Community Healthcare Trust Announces Results for the Three Months Ended September 30, 2025

COMMUNITY HEALTHCARE TRUST INCORPORATED

CONSOLIDATED BALANCE SHEETS

(Dollars and shares in thousands, except per share amounts)

(Unaudited)

September 30, 2025

December 31, 2024

ASSETS

Real estate properties:

Land and land improvements

$                     154,272

$                 149,501

Buildings, improvements, and lease intangibles

1,035,070

996,104

Personal property

809

326

Total real estate properties

1,190,151

1,145,931

Less accumulated depreciation

(272,481)

(242,609)

Total real estate properties, net

917,670

903,322

Cash and cash equivalents

3,383

4,384

Assets held for sale

6,205

6,755

Other assets, net

60,003

78,102

Total assets

$                     987,261

$                 992,563

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Debt, net

$                     530,138

$                 485,955

Accounts payable and accrued liabilities

17,205

14,289

Other liabilities, net

13,095

16,354

Total liabilities

560,438

516,598

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; 28,471 and 28,242 shares

issued and outstanding at September 30, 2025 and December 31, 2024, respectively

285

282

Additional paid-in capital

714,890

704,524

Cumulative net income

76,349

85,675

Accumulated other comprehensive gain

7,568

17,631

Cumulative dividends

(372,269)

(332,147)

Total stockholders' equity

426,823

475,965

Total liabilities and stockholders' equity

$                     987,261

$                 992,563

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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(Unaudited; Dollars and shares in thousands, except per share amounts)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

REVENUES

Rental income

$          30,814

$          29,335

$          90,672

$          85,582

Other operating interest

272

304

(423)

906

31,086

29,639

90,249

86,488

EXPENSES

Property operating

5,930

5,986

17,610

17,349

General and administrative ⁽¹⁾

4,658

4,935

20,317

14,249

Depreciation and amortization

10,902

10,927

32,724

31,981

21,490

21,848

70,651

63,579

OTHER (EXPENSE) INCOME

(Loss) Gains on sale and impairments of real estate assets

(888)

5

(248)

(135)

Interest expense

(7,075)

(6,253)

(20,019)

(17,301)

Credit loss reserve

—

—

(8,672)

(11,000)

Interest and other income, net

7

206

15

514

(7,956)

(6,042)

(28,924)

(27,922)

NET INCOME (LOSS)

$            1,640

$            1,749

$          (9,326)

$          (5,013)

NET INCOME (LOSS) PER COMMON SHARE

Net income (loss) per common share - Basic

$              0.03

$              0.04

$            (0.43)

$            (0.27)

Net income (loss) per common share - Diluted

$              0.03

$              0.04

$            (0.43)

$            (0.27)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-BASIC

26,934

26,660

26,824

26,479

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-DILUTED

26,934

26,660

26,824

26,479

⁽¹⁾ General and administrative expenses for the nine months ended September 30, 2025, included severance and transition-related expenses totaling $1.3 million related to a termination in the second quarter of 2025. Non-cash stock-based compensation expense for the three and nine months ended September 30, 2025 totaled $2.5 million and $12.3 million. respectively. Non-cash stock-based compensation expense for the nine months ended September 30, 2025 included accelerated amortization of $4.6 million related to the termination in the second quarter of 2025. Non-cash stock-based compensation  expense for the three and nine months ended September 30, 2024 totaled $2.5 million and $7.4 million, respectively.

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 September 30,

2025

2024

Net income

$                    1,640

$                    1,749

   Real estate depreciation and amortization

11,019

11,077

Loss (Gains) on sale and impairments of real estate assets

888

(5)

   Total adjustments

11,907

11,072

FFO ⁽¹⁾⁽²⁾

$                  13,547

$                  12,821

   Straight-line rent

(913)

(679)

   Stock-based compensation

2,465

2,497

AFFO ⁽¹⁾⁽²⁾

$                  15,099

$                  14,639

   FFO per Common Share-Diluted ⁽¹⁾⁽²⁾

$                      0.50

$                      0.48

   AFFO per Common Share-Diluted ⁽¹⁾⁽²⁾

$                      0.56

$                      0.55

Weighted Average Common Shares Outstanding-Diluted ⁽²⁾

27,195

26,853

(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. Restricted stock awards and time-based RSUs are included in the calculation of weighted average common shares outstanding to the extent that they are dilutive. Performance-based RSUs are included in the calculation of weighted average common shares outstanding to the extent that they are in-the-money as of the end of the reporting period and are dilutive.