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

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

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

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

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

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]

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]

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 ...

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].

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 ...