CHCT

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 9:00 a.m. ET Chief Executive Officer - David Dupuy Chief Financial Officer - William Monroe Chief Accounting Officer - Leigh Ann Stach SVP of Asset Management - Mark Kearns Operator: Welcome to Community Healthcare Trust's 2026 Second Quarter Earnings Release Conference Call. On the call today, the company will discuss its 2026 second quarter financial results. It will also discuss progress made in various aspects of its business. Following the remarks, the phone lines will be opened for a question and answer session. The company's earnings release was distributed last evening and has also been posted on its website, www.chct.reit. The company wants to emphasize that some of the information that may be discussed on this call will be based on information as of today, August 5, 2026, and may contain forward-looking statements that involve risk and uncertainty. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the company's disclosures regarding forward-looking statements in its earnings release as well as its risk factors and MD&A in its SEC filings. The company undertakes no obligation to update forward-looking statements, whether as the result of new information, future developments or otherwise except as may be required by law. During this call, the company will discuss GAAP and non-GAAP financial measures. A reconciliation between the 2 is available in its earnings release, which is posted on its website. All participants are advised that this conference call is being recorded for playback purposes. An archive of the call will be made available on the company's investor relations website for approximately 30 days and is the property of the company. This call may not be recorded or otherwise reproduced or distributed without the company's prior written permission. Now, I would like to turn the call over to Dave Dupuy, CEO of Community Healthcare Trust. David Dupuy: Great. Thank you, Cindy, and good morning, everyone. Thank you for joining us for Community Healthcare Trust's second quarter 2026 conference call. Joining me on the call today are Bill Monroe, our Chief Financial Officer; Leigh Ann Stach, our Chief Accounting Officer, and Mark Kearns, our SVP of Asset Management. Before we begin, I'd like to remind everyone that our earnings release and supplemental data report were released last night and furnished on Form 8-K, along with our quarterly report on Form 10-Q. Additionally, we included in our Form 8-K a new strategic plan investor presentation, which is also available in the investor relations section of our website. We encourage you to reference this presentation along with today's remarks. The Board and senior leadership have spent considerable time developing CHCT's strategic plan for renewed growth, and I'm excited to share an overview with you today. First, we are right-sizing our quarterly dividend from $0.48 to $0.33 per share. This decision allows us to retain capital directly for accretive acquisitions and long-term portfolio growth. We expect this reduction to free up $25 million to $30 million in capital over the next 2 years. Combined with our capital recycling program, this incremental cash flow will accelerate our portfolio investments and fund our acquisition pipeline. Crucially, we expect these investments to be highly accretive to AFFO growth and shareholder value, all while maintaining our current target leverage levels. As part of this capital realignment, we are focusing on 4 core strategic priorities to drive growth and elevate the overall quality of our portfolio. Those are occupancy improvement, portfolio reinvestment, strategic capital recycling and accelerated acquisition growth. Our first priority is occupancy improvement. We see a clear, tangible path to reaching 92% occupancy over the next 18 months. Our 2026 leasing budget targets a 70-basis-point increase in occupancy to 90.5% by year-end. Year-to-date, we have already signed new leases totaling over 100,000 square feet, surpassing our total volume for all of 2025. Leasing activity remains strong across the majority of our footprint, and we expect these tailwinds to continue into 2027. This momentum is driven by the strategic market positioning of our assets, along with a broader supply shortage of quality health care properties. Fully achieving these occupancy gains and rent growth represents up to $6 million in NOI upside. Our second strategic priority is portfolio reinvestment. We are deploying targeted capital into redevelopment projects alongside high-quality tenants with long-term leases already in place. These projects offer compelling risk-adjusted returns with a 9% to 12% yield on cost. A prime example is our recently completed behavioral hospital in Lafayette, Louisiana, a joint venture between Ochsner Health and Oceans Behavioral Health with a lease commencement that occurred early in the third quarter. Additionally, we are selectively building out speculative suites in high-demand markets. Proactively preparing these spaces allows us to capture prospective healthcare tenants faster, accelerating both occupancy gains and NOI realization. Our third priority is strategic capital recycling. Since launching this initiative in 2025, CHCT has sold 7 properties generating $38.5 million in net proceeds. We currently have more than $70 million of assets in the market. We expect these disposition proceeds to fund our high-yield acquisition pipeline while keeping leverage modest. We view this as truly strategic recycling, whereby we are exiting select assets to fund high conviction opportunities, like our attractive inpatient rehab facility pipeline, while simultaneously enhancing the credit quality and profile of our overall portfolio. Finally, our fourth priority is accelerating acquisition growth. In addition to improved occupancy and portfolio performance, acquisitions will be an important growth driver for CHCT. Over the last 2 years, acquisition volume moderated to $64.5 million and $72.1 million. By combining our capital recycling proceeds with the capital freed up from our dividend rightsizing, we have unlocked the liquidity necessary to step up our acquisition velocity. We expect to close on $85 million to $90 million in acquisitions in 2026, and we anticipate activity to increase in 2027, as this newly unlocked growth capital compounds. In short, we believe the strategic plan is clear and achievable, positioning us to improve our portfolio, increase our acquisition cadence and drive accretive AFFO growth. Next, I'd like to walk through a few key operational updates from the second quarter. During the second quarter, the Geriatric Behavioral Hospital operator, which leases 6 of our properties, paid approximately $370,000 in rent, representing a $70,000 increase over the first quarter. As previously noted, this tenant signed a letter of intent with an experienced behavioral healthcare operator to acquire the operations of all 6 facilities under exclusivity. Since then, the buyer has made significant progress. They are now finalizing legal and business due diligence and have moved into drafting definitive purchase agreements, which includes new leases for CHCT's 6 properties. Given the steady momentum through the second quarter and into July, we anticipate a signed purchase agreement during the third quarter, targeting a transaction close by year-end. While the deal is progressing constructively, transactions of this nature remain subject to final documentation and closing conditions. We cannot guarantee a closed transaction, but we remain fully committed to keeping you updated as key milestones are reached. Also, in May, we sold 1 building in Batesville, Mississippi, and received net proceeds of approximately $460,000, resulting in a small gain on the property sale. We also have signed definitive purchase and sale agreements for 4 properties to