false000163156900016315692026-08-042026-08-04
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 4, 2026
COMMUNITY HEALTHCARE TRUST INCORPORATED
(Exact Name of Registrant as Specified in its Charter)
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| Maryland | | 001-37401 | | 46-5212033 |
| (State or other jurisdiction of incorporation) | | (Commission File Number) | | (I.R.S. Employer Identification No.) |
3326 Aspen Grove Drive, Suite 150, Franklin, Tennessee 37067
| | |
| (Address of principal executive offices) (Zip Code) |
(615) 771-3052
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | | | | | | | |
| Title of each Class | Trading Symbol | Name of each exchange on which registered | |
| Common stock, $0.01 par value per share | CHCT | New York Stock Exchange | |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On August 4, 2026, Community Healthcare Trust Incorporated (the "Company") issued a press release announcing its earnings for the second quarter ended June 30, 2026. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference in its entirety.
This information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities under that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act.
Item 7.01 Regulation FD Disclosure
The Company is furnishing its Supplemental Information for the second quarter ended June 30, 2026, which is also contained on its website (www.chct.reit). See Exhibit 99.2 to this Current Report on Form 8-K.
The Company has prepared a Strategic Plan Presentation for the second quarter ended June 30, 2026, which is also contained on its website (www.chct.reit). See Exhibit 99.3 to this Current Report on Form 8-K.
This information furnished pursuant to this Item 7.01, including Exhibits 99.2 and 99.3, shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act.
Item 9.01 Financial Statements and Exhibits
The exhibits required by Item 601 of Regulation S-K which are filed with this report are listed in the Exhibit Index and are hereby incorporated in by reference.
EXHIBIT INDEX
| | | | | |
| Exhibit No. | Description |
| 99.1 | Press release dated August 4, 2026 |
| 99.2 | Supplemental Information - Second Quarter 2026 |
| 99.3 | Strategic Plan Presentation dated August 2026 |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| COMMUNITY HEALTHCARE TRUST INCORPORATED |
| | |
| By: | /s/ William G. Monroe IV |
| | William G. Monroe IV |
| | Executive Vice President and Chief Financial Officer |
| August 4, 2026 | | |
Exhibit 99.1
News Release
Community Healthcare Trust Announces Results for the Three Months Ended June 30, 2026
FRANKLIN, Tenn., August 4, 2026 / PRNewswire / -- Community Healthcare Trust Incorporated (NYSE: CHCT) (the "Company") today announced results for the three months ended June 30, 2026. The Company reported net income for the three months ended June 30, 2026 of approximately $2.4 million, or $0.06 per diluted common share. Funds from operations ("FFO") and adjusted funds from operations ("AFFO") for the three months ended June 30, 2026 totaled $0.48 and $0.56 per diluted common share, respectively.
Highlights include:
Strategic Plan Presentation
A new, strategic Investor Presentation is furnished as Exhibit 99.3 on our Form 8-K filed on August 4, 2026 and is also available on the Investor Relations section of the Company’s website at www.chct.reit. It highlights leadership's decisive steps to rightsize the dividend to fund growth. CHCT is enhancing its capital allocation policy to focus on acquisitions, redevelopment, occupancy growth, and operating improvements designed to drive long-term shareholder value. Key strategic priorities for the next 18-24 months include occupancy improvement to 92%, portfolio reinvestment with 9-12% yields on capital, strategic capital recycling with over $70 million of marketed dispositions, and acquisition growth beginning with the current $99 million high-quality pipeline under contract with 9-10% expected yields and approximately 2.5% escalators.
Dividend
The Board unanimously declared a quarterly common stock dividend of $0.33 per share, payable on August 31, 2026, to stockholders of record as of August 19, 2026. This represents a 31% reduction from the prior dividend payment and lowers the Company's AFFO payout ratio to approximately 60%, enabling the dividend to grow with earnings going forward. Reallocating this capital is expected to provide an additional $25 million to $30 million of retained capital over the next two years to fund accretive acquisitions, portfolio reinvestments, and occupancy improvements.
Expanded Disclosure
The Company has revised and expanded its Supplemental Information, filed as Exhibit 99.2 to Form 8-K. The enhanced report introduces Funds Available for Distribution (FAD), detailing leasing commissions, tenant improvements, and recurring capital expenditures. Additional disclosures include year-to-date property investments, dispositions, and capital recycling activity, alongside detailed portfolio metrics such as asset/ownership structures, leasing activity, lease types, and rent escalators.
Items Impacting Our Results include:
•During the second quarter of 2026, the Company sold a property, received net proceeds of approximately $0.4 million, and recorded a $46,000 gain on sale.
•During the second quarter of 2026, the geriatric behavioral hospital operator, a tenant in six of the Company's properties, paid $0.4 million in rent, an increase of $0.1 million from the first quarter of 2026. In July 2025, the tenant signed a Letter of Intent (LOI) for the sale of its business to a behavioral healthcare provider. The buyer is finalizing legal and business due diligence and has entered the drafting phase of the definitive purchase documents, including new leases on the six hospitals 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.
•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 one of these properties in the third quarter of 2026 and another in the fourth quarter of 2026 and the remaining two properties in 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 2026, the Company did not issue any shares under its ATM program.
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 June 30, 2026, the Company had investments of approximately $1.2 billion in 197 real estate properties (including one property with sales-type leases). 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)
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| June 30, 2026 | | December 31, 2025 | | |
| (Unaudited) | | | | |
ASSETS | | | | | |
Real estate properties: | | | | | |
Land and land improvements | $ | 163,506 | | | $ | 154,673 | | | |
Buildings, improvements, and lease intangibles | 1,077,295 | | | 1,047,743 | | | |
Personal property | 814 | | | 813 | | | |
Total real estate properties | 1,241,615 | | | 1,203,229 | | | |
Less accumulated depreciation | (301,593) | | | (280,316) | | | |
Total real estate properties, net | 940,022 | | | 922,913 | | | |
Cash and cash equivalents | 2,673 | | | 3,340 | | | |
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| | | | | |
| Assets held for sale | — | | | 5,265 | | | |
Other assets, net | 60,900 | | | 59,239 | | | |
Total assets | $ | 1,003,595 | | | $ | 990,757 | | | |
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LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | |
Liabilities | | | | | |
Debt, net | $ | 559,321 | | | $ | 532,199 | | | |
Accounts payable and accrued liabilities | 17,691 | | | 14,925 | | | |
| | | | | |
Other liabilities, net | 12,341 | | | 14,246 | | | |
Total liabilities | 589,353 | | | 561,370 | | | |
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Commitments and contingencies | | | | | |
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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; 28,655 and 28,471 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively | 287 | | | 285 | | | |
Additional paid-in capital | 722,454 | | | 717,450 | | | |
Cumulative net income | 95,689 | | | 90,777 | | | |
Accumulated other comprehensive gain | 9,047 | | | 6,691 | | | |
Cumulative dividends | (413,235) | | | (385,816) | | | |
Total stockholders’ equity | 414,242 | | | 429,387 | | | |
Total liabilities and stockholders' equity | $ | 1,003,595 | | | $ | 990,757 | | | |
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| 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 SIX MONTHS ENDED JUNE 30, 2026 AND 2025
(Unaudited; Dollars and shares in thousands, except per share amounts)
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| Three Months Ended June 30, | | Six Months Ended June 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
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| REVENUES | | | | | | | |
| Rental income | $ | 30,971 | | | $ | 30,128 | | | $ | 62,240 | | | $ | 59,858 | |
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| Other operating interest | 253 | | | (1,043) | | | 508 | | | (695) | |
| 31,224 | | | 29,085 | | | 62,748 | | | 59,163 | |
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| EXPENSES | | | | | | | |
| Property operating | 5,865 | | | 5,585 | | | 12,234 | | | 11,680 | |
General and administrative(1) | 4,890 | | | 10,559 | | | 9,998 | | | 15,659 | |
| Depreciation and amortization | 10,738 | | | 10,879 | | | 21,395 | | | 21,822 | |
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| 21,493 | | | 27,023 | | | 43,627 | | | 49,161 | |
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| OTHER (EXPENSE) INCOME | | | | | | | |
| Net gains on sale, net of impairment of real estate assets | 46 | | | 640 | | | — | | | 640 | |
| Interest expense | (7,428) | | | (6,592) | | | (14,227) | | | (12,944) | |
| Credit loss reserve | — | | | (8,672) | | | — | | | (8,672) | |
| Deferred income tax benefit | 12 | | | — | | | 12 | | | — | |
| Interest and other income, net | 3 | | | 5 | | | 6 | | | 8 | |
| (7,367) | | | (14,619) | | | (14,209) | | | (20,968) | |
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| NET INCOME (LOSS) | $ | 2,364 | | | $ | (12,557) | | | $ | 4,912 | | | $ | (10,966) | |
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| Net income (loss) per common share - Basic & Diluted | $ | 0.06 | | | $ | (0.50) | | | $ | 0.12 | | | $ | (0.47) | |
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| Weighted Average Common Shares Outstanding-basic & Diluted | 27,016 | | | 26,803 | | | 27,004 | | | 26,768 | |
