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Community Healthcare Trust (CHCT)
NYSE:CHCT
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Community Healthcare
(NYSE:CHCT)
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Rating:66Neutral
Price Target:
$17.00
▲(17.81% Upside)
Community Healthcare Trust's overall stock score is driven by strong technical momentum and a positive earnings call outlook, despite financial performance challenges and valuation concerns. The company's strategic acquisitions and high dividend yield are positive factors, but profitability issues and tenant challenges remain significant risks.
Community Healthcare (CHCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$453.83M
Dividend Yield12%
Average Volume (3M)272.48K
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth3.40%
EPS Growth-240.85%
CountryUS
Employees36
SectorN/A
Sector StrengthN/A
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.03
Shares Outstanding28,471,424
10 Day Avg. Volume316,807
30 Day Avg. Volume272,482
Financial Highlights & Ratios
PEG Ratio0.75
Price to Book (P/B)1.07
Price to Sales (P/S)4.40
P/FCF Ratio14.89
Enterprise Value/Market Cap2.08
Enterprise Value/Revenue7.92
Enterprise Value/Gross Profit9.82
Enterprise Value/Ebitda15.01
Forecast
1Y Price Target
$17.67Price Target Upside22.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Community Healthcare Business Overview & Revenue Model
Company DescriptionCommunity Healthcare (CHCT) is a leading provider of integrated healthcare services, focused on delivering high-quality medical care and support to communities across various sectors, including primary care, behavioral health, and preventive services. The company aims to enhance health outcomes by offering a comprehensive range of services, including outpatient care, telehealth consultations, and wellness programs, designed to address the diverse needs of its patient population.
How the Company Makes MoneyCommunity Healthcare generates revenue through multiple streams, primarily by billing for medical services provided to patients. This includes fees for consultations, treatments, and diagnostic services covered by private insurance, Medicare, and Medicaid. Additionally, CHCT earns revenue from wellness programs and preventive care initiatives, which are often funded through grants and partnerships with local governments and health organizations. The company may also engage in value-based care contracts, where it receives bonuses or incentives for meeting specific health outcomes. Strategic partnerships with pharmaceutical companies and technology firms may further enhance its revenue through collaborative programs and research initiatives.
Community Healthcare Earnings Call Summary
Earnings Call Date:Oct 28, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 17, 2026
Earnings Call Sentiment Neutral
The earnings call highlights indicate a positive outlook with growth in revenue and strategic acquisitions contributing to the company's performance. However, challenges such as decreased occupancy and issues with a tenant in the geriatric behavioral health segment pose risks. Despite these challenges, the company's proactive approach to capital recycling and dividend increases provide a balanced view.Q3-2025 Updates
Positive Updates
Revenue Growth
Total revenue grew from $29.6 million in Q3 2024 to $31.1 million in Q3 2025, representing a 4.9% annual growth.
Dividend Increase
The company declared a dividend for Q3 and raised it to $0.475 per common share, equating to an annualized dividend of $1.90 per share.
New Acquisition
Acquired one inpatient rehab facility for $26.5 million, with an anticipated annual return of approximately 9.4%.
Capital Recycling Program
The program is expected to close on the sale of an inpatient rehab hospital with an expected gain of approximately $11.5 million.
Leasing Activity
Expecting leased occupancy to increase by 50 to 100 basis points by year-end due to new leases signed.
Funds from Operations (FFO)
FFO in Q3 2025 was $13.5 million, a 5.7% increase year-over-year.
Negative Updates
Decrease in Occupancy
Occupancy decreased from 90.7% to 90.1% during the quarter.
Challenges with Geriatric Behavioral Hospital Tenant
The tenant paid only $200,000 in rent in the quarter compared to the expected $800,000.
Increased Interest Expense
Interest expense increased by approximately $500,000 quarter-over-quarter to $7.1 million in Q3 2025.
Company Guidance
During the 2025 third quarter earnings call, Community Healthcare Trust provided several key metrics and insights into its financial and operational performance. The company reported a total revenue increase of 4.9% year-over-year, reaching $31.1 million, while property operating expenses rose by approximately $300,000 quarter-over-quarter to $5.9 million. The weighted average lease term increased slightly from 6.6 to 6.7 years, and occupancy decreased from 90.7% to 90.1%. However, the leasing team has been active, with expectations for leased occupancy to rise by 50 to 100 basis points by year-end. The company completed a $26.5 million acquisition of an inpatient rehab facility, signing a new lease with an anticipated annual return of approximately 9.4%. Community Healthcare Trust also declared a quarterly dividend of $0.475 per share, marking an annualized dividend of $1.90 per share, and highlighted a robust acquisition pipeline with expected investments totaling $146 million. Additionally, the company engaged in a capital recycling program, generating approximately $700,000 from a third-quarter disposition, with further anticipated sales expected to yield $6.1 million in net proceeds. The company emphasized a strategy of maintaining leverage neutrality while funding acquisitions through asset sales and existing revolver capacity.Community Healthcare Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
55
Neutral
Cash Flow
70
Positive
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Community Healthcare Technical Analysis
Positive
14.43
Price Trends
14.72
Positive
14.61
Positive
15.09
Positive
Market Momentum
0.28
Negative
56.89
Neutral
72.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHCT, the sentiment is Positive. The current price of 14.43 is below the 20-day moving average (MA) of 15.54, below the 50-day MA of 14.72, and below the 200-day MA of 15.09, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 56.89 is Neutral, neither overbought nor oversold. The STOCH value of 72.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHCT.
Community Healthcare Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
75 Outperform | $174.63M | 21.44 | 52.29% | 4.62% | 29.76% | 22.76% | |
69 Neutral | $574.51M | 31.97 | 10.55% | 7.42% | 0.68% | -1.34% | |
67 Neutral | $1.28B | 32.83 | 2.77% | 6.92% | 3.74% | 77.82% | |
66 Neutral | $453.83M | -40.15 | -2.32% | 12.00% | 3.40% | -240.85% | |
58 Neutral | $1.24B | -3.37 | -18.84% | 0.81% | 4.10% | 8.96% | |
55 Neutral | $497.36M | -137.97 | 0.49% | 9.65% | 2.73% | -131.16% |
* Sector Average
CHCT
Community Healthcare
15.71
-0.56
-3.44%
DHC
Diversified Healthcare Trust
4.94
2.76
126.61%
GMRE
Global Medical REIT
34.19
-1.68
-4.68%
UHT
Universal Health Realty Income
39.74
5.17
14.96%
STRW
Strawberry Fields REIT Inc
13.00
2.89
28.59%
SILA
Sila Realty Trust, Inc.
23.12
0.00
0.00%
Community Healthcare Corporate Events
M&A TransactionsDividendsFinancial Disclosures
Community Healthcare Reports Q3 2025 Financial Results
Neutral
Oct 28, 2025
Community Healthcare Trust reported a net income of approximately $1.6 million for the third quarter ending September 30, 2025. During this period, the company acquired an inpatient rehabilitation facility in Florida for $26.5 million and disposed of a building in Pennsylvania, recognizing a loss of $0.2 million. The company is also engaged in several future acquisitions and sales, including a potential $11.5 million gain from an asset sale expected in the fourth quarter of 2025. Additionally, the company declared a quarterly dividend of $0.4750 per share, payable in November 2025.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.