Community Healthcare Trust (CHCT) Q1 2026 earnings summary

Executive summary

• Total revenue for Q1 2026 grew 4.8% year-over-year to $31.5 million, driven by acquisitions and higher property operating expense recoveries.

• Net income for Q1 2026 was $2.5 million ($0.07 per diluted share), up from $1.6 million in Q1 2025.

• Portfolio includes 198 healthcare properties in 36 states, totaling 4.5 million sq. ft., 89.8% leased, with a weighted average lease term of 7.2 years.

• Acquired an inpatient rehabilitation facility for $28.5 million with a 9.3% cash yield and disposed of one property for $5.2 million.

• Four properties are under definitive purchase agreements for $99 million, expected to close in 2026–2027 with anticipated returns of 9.1%–9.75%.

Financial highlights

• Rental income rose 5.2% year-over-year to $31.3 million; total revenues reached $31.5 million.

• Net income increased to $2.5 million from $1.6 million year-over-year.

• FFO was $13.4 million ($0.49 per share), and AFFO was $15.4 million ($0.56 per share), both up year-over-year.

• Dividend declared at $0.48 per share for Q2 2026, annualized at $1.92 per share.

• Debt outstanding was $559.3 million as of March 31, 2026, with $285 million on the revolving credit facility.

Outlook and guidance

• Leasing activity is expected to drive occupancy growth in the next quarter.

• AFFO growth anticipated in the second half of 2026 as redevelopment projects come online.

• Four properties under contract for $99 million, with closings anticipated throughout 2026 and 2027.

• Interest expense projected to increase in Q2 2026 due to higher revolver balances and hedge expirations.

• No assurance on timing or certainty of pending acquisitions.