Community Healthcare Trust Announces Results for the Three Months Ended December 31, 2024
Rhea-AI Summary
Community Healthcare Trust (NYSE: CHCT) reported its Q4 2024 results with net income of $1.8 million ($0.04 per diluted share). The company achieved FFO of $0.48 and AFFO of $0.55 per diluted share. During Q4, CHCT acquired three properties for $8.2 million, totaling 38,000 square feet with 100% occupancy and lease expirations through 2029.
The company disposed of one Texas property and a Georgia land parcel for net proceeds of $1.4 million. CHCT has entered agreements for future acquisitions, including a $9.5 million residential treatment campus and seven properties worth $169.5 million, with expected returns between 9.1% and 9.75%. The company also amended its credit agreement, increasing its revolving facility to $400 million and extending maturity to October 2029. A quarterly dividend of $0.4675 per share was declared, payable March 5, 2025.
Positive
- Acquisition of three properties for $8.2M with 100% occupancy
- Secured future acquisitions worth $179M with attractive returns of 9.1-9.75%
- Increased revolving credit facility to $400M with improved terms
- Maintained quarterly dividend at $0.4675 per share
Negative
- Net income of only $0.04 per diluted share
- Disposition of properties indicating potential portfolio restructuring needs
News Market Reaction – CHCT
In the trading session that priced this news, CHCT declined 6.31%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FRANKLIN, Tenn., Feb. 18, 2025 /PRNewswire/ -- Community Healthcare Trust Incorporated (NYSE: CHCT) (the "Company") today announced results for the three months ended December 31, 2024. The Company reported net income for the three months ended December 31, 2024 of approximately
Items Impacting Our Results include:
- During the three months ended December 31, 2024, the Company acquired three properties for an aggregate purchase price of approximately
$8.2 million 100.0% leased in the aggregate with lease expirations through 2029. These acquisitions were funded with proceeds from the Company's Revolving Credit Facility. - During the three months ended December 31, 2024, the Company disposed of one property in
Texas and a land parcel adjacent to a property inGeorgia . The Company received net proceeds of approximately$1.4 million - The Company has entered into a definitive purchase agreement for a residential treatment campus consisting of five buildings with an expected purchase price of approximately
$9.5 million 9.5% . The Company expects to close on this investment during the first quarter of 2025; however, the Company cannot provide assurance as to the timing of when, or whether, the transaction will actually close. - The Company also has seven properties under definitive purchase agreements, to be acquired after completion and occupancy, for an aggregate expected purchase price of approximately
$169.5 million 9.1% to9.75% . The Company anticipates closing on one of these properties in the first quarter of 2025 with the remainder throughout 2025, 2026 and 2027; however, the Company cannot provide assurance as to the timing of when, or whether, these transactions will actually close. - As previously announced, on October 16, 2024, the Company entered into a second amendment to the third amended and restated credit agreement, which among other things, (i) increased the Company's revolving credit facility to
$400.0 million - During the fourth quarter of 2024, the Company did not issue any shares under its at-the-market offering program.
- On February 13, 2025, the Company's Board of Directors declared a quarterly common stock dividend in the amount of
$0.4675
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, and/or the conflicts in
COMMUNITY HEALTHCARE TRUST INCORPORATED | |||
(Unaudited) | |||
December 31, 2024 | December 31, 2023 | ||
ASSETS | |||
Real estate properties: | |||
Land and land improvements | $ 149,501 | $ 136,532 | |
Buildings, improvements, and lease intangibles | 996,104 | 913,416 | |
Personal property | 326 | 299 | |
Total real estate properties | 1,145,931 | 1,050,247 | |
Less accumulated depreciation | (242,609) | (200,810) | |
Total real estate properties, net | 903,322 | 849,437 | |
Cash and cash equivalents | 4,384 | 3,491 | |
Restricted cash | — | 1,142 | |
Assets held for sale | 6,755 | 7,466 | |
Other assets, net | 78,102 | 83,876 | |
Total assets | $ 992,563 | $ 945,412 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Liabilities | |||
Debt, net | $ 485,955 | $ 403,256 | |
Accounts payable and accrued liabilities | 14,289 | 12,032 | |
Other liabilities, net | 16,354 | 16,868 | |
Total liabilities | 516,598 | 432,156 | |
Commitments and contingencies | |||
Stockholders' Equity | |||
Preferred stock, | — | — | |
Common stock, | 282 | 276 | |
Additional paid-in capital | 704,524 | 688,156 | |
Cumulative net income | 85,675 | 88,856 | |
Accumulated other comprehensive gain | 17,631 | 16,417 | |
Cumulative dividends | (332,147) | (280,449) | |
Total stockholders' equity | 475,965 | 513,256 | |
Total liabilities and stockholders' equity | $ 992,563 | $ 945,412 | |
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 | Twelve Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
REVENUES | |||||||
Rental income | $ 28,983 | $ 28,100 | $ 114,565 | $ 108,682 | |||
Other operating interest, net | 315 | 1,024 | 1,221 | 4,163 | |||
29,298 | 29,124 | 115,786 | 112,845 | ||||
EXPENSES | |||||||
Property operating | 5,485 | 5,598 | 22,834 | 20,713 | |||
General and administrative (1) | 4,809 | 3,728 | 19,058 | 27,338 | |||
Depreciation and amortization | 10,797 | 10,248 | 42,778 | 39,693 | |||
21,091 | 19,574 | 84,670 | 87,744 | ||||
OTHER (EXPENSE) INCOME | |||||||
Net gain on sale and impairments of depreciable real estate assets | 14 | — | (121) | (102) | |||
Interest expense | (6,405) | (5,019) | (23,706) | (17,792) | |||
Credit loss reserve | — | — | (11,000) | — | |||
Deferred income tax expense | — | — | — | (306) | |||
Interest and other income, net | 16 | 36 | 530 | 813 | |||
(6,375) | (4,983) | (34,297) | (17,387) | ||||
NET INCOME (LOSS) | $ 1,832 | $ 4,567 | $ (3,181) | $ 7,714 | |||
NET INCOME (LOSS) PER COMMON SHARE (1) | |||||||
Net income (loss) per common share - Basic | $ 0.04 | $ 0.15 | $ (0.23) | $ 0.20 | |||
Net income (loss) per common share - Diluted | $ 0.04 | $ 0.15 | $ (0.23) | $ 0.20 | |||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING- | 26,682 | 25,981 | 26,530 | 25,202 | |||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING- | 26,682 | 25,981 | 26,530 | 25,202 | |||
(1) General and administrative expenses for the twelve months ended December 31, 2024 included stock-based compensation expense totaling approximately |
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 December 31, | |||
2024 | 2023 | ||
Net income | $ 1,832 | $ 4,567 | |
Real estate depreciation and amortization | 10,927 | 10,347 | |
Net gain on sale of depreciable real estate assets | (14) | — | |
Total adjustments | 10,913 | 10,347 | |
FFO (1) | $ 12,745 | $ 14,914 | |
Straight-line rent | (712) | (872) | |
Stock-based compensation | 2,597 | 2,029 | |
AFFO (1) | $ 14,630 | $ 16,071 | |
FFO per Common Share-Diluted (1) | $ 0.48 | $ 0.57 | |
AFFO per Common Share-Diluted (1) | $ 0.55 | $ 0.61 | |
Weighted Average Common Shares Outstanding-Diluted (2) | 26,786 | 26,346 | |
(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. |
CONTACT: Bill Monroe, 615-771-3052
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SOURCE Community Healthcare Trust Incorporated