Community Healthcare Trust Announces Results for the Three Months Ended June 30, 2026
Rhea-AI Summary
Community Healthcare Trust (NYSE: CHCT) reported net income of approximately $2.4 million, or $0.06 per diluted share, for the quarter ended June 30, 2026, compared with a net loss of $12.6 million a year earlier. FFO and AFFO were $13.2 million ($0.48 per diluted share) and $15.4 million ($0.56 per diluted share), respectively. Quarterly rental income was $31.0 million versus $30.1 million in the prior-year period, with total revenues of $31.2 million.
The Board declared a quarterly dividend of $0.33 per share, a 31% reduction, which the company said lowers the AFFO payout ratio to about 60% and is expected to retain an additional $25–$30 million over two years for acquisitions and reinvestment. CHCT outlined a strategic plan targeting 92% occupancy, 9–12% portfolio reinvestment yields, over $70 million of marketed dispositions, and an initial $99 million acquisition pipeline under contract with expected 9–10% yields and roughly 2.5% rent escalators. As of June 30, 2026, CHCT held about $1.2 billion of investments in 197 properties across 36 states.
Positive
- Net income $2.4 million in Q2 2026 vs. $12.6 million loss in Q2 2025
- Revenues $31.2 million in Q2 2026 vs. $29.1 million in Q2 2025
- FFO $13.2 million and FFO/share $0.48 vs. $6.3 million and $0.23 a year earlier
- AFFO $15.4 million and AFFO/share $0.56 vs. $13.6 million and $0.50 in Q2 2025
- Dividend payout ratio ~60% of AFFO, with $25–$30 million expected retained capital over two years
- $99 million of properties under definitive purchase agreements with expected 9.1–9.75% returns
Negative
- Dividend reduced 31% to $0.33 per share from the prior payment
- Interest expense $7.4 million in Q2 2026 vs. $6.6 million in Q2 2025
- Debt, net increased to $559.3 million from $532.2 million at December 31, 2025
- Stockholders’ equity declined to $414.2 million from $429.4 million at year-end 2025
- Ongoing uncertainty around geriatric behavioral hospital tenant business sale and related new leases closing
- Company cautions it cannot assure timing or completion of the $99 million property acquisitions
News Explained
No ATM shares were issued in the second quarter, while planned acquisitions and a tenant transaction remain unclosed.
For the quarter ended
An at-the-market program permits an issuer to sell new shares gradually into the open market at prevailing prices rather than through one priced deal.
The company describes a
A separate transaction involving a tenant in six CHCT properties remains in buyer diligence and definitive-document drafting, including proposed new leases, and the company says it cannot assure the timing or ultimate certainty of closing.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Highlights include:
Strategic Plan Presentation
A new, strategic Investor Presentation is furnished as Exhibit 99.3 on our Form 8-K filed on August 4, 2026 and is also available on the Investor Relations section of the Company's website at www.chct.reit. It highlights leadership's decisive steps to rightsize the dividend to fund growth. CHCT is enhancing its capital allocation policy to focus on acquisitions, redevelopment, occupancy growth, and operating improvements designed to drive long-term shareholder value. Key strategic priorities for the next 18-24 months include occupancy improvement to
Dividend
The Board unanimously declared a quarterly common stock dividend of
Expanded Disclosure
The Company has revised and expanded its Supplemental Information, filed as Exhibit 99.2 to Form 8-K. The enhanced report introduces Funds Available for Distribution (FAD), detailing leasing commissions, tenant improvements, and recurring capital expenditures. Additional disclosures include year-to-date property investments, dispositions, and capital recycling activity, alongside detailed portfolio metrics such as asset/ownership structures, leasing activity, lease types, and rent escalators.
Items Impacting Our Results include:
- During the second quarter of 2026, the Company sold a property, received net proceeds of approximately
$0.4 million $46,000 - During the second quarter of 2026, the geriatric behavioral hospital operator, a tenant in six of the Company's properties, paid
$0.4 million $0.1 million - The Company has four properties under definitive purchase agreements, to be acquired after completion and occupancy, for an aggregate expected purchase price of approximately
$99.0 million 9.1% to9.75% . The Company anticipates closing on one of these properties in the third quarter of 2026 and another in the fourth quarter of 2026 and the remaining two properties in 2027; however, the Company cannot provide assurance as to the timing of when, or whether, these transactions will actually close. - During the second quarter of 2026, the Company did not issue any shares under its ATM program.
About Community Healthcare Trust Incorporated
Community Healthcare Trust Incorporated is a real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in our target sub-markets throughout the United States. As of June 30, 2026, the Company had investments of approximately
Additional information regarding the Company, including this quarter's operations, can be found at www.chct.reit. Please contact the Company at 615-771-3052 to request a printed copy of this information.
