Community Healthcare Trust(CHCT) - 2025 Q2 - Quarterly Results

About Us Company Overview 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] - 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] - 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] Company Snapshot Key Metrics as of June 30, 2025 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 Corporate Details and Leadership 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] - 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] - Covering analysts represent Truist Securities, Piper Sandler, Janney Capital Markets, Evercore ISI, and Colliers International Securities[13] Financial Highlights Quarterly Operating Results 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] - Q2 2025 net loss includes an $8.7 million allowance for credit losses related to notes receivable from a senior behavioral hospital tenant[15] - 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] Quarterly Balance Sheet Items 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 Assets 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 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 Revenues and Expenses 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] Other (Expense) Income and Net (Loss) Income 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 Funds From Operations (FFO) and Adjusted Funds From Operations (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] - Q2 2025 net loss includes an $8.7 million allowance for credit losses related to notes receivable from a senior behavioral hospital tenant[28] - 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] AFFO, Adjusted for Acquisitions 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 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] Net Operating Income (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] - 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] EBITDAre and Adjusted EBITDAre 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 Weighted Average Common Shares Outstanding 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 Debt Structure and Covenants 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 2025 Property Investments 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] Portfolio Diversification Diversification by Property Type, State, and Tenant 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 Lease Expiration Schedule 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] - Lease expirations range from 2025 through 2045[58] Property Locations Geographic Distribution of Properties 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] - 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][62][63][64][65][66][67] Reporting Definitions Key Financial and Operational Terms 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] - 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] - Annualized Rent: Current month's base rent multiplied by 12[70] - Behavioral Specialty Facility (BSF): Provides clinical services for mental health and/or substance abuse diagnoses[71] - EBITDAre and Adjusted EBITDAre: NAREIT-defined EBITDAre, and Adjusted EBITDAre excluding non-cash stock-based compensation amortization[72] - 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][76] - Inpatient Rehabilitation Facility (IRF): An independent rehabilitation hospital or a unit within an acute care hospital providing intensive rehabilitation programs[78] - 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] - Medical Office Building (MOB): Occupied by healthcare providers, available for lease to physicians, physician practice groups, hospitals, health systems, or other healthcare providers[80] - 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] - 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] - Physician Clinic (PC): A standalone medical facility primarily used for outpatient care[83] - Specialty Center (SC): Includes various centers such as oncology centers, dialysis centers, urgent care centers, and plasma centers[84] - 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] - Total Capitalization: Debt plus stockholders' equity plus accumulated depreciation[86] Disclaimers Forward-Looking Statements and Non-GAAP Financial Measures 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][89] - The company undertakes no obligation to publicly update or revise any forward-looking statements, unless required by applicable law[90] - 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] - The non-GAAP financial measures used by the company may not be comparable to similar measures used by other real estate investment trusts[91]