Community Healthcare Trust Announces Results for the Three Months Ended September 30, 2025
Rhea-AI Summary
Community Healthcare Trust (NYSE: CHCT) reported results for the quarter ended September 30, 2025. Net income was approximately $1.6 million or $0.03 per diluted share. FFO and AFFO were $0.50 and $0.56 per diluted share, respectively. The Company acquired a Florida inpatient rehabilitation facility for approximately $26.5 million (100% leased, lease expiring 2040, ~9.4% expected return).
The Company has six properties under definitive purchase agreements totaling ~$146.0 million (expected returns ~9.1%–9.75%), expects an ~$11.5 million gain on an asset held for sale, and declared a quarterly dividend of $0.475 payable Nov 21, 2025.
Positive
- FFO of $0.50 per diluted share
- AFFO of $0.56 per diluted share
- Acquisition: $26.5M Florida rehab facility, 100% leased
- Six properties under agreement totaling $146.0M
- Declared quarterly dividend of $0.475 per share
Negative
- Net income only $1.6M ( $0.03 per diluted share )
- Recognized loss on Pennsylvania sale of ~$0.2M
- Timing uncertain for LOI sale and six acquisitions
News Market Reaction – CHCT
On the day this news was published, CHCT declined 0.21%, reflecting a mild negative market reaction. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $910K from the company's valuation, bringing the market cap to $433M at that time.
Data tracked by StockTitan Argus on the day of publication.
Items Impacting Our Results include:
- During the third quarter of 2025, the Company acquired an inpatient rehabilitation facility in
Florida upon completion of construction for a purchase price of approximately$26.5 million $26.4 million 100.0% leased to a tenant with a lease expiration in 2040 and an expected return of approximately9.4% . The acquisition was funded with net proceeds from the Revolving Credit Facility and cash on hand. - During the third quarter of 2025, the geriatric behavioral hospital operator, a tenant in six of the Company's properties, paid rent and interest of approximately
$0.2 million - During the third quarter of 2025, the Company disposed of a building in
Pennsylvania , received net proceeds of approximately$0.7 million $0.2 million - The Company has six properties under definitive purchase agreements, to be acquired after completion and occupancy, for an aggregate expected purchase price of approximately
$146.0 million 9.1% to9.75% . The Company anticipates closing on one of these properties in the fourth quarter of 2025 and remaining properties throughout 2026 and 2027; however, the Company cannot provide assurance as to the timing of when, or whether, these transactions will actually close. - As part of the Company's capital recycling program, the Company had an inpatient rehabilitation facility that met the held for sale criteria in October 2025. The sale of this asset is expected to occur in the fourth quarter of 2025 and the proceeds are generally expected to fund acquisitions through like-kind exchange under Section 1031 of the United States Internal Revenue Code. The Company expects to recognize a gain on sale of approximately
$11.5 million - During the third quarter of 2025, the Company did not issue any shares under its ATM program.
- On October 23, 2025, the Company's Board of Directors declared a quarterly common stock dividend in the amount of
$0.47 50
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 September 30, 2025, 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 the conflicts in
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COMMUNITY HEALTHCARE TRUST INCORPORATED CONSOLIDATED BALANCE SHEETS (Dollars and shares in thousands, except per share amounts) |
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(Unaudited) |
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September 30, 2025 |
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December 31, 2024 |
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ASSETS |
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Real estate properties: |
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Land and land improvements |
$ 154,272 |
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$ 149,501 |
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Buildings, improvements, and lease intangibles |
1,035,070 |
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996,104 |
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Personal property |
809 |
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326 |
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Total real estate properties |
1,190,151 |
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1,145,931 |
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Less accumulated depreciation |
(272,481) |
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(242,609) |
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Total real estate properties, net |
917,670 |
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903,322 |
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Cash and cash equivalents |
3,383 |
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4,384 |
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Assets held for sale |
6,205 |
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6,755 |
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Other assets, net |
60,003 |
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78,102 |
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Total assets |
$ 987,261 |
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$ 992,563 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Liabilities |
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Debt, net |
$ 530,138 |
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$ 485,955 |
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Accounts payable and accrued liabilities |
17,205 |
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14,289 |
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Other liabilities, net |
13,095 |
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16,354 |
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Total liabilities |
560,438 |
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516,598 |
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Commitments and contingencies |
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Stockholders' Equity |
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Preferred stock, |
— |
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— |
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Common stock, |
285 |
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282 |
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Additional paid-in capital |
714,890 |
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704,524 |
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Cumulative net income |
76,349 |
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85,675 |
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Accumulated other comprehensive gain |
7,568 |
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17,631 |
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Cumulative dividends |
(372,269) |
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(332,147) |
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Total stockholders' equity |
426,823 |
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475,965 |
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Total liabilities and stockholders' equity |
$ 987,261 |
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$ 992,563 |
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The Consolidated Balance Sheets do not include all of the information and footnotes required by accounting principles generally accepted in |
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COMMUNITY HEALTHCARE TRUST INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (Unaudited; Dollars and shares in thousands, except per share amounts) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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REVENUES |
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Rental income |
