FRANKLIN, Tenn., Nov. 3, 2026 /PRNewswire/ -- Community Healthcare Trust Incorporated (NYSE: CHCT) (the "Company") today announced results for the three months ended September 30, 2026. The Company reported net income for the three months ended September 30, 2026 of approximately $3.1 million, or $0.09 per diluted common share. Funds from operations ("FFO") and adjusted funds from operations ("AFFO") for the three months ended September 30, 2026 totaled $0.54 and $0.58 per diluted common share, respectively.
Highlights Include:
Executing on Strategic Plan
The Company's results for the three months ended September 30, 2026 reflect measurable progress executing the Strategic Plan announced August 4, 2026. Key operational and financial highlights from the second quarter of 2026 to the third quarter of 2026 include total revenue growth of $1.2 million or 4%, leased occupancy growth from 89.8% to 90.1%, and general and administrative expense decline of $0.7 million or 14.3%. On a year-over-year basis, FFO per share increased by $0.04 or 8.0%, while AFFO per share increased by $0.02 or 3.6%. Additionally, since the close of the second quarter of 2026, the Company has completed $32.3 million in property dispositions to support ongoing strategic capital recycling.
Dividend
On November 3, 2026, the Company's Board of Directors declared a quarterly common stock dividend in the amount of $0.33 per share, payable on November 25, 2026, to stockholders of record as of November 13, 2026. This is the same quarterly common stock dividend amount as the prior quarter.
Items Impacting Our Results
- Net income and FFO for the three months ended September 30, 2026 were impacted by a reduction in deferred compensation expense, included in general and administrative expenses, totaling approximately $0.9 million in the third quarter of 2026 compared to the second quarter of 2026. The decrease in deferred compensation expense was generally due to fully amortized restricted stock awards and forfeited performance-based restricted stock units at June 30, 2026 totaling approximately $1.25 million, offset partially by an increase in amortization due to restricted stock awards and units granted during the third quarter 2026 totaling approximately $0.4 million.
- During the third quarter of 2026, the geriatric behavioral hospital operator, a tenant in six of the Company's properties, paid approximately $0.5 million in rent, an increase of approximately $0.2 million from the second quarter of 2026. The tenant previously signed a Letter of Intent (LOI) in July 2025 to sell its business to a behavioral healthcare provider. The prospective buyer is finalizing legal and business due diligence and drafting definitive purchase agreements, which include new leases for the six hospital properties owned by the Company. While the transaction is progressing, the Company cannot provide assurance regarding the specific timing or the ultimate certainty of the closing.
- During the third quarter of 2026, the Company sold a property, received net proceeds of approximately $0.1 million, and recorded a $0.7 million loss on sale.
- The Company has four properties under definitive purchase agreements, to be acquired after completion and occupancy, for an aggregate expected purchase price of approximately $99.0 million. The Company's expected returns on these investments are approximately 9.1% to 9.75%. The Company anticipates closing on the first of these properties in the fourth quarter of 2026, a second in the first quarter of 2027, and the remaining two between mid-2027 and early 2028; however, the Company cannot provide assurance as to the timing of when, or whether, these transactions will actually close.
- During the third quarter of 2026, the Company did not issue any shares under its ATM program.
- Subsequent to September 30, 2026, the Company sold two properties as part of the Company's capital recycling program for net proceeds totaling approximately $31.5 million. The proceeds are expected to fund acquisitions through like-kind exchange under Section 1031 and to be used for general corporate purposes.
About Community Healthcare Trust Incorporated
Community Healthcare Trust Incorporated is a real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in our target sub-markets throughout the United States. As of September 30, 2026, the Company had investments of approximately $1.2 billion in 196 real estate properties (including one property with sales-type leases and two properties classified as assets held for sale). The properties are located in 36 states, totaling approximately 4.5 million square feet in the aggregate.
Additional information regarding the Company, including this quarter's operations, can be found at www.chct.reit. Please contact the Company at 615-771-3052 to request a printed copy of this information.
