FRANKLIN, Tenn., Oct. 29,
2024 /PRNewswire/ -- Community Healthcare Trust
Incorporated (NYSE: CHCT) (the "Company") today announced results
for the three months ended September 30, 2024. The
Company reported net income for the three months ended
September 30, 2024 of approximately $1.7 million, or $0.04 per diluted common share. Funds from
operations ("FFO") and adjusted funds from operations ("AFFO") for
the three months ended September 30, 2024 totaled $0.48 and $0.55,
respectively, per diluted common share.
Items Impacting Our Results include:
- During the three months ended September
30, 2024, the Company acquired one physician clinic for a
purchase price of approximately $6.2
million. Upon acquisition, the 20,400 square foot property
was 100.0% leased to a tenant with a lease expiration in 2027. This
acquisition was funded with proceeds from the Company's Revolving
Credit Facility.
- During the third quarter of 2024, the Company disposed of an
11,200 square foot surgical center in Texas, received net proceeds of approximately
$1.0 million, and recognized an
immaterial gain on sale.
- The Company has four properties under definitive purchase
agreements for an aggregate expected purchase price of
approximately $8.8 million. The
Company's expected returns on these investments range from 9.29% to
9.50%. The Company expects to close on these properties in the
fourth quarter of 2024; however, the Company cannot provide
assurance as to the timing of when, or whether, these transactions
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 these properties throughout 2025, 2026 and
2027; however, the Company cannot provide assurance as to the
timing of when, or whether, these transactions will actually
close.
- On October 16, 2024, the Company
entered into a second Amendment to the third amended and restated
credit agreement (the "Amended Credit Facility") with a syndicate
of lenders, under which Truist Bank serves as administrative agent.
The Amended Credit Facility, among other things, (i) increased the
Company's Revolving Credit Facility from $150.0 million to $400.0
million, (ii) extended the maturity date of the Revolving
Credit Facility from March 19, 2026
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. Proceeds from
the increased Revolving Credit Facility were used to repay the
existing A-3 Term Loan which was scheduled to mature on
March 29, 2026. In addition, amounts
outstanding under the Revolving Credit Facility prior to the second
Amendment will remain outstanding. Interest rate swaps previously
entered into to fix the interest rates on the A-3 Term Loan will
remain in place on the Revolving Credit Facility through their
maturity on March 29, 2026.
- During the third quarter of 2024, the Company did not issue any
shares under its at-the-market offering program.
- On October 24, 2024, the
Company's Board of Directors declared a quarterly common stock
dividend in the amount of $0.465 per
share. The dividend is payable on November
22, 2024 to stockholders of record on November 8, 2024.
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, 2024, the Company had investments of
approximately $1.1 billion in 198
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 35 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, 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,
changes in interest rates, supply chain disruptions, labor
conditions, the conflicts in Ukraine and the Middle East, and/or uncertainties related to
the 2024 U.S. presidential election, 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, 2023, 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)
|
|
|
|
September 30,
2024
|
|
December 31,
2023
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Real estate
properties:
|
|
|
|
|
Land and land
improvements
|
$
146,118
|
|
$
136,532
|
|
Buildings,
improvements, and lease intangibles
|
989,019
|
|
913,416
|
|
Personal
property
|
326
|
|
299
|
|
Total real estate
