Community Healthcare Trust (CHCT) Q2 2026 earnings summary

Executive summary

• Portfolio consists of 197 properties across 36 states, totaling $1.25B in gross real estate investments and 4.5M sq. ft., diversified by asset type, operator, and geography.

• Net income for Q2 2026 was $2.4 million, reversing a net loss in Q2 2025, driven by higher rental income and lower expenses.

• Strategic plan focuses on dividend rightsizing, capital allocation for acquisitions, redevelopment, occupancy growth, and operating improvements.

• Quarterly dividend reduced by 31% to $0.33 per share, lowering AFFO payout ratio to 60% and freeing $25–$30 million for growth initiatives over two years.

• Expanded asset management, leasing, and construction teams to accelerate leasing and portfolio optimization.

Financial highlights

• Q2 2026 revenue was $31.2M, up 7% year-over-year; AFFO per share increased 12% to $0.56; FFO per share was $0.48.

• Net income per share was $0.06 for Q2 2026, compared to a loss of $0.50 per share in Q2 2025.

• Annualized NOI stands at $101.4M; portfolio occupancy at 89.8%.

• Debt/total capitalization at 43.9% as of Q2 2026; net debt to Adjusted EBITDAre annualized at 6.0x.

• Dividend payout ratio targeted at 60%-65% of AFFO, with annual dividend review.

Outlook and guidance

• Targeting improvement in leased occupancy from 89.8% to 92% by end of 2027, with over 100,000 sq. ft. of new leases signed year-to-date.

• $99M acquisition pipeline under contract, with expected yields of 9-10% and ~2.5% escalators; closings anticipated through 2027.

• Redevelopment projects expected to yield 9%-12% on cost, with $10M-$15M in projects ongoing annually.

• $70M+ in marketed dispositions to fund new acquisitions, aiming for growth without new equity issuance.

• Management expects to fund acquisitions and improvements through cash from operations, debt, equity issuances, or asset sales.