Download PDF

1. Company Snapshot

1.a. Company Description

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.The Company had investments of approximately $667.3 million in 131 real estate properties as of September 30, 2020, located in 33 states, totaling approximately 2.8 million square feet.

Show Full description

1.b. Last Insights on CHCT

Community Healthcare Trust Incorporated's recent performance was driven by strong quarterly dividend increase, with a 14.1% hike in its common stock cash dividend for the quarter ended December 31, 2024. Additionally, the company plans to make accretive acquisitions, which could expand its enterprise value by 17% and boost annual Adjusted Funds From Operations (AFFO) by as much as 9%. This strategic move is expected to have a positive impact on the company's growth and profitability.

1.c. Company Highlights

2. Community Healthcare Trust's Q3 2025 Earnings: A Closer Look

Community Healthcare Trust reported total revenue of $31.1 million for the third quarter of 2025, representing a 4.9% annual growth over the same period last year. Funds from operations (FFO) were $13.5 million, a 5.7% increase year-over-year, while adjusted funds from operations (AFFO) totaled $15.1 million, a 3.1% increase year-over-year. The company's AFFO on a diluted common share basis was $0.56, beating analyst estimates of $0.54.

Publication Date: Nov -04

📋 Highlights
  • Rent from Geriatric Behavioral Hospital Operator:: Tenant paid $200,000 in quarterly rent and is in sale discussions for 6 hospitals, with potential new leases post-acquisition.
  • Revenue Growth:: Total revenue rose to $31.1 million in Q3 2025 vs. $29.6 million in Q3 2024, reflecting 4.9% annual growth.
  • AFFO Performance:: Adjusted funds from operations (AFFO) reached $15.1 million, a 3.1% increase YoY, with $0.56 per diluted share.
  • Acquisition Strategy:: Targeting 9-10% cap-rate opportunities, with $172 million expected investment in 7 properties over 18 months via capital recycling.
  • Capital Recycling Plan:: Focused on disposing noncore assets to fund acquisitions, including 1031 exchanges and traditional sales to defer gains and maximize proceeds.

Operational Highlights

The company's occupancy rate decreased slightly from 90.7% to 90.1% during the quarter. However, the company remains optimistic about its prospects, with plans to redevelop three properties and increase occupancy, which is expected to contribute additional rent in 2026. The company is also focused on capital recycling, with plans to dispose of non-core properties and reinvest in accretive assets.

Acquisition Pipeline and Funding

According to Dave Dupuy, the company is being highly selective in its acquisition pipeline and wants to ensure that it has the ability to pay for acquisitions without increasing leverage. The company is seeing opportunities in the 9% to 10% cap rate range but is waiting for a better currency. William Monroe clarified that the company expects to fully pay for the next acquisition with the proceeds of a larger upcoming disposition, eliminating any incremental debt.

Valuation Metrics

With a P/E Ratio of -52.55, the company's valuation appears to be influenced by its negative earnings. However, the P/S Ratio of 3.46 and EV/EBITDA of 15.33 suggest that the market is pricing in a certain level of growth. The Dividend Yield of 12.82% is also attractive to income investors. As analysts estimate revenue growth of 6.1% for next year, it remains to be seen whether the company can deliver on its growth prospects.

Behavioral Health Tenants

The company is actively pursuing multiple paths to resolve the situation with its behavioral health tenants, with a focus on getting paid more rent associated with those tenants. Dave Dupuy stated that the best-case scenario is a similar couple of hundred thousand in the fourth quarter and a new lease with the buyer. The company is also expecting to close the deal by the first quarter of 2026, although it had initially hoped to close by year-end.

