Earnings

Community Healthcare Trust Reports Higher Third-Quarter Profit, Holds Dividend Steady

The Tip Desk · November 10, 2026 · 3 min read

Funds from operations were $0.54 a share in the third quarter as revenue reached $32.44 million.

Community Healthcare Trust Incorporated (CHCT), a real estate investment trust focused on outpatient healthcare properties, reported revenue of $32.44 million and net income of $3.07 million, or $0.09 a share, for the three months ended September 30, 2026. Net income increased from $2.36 million, or $0.06 a share, in the prior quarter.

Funds from operations were $0.54 a share and adjusted funds from operations were $0.58 a share. On a year-over-year basis, the company said FFO per share increased $0.04, or 8.0%, and AFFO per share increased $0.02, or 3.6%.

Total revenue rose to $32.44 million from $31.22 million, a $1.2 million, or 4%, increase. Rental income was $32.19 million. Leased occupancy moved from 89.8% to 90.1% from the second quarter to the third.

Net operating income increased to $26.47 million from $25.36 million. EBITDAre rose to $22.29 million and adjusted EBITDAre to $24.19 million.

General and administrative expense declined $0.7 million, or 14.3%, to $4.19 million from $4.89 million. The company said net income and FFO were impacted by a $0.9 million reduction in deferred compensation expense versus the second quarter, generally due to fully amortized restricted stock awards and forfeited performance-based restricted stock units at June 30, 2026 totaling approximately $1.25 million, offset partially by about $0.4 million of additional amortization on awards granted in the third quarter.

The geriatric behavioral hospital operator, a tenant in six of the company’s properties, paid approximately $0.5 million in rent, an increase of approximately $0.2 million from the second quarter. The tenant signed a letter of intent in July 2025 to sell its business to a behavioral healthcare provider. The prospective buyer is finalizing due diligence and drafting definitive purchase agreements that include new leases for the six hospital properties. The company said it cannot provide assurance regarding the timing or certainty of the closing.

During the third quarter the company sold a property, received net proceeds of approximately $0.1 million, and recorded a $0.7 million loss on sale. Since the close of the second quarter it completed $32.3 million in property dispositions. Subsequent to September 30, it sold two more properties for net proceeds of approximately $31.5 million, which it said are expected to fund acquisitions through like-kind exchange under Section 1031 and general corporate purposes.

Funds available for distribution fell to $11.79 million from $12.99 million, after leasing commissions of $1.05 million, tenant improvements of $1.84 million, and recurring capital expenditures of $1.58 million.

Total real estate properties declined to $1.22 billion from $1.24 billion. Assets held for sale, net, were $22.59 million versus none in the second quarter. Net debt was $558.38 million and net debt to total capitalization was 43.6%. As of September 30, the company had investments of approximately $1.2 billion in 196 properties across 36 states, totaling approximately 4.5 million square feet.

Four properties remain under definitive purchase agreements for an aggregate expected price of approximately $99.0 million, with expected returns of 9.1% to 9.75%. The company now anticipates closing the first in the fourth quarter of 2026, a second in the first quarter of 2027, and the remaining two between mid-2027 and early 2028, versus a prior plan of one close in the third quarter of 2026 and another in the fourth quarter of 2026. It said it cannot provide assurance as to when, or whether, those transactions will close.

The company did not issue any shares under its ATM program in the third quarter. On November 3, 2026, the board declared a quarterly common stock dividend of $0.33 a share, payable November 25, 2026, the same amount as the prior quarter after the 31% reduction announced with second-quarter results.

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Community Healthcare Trust Inc — all coverage and financials