FRANKLIN, Tenn., Oct. 31,
2023 /PRNewswire/ -- Community Healthcare Trust
Incorporated (NYSE: CHCT) (the "Company") today announced results
for the three months ended September 30, 2023. The
Company reported net income for the three months ended
September 30, 2023 of approximately $3.5 million, or $0.11 per diluted common share. Funds from
operations ("FFO") and adjusted funds from operations ("AFFO") for
the three months ended September 30, 2023 totaled $0.58 and $0.63,
respectively, per diluted common share.
Items Impacting Our Results include:
- During the three months ended September
30, 2023, the Company acquired seven real estate properties
for an aggregate purchase price of approximately $51.7 million. Upon acquisition, the properties
totaling approximately 177,000 square feet, were 99.8% leased in
the aggregate with lease expirations through 2038.
- Subsequent to September 30, 2023,
the Company acquired two medical office buildings in a single
transaction for an aggregate purchase price and cash consideration
of approximately $7.1 million. Upon
acquisition, the properties were 96.8% leased in the aggregate with
lease expirations through 2031. The acquisitions were funded with
proceeds from the Company's Revolving Credit Facility.
- The Company has seven properties under definitive purchase
agreements, to be acquired after completion and occupancy, for an
aggregate expected purchase price of approximately $166.5 million. The Company's expected returns on
these investments are approximately 9.1% to 9.75%. The Company
anticipates closing on these properties throughout 2024 and 2025;
however, the Company cannot provide assurance as to the timing of
when, or whether, these transactions will actually close.
- During the third quarter of 2023, the Company issued, through
its at-the-market offering program, 552,000 shares of common stock
at an average gross sales price of $32.93 per share for net proceeds of
approximately $17.8 million at an
approximate 5.61% current equity yield.
- On October 26, 2023, the
Company's Board of Directors declared a quarterly common stock
dividend in the amount of $0.455 per
share. The dividend is payable on November
24, 2023 to stockholders of record on November 9, 2023.
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 September 30, 2023, the Company
had investments of approximately $1.05
billion in 191 real estate properties (including a portion
of one property accounted for as a sales-type lease and one
property classified as held for sale). The properties are located
in 34 states, totaling approximately 4.2 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, the Company's ability to refinance existing
indebtedness at or prior to maturity on favorable terms, or at all,
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,
rising interest rates, supply chain disruptions, labor conditions,
the conflict between Russia and
Ukraine, and/or new and ongoing
hostilities between Israel and
Hamas, 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, 2022, 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 CONDENSED CONSOLIDATED BALANCE
SHEETS (Dollars and shares in thousands, except per
share amounts)
|
|
|
(Unaudited)
|
|
|
|
September 30,
2023
|
|
December 31,
2022
|
|
|
|
|
ASSETS
|
|
|
|
Real estate
properties:
|
|
|
|
Land and land
improvements
|
$
135,809
|
|
$
117,657
|
Buildings,
improvements, and lease intangibles
|
908,788
|
|
825,257
|
Personal
property
|
296
|
|
253
|
Total real estate
properties
|
1,044,893
|
|
943,167
|
Less accumulated
depreciation
|
(192,962)
|
|
(165,341)
|
Total real estate
properties, net
|
851,931
|
|
777,826
|
Cash and cash
equivalents
|
3,885
|
|
11,233
|
Restricted
cash
|