be acquired after completion and occupancy for an aggregate expected investment of $99 million. The expected return on these investments should range from 9.1% to 9.75%. We expect to close on one of these properties in the third quarter and another in the fourth quarter of 2026 and the remaining 2 in the second half of 2027. That takes care of the items I wanted to cover, so I'll hand things off to Bill to provide additional details on our financial results for the quarter. William Monroe: Thank you, Dave. Let me add more detail on our capital allocation policy first, given our new right-size dividend. As Dave mentioned, we expect to retain $25 million to $30 million of capital over the next 2 years, or to put it on an annual basis, up to $15 million of cash flow per year. On a leverage-neutral basis of approximately 40% debt to capitalization, this will allow us to acquire or reinvest up to an incremental $25 million per year, generating an incremental $0.06 to $0.07 of AFFO growth per year, assuming a 9% to 10% yield. As our AFFO grows from this retained cash flow, as well as the occupancy improvements Dave discussed, it also enables our dividend to grow with earnings going forward. Historically, we updated our dividend each quarter, but going forward, we expect to update our dividend on an annual basis while maintaining an AFFO payout ratio of approximately 60% to 65%. I also want to take a minute to point out the additional disclosures we have included within our filed second quarter 2026 supplemental information. Within our reconciliation tables on page 8, we now include our funds available for distribution, or FAD, calculation, which provides a breakout of capital expenditures across tenant improvements, leasing commissions and recurring capex. And within our portfolio overview tables on page 14, we now include a breakout of our properties by ownership type, fee simple and ground lease, a detailed review of our quarterly leasing activity across new leases, renewals, vacancies and acquisitions, dispositions, and a breakout of our lease types across net leases, modified gross leases and gross leases, as well as a calculation of our portfolio's annual escalators. These additional disclosures are a response to investor and analyst questions, and we are excited to provide more transparency on these items. And to help save time for Q&A, I'll very briefly review our second quarter financial performance, which on an AFFO per share basis remains steady at $0.56. Total revenue for the second quarter of 2026 was $31.2 million, with property operating expenses of $5.9 million, general and administrative expenses of $4.9 million and interest expense of $7.4 million. Moving to funds from operations, FFO in the second quarter of 2026 was $13.2 million, and on a diluted common share basis was $0.48. Adjusted funds from operations, or AFFO, which adjusts for straight-line rent and stock-based compensation, totaled $15.4 million in the second quarter of 2026, and on a diluted common share basis was $0.56. As I mentioned earlier, both AFFO and AFFO per share were the same as the first quarter of 2026, but I'm happy to review any of these financials in more detail. That concludes our prepared remarks. Cindy, we are now ready to begin the question and answer session. Operator: Our first question comes from Rob Stevenson of Huntington. Robert Stevenson What is the occupancy on the $70 million of assets that you're marketing? Trying to figure out here if you sell all those if occupancy goes down because those are highly occupied assets or goes up since some of those have the bigger chunks of vacancy. David Dupuy: Rob, thanks for the question. Appreciate you dialing in and glad to have you back. So, as far as the occupancy goes on the buildings, what I would tell you is most of those buildings are 100% occupied. We do have a handful of buildings we're looking to sell that should result in relatively modest proceeds that are empty buildings. So the buildings that we are selling are 100% occupied, you know, with the exception of a small handful, less than 5 buildings that are in market that are empty. Robert Stevenson Okay, that's helpful. And then, Bill, it sounded like in your commentary on the dividend that it's now an annual review going forward instead of the small quarterly increases. Is that the takeaway there? William Monroe: That's right. It's something we and the Board will evaluate on an annual basis. Robert Stevenson Okay. And then given your commentary about retaining the cash flow to drive AFFO growth, is there any reason why you guys would increase the dividend from the $0.33 level until you sort of get down towards minimum payout so that you could retain as much as possible for investment? As I had mentioned in my comments, we're going to be targeting that 60% to 65% AFFO payout ratio, and so that's what we'll be looking at as we evaluate the dividend on an annual basis. Robert Stevenson Okay. And then last one for me, Dave, like at this point, how comfortable are you with waiting and seeing what happens here in the third quarter with the 6 behavioral health hospitals? Or are you still running a separate process in parallel just in case something falls through there? David Dupuy: We've -- we've obviously -- over the last year and a half, we've -- the good news is, in this process, the company has performed well. It has recovered significantly. It's been able to pay additional rent. I would anticipate the rent amount in the third quarter to move up from where it is in the second quarter. And so that I think allows us some flexibility if for whatever reason this transaction doesn't go forward. And as you might expect, just given our relationships in the sector, we have other folks that have expressed interest and could be potential suitors. But we think just given the amount of time that the buyer has looked at the business, how it's performed during that time, we believe that, that is going to be the right buyer for the business. And the delays really don't have as much to do with the buyer as they do with some of the regulatory issues that the company has had to work through in these various states that unfortunately each have their own rules and each have their own hurdles that you have to get through. So I think they've spent a lot of money. They've worked very hard, in fact, engaged their operations team heavily and sort of the onboarding process. And so we feel confident that ultimately they're going to end up being the buyer. But the good news is the business is performing so that if they aren't, we think that somebody else could come in and operate the business and be a potential alternative. Operator: The next question comes from Alexander Goldfarb of Piper Sandler. Alexander Goldfarb: Dave, you guys addressed the all-stock comp back in early '24, but the dividend was one of those issues that's been out there for a while. It's been a topic of conference calls over time. What finally made you guys decide now was the time to address it versus, you know, I guess maybe when you did the all-stock comp, maybe, you know, assessing it then? David Dupuy: Alex, thanks for the question. I'm reminded of kind of a funny quote, which is the definition of insanity is doing the same thing over and over again and expecting a different result. We have done a lot of great work. The portfolio continues to perform. For whatever reason, the market is not cooperating as far as where our share price is. And as you might guess, we and the Board have looked at the dividend. It's a topic as part of our regular discussion at every Board meeting. And we just decided that the only way for us to get comfortable in sort of driving performance in the business, which is ultimately what we're here to do, would be to take on some of that capital, redeploy it and start growing the business again. So I think there was no event or there