FRANKLIN, Tenn.,
Feb. 18,
2025 /PRNewswire/ -- Community Healthcare Trust
Incorporated (NYSE: CHCT) (the "Company") today announced results
for the three months ended December 31, 2024. The Company
reported net income for the three months ended
December 31, 2024 of approximately $1.8
million, or $0.04 per diluted
common share. Funds from operations ("FFO") and adjusted funds from
operations ("AFFO") for the three months ended December 31, 2024 totaled $0.48 and $0.55,
respectively, per diluted common share.
Items Impacting Our Results include:
- During the three months ended December
31, 2024, the Company acquired three properties for an
aggregate purchase price of approximately $8.2 million. Upon acquisition, the properties
totaling approximately 38,000 square feet, were 100.0% leased in
the aggregate with lease expirations through 2029. These
acquisitions were funded with proceeds from the Company's Revolving
Credit Facility.
- During the three months ended December
31, 2024, the Company disposed of one property in
Texas and a land parcel adjacent
to a property in Georgia. The
Company received net proceeds of approximately $1.4 million and recognized an immaterial gain in
the aggregate on the dispositions.
- The Company has entered into a definitive purchase agreement
for a residential treatment campus consisting of five buildings
with an expected purchase price of approximately $9.5 million and an expected return of 9.5%. The
Company expects to close on this investment during the first
quarter of 2025; however, the Company cannot provide assurance as
to the timing of when, or whether, the transaction will actually
close.
- The Company also has seven properties under definitive purchase
agreements, to be acquired after completion and occupancy, for an
aggregate expected purchase price of approximately $169.5 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 first quarter
of 2025 with the remainder throughout 2025, 2026 and 2027; however,
the Company cannot provide assurance as to the timing of when, or
whether, these transactions will actually close.
- As previously announced, on October 16,
2024, the Company entered into a second amendment to the
third amended and restated credit agreement, which among other
things, (i) increased the Company's revolving credit facility to
$400.0 million, (ii) extended the
maturity date of the revolving credit facility to October 16, 2029, and (iii) lowered pricing on
the revolving credit facility by 10 to 30 basis points, depending
on the Company's leverage ratio.
- During the fourth quarter of 2024, the Company did not issue
any shares under its at-the-market offering program.
- On February 13, 2025, the
Company's Board of Directors declared a quarterly common stock
dividend in the amount of $0.4675 per
share. The dividend is payable on March 5,
2025 to stockholders of record on February 24, 2025.
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 December 31,
2024, the Company had investments of approximately
$1.2 billion in 200 real estate
properties (including a portion of one property accounted for as a
sales-type lease and two properties classified as held for sale).
The properties are located in 36 states, totaling approximately 4.4
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, and/or the
conflicts in Ukraine and 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, 2024, 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
CONSOLIDATED BALANCE
SHEETS
(Dollars and shares in thousands, except per
share amounts)
|
|
|
(Unaudited)
|
|
|
|
December 31,
2024
|
|
December 31,
2023
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Real estate
properties:
|
|
|
|
|
Land and land
improvements
|
$
149,501
|
|
$
136,532
|
|
Buildings,
improvements, and lease intangibles
|
996,104
|
|
913,416
|
|
Personal
property
|
326
|
|
299
|
|
Total real estate
properties
|
1,145,931
|
|
1,050,247
|
|
Less accumulated
depreciation
|
(242,609)
|
|
(200,810)
|
|
Total real estate
properties, net
|
903,322
|
|
849,437
|
|
Cash and cash
equivalents
|
4,384
|
|
3,491
|
|
Restricted
cash
|
—
|
|
1,142
|
|
Assets held for
sale
|
6,755
|
|
7,466
|
|
Other assets,
net
|
78,102
|
|
83,876
|
|
Total
assets
|
$
992,563
|
|
$
945,412
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Liabilities
|
|
|
|
|
Debt, net
|
$
485,955
|
|
$
403,256
|
|
Accounts payable and
accrued liabilities
|
14,289
|
|
12,032
|
|
Other liabilities,
net
|
16,354
|
|
16,868
|
|
Total
liabilities
|
516,598
|
|
432,156
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Preferred stock, $0.01
par value; 50,000 shares authorized; none issued and
outstanding
|
—
|
|
—
|
|
Common stock, $0.01
par value; 450,000 shares authorized; 28,242 and 27,613 shares
issued and outstanding at December 31, 2024 and
December 31, 2023, respectively
|
282
|
|
276
|
|
Additional paid-in
capital
|
704,524
|
|
688,156
|
|
Cumulative net
income
|
85,675
|
|
88,856
|
|
Accumulated other
comprehensive gain
|
17,631
|
|
16,417
|
|
Cumulative
dividends
|
(332,147)
|
|
(280,449)
|
|
Total stockholders'
equity
|
475,965
|
|
513,256
|
|
Total liabilities
and stockholders' equity
|
$
992,563
|
|
$
945,412
|
|
|
The Consolidated
Balance Sheets do not include all of the information and footnotes
required by accounting principles generally accepted in the United
States of America for complete financial statements.