(1) General and administrative expenses for the three and six months ended June 30, 2025, included severance and transition-related expenses totaling $1.3 million related to a termination in 2025. Non-cash stock-based compensation expense for the three and six months ended June 30, 2026 totaled $2.8 million and $5.5 million. respectively. Non-cash stock-based compensation expense for the three and six months ended June 30, 2025 included accelerated amortization of $4.6 million related to the termination in 2025. Non-cash stock-based compensation expense for the three and six months ended June 30, 2025 totaled $7.1 million and $9.8 million, respectively. |
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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 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 June 30, |
| 2026 | | 2025 |
| Net income | $ | 2,364 | | | $ | (12,557) | |
| Real estate depreciation and amortization | 10,900 | | | 10,861 | |
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| Net gains on sale, net of impairment of real estate assets | (46) | | | (640) | |
Credit loss reserve(2) | — | | | 8,672 | |
| Total adjustments | 10,854 | | | 18,893 | |
FFO (1)(2)(3) | $ | 13,218 | | | $ | 6,336 | |
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| Straight-line rent | (591) | | | (1,184) | |
| Stock-based compensation | 2,778 | | | 2,531 | |
Accelerated amortization of stock-based compensation(4) | — | | | 4,591 | |
Severance and transition related expenses(4) | — | | | 1,311 | |
AFFO (1)(2)(3) | $ | 15,405 | | | $ | 13,585 | |
FFO per Common Share-Diluted (1)(2) | $ | 0.48 | | | $ | 0.23 | |
AFFO per Common Share-Diluted (1)(2) | $ | 0.56 | | | $ | 0.50 | |
Weighted Average Common Shares Outstanding-Diluted (5) | 27,752 | | | 27,011 | |
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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. |
| (2) | | 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 $8.7 million. Because these notes are incidental to the Company's main business, the Company added back these reserves in its calculations of FFO and AFFO. |
| (3) | | During the three months ended June 30, 2025, the Company reversed interest related to a geriatric behavioral hospital tenant totaling approximately $1.7 million, resulting in a reduction of FFO and AFFO per diluted share of approximately $0.06. |
| (4) | | During the three months ended June 30, 2025, the Company recorded severance and transition-related charges totaling approximately $5.9 million, including non-cash accelerated amortization of stock-based compensation of approximately $4.6 million which reduced FFO per diluted common share by approximately $0.22. |
| (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
SOURCE: Community Healthcare Trust Incorporated
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| Second Quarter 2026 Supplemental Information |
Table Of Contents
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Corporate Information | 3 |
Company Snapshot | 4 |
Financial Highlights | 5 |
Consolidated Balance Sheets | 6 |
Consolidated Statements of Operations | 7 |
Reconciliation of Non-GAAP Measures | 8 |
Weighted Average Shares | 10 |
Debt Summary | 11 |
Investment Activity | 12 |
Portfolio Diversification | 13 |
Portfolio and Lease Statistics | 14 |
Lease Expirations | 15 |
Property Locations | 16 |
Reporting Definitions | 23 |
Disclaimers | 26 |
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| | Second Quarter 2026 Supplemental Information |
Corporate Information
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| Community Healthcare Trust Incorporated |
| 3326 Aspen Grove Drive, Suite 150 |
| Franklin, TN 37067 |
| About CHCT |
| | | | | | |
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| $1.25bn | | 197 | | $101.4m | | 4.5m |
| Gross Real Estate Investments | | Property Count | | Annualized NOI | | Square Feet |
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|
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| Executive Management Team | | Covering Analysts | | |
| | |
| David H. Dupuy | | A. Goldfarb |
| Chief Executive Officer and President | | Piper Sandler |
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| William G. Monroe IV | | J. Kammert |
| Executive Vice President, Chief Financial Officer | | Evercore ISI |
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| Leigh Ann Stach | | M. Lewis |
| Executive Vice President, Chief Accounting Officer | | Truist Securities |
| | | | | | |
| Mark Kearns | | B. Oxford |
| Senior Vice President, Asset Management | | Colliers International Securities |
| | | | | | |
| | | | R. Stevenson |
| | | | Huntington Securities |
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| Board Of Directors | | | | Contacts | | |
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| Alan Gardner | | Investor Relations |
| Chairman of the Board | | Phone: 615-771-3052 |
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| Robert Hensley | | E-mail: Investorrelations@chct.reit |
| Audit Committee Chair | | Website: www.chct.reit |
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| Claire Gulmi | | | | |
| Compensation Committee Chair | | Transfer Agent |
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| R. Lawrence Van Horn | | Equiniti Trust Company |
| ESG Committee Chair | | 1-800-937-5449 |
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| Cathrine Cotman | | | | |
| Board Member | | Independent Registered Public Accounting Firm |
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| David H. Dupuy | | BDO USA, P.C. |
| Board Member | | 501 Commerce Street, Suite 1400 |
| | | | Nashville, TN 37203 |
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| Second Quarter 2026 Supplemental Information | 3 |
Company Snapshot
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| 2Q 2026 |
Gross real estate investments (in thousands) (1) | $1,249,684 | |
| Total properties | 197 | |
| % Leased | 89.8 | % |
| Total square feet owned | 4,520,097 | |
| Weighted Average remaining lease term (years) | 7.2 | |
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| |
| Cash and cash equivalents (in thousands) | $2,673 | |
| Debt to Total Capitalization | 43.9 | % |
| Interest rate per annum on Revolving Line of Credit | 5.3 | % |
Weighted average interest rate per annum on Term Loans (2) | 4.7 | % |
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| Equity market cap (in millions) | $523.8 | |
| Quarterly dividend paid in the period (per share) | $0.48 | |
| Quarter end stock price (per share) | $18.28 | |
| Dividend yield | 10.5 | % |
| Common shares outstanding | 28,654,743 | |
| ___________ | |
(1) Includes one property with sales-type leases. |
(2) Term Loans are fully hedged; this rate represents the weighted average hedged rates. |
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| Second Quarter 2026 Supplemental Information | 4 |
Financial Highlights (Amounts in thousands, except per share data)
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| |
| Statements Of Operations Items | 2Q 2026 | | 1Q 2026 | | 4Q 2025 | | 3Q 2025 | | 2Q 2025 |
| |
| Revenues | $31,224 | | | $31,524 | | | $30,946 | | | $31,086 | | | $29,085 | |
| Net income (loss) | $2,364 | | | $2,548 | | | $14,428 | | | $1,640 | | | ($12,557) | |
| NOI | $25,359 | | | $25,155 | | | $24,932 | | | $25,156 | | | $23,500 | |
EBITDAre | $20,472 | | | $20,050 | | | $20,173 | | | $20,505 | | | $4,274 | |
Adjusted EBITDAre | $23,250 | | | $22,761 | | | $22,772 | | | $22,970 | | | $20,068 | |
| FFO | $13,218 | | | $13,399 | | | $13,329 | | | $13,547 | | | $6,336 | |
| AFFO | $15,405 | | | $15,350 | | | $14,943 | | | $15,099 | | | $13,585 | |
| FAD | $12,994 | | | $13,313 | | | $11,578 | | | $11,863 | | | $11,289 | |
| | | | | | | | | |
| Per Diluted Share: | | | | | | | | | |
Net income (loss) attributable to common shareholders | $0.06 | | | $0.07 | | | $0.51 | | | $0.03 | | | ($0.50) | |
| FFO | $0.48 | | | $0.49 | | | $0.49 | | | $0.50 | | | $0.23 | |
| AFFO | $0.56 | | | $0.56 | | | $0.55 | | | $0.56 | | | $0.50 | |
| | | | | | | | | |
| Balance Sheet Items | 2Q 2026 | | 1Q 2026 | | 4Q 2025 | | 3Q 2025 | | 2Q 2025 |
| Assets | | | | | | | | | |
| Total real estate properties | $1,241,615 | | | $1,238,080 | | | $1,203,229 | | | $1,190,151 | | | $1,158,312 | |
| Total assets | $1,003,595 | | | $1,010,093 | | | $990,757 | | | $987,261 | | | $966,292 | |
| | | | | | | | | |
| Capitalization | | | | | | | | | |
| Net debt | $559,321 | | | $559,260 | | | $ | 532,199 | | | $530,138 | | | $500,077 | |
| Total capitalization | $1,275,156 | | | $1,271,561 | | | $ | 1,241,902 | | | $1,229,442 | | | $1,200,858 | |
| Net debt/total capitalization | 43.9% | | 44.0% | | 42.9% | | 43.1% | | 41.6% |
| Market valuation | $523,809 | | | $454,006 | | | $ | 467,501 | | | $435,613 | | | $471,766 | |
| Enterprise value | $1,080,457 | | | $1,010,649 | | | $ | 996,360 | | | $962,368 | | | $966,980 | |
| | | | | | | | | |
| | | | | |
| Second Quarter 2026 Supplemental Information | 5 |
Consolidated Balance Sheets (Amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
Assets | 2Q 2026 | | 1Q 2026 | | 4Q 2025 | | 3Q 2025 | | 2Q 2025 |
| |
| | | | | | | | | |
Land and land improvements | $163,506 | | | $162,587 | | | $154,673 | | | $154,272 | | | $152,887 | |
Buildings, improvements, and lease intangibles | 1,077,295 | | | 1,074,680 | | | 1,047,743 | | | 1,035,070 | | | 1,004,616 | |
Personal property | 814 | | | 813 | | | 813 | | | 809 | | | 809 | |
Total real estate properties | $1,241,615 | | | $1,238,080 | | | $1,203,229 | | | $1,190,151 | | | $1,158,312 | |
Less accumulated depreciation | (301,593) | | | (290,958) | | | (280,316) | | | (272,481) | | | (262,961) | |
Total real estate properties, net | $940,022 | | | $947,122 | | | $922,913 | | | $917,670 | | | $895,351 | |
Cash and cash equivalents | 2,673 | | | 2,617 | | | 3,340 | | | 3,383 | | | 4,863 | |
| | | | | | | | | |
| | | | | | | | | |
| Assets held for sale, net | — | | | — | | | 5,265 | | | 6,205 | | | 5,465 | |
Other assets, net | 60,900 | | | 60,354 | | | 59,239 | | | 60,003 | | | 60,613 | |
Total assets | $1,003,595 | | | $1,010,093 | | | $990,757 | | | $987,261 | | | $966,292 | |
| | | | | | | | | |
Liabilities And Stockholders' Equity | | | | | | | | | |
| | | | | | | | | |
Debt, net | $559,321 | | | $559,260 | | | $532,199 | | | $530,138 | | | $500,077 | |
Accounts payable and accrued liabilities | 17,691 | | | 16,431 | | | 14,925 | | | 17,205 | | | 13,944 | |
| | | | | | | | | |
Other liabilities, net | 12,341 | | | 13,059 | | | 14,246 | | | 13,095 | | | 14,451 | |
Total liabilities | $589,353 | | | $588,750 | | | $561,370 | | | $560,438 | | | $528,472 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Preferred stock | — | | | — | | | — | | | — | | | — | |
Common stock | 287 | | | 286 | | | 285 | | | 285 | | | 284 | |
Additional paid-in capital | 722,454 | | | 719,819 | | | 717,450 | | | 714,890 | | | 712,498 | |