Cautionary Note Regarding Forward-Looking Statements
In addition to the historical information contained within, the matters discussed in this press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "believes", "expects", "may", "will," "should", "seeks", "approximately", "intends", "plans", "estimates", "anticipates" or other similar words or expressions, including the negative thereof. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Because forward-looking statements relate to future events, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the control of Community Healthcare Trust Incorporated (the "Company"). Thus, the Company's actual results and financial condition may differ materially from those indicated in such forward-looking statements. Some factors that might cause such a difference include the following: general volatility of the capital markets and the market price of the Company's common stock, changes in the Company's business strategy, availability, terms and deployment of capital, changes in the real estate industry in general, interest rates or the general economy, adverse developments related to the healthcare industry, changes in governmental regulations, the degree and nature of the Company's competition, the ability to consummate acquisitions under contract, catastrophic or extreme weather and other natural events and the physical effects of climate change, the occurrence of cyber incidents, effects on global and national markets as well as businesses resulting from increased inflation, changes in interest rates, supply chain disruptions, labor conditions, prolonged government shutdown or budgetary reductions or impasses, tariffs and global trade tensions, and/or international conflicts (including the conflicts in the Ukraine and in the Middle East), and the other factors described in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and the Company's other filings with the Securities and Exchange Commission from time to time. Readers are therefore cautioned not to place undue reliance on the forward-looking statements contained herein which speak only as of the date hereof. The Company intends these forward-looking statements to speak only as of the time of this press release and undertakes no obligation to update forward-looking statements, whether as a result of new information, future developments, or otherwise, except as may be required by law.
COMMUNITY HEALTHCARE TRUST INCORPORATED | |||
June 30, 2026 | December 31, 2025 | ||
(Unaudited) | |||
ASSETS | |||
Real estate properties: | |||
Land and land improvements | $ 163,506 | $ 154,673 | |
Buildings, improvements, and lease intangibles | 1,077,295 | 1,047,743 | |
Personal property | 814 | 813 | |
Total real estate properties | 1,241,615 | 1,203,229 | |
Less accumulated depreciation | (301,593) | (280,316) | |
Total real estate properties, net | 940,022 | 922,913 | |
Cash and cash equivalents | 2,673 | 3,340 | |
Assets held for sale | — | 5,265 | |
Other assets, net | 60,900 | 59,239 | |
Total assets | $ 1,003,595 | $ 990,757 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Liabilities | |||
Debt, net | $ 559,321 | $ 532,199 | |
Accounts payable and accrued liabilities | 17,691 | 14,925 | |
Other liabilities, net | 12,341 | 14,246 | |
Total liabilities | 589,353 | 561,370 | |
Commitments and contingencies | |||
Stockholders' Equity | |||
Preferred stock, | — | — | |
Common stock, | 287 | 285 | |
Additional paid-in capital | 722,454 | 717,450 | |
Cumulative net income | 95,689 | 90,777 | |
Accumulated other comprehensive gain | 9,047 | 6,691 | |
Cumulative dividends | (413,235) | (385,816) | |
Total stockholders' equity | 414,242 | 429,387 | |
Total liabilities and stockholders' equity | $ 1,003,595 | $ 990,757 | |
The Consolidated Balance Sheets do not include all of the information and footnotes required by accounting principles generally accepted in the |
COMMUNITY HEALTHCARE TRUST INCORPORATED | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
REVENUES | |||||||
Rental income | $ 30,971 | $ 30,128 | $ 62,240 | $ 59,858 | |||
Other operating interest | 253 | (1,043) | 508 | (695) | |||
31,224 | 29,085 | 62,748 | 59,163 | ||||
EXPENSES | |||||||
Property operating | 5,865 | 5,585 | 12,234 | 11,680 | |||
General and administrative(1) | 4,890 | 10,559 | 9,998 | 15,659 | |||
Depreciation and amortization | 10,738 | 10,879 | 21,395 | 21,822 | |||
21,493 | 27,023 | 43,627 | 49,161 | ||||
OTHER (EXPENSE) INCOME | |||||||
Net gains on sale, net of impairment of real estate assets | 46 | 640 | — | 640 | |||
Interest expense | (7,428) | (6,592) | (14,227) | (12,944) | |||
Credit loss reserve | — | (8,672) | — | (8,672) | |||
Deferred income tax benefit | 12 | — | 12 | — | |||
Interest and other income, net | 3 | 5 | 6 | 8 | |||
(7,367) | (14,619) | (14,209) | (20,968) | ||||
NET INCOME (LOSS) | $ 2,364 | $ (12,557) | $ 4,912 | $ (10,966) | |||
Net income (loss) per common share - Basic & Diluted | $ 0.06 | $ (0.50) | $ 0.12 | $ (0.47) | |||
Weighted Average Common Shares Outstanding-basic & Diluted | 27,016 | 26,803 | 27,004 | 26,768 | |||