1,048
|
|
835
|
Other assets,
net
|
98,262
|
|
86,531
|
Total
assets
|
$
955,126
|
|
$
876,425
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Liabilities
|
|
|
|
Debt, net
|
$
401,192
|
|
$
352,997
|
Accounts payable and
accrued liabilities
|
15,446
|
|
11,377
|
Other liabilities,
net
|
16,194
|
|
15,237
|
Total
liabilities
|
432,832
|
|
379,611
|
|
|
|
|
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; 27,265 and 25,897
shares
issued and outstanding at September 30, 2023 and
December 31, 2022, respectively
|
273
|
|
259
|
Additional paid-in
capital
|
676,716
|
|
625,136
|
Cumulative net
income
|
84,289
|
|
81,142
|
Accumulated other
comprehensive gain
|
29,038
|
|
22,667
|
Cumulative
dividends
|
(268,022)
|
|
(232,390)
|
Total stockholders'
equity
|
522,294
|
|
496,814
|
Total liabilities
and stockholders' equity
|
$
955,126
|
|
$
876,425
|
|
|
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
INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30,
2023 AND 2022 (Unaudited; Dollars and shares in
thousands, except per share amounts)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Rental
income
|
$
27,690
|
|
$
23,919
|
|
$
80,582
|
|
$
69,720
|
Other operating
interest
|
1,045
|
|
888
|
|
3,139
|
|
2,617
|
|
28,735
|
|
24,807
|
|
83,721
|
|
72,337
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
Property
operating
|
5,456
|
|
4,327
|
|
15,115
|
|
12,480
|
General and
administrative (1)
|
3,618
|
|
3,762
|
|
23,610
|
|
10,688
|
Depreciation and
amortization
|
11,208
|
|
8,003
|
|
29,445
|
|
24,022
|
|
20,282
|
|
16,092
|
|
68,170
|
|
47,190
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES AND OTHER ITEMS
|
8,453
|
|
8,715
|
|
15,551
|
|
25,147
|
Impairment of real
estate asset
|
(102)
|
|
—
|
|
(102)
|
|
—
|
Interest
expense
|
(4,641)
|
|
(3,028)
|
|
(12,773)
|
|
(8,409)
|
Deferred
income tax
expense
|
(221)
|
|
(21)
|
|
(306)
|
|
(20)
|
Interest and other
income
|
3
|
|
7
|
|
777
|
|
63
|
NET
INCOME
|
$
3,492
|
|
$
5,673
|
|
$
3,147
|
|
$
16,781
|
|
|
|
|
|
|
|
|
NET INCOME PER
COMMON SHARE (1):
|
|
|
|
|
|
|
|
Net income per common
share – Basic
|
$
0.11
|
|
$
0.21
|
|
$
0.05
|
|
$
0.62
|
Net income per common
share – Diluted
|
$
0.11
|
|
$
0.21
|
|
$
0.05
|
|
$
0.62
|
WEIGHTED AVERAGE
COMMON SHARE OUTSTANDING-BASIC
|
25,514
|
|
23,587
|
|
24,940
|
|
23,578
|
WEIGHTED AVERAGE
COMMON SHARE OUTSTANDING-DILUTED
|
25,514
|
|
23,587
|
|
24,940
|
|
23,578
|
___________
|
|
|
|
|
|
|
(1) General
and administrative expenses for the nine months ended
September 30, 2023 included stock-based compensation expense
totaling
approximately $17.9 million, including the accelerated amortization
of stock-based compensation totaling approximately $11.8 million,
or
$0.47 per diluted common share, recognized upon the passing of our
former CEO and President during the first quarter of 2023. General
and
administrative expenses for the nine months ended
September 30, 2022 included stock-based compensation expense
totaling approximately
$6.8 million.
|
|
|
The Condensed
Consolidated Statements of Income 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,
|
|
2023
|
|
2022
|
Net income
|
$
3,492
|
|
$
5,673
|
Real
estate depreciation and amortization
|
11,375
|
|
8,078
|
Impairment
of real estate asset
|
102
|
|
—
|
Total
adjustments
|
11,477
|
|
8,078
|
FFO
|
$
14,969
|
|
$
13,751
|
Straight-line rent
|
(444)
|
|
(853)
|
Stock-based compensation
|
1,898
|
|
2,464
|
AFFO
|
$
16,423
|
|
$
15,362
|
FFO per
Common Share-Diluted
|
$
0.58
|
|
$
0.57
|
AFFO per
Common Share-Diluted
|
$
0.63
|
|
$
0.63
|
Weighted Average Common
Shares Outstanding-Diluted (2)
|
26,025
|
|
24,312
|
|
|
(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, Inc.