Community Healthcare Trust Announces the Closing of Recent Capital Recycling Real Estate Transactions

Rhea-AI Summary

Community Healthcare Trust (NYSE: CHCT) announced completed capital recycling transactions: a $29.7 million disposition of an inpatient rehabilitation facility closed on November 25, 2025, followed by the $28.5 million acquisition of a 100% leased, newly constructed inpatient rehabilitation facility on December 2, 2025. The company used a 1031 tax-deferred exchange to execute both deals.

Management said proceeds were reinvested at an approximately 140 basis points premium to the disposition cap rate, achieved no increase in leverage, and reduced the company’s largest tenant concentration.

Positive

• Disposition of $29.7 million closed on November 25, 2025
• Acquisition of $28.5 million closed on December 2, 2025
• Reinvested sale proceeds at an ~140 bps premium to disposition cap rate
• Completed via 1031 tax-deferred exchange preserving tax basis
• No increase in leverage from the transactions
• Transaction reduced largest tenant concentration

Negative

• None.

News Market Reaction

-3.43%

1 alert

-3.43% News Effect

On the day this news was published, CHCT declined 3.43%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Facility disposition: $29.7 million Facility acquisition: $28.5 million Cap rate premium: 140 basis points +1 more

4 metrics

Facility disposition $29.7 million Sale of inpatient rehabilitation facility closed November 25, 2025

Facility acquisition $28.5 million Acquisition of 100% leased inpatient rehabilitation facility on December 2, 2025

Cap rate premium 140 basis points Reinvestment premium to disposition cap rate cited by management

Leverage impact No increase Management stated transactions did not increase leverage

Market Reality Check

Price: $17.64 Vol: Volume 273,407 is slightl...

normal vol

$17.64 Last Close

Volume Volume 273,407 is slightly below the 303,453 20-day average (relative volume 0.9x). normal

Technical Shares at $15.10 are trading below the $16.00 200-day moving average and 27.65% below the 52-week high.

Peers on Argus

Peer moves were mixed, suggesting stock-specific drivers: UHT -0.19%, STRW +0.77...

Peer moves were mixed, suggesting stock-specific drivers: UHT -0.19%, STRW +0.77%, DHC -5.26%, GMRE -0.74%, SILA +1.83%. No broad healthcare REIT momentum is indicated.

Historical Context

5 past events · Latest: Dec 03 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 03	Capital recycling update	Positive	-3.4%	Announced sale and reinvestment into new inpatient rehabilitation facility.
Oct 28	Quarterly earnings	Neutral	-0.2%	Reported Q3 2025 results, new acquisition, properties under purchase agreements.
Oct 23	Dividend increase	Positive	+4.1%	Raised quarterly dividend to $0.475 per share, continuing streak since IPO.
Oct 03	Earnings call notice	Neutral	-3.5%	Scheduled Q3 2025 earnings release and conference call details.
Jul 29	Quarterly earnings	Negative	-3.1%	Reported Q2 2025 net loss with reserves, severance, and new acquisitions.

Pattern Detected

Across five recent events, two showed divergence between news tone and price reaction, including this capital recycling update.

Recent Company History

This announcement on Dec 3, 2025 continues Community Healthcare Trust’s focus on inpatient rehabilitation facilities and capital recycling, highlighted by a $29.7M sale and $28.5M purchase via a 1031 exchange. Recent quarters featured mixed earnings, with Q3 2025 net income of $1.6M and ongoing acquisitions, alongside earlier credit loss reserves and a net loss in Q2 2025. The company has consistently raised its dividend, including an increased $0.475 quarterly payout announced on Oct 23, 2025. Several informational and earnings-related releases previously saw negative price reactions.

Market Pulse Summary

This announcement detailed capital recycling, with a $29.7M disposition of an inpatient rehabilitati...

Analysis

This announcement detailed capital recycling, with a $29.7M disposition of an inpatient rehabilitation facility and a $28.5M acquisition of a 100% leased replacement asset via a 1031 exchange. Management highlighted an asserted 140 bps cap-rate premium, no increase in leverage, and reduced largest tenant concentration. In the context of recent mixed earnings and ongoing acquisitions, investors may watch realized returns on these assets, portfolio occupancy, tenant diversification, and future updates on the capital recycling program.

Key Terms

1031 tax deferred exchange, basis points

2 terms

1031 tax deferred exchange financial

"Community Healthcare Trust utilized a 1031 tax deferred exchange for these transactions."

A 1031 tax deferred exchange is a strategy that allows investors to swap one investment property for another without immediately paying taxes on any gains from the sale. This process helps investors defer taxes, similar to rolling over funds into a new investment, enabling them to grow their real estate holdings more efficiently over time. It matters because it can significantly improve cash flow and investment growth by postponing tax payments.

basis points financial

"at an approximately 140 basis points premium to our disposition cap rate"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

AI-generated analysis. Not financial advice.

FRANKLIN, Tenn., Dec. 3, 2025 /PRNewswire/ -- Community Healthcare Trust Incorporated (NYSE: CHCT) today announced the successful closing of a $29.7 million inpatient rehabilitation facility disposition on November 25, 2025 and the subsequent $28.5 million acquisition of a 100% leased, newly constructed inpatient rehabilitation facility on December 2, 2025. Community Healthcare Trust utilized a 1031 tax deferred exchange for these transactions.

"We are excited to demonstrate the value within the portfolio as part of our previously announced capital recycling program," stated David H. Dupuy, President and Chief Executive Officer of Community Healthcare Trust. "These transactions allowed us to reinvest sale proceeds at an approximately 140 basis points premium to our disposition cap rate, with no increase in leverage, while also reducing our largest tenant concentration."

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 $1.2 billion in 200 real estate properties (including one property with sales-type leases and two properties classified as held for sale). The properties are located in 36 states, totaling approximately 4.6 million square feet in the aggregate.

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, government budgetary reductions or impasses, tariffs and global trade tensions, and/or the conflicts in Ukraine and 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, 2024, 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.

CONTACT: Bill Monroe, 615-771-3052

View original content:https://www.prnewswire.com/news-releases/community-healthcare-trust-announces-the-closing-of-recent-capital-recycling-real-estate-transactions-302632376.html

SOURCE Community Healthcare Trust Incorporated

FAQ

What properties did CHCT sell and buy in December 2025?

CHCT sold an inpatient rehabilitation facility for $29.7 million (closed Nov 25, 2025) and acquired a 100% leased new inpatient rehabilitation facility for $28.5 million (closed Dec 2, 2025).

How did CHCT complete the capital recycling transactions on Dec 3, 2025?

The company used a 1031 tax-deferred exchange to complete the disposition and subsequent acquisition.

What financial benefit did CHCT report from the reinvestment?

CHCT said proceeds were reinvested at an approximately 140 basis points premium to the disposition cap rate.

Did the CHCT transactions change the company leverage level?

Management reported no increase in leverage resulting from these transactions.

How did the December 2025 transactions affect CHCT tenant concentration?

The transactions reduced the company’s largest tenant concentration, according to management.

Will CHCT pay taxes immediately on the sale proceeds from the Nov 25, 2025 disposition?

CHCT used a 1031 tax-deferred exchange, which defers immediate tax on sale proceeds when reinvested per the exchange rules.