Cumulative net income | 95,689 | | | 93,325 | | | 90,777 | | | 76,349 | | | 74,709 | |
Accumulated other comprehensive gain | 9,047 | | | 7,395 | | | 6,691 | | | 7,568 | | | 9,121 | |
Cumulative dividends | (413,235) | | | (399,482) | | | (385,816) | | | (372,269) | | | (358,792) | |
Total stockholders’ equity | $414,242 | | | $421,343 | | | $429,387 | | | $426,823 | | | $437,820 | |
Total liabilities and stockholders' equity | $1,003,595 | | | $1,010,093 | | | $990,757 | | | $987,261 | | | $966,292 | |
| | | | | |
| Second Quarter 2026 Supplemental Information | 6 |
Consolidated Statements Of Operations (Amounts in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2Q 2026 | | 1Q 2026 | | 4Q 2025 | | 3Q 2025 | | 2Q 2025 |
Revenues | | | | | | | | | |
Rental income | $30,971 | | $31,269 | | $30,679 | | $30,814 | | $30,128 |
| | | | | | | | | |
| | | | | | | | | |
Other operating interest | 253 | | 255 | | 267 | | 272 | | (1,043) |
| Total Revenues | $31,224 | | $31,524 | | $30,946 | | $31,086 | | $29,085 |
| | | | | | | | | |
Expenses | | | | | | | | | |
Property operating | 5,865 | | 6,369 | | 6,014 | | 5,930 | | 5,585 |
General and administrative (1) | 4,890 | | 5,108 | | 4,778 | | 4,658 | | 10,559 |
Depreciation and amortization | 10,738 | | 10,657 | | 10,814 | | 10,902 | | 10,879 |
| | | | | | | | | |
| Total Expenses | $21,493 | | $22,134 | | $21,606 | | $21,490 | | $27,023 |
| | | | | | | | | |
| Other (Expense) Income | | | | | | | | | |
| | | | | | | | | |
| Gain (loss), net of impairment, on the sale of real estate assets | 46 | | (46) | | 12,051 | | (888) | | 640 |
| Interest expense | (7,428) | | (6,799) | | (6,959) | | (7,075) | | (6,592) |
| Credit loss reserve | — | | — | | — | | — | | (8,672) |
| Deferred income tax benefit (expense) | 12 | | — | | (23) | | — | | — |
| Interest and other income, net | 3 | | 3 | | 19 | | 7 | | 5 |
| Total Other (Expense) Income | ($7,367) | | ($6,842) | | $5,088 | | ($7,956) | | ($14,619) |
| Net Income (Loss) | $2,364 | | $2,548 | | $14,428 | | $1,640 | | ($12,557) |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Net Income (Loss) Per Common Share - Basic & Diluted | $0.06 | | $0.07 | | $0.51 | | $0.03 | | ($0.50) |
Weighted Average Common Shares Outstanding | 27,016 | | 26,991 | | 26,953 | | 26,934 | | 26,803 |
Dividends Declared, Per Common Share, In The Period | $0.4800 | | $0.4775 | | $0.4750 | | $0.4725 | | $0.4700 |
| | | | | | | | | |
|
(1) General And Administrative Expenses: | | | | | | | | |
| Non-cash vs. Cash: | | | | | | | | | |
Non-cash (stock-based compensation) | 56.8 | % | | 53.1 | % | | 54.4 | % | | 52.9 | % | | 54.3 | % |
Cash | 43.2 | % | | 46.9 | % | | 45.6 | % | | 47.1 | % | | 45.7 | % |
| As a % of Revenue: | | | | | | | | | |
Non-cash (stock-based compensation) | 8.9 | % | | 8.6 | % | | 8.4 | % | | 8.0 | % | | 8.7 | % |
Cash | 6.8 | % | | 7.6 | % | | 7.0 | % | | 7.1 | % | | 7.3 | % |
| | | | | | | | | |
| | | | | |
| Second Quarter 2026 Supplemental Information | 7 |
Reconciliation of Non-GAAP Measures (Amounts in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
FFO, AFFO, AFFO Adjusted, FAD | 2Q 2026 | | 1Q 2026 | | 4Q 2025 | | 3Q 2025 | | 2Q 2025 |
| Net Income (Loss) | $2,364 | | | $2,548 | | | $14,428 | | | $1,640 | | | ($12,557) | |
| Real estate depreciation and amortization | 10,900 | | | 10,805 | | | 10,952 | | | 11,019 | | | 10,861 | |
| Credit loss reserve | — | | | — | | | — | | | — | | | 8,672 | |
| | | | | | | | | |
| (Gain) loss, net of impairment, on the sale of real estate assets | (46) | | | 46 | | | (12,051) | | | 888 | | | (640) | |
| | | | | | | | | |
| FFO | $13,218 | | | $13,399 | | | $13,329 | | | $13,547 | | | $6,336 | |
| Straight-line rent | (591) | | | (760) | | | (985) | | | (913) | | | (1,184) | |
| Stock-based compensation | 2,778 | | | 2,711 | | | 2,599 | | | 2,465 | | | 2,531 | |
| Accelerated amortization of stock-based compensation | — | | | — | | | — | | | — | | | 4,591 | |
| Severance and transition related expenses | — | | | — | | | — | | | — | | | 1,311 | |
| AFFO | $15,405 | | | $15,350 | | | $14,943 | | | $15,099 | | | $13,585 | |
| Non-real estate depreciation and amortization | 24 | | | 26 | | | 28 | | | 29 | | | 17 | |
| Amortization of above (below) market leases | (41) | | | (38) | | | 2 | | | (41) | | | (54) | |
| Amortization of debt issuance costs | 255 | | | 255 | | | 255 | | | 255 | | | 255 | |
| AFFO, Adjusted for other non-cash items | $15,643 | | | $15,593 | | | $15,228 | | | $15,342 | | | $13,803 | |
| Leasing commissions | (202) | | | (607) | | | (909) | | | (804) | | | (323) | |
| Tenant improvements | (1,107) | | | (733) | | | (1,278) | | | (1,169) | | | (448) | |
| Recurring capex | (1,340) | | | (940) | | | (1,463) | | | (1,506) | | | (1,743) | |
| FAD | $12,994 | | | $13,313 | | | $11,578 | | | $11,863 | | | $11,289 | |
| | | | | | | | | |
| Per Diluted Share Amounts: | | | | | | | | | |
FFO Per Common Share | $0.48 | | | $0.49 | | | $0.49 | | | $0.50 | | | $0.23 | |
AFFO Per Common Share | $0.56 | | | $0.56 | | | $0.55 | | | $0.56 | | | $0.50 | |
| Weighted Average Common Shares Outstanding | 27,752 | | | 27,570 | | | 27,259 | | | 27,195 | | | 27,011 | |
| | | | | |
| Second Quarter 2026 Supplemental Information | 8 |
Reconciliation of Non-GAAP Measures (continued) (Amounts in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Operating Income (NOI) | 2Q 2026 | | 1Q 2026 | | 4Q 2025 | | 3Q 2025 | | 2Q 2025 |
Net income (loss) | $2,364 | | | $2,548 | | | $14,428 | | | $1,640 | | | ($12,557) | |
| General and administrative | 4,890 | | | 5,108 | | | 4,778 | | | 4,658 | | | 4,657 | |
| Accelerated amortization of deferred compensation | — | | | — | | | — | | | — | | | 4,591 | |
| Severance and transition-related compensation | — | | | — | | | — | | | — | | | 1,311 | |
| Depreciation and amortization | 10,738 | | | 10,657 | | | 10,814 | | | 10,902 | | | 10,879 | |
| (Gain) loss, net of impairment, on the sale of real estate assets | (46) | | | 46 | | | (12,051) | | | 888 | | | (640) | |
| Credit loss reserve | — | | | — | | | — | | | — | | | 8,672 | |
| Interest expense | 7,428 | | | 6,799 | | | 6,959 | | | 7,075 | | | 6,592 | |
| Deferred Income tax (benefit) expense | (12) | | | — | | | 23 | | | — | | | — | |
| Interest and other income, net | (3) | | | (3) | | | (19) | | | (7) | | | (5) | |
| NOI | $25,359 | | $25,155 | | $24,932 | | $25,156 | | $23,500 |
| | | | | | | | | |
| Annualized NOI | $101,436 | | $100,620 | | $99,728 | | $100,624 | | $94,000 |
|
EBITDAre And Adjusted EBITDAre | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Net income (loss) | $2,364 | | | $2,548 | | | $14,428 | | | $1,640 | | | ($12,557) | |
| Interest expense | 7,428 | | | 6,799 | | | 6,959 | | | 7,075 | | | 6,592 | |
| Depreciation and amortization | 10,738 | | | 10,657 | | | 10,814 | | | 10,902 | | | 10,879 | |
| Deferred Income tax (benefit) expense | (12) | | | — | | | 23 | | | — | | | — | |
| (Gain) loss, net of impairment, on the sale of real estate assets | (46) | | | 46 | | | (12,051) | | | 888 | | | (640) | |
EBITDAre | $20,472 | | | $20,050 | | | $20,173 | | | $20,505 | | | $4,274 | |
| Non-cash stock-based compensation expense | 2,778 | | | 2,711 | | | 2,599 | | | 2,465 | | | 2,531 | |
| Accelerated amortization of stock-based compensation | — | | | — | | | — | | | — | | | 4,591 | |
| Credit loss reserve | — | | | — | | | — | | | — | | | 8,672 | |
| | | | | | | | | |
Adjusted EBITDAre | $23,250 | | | $22,761 | | | $22,772 | | | $22,970 | | | $20,068 | |
| | | | | | | | | |
Adjusted EBITDAre Annualized | $93,000 | | $91,044 | | $91,088 | | $91,880 | | $80,272 |
| | | | | |
| Second Quarter 2026 Supplemental Information | 9 |
Weighted Average Shares (Amounts in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| Weighted Average Common Shares Outstanding | 2Q 2026 | | 1Q 2026 | | 4Q 2025 | | 3Q 2025 | | 2Q 2025 |
| | | | | | | | | |
| Weighted average common shares outstanding | 28,606 | | | 28,556 | | | 28,471 | | | 28,430 | | | 28,364 | |
Unvested restricted shares | (1,590) | | | (1,565) | | | (1,518) | | | (1,496) | | | (1,561) | |
Weighted average common shares outstanding - EPS | 27,016 | | | 26,991 | | | 26,953 | | | 26,934 | | | 26,803 | |
| | | | | | | | | |
Weighted average common shares outstanding - FFO Basic | 27,016 | | | 26,991 | | | 26,953 | | | 26,934 | | | 26,803 | |
| Potential dilutive common shares (from below) | 736 | | | 579 | | | 306 | | | 261 | | | 208 | |
| Weighted average common shares outstanding - FFO Diluted | 27,752 | | | 27,570 | | | 27,259 | | | 27,195 | | | 27,011 | |
| | | | | | | | | |
| Treasury Share Calculation | | | | | | | | | |
| Unrecognized deferred compensation-end of period | $16,233 | | | $17,257 | | | $17,665 | | | $19,968 | | | $19,919 | |
| Unrecognized deferred compensation-beginning of period | $17,616 | | | $17,665 | | | $19,968 | | | $19,919 | | | $25,420 | |
| Average unrecognized deferred compensation | $16,925 | | | $17,461 | | | $18,817 | | | $19,944 | | | $22,670 | |
| Average share price per share | $17.36 | | | $16.87 | | | $14.93 | | | $15.66 | | | $16.50 | |
| Treasury shares | 975 | | | 1,035 | | | 1,260 | | | 1,274 | | | 1,374 | |
| | | | | | | | | |
| Unvested restricted shares | (1,590) | | | (1,565) | | | (1,518) | | | (1,496) | | | (1,561) | |
| Unvested restricted share units | (121) | | | (49) | | | (48) | | | (39) | | | (21) | |
| Treasury shares | 975 | | | 1,035 | | | 1,260 | | | 1,274 | | | 1,374 | |
| Potential dilutive common shares | 736 | | | 579 | | | 306 | | | 261 | | | 208 | |
| | | | | | | | | |
|
| | | | | |
| Second Quarter 2026 Supplemental Information | 10 |
Debt Summary
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| Principal Balance | | Floating Rate | | Fixed Rate | | Maturity | |
| (in thousands) | | | | | | | |
| | | | | | | | |
| Revolving credit facility | $ | 285,000 | | | 5.32% | | | | 10/2029 | |
| Term loan A-4 (fully hedged) | 125,000 | | | | | 3.60% | | 3/2028 | |
| Term loan A-5 (fully hedged) | 150,000 | | | | | 5.61% | | 3/2030 | |
| | | | | | | | |
| | | | | | | | |
| Debt | 560,000 | | | | | | | | |
| Deferred Financing Costs, net | (679) | | | | | | | | |
| Debt, net | $ | 559,321 | | | | | | | | |
| | | | | | | | |
| |
Selected Debt Covenant Performance | | | | | | | | | | | | | | | | |
| Metric | | | | Required | | 2Q 2026 |
| Leverage ratio | | | | ≤ 60.0% | | 44.6 | % |
| Fixed charge coverage ratio | | | | ≥ 1.50 | | 3.0 |
| Tangible net worth (in thousands) | | | | ≥ $504,476 | | $695,589 |
| Secured indebtedness | | | | ≤ 30.0% | | — | % |
| Minimum debt service coverage ratio | | | | ≥ 2.0 | | 3.2 |
| | | | | |
| Second Quarter 2026 Supplemental Information | 11 |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
2026 Property Investments |
