Community Healthcare Trust (CHCT) Q1 2025 earnings summary

Executive summary

• Operates a diversified healthcare real estate portfolio with 201 properties across 36 states, 90.9% leased, and a 6.7-year average lease term as of March 31, 2025.

• Q1 2025 net income was $1.6M, down from $3.7M in Q1 2024, due to higher interest and operating expenses.

• FFO and AFFO per diluted share were $0.47 and $0.55, respectively, both down year-over-year.

• Acquired a behavioral residential treatment facility for $9.7M and disposed of a building in Ohio for $0.6M.

• Seven properties under definitive purchase agreements for $169.5M, with anticipated returns of 9.1%–9.75%.

Financial highlights

• Total revenue for Q1 2025 was $30.1M, up 2.5% year-over-year and 2.7% sequentially.

• Property operating expenses rose to $6.1M, mainly due to seasonal utility and snowplow costs.

• G&A expenses increased to $5.1M, driven by non-cash amortization and seasonal compensation.

• Interest expense increased to $6.4M, reflecting higher average balances and rates.

• Comprehensive loss for Q1 2025 was $(3.6)M, mainly due to a $3.4M decrease in fair value of cash flow hedges.

Outlook and guidance

• Seven properties under contract for $169.5M expected to close through 2027, with additional pipeline including a $4.1M property and a $60M development term sheet.

• $28.2M in tenant improvement commitments and $3.3M in capital improvement commitments as of March 31, 2025.

• Quarterly dividend raised to $0.47/share, annualized at $1.88/share.

• Will fund acquisitions through asset sales, revolver draws, and operations, avoiding significant leverage increases.