was nothing that was a catalyst. It was just the last 2 years of seeing the stock sort of stuck in this band and recognizing that the only way we were going to be able to pull it out is for us to do something different from a growth perspective. Alexander Goldfarb: Okay. And then second is -- obviously, good to hear that you're -- you've taken a reassessment of the portfolio, exit some assets, recycling the better. But -- so we don't get the impression that nothing was going on in the past few years. It seems like right now you guys have taken control again. You're not waiting for Assurance. It almost sounded like you may exit that portfolio if it doesn't get resolved. But can you just give us some commentary over the past few years of like what the leasing was like or stuff? Because what you've announced today sounds really good and sounds like a lot of activity that should put the company in better standing. But at the same time, presumably you guys weren't just waiting around for Assurance to resolve before doing this other stuff. So maybe just some perspective of what's been going on the past few years versus the announcement of today. David Dupuy: Yes, no, I think it's -- that's an important point to bring up. So a couple of things that I'll mention, first of all, just from a leasing perspective. If you look at the expirations that we had built into the portfolio as going from 2024 to 2025 and from 2025 to 2026, those were 2 of the biggest expiration years within our portfolio. And some of that just has to do with the age of the buildings we acquired early on that were these medical office properties. Just after 4 to 6 years of having those buildings, the tenants were turning over. So we had big years. I think it was north of 10% each -- in each of 2025 and 2026. And we knew that we had to perform better as a company. And so that's what prompted us to bring Mark Kearns on board. He has a significant amount of experience and expertise on the leasing side with companies that we admire. We were convinced that he could help us restart and re-engage from a leasing perspective. But we hired him roughly a little bit over a year ago, and he needed some time to get in his seat, to hire his team and to get some momentum. We're seeing that momentum from a leasing perspective today. And so I think it's important that these building blocks. We were putting in place over the last year or so with Mark and his team. And now, the good news is if you look at our lease expirations into remaining 2026 and into '27, '28 and '29, you see a much lower amount of expiration. So we've got this sort of combination of the right team in place, a lower than previous years turnover from an expiration standpoint, and we've got great leasing activity in our markets. And so that combination is really sort of the change and the catalyst for us to have confidence that, that 92% occupancy is real and something that's very achievable in the pipeline. Alexander Goldfarb: Okay, and just the final question is, in the old days you guys used to do $120 million, $130 million a year, and presumably the corporate overhead and the platform was built for sort of that big aggressive pipeline that's slowed in the past, since the pandemic. Do you feel that the overhead, the platform is appropriately sized? Do you think it's too big? Or in your view, you should be back to a growth perspective that makes where you sit corporately compatible with where the growth will be? David Dupuy: Yes, I think we've got the right team in place. Will we have to add pieces here and there? Yes, but I think we've already done a lot of that. We've added a couple of team members over the last 2 years to our asset management group. We've added a couple of leasing members to our leasing team. So I think we've largely built it out. Of course, we're always going to evaluate talent. And if we think that there's an A-plus talent opportunity out there, we will look at it. But to answer your question specifically around G&A, we think that we've got the platform in place to be able to handle that $120 million to $150 million of growth. And ultimately that's our goal is to get back there. We're not going to get all the way there in 2026, and probably not even in 2027, although we'll see. I mean, part of what allows us to do those larger -- make that larger acquisition cadence is some of the compounding in that capital we're retaining. And boy, it would be great if we had some currency in our share price to do some ATM as well. But we're going to take it 1 step at a time. We've got to earn our way into seeing that progress from a share perspective, and we think we'll get there. Operator: The next question comes from Michael Lewis of Truist. Michael Lewis: First, I wanted to follow up on one of the questions Alex asked about the occupancy. That 92% target, that's been kind of out there for a while. It feels like maybe you sort of formalized it in this presentation, but what gets you there and when, right? So you mentioned low expirations in '27, '28, '29. Do you get to 92% at the end of '27, at the end of '28, and then maybe try to go higher? Is there a timeframe around that target? David Dupuy: I think the timeframe, we feel like we can get to that 92% as early as at the end of 2027. Now, getting spaces leased and getting those spaces to actually generate revenue, there's always going to be a little bit of delay between those 2 things. But I think we can get there. What I've said previously, and I still think it holds true today for our portfolio, I think our full occupancy is between 92% and 93%. So there's always going to be some level of occupancy in a portfolio that's heavily weighted toward our physician clinic medical office type space. But I definitely think that there's an opportunity for us to get to that 92% plus or minus and stay there and even grow beyond that. And that's where we're very focused. I mean, just given the fact that we haven't had the currency to grow through acquisition as much as we've wanted, part of the reason we brought Mark in and we've augmented our teams both on asset management as well as on leasing is to really drive the performance in our core portfolio. And so, I think, some of these big expiration years are behind us, but we still have work ahead of us to do this. And the good news from our perspective is we're seeing the leasing activity that can get us there. Michael Lewis: Okay, and then, it appears that redevelopment is the best yield, at least on average. Just wondering, you gave an example of one of these, maybe talk about how much of this is available to you and also the risk-reward on these speculative suites? David Dupuy: So on redevelopment, they do have good returns. They have the added advantage of -- it's a building, of course, we already own. And so we know the building, we know the market. The trade-off, if there is a trade-off between the redevelopment projects, is, of course, now, we try to build this into our yield on cost or returns. There's a period of time where we are investing in a property where we're not getting anything back unless -- which is different than an acquisition when we acquire something, that NOI starts day 1 or very soon after the acquisition. So that's why we typically look for higher returning projects. As far as trying to put a number on those, you know, the project that I highlighted, one of the largest redevelopments we've done, we think it's going to be a great project. I was there for the ribbon cutting earlier this summer. It's a great project with 2 strong operators in the Lafayette market. But I think, in general, those redevelopments size profile-wise are going to be more like the other redevelopment projects we've done, anywhere from $3 million to $5 million projects, either full building renovation, redevelopment or partial building renovation, redevelopment. And Michael, it's tough to -- we're very focused on trying to find the right tenant and the right opportunity to utilize and to do these redevelopment projects. It's tough to tell you. My guess is historically, over the last 3 years, we've had anywhere from $10 million to $15 million worth of those projects going on over time. I think it's reasonable to see anywhere from $10 million to $15 million worth of those types of projects going on over time. But it's tough to be precise with it because a lot of those tend to be opportunistic deals, where we know a tenant, they've asked us for, do we have any space or availability in a current market? And then, we look at doing those projects. The speculative suites is also very much based on what markets are busy and what buildings do we feel like would be good projects. And so, right now, we've got 3 buildings that we're working on with these speculative suite projects. But again, they're not huge. They're anywhere from 2,500 to 5,000 square feet projects, about the size for a regular-way physician group practice. And we -- so far, we've had one of these projects that we've done in the [indiscernible] market, and that's worked out very well for us. And so, again, we're going to be selective. We're not going to do 10 of these things, but I think we're going to continue to do projects where we feel like we've got good opportunities, where we're seeing a lot of traffic, and we think speed to market is going to be critical to winning that business. So tough to quantify, but again, it's all of these pieces working together to sort of drive the overall performance of the portfolio. Michael Lewis: Okay, great. And then my last question is on acquisitions, right? So you'll have disposition proceeds, the dividend savings will come in over time. You've got this pipeline of developments you're going to purchase upon completion. What do you think about what we might see in terms of, call them speculative acquisitions, right? You mentioned this pipeline of -- if you have the pipeline of inpatient rehab, but what kind of other stuff might you buy? And when do you think you might start pulling the trigger on some of those? David Dupuy: I think we could start seeing some of those additional acquisitions happen in the fourth quarter. It takes a while to identify, and then, close on those types of projects. But I think, our thought process would be you could do anywhere from $5 million to $15 million worth of those deals in the fourth quarter. And then, you know, similarly, in next year, you could do $20 million to $30 million of those types of transactions. So it's -- again, we're going to be very selective and very picky on which projects we do. The good news is we're seeing a lot of opportunities out there, and we think that the opportunities are going to be squarely in our -- squarely in our fairway, those high single-digit returns for quality properties. So, again, $5 million to $15 million probably, toward the end of this year, and then, another $20 million to $30 million next year. Operator: This concludes our question and answer session. I would like to turn the conference back over to Dave Dupuy for any closing remarks. David Dupuy: Great. Thank you all. We appreciate the interest in CHCT, and please, as always, feel free to call us if you have any questions. William Monroe: Have a great day. 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Interested in Community Healthcare Trust Incorporated? Here are five stocks we like better. Community Healthcare Trust cut its quarterly dividend to $0.33 per share from $0.48, targeting a 60%–65% AFFO payout ratio and retaining $25 million–$30 million over two years for acquisitions and portfolio investments. The company is targeting improved occupancy, redevelopment and asset recycling, with a goal of reaching 90.5% occupancy by the end of 2026 and potentially 92% within 18 months. It has sold seven properties for $38.5 million and is marketing more than $70 million of additional assets. Second-quarter AFFO was unchanged at $0.56 per diluted share, while the company expects $85 million–$90 million of acquisitions in 2026, supported by retained cash flow and disposition proceeds. Community Healthcare Trust (NYSE:CHCT) outlined a strategic plan centered on retaining more capital for acquisitions, improving occupancy and recycling assets after reporting second-quarter adjusted funds from operations of $0.56 per diluted share, unchanged from the first quarter. Chief Executive Officer Dave Dupuy said the company is reducing its quarterly dividend to $0.33 per share from $0.48 per share. The change is expected to retain $25 million to $30 million of capital over the next two years for acquisitions and portfolio investments. → 3 Drone Stocks That Should Soar After the Summer Slump “We are rightsizing our quarterly dividend,” Dupuy said, adding that the company expects the retained cash flow, combined with proceeds from its capital-recycling program, to support investments intended to be accretive to adjusted funds from operations, or AFFO. Chief Financial Officer Bill Monroe said the lower dividend could retain up to $15 million annually. At an approximately 40% debt-to-capitalization level, he said that retained cash flow could support up to $25 million of additional annual acquisitions or reinvestment, assuming 9% to 10% yields. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Monroe estimated the strategy could generate $0.06 to $0.07 of incremental AFFO growth per year. Going forward, Community Healthcare Trust expects to review its dividend annually rather than quarterly and target an AFFO payout ratio of roughly 60% to 65%. Dupuy said the board’s decision was driven by the need to resume growth after the company’s share price remained in a relatively narrow range over the past two years. He said there was no single event that prompted the decision. → Jersey Mike's Serves Fresh Gains After IPO Stumble “The only way we were going to be able to pull it out is for us to do something different from a growth perspective,” Dupuy said. The company identified four priorities in its strategic plan: occupancy improvement, portfolio reinvestment, strategic capital recycling and accelerated acquisition growth. Community Healthcare Trust is targeting occupancy of 90.5% by the end of 2026, an increase of 70 basis points, and sees a path to reach 92% occupancy within 18 months. Dupuy said the company could reach that level as early as the end of 2027, while noting that rent commencement can lag signed leases. The company has signed more than 100,000 square feet of new leases year to date, exceeding its leasing volume for all of 2025, according to Dupuy. Fully realizing anticipated occupancy gains and rent growth could provide as much as $6 million in net operating income upside, he said. Dupuy attributed the leasing outlook in part to lower lease expirations following heavier turnover in 2025 and 2026, as well as demand for healthcare space. He said the company expanded its leasing and asset-management capabilities over the last two years, including hiring Senior Vice President of Asset Management Mark Kearns more than a year ago. For redevelopment, the company is targeting projects with 9% to 12% yields on cost. Dupuy highlighted a completed behavioral hospital in Lafayette, Louisiana, operated through a joint venture between Ochsner Health and Oceans Behavioral Health. Lease commencement at the property occurred early in the third quarter. Community Healthcare Trust also has three speculative-suite projects underway in higher-demand markets. Dupuy said the projects are generally small, designed for physician-group practices, and are intended to reduce the time required to accommodate prospective tenants. He said redevelopment activity has historically totaled about $10 million to $15 million over a three-year period and could remain around that level over time. Since