| | | | | | |
| Property | Market | Property Type | Date Acquired | % Leased at Acquisition | Purchase Price (in thousands) | Square Feet |
| Nobis Rehabilitation Hospital | Pinellas Park, FL | IRF | 2/19/2026 | 100.0 | % | $28,500 | 37,151 | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | 100.0 | % | $28,500 | 37,151 | |
| | | | | | |
| | | | | | |
| 2026 Property Dispositions and Capital Recycling |
| | | | | | |
| | | | | | |
| Property | Market | Property Type | Date Disposed | % Occupied | Sales Price (in thousands) | Square Feet |
| Colonial Blvd Office | Fort Myers, FL | SC | 2/12/2026 | — | % | $5,550 | 46,356 | |
| Batesville Regional Medical Center | Batesville, MS | MOB | 6/5/2026 | 100.0 | % | $460 | 9,263 | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | $6,010 | 55,619 | |
| | | | | |
| Second Quarter 2026 Supplemental Information | 12 |
Portfolio Diversification (Amounts in thousands, except property count)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Property | | Leased Square Footage | | Annualized Rent |
| Property Type | | Count | | Amount | | % | | Amount | | % |
| Medical Office Building (MOB) | | 92 | | 1,933 | | | 47.6 | % | | $ | 40,357 | | | 35.0 | % |
| Inpatient Rehabilitation Facilities (IRF) | | 11 | | 438 | | | 10.8 | % | | 26,808 | | | 23.2 | % |
| Acute Inpatient Behavioral (AIB) | | 11 | | 550 | | | 13.6 | % | | 18,637 | | | 16.1 | % |
| Specialty Centers (SC) | | 35 | | 306 | | | 7.5 | % | | 9,955 | | | 8.6 | % |
| Physician Clinics (PC) | | 33 | | 397 | | | 9.8 | % | | 9,216 | | | 8.0 | % |
| Surgical Centers and Hospitals (SCH) | | 6 | | 140 | | | 3.4 | % | | 4,628 | | | 4.0 | % |
| Behavioral Specialty Facilities (BSF) | | 7 | | 186 | | | 4.6 | % | | 3,622 | | | 3.1 | % |
| Long-term Acute Care Hospitals (LTACH) | | 2 | | 109 | | | 2.7 | % | | 2,312 | | | 2.0 | % |
| Total | | 197 | | 4,059 | | 100 | % | | $ | 115,535 | | | 100 | % |
| | | | | | | | | | |
| | Property | | Leased Square Footage | | Annualized Rent |
| State | | Count | | Amount | | % | | Amount | | % |
| Florida | | 26 | | 453 | | | 11.2 | % | | $ | 16,758 | | | 14.5 | % |
| Texas | | 15 | | 410 | | | 10.1 | % | | 16,328 | | | 14.1 | % |
| Ohio | | 25 | | 462 | | | 11.4 | % | | 11,070 | | | 9.6 | % |
| Illinois | | 20 | | 418 | | | 10.3 | % | | 10,955 | | | 9.5 | % |
| Pennsylvania | | 15 | | 296 | | | 7.3 | % | | 6,710 | | | 5.8 | % |
| Maryland | | 5 | | 160 | | | 3.9 | % | | 4,611 | | | 4.0 | % |
| Massachusetts | | 3 | | 173 | | | 4.3 | % | | 4,338 | | | 3.8 | % |
| Louisiana | | 2 | | 90 | | | 2.2 | % | | 4,166 | | | 3.6 | % |
| West Virginia | | 2 | | 140 | | | 3.4 | % | | 3,474 | | | 3.0 | % |
| Georgia | | 7 | | 166 | | | 4.1 | % | | 3,373 | | | 2.9 | % |
| All Others | | 77 | | 1,291 | | | 31.8 | % | | 33,752 | | | 29.2 | % |
| Total | | 197 | | 4,059 | | 100 | % | | $ | 115,535 | | | 100 | % |
| | | | | | | | | | |
| | Property | | Leased Square Footage | | Annualized Rent |
| Tenant | | Count | | Amount | | % | | Amount | | % |
| US Healthvest | | 3 | | 239 | | | 5.9 | % | | $ | 8,227 | | | 7.1 | % |
| Lifepoint Health | | 4 | | 124 | | | 3.1 | % | | 7,269 | | | 6.3 | % |
| PAM Health | | 2 | | 93 | | | 2.3 | % | | 5,637 | | | 4.9 | % |
| Assurance Health | | 6 | | 79 | | | 1.9 | % | | 3,312 | | | 2.9 | % |
| Summit Behavioral Healthcare | | 1 | | 132 | | | 3.3 | % | | 3,264 | | | 2.8 | % |
| University of Pittsburgh Medical Center | | 6 | | 114 | | | 2.8 | % | | 3,053 | | | 2.6 | % |
| Worcester Behavioral Innovations Hospital | | 1 | | 82 | | | 2.0 | % | | 2,814 | | | 2.4 | % |
| Nobis Rehabilitation Partners | | 1 | | 37 | | | 0.9 | % | | 2,654 | | | 2.3 | % |
| Exalt Health | | 1 | | 37 | | | 0.9 | % | | 2,654 | | | 2.3 | % |
| Oceans Behavioral | | 2 | | 60 | | | 1.5 | % | | 2,586 | | | 2.2 | % |
| All Others | | 170 | | 3,062 | | | 75.4 | % | | 74,065 | | | 64.2 | % |
| Total | | 197 | | 4,059 | | 100 | % | | $ | 115,535 | | | 100 | % |
| | | | | |
| Second Quarter 2026 Supplemental Information | 13 |
Portfolio Overview (Amounts in thousands, except property count)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Asset Type | Property Count | | | | Leased Occupancy | | Annualized Rent |
| | Gross RSF | | | Amount | | % |
| | | | | | | | | |
| Single-Tenant Outpatient | 87 | | | 1,362 | | | 95.1 | % | | $31,134 | | | 27.0 | % |
| Multi-Tenant Outpatient | 85 | | | 2,003 | | | 83.2 | % | | 36,644 | | | 31.7 | % |
Inpatient Rehab Facilities(1) | 13 | | | 547 | | | 100.0 | % | | 29,120 | | | 25.2 | % |
| Acute Inpatient Behavioral | 12 | | | 608 | | | 90.4 | % | | 18,637 | | | 16.1 | % |
| Total Portfolio | 197 | | | 4,520 | | | 89.8 | % | | $115,535 | | | 100.0 | % |
| | | | | | | | | |
| (1) Includes two LTACH facilities. | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Ownership Type | Property Count | | Gross RSF |
| Fee Simple | | Ground Lease | | Fee Simple | | Ground Lease |
| | | | | | | |
| Count / Square Footage | 191 | | 6 | | 4,420 | | 100 |
| % of Total Portfolio | 97.0 | % | | 3.0 | % | | 97.8 | % | | 2.2 | % |
Lease Statistics (Amounts in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Lease Activity | 2Q 2026 | | 1Q 2026 | | 4Q 2025 | | 3Q 2025 | | 2Q 2025 |
| | | |
| Leased Square Feet at beginning of period | 4,073 | | 4,076 | | 4,059 | | 4,063 | | 4,073 |
| Vacancies | (57) | | (93) | | (22) | | (76) | | (19) |
| New leases | 51 | | 53 | | 43 | | 35 | | 9 |
| Acquisitions/(Dispositions) | (9) | | 37 | | (4) | | 37 | | — |
| | | | | | | | | |
| Leased Square Feet at end of period | 4,059 | | 4,073 | | 4,076 | | 4,059 | | 4,063 |
| | | | | | | | | |
| Renewals square feet | 155 | | 83 | | 78 | | 249 | | 102 |
| Trailing 12-months retention rate | 69.5 | % | | 71.0 | % | | 82.8 | % | | 78.3 | % | | 68.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| Lease Type & Escalators | Leased RSF | | % Total | | Average Annual Fixed Lease Escalator % | | % of Leases with Fixed Escalators |
| |
| Net | 3,501 | | | 86.3 | % | | | | |
| Modified Gross | 378 | | | 9.3 | % | | | | |
| Gross | 180 | | | 4.4 | % | | | | |
| Total | 4,059 | | | 100.0 | % | | 2.0 | % | | 93.4 | % |
| | | | | |
| Second Quarter 2026 Supplemental Information | 14 |
Lease Expirations
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Leased Sq. Ft. | | Annualized Rent |
| Year | | Number of Leases | | Amount (thousands) | | Percent (%) | | Amount ($) (thousands) | | Percent (%) |
| 2026 | | 30 | | | 157 | | | 3.9 | % | | $ | 3,065 | | | 2.6 | % |
| 2027 | | 75 | | | 415 | | | 10.2 | % | | 9,426 | | | 8.1 | % |
| 2028 | | 72 | | | 466 | | | 11.5 | % | | 9,764 | | | 8.4 | % |
| 2029 | | 50 | | | 392 | | | 9.7 | % | | 10,266 | | | 8.9 | % |
| 2030 | | 36 | | | 299 | | | 7.4 | % | | 7,023 | | | 6.1 | % |
| 2031 | | 45 | | | 527 | | | 13.0 | % | | 14,205 | | | 12.3 | % |
| 2032 | | 25 | | | 196 | | | 4.8 | % | | 3,989 | | | 3.5 | % |
| 2033 | | 15 | | | 83 | | | 2.0 | % | | 1,970 | | | 1.7 | % |
| 2034 | | 21 | | | 267 | | | 6.6 | % | | 9,668 | | | 8.4 | % |
| 2035 | | 16 | | | 233 | | | 5.7 | % | | 9,013 | | | 7.8 | % |
| Thereafter | | 45 | | | 1,015 | | | 25.0 | % | | 36,968 | | | 32.0 | % |
| Month-to-Month | | 7 | | | 9 | | | 0.2 | % | | 178 | | | 0.2 | % |
| Totals | | 437 | | | 4,059 | | | 100 | % | | $ | 115,535 | | | 100 | % |
| | | | | |
| Second Quarter 2026 Supplemental Information | 15 |
Property Locations
Approximately 55% of our property revenues are in MSAs with populations over 1,000,000 and approximately 95% are in statistical areas with populations over 100,000.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property Name | Property Type | Area | % of Square Feet | Annualized Rent ($000's) | % of Annualized Rent | Population | MSA/MISA | Rank |
| Lancaster MOB | MOB | 10,098 | | 0.22 | % | $ | 313.8 | | 0.27 | % | 12,844,441 | | Los Angeles-Long Beach-Anaheim, CA | 2 |
| Congress Medical Building 350 | MOB | 17,543 | | 0.39 | % | $ | 169.7 | | 0.15 | % | 9,434,123 | | Chicago-Naperville-Elgin, IL-IN | 3 |
| Congress Medical Building 390 | MOB | 30,855 | | 0.68 | % | $ | 526.9 | | 0.46 | % | 9,434,123 | | Chicago-Naperville-Elgin, IL-IN | 3 |
| Future Diagnostics Group | SC | 8,876 | | 0.20 | % | $ | 320.5 | | 0.28 | % | 9,434,123 | | Chicago-Naperville-Elgin, IL-IN | 3 |
| Gurnee Medical Office Building | MOB | 22,968 | | 0.51 | % | $ | 207.3 | | 0.18 | % | 9,434,123 | | Chicago-Naperville-Elgin, IL-IN | 3 |
| New Lenox Medical Clinic | PC | 7,905 | | 0.17 | % | $ | 347.8 | | 0.30 | % | 9,434,123 | | Chicago-Naperville-Elgin, IL-IN | 3 |
| Morris Medical Center | MOB | 18,470 | | 0.41 | % | $ | 388.7 | | 0.34 | % | 9,434,123 | | Chicago-Naperville-Elgin, IL-IN | 3 |
| Oak Lawn Medical Plaza | MOB | 26,508 | | 0.59 | % | $ | 468.8 | | 0.41 | % | 9,434,123 | | Chicago-Naperville-Elgin, IL-IN | 3 |
| Lincolnwood Medical Building | PC | 14,863 | | 0.33 | % | $ | 323.4 | | 0.28 | % | 9,434,123 | | Chicago-Naperville-Elgin, IL-IN | 3 |
| Joliet Medical Building | SC | 44,888 | | 0.99 | % | $ | 462.0 | | 0.40 | % | 9,434,123 | | Chicago-Naperville-Elgin, IL-IN | 3 |
| Endeavor Health | PC | 13,700 | | 0.30 | % | $ | 293.2 | | 0.25 | % | 9,434,123 | | Chicago-Naperville-Elgin, IL-IN | 3 |
| Skin MD | PC | 13,565 | | 0.30 | % | $ | 539.8 | | 0.47 | % | 9,434,123 | | Chicago-Naperville-Elgin, IL-IN | 3 |
| Chicago Behavioral Hospital | AIB | 85,000 | | 1.88 | % | $ | 2,316.1 | | 2.00 | % | 9,434,123 | | Chicago-Naperville-Elgin, IL-IN | 3 |
| US HealthVest - Lake | AIB | 83,658 | | 1.85 | % | $ | 3,054.1 | | 2.64 | % | 9,434,123 | | Chicago-Naperville-Elgin, IL-IN | 3 |
| Texas Rehabilitation Hospital of Fort Worth, LLC | IRF | 39,761 | | 0.88 | % | $ | 2,109.9 | | 1.83 | % | 8,477,157 | | Dallas-Fort Worth-Arlington, TX | 4 |
| Bayside Medical Center | MOB | 50,593 | | 1.12 | % | $ | 1,119.8 | | 0.97 | % | 7,904,627 | | Houston-Pasadena-The Woodlands, TX | 5 |
| Gessner Road MOB | MOB | 14,347 | | 0.32 | % | $ | 368.2 | | 0.32 | % | 7,904,627 | | Houston-Pasadena-The Woodlands, TX | 5 |
| Clear Lake Institute for Rehabilitation | IRF | 55,646 | | 1.23 | % | $ | 3,137.2 | | 2.72 | % | 7,904,627 | | Houston-Pasadena-The Woodlands, TX | 5 |
| TRT Recovery Cartersville, LLC | BSF | 38,339 | | 0.85 | % | $ | 1,048.8 | | 0.91 | % | 6,482,182 | | Atlanta-Sandy Springs-Roswell, GA | 6 |
| Dahlonega Medical Mall | MOB | 22,805 | | 0.50 | % | $ | 399.3 | | 0.35 | % | 6,482,182 | | Atlanta-Sandy Springs-Roswell, GA | 6 |
| Clinton Towers MOB | MOB | 37,371 | | 0.83 | % | $ | 917.9 | | 0.79 | % | 6,465,724 | | Washington-Arlington-Alexandria, DC-VA-MD-WV | 7 |
| 2301 Research Boulevard | MOB | 93,130 | | 2.06 | % | $ | 2,432.7 | | 2.11 | % | 6,465,724 | | Washington-Arlington-Alexandria, DC-VA-MD-WV | 7 |