Cautionary Note Regarding Forward-Looking Statements
In addition to the historical information contained within, the matters discussed in this press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "believes", "expects", "may", "will," "should", "seeks", "approximately", "intends", "plans", "estimates", "anticipates" or other similar words or expressions, including the negative thereof. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Because forward-looking statements relate to future events, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the control of Community Healthcare Trust Incorporated (the "Company"). Thus, the Company's actual results and financial condition may differ materially from those indicated in such forward-looking statements. Some factors that might cause such a difference include the following: general volatility of the capital markets and the market price of the Company's common stock, changes in the Company's business strategy, availability, terms and deployment of capital, changes in the real estate industry in general, interest rates or the general economy, adverse developments related to the healthcare industry, changes in governmental regulations, the degree and nature of the Company's competition, the ability to consummate acquisitions under contract, catastrophic or extreme weather and other natural events and the physical effects of climate change, the occurrence of cyber incidents, effects on global and national markets as well as businesses resulting from increased inflation, changes in interest rates, supply chain disruptions, labor conditions, prolonged government shutdown or budgetary reductions or impasses, tariffs and global trade tensions, and/or international conflicts (including the conflicts in the Ukraine and in the Middle East), and the other factors described in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and the Company's other filings with the Securities and Exchange Commission from time to time. Readers are therefore cautioned not to place undue reliance on the forward-looking statements contained herein which speak only as of the date hereof. The Company intends these forward-looking statements to speak only as of the time of this press release and undertakes no obligation to update forward-looking statements, whether as a result of new information, future developments, or otherwise, except as may be required by law.
COMMUNITY HEALTHCARE TRUST INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars and shares in thousands, except per share amounts)
September 30, 2026 December 31, 2025
(Unaudited)
ASSETS
Real estate properties:
Land and land improvements $160,321 $154,673
Buildings, improvements, and lease intangibles 1,058,175 1,047,743
Personal property 816 813
Total real estate properties 1,219,312 1,203,229
Less accumulated depreciation (308,944) (280,316)
Total real estate properties, net 910,368 922,913
Cash and cash equivalents 1,350 3,340
Assets held for sale, net 22,588 5,265
Other assets, net 66,105 59,239
Total assets $1,000,411 $990,757
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Debt, net $558,382 $532,199
Accounts payable and accrued liabilities 15,281 14,925
Other liabilities, net 13,308 14,246
Total liabilities 586,971 561,370
Commitments and contingencies
Stockholders' Equity
Preferred stock, $0.01 par value; 50,000 shares authorized; none issued and outstanding -
Common stock, $0.01 par value; 450,000 shares authorized; 28,739 and 28,471 shares 287 285
issued and outstanding at September 30, 2026 and December 31, 2025, respectively
Additional paid-in capital 724,107 717,450
Cumulative net income 98,757 90,777
Accumulated other comprehensive gain 13,028 6,691
Cumulative dividends (422,739) (385,816)
Total stockholders' equity 413,440 429,387
Total liabilities and stockholders' equity $1,000,411 $990,757
The Consolidated Balance Sheets do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.
COMMUNITY HEALTHCARE TRUST INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025
(Unaudited; Dollars and shares in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2026 2025 2026 2025
REVENUES
Rental income $32,193 $30,814 $94,433 $90,672
Other operating interest 250 272 758 (423)
32,443 31,086 95,191 90,249
EXPENSES
Property operating 5,975 5,930 18,209 17,610
General and administrative(1) 4,191 4,658 14,189 20,317
Depreciation and amortization 10,668 10,902 32,063 32,724
20,834 21,490 64,461 70,651
OTHER (EXPENSE) INCOME
Loss on sale and impairment of depreciable real estate assets, net of (1,039) (888) (1,039) (248)
gains
Interest expense (7,515) (7,075) (21,742) (20,019)
Credit loss reserve - (8,672)
Deferred income tax benefit - 12
Interest and other income, net 13 7 19 15
(8,541) (7,956) (22,750) (28,924)
NET INCOME (LOSS) $3,068 $1,640 $7,980 $(9,326)
Net income (loss) per common share - Basic & Diluted $0.09 $0.03 $0.22 $(0.43)
Weighted Average Common Shares Outstanding-basic & Diluted 27,070 26,934 27,026 26,824
(1) General and administrative expenses for the three and nine months ended September 30, 2026 included stock-based compensation expense totaling approximately $1.9 million and $7.4 million, respectively. General and administrative expenses for the three and nine months ended September 30, 2025 included stock-based compensation expense totaling approximately $2.5 million and $12.3 million, respectively. General and administrative expenses for the nine months ended September 30, 2025 included
severance and transition-related expenses totaling $1.3 million and accelerated non-cash stock-based compensation amortization of $4.6 million related to the termination of a former executive officer.