properties
|
1,135,463
|
|
1,050,247
|
|
Less accumulated
depreciation
|
(232,747)
|
|
(200,810)
|
|
Total real estate
properties, net
|
902,716
|
|
849,437
|
|
Cash and cash
equivalents
|
2,836
|
|
3,491
|
|
Restricted
cash
|
—
|
|
1,142
|
|
Real estate properties
held for sale
|
6,351
|
|
7,466
|
|
Other assets,
net
|
69,876
|
|
83,876
|
|
Total
assets
|
$
981,779
|
|
$
945,412
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Liabilities
|
|
|
|
|
Debt, net
|
$
473,716
|
|
$
403,256
|
|
Accounts payable and
accrued liabilities
|
14,422
|
|
12,032
|
|
Other liabilities,
net
|
16,489
|
|
16,868
|
|
Total
liabilities
|
504,627
|
|
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 September 30, 2024 and
December 31, 2023, respectively
|
282
|
|
276
|
|
Additional paid-in
capital
|
702,014
|
|
688,156
|
|
Cumulative net
income
|
83,843
|
|
88,856
|
|
Accumulated other
comprehensive gain
|
10,016
|
|
16,417
|
|
Cumulative
dividends
|
(319,003)
|
|
(280,449)
|
|
Total stockholders'
equity
|
477,152
|
|
513,256
|
|
Total liabilities
and stockholders' equity
|
$
981,779
|
|
$
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
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND
NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Unaudited;
Dollars and shares in thousands, except per share
amounts)
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Rental
income
|
$
29,335
|
|
$
27,690
|
|
$
85,582
|
|
$
80,582
|
|
Other operating
interest, net
|
304
|
|
1,045
|
|
906
|
|
3,139
|
|
29,639
|
|
28,735
|
|
86,488
|
|
83,721
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
Property
operating
|
5,986
|
|
5,456
|
|
17,349
|
|
15,115
|
|
General and
administrative (1)
|
4,935
|
|
3,618
|
|
14,249
|
|
23,610
|
|
Depreciation and
amortization
|
10,927
|
|
11,208
|
|
31,981
|
|
29,445
|
|
21,848
|
|
20,282
|
|
63,579
|
|
68,170
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSE)
INCOME
|
|
|
|
|
|
|
|
|
Gain on sale
(impairment) of depreciable real estate asset
|
5
|
|
(102)
|
|
(135)
|
|
(102)
|
|
Interest
expense
|
(6,253)
|
|
(4,641)
|
|
(17,301)
|
|
(12,773)
|
|
Credit loss
reserve
|
—
|
|
—
|
|
(11,000)
|
|
—
|
|
Deferred income tax
expense
|
—
|
|
(221)
|
|
—
|
|
(306)
|
|
Interest and other
income, net
|
206
|
|
3
|
|
514
|
|
777
|
|
(6,042)
|
|
(4,961)
|
|
(27,922)
|
|
(12,404)
|
|
NET INCOME
(LOSS)
|
$
1,749
|
|
$
3,492
|
|
$
(5,013)
|
|
$
3,147
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
PER COMMON SHARE (1)
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share - Basic
|
$
0.04
|
|
$
0.11
|
|
$
(0.27)
|
|
$
0.05
|
|
Net income (loss) per
common share - Diluted
|
$
0.04
|
|
$
0.11
|
|
$
(0.27)
|
|
$
0.05
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING-BASIC
|
26,660
|
|
25,514
|
|
26,479
|
|
24,940
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING-DILUTED
|
26,660
|
|
25,514
|
|
26,479
|
|
24,940
|
|
___________
|
|
|
|
|
|
|
|
(1) General
and administrative expenses for the nine months ended
September 30, 2024 included stock-based compensation expense
totaling approximately $7.4 million. 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, recognized upon
the passing of our former CEO and President in the first quarter of
2023.
|
|
|
The 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,
|
|
2024
|
|
2023
|
|
Net income
|
$
1,749
|
|
$
3,492
|
|
Real
estate depreciation and amortization
|
11,077
|
|
11,375
|
|
(Gain on sale)
impairment of depreciable real estate asset
|
(5)
|
|
102
|
|
Total
adjustments
|
11,072
|
|
11,477
|
|
FFO
(1)
|
$
12,821
|
|
$
14,969
|
|
Straight-line rent
|
(679)
|
|
(444)
|
|
Stock-based compensation
|
2,497
|
|
1,898
|
|
AFFO
(1)
|
$
14,639
|
|
$
16,423
|
|
FFO per
Common Share-Diluted (1)
|
$
0.48
|
|
$
0.58
|
|
AFFO
per Common Share-Diluted (1)
|
$
0.55
|
|
$
0.63
|
|
Weighted Average Common
Shares Outstanding-Diluted (2)
|
26,853
|
|
26,025
|
|
|
|
(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