| Haddon Hill Professional Center | MOB | 25,118 | | 0.56 | % | $ | 303.7 | | 0.26 | % | 6,329,118 | | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 9 |
| Hopebridge - Westlake | BSF | 15,057 | | 0.33 | % | $ | 239.2 | | 0.21 | % | 6,329,118 | | Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 9 |
| Continuum Wellness Center | MOB | 8,227 | | 0.18 | % | $ | 172.9 | | 0.15 | % | 5,228,938 | | Phoenix-Mesa-Chandler, AZ | 10 |
| | | | | |
| Second Quarter 2026 Supplemental Information | 16 |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property Name | Property Type | Area | % of Square Feet | Annualized Rent ($000's) | % of Annualized Rent | Population | MSA/MISA | Rank |
| Virtuous Health Center | SCH | 11,722 | | 0.26 | % | $ | 441.3 | | 0.38 | % | 5,228,938 | | Phoenix-Mesa-Chandler, AZ | 10 |
| Desert Mtn Health Center | BSF | 14,046 | | 0.31 | % | $ | 647.2 | | 0.56 | % | 5,228,938 | | Phoenix-Mesa-Chandler, AZ | 10 |
| Associated Surgical Center of Dearborn | SCH | 12,400 | | 0.27 | % | $ | 377.8 | | 0.33 | % | 4,390,913 | | Detroit-Warren-Dearborn, MI | 14 |
| Berry Surgical Center | SCH | 27,217 | | 0.60 | % | $ | 653.0 | | 0.57 | % | 4,390,913 | | Detroit-Warren-Dearborn, MI | 14 |
| Smokey Point Behavioral Hospital | AIB | 70,100 | | 1.55 | % | $ | 2,856.6 | | 2.47 | % | 4,161,883 | | Seattle-Tacoma-Bellevue, WA | 15 |
| Sanford Health Bemidji 1611 | MOB | 45,800 | | 1.01 | % | $ | 1,616.3 | | 1.40 | % | 3,790,295 | | Minneapolis-St. Paul-Bloomington, MN-WI | 16 |
| Sanford Health Bemidji 1705 | MOB | 28,900 | | 0.64 | % | $ | 649.5 | | 0.56 | % | 3,790,295 | | Minneapolis-St. Paul-Bloomington, MN-WI | 16 |
| Bay Area Physicians Center | MOB | 17,943 | | 0.40 | % | $ | 421.5 | | 0.36 | % | 3,418,895 | | Tampa-St. Petersburg-Clearwater, FL | 17 |
| Nobis Rehabilitation Hospital | IRF | 37,151 | | 0.82 | % | $ | 2,654.5 | | 2.30 | % | 3,418,895 | | Tampa-St. Petersburg-Clearwater, FL | 17 |
| Sanderling Dialysis Center - 2102 | SC | 11,300 | | 0.25 | % | $ | 450.1 | | 0.39 | % | 3,282,248 | | San Diego-Chula Vista-Carlsbad, CA | 18 |
| Liberty Dialysis | SC | 8,450 | | 0.19 | % | $ | 270.7 | | 0.23 | % | 3,092,037 | | Denver-Aurora-Centennial, CO | 19 |
| Bassin Center For Plastic-Surgery-Villages | PC | 2,894 | | 0.06 | % | $ | 183.0 | | 0.16 | % | 2,957,672 | | Orlando-Kissimmee-Sanford, FL | 20 |
| Kissimmee Medical Plaza | PC | 4,634 | | 0.10 | % | $ | 139.0 | | 0.12 | % | 2,957,672 | | Orlando-Kissimmee-Sanford, FL | 20 |
| PAM Health Rehabilitation Hospital of Ocoee | IRF | 37,151 | | 0.82 | % | $ | 2,500.0 | | 2.16 | % | 2,957,672 | | Orlando-Kissimmee-Sanford, FL | 20 |
| Orthopaedic Associates of Osceola | PC | 15,167 | | 0.34 | % | $ | 378.7 | | 0.33 | % | 2,957,672 | | Orlando-Kissimmee-Sanford, FL | 20 |
| Medical Village at Wintergarden | MOB | 21,532 | | 0.48 | % | $ | 642.8 | | 0.56 | % | 2,957,672 | | Orlando-Kissimmee-Sanford, FL | 20 |
| Waters Edge Medical | MOB | 23,388 | | 0.52 | % | $ | 412.8 | | 0.36 | % | 2,857,781 | | Baltimore-Columbia-Towson, MD | 22 |
| Northbay Professional Pavilion | MOB | 19,656 | | 0.43 | % | $ | 488.3 | | 0.42 | % | 2,857,781 | | Baltimore-Columbia-Towson, MD | 22 |
| Righttime Medical Care | SC | 6,236 | | 0.14 | % | $ | 359.5 | | 0.31 | % | 2,857,781 | | Baltimore-Columbia-Towson, MD | 22 |
| Belleville Medical Office | PC | 6,487 | | 0.14 | % | $ | — | | — | % | 2,814,421 | | St. Louis, MO-IL | 23 |
| Eyecare Partners - 1310 | PC | 5,560 | | 0.12 | % | $ | 55.5 | | 0.05 | % | 2,814,421 | | St. Louis, MO-IL | 23 |
| Eyecare Partners - 3990 | SCH | 16,608 | | 0.37 | % | $ | 310.6 | | 0.27 | % | 2,814,421 | | St. Louis, MO-IL | 23 |
| Eyecare Partners - 204 | PC | 6,311 | | 0.14 | % | $ | 52.0 | | 0.05 | % | 2,814,421 | | St. Louis, MO-IL | 23 |
| Heartland Women's Healthcare of Advantia Shiloh | PC | 16,212 | | 0.36 | % | $ | 366.6 | | 0.32 | % | 2,814,421 | | St. Louis, MO-IL | 23 |
| Heartland Women's Healthcare of Advantia Wentzville | PC | 7,900 | | 0.17 | % | $ | 140.4 | | 0.12 | % | 2,814,421 | | St. Louis, MO-IL | 23 |
| Baptist Health | PC | 13,500 | | 0.30 | % | $ | 387.5 | | 0.34 | % | 2,813,140 | | San Antonio-New Braunfels, TX | 24 |
| San Antonio Head & Neck Surgical Associates | PC | 6,500 | | 0.14 | % | $ | 199.4 | | 0.17 | % | 2,813,140 | | San Antonio-New Braunfels, TX | 24 |
| Rehabilitation Institute of South San Antonio | IRF | 38,000 | | 0.84 | % | $ | 2,203.1 | | 1.91 | % | 2,813,140 | | San Antonio-New Braunfels, TX | 24 |
| JDH Professional Building | MOB | 12,376 | | 0.27 | % | $ | 264.5 | | 0.23 | % | 2,813,140 | | San Antonio-New Braunfels, TX | 24 |
| The Heart & Vascular Center | PC | 15,878 | | 0.35 | % | $ | 323.4 | | 0.28 | % | 2,421,992 | | Pittsburgh, PA | 28 |
| | | | | |
| Second Quarter 2026 Supplemental Information | 17 |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property Name | Property Type | Area | % of Square Feet | Annualized Rent ($000's) | % of Annualized Rent | Population | MSA/MISA | Rank |
| Butler Medical Center | MOB | 10,116 | | 0.22 | % | $ | 172.5 | | 0.15 | % | 2,421,992 | | Pittsburgh, PA | 28 |
| Forefront Dermatology Building | PC | 15,650 | | 0.35 | % | $ | 357.9 | | 0.31 | % | 2,421,992 | | Pittsburgh, PA | 28 |
| Nesbitt Place | MOB | 56,003 | | 1.24 | % | $ | 1,078.3 | | 0.93 | % | 2,421,992 | | Pittsburgh, PA | 28 |
| Greentree Primary Care | MOB | 33,715 | | 0.75 | % | $ | 1,053.5 | | 0.91 | % | 2,421,992 | | Pittsburgh, PA | 28 |
| Vascular Access Centers of Southern Nevada | SC | 4,800 | | 0.11 | % | $ | 131.4 | | 0.11 | % | 2,407,226 | | Las Vegas-Henderson-North Las Vegas, NV | 29 |
| Assurance Health System - 11690 | AIB | 14,381 | | 0.32 | % | $ | 601.5 | | 0.52 | % | 2,312,858 | | Cincinnati, OH-KY-IN | 30 |
| Cavalier Medical & Dialysis Center | MOB | 17,614 | | 0.39 | % | $ | 224.9 | | 0.19 | % | 2,312,858 | | Cincinnati, OH-KY-IN | 30 |
| 51 Cavalier Blvd | MOB | 17,935 | | 0.40 | % | $ | 228.1 | | 0.20 | % | 2,312,858 | | Cincinnati, OH-KY-IN | 30 |
| Anderson Ferry Plaza | MOB | 43,791 | | 0.97 | % | $ | 654.1 | | 0.57 | % | 2,312,858 | | Cincinnati, OH-KY-IN | 30 |
| Liberty Rehabilitation Hospital | IRF | 37,720 | | 0.83 | % | $ | 2,556.6 | | 2.21 | % | 2,312,858 | | Cincinnati, OH-KY-IN | 30 |
| Florence Medical Building | MOB | 17,845 | | 0.39 | % | $ | 263.3 | | 0.23 | % | 2,312,858 | | Cincinnati, OH-KY-IN | 30 |
| Prairie Star Medical Facility I | MOB | 24,724 | | 0.55 | % | $ | 648.1 | | 0.56 | % | 2,270,682 | | Kansas City, MO-KS | 31 |
| Prairie Star Medical Facility II | MOB | 24,842 | | 0.55 | % | $ | 292.5 | | 0.25 | % | 2,270,682 | | Kansas City, MO-KS | 31 |
| Ravines Edge | MOB | 16,751 | | 0.37 | % | $ | — | | — | % | 2,242,028 | | Columbus, OH | 32 |
| Hope Valley Recovery - Circleville | BSF | 7,787 | | 0.17 | % | $ | 88.5 | | 0.08 | % | 2,242,028 | | Columbus, OH | 32 |
| Sedalia Medical Center | MOB | 19,426 | | 0.43 | % | $ | 342.8 | | 0.30 | % | 2,242,028 | | Columbus, OH | 32 |
| Assurance Health, LLC | AIB | 10,200 | | 0.23 | % | $ | 395.3 | | 0.34 | % | 2,205,695 | | Indianapolis-Carmel-Greenwood, IN | 33 |
| Assurance Health System - 900 | AIB | 13,722 | | 0.30 | % | $ | 538.0 | | 0.47 | % | 2,205,695 | | Indianapolis-Carmel-Greenwood, IN | 33 |
| Kindred Hospital Indianapolis North | LTACH | 38,123 | | 0.84 | % | $ | 1,652.4 | | 1.43 | % | 2,205,695 | | Indianapolis-Carmel-Greenwood, IN | 33 |
| Brook Park Medical Building | MOB | 18,444 | | 0.41 | % | $ | 99.7 | | 0.09 | % | 2,165,775 | | Cleveland, OH | 35 |
| Smith Road | MOB | 16,802 | | 0.37 | % | $ | 334.7 | | 0.29 | % | 2,165,775 | | Cleveland, OH | 35 |
| Assurance - Hudson | AIB | 13,290 | | 0.29 | % | $ | 601.7 | | 0.52 | % | 2,165,775 | | Cleveland, OH | 35 |
| Rockside Medical Center | MOB | 55,413 | | 1.23 | % | $ | 759.5 | | 0.66 | % | 2,165,775 | | Cleveland, OH | 35 |
| Westlake Medical Office | MOB | 14,100 | | 0.31 | % | $ | 244.2 | | 0.21 | % | 2,165,775 | | Cleveland, OH | 35 |
| Virginia Orthopaedic & Spine Specialists | PC | 8,445 | | 0.19 | % | $ | 162.5 | | 0.14 | % | 1,797,213 | | Virginia Beach-Chesapeake-Norfolk, VA-NC | 37 |
| LTAC Hospital of SE Massachusetts | LTACH | 70,657 | | 1.56 | % | $ | 659.4 | | 0.57 | % | 1,708,161 | | Providence-Warwick, RI-MA | 39 |
| Warwick Oncology Center | SC | 10,236 | | 0.23 | % | $ | 325.3 | | 0.28 | % | 1,708,161 | | Providence-Warwick, RI-MA | 39 |
| South County Hospital | PC | 13,268 | | 0.29 | % | $ | 330.4 | | 0.29 | % | 1,708,161 | | Providence-Warwick, RI-MA | 39 |
| Mercy Rehabilitation Hospital | IRF | 39,637 | | 0.88 | % | $ | 2,109.9 | | 1.83 | % | 1,512,813 | | Oklahoma City, OK | 42 |
| Memphis Center | MOB | 11,669 | | 0.26 | % | $ | 246.5 | | 0.21 | % | 1,341,412 | | Memphis, TN-MS-AR | 45 |
| Sanderling Dialysis Center - 7710 | SC | 10,133 | | 0.22 | % | $ | 599.8 | | 0.52 | % | 1,341,412 | | Memphis, TN-MS-AR | 45 |
| | | | | |
| Second Quarter 2026 Supplemental Information | 18 |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property Name | Property Type | Area | % of Square Feet | Annualized Rent ($000's) | % of Annualized Rent | Population | MSA/MISA | Rank |
| Gardendale MOB | MOB | 12,956 | | 0.29 | % | $ | 333.0 | | 0.29 | % | 1,197,766 | | Birmingham, AL | 48 |
| Sanford West Behavioral Facility | BSF | 96,886 | | 2.14 | % | $ | 1,421.3 | | 1.23 | % | 1,183,645 | | Grand Rapids-Wyoming-Kentwood, MI | 49 |
| Glastonbury | MOB | 48,375 | | 1.07 | % | $ | 961.9 | | 0.83 | % | 1,171,426 | | Hartford-West Hartford-East Hartford, CT | 50 |
| Sterling Medical Center | MOB | 28,478 | | 0.63 | % | $ | 592.8 | | 0.51 | % | 1,155,653 | | Buffalo-Cheektowaga, NY | 51 |
| Los Alamos Professional Plaza | MOB | 43,395 | | 0.96 | % | $ | 432.3 | | 0.37 | % | 921,549 | | McAllen-Edinburg-Mission, TX | 64 |
| UMass Memorial Health Cancer Center | SC | 20,046 | | 0.44 | % | $ | 865.2 | | 0.75 | % | 888,502 | | Worcester, MA | 68 |
| Worcester Behavioral | AIB | 81,972 | | 1.81 | % | $ | 2,813.8 | | 2.44 | % | 888,502 | | Worcester, MA | 68 |
| El Paso Rehabilitation Hospital | IRF | 38,000 | | 0.84 | % | $ | 2,203.1 | | 1.91 | % | 881,291 | | El Paso, TX | 70 |
| Columbia Gastroenterology Surgery Center | PC | 17,016 | | 0.38 | % | $ | 352.7 | | 0.31 | % | 879,918 | | Columbia, SC | 71 |
| Genesis Care - Bonita Springs | SC | 4,445 | | 0.10 | % | $ | 304.6 | | 0.26 | % | 875,607 | | Cape Coral-Fort Myers, FL | 72 |
| Cape Coral Suite 3 | SC | 12,130 | | 0.27 | % | $ | 477.8 | | 0.41 | % | 875,607 | | Cape Coral-Fort Myers, FL | 72 |
| Cape Coral Suite 3A | MOB | 2,023 | | 0.04 | % | $ | 41.4 | | 0.04 | % | 875,607 | | Cape Coral-Fort Myers, FL | 72 |
| Cape Coral Suite 5 & 6 | MOB | 6,379 | | 0.14 | % | $ | 107.4 | | 0.09 | % | 875,607 | | Cape Coral-Fort Myers, FL | 72 |
