Community Healthcare Trust Incorporated

What they do

CHCT acquires and owns healthcare real estate and leases it to hospitals, physicians, healthcare systems and other service providers under long-term net leases. As of December 31, 2025 it had roughly $1.2 billion of gross investments in 198 properties totaling about 4.5 million square feet with a weighted average remaining lease term of 7.0 years. The portfolio is diversified by property type (medical office buildings, inpatient rehabilitation, behavioral, specialty centers, physician clinics) and no tenant exceeded 10% of annualized rent.

Revenue drivers

• Medical Office Buildings (MOB) — 93 properties, the largest segment at 36.0% of annualized rent; rented to physician practices and health systems under long-term leases.
• Inpatient Rehabilitation Facilities (IRF) — 10 properties contributing 21.2% of annualized rent, the second-largest and highest-rent-per-property category.
• Acute Inpatient Behavioral and Behavioral Specialty — 5 acute inpatient behavioral properties (12.6% of annualized rent) plus 13 behavioral specialty facilities (7.1%), a combined behavioral health exposure of roughly one-fifth of rent.
• Specialty, Physician Clinics, Surgical and LTACH — 36 specialty centers (8.9%), 33 physician clinics (8.2%), 6 surgical centers/hospitals (4.0%) and 2 long-term acute care hospitals (2.0%) round out the portfolio.

Recent performance

Annual revenue grew from $90.6M in 2021 to $121.2M in 2025, though net income was volatile, falling to a $3.2M loss in 2024 before recovering to $5.1M in 2025. Diluted EPS was $0.08 in 2025 versus $0.20 in 2023 and a loss of $0.23 in 2024. Second quarter 2026 revenue was $31.2M with net income of $2.4M ($0.06 per diluted share), and NOI of $25.4M. Same recent quarters show stability: revenue was $31.5M in 1Q 2026, $30.9M in 4Q 2025 and $31.1M in 3Q 2025. The company paid a quarterly dividend of $0.48 per share in 2Q 2026 and reported a 10.5% dividend yield at a $18.28 quarter-end stock price.

Strategy

CHCT grows by acquiring healthcare properties that are typically pre-leased to providers; in the first quarter of 2026 it acquired one inpatient rehabilitation facility of about 37,151 square feet for roughly $28.5M, 100% leased through 2044, funded with revolver borrowings and asset-sale proceeds. It has four properties under definitive purchase agreements for an expected aggregate purchase price of about $99.0M, to be acquired after completion and occupancy, with one expected to close in the third quarter of 2026, one in the fourth quarter of 2026 and two in 2027. Management expects to fund these with cash from operations and net proceeds from equity or debt. Portfolio occupancy is 89.8% as of 2Q 2026 with 7.2 years of weighted average remaining lease term, and the company is also a seller of assets, with one property classified as held for sale at year-end 2025.

Risks

• Tenant concentration and credit — Although no tenant exceeded 10% of annualized rent as of December 31, 2025, the largest tenants were US Healthvest at 7.3% and Lifepoint Health at 6.4%, so a major tenant bankruptcy or non-renewal could harm results.
• Geographic concentration — 26.7% of annualized rent came from Texas (14.3%) and Florida (12.4%) as of December 31, 2025, exposing the company to downturns in those local markets.
• Healthcare regulatory and tenant risk — Tenants face significant regulatory oversight, and changes in laws or reimbursement affecting providers could impair their ability to pay rent.
• Acquisition and capital markets risk — Growth depends on identifying and closing acquisitions at fair prices, and the company cites availability and terms of debt and equity capital and interest-rate volatility as risks.

Outlook

Management does not provide guidance in the excerpted materials, but states it has four properties under definitive purchase agreements for an expected aggregate price of about $99.0M, with closings expected in the third and fourth quarters of 2026 and the remainder in 2027. The company cautions it cannot assure the timing or completion of those transactions. It expects to fund acquisitions with cash from operations and net proceeds from equity or debt, while continuing to manage a portfolio that was 89.8% leased at June 30, 2026.