$ 30,814 |
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$ 29,335 |
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$ 90,672 |
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$ 85,582 |
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Other operating interest |
272 |
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304 |
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(423) |
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906 |
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31,086 |
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29,639 |
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90,249 |
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86,488 |
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EXPENSES |
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Property operating |
5,930 |
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5,986 |
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17,610 |
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17,349 |
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General and administrative (1) |
4,658 |
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4,935 |
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20,317 |
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14,249 |
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Depreciation and amortization |
10,902 |
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10,927 |
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32,724 |
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31,981 |
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21,490 |
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21,848 |
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70,651 |
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63,579 |
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OTHER (EXPENSE) INCOME |
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(Loss) Gains on sale and impairments of real estate assets |
(888) |
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5 |
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(248) |
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(135) |
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Interest expense |
(7,075) |
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(6,253) |
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(20,019) |
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(17,301) |
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Credit loss reserve |
— |
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— |
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(8,672) |
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(11,000) |
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Interest and other income, net |
7 |
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206 |
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15 |
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514 |
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(7,956) |
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(6,042) |
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(28,924) |
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(27,922) |
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NET INCOME (LOSS) |
$ 1,640 |
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$ 1,749 |
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$ (9,326) |
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$ (5,013) |
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NET INCOME (LOSS) PER COMMON SHARE |
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Net income (loss) per common share - Basic |
$ 0.03 |
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$ 0.04 |
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$ (0.43) |
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$ (0.27) |
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Net income (loss) per common share - Diluted |
$ 0.03 |
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$ 0.04 |
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$ (0.43) |
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$ (0.27) |
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-BASIC |
26,934 |
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26,660 |
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26,824 |
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26,479 |
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-DILUTED |
26,934 |
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26,660 |
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26,824 |
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26,479 |
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(1) General and administrative expenses for the nine months ended September 30, 2025, included severance and transition-related expenses totaling |
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The Consolidated Statements of Operations do not include all of the information and footnotes required by accounting principles generally accepted in |
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COMMUNITY HEALTHCARE TRUST INCORPORATED RECONCILIATION OF FFO and AFFO (1) (Unaudited; Dollars and shares in thousands, except per share amounts) |
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Three Months Ended September 30, |
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2025 |
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2024 |
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Net income |
$ 1,640 |
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$ 1,749 |
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Real estate depreciation and amortization |
11,019 |
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11,077 |
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Loss (Gains) on sale and impairments of real estate assets |
888 |
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(5) |
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Total adjustments |
11,907 |
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11,072 |
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FFO (1)(2) |
$ 13,547 |
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$ 12,821 |
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Straight-line rent |
(913) |
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(679) |
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Stock-based compensation |
2,465 |
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2,497 |
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AFFO (1)(2) |
$ 15,099 |
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$ 14,639 |
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FFO per Common Share-Diluted (1)(2) |
$ 0.50 |
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$ 0.48 |
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AFFO per Common Share-Diluted (1)(2) |
$ 0.56 |
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$ 0.55 |
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Weighted Average Common Shares Outstanding-Diluted (2) |
27,195 |
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26,853 |
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(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. |
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(2) |
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.
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CONTACT: Bill Monroe, 615-771-3052
View original content:https://www.prnewswire.com/news-releases/community-healthcare-trust-announces-results-for-the-three-months-ended-september-30-2025-302597294.html
SOURCE Community Healthcare Trust Incorporated
FAQ
What were Community Healthcare Trust (CHCT) net income and EPS for Q3 2025?
What were CHCT's FFO and AFFO per share for Q3 2025?
What acquisition did CHCT complete in Q3 2025 and what is the expected yield?
How large are the properties CHCT has under definitive purchase agreements?
Will CHCT pay a dividend and when is it payable?
Does CHCT expect any gains or sales proceeds in Q4 2025?
