Community Healthcare Trust Announces Results for the Three Months Ended September 30, 2026

Nine-month net income reached $7.980 million, compared with a $9.326 million loss a year earlier.

Rhea-AI Summary

Community Healthcare Trust (NYSE: CHCT) reported third-quarter 2026 net income of approximately $3.1 million, improving from the prior-year quarter. Diluted earnings per share rose to $0.09 from $0.03, while revenue increased to $32.443 million from $31.086 million. Funds from operations, a real estate earnings measure, rose to $0.54 per diluted share from $0.50; adjusted funds from operations increased to $0.58 from $0.56.

Leased occupancy increased to 90.1% from 89.8% in the second quarter. Four properties are under purchase agreements for approximately $99.0 million, with completion and occupancy required before acquisition. After quarter-end, two property sales generated approximately $31.5 million in net proceeds. The unchanged quarterly dividend of $0.33 per share is payable November 25 to holders of record November 13, 2026. Net debt stood at $558.382 million, versus $532.199 million at December 31, 2025.

15 points · 1 major

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0 major · 10 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Four planned acquisitions total approximately $99.0 million, with company-expected investment returns of approximately 9.1% to 9.75%. 26% of market cap
• Moderate pointThird-quarter net income increased to $3.068 million from $1.640 million; diluted EPS rose to $0.09 from $0.03.
• Moderate pointThird-quarter revenue increased to $32.443 million from $31.086 million a year earlier.
• Moderate pointFFO per diluted share increased 8.0% year over year to $0.54 in the third quarter.
• Moderate pointAdjusted FFO per diluted share increased 3.6% year over year to $0.58 in the third quarter.
• Moderate pointThird-quarter general and administrative expenses declined $0.7 million, or 14.3%, from the second quarter.
• Moderate pointTwo post-quarter property sales generated approximately $31.5 million; proceeds are expected to fund Section 1031 exchange acquisitions. 8.3% of market cap
• Moderate pointNine-month credit loss reserve expense was zero, versus $8.672 million a year earlier. 2.3% of market cap

7 minor points

• Minor pointLeased occupancy rose from 89.8% in the second quarter to 90.1% in the third quarter.
• Minor pointThird-quarter depreciation and amortization declined to $10.668 million from $10.902 million a year earlier.
• Minor pointGeriatric hospital tenant rent reached approximately $0.5 million in the third quarter, up approximately $0.2 million sequentially.
• Minor pointNine-month revenue increased to $95.191 million from $90.249 million a year earlier.
• Minor pointNine-month net income reached $7.980 million versus a $9.326 million loss; diluted EPS reached $0.22 versus $(0.43).
• Minor pointNine-month general and administrative expenses fell to $14.189 million from $20.317 million a year earlier.
• Minor pointNine-month depreciation and amortization declined to $32.063 million from $32.724 million a year earlier.

Negative

• Moderate pointDebt, net increased to $558.382 million at September 30, 2026, from $532.199 million at December 31, 2025.
• Moderate pointThird-quarter interest expense increased to $7.515 million from $7.075 million a year earlier.
• Moderate pointSix-hospital tenant business sale remains at the letter-of-intent stage, with due diligence and definitive agreements unfinished.
• Minor pointCash and cash equivalents declined to $1.350 million from $3.340 million at December 31, 2025.
• Minor pointNine-month interest expense increased to $21.742 million from $20.019 million a year earlier.

5 minor points

• Minor pointThird-quarter property operating expenses increased to $5.975 million from $5.930 million a year earlier.
• Minor pointNine-month property operating expenses increased to $18.209 million from $17.610 million a year earlier.
• Minor pointThird-quarter real estate sale losses and impairments, net of gains increased to $1.039 million from $0.888 million.
• Minor pointNine-month real estate sale losses and impairments, net of gains increased to $1.039 million from $0.248 million.
• Minor pointFour property acquisitions depend on completion and occupancy before closing.

News Explained

The reported common-share base is higher than at year-end, while the six-property tenant's prospective sale and new leases remain unresolved.

CHCT's report for the quarter ended September 30, 2026 lists 28,739 thousand common shares outstanding, versus 28,471 thousand at December 31, 2025, so existing holders' ownership is measured against a larger reported share base.