(1) General and administrative expenses for the three and six months ended June 30, 2025, included severance and transition-related expenses totaling |
The Consolidated Statements of Operations do not include all of the information and footnotes required by accounting principles generally accepted in |
COMMUNITY HEALTHCARE TRUST INCORPORATED | |||
Three Months Ended June 30, | |||
2026 | 2025 | ||
Net income | $ 2,364 | $ (12,557) | |
Real estate depreciation and amortization | 10,900 | 10,861 | |
Net gains on sale, net of impairment of real estate assets | (46) | (640) | |
Credit loss reserve(2) | — | 8,672 | |
Total adjustments | 10,854 | 18,893 | |
FFO(1)(2)(3) | $ 13,218 | $ 6,336 | |
Straight-line rent | (591) | (1,184) | |
Stock-based compensation | 2,778 | 2,531 | |
Accelerated amortization of stock-based compensation(4) | — | 4,591 | |
Severance and transition related expenses(4) | — | 1,311 | |
AFFO (1)(2)(3) | $ 15,405 | $ 13,585 | |
FFO per Common Share-Diluted (1)(2) | $ 0.48 | $ 0.23 | |
AFFO per Common Share-Diluted (1)(2) | $ 0.56 | $ 0.50 | |
Weighted Average Common Shares Outstanding-Diluted (5) | 27,752 | 27,011 | |
(1) | Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market conditions, many industry investors deem presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. For that reason, the Company considers funds from operations ("FFO") and adjusted funds from operations ("AFFO") to be appropriate measures of operating performance of an equity real estate investment trust ("REIT"). In particular, the Company believes that AFFO is useful because it allows investors, analysts and Company management to compare the Company's operating performance to the operating performance of other real estate companies and between periods on a consistent basis without having to account for differences caused by unanticipated items and other events. |
The Company uses the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") definition of FFO. FFO is an operating performance measure adopted by NAREIT. NAREIT defines FFO as the most commonly accepted and reported measure of a REIT's operating performance equal to net income (calculated in accordance with GAAP), excluding gains or losses from the sale of certain real estate assets, gains and losses from change in control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, plus depreciation and amortization related to real estate properties, and after adjustments for unconsolidated partnerships and joint ventures. NAREIT also provides REITs with an option to exclude gains, losses and impairments of assets that are incidental to the main business of the REIT from the calculation of FFO. | |
In addition to FFO, the Company presents AFFO and AFFO per share. The Company defines AFFO as FFO, excluding certain expenses related to closing costs of properties acquired accounted for as business combinations and mortgages funded, excluding straight-line rent and the amortization of stock-based compensation, and including or excluding other non-cash items from time to time. AFFO presented herein may not be comparable to similar measures presented by other real estate companies due to the fact that not all real estate companies use the same definition. | |
FFO and AFFO should not be considered as alternatives to net income (determined in accordance with GAAP) as indicators of the Company's financial performance or as alternatives to cash flow from operating activities (determined in accordance with GAAP) as measures of the Company's liquidity, nor are they necessarily indicative of sufficient cash flow to fund all of the Company's needs. The Company believes that in order to facilitate a clear understanding of the consolidated historical operating results of the Company, FFO and AFFO should be examined in conjunction with net income as presented elsewhere herein. | |
(2) | During the three months ended June 30, 2025, the Company recorded a credit loss reserve on its notes related to a geriatric behavioral hospital tenant totaling approximately |
(3) | During the three months ended June 30, 2025, the Company reversed interest related to a geriatric behavioral hospital tenant totaling approximately |
(4) | During the three months ended June 30, 2025, the Company recorded severance and transition-related charges totaling approximately |
(5) | Diluted weighted average common shares outstanding for FFO and AFFO are calculated based on the treasury method, rather than the 2-class method used to calculate earnings per share. Restricted stock awards and time-based RSUs are included in the calculation of weighted average common shares outstanding to the extent that they are dilutive. Performance-based RSUs are included in the calculation of weighted average common shares outstanding to the extent that they are in-the-money as of the end of the reporting period and are dilutive. |
CONTACT: Bill Monroe, 615-771-3052
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SOURCE Community Healthcare Trust Incorporated