beginning its asset-recycling initiative in 2025, the company has sold seven properties for $38.5 million in net proceeds. More than $70 million of assets are currently being marketed for sale. Dupuy said most of those properties are fully occupied, although fewer than five empty properties are also being marketed and are expected to generate relatively modest proceeds. The company expects to complete $85 million to $90 million in acquisitions during 2026, compared with acquisition volume of $64.5 million and $72.1 million over the prior two years, according to Dupuy. The planned growth is to be funded through disposition proceeds and cash retained under the revised dividend policy. Community Healthcare Trust has signed definitive purchase and sale agreements to acquire four properties after their completion and occupancy, representing an aggregate expected investment of $99 million. Expected returns range from 9.1% to 9.75%. One of those acquisitions is expected to close in the third quarter, another in the fourth quarter, and the remaining two in the second half of 2027. Dupuy also said the company could complete an additional $5 million to $15 million of selective acquisitions in the fourth quarter and $20 million to $30 million of such transactions next year. On the tenant front, the geriatric behavioral hospital operator leasing six Community Healthcare Trust properties paid about $370,000 in rent during the second quarter, up $70,000 from the first quarter. The operator has signed a letter of intent with an experienced behavioral healthcare operator to sell the operations of all six facilities. Dupuy said the prospective buyer has moved into drafting definitive purchase agreements, including new leases for the six properties. The company anticipates a signed purchase agreement during the third quarter and is targeting a closing by year-end, though he cautioned that the transaction remains subject to documentation and closing conditions. He said the tenant’s operational improvement and increased rent payments provide flexibility should the transaction not close, and that other potential operators have expressed interest. For the second quarter, Community Healthcare Trust reported total revenue of $31.2 million, property operating expenses of $5.9 million, general and administrative expense of $4.9 million, and interest expense of $7.4 million. Funds from operations totaled $13.2 million, or $0.48 per diluted common share. AFFO totaled $15.4 million, or $0.56 per diluted common share, matching the first-quarter level. The company also said it expanded its supplemental disclosures to include funds available for distribution calculations, capital-expenditure detail, ownership structures, leasing activity, lease types and portfolio annual escalators. Community Healthcare Trust Incorporated (NYSE:CHCT) is a real estate investment trust that specializes in owning and leasing healthcare-related properties. The company's portfolio is focused primarily on senior housing and care facilities, including skilled nursing centers, assisted living communities, memory care units, independent living apartments and continuing care retirement communities. Through long‐term, triple‐net leases, Community Healthcare Trust seeks stable, predictable cash flows by partnering with experienced operators that manage day-to-day resident care and property operations. As of the latest reporting, Community Healthcare Trust's holdings span multiple regions across the United States, with properties located in both urban and suburban markets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Community Healthcare Trust Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenue: $31.2 million for the second quarter of 2026. Property Operating Expenses: $5.9 million in Q2 2026. General and Administrative Expenses: $4.9 million for the quarter. Interest Expense: $7.4 million in Q2 2026. Funds From Operations (FFO): $13.2 million, or $0.48 per diluted share. Adjusted Funds From Operations (AFFO): $15.4 million, or $0.56 per diluted share, consistent with Q1 2026. Dividend: Right-sized quarterly dividend from $0.48 to $0.33 per share to retain capital for acquisitions. Acquisitions: Expect to close on $85 to $90 million in acquisitions in 2026, with four properties under definitive agreements for an aggregate expected investment of $99 million. Capital Recycling: Sold 7 properties since 2025, generating $38.5 million in net proceeds, with more than $70 million of assets currently in the market. Occupancy: Targeting 90.5% occupancy by year-end 2026, with a goal of 92% over the next 18 months. Warning! GuruFocus has detected 13 Warning Signs with CHCT. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Is CHCT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Community Healthcare Trust Inc (NYSE:CHCT) has implemented a strategic plan to right-size its quarterly dividend from $0.48 to $0.33 per share, freeing up $25-30 million in capital over the next two years to fund accretive acquisitions and portfolio growth. The company has already signed new leases totaling over 100,000 square feet year-to-date in 2026, surpassing its total leasing volume for all of 2025, and is targeting a 70 basis point occupancy increase to 90.5% by year-end. CHCT is actively recycling capital, having sold 7 properties since 2025 for $38.5 million in net proceeds, with over $70 million of assets currently in the market to fund higher-yield acquisitions. The company has a robust acquisition pipeline, with four properties under definitive purchase agreements for an aggregate expected investment of $99 million, expected to yield returns between 9.1% and 9.75%. CHCT is enhancing portfolio transparency by adding new disclosures in its supplemental information, including FAD calculations, property ownership type breakdowns, and lease type details, which should improve investor confidence. The company's AFFO per share remained steady at $0.56 in Q2 2026, consistent with the prior quarter, indicating stable financial performance. CHCT is seeing strong progress on the resolution of its geriatric behavioral hospital operator issue, with a buyer making significant due diligence progress and targeting a signed purchase agreement in Q3 2026. Community Healthcare Trust Inc (NYSE:CHCT) has reduced its quarterly dividend from $0.48 to $0.33 per share, a significant cut that may disappoint income-focused investors and signal a lack of confidence in near-term earnings growth. The company's occupancy remains below optimal levels, with a target of 92% occupancy over the next 18 months, indicating ongoing challenges in leasing vacant space. CHCT's acquisition volume has moderated significantly over the past two years, with only $64.5 million and $72.1 million in acquisitions, reflecting a slowdown in growth compared to historical levels. The resolution of the geriatric behavioral hospital operator issue is still uncertain, with the transaction subject to final documentation and closing conditions, and no guarantee of completion by year-end. The company's share price has been stuck in a band over the past two years, and management acknowledges that the market has not been cooperating, which may limit access to cheaper capital for growth. CHCT's G&A expenses remain elevated at $4.9 million for the quarter, and the platform is sized for larger acquisition volumes, which could pressure margins if growth does not materialize as planned. The company's leverage is targeted at approximately 40% debt to capitalization, which may limit financial flexibility, especially if acquisition opportunities require additional capital. Q: What is the occupancy on the $70 million of assets currently being marketed for sale?A: Dave Dupuy, CEO, stated that most of the buildings being marketed are 100% occupied, with the exception of a small handful (less than 5 buildings) that are empty. This suggests that