| Corporate Office 3660 | MOB | 22,104 | | 0.49 | % | $ | 658.3 | | 0.57 | % | 875,607 | | Cape Coral-Fort Myers, FL | 72 |
| Corporate Annex Building | MOB | 16,000 | | 0.35 | % | $ | 329.0 | | 0.28 | % | 875,607 | | Cape Coral-Fort Myers, FL | 72 |
| Wildwood Hammock RPET Facility | SC | 10,832 | | 0.24 | % | $ | 455.2 | | 0.39 | % | 875,607 | | Cape Coral-Fort Myers, FL | 72 |
| Wildwood Hammock - Diagnostic Imaging | SC | 9,376 | | 0.21 | % | $ | 430.4 | | 0.37 | % | 875,607 | | Cape Coral-Fort Myers, FL | 72 |
| Wildwood Hammock - Northland | MOB | 1,201 | | 0.03 | % | $ | 14.4 | | 0.01 | % | 875,607 | | Cape Coral-Fort Myers, FL | 72 |
| Eye Health of America 4101 | MOB | 43,322 | | 0.96 | % | $ | 1,026.2 | | 0.89 | % | 875,607 | | Cape Coral-Fort Myers, FL | 72 |
| Eye Health of America 2665 | MOB | 3,200 | | 0.07 | % | $ | 36.2 | | 0.03 | % | 875,607 | | Cape Coral-Fort Myers, FL | 72 |
| Eye Health of America 1320 | MOB | 6,757 | | 0.15 | % | $ | 63.0 | | 0.05 | % | 875,607 | | Cape Coral-Fort Myers, FL | 72 |
| Everest Physical Rehabilitation Hospital | IRF | 37,151 | | 0.82 | % | $ | 2,654.5 | | 2.30 | % | 874,790 | | Lakeland-Winter Haven, FL | 73 |
| Parkway Professional Plaza | MOB | 41,909 | | 0.93 | % | $ | 1,014.4 | | 0.88 | % | 874,790 | | Lakeland-Winter Haven, FL | 73 |
| Davita Turner Road | SC | 18,125 | | 0.40 | % | $ | 372.7 | | 0.32 | % | 826,554 | | Dayton-Kettering-Beavercreek, OH | 76 |
| Davita Springboro Pike | SC | 10,510 | | 0.23 | % | $ | 192.4 | | 0.17 | % | 826,554 | | Dayton-Kettering-Beavercreek, OH | 76 |
| Davita Business Center Court | SC | 12,988 | | 0.29 | % | $ | 242.4 | | 0.21 | % | 826,554 | | Dayton-Kettering-Beavercreek, OH | 76 |
| Mercy One Physicians Clinic | PC | 17,318 | | 0.38 | % | $ | 414.3 | | 0.36 | % | 758,539 | | Des Moines-West Des Moines, IA | 82 |
| Daytona Medical Office | MOB | 20,193 | | 0.45 | % | $ | 382.3 | | 0.33 | % | 746,933 | | Deltona-Daytona Beach-Ormond Beach, FL | 83 |
| Debary Professional Plaza | MOB | 21,361 | | 0.47 | % | $ | 348.2 | | 0.30 | % | 746,933 | | Deltona-Daytona Beach-Ormond Beach, FL | 83 |
| UW Health Clinic- Portage | PC | 14,000 | | 0.31 | % | $ | 342.3 | | 0.30 | % | 709,685 | | Madison, WI | 86 |
| | | | | |
| Second Quarter 2026 Supplemental Information | 19 |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Property Name | Property Type | Area | % of Square Feet | Annualized Rent ($000's) | % of Annualized Rent | Population | MSA/MISA | Rank |
| Novus Clinic | SCH | 14,315 | | 0.32 | % | $ | 309.8 | | 0.27 | % | 701,780 | | Akron, Oh | 87 |
| Aurora Health Center | PC | 15,650 | | 0.35 | % | $ | 344.3 | | 0.30 | % | 701,780 | | Akron, Oh | 87 |
| Bassin Center For Plastic Surgery-Melbourne | PC | 5,228 | | 0.12 | % | $ | 330.6 | | 0.29 | % | 663,982 | | Palm Bay-Melbourne-Titusville, FL | 89 |
| Cypress Medical Center | MOB | 37,428 | | 0.83 | % | $ | 471.1 | | 0.41 | % | 663,809 | | Wichita, KS | 90 |
| Family Medicine East | PC | 16,581 | | 0.37 | % | $ | — | | — | % | 663,809 | | Wichita, KS | 90 |
| Wichita Medical Clinic | PC | 18,681 | | 0.41 | % | $ | — | | — | % | 663,809 | | Wichita, KS | 90 |
| Mercy Rehabilitation Hospital - Northwest Arkansas | IRF | 38,817 | | 0.86 | % | $ | 2,330.5 | | 2.02 | % | 622,177 | | Fayetteville-Springdale-Rogers, AR | 94 |
| Pennsylvania Gastroenterology | PC | 20,400 | | 0.45 | % | $ | 605.0 | | 0.52 | % | 617,427 | | Harrisburg-Carlisle, PA | 95 |
| Penn State Health - Camp Hill | SC | 8,400 | | 0.19 | % | $ | — | | — | % | 617,427 | | Harrisburg-Carlisle, PA | 95 |
| Penn State Health - Harrisburg | SC | 10,000 | | 0.22 | % | $ | 200.9 | | 0.17 | % | 617,427 | | Harrisburg-Carlisle, PA | 95 |
| Perrysburg Medical Arts Building | MOB | 26,585 | | 0.59 | % | $ | 508.8 | | 0.44 | % | 599,376 | | Toledo, OH | 98 |
| Sunforest Ct Medical Center | MOB | 23,368 | | 0.52 | % | $ | 339.3 | | 0.29 | % | 599,376 | | Toledo, OH | 98 |
| Assurance - Toledo | AIB | 13,290 | | 0.29 | % | $ | 565.4 | | 0.49 | % | 599,376 | | Toledo, OH | 98 |
| Granite Circle | MOB | 17,164 | | 0.38 | % | $ | 244.2 | | 0.21 | % | 599,376 | | Toledo, OH | 98 |
| Cardiology Associates of Greater Waterbury | PC | 16,793 | | 0.37 | % | $ | 348.5 | | 0.30 | % | 578,741 | | New Haven, CT | 100 |
| Riverview Medical Center | MOB | 26,427 | | 0.58 | % | $ | 803.5 | | 0.70 | % | 574,418 | | Scranton--Wilkes-Barre, PA | 103 |
| NEI - 200 | MOB | 22,743 | | 0.50 | % | $ | 409.4 | | 0.35 | % | 574,418 | | Scranton--Wilkes-Barre, PA | 103 |
| NEI - 204 | MOB | 15,768 | | 0.35 | % | $ | 236.4 | | 0.20 | % | 574,418 | | Scranton--Wilkes-Barre, PA | 103 |
| Treasure Coast Medical Pavilion | MOB | 55,844 | | 1.24 | % | $ | 938.0 | | 0.81 | % | 568,721 | | Port St. Lucie, FL | 104 |
| Grandview Plaza | MOB | 20,042 | | 0.44 | % | $ | 322.7 | | 0.28 | % | 563,159 | | Lancaster, PA | 105 |
| Pinnacle Health | PC | 10,753 | | 0.24 | % | $ | 252.7 | | 0.22 | % | 563,159 | | Lancaster, PA | 105 |
| Manteca Medical Group Building | MOB | 10,519 | | 0.23 | % | $ | 331.6 | | 0.29 | % | 557,719 | | Modesto, CA | 106 |
| Gulf Coast Cancer Centers-Brewton | SC | 3,971 | | 0.09 | % | $ | — | | — | % | 556,444 | | Huntsville, AL | 107 |
| Martin Foot & Ankle Clinic | PC | 27,100 | | 0.60 | % | $ | 440.4 | | 0.38 | % | 473,197 | | York-Hanover, PA | 116 |
| Lafayette Behavioral | AIB | 31,650 | | 0.70 | % | $ | 1,630.9 | | 1.41 | % | 423,758 | | Lafayette, LA | 132 |
| Biltmore Medical Office | SC | 11,099 | | 0.25 | % | $ | 229.2 | | 0.20 | % | 422,345 | | Asheville, NC | 134 |
| Genesis Care - Weaverville | SC | 10,696 | | 0.24 | % | $ | 480.0 | | 0.42 | % | 422,345 | | Asheville, NC | 134 |
| Belden Medical Arts Building | MOB | 47,366 | | 1.05 | % | $ | 506.7 | | 0.44 | % | 400,246 | | Canton-Massillon, OH | 140 |
| Hills & Dales Professional Center | MOB | 27,881 | | 0.62 | % | $ | 371.0 | | 0.32 | % | 400,246 | | Canton-Massillon, OH | 140 |
| Prattville Town Center Medical Office Bldg | MOB | 13,319 | | 0.29 | % | $ | 278.4 | | 0.24 | % | 388,747 | | Montgomery, AL | 145 |
| Bluewater Orthopedics Center | MOB | 10,255 | | 0.23 | % | $ | 226.6 | | 0.20 | % | 315,098 | | Crestview-Fort Walton Beach-Destin, FL | 168 |
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| Second Quarter 2026 Supplemental Information | 20 |
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| Property Name | Property Type | Area | % of Square Feet | Annualized Rent ($000's) | % of Annualized Rent | Population | MSA/MISA | Rank |
| Wellmont Bristol Urgent Care | SC | 4,548 | | 0.10 | % | $ | 79.6 | | 0.07 | % | 314,834 | | Kingsport-Bristol, TN-VA | 169 |
| Norton Medical Clinic | SC | 4,843 | | 0.11 | % | $ | 60.3 | | 0.05 | % | 314,834 | | Kingsport-Bristol, TN-VA | 169 |
| Norton Medical Plaza | MOB | 32,773 | | 0.73 | % | $ | 340.8 | | 0.29 | % | 314,834 | | Kingsport-Bristol, TN-VA | 169 |
| Steeles Road Medical Building | PC | 10,804 | | 0.24 | % | $ | 164.8 | | 0.14 | % | 314,834 | | Kingsport-Bristol, TN-VA | 169 |
| Londonderry Centre | MOB | 21,203 | | 0.47 | % | $ | 447.7 | | 0.39 | % | 308,807 | | Waco, TX | 171 |
| Longview Rehabilitation Hospital | IRF | 38,817 | | 0.86 | % | $ | 2,349.2 | | 2.03 | % | 297,315 | | Longview, TX | 173 |
| Gulf Coast Cancer Centers-Foley | SC | 6,146 | | 0.14 | % | $ | 178.2 | | 0.15 | % | 267,761 | | Daphne-Fairhope-Foley, AL | 189 |
| Gulf Shores Building | SC | 6,398 | | 0.14 | % | $ | 51.3 | | 0.04 | % | 267,761 | | Daphne-Fairhope-Foley, AL | 189 |
| Monroe Surgical Hospital | SCH | 58,121 | | 1.29 | % | $ | 2,535.5 | | 2.19 | % | 222,390 | | Monroe, LA | 217 |
| Ft. Valley Dialysis Center | SC | 4,920 | | 0.11 | % | $ | 88.8 | | 0.08 | % | 208,091 | | Warner Robins, GA | 228 |
| Meridian Behavioral Health Systems | AIB | 132,430 | | 2.93 | % | $ | 3,263.5 | | 2.82 | % | 200,170 | | Charleston, WV | 233 |
| Tuscola Professional Building | MOB | 25,500 | | 0.56 | % | $ | 622.4 | | 0.54 | % | 187,688 | | Saginaw, MI | 241 |
| Kedplasma | SC | 12,870 | | 0.28 | % | $ | 272.1 | | 0.24 | % | 186,177 | | Burlington, NC | 243 |
| Redding Oncology Center | SC | 12,206 | | 0.27 | % | $ | 585.9 | | 0.51 | % | 181,648 | | Redding, CA | 249 |
| Decatur Morgan Hospital Medical Office Building | MOB | 35,933 | | 0.79 | % | $ | 201.7 | | 0.17 | % | 160,326 | | Decatur, AL | 272 |
| Bourbonnais Medical Center | MOB | 54,894 | | 1.21 | % | $ | 618.2 | | 0.54 | % | 105,525 | | Kankakee, IL | 351 |
| Parkside Family & Davita Clinics | MOB | 15,637 | | 0.35 | % | $ | 222.2 | | 0.19 | % | 99,864 | | Victoria, TX | 363 |
| Hopebridge - Columbus | BSF | 13,969 | | 0.31 | % | $ | 177.4 | | 0.15 | % | 85,729 | | Columbus, IN | 375 |
| Cub Lake Square | MOB | 48,528 | | 1.07 | % | $ | 1,052.7 | | 0.91 | % | 109,946 | | Show Low, AZ | n/a |
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| UPMC Specialty Care | MOB | 25,982 | | 0.57 | % | $ | 453.4 | | 0.39 | % | 107,860 | | Hermitage, PA | n/a |
| Emory Healthcare - 303 | MOB | 61,301 | | 1.36 | % | $ | 952.6 | | 0.82 | % | 107,097 | | LaGrange, GA-AL | n/a |
| Emory Southern Orthopedics - 1805 | MOB | 31,473 | | 0.70 | % | $ | 733.5 | | 0.63 | % | 107,097 | | LaGrange, GA-AL | n/a |
| Emory Southern Orthopedics - 1801 | MOB | 2,972 | | 0.07 | % | $ | 62.7 | | 0.05 | % | 107,097 | | LaGrange, GA-AL | n/a |
| Emory Healthcare - 1610 | MOB | 5,600 | | 0.12 | % | $ | 87.0 | | 0.08 | % | 107,097 | | LaGrange, GA-AL | n/a |
| Davita Etowah Dialysis Center | SC | 4,720 | | 0.10 | % | $ | 71.6 | | 0.06 | % | 71,590 | | Athens, TN | n/a |
| Marion Medical Plaza | MOB | 27,246 | | 0.60 | % | $ | 390.3 | | 0.34 | % | 65,115 | | Marion, OH | n/a |
| Pahrump Medical Plaza | MOB | 12,545 | | 0.28 | % | $ | 487.2 | | 0.42 | % | 57,336 | | Pahrump, NV | n/a |
| Corsicana Medical Plaza | MOB | 17,746 | | 0.39 | % | $ | 378.1 | | 0.33 | % | 57,181 | | Corsicana, TX | n/a |
| Arkansas Valley Surgery Center | MOB | 10,717 | | 0.24 | % | $ | 241.5 | | 0.21 | % | 50,039 | | Cañon City, CO | n/a |
| Baylor Scott & White Clinic | PC | 37,354 | | 0.83 | % | $ | 505.8 | | 0.44 | % | 38,288 | | Brenham, TX | n/a |
| Fremont Medical Office Building & Surgery Ctr | MOB | 13,050 | | 0.29 | % | $ | 348.5 | | 0.30 | % | 38,057 | | Fremont, NE | n/a |
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| Second Quarter 2026 Supplemental Information | 21 |
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| Property Name | Property Type | Area | % of Square Feet | Annualized Rent ($000's) | % of Annualized Rent | Population | MSA/MISA | Rank |
| Eyecare Partners - 408 | PC | 8,421 | | 0.19 | % | $ | 134.3 | | 0.12 | % | 36,382 | | Centralia, IL | n/a |
| Ottumwa Medical Clinic - 1005 | MOB | 68,895 | | 1.52 | % | $ | 747.2 | | 0.65 | % | 35,210 | | Ottumwa, IA | n/a |
