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 Incorporated
Community Healthcare Trust Incorporated is a real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in our target sub-markets throughout the United States. As of June 30, 2026, the Company had investments of approximately $1.2 billion in 197 real estate properties (including one property with sales-type leases). The properties are located in 36 states, totaling approximately 4.5 million square feet in the aggregate.
Additional information regarding the Company, including this quarter's operations, can be found at www.chct.reit. Please contact the Company at 615-771-3052 to request a printed copy of this information.
Cautionary Note Regarding Forward-Looking Statements
In addition to the historical information contained within, the matters discussed in this press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "believes", "expects", "may", "will," "should", "seeks", "approximately", "intends", "plans", "estimates", "anticipates" or other similar words or expressions, including the negative thereof. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Because forward-looking statements relate to future events, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the control of Community Healthcare Trust Incorporated (the "Company"). Thus, the Company's actual results and financial condition may differ materially from those indicated in such forward-looking statements. Some factors that might cause such a difference include the following: general volatility of the capital markets and the market price of the Company's common stock, changes in the Company's business strategy, availability, terms and deployment of capital, changes in the real estate industry in general, interest rates or the general economy, adverse developments related to the healthcare industry, changes in governmental regulations, the degree and nature of the Company's competition, the ability to consummate acquisitions under contract, catastrophic or extreme weather and other natural events and the physical effects of climate change, the occurrence of cyber incidents, effects on global and national markets as well as businesses resulting from increased inflation, changes in interest rates, supply chain disruptions, labor conditions, prolonged government shutdown or budgetary reductions or impasses, tariffs and global trade tensions, and/or international conflicts (including the conflicts in the Ukraine and in the Middle East), and the other factors described in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and the Company's other filings with the Securities and Exchange Commission from time to time. Readers are therefore cautioned not to place undue reliance on the forward-looking statements contained herein which speak only as of the date hereof. The Company intends these forward-looking statements to speak only as of the time of this press release and undertakes no obligation to update forward-looking statements, whether as a result of new information, future developments, or otherwise, except as may be required by law.
COMMUNITY HEALTHCARE TRUST INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars and shares in thousands, except per share amounts)
June 30, 2026 December 31, 2025
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(Unaudited)
ASSETS
Real estate properties:
Land and land improvements $ 163,506 $ 154,673
Buildings, improvements, and
lease intangibles 1,077,295 1,047,743
Personal property 814 813
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Total real estate
properties 1,241,615 1,203,229
Less accumulated depreciation (301,593) (280,316)
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Total real estate
properties, net 940,022 922,913
Cash and cash equivalents 2,673 3,340
Assets held for sale -- 5,265
Other assets, net 60,900 59,239
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Total assets $ 1,003,595 $ 990,757
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LIABILITIES AND STOCKHOLDERS'
EQUITY
Liabilities
Debt, net $ 559,321 $ 532,199
Accounts payable and accrued
liabilities 17,691 14,925
Other liabilities, net 12,341 14,246
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