Community Healthcare Trust Announces Results for the Three Months Ended June 30, 2025
Community Healthcare Trust (NYSE:CHCT) reported mixed results for Q2 2025, with a net loss of $12.6 million ($0.50 per diluted share). The company's FFO and AFFO were $0.23 and $0.50 per diluted share, respectively.
Key developments include a $1.7 million reserve on interest receivable and an $8.7 million credit loss reserve related to a geriatric behavioral hospital tenant, who has signed an LOI to sell their business. The company recorded $5.9 million in severance charges related to an executive departure. CHCT acquired an inpatient rehabilitation facility in Florida for $26.5 million with a 9.4% expected return and has six properties under purchase agreements totaling $146.0 million.
The Board declared a quarterly dividend of $0.4725 per share, payable on August 22, 2025.
Community Healthcare Trust (NYSE:CHCT) ha riportato risultati contrastanti per il secondo trimestre 2025, con una perdita netta di 12,6 milioni di dollari (0,50 dollari per azione diluita). Il FFO e l'AFFO della società sono stati rispettivamente di 0,23 dollari e 0,50 dollari per azione diluita.
Gli sviluppi principali includono una riserva di 1,7 milioni di dollari sugli interessi attivi e una riserva per perdite su crediti di 8,7 milioni di dollari relativa a un inquilino di un ospedale geriatrico comportamentale, che ha firmato una lettera d'intenti per la vendita della propria attività. La società ha registrato 5,9 milioni di dollari di oneri per buonuscita legati all'uscita di un dirigente. CHCT ha acquisito una struttura di riabilitazione residenziale in Florida per 26,5 milioni di dollari con un rendimento previsto del 9,4% e ha sei proprietà sotto accordi di acquisto per un totale di 146,0 milioni di dollari.
Il Consiglio di Amministrazione ha dichiarato un dividendo trimestrale di 0,4725 dollari per azione, pagabile il 22 agosto 2025.
Community Healthcare Trust (NYSE:CHCT) reportó resultados mixtos para el segundo trimestre de 2025, con una pérdida neta de 12,6 millones de dólares (0,50 dólares por acción diluida). El FFO y AFFO de la compañía fueron de 0,23 dólares y 0,50 dólares por acción diluida, respectivamente.
Los desarrollos clave incluyen una reserva de 1,7 millones de dólares sobre intereses por cobrar y una reserva para pérdidas crediticias de 8,7 millones de dólares relacionada con un inquilino de un hospital geriátrico conductual, que ha firmado una carta de intención para vender su negocio. La compañía registró cargos por indemnización por despido por 5,9 millones de dólares relacionados con la salida de un ejecutivo. CHCT adquirió una instalación de rehabilitación para pacientes hospitalizados en Florida por 26,5 millones de dólares con un rendimiento esperado del 9,4% y tiene seis propiedades bajo acuerdos de compra que suman 146,0 millones de dólares.
La Junta declaró un dividendo trimestral de 0,4725 dólares por acción, pagadero el 22 de agosto de 2025.
Community Healthcare Trust (NYSE:CHCT)는 2025년 2분기에 혼합된 실적을 보고했으며, 순손실은 1,260만 달러(희석 주당 0.50달러)였습니다. 회사의 FFO와 AFFO는 각각 희석 주당 0.23달러와 0.50달러였습니다.
주요 내용으로는 미수 이자에 대한 170만 달러 충당금과 노인 행동 병원 세입자와 관련된 870만 달러 신용 손실 충당금이 포함되며, 해당 세입자는 사업 매각을 위한 LOI(의향서)를 체결했습니다. 회사는 임원 퇴직과 관련하여 590만 달러의 퇴직금 비용을 기록했습니다. CHCT는 플로리다에 위치한 입원 재활 시설을 2,650만 달러에 인수했으며 예상 수익률은 9.4%입니다. 또한 총 1억 4,600만 달러 규모의 6개 부동산에 대한 매입 계약을 체결했습니다.
이사회는 2025년 8월 22일 지급 예정인 주당 0.4725달러의 분기 배당금을 선언했습니다.
Community Healthcare Trust (NYSE:CHCT) a publié des résultats mitigés pour le deuxième trimestre 2025, enregistrant une perte nette de 12,6 millions de dollars (0,50 dollar par action diluée). Le FFO et l'AFFO de la société s'élevaient respectivement à 0,23 dollar et 0,50 dollar par action diluée.
Les développements clés comprennent une provision de 1,7 million de dollars sur les intérêts à recevoir et une provision pour pertes sur créances de 8,7 millions de dollars liée à un locataire d'un hôpital gériatrique comportemental, qui a signé une lettre d'intention pour vendre son activité. La société a enregistré 5,9 millions de dollars de charges de licenciement liées au départ d'un cadre. CHCT a acquis un centre de rééducation hospitalier en Floride pour 26,5 millions de dollars avec un rendement attendu de 9,4 % et détient six propriétés sous contrats d'achat totalisant 146,0 millions de dollars.
Le conseil d'administration a déclaré un dividende trimestriel de 0,4725 dollar par action, payable le 22 août 2025.