|
|
COMMUNITY HEALTHCARE
TRUST INCORPORATED
CONSOLIDATED STATEMENTS OF
OPERATIONS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2024
AND 2023
(Unaudited; Dollars and shares in thousands,
except per share amounts)
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Rental
income
|
$
28,983
|
|
$
28,100
|
|
$
114,565
|
|
$
108,682
|
|
Other operating
interest, net
|
315
|
|
1,024
|
|
1,221
|
|
4,163
|
|
29,298
|
|
29,124
|
|
115,786
|
|
112,845
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
Property
operating
|
5,485
|
|
5,598
|
|
22,834
|
|
20,713
|
|
General and
administrative (1)
|
4,809
|
|
3,728
|
|
19,058
|
|
27,338
|
|
Depreciation and
amortization
|
10,797
|
|
10,248
|
|
42,778
|
|
39,693
|
|
21,091
|
|
19,574
|
|
84,670
|
|
87,744
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSE)
INCOME
|
|
|
|
|
|
|
|
|
Net gain on sale and
impairments of depreciable real estate assets
|
14
|
|
—
|
|
(121)
|
|
(102)
|
|
Interest
expense
|
(6,405)
|
|
(5,019)
|
|
(23,706)
|
|
(17,792)
|
|
Credit loss
reserve
|
—
|
|
—
|
|
(11,000)
|
|
—
|
|
Deferred income tax
expense
|
—
|
|
—
|
|
—
|
|
(306)
|
|
Interest and other
income, net
|
16
|
|
36
|
|
530
|
|
813
|
|
(6,375)
|
|
(4,983)
|
|
(34,297)
|
|
(17,387)
|
|
NET INCOME
(LOSS)
|
$
1,832
|
|
$
4,567
|
|
$
(3,181)
|
|
$
7,714
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
PER COMMON SHARE (1)
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share - Basic
|
$
0.04
|
|
$
0.15
|
|
$
(0.23)
|
|
$
0.20
|
|
Net income (loss) per
common share - Diluted
|
$
0.04
|
|
$
0.15
|
|
$
(0.23)
|
|
$
0.20
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING-
BASIC
|
26,682
|
|
25,981
|
|
26,530
|
|
25,202
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING-
DILUTED
|
26,682
|
|
25,981
|
|
26,530
|
|
25,202
|
|
|
(1) General
and administrative expenses for the twelve months ended
December 31, 2024 included stock-based compensation expense
totaling approximately $10.0 million. General and administrative
expenses for the twelve months ended December 31, 2023
included stock-based compensation expense totaling approximately
$20.0 million, including the accelerated amortization of
stock-based compensation totaling approximately $11.8 million,
recognized upon the passing of our former CEO and President in the
first quarter of 2023.
|
|
|
The Consolidated
Statements of Operations do not include all of the information and
footnotes required by accounting principles generally accepted in
the United States of America for complete financial
statements.