| Ottumwa Medical Clinic - 1007 | MOB | 6,850 | | 0.15 | % | $ | 96.2 | | 0.08 | % | 35,210 | | Ottumwa, IA | n/a |
| Fresenius Gallipolis Dialysis Center | SC | 15,110 | | 0.33 | % | $ | 160.2 | | 0.14 | % | 29,072 | | Gallipolis, OH | n/a |
| Sanderling Dialysis Center - 780 | SC | 4,186 | | 0.09 | % | $ | 320.4 | | 0.28 | % | 26,410 | | Crescent City, CA | n/a |
| Princeton Cancer Center | SC | 7,236 | | 0.16 | % | $ | 210.6 | | 0.18 | % | County: 57,454 | Rural - No CBSA | n/a |
| Andalusia Medical Plaza | SC | 10,373 | | 0.23 | % | $ | 301.4 | | 0.26 | % | County: 37,750 | Rural - No CBSA | n/a |
| North Mississippi Health Services - 1107 | MOB | 17,629 | | 0.39 | % | $ | 102.0 | | 0.09 | % | County: 33,928 | Rural - No CBSA | n/a |
| North Mississippi Health Services - 1111 | MOB | 27,743 | | 0.61 | % | $ | 160.5 | | 0.14 | % | County: 33,928 | Rural - No CBSA | n/a |
| North Mississippi Health Services - 1127 | MOB | 18,074 | | 0.40 | % | $ | 104.6 | | 0.09 | % | County: 33,928 | Rural - No CBSA | n/a |
| North Mississippi Health Services - 404 | MOB | 9,890 | | 0.22 | % | $ | 57.2 | | 0.05 | % | County: 33,928 | Rural - No CBSA | n/a |
| North Mississippi Health Services - 305 | MOB | 3,378 | | 0.07 | % | $ | 19.5 | | 0.02 | % | County: 33,928 | Rural - No CBSA | n/a |
| Tri Lakes Behavioral | BSF | 58,400 | | 1.29 | % | $ | — | | — | % | County: 32,965 | Rural - No CBSA | n/a |
| Russellville Medical Plaza | MOB | 29,129 | | 0.64 | % | $ | 173.1 | | 0.15 | % | County: 31,870 | Rural - No CBSA | n/a |
| Wellmont Lebanon Urgent Care | SC | 8,369 | | 0.19 | % | $ | 108.8 | | 0.09 | % | County: 25,635 | Rural - No CBSA | n/a |
| Lexington Carilion Clinic | PC | 15,820 | | 0.35 | % | $ | 399.8 | | 0.35 | % | County: 22,573 | Rural - No CBSA | n/a |
| Sanderling Dialysis Center - 102 | SC | 5,217 | | 0.12 | % | $ | 295.6 | | 0.26 | % | County: 13,464 | Rural - No CBSA | n/a |
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| Second Quarter 2026 Supplemental Information | 22 |
Reporting Definitions
Acute Inpatient Behavioral Facilities (AIB): Behavioral inpatient acute care facilities are healthcare facilities that provide a range of clinical services for mental health and/or substance abuse diagnoses on an inpatient basis. Behavioral health services provided may include assessment, treatment, individual medical evaluation and management (including medication management), individual and group therapy, behavioral health counseling, family therapy and psychological testing for recipients of all ages.
Annualized Rent: Stabilized base rent for leases in place at the end of the period multiplied by 12.
Behavioral Specialty Facilities (BSF): Behavioral specialty facilities are healthcare facilities that provide a range of clinical services for mental health and/or substance abuse diagnoses. Behavioral health services provided may include assessment, treatment, individual medical evaluation and management (including medication management), individual and group therapy, behavioral health counseling, family therapy and psychological testing for recipients of all ages.
EBITDAre and Adjusted EBITDAre: The Company uses the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") definition of EBITDAre which is net income plus interest expense, income tax expense, and depreciation and amortization, plus losses or minus gains on the disposition of depreciable property, including losses/gains on change of control, plus impairment write-downs of depreciable property and of investments in unconsolidated affiliates caused by a decrease in value of depreciable property in the affiliate, plus or minus adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates and consolidated affiliates with non-controlling interest. The Company also presents Adjusted EBITDAre which is EBITDAre before non-cash stock-based compensation amortization, and Adjusted EBITDAre Annualized which is Adjusted EBITDAre multiplied by four.
We consider EBITDAre and Adjusted EBITDAre important measures because they provide additional information to allow management, investors, and our current and potential creditors to evaluate and compare our core operating results and our ability to service debt.
Funds Available for Distribution (FAD)
We calculate FAD by deducting leasing commissions, as well as tenant improvements and recurring capital expenditures that are not part of our redevelopment projects from AFFO, Adjusted for other non-cash items. The Company believes FAD is useful in analyzing the amount of cash available for distribution to stockholders and as an indicator of the sustainability of the Company's dividends.
Funds from Operations (FFO), Adjusted Funds from Operations (AFFO) and AFFO, Adjusted for other non-cash items: 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"), including AFFO, Adjusted for other non-cash items, 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.
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| Second Quarter 2026 Supplemental Information | 23 |
Reporting Definitions (continued)
The Company uses the 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. The Company has included AFFO which it has defined 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. The Company has also included AFFO, Adjusted for other non-cash items, which adjusts AFFO for certain non-cash items, including non-real estate depreciation and amortization, amortization of above(below) market lease intangibles and amortization of debt issuance costs. AFFO and AFFO, Adjusted for other non-cash items that are 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 definitions.
FFO, AFFO, and AFFO, Adjusted for other non-cash items 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, AFFO, and AFFO, Adjusted for other non-cash items should be examined in conjunction with net income as presented elsewhere herein.
Inpatient Rehabilitation Facilities (IRF): Inpatient rehabilitation facilities are free standing rehabilitation hospitals, or may be units within an acute care hospital, that provide intensive rehabilitation programs to patients.
Long-Term Acute Care Hospitals (LTACH): Long-term acute care hospitals provide inpatient services for patients with complex medical conditions who require more sensitive care, monitoring or emergency support than that available in most skilled nursing facilities.
Medical Office Building (MOB): Medical office buildings are buildings occupied by healthcare providers and may be located near hospitals or other facilities where healthcare services are rendered or in close proximity to a population base. Medical office buildings can be leased to physicians, physician practice groups, hospitals, healthcare systems or other healthcare providers.
Metropolitan Statistical Area (MSA or MISA): MSAs or MISAs are geographical regions with relatively higher population densities at their core and have close economic ties throughout their area. MSAs and MISAs are defined by the Office of Management and Budget.
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| Second Quarter 2026 Supplemental Information | 24 |
Reporting Definitions (continued)
Net Operating Income (NOI): NOI is a non-GAAP financial measure that is defined as net income or loss, computed in accordance with GAAP, generated from our total portfolio of properties and other investments before general and administrative expenses, depreciation and amortization expense, gains or loss on the sale of real estate properties or other investments, interest expense, and income tax expense. We believe that NOI provides an accurate measure of operating performance of our operating assets because NOI excludes certain items that are not associated with management of the properties. CHCT's use of the term NOI may not be comparable to that of other real estate companies as they may have different methodologies for computing NOI. The Company also presents Annualized NOI which is NOI multiplied by four.
Physician Clinics (PC): Physician clinics are freestanding healthcare facilities that are primarily devoted to the care of ambulatory patients, can be privately operated or publicly managed and funded, and typically provide primary healthcare needs of populations in local communities utilizing physicians and other healthcare providers.
Specialty Centers (SC): Specialty centers include various types of centers which may, among others, include oncology centers, dialysis centers, urgent care centers, and blood plasma centers.
Surgical Centers and Hospitals (SCH): Surgical centers and hospitals may include outpatient surgery centers where surgical procedures not requiring an overnight hospital stay are performed; as well as specialty hospitals that focus on providing care for certain conditions and performing certain procedures, such as cardiovascular and orthopedic surgery.
Total Capitalization: Debt plus stockholders' equity plus accumulated depreciation.
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| Second Quarter 2026 Supplemental Information | 25 |
Disclaimers
Forward-Looking Statements
Certain statements made in this supplemental information package constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). In particular, statements pertaining to our capital resources, portfolio performance and results of operations contain forward-looking statements. Likewise, our statements regarding anticipated market conditions are forward-looking statements. You can identify forward-looking statements by the use of forward-looking terminology such as "believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” "outlook," "continue," "projects," “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, expectations, or intentions.
Forward-looking statements reflect the views of our management regarding current expectations and projections about future events and are based on currently available information. These forward-looking statements are not guarantees of future performance and involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data, or methods which may be incorrect or imprecise and we may not be able to realize them.
While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes after the date of this supplemental information package, except as required by applicable law. You should not place undue reliance on any forward-looking statements that are based on information currently available to us or the third parties making the forward-looking statements. For a discussion of factors that could impact our future results, performance or transactions, see Part I, Item 1A (Risk Factors) of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and the Company’s other filings with the Securities and Exchange Commission from time to time.