The company says net income and FFO were affected by a $0.9 million decrease in deferred-compensation expense from the second quarter to the third quarter.

It attributes the decrease largely to approximately $1.25 million in restricted awards fully amortized or forfeited at June 30, partly offset by approximately $0.4 million in amortization from awards granted in the third quarter.

A tenant in six properties paid approximately $0.5 million in third-quarter rent, up approximately $0.2 million from the second quarter.

The tenant's prospective buyer is completing due diligence and drafting definitive purchase agreements that would include new leases for the six properties; CHCT says the timing and certainty of closing remain unknown.

Key Figures

Net income: Approximately $3.1 million Diluted EPS: $0.09 per diluted common share FFO per share: $0.54 per diluted common share +5 more

Net income

Approximately $3.1 million

Three months ended September 30, 2026

Diluted EPS

$0.09 per diluted common share

Three months ended September 30, 2026

FFO per share

$0.54 per diluted common share

Three months ended September 30, 2026

AFFO per share

$0.58 per diluted common share

Three months ended September 30, 2026

Revenue growth

$1.2 million, or 4%

Second quarter to third quarter of 2026

Leased occupancy

90.1%, up from 89.8%

Second quarter to third quarter of 2026

Quarterly common dividend

$0.33 per share

Declared November 3, 2026; same amount as prior quarter

Property disposition proceeds

Approximately $31.5 million

Two properties sold subsequent to September 30, 2026

Historical Context

1 past event · Latest: Aug 04

1 event

1. Aug 04

   Earnings report

   24h Move

   -13.1%

   Quarterly dividend fell to $0.33; FFO and AFFO were $0.48 and $0.56 per share.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ffo, atm program, like-kind exchange, reit, +1 more

5 terms

ffo financial

"Funds from operations ("FFO") and adjusted funds from operations"

Funds from operations (FFO) is a performance metric used mainly for real estate companies that measures the cash generated by their core rental and property-management activities, while removing accounting items such as building depreciation and one-time gains or losses from property sales. Investors rely on FFO to assess a real estate firm's ability to pay and sustain dividends and fund growth—similar to checking how much actual rent a landlord collects each month rather than paper profits.

atm program financial

"the Company did not issue any shares under its ATM program"

An at-the-market (ATM) program is an arrangement that lets a publicly traded company sell newly issued shares gradually into the open market at prevailing prices, through a designated broker-dealer, instead of raising money in one large offering. It gives the company flexible, lower-cost fundraising; for existing shareholders it matters because each sale adds to the share count, which can dilute their ownership stake.

like-kind exchange financial

"fund acquisitions through like-kind exchange under Section 1031"

A like-kind exchange is a tax mechanism that lets an investor swap one qualifying asset for another similar asset without immediately paying capital gains tax, effectively deferring the tax bill until the replacement asset is sold. Think of it like trading one house for another: it preserves more cash for the new purchase and lets investors reshape or upgrade their holdings without triggering a large tax hit today, which can affect cash flow, portfolio strategy and long-term returns.

reit financial

"a real estate investment trust that focuses on owning"

A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing real estate, like shopping centers, apartments, or office buildings. For investors, REITs offer a way to invest in real estate without having to buy property directly, often providing regular income through dividends. They function like a mutual fund for real estate, making it easier for people to add property investments to their portfolio.

restricted stock units financial

"forfeited performance-based restricted stock units at June 30, 2026"

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

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FRANKLIN, Tenn., Nov. 3, 2026 /PRNewswire/ -- Community Healthcare Trust Incorporated (NYSE: CHCT) (the "Company") today announced results for the three months ended September 30, 2026. The Company reported net income for the three months ended September 30, 2026 of approximately $3.1 million, or $0.09 per diluted common share. Funds from operations ("FFO") and adjusted funds from operations ("AFFO") for the three months ended September 30, 2026 totaled $0.54 and $0.58 per diluted common share, respectively.

