Now?
ZACKS· 2024-11-05 17:41
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]
3 Scary High-Yield Dividend Stocks That Income Investors Should Avoid Right Now
The Motley Fool· 2024-10-31 08:06
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 ...
Community Healthcare Trust(CHCT) - 2024 Q3 - Earnings Call Transcript
2024-10-30 18:28
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) Reports Q3 Earnings: What Key Metrics Have to Say
ZACKS· 2024-10-29 23:35
Core Insights - Community Healthcare Trust (CHCT) reported revenue of $29.64 million for the quarter ended September 2024, marking a year-over-year increase of 3.1% [1] - The earnings per share (EPS) for the same period was $0.55, compared to $0.11 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $29.06 million, resulting in a surprise of +2.01% [1] - The company also delivered an EPS surprise of +5.77%, with the consensus EPS estimate being $0.52 [1] Revenue Breakdown - Rental income was reported at $29.34 million, surpassing the average estimate of $28.49 million from three analysts, reflecting a year-over-year change of +5.9% [3] - Other operating interest, net, was reported at $0.30 million, which was below the average estimate of $0.49 million, indicating a significant year-over-year decline of -70.9% [3] - Net earnings per share (diluted) were $0.04, compared to the average estimate of $0.06 from two analysts [3] Stock Performance - Over the past month, shares of Community Healthcare Trust have returned -2.3%, while the Zacks S&P 500 composite has seen a +1.7% change [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]
Community Healthcare Trust (CHCT) Surpasses Q3 FFO and Revenue Estimates
ZACKS· 2024-10-29 22:45
Core Viewpoint - Community Healthcare Trust (CHCT) reported quarterly funds from operations (FFO) of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.52 per share, but down from $0.63 per share a year ago, indicating a 12.7% year-over-year decline [1][2] Financial Performance - The company posted revenues of $29.64 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.01% and showing an increase from $28.74 million in the same quarter last year [2] - Over the last four quarters, CHCT has only surpassed consensus FFO estimates once [2] Stock Performance - CHCT shares have declined approximately 33.5% since the beginning of the year, contrasting with the S&P 500's gain of 22.1% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.53 on revenues of $29.62 million, and for the current fiscal year, it is $2.17 on revenues of $115.54 million [7] - The estimate revisions trend for CHCT is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The REIT and Equity Trust - Other industry is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]
Community Healthcare Trust(CHCT) - 2024 Q3 - Quarterly Results
2024-10-29 20:33
Exhibit 99.2 TRUST CHCT LISTED NYSE | --- | --- | |--------------------------------------------------------------------------------------|-------| | SUPPLEMENTAL INFORMATION Q3 2024 | | | https://files.reportify.cc/media/production/CHCTc194287013aa81392fc7c3200153410e.jpg | | Community Healthcare Trust 3Q 2024 | Supplemental Information ABOUT US CHCT is a self-managed healthcare real estate investment trust ("REIT") that owns a diverse portfolio of properties including medical office buildings, acute inpati ...
Community Healthcare Trust(CHCT) - 2024 Q3 - Quarterly Report
2024-10-29 20:31
Real Estate Acquisitions and Portfolio - The Company acquired six real estate properties totaling approximately 223,000 square feet for an aggregate purchase price of approximately $63.9 million during the first nine months of 2024, with properties 99.3% leased upon acquisition [120]. - The Company has four properties under definitive purchase agreements for an expected purchase price of approximately $8.8 million, with expected returns ranging from 9.29% to 9.50% [122]. - The Company anticipates closing on seven properties with an expected purchase price of approximately $169.5 million throughout 2025, 2026, and 2027 [123]. - As of September 30, 2024, the Company's real estate portfolio was approximately 91.3% leased, with 431,000 square feet of expiring or terminated leases and 427,000 square feet leased or renewed [124]. - The Company had an aggregate gross investment of approximately $32.9 million in 10 real estate properties with purchase options exercisable at September 30, 2024 that had not been exercised [126]. Financial Performance - Rental income increased approximately $1.6 million, or 5.9%, for the three months ended September 30, 2024 compared to the same period in 2023, driven by properties acquired during 2023 and 2024 [134]. - Rental income increased by approximately $5.0 million, or 6.2%, for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to properties acquired during 2023 and 2024 [145]. - The Company recognized a net income of $1.749 million for the three months ended September 30, 2024, a decrease of 49.9% compared to $3.492 million for the same period in 2023 [133]. - Net income