3. NewsRoom

Card image cap

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

Dec -03

Source: prnewswire.com

Card image cap

Winners And Losers Of REIT Earnings Season

Nov -14

Source: seekingalpha.com

Card image cap

Acadian Asset Management LLC Acquires 18,594 Shares of Community Healthcare Trust Incorporated $CHCT

Nov -14

Source: defenseworld.net

Card image cap

Community Healthcare Trust Vs. Medical Properties Trust: Which Is The Better REIT For 2026

Nov -03

Source: seekingalpha.com

Card image cap

Asset Management One Co. Ltd. Reduces Stock Position in Community Healthcare Trust Incorporated $CHCT

Oct -31

Source: defenseworld.net

Card image cap

Community Healthcare Trust Incorporated (CHCT) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

Card image cap

Community Healthcare Trust Incorporated $CHCT Shares Sold by Allianz Asset Management GmbH

Oct -29

Source: defenseworld.net

Card image cap

Compared to Estimates, Community Healthcare Trust (CHCT) Q3 Earnings: A Look at Key Metrics

Oct -28

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.07%)

6. Segments

Rental

Expected Growth: 10%

Rental growth driven by increasing demand for healthcare services, aging population, and strategic acquisitions. Community Healthcare Trust's diversified portfolio of medical properties, strong tenant relationships, and long-term leases contribute to stable and growing rental income, supporting a 10% growth rate.

Other Operating Interest

Expected Growth: 12%

Community Healthcare Trust Incorporated's 12% growth in Other Operating Interest is driven by increasing demand for healthcare services, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on providing high-quality, cost-effective healthcare solutions and its strong relationships with healthcare providers have contributed to its growth.

7. Detailed Products

Medical Office Buildings

Community Healthcare Trust Incorporated owns and operates medical office buildings, providing healthcare providers with convenient and accessible facilities to deliver patient care.

Surgery Centers

The company invests in and operates ambulatory surgery centers, offering outpatient surgical procedures and other medical services.

Urgent Care Centers

Community Healthcare Trust Incorporated develops and operates urgent care centers, providing immediate, non-emergency medical care to patients.

Imaging Centers

The company owns and operates imaging centers, offering diagnostic imaging services such as MRI, CT, and X-ray scans.

Rehabilitation Centers

Community Healthcare Trust Incorporated invests in and operates rehabilitation centers, providing physical, occupational, and speech therapy services.

8. Community Healthcare Trust Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Community Healthcare Trust Incorporated is moderate due to the presence of alternative healthcare providers and services.

Bargaining Power Of Customers

The bargaining power of customers for Community Healthcare Trust Incorporated is low due to the lack of negotiating power and the importance of healthcare services.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Community Healthcare Trust Incorporated is moderate due to the presence of multiple suppliers and the importance of quality healthcare services.

Threat Of New Entrants

The threat of new entrants for Community Healthcare Trust Incorporated is high due to the growing demand for healthcare services and the potential for new market entrants.

Intensity Of Rivalry

The intensity of rivalry for Community Healthcare Trust Incorporated is high due to the presence of established competitors and the need to differentiate services.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 44.25%
Debt Cost 4.54%
Equity Weight 55.75%
Equity Cost 7.14%
WACC 5.99%
Leverage 79.36%

11. Quality Control: Community Healthcare Trust Incorporated passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
LTC Properties

A-Score: 6.7/10

Value: 4.0

Growth: 4.1

Quality: 7.3

Yield: 9.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Universal Health Realty Trust

A-Score: 6.0/10

Value: 3.8

Growth: 3.6

Quality: 5.6

Yield: 10.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Community Healthcare Trust

A-Score: 5.9/10

Value: 6.4

Growth: 2.8

Quality: 5.4

Yield: 10.0

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Alpine Income Property Trust

A-Score: 5.6/10

Value: 4.8

Growth: 5.1

Quality: 3.2

Yield: 10.0

Momentum: 1.5

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Global Medical REIT

A-Score: 5.5/10

Value: 5.7

Growth: 5.0

Quality: 4.2

Yield: 9.0

Momentum: 1.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Diversified Healthcare Trust

A-Score: 4.4/10

Value: 7.9

Growth: 2.7

Quality: 2.7

Yield: 3.0

Momentum: 7.0

Volatility: 3.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.29$

Current Price

15.29$

Potential

-0.00%

Expected Cash-Flows