selling these assets will not significantly dilute the overall portfolio occupancy rate. Q: What was the catalyst for the decision to right-size the dividend now, and is the dividend now reviewed on an annual basis?A: Dave Dupuy, CEO, explained that the decision was driven by the recognition that the company needed to do something different to drive growth, as the stock had been stuck in a band for two years. Bill Monroe, CFO, confirmed that the board will now evaluate the dividend on an annual basis, targeting an AFFO payout ratio of approximately 60-65%. Q: Given the new capital retention strategy, is there any reason the company would increase the dividend from the $0.33 level until it reaches the minimum payout ratio?A: Bill Monroe, CFO, reiterated that the company will target a 60-65% AFFO payout ratio when evaluating the dividend annually. This implies the company intends to retain as much capital as possible to fund its investment pipeline, with increases only considered as AFFO grows. Q: How comfortable is the company with waiting for the third-quarter resolution of the 6 behavioral health hospitals, and is there a backup plan?A: Dave Dupuy, CEO, expressed confidence in the current buyer, noting the business has performed well and recovered significantly. He mentioned that the rent is expected to increase in Q3. While the company believes the current buyer will close, he acknowledged that other parties have expressed interest, providing a potential alternative if the deal falls through. Q: What was the final catalyst for addressing the dividend issue now, versus when the company switched to all-stock compensation in early 2024?A: Dave Dupuy, CEO, stated there was no single event, but rather a recognition after two years of a stagnant stock price that the only way to drive performance was to retain capital and redeploy it into growth. He emphasized the board regularly discussed the dividend and decided a change was necessary to restart the growth engine. Q: Can you provide perspective on what the company has been doing over the past few years, given the new strategic plan seems to be a significant shift?A: Dave Dupuy, CEO, explained that the company faced two of its largest lease expiration years in 2025 and 2026. To address this, they hired Mark Kearns as SVP of Asset Management to rebuild the leasing team and momentum. With lower expirations expected in 2027-2029 and strong current leasing activity, the company is now confident in achieving its 92% occupancy target. Q: Is the corporate overhead and platform appropriately sized for the company's growth ambitions, given the historical acquisition volume of $120-130 million per year?A: Dave Dupuy, CEO, believes the company has the right team in place, having added members to the asset management and leasing teams over the past two years. He stated the platform is capable of handling $120-150 million in acquisitions, though the company will take a step-by-step approach to get back to that level, potentially using retained capital and ATM offerings as the share price recovers. Q: What is the timeline for achieving the 92% occupancy target, and is it possible to go higher?A: Dave Dupuy, CEO, indicated the company could reach 92% occupancy by the end of 2027. He noted that full occupancy for the portfolio is between 92% and 93%, and while there will always be some vacancy in medical office space, the company is focused on getting to 92% and potentially growing beyond that. Q: Can you elaborate on the redevelopment projects and the risk/reward of speculative suites?A: Dave Dupuy, CEO, explained that redevelopment projects offer good returns (9-12% yield on cost) but involve a period of investment without returns. He noted the company typically has $10-15 million of such projects ongoing, with individual projects ranging from $3-5 million. Speculative suites are smaller (2,500-5,000 square feet) and are being built in high-demand markets to capture tenants faster, with one successful example in Kissimmee. Q: What is the outlook for speculative acquisitions, and when might the company start closing on them?A: Dave Dupuy, CEO, stated that additional acquisitions could begin in the fourth quarter of 2026, with $5-15 million of deals expected. For 2027, the company anticipates $20-30 million of such transactions. He emphasized the company will be selective, focusing on high single-digit returns for quality properties, with a strong pipeline of opportunities in the inpatient rehab facility space. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is right-sizing the quarterly dividend to retain approximately $25 million to $30 million over the next two years for accretive acquisitions. The company is shifting from a high-payout model to a growth-oriented strategy due to a stagnant share price and the need for internal capital to fund high-yield opportunities. Occupancy improvement is a primary focus, with a target of 92% by late 2027 supported by year-to-date leasing activity that has already surpassed the total volume for all of 2025. Portfolio reinvestment is targeting 9% to 12% yields on cost through redevelopment projects with high-quality tenants and long-term leases. Strategic capital recycling involves exiting select 100% occupied assets to fund a high-conviction pipeline of inpatient rehab facilities. Management believes the current corporate platform is already sized to handle an annual acquisition volume of $120 million to $150 million. The supply shortage of quality healthcare properties is providing a favorable tailwind for both rent growth and occupancy gains. The company expects to close $85 million to $90 million in acquisitions in 2026, with volume anticipated to increase in 2027 as retained capital compounds. Management targets a 70-basis-point occupancy increase to 90.5% by the end of 2026, with a clear path to 92% within 18 months. Future dividend policy will shift to an annual review targeting an AFFO payout ratio of 60% to 65%. The company anticipates signing a definitive purchase agreement for the 6-property behavioral hospital portfolio in Q3 2026, with a close by year-end. Retained cash flow is expected to generate an incremental $0.06 to $0.07 of AFFO growth per year on a leverage-neutral basis. The Geriatric Behavioral Hospital operator increased rent payments to $370,000 in Q2, though the final sale of operations remains subject to regulatory hurdles. A capital recycling program has $70 million of assets currently in the market, primarily consisting of fully occupied buildings. The company has committed $99 million to four properties to be acquired upon completion, with expected returns between 9.1% and 9.75%. New financial disclosures were introduced, including Funds Available for Distribution (FAD) and detailed property ownership breakouts to improve transparency. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that most assets being marketed are 100% occupied, though a small handful of empty buildings are included. The sale of these highly occupied assets is intended to fund higher-yielding acquisitions rather than just improving occupancy metrics. The current operator has recovered significantly and is paying increased rent, providing flexibility if the pending sale fails. Management noted that other potential suitors have expressed interest, but they remain confident in the current buyer despite regulatory delays. The decision was driven by the market not rewarding the previous high-yield strategy with a higher share price. Retaining capital was deemed the only way to restart the growth engine and drive performance in the current market environment. Management expects to reach the 92% target as early as the end of 2027, noting that 92% to 93% represents 'full' occupancy for this portfolio type. The goal is supported by a significant reduction in lease expirations scheduled for 2027 through 2029 compared to previous years.