for the three months ended September 30, 2024, was $1,749,000, a decrease of 50% compared to $3,492,000 in the same period of 2023 [161]. - Funds from Operations (FFO) for the three months ended September 30, 2024, was $12,821,000, down 14.3% from $14,969,000 in 2023 [161]. - Adjusted Funds from Operations (AFFO) for the three months ended September 30, 2024, was $14,639,000, a decrease of 10.7% compared to $16,423,000 in 2023 [161]. - Net Operating Income (NOI) for the three months ended September 30, 2024, was $23,653,000, slightly up from $23,279,000 in 2023 [165]. - EBITDAre for the three months ended September 30, 2024, was $18,924,000, a decrease from $19,664,000 in 2023 [170]. - Adjusted EBITDAre for the three months ended September 30, 2024, was $21,421,000, down from $21,562,000 in 2023 [170]. Expenses and Liabilities - General and administrative expenses increased approximately $1.3 million, or 36.4%, for the three months ended September 30, 2024 compared to the same period in 2023, primarily due to compensation-related expenses [137]. - Interest expense increased approximately $1.6 million, or 34.7%, for the three months ended September 30, 2024 compared to the same period in 2023, attributed to higher average balances and interest rates on the revolving credit facility [139]. - Property operating expenses increased by approximately $2.2 million, or 14.8%, for the nine months ended September 30, 2024, attributed to expenses on newly acquired properties and increased property insurance [147]. - Interest expense increased by approximately $4.5 million, or 35.4%, for the nine months ended September 30, 2024, due to an increase in the revolving credit facility balance and rising interest rates [150]. - A credit loss reserve of $11.0 million was recorded during the second quarter of 2024 related to notes receivable with a tenant [151]. - The debt to total capitalization ratio was approximately 40.0% as of September 30, 2024 [172]. Cash Flows and Dividends - Cash flows provided by operating activities for the nine months ended September 30, 2024, were approximately $43.2 million, compared to $47.1 million for the same period in 2023 [189]. - Cash flows used in investing activities for the nine months ended September 30, 2024, were approximately $83.2 million, down from $100.1 million in 2023 [190]. - Cash flows provided by financing activities for the nine months ended September 30, 2024, were approximately $38.2 million, compared to $45.9 million in 2023 [192]. - The Company declared a quarterly common stock dividend of $0.465 per share, equating to an annualized dividend of $1.86 per share [196]. Future Commitments and Expectations - The Company expects to meet its liquidity needs through cash on hand and cash flows from operations [177]. - The Company has two notes with a tenant with unfunded commitments totaling $4.2 million as of September 30, 2024 [187]. - The Company expects to fund tenant improvements of up to approximately $26.0 million, with $13.1 million allocated for redevelopment projects [183][184]. - The Company has remaining commitments for capital expenditures totaling approximately $3.1 million, with $0.8 million for redevelopment projects into different healthcare uses [185]. - The Company amended its Credit Facility on October 16, 2024, increasing the capacity from $150.0 million to $400.0 million [178].
Community Healthcare Trust Announces Results for the Three Months Ended September 30, 2024
Prnewswire· 2024-10-29 20:30
FRANKLIN, Tenn., Oct. 29, 2024 /PRNewswire/ -- Community Healthcare Trust Incorporated (NYSE: CHCT) (the "Company") today announced results for the three months ended September 30, 2024. The Company reported net income for the three months ended September 30, 2024 of approximately $1.7 million, or $0.04 per diluted common share. Funds from operations ("FFO") and adjusted funds from operations ("AFFO") for the three months ended September 30, 2024 totaled $0.48 and $0.55, respectively, per diluted common sha ...
Community Healthcare Trust Vs. Medical Properties Trust: Which Is The Better REIT For 2025
Seeking Alpha· 2024-10-27 04:55
I ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash secured puts. I approach investing purely from a fundamental long-term point of view. On Seeking Alpha I mostly cover REITs and financials, with occasional articles on ETFs and other stocks driven by a macro trade idea. Analyst's ...
Community Healthcare Trust Incorporated Announces Increased Third Quarter Dividend
Prnewswire· 2024-10-24 22:00
FRANKLIN, Tenn., Oct. 24, 2024 /PRNewswire/ -- Community Healthcare Trust Incorporated (NYSE: CHCT) today announced that its Board of Directors has increased its common stock cash dividend for the quarter ended September 30, 2024. This dividend, in the amount of $0.4650 per share, is payable on November 22, 2024 to shareholders of record on November 8, 2024. This dividend rate equates to an annualized dividend of $1.86 per share. Community Healthcare Trust Incorporated has increased its dividend every quart ...