Community Healthcare Trust(US:CHCT)2025-10-28 20:08Real Estate Acquisitions - The Company acquired two real estate properties totaling approximately 75,000 square feet for an aggregate purchase price of approximately $36.0 million during the first nine months of 2025 [103]. - The Company has six properties under definitive purchase agreements with an expected aggregate purchase price of approximately $146.0 million, anticipated to close throughout 2026 and 2027 [104]. - The Company has six properties under definitive purchase agreements with an expected aggregate purchase price of approximately $146.0 million, anticipated to close between Q4 2025 and 2027 [151]. Leasing and Rental Income - As of September 30, 2025, the real estate portfolio was approximately 90.1% leased, with 612,000 square feet of expiring or terminated leases and 562,000 square feet leased or renewed [106]. - Rental income increased approximately $5.1 million, or 5.9%, for the nine months ended September 30, 2025 compared to the same period in 2024 [119]. Expenses and Losses - General and administrative expenses increased approximately $6.1 million, or 42.6%, for the nine months ended September 30, 2025 compared to the same period in 2024 [121]. - Interest expense increased approximately $0.8 million, or 13.1%, for the three months ended September 30, 2025 compared to the same period in 2024 [117]. - The Company recorded additional reserves totaling approximately $8.7 million on notes and approximately $1.7 million on interest receivables related to a geriatric inpatient behavioral hospital tenant [110]. - The Company recognized a loss of approximately $0.2 million on the sale of a property in Pennsylvania during the third quarter of 2025 [105]. - Net loss for the nine months ended September 30, 2025, was approximately $9.3 million, compared to a net loss of $5.0 million for the same period in 2024 [132]. - Credit loss reserve recorded was $8.7 million for the nine months ended September 30, 2025, compared to $11.0 million for the same period in 2024 [123]. - Interest expense increased by approximately $2.7 million, or 15.7%, for the nine months ended September 30, 2025, primarily due to higher interest rates [124]. - The Company recorded severance and transition-related charges totaling approximately $5.9 million during the nine months ended September 30, 2025 [133]. Funds from Operations - Funds from Operations (FFO) for the nine months ended September 30, 2025, was $32.6 million, down from $38.5 million in 2024 [132]. - Adjusted Funds from Operations (AFFO) for the nine months ended September 30, 2025, was $43.4 million, compared to $44.6 million in 2024 [132]. - Net Operating Income (NOI) for the nine months ended September 30, 2025, was $72.6 million, an increase from $69.1 million in 2024 [138]. - The Company recognized a gain on the sale of real estate totaling approximately $1.3 million during the nine months ended September 30, 2025 [128]. Cash Flows and Dividends - Cash flows provided by operating activities for the nine months ended September 30, 2025, were approximately $40.9 million, down from $43.2 million in the same period of 2024, indicating a decrease of about 5.3% [158]. - Cash flows used in investing activities for the nine months ended September 30, 2025, were approximately $43.7 million, significantly lower than $83.2 million in the same period of 2024 [159]. - The Company declared a quarterly common stock dividend of $0.4750 per share on October 23, 2025, equating to an annualized dividend of $1.90 per share [164]. Tenant Improvements and Security Deposits - The Company expects to fund tenant improvements of up to approximately $29.9 million, with $7.7 million committed to ongoing redevelopment projects [152]. - As of September 30, 2025, the Company held approximately $2.6 million in security deposits for tenant lease obligations [163]. Interest and Inflation Impact - Inflation has significantly increased, impacting expenses, capital expenditures, and variable-rate borrowings, with the Federal Reserve lowering interest rates in 2024 and 2025 [112]. - The Company reversed interest totaling approximately $1.7 million for a geriatric behavioral hospital tenant during the nine months ended September 30, 2025 [143]. Quarterly Performance - For the three months ended September 30, 2025, the Company reported a net income of $1.64 million, compared to $1.75 million in the same period of 2024, reflecting a decrease of approximately 6.3% [143]. - Adjusted EBITDAre for the nine months ended September 30, 2025, was $64.63 million, an increase of 2.9% from $62.79 million in the same period of 2024 [143]. Credit Facility - The Company had $256.0 million outstanding on its Revolving Credit Facility as of September 30, 2025, with a remaining borrowing capacity of approximately $144.0 million [148].