Community Healthcare Trust (NYSE:CHCT) meldete gemischte Ergebnisse für das zweite Quartal 2025 mit einem Nettoverlust von 12,6 Millionen US-Dollar (0,50 US-Dollar je verwässerter Aktie). Das FFO und AFFO des Unternehmens betrugen jeweils 0,23 US-Dollar und 0,50 US-Dollar je verwässerter Aktie.
Wesentliche Entwicklungen umfassen eine Rückstellung von 1,7 Millionen US-Dollar für Zinserträge und eine Rückstellung für Kreditverluste in Höhe von 8,7 Millionen US-Dollar im Zusammenhang mit einem Mieter eines geriatrischen Verhaltenskrankenhauses, der eine Absichtserklärung zum Verkauf seines Geschäfts unterzeichnet hat. Das Unternehmen verbuchte 5,9 Millionen US-Dollar an Abfindungskosten im Zusammenhang mit dem Ausscheiden eines Führungskräfte. CHCT erwarb eine stationäre Rehabilitationsklinik in Florida für 26,5 Millionen US-Dollar mit einer erwarteten Rendite von 9,4 % und hat sechs Immobilien unter Kaufverträgen im Gesamtwert von 146,0 Millionen US-Dollar.
Der Vorstand erklärte eine vierteljährliche Dividende von 0,4725 US-Dollar je Aktie, zahlbar am 22. August 2025.
- None.
- Net loss of $12.6 million ($0.50 per diluted share) in Q2 2025
- $1.7 million reserve on interest receivable from troubled tenant
- $8.7 million credit loss reserve on notes receivable
- $5.9 million in severance and transition-related charges from executive departure
Insights
CHCT reports Q2 net loss of $12.6M, impacted by tenant issues and one-time severance costs, but maintains dividend at $0.4725.
Community Healthcare Trust's Q2 2025 results reveal significant challenges with a net loss of $12.6 million ($0.50 per diluted share), while maintaining AFFO of $0.50 per diluted share. The divergence between net loss and AFFO stems from several notable non-cash items.
The most concerning development involves a geriatric behavioral hospital tenant experiencing financial distress, prompting CHCT to record a $1.7 million reserve on interest receivable and an $8.7 million credit loss reserve on notes receivable. While there's a potential resolution through the tenant's LOI to sell its business to another behavioral healthcare provider who would sign new leases for CHCT's six facilities, this represents significant uncertainty in approximately 5-7% of their portfolio.
One-time costs significantly impacted results, with $5.9 million in severance charges from the departure of their EVP of Asset Management, including $4.6 million in non-cash accelerated stock compensation. This unusual executive transition reduced FFO by approximately $0.22 per share.
Despite these challenges, CHCT continues executing its growth strategy, completing a $9.7 million behavioral facility acquisition at an attractive 9.5% yield and a $26.5 million inpatient rehabilitation facility at a 9.4% yield. The company also has $146 million in properties under definitive purchase agreements with expected yields between 9.1-9.75%.
The maintained quarterly dividend of $0.4725 indicates management's confidence in their underlying cash flow stability despite the tenant issues and one-time charges. The company's ability to generate sufficient AFFO to cover the dividend (100% payout ratio) suggests the distribution remains secure for now, though the tenant situation bears monitoring for potential future impact.
FRANKLIN, Tenn., July 29, 2025 /PRNewswire/ -- Community Healthcare Trust Incorporated (NYSE: CHCT) (the "Company") today announced results for the three months ended June 30, 2025. The Company reported a net loss for the three months ended June 30, 2025 of approximately
Items Impacting Our Results include:
- During the three months ended June 30, 2025, the Company determined that the collectability of the remaining interest receivable balance and unreserved notes related to its geriatric behavioral hospital tenant were not reasonably assured. As such, the Company recorded a
$1.7 million $0.06 $8.7 million $8.7 million - As previously announced, the Company's former Executive Vice President, Asset Management was terminated effective May 31, 2025. In accordance with his employment agreement, his unvested restricted shares totaling 198,015 shares vested and his unvested restricted stock units totaling 18,275 units vested at target upon his termination. Upon termination and vesting of these shares, the Company accelerated the unamortized remaining balance of his deferred compensation at May 31, 2025. The Company recorded severance and transition-related charges totaling approximately
$5.9 million $4.6 million $0.22 - During the first quarter of 2025, the Company acquired a behavioral specialty facility for cash consideration of approximately
$9.7 million 9.5% . Because the lease had not yet commenced and was accounted for as a sale-leaseback transaction, the Company could not recognize the acquisition as a real estate purchase during the first quarter of 2025 but rather accounted for it as a financing transaction. During the second quarter of 2025, the lease commenced, the real estate purchase was recognized, and the asset was reclassified from other assets to real estate properties on the Company's Condensed Consolidated Balance Sheet. The property is100% leased to a tenant with a lease expiration in 2040. This first quarter 2025 acquisition was funded from proceeds from the Revolving Credit Facility. - During the second quarter of 2025, the Company disposed of a building in
Ohio , received net proceeds of approximately$0.6 million $0.2 million $1.3 million - On July 9, 2025, the Company acquired one 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. - 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 these properties throughout 2025, 2026 and 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 2025, the Company did not issue any shares under its ATM program.