FRANKLIN, Tenn., Aug. 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 IncorporatedCommunity 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 StatementsIn 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. CONTACT: Bill Monroe, 615-771-3052 View original content:https://www.prnewswire.com/news-releases/community-healthcare-trust-announces-results-for-the-three-months-ended-june-30-2026-302842930.html

FRANKLIN, Tenn., July 17, 2026 /PRNewswire/ -- Community Healthcare Trust Incorporated (NYSE: CHCT) today announced that on Tuesday evening, August 4, 2026, after the market closes, it will report results for the second quarter of 2026. On August 5, 2026, at 9:00 a.m. Central Time, Community Healthcare Trust will hold a conference call to discuss earnings results, quarterly activities, general operations of the Company and industry trends. Simultaneously, a webcast of the conference call will be available to interested parties via an Internet link at www.chct.reit under the Investor Relations section. A webcast replay will be available following the call at the same Internet site address. Conference Call Details Domestic Dial-In Number: 1-888-347-1332 International Dial-In Number: 1-412-902-4278 Canada Toll Free: 1-855-669-9657 Replay Conference Call Details Domestic & Canada Replay Number: 1-855-669-9658 International Replay Number: 1-412-317-0088 Conference ID: 9422138 About Community Healthcare Trust Incorporated Community Healthcare Trust Incorporated (the "Company") 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 March 31, 2026, the Company had investments of approximately $1.2 billion in 198 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. 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, 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. CONTACT: Bill Monroe, 615-771-3052 View original content:https://www.prnewswire.com/news-releases/community-healthcare-trust-announces-second-quarter-earnings-release-date-and-conference-call-302828754.html

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Community Healthcare Trust’s fair value price target is steady at US$18.50, with no change from the prior estimate, even as other model inputs have been refreshed. That stable target sits alongside analyst research that clusters expectations in the mid to high teens and weighs steady execution against funding and tenant risks. As you read on, you will see how these target assumptions fit into the evolving narrative around balance sheet choices, earnings resilience, and the planned asset sale. Analyst Price Targets don't always capture the full story. Head over to our Company Report to find new ways to value Community Healthcare Trust. Truist maintains a Buy rating with a US$19 price target, highlighting expectations for moderate earnings growth and suggesting confidence in Community Healthcare Trust’s ability to keep earnings supported over time. Piper Sandler, with a Neutral rating and an US$18 price target, points to management’s focus on core operations and capital recycling while the company works through the planned sale of six geriatric behavioral hospitals. Evercore ISI raised its target to US$17 after what it described as a steady Q4, which aligns with the view that execution has been consistent even as the portfolio is being repositioned. Truist flags rising leverage as a concern and notes that Community Healthcare Trust could benefit from a lower cost of equity, which ties directly into how easily it can fund growth and support its balance sheet. Piper Sandler highlights ongoing issues with a troubled tenant and the pending sale of six hospitals across three states, underscoring transaction and counterparty risk while the buyer completes final due diligence. Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives! We've flagged 3 risks for Community Healthcare Trust. See which could impact your investment. Community Healthcare Trust declared a quarterly dividend of US$0.4800 per share, with payment scheduled for May 22, 2026. This may interest income focused investors watching near term cash flows. The dividend carries an ex date of May 11, 2026. Investors buying the stock on or after that day would not be eligible for this specific payout. The record date is also May 11, 2026, meaning shareholders on the register at that point are set to receive the May 22 cash dividend. Fair value remains at US$18.50, with no change from the prior estimate. Revenue growth in the model increases from 8.69% to 9.30%. Net profit margin in the model changes from 9.15% to 9.32%. The future P/E assumption in the model is revised from 46.87x to 43.37x. The discount rate in the model is adjusted from 8.83% to 9.02%. Narratives connect Community Healthcare Trust’s business story to analysts’ forecasts and fair value work, updating as new earnings, deals, and risks come through. They help you see how individual data points fit into a bigger, coherent view. Head over to the Simply Wall St Community and follow the Narrative on Community Healthcare Trust to stay up to date on: How a focus on secondary and tertiary outpatient markets, with limited competing supply, ties into occupancy, rent levels, and margin trends. The role of acquisitions, capital recycling, and the planned transition of the geriatric behavioral hospital portfolio in shaping rental income and portfolio quality. Key risks around distressed tenants, reliance on asset sales to fund growth, upcoming lease expiries, telehealth pressure on physical facilities, and potential cost overruns from transitions and restructuring. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CHCT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Community Healthcare Trust Incorporated? Here are five stocks we like better. Revenue and profitability improved in the first quarter, with total revenue rising 4.8% year over year to $31.5 million and FFO/AFFO also increasing. AFFO per diluted share came in at $0.56, up from both a year ago and the prior quarter. Occupancy slipped modestly to 89.8% due to lease terminations, but management expects leased occupancy to rebound next quarter as renewals and new leasing progress. The company also continues to work through a tenant transition involving six behavioral health hospitals, though timing for a closing remains uncertain. Capital recycling and redevelopment remain central to strategy, with CHCT buying a $28.5 million rehabilitation facility, planning roughly $99 million of additional post-completion acquisitions, and selling lower-priority assets. The company also raised its quarterly dividend to $0.48 per share and said it has increased the payout every quarter since its IPO. Community Healthcare Trust (NYSE:CHCT) reported higher first-quarter revenue and funds from operations while management said it is continuing to focus on capital recycling, selective acquisitions and resolving an ongoing tenant transition involving six behavioral health hospitals. On the company’s 2026 first-quarter earnings call, Chief Executive Officer Dave Dupuy said a geriatric behavioral hospital operator that leases six Community Healthcare Trust properties paid about $300,000 in rent during the quarter, up $100,000 from the prior quarter. Dupuy said the tenant signed a letter of intent on July 17, 2025, to sell the operations of all six hospitals to an experienced behavioral healthcare operator and remains under exclusivity with that buyer. → Uber's Annual Product Showcase Reveals It Is Coming for Airbnb and Booking “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,” Dupuy said. He added that the company remains in “frequent, productive communication” with the buyer’s team, but said Community Healthcare Trust could not provide specific timing or certainty that the transaction will close. Chief Financial Officer Bill Monroe said total revenue rose to $31.5 million in the first quarter of 2026 from $30.1 million in the year-earlier period, a 4.8% increase. On a sequential basis, revenue grew 1.9%, driven primarily by higher rental income from recent acquisitions and higher property operating expense recoveries, partially offset by recent asset sales and net leasing activity. → Wells Fargo’s