Community Healthcare Trust(US:CHCT)2024-10-29 20:31Real 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].