- On July 24, 2025, the Company's Board of Directors declared a quarterly common stock dividend in the amount of
$0.47 25
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
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, tariffs and global trade tensions, and/or the conflicts in
COMMUNITY HEALTHCARE TRUST INCORPORATED | |||
(Unaudited) | |||
June 30, 2025 | December 31, 2024 | ||
ASSETS | |||
Real estate properties: | |||
Land and land improvements | $ 152,887 | $ 149,501 | |
Buildings, improvements, and lease intangibles | 1,004,616 | 996,104 | |
Personal property | 809 | 326 | |
Total real estate properties | 1,158,312 | 1,145,931 | |
Less accumulated depreciation | (262,961) | (242,609) | |
Total real estate properties, net | 895,351 | 903,322 | |
Cash and cash equivalents | 4,863 | 4,384 | |
Assets held for sale | 5,465 | 6,755 | |
Other assets, net | 60,613 | 78,102 | |
Total assets | $ 966,292 | $ 992,563 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Liabilities | |||
Debt, net | $ 500,077 | $ 485,955 | |
Accounts payable and accrued liabilities | 13,944 | 14,289 | |
Other liabilities, net | 14,451 | 16,354 | |
Total liabilities | 528,472 | 516,598 | |
Commitments and contingencies | |||
Stockholders' Equity | |||
Preferred stock, | — | — | |
Common stock, | 284 | 282 | |
Additional paid-in capital | 712,498 | 704,524 | |
Cumulative net income | 74,709 | 85,675 | |
Accumulated other comprehensive gain | 9,121 | 17,631 | |
Cumulative dividends | (358,792) | (332,147) | |
Total stockholders' equity | 437,820 | 475,965 | |
Total liabilities and stockholders' equity | $ 966,292 | $ 992,563 | |
The Consolidated Balance Sheets 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, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
REVENUES | |||||||
Rental income | $ 30,128 | $ 27,905 | $ 59,858 | $ 56,247 | |||
Other operating interest | (1,043) | (389) | (695) | 602 | |||
29,085 | 27,516 | 59,163 | 56,849 | ||||
EXPENSES | |||||||
Property operating | 5,585 | 5,572 | 11,680 | 11,363 | |||
General and administrative | 10,559 | 4,760 | 15,659 | 9,314 | |||
Depreciation and amortization | 10,879 | 10,792 | 21,822 | 21,054 | |||
27,023 | 21,124 | 49,161 | 41,731 | ||||
OTHER (EXPENSE) INCOME | |||||||
Gains on sale, net of impairments of real estate assets | 640 | (140) | 640 | (140) | |||
Interest expense | (6,592) | (5,986) | (12,944) | (11,048) | |||
Credit loss reserve | (8,672) | (11,000) | (8,672) | (11,000) | |||
Interest and other income, net | 5 | 307 | 8 | 308 | |||
(14,619) | (16,819) | (20,968) | (21,880) | ||||
NET LOSS | $ (12,557) | $ (10,427) | $ (10,966) | $ (6,762) | |||
NET LOSS PER COMMON SHARE | |||||||
Net loss per common share - Basic | $ (0.50) | $ (0.42) | $ (0.47) | $ (0.31) | |||
Net loss per common share - Diluted | $ (0.50) | $ (0.42) | $ (0.47) | $ (0.31) | |||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-BASIC | 26,803 | 26,479 | 26,768 | 26,388 | |||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-DILUTED | 26,803 | 26,479 | 26,768 | 26,388 | |||
(1) General and administrative expenses for the three and six months ended June 30, 2025, included severance and transition-related expenses | |||||||
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, | |||
2025 | 2024 | ||
Net loss | $ (12,557) | $ (10,427) | |
Real estate depreciation and amortization | 10,861 | 10,895 | |
Gains on sale, net of impairments of real estate assets | (640) | 140 | |
Credit loss reserve (3) | 8,672 | 11,000 | |
Total adjustments | 18,893 | 22,035 | |
FFO (1)(2)(3) | $ 6,336 | $ 11,608 | |
Straight-line rent | (1,184) | 204 | |
Stock-based compensation | 2,531 | 2,469 | |
Accelerated amortization of stock-based compensation (4) | 4,591 | — | |
Severance and transition related expenses(4) | 1,311 | — | |
AFFO (1)(2) | $ 13,585 | $ 14,281 | |
FFO per Common Share-Diluted (1)(2) | $ 0.23 | $ 0.43 | |
AFFO per Common Share-Diluted (1)(2) | $ 0.50 | $ 0.53 | |
Weighted Average Common Shares Outstanding-Diluted (5) | 27,011 | 26,791 | |
(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 reversed interest related to a geriatric behavioral hospital tenant totaling approximately |
(3) | 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 |
(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.
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CONTACT: Bill Monroe, 615-771-3052
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SOURCE Community Healthcare Trust Incorporated
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