Comeback Is Real—But Not Risk-Free Property operating expenses increased by about $360,000 from the prior quarter to $6.4 million. Monroe attributed the increase to seasonally higher snowplow and utility expenses at several properties, particularly in January and February. General and administrative expense totaled $5.1 million, up about $330,000 sequentially. Monroe said the increase reflected higher non-cash amortization of deferred compensation and typical first-quarter timing items, including annual employee salary increases, employer HSA and 401(k) contributions, and employer tax payments. G&A expense was unchanged from the first quarter of 2025. → The Hormuz Defense Hedge: Cashing In on Chaos Interest expense declined by $160,000 sequentially to $6.8 million, due to two fewer days in the quarter and slightly lower floating rates on the company’s revolving credit facility. Monroe said second-quarter interest expense is expected to be higher because of an additional day in the quarter, a full quarter of the current revolver balance and the late-March expiration of $75 million of interest rate hedges. Funds from operations totaled $13.4 million, up 5.8% from $12.7 million in the first quarter of 2025. On a diluted common share basis, FFO was $0.49, up from $0.47 a year earlier and flat with the fourth quarter of 2025. Adjusted funds from operations totaled $15.4 million, up 4.1% from $14.7 million a year earlier. AFFO per diluted common share was $0.56, up $0.01 both year over year and sequentially. Dupuy said occupancy decreased to 89.8% from 90.6% during the quarter because of lease terminations. However, he said the leasing team is active on renewals and new leasing and that the company expects leased occupancy to grow in the next quarter. The company’s weighted average lease term increased slightly to 7.1 years from 7.0 years. Dupuy said the asset management team continues to focus on tenant service and property operating costs. Community Healthcare Trust has three properties undergoing redevelopment or significant renovation, with long-term tenants expected to be in place once the projects are complete. The largest project, a behavioral healthcare facility, received its certificate of occupancy in March. Due to healthcare licensure requirements, Dupuy said the property is expected to begin its lease and contribute net operating income during the third quarter of 2026. During the first quarter, Community Healthcare Trust acquired an inpatient rehabilitation facility after completion of construction for $28.5 million. The company entered into a new lease that expires in 2044, with an anticipated annual return of about 9.3%. In the question-and-answer session, Dupuy said the 9.3% yield is a cash yield and that the lease includes 2% escalators. He said those escalators are consistent with what the company anticipates for the other properties in its acquisition pipeline. The company has signed definitive purchase and sale agreements for four properties to be acquired after completion and occupancy, representing an aggregate expected investment of $99 million. Expected returns on those investments range from 9.1% to 9.75%. Community Healthcare Trust expects to close on two of the properties in the second half of 2026 and the other two in the second half of 2027. Dupuy said the company sold one building in Fort Myers, Florida, in February, generating net proceeds of about $5.2 million and recording a small loss on the sale. It also received about $700,000 in net proceeds from a property disposition at the end of 2025. The company did not issue shares under its at-the-market equity program during the quarter. Asked by Piper Sandler analyst Alexander Goldfarb about acquisition conditions, Dupuy said the company continues to see opportunities in its target property types. He said the pace of acquisitions is being shaped more by Community Healthcare Trust’s cost of capital and its decision to fund growth through asset sales and revolver availability, rather than by a lack of available properties. “We’re using this as an opportunity to really prune the portfolio and improve the portfolio,” Dupuy said, referring to the company’s capital recycling efforts. He said the company sold five properties in 2025 and one in 2026, with a focus on trimming properties in less attractive markets. Community Healthcare Trust declared a first-quarter dividend of $0.48 per common share, or $1.92 per share annualized. Dupuy said the company has raised its dividend every quarter since its initial public offering. Looking ahead, Dupuy said management expects some redevelopment projects and other initiatives to come online in the second half of the year, which he said could help the company begin posting AFFO growth while continuing to pursue portfolio growth through leasing and acquisitions. Community Healthcare Trust Incorporated (NYSE:CHCT) is a real estate investment trust that specializes in owning and leasing healthcare-related properties. The company's portfolio is focused primarily on senior housing and care facilities, including skilled nursing centers, assisted living communities, memory care units, independent living apartments and continuing care retirement communities. Through long‐term, triple‐net leases, Community Healthcare Trust seeks stable, predictable cash flows by partnering with experienced operators that manage day-to-day resident care and property operations. As of the latest reporting, Community Healthcare Trust's holdings span multiple regions across the United States, with properties located in both urban and suburban markets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Community Healthcare Trust Q1 Earnings Call Highlights" was originally published by MarketBeat. 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FRANKLIN, Tenn., May 5, 2026 /PRNewswire/ -- Community Healthcare Trust Incorporated (NYSE: CHCT) (the "Company") today announced results for the three months ended March 31, 2026. The Company reported net income for the three months ended March 31, 2026 of approximately $2.5 million, or $0.07 per diluted common share. Funds from operations ("FFO") and adjusted funds from operations ("AFFO") for the three months ended March 31, 2026 totaled $0.49 and $0.56 per diluted common share, respectively. Items Impacting Our Results include: During the first quarter of 2026, the Company acquired an inpatient rehabilitation facility in Florida upon completion of construction for a purchase price and cash consideration of approximately $28.5 million. The property was 100.0% leased to a tenant with a lease expiration in 2044 and an expected return of approximately 9.3%. The acquisition was funded with net proceeds from the Revolving Credit Facility and asset sales. During the first quarter of 2026, the Company disposed of one property and received net proceeds of approximately $5.2 million. The Company also received net proceeds of approximately $0.7 million for a property disposed of during the fourth quarter of 2025. During the first quarter of 2026, the geriatric behavioral hospital operator, a tenant in six of the Company's properties, paid $0.3 million in rent, an increase of $0.1 million from the fourth quarter of 2025. 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 these properties throughout 2026 and 2027; however, the Company cannot provide assurance as to the timing of when, or whether, these transactions will actually close. During the first quarter of 2026, the Company did not issue any shares under its ATM program. On April 30, 2026, the Company's Board of Directors declared a quarterly common stock dividend in the amount of $0.48 per share. The dividend is payable on May 22, 2026 to stockholders of record on May 11, 2026. 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 March 31, 2026, the Company had investments of approximately $1.2 billion in 198 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, 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. CONTACT: Bill Monroe, 615-771-3052 View original content:https://www.prnewswire.com/news-releases/community-healthcare-trust-announces-results-for-the-three-months-ended-march-31-2026-302763123.html