Highlights Include:

Executing on Strategic Plan
The Company's results for the three months ended September 30, 2026 reflect measurable progress executing the Strategic Plan announced August 4, 2026. Key operational and financial highlights from the second quarter of 2026 to the third quarter of 2026 include total revenue growth of $1.2 million or 4%, leased occupancy growth from 89.8% to 90.1%, and general and administrative expense decline of $0.7 million or 14.3%. On a year-over-year basis, FFO per share increased by $0.04 or 8.0%, while AFFO per share increased by $0.02 or 3.6%.  Additionally, since the close of the second quarter of 2026, the Company has completed $32.3 million in property dispositions to support ongoing strategic capital recycling.

Dividend
On November 3, 2026, the Company's Board of Directors declared a quarterly common stock dividend in the amount of $0.33 per share, payable on November 25, 2026, to stockholders of record as of November 13, 2026. This is the same quarterly common stock dividend amount as the prior quarter.

Items Impacting Our Results

• Net income and FFO for the three months ended September 30, 2026 were impacted by a reduction in deferred compensation expense, included in general and administrative expenses, totaling approximately $0.9 million in the third quarter of 2026 compared to the second quarter of 2026. The decrease in deferred compensation expense was generally due to fully amortized restricted stock awards and forfeited performance-based restricted stock units at June 30, 2026 totaling approximately $1.25 million, offset partially by an increase in amortization due to restricted stock awards and units granted during the third quarter 2026 totaling approximately $0.4 million.
  
  
• During the third quarter of 2026, the geriatric behavioral hospital operator, a tenant in six of the Company's properties, paid approximately $0.5 million in rent, an increase of approximately $0.2 million from the second quarter of 2026. The tenant previously signed a Letter of Intent (LOI) in July 2025 to sell its business to a behavioral healthcare provider. The prospective buyer is finalizing legal and business due diligence and drafting definitive purchase agreements, which include new leases for the six hospital properties owned by the Company. While the transaction is progressing, the Company cannot provide assurance regarding the specific timing or the ultimate certainty of the closing.
  
  
• During the third quarter of 2026, the Company sold a property, received net proceeds of approximately $0.1 million, and recorded a $0.7 million loss on sale.
  
  
• 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. The Company's expected returns on these investments are approximately 9.1% to 9.75%. The Company anticipates closing on the first of these properties in the fourth quarter of 2026, a second in the first quarter of 2027, and the remaining two between mid-2027 and early 2028; however, the Company cannot provide assurance as to the timing of when, or whether, these transactions will actually close.
  
  
• During the third quarter of 2026, the Company did not issue any shares under its ATM program.
  
  
• Subsequent to September 30, 2026, the Company sold two properties as part of the Company's capital recycling program for net proceeds totaling approximately $31.5 million. The proceeds are expected to fund acquisitions through like-kind exchange under Section 1031 and to be used for general corporate purposes. 

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, 2026, the Company had investments of approximately $1.2 billion in 196 real estate properties (including one property with sales-type leases and two properties classified as assets held for sale). The properties are located in 36 states, totaling approximately 4.5 million square feet in the aggregate.

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 CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars and shares in thousands, except per share amounts)
	September 30, 2026		December 31, 2025
	(Unaudited)
ASSETS
Real estate properties:
Land and land improvements	$             160,321		$           154,673
Buildings, improvements, and lease intangibles	1,058,175		1,047,743
Personal property	816		813
Total real estate properties	1,219,312		1,203,229
Less accumulated depreciation	(308,944)		(280,316)
Total real estate properties, net	910,368		922,913
Cash and cash equivalents	1,350		3,340
Assets held for sale, net	22,588		5,265
Other assets, net	66,105		59,239
Total assets	$           1,000,411		$           990,757
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Debt, net	$             558,382		$           532,199
Accounts payable and accrued liabilities	15,281		14,925
Other liabilities, net	13,308		14,246
Total liabilities	586,971		561,370
Commitments and contingencies
Stockholders' Equity
Preferred stock, $0.01 par value; 50,000 shares authorized; none issued and outstanding	—		—
Common stock, $0.01 par value; 450,000 shares authorized; 28,739 and 28,471 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively	287		285
Additional paid-in capital	724,107		717,450
Cumulative net income	98,757		90,777
Accumulated other comprehensive gain	13,028		6,691
Cumulative dividends	(422,739)		(385,816)
Total stockholders' equity	413,440		429,387
Total liabilities and stockholders' equity	$           1,000,411		$           990,757

The Consolidated Balance Sheets do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

 

