Revenue Growth Year-over-Year
Total revenue increased from $29.3M in Q4 2024 to $30.9M in Q4 2025, representing 5.6% year-over-year growth.
FFO and AFFO Improvement
FFO rose to $13.3M in Q4 2025, a 4.6% increase year-over-year (FFO per diluted share $0.49 vs. $0.48). AFFO totaled $14.9M, a 2.1% year-over-year increase (AFFO per diluted share $0.55, flat year-over-year).
Substantial Net Gains on Sales / Capital Recycling
Net gains on sales totaled approximately $12.1M in Q4 2025; sale of an inpatient rehab facility at ~7.9% cap rate produced a gain of ~$11.5M and proceeds were reinvested via 1031 into a $28.5M inpatient rehab acquisition with an expected ~9.3% annual return.
Active Acquisition Pipeline and Recent Acquisitions
For the year the company acquired 3 properties (113,000 sq ft) for $64.5M, 100% leased with leases through 2040 and expected returns of 9.3%–9.5%. Signed definitive P&S agreements for 5 additional properties with aggregate expected investment of $122.5M and expected returns of 9.1%–9.75%.
Occupancy and Lease Term Trends
Portfolio occupancy increased from 90.1% to 90.6% in the quarter and weighted average lease term rose from 6.7 years to 7.0 years.
Dividend Raised Again
Declared Q4 dividend of $0.4775 per common share (annualized $1.91); the company has raised its dividend every quarter since IPO.
Lower Interest Expense from Rate Cuts
Interest expense decreased by approximately $100,000 quarter-over-quarter to $7.0M, attributed to recent FOMC rate cuts and lower floating rates on the revolver.
Redevelopment Projects Creating Embedded Growth
Three properties undergoing redevelopment/major renovations with long-term tenants; largest project expected complete Q2 2026 and rent to commence Q3 2026, providing embedded growth into 2026 results.