Non-GAAP Financial Measures
This presentation includes EBITDAre, Adjusted EBITDAre, Adjusted EBITDAre Annualized, Net Operating Income (or NOI), Annualized NOI, Funds From Operations (or FFO), Adjusted Funds From Operations (or AFFO), and AFFO, Adjusted for other non-cash items, and Funds Available for Distribution (or FAD) which are non-GAAP financial measures. For purposes of the Securities and Exchange Commission’s (“SEC”) Regulation G, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable financial measure calculated and presented in accordance with GAAP in the statements of operations, balance sheets or statements of cash flows (or equivalent statements) of the company, or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable financial measure so calculated and presented. As used in this presentation, GAAP refers to generally accepted accounting principles in the United States of America. Our use of the non-GAAP financial measure terms herein may not be comparable to that of other real estate investment trusts. Pursuant to the requirements of Regulation G, we have provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
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| Second Quarter 2026 Supplemental Information | 26 |
CHCT: Positioned for Renewed Growth CHCT LISTED NYSE August 2026 INVESTOR PRESENTATION Exhibit 99.3
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the use of forward-looking terminology such as "believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” "outlook," "continue," "projects," "target," “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, future priorities, expected acquisitions or dispositions, expected returns, expected occupancy, or other expectations or intentions. These statements are based on management’s current expectations and beliefs and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those described herein. Such factors include, but are not limited to, those described under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. No forward-looking statement should be relied upon as a guarantee of future performance. Community Healthcare Trust Incorporated undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. Forward-Looking Statements This presentation includes certain non-GAAP financial measures, including Funds from Operations (FFO), as defined by NAREIT, Adjusted Funds from Operations (AFFO), AFFO Payout Ratio, Funds Available for Distribution (FAD), EBITDAre, Adjusted EBITDAre, Adjusted EBITDAre Annualized, Net Operating Income (NOI), and Annualized NOI. These measures are not prepared in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered as alternatives to, or more meaningful than, net income as determined in accordance with GAAP. Non-GAAP measures as presented herein may not be comparable to similarly titled measures reported by other companies. Please refer to the Appendix and the Company’s SEC filings for reconciliations to the most directly comparable GAAP measures. A reconciliation of the forward-looking Annualized NOI cannot be provided without unreasonable effort because the Company is unable to reasonably predict certain items contained in the GAAP measure. Such items include, but are not limited to, impairment on depreciated real estate assets, net gain or loss on sale of real estate assets, stock-based compensation, and provision for credit loss reserves. These items are uncertain, depend on various factors and could have a material impact on the Company's GAAP results. Non-GAAP Financial Measures Disclosures Community Healthcare Trust Page 2
• $1.25B portfolio: 197 properties covering 4.5M sq. ft. across 36 states, diversified by asset type, operator, and geography • Proprietary sourcing from two decades of operator relationships drives 9%-10% acquisition yields • Conservative balance sheet: 6.0x leverage, 100% unsecured debt with no encumbered assets and no maturities before 2028 COMPANY AT-A-GLANCE $1.25B Gross Real Estate Investments 4.5M Square Feet $101.4M Annualized NOI Diversified healthcare portfolio delivering high-quality, cost-effective care convenient to patients in non-urban markets Community Healthcare Trust Page 3
Repositioning for Enhanced Growth CHCT is enhancing its capital allocation policy to focus on acquisitions, redevelopment, occupancy growth and operating improvements designed to drive long-term shareholder value. Community Healthcare Trust Page 4
Rightsizing the Dividend to Fund Growth KEY STRATEGIC PRIORITIES FOR THE NEXT 18-24 MONTHS • $99M pipeline under contract with more available for evaluation • Expected yields of 9-10% with ~2.5% escalators • Improve leased occupancy to 92% • More than 100,000 sq.ft. of new leases YTD – greater than full year 2025 • Pursue redevelopment and spec suite investments • 9-12% yields on redevelopment capital • $70M+ marketed disposition pipeline • Proceeds recycled into 9%+ acquisitions — no new equity Increases retained capital available to fund acquisitions, portfolio reinvestment and operating improvements. Quarterly dividend reset from $0.48/share to $0.33/share Community Healthcare Trust Page 5 Dividend Reset $0.48 $0.33 Per share Redeployed at 9-12% Expected yields Retained Capital $25-30M Over 24 months Acquisition GrowthOccupancy Improvement Portfolio Reinvestment Strategic Capital Recycling Drive Portfolio NOI Upgrade the Portfolio Additional Source of Funding High-Quality Investments
Dividend Rightsizing Supports an Attractive Yield and Long-Term Growth DIVIDEND YIELD — CHCT VS. HEALTHCARE REIT PEERS A Stronger Capital Allocation Framework Even after the dividend reset, CHCT’s yield remains above healthcare REIT peers. 7.2% 6.2% CHCT(1) Peer Avg.(2) 60% AFFO Payout 71% AFFO Payout Attractive Yield Annual dividend of $1.32/share Yield of 7.2% at constant price Improved Coverage AFFO payout ratio: 87% 60% Growth Capital $25-30M retained over 24 months Supports acquisitions and redevelopment Community Healthcare Trust Page 6(1) CHCT dividend yield calculated at new $0.33 quarterly dividend and CHCT’s 6/30/26 share price of $18.28. AFFO payout ratio is calculated as total dividends paid as a percentage of AFFO. (2) Simple average of select healthcare REIT peers based on SNL FY2026E consensus dividend and 6/30/26 closing share price; list includes DOC, HR, MPT and XRN
A Clear Path from 89.8% to 92% Leased Occupancy EXPECTED IMPACT 89.8% 92.0% Leased Occupancy $101M $107M Annualized NOI +$6M NOI Upside PORTFOLIO OPTIMIZATION PRIORITIES Target High-Opportunity Assets Top markets represent 105,000 sq.ft. of available space Accelerate Leasing Execution Expanded asset management, leasing and construction teams driving retention and new leasing Community Healthcare Trust Page 7 LEASED OCCUPANCY BRIDGE (%) 89.8% Q2 2026 0.7% 2026 Budget 1.5% Identified Pipeline & New Leases 92.0% Target Occupancy Reinvestment Recycling Acquisitions
Portfolio Reinvestment Generates Attractive Incremental Returns VHC Surgery Center Phoenix, AZ Complete $3,300 9.3% Outpatient Surgery Center Desert Mountain Health Phoenix, AZ Complete $5,300 12.1% Behavioral Specialty Facility Ochsner Behavioral Health Lafayette, LA Complete $15,900 10.6% Acute Inpatient Behavioral Accanto Health Aurora, OH In Process $4,000 9%+ Behavioral Specialty Facility Property Market Status Restoration Cost* Yield on Cost Type * $ in 000s Community Healthcare Trust Page 8 Occupancy Reinvestment Recycling Acquisitions
COMPLETED SALE DETAIL Capital Recycling Funds Growth Without Dilution Selective dispositions partially fund the growth pipeline — recycling capital out of non-core assets and into 9%+ yield acquisitions, without issuing new equity. PERIOD ASSETS NET PROCEEDS 2025 5 $32.9M 2026 YTD 2 $5.6M TOTAL 7 $38.5M Community Healthcare Trust Page 9 GROW 9-10% Expected initial yields on redeployed capital REDEPLOY $99M Acquisition pipeline under definitive agreement SELL $70M+ Marketed disposition pipeline Proceeds fund the pipeline New assets grow NOI Portfolio quality improves Occupancy Reinvestment Recycling Acquisitions
A Clear Path Back to Acquisition- Led Growth Starting with $99M Already Under Contract ANNUAL ACQUISITION VOLUME ($M) — 2015 TO 2025 PIPELINE HIGHLIGHTS • $99M under definitive agreement • Four newly developed inpatient rehabilitation facilities • 9% - 10% expected initial yields • Growth funded with retained capital and asset recycling Community Healthcare Trust Page 10 2026+ 0 20 40 60 80 100 120 140 160 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Occupancy Reinvestment Recycling Acquisitions
BALANCE SHEET SNAPSHOT A Conservative Balance Sheet With Flexibility to Fund Growth CAPITAL ALLOCATION SEQUENCE • 6.0x net debt/adjusted EBITDAre annualized • 3.0x fixed charge coverage • Over $115M of current available liquidity NEAR-TERM MEDIUM-TERM LONG-TERM Fund Signed Pipeline Execute without dilution Maintain Flexibility Preserve balance sheet strength Scale Growth Resume historical acquisition cadence Community Healthcare Trust Page 11 NO MATURITIES BEFORE MARCH 2028 0 100 200 300 2026 2027 2028 2029 2030 $125M $285M $150M Term Loan Term Loan Revolver $0$0
The Right Team in Place to Execute CHCT’s Growth Strategy Expanded, dedicated Asset Management, Leasing, and Construction teams to proactively drive portfolio performance Miles Frazier Assistant VP, Construction ASSET MANAGEMENT, LEASING, AND CONSTRUCTION LEADERSHIP Moni J. Cook Assistant VP, Asset Management Mark Kearns SVP, Asset Management Brandon Preston Assistant VP, Leasing & Business Dev. David H. Dupuy Board Member, CEO & President 7 years with CHCT Bill Monroe EVP & Chief Financial Officer 3 years with CHCT Leigh Ann Stach EVP & Chief Accounting Officer 11 years with CHCT EXECUTIVE TEAM Community Healthcare Trust Page 12
Company Overview Community Healthcare Trust Page 13 Prairie Star, Shawnee, KS
Q2 2026 Update METRIC Q2 2026 Q2 2025 Y-o-Y Revenue $31.2 $29.1 +7% AFFO / Share $0.56 $0.50 +12% FFO / Share $0.48 $0.23 n/a FAD $13.0 $11.3 +15% Portfolio Occupancy 89.8.% 90.7% -1% Debt/Total Capitalization 43.9% 41.6% +6% KEY OPERATING & FINANCIAL METRICS (Millions except per share) Community Healthcare Trust Page 14 HIGHLIGHTS • Dividend reset positions CHCT for enhanced growth • Leasing +100,000 sq.ft. new signed leases YTD • Acquisition pipeline remains robust at $99M • Earnings steady with AFFO/sh $0.56
Disciplined Investment Strategy Drives Sustainable Growth A REPEATABLE VALUE-CREATION ENGINE Selective Sourcing • Extensive, established referral relationships • Off-market properties • Limited competition Disciplined Underwriting • Market selection • Tenant creditworthiness • Asset quality • Return thresholds Active Asset Management • Rent escalators • Portfolio optimization • Internal property management oversight Capital Recycling & Reinvestment • Strategic asset sales • Redeployment of capital • Support for future growth FOUNDATION Diversified and stable portfolio Conservative balance sheet with low debt-to-capitalization ratios Experienced management team aligned with long-term growth and profitability incentives Favorable healthcare demand trends driven by aging and shift to outpatient care Community Healthcare Trust Page 15
Multi-Year Tailwinds Support Healthcare Real Estate LIMITED NEW SUPPLY MIGRATION TO OUTPATIENT CARE Care shifting to lower-cost outpatient settings Providers and payors continue shifting care to outpatient settings across multiple specialties - American Hospital Assoc. and Nuveen RE research 2024-2025 AGING DEMOGRAPHICS The US 65+ population is growing 5x faster than the rest of the population ~21% of U.S. population by 2030 - U.S. Census Bureau, 2020 High costs and constrained development limit new supply of healthcare facilities ~93% Sector Occupancy - Revista and industry reports, latest data available Community Healthcare Trust Page 16
A Diversified Portfolio by Property Type, Tenant and Geography No single property type, tenant or market defines the portfolio. Community Healthcare Trust Page 17 197 Properties 36 States 325 Tenants 7.1% Largest tenant Top 3 = 18.3% PROPERTY TYPE (% OF ABR) TENANT BASE (% OF ABR) GEOGRAPHY (% OF ABR) 35.0% Medical Office Building 25.7% All Others* 23.2% Inpatient Rehabilitation 16.1% Acute Inpatient Behavioral US Healthvest 7.1% Lifepoint Health 6.3% PAM Health 4.9% Assurance Health 2.9% Summit Behavioral Healthcare 2.8% Florida 14.5% Texas 14.1% Ohio 9.6% Illinois 9.5% Pennsylvania 5.8% States 6-10 17.3% • Note: Annualized Base Rent (ABR) defined as stabilized base rent for leases in place at the end of the period multiplied by 12. • “All Others” includes specialty centers, physician clinics, surgical centers and hospitals, behavioral specialty facilities, and long-term acute care hospitals. All other states 29.2% Tenants 6-10 11.8% All Other Tenants 64.2% Data as of June 30, 2026
LEASE EXPIRATION SCHEDULE (% OF ABR) Lease Maturity Profile Supports Stable Cash Flow Long-duration leases and a well- laddered lease-expiration schedule 7.2 Yrs Weighted Average Lease Term 89.8% Portfolio Leased Q2 2026 65.7% ABR Beyond 5 Years <10% Largest Annual Maturity Next 4 Years 2.6% 2026 8.1% 2027 8.4% 2028 8.9% 2029 6.1% 2030 12.3% 2031 3.5% 2032 1.7% 2033 8.4% 2034 7.8% 2035 32.0% 2036+ Data as of June 30, 2026 Community Healthcare Trust Page 18
An Independent, Shareholder-First Board With Strong Governance and Experience KEY GOVERNANCE PROVISIONS • Annual election of all board members. • Opted out of Maryland anti-takeover provisions and restrictions in place to prevent future opt-in • Insiders do not control enough votes to veto a merger or business combination • Only one non-independent director (Mr. Dupuy) • Stockholder proxy access for director nominations • Management compensation aligned with shareholder interests Community Healthcare Trust Page 19 Bob Hensley Audit Committee Chair Senior Advisor, Alvarez & Marsal; Former Partner — Arthur Andersen & Ernst & Young; serves on several private company boards Claire Gulmi Compensation Committee Chair Retired EVP & CFO — Envision Healthcare; Former EVP & CFO — AmSurg Corp; Former CFO — Jacques-Miller Inc. (real estate) R. Lawrence Van Horn ESG Committee Chair Professor of Economics & Management Emeritus, Vanderbilt University; Board Chair: Savida Health, Advanced Behavioral Solutions Cathrine Cotman Board Member Former SVP Corporate Real Estate — LPL Financial; Former Senior Managing Director — Newmark Knight Frank; Former Global Alliance Director — Cresa Global Alan Gardner Chairman Former MD, Healthcare Group — Bank of America Securities; Head of Healthcare Banking — Fleet Boston Financial; Senior RM, Wells Fargo Healthcare Dave Dupuy Board Member President & CEO - CHCT
A Proven Platform and Clear Path to Growth • Differentiated healthcare platform benefits from long-standing healthcare operator relationships that support proprietary sourcing in smaller, non-urban healthcare facilities. • $99 million of identified acquisitions position CHCT to resume external growth at expected yields of above 9%. • Embedded upside from acquisitions, leasing, and asset optimization initiatives. Community Healthcare Trust Page 20 A repositioned healthcare REIT with stronger fundamentals and multiple drivers for long-term growth and value creation • Consistent cash flows supported by long duration leases and well-laddered lease expiration schedule. • Well-diversified portfolio with 197 properties in 36 states; attractive markets and property types. • Conservative balance sheet and liquidity provide flexibility to pursue strategic growth.
Appendix Community Healthcare Trust Page 21
CHCT LISTED NYSE CORPORATE HEADQUARTERS CONTACT Community Healthcare Trust, Inc. 3326 Aspen Grove Drive, Suite 150 Franklin, TN 37067 Bill Monroe Chief Financial Officer 615-771-3052