Community Healthcare Trust (CHCT) Q3 2024 earnings summary

Executive summary

• Revenue grew 3.1% year-over-year to $29.6 million in Q3 2024, with normalized quarter-over-quarter growth of 1%.

• Owns 198 properties across 35 states, leased to 315 tenants, with a market cap of $512.6 million as of September 30, 2024.

• Achieved 37 consecutive quarters of dividend growth and a 48% total shareholder return since inception.

• Acquired six properties for $63.9M in the first nine months of 2024, with 91.3% portfolio occupancy and a weighted average lease term of 6.8 years.

• Dividend increased to $0.465 per share, marking consecutive quarterly increases since IPO.

Financial highlights

• FFO rose to $12.8 million in Q3 2024, up $1.2 million from Q2 2024; FFO per diluted share was $0.48.

• AFFO reached $14.6 million, up from $14.3 million in Q2; AFFO per share rose from $0.53 to $0.55.

• Q3 2024 net income was $1.7M, down 49.9% from $3.5M in Q3 2023; nine-month net loss of $5.0M vs. $3.1M income in 2023.

• Property operating expenses increased by $414,000 to $6 million, mainly due to seasonal HVAC and utility costs.

• Interest expense rose to $6.3 million, reflecting higher revolver borrowings and a 34.7% year-over-year increase.

Outlook and guidance

• Four properties under definitive purchase agreements for $8.8 million expected to close in Q4 2024; seven more under contract for $169.5 million to close through 2027.

• Three redevelopment projects expected to commence leases in Q1 2025, adding $750,000+ in annual rent.

• Signed term sheet for up to $60 million in dialysis clinic developments at 9.5% expected returns.

• Sufficient capital anticipated from asset sales and revolver to fund near-term acquisitions.

• Declared Q4 2024 dividend of $0.465 per share, annualized to $1.86.