COMMUNITY HEALTHCARE TRUST INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025 (Unaudited; Dollars and shares in thousands, except per share amounts)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
REVENUES
Rental income	$      32,193		$      30,814		$      94,433		$      90,672
Other operating interest	250		272		758		(423)
	32,443		31,086		95,191		90,249
EXPENSES
Property operating	5,975		5,930		18,209		17,610
General and administrative(1)	4,191		4,658		14,189		20,317
Depreciation and amortization	10,668		10,902		32,063		32,724
	20,834		21,490		64,461		70,651
OTHER (EXPENSE) INCOME
Loss on sale and impairment of depreciable real estate assets, net of gains	(1,039)		(888)		(1,039)		(248)
Interest expense	(7,515)		(7,075)		(21,742)		(20,019)
Credit loss reserve	—		—		—		(8,672)
Deferred income tax benefit	—		—		12		—
Interest and other income, net	13		7		19		15
	(8,541)		(7,956)		(22,750)		(28,924)
NET INCOME (LOSS)	$       3,068		$       1,640		$       7,980		$      (9,326)
Net income (loss) per common share - Basic & Diluted	$        0.09		$        0.03		$        0.22		$       (0.43)
Weighted Average Common Shares Outstanding-basic & Diluted	27,070		26,934		27,026		26,824

(1) General and administrative expenses for the three and nine months ended September 30, 2026 included stock-based compensation expense totaling approximately $1.9 million and $7.4 million, respectively. General and administrative expenses for the three and  nine months ended September 30, 2025 included stock-based compensation expense totaling approximately $2.5 million and $12.3 million, respectively. General and administrative expenses for the nine months ended September 30, 2025 included severance and transition-related expenses totaling $1.3 million and accelerated non-cash stock-based compensation amortization of $4.6 million related to the termination of a former executive officer.

The Consolidated Statements of Operations do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

 

COMMUNITY HEALTHCARE TRUST INCORPORATED RECONCILIATION OF FFO and AFFO (1) (Unaudited; Dollars and shares in thousands, except per share amounts)
	Three Months Ended September 30,
	2026		2025
Net income	$            3,068		$            1,640
Real estate depreciation and amortization	10,853		11,019
Loss on sale and impairment of real estate assets	1,039		888
Total adjustments	11,892		11,907
FFO (1)	$           14,960		$           13,547
Straight-line rent	(846)		(913)
Stock-based compensation	1,903		2,465
AFFO (1)	$           16,017		$           15,099
FFO per Common Share-Diluted (1)	$             0.54		$             0.50
AFFO per Common Share-Diluted (1)	$             0.58		$             0.56
Weighted Average Common Shares Outstanding-Diluted (2)	27,744		27,195

(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)	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

View original content:https://www.prnewswire.com/news-releases/community-healthcare-trust-announces-results-for-the-three-months-ended-september-30-2026-302928333.html

SOURCE Community Healthcare Trust Incorporated

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Community Healthcare Trust's third-quarter 2026 earnings and FFO per share?

Community Healthcare Trust reported $0.09 diluted earnings per share, $0.54 in funds from operations per diluted share and $0.58 in adjusted funds from operations per diluted share. The comparable third-quarter 2025 figures were $0.03, $0.50 and $0.56, respectively.

When does CHCT expect to close its four planned property acquisitions?

The company anticipates the first closing in the fourth quarter of 2026, the second in the first quarter of 2027, and the remaining two between mid-2027 and early 2028. The properties must be completed and occupied before acquisition; closing timing and completion are not assured.

Why did Community Healthcare Trust's deferred compensation expense decline in the third quarter of 2026?

Deferred compensation expense declined approximately $0.9 million from the second quarter, generally because of fully amortized restricted stock awards and forfeited performance-based restricted stock units at June 30, 2026, totaling approximately $1.25 million. Approximately $0.4 million of increased amortization from awards and units granted during the third quarter partially offset that reduction.

What is the status of the business sale by CHCT's geriatric behavioral hospital tenant?

The prospective buyer is finalizing legal and business due diligence and drafting definitive purchase agreements following a July 2025 letter of intent. The agreements include new leases for six hospital properties owned by Community Healthcare Trust. The company cannot assure the timing or ultimate closing of the transaction.