|
|
COMMUNITY HEALTHCARE
TRUST INCORPORATED
RECONCILIATION OF FFO and AFFO
(1)
(Unaudited;
Dollars and shares in thousands, except per share
amounts)
|
|
|
Three Months Ended
December 31,
|
|
2024
|
|
2023
|
|
Net income
|
$
1,832
|
|
$
4,567
|
|
Real
estate depreciation and amortization
|
10,927
|
|
10,347
|
|
Net gain on sale of
depreciable real estate assets
|
(14)
|
|
—
|
|
Total
adjustments
|
10,913
|
|
10,347
|
|
FFO
(1)
|
$
12,745
|
|
$
14,914
|
|
Straight-line rent
|
(712)
|
|
(872)
|
|
Stock-based compensation
|
2,597
|
|
2,029
|
|
AFFO
(1)
|
$
14,630
|
|
$
16,071
|
|
FFO per
Common Share-Diluted (1)
|
$
0.48
|
|
$
0.57
|
|
AFFO
per Common Share-Diluted (1)
|
$
0.55
|
|
$
0.61
|
|
Weighted Average Common
Shares Outstanding-Diluted (2)
|
26,786
|
|
26,346
|
|
|
|
(1)
|
Historical cost
accounting for real estate assets implicitly assumes that the value
of real estate assets diminishes predictably over time.
However, since real estate values have historically risen or fallen
with market conditions, many industry investors deem presentations
of operating results for real estate companies that use historical
cost accounting to be insufficient by themselves. For that reason,
the Company considers funds from operations ("FFO") and adjusted
funds from operations ("AFFO") to be appropriate measures of
operating performance of an equity real estate investment trust
("REIT"). In particular, the Company believes that AFFO is useful
because it allows investors, analysts and Company management to
compare the Company's operating performance to the operating
performance of other real estate companies and between periods on a
consistent basis without having to account for differences caused
by unanticipated items and other events.
The Company uses the
National Association of Real Estate Investment Trusts, Inc.
("NAREIT") definition of FFO. FFO is an operating performance
measure adopted by NAREIT. NAREIT defines FFO as the most commonly
accepted and reported measure of a REIT's operating performance
equal to net income (calculated in accordance with GAAP), excluding
gains or losses from the sale of certain real estate assets, gains
and losses from change in control, impairment write-downs of
certain real estate assets and investments in entities when the
impairment is directly attributable to decreases in the value of
depreciable real estate held by the entity, plus depreciation and
amortization related to real estate properties, and after
adjustments for unconsolidated partnerships and joint ventures.
NAREIT also provides REITs with an option to exclude gains, losses
and impairments of assets that are incidental to the main business
of the REIT from the calculation of FFO.
In addition to FFO, the
Company presents AFFO and AFFO per share. The Company defines AFFO
as FFO, excluding certain expenses related to closing costs of
properties acquired accounted for as business combinations and
mortgages funded, excluding straight-line rent and the amortization
of stock-based compensation, and including or excluding other
non-cash items from time to time. AFFO presented herein may not be
comparable to similar measures presented by other real estate
companies due to the fact that not all real estate companies use
the same definition.
FFO and AFFO should not
be considered as alternatives to net income (determined in
accordance with GAAP) as indicators of the Company's financial
performance or as alternatives to cash flow from operating
activities (determined in accordance with GAAP) as measures of the
Company's liquidity, nor are they necessarily indicative of
sufficient cash flow to fund all of the Company's needs. The
Company believes that in order to facilitate a clear understanding
of the consolidated historical operating results of the Company,
FFO and AFFO should be examined in conjunction with net income as
presented elsewhere herein.
|
|
(2)
|
Diluted weighted
average common shares outstanding for FFO and AFFO are calculated
based on the treasury method, rather than the 2-class method used
to calculate earnings per share.
|
CONTACT: Bill Monroe,
615-771-3052
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SOURCE Community Healthcare Trust Incorporated