The Consolidated Statements of Operations do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.
COMMUNITY HEALTHCARE TRUST INCORPORATED
RECONCILIATION OF FFO and AFFO
(1)
(Unaudited; Dollars and shares in thousands, except per share amounts)
Three Months Ended September
30,
2026 2025
Net income $3,068 $1,640
Real estate depreciation and amortization 10,853 11,019
Loss on sale and impairment of real estate assets 1,039 888
Total adjustments 11,892 11,907
FFO (1) $14,960 $13,547
Straight-line rent (846) (913)
Stock-based compensation 1,903 2,465
AFFO (1) $16,017 $15,099
FFO per Common Share-Diluted (1) $0.54 $0.50
AFFO per Common Share-Diluted (1) $0.58 $0.56
Weighted Average Common Shares Outstanding-Diluted (2) 27,744 27,195
(1) Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or
fallen with market conditions, many industry investors deem presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. For that
reason, the Company considers funds from operations ("FFO") and adjusted funds from operations ("AFFO") to be appropriate measures of operating performance of an equity real estate investment trust
("REIT"). In particular, the Company believes that AFFO is useful because it allows investors, analysts and Company management to compare the Company's operating performance to the operating
performance of other real estate companies and between periods on a consistent basis without having to account for differences caused by unanticipated items and other events.
The Company uses the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") definition of FFO. FFO is an operating performance measure adopted by NAREIT. NAREIT defines FFO as the most
commonly accepted and reported measure of a REIT's operating performance equal to net income (calculated in accordance with GAAP), excluding gains or losses from the sale of certain real estate assets,
gains and losses from change in control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of
depreciable real estate held by the entity, plus depreciation and amortization related to real estate properties, and after adjustments for unconsolidated partnerships and joint ventures. NAREIT also
provides REITs with an option to exclude gains, losses and impairments of assets that are incidental to the main business of the REIT from the calculation of FFO.
In addition to FFO, the Company presents AFFO and AFFO per share. The Company defines AFFO as FFO, excluding certain expenses related to closing costs of properties acquired accounted for as business
combinations and mortgages funded, excluding straight-line rent and the amortization of stock-based compensation, and including or excluding other non-cash items from time to time. AFFO presented
herein may not be comparable to similar measures presented by other real estate companies due to the fact that not all real estate companies use the same definition.
FFO and AFFO should not be considered as alternatives to net income (determined in accordance with GAAP) as indicators of the Company's financial performance or as alternatives to cash flow from
operating activities (determined in accordance with GAAP) as measures of the Company's liquidity, nor are they necessarily indicative of sufficient cash flow to fund all of the Company's needs. The
Company believes that in order to facilitate a clear understanding of the consolidated historical operating results of the Company, FFO and AFFO should be examined in conjunction with net income as
presented elsewhere herein.
(2) Diluted weighted average common shares outstanding for FFO and AFFO are calculated based on the treasury method, rather than the 2-class method used to calculate earnings per share. Restricted stock
awards and time-based RSUs are included in the calculation of weighted average common shares outstanding to the extent that they are dilutive. Performance-based RSUs are included in the calculation
of weighted average common shares outstanding to the extent that they are in-the-money as of the end of the reporting period and are dilutive.
CONTACT: Bill Monroe, 615-771-3052
View original content:https://www.prnewswire.com/news-releases/community-healthcare-trust-announces-results-for-the-three-months-ended-september-30-2026-302928333.html
SOURCE Community Healthcare Trust Incorporated
