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Community Healthcare Trust (CHCT)
NYSE:CHCT
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Community Healthcare
(NYSE:CHCT)
Rating:55Neutral
Price Target:
$16.00
▲(4.30%Upside)
Positive Factors
Portfolio Growth
CHCT acquired a property for $9.7 million with a lease extending through 2040, showing growth in their property portfolio.
Tenant Payments
The company collected rent and interest of $200K from a previously problematic tenant, indicating a positive development.
Negative Factors
Tenant Payment Uncertainty
The company did not give any update regarding the uncertainty around collecting lease and interest payments from a tenant operating a geriatric inpatient behavioral hospital announced in 2Q.
Community Healthcare (CHCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$435.15M
Dividend Yield12.16%
Average Volume (3M)290.45K
Price to Earnings (P/E)―
Beta (1Y)0.65
Revenue Growth2.96%
EPS Growth-877.53%
CountryUS
Employees36
SectorReal Estate
Sector Strength56
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)-0.50
Shares Outstanding28,366,743
10 Day Avg. Volume356,292
30 Day Avg. Volume290,448
Financial Highlights & Ratios
PEG Ratio2.22
Price to Book (P/B)0.96
Price to Sales (P/S)0.00
P/FCF Ratio16.60
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit5.21
Enterprise Value/Ebitda1.23
Forecast
1Y Price Target
$20.00Price Target Upside30.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Community Healthcare Business Overview & Revenue Model
Company DescriptionCommunity 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. The Company had investments of approximately $667.3 million in 131 real estate properties as of September 30, 2020, located in 33 states, totaling approximately 2.8 million square feet.
How the Company Makes MoneyCommunity Healthcare Trust Incorporated makes money primarily through leasing its properties to healthcare service providers. The company generates revenue from rental income paid by tenants who operate medical facilities within CHCT's property portfolio. As a REIT, CHCT benefits from relatively stable and predictable income streams, as healthcare facilities typically have long-term leases. Additionally, the company's growth strategy includes acquiring new properties and increasing occupancy rates, further enhancing its revenue potential. Partnerships with healthcare providers and strategic property acquisitions are significant factors contributing to CHCT's earnings.
Community Healthcare Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: -5.60%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Community Healthcare Trust. While the company reported positive aspects such as a consistent increase in dividends, strategic acquisitions, and cost reductions, significant challenges were noted. The issues with the geriatric behavioral hospital tenant and related financial reversals, along with substantial severance costs, weighed heavily on the quarter's performance. Despite some positive developments, the challenges faced by the company are substantial.Q2-2025 Updates
Positive Updates
Dividend Increase
Declared a dividend for the second quarter and raised it to $0.4725 per common share, equating to an annualized dividend of $1.89 per share. The company has raised its dividend every quarter since its IPO.
Acquisition and Investment Plans
Acquired an inpatient rehabilitation facility for $26.5 million with an anticipated annual return of approximately 9.4%. Also signed definitive purchase and sale agreements for 6 properties with an expected investment of $146 million and returns ranging from 9.1% to 9.75%.
Cost Reduction
Property operating expenses decreased by approximately $500,000 quarter-over-quarter to $5.6 million, and general and administrative expense was reduced by $400,000 quarter-over-quarter when excluding onetime items.
Negative Updates
Geriatric Behavioral Hospital Tenant Issues
Tenant unable to pay full rent and interest, leading to a $1.7 million reversal of interest receivables and an $8.7 million credit loss reserve. Rent recognized on a cash basis only.
Severance and Transition Costs
Recorded a charge of $5.9 million for severance and transition-related expenses due to the departure of the former Executive Vice President of Asset Management.
Revenue Impact
Total revenue for the second quarter was $29.1 million, impacted by a $1.7 million reversal of interest receivables. Adjusted total revenue would have been $30.7 million, reflecting a 2.2% growth quarter-over-quarter.
Company Guidance
During the Community Healthcare Trust's 2025 second quarter conference call, several key financial metrics and business activities were discussed. The company's total revenue for the second quarter was $29.1 million but would have been approximately $30.7 million if not for a $1.7 million reversal of interest receivable from a geriatric behavioral hospital tenant. This same tenant also triggered an $8.7 million credit loss reserve on notes receivable. Despite these challenges, the company reported quarterly occupancy slightly decreasing from 90.9% to 90.7%, yet maintained strong leasing activity. No acquisitions occurred during the second quarter, though a $26.5 million purchase of an inpatient rehabilitation facility was finalized in July. The company has signed agreements for six additional properties, with an aggregate expected investment of $146 million and expected returns ranging from 9.1% to 9.75%. The company did not issue shares under its ATM program due to current share price considerations. Instead, it focuses on capital recycling and asset sales to fund acquisitions. General and administrative expenses were impacted by a $5.9 million charge related to severance and transition expenses. The quarterly dividend was raised to $0.4725 per share, marking a continued trend of dividend increases since the company's IPO.Community Healthcare Financial Statement Overview
Summary
Community Healthcare exhibits solid revenue growth and operational efficiency, though recent profitability challenges require attention. A debt-free balance sheet underscores financial resilience, while cash flows remain healthy but with areas for improvement in operational cash generation.Income Statement
The income statement shows a steady revenue growth trajectory with a recent dip in net income leading to a negative net profit margin. Gross and EBITDA margins remain robust, indicating operational efficiency. However, the sharp decrease in net income is a concern, impacting overall profitability.72
Positive
Balance Sheet
The balance sheet reveals a strong equity position with zero debt, highlighting financial stability. The equity ratio is healthy, ensuring lower financial leverage and risk. However, the reduction in stockholders' equity over the past year needs monitoring.85
Very Positive
Cash Flow
The cash flow statement shows strong free cash flow generation with a positive operating cash flow to net income ratio, despite net income turning negative. The free cash flow growth is commendable, but reduced operating cash flow compared to the previous year is a concern.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 118.80M | 115.79M | 112.84M | 97.68M | 90.58M | 75.68M |
| Gross Profit | 84.72M | 92.95M | 92.13M | 81.04M | 75.42M | 62.07M |
| EBITDA | 81.79M | 62.89M | 65.54M | 66.27M | 63.37M | 53.60M |
| Net Income | -7.38M | -3.18M | 7.71M | 22.02M | 22.49M | 19.08M |
Balance Sheet | ||||||
| Total Assets | 966.29M | 992.56M | 945.41M | 876.42M | 754.23M | 668.40M |
| Cash, Cash Equivalents and Short-Term Investments | 4.86M | 4.38M | 3.49M | 11.23M | 2.35M | 2.48M |
| Total Debt | 0.00 | 489.98M | 407.31M | 353.00M | 265.63M | 213.17M |
| Total Liabilities | 528.47M | 516.60M | 432.16M | 379.61M | 292.12M | 238.49M |
| Stockholders Equity | 437.82M | 475.96M | 513.26M | 496.81M | 462.11M | 429.92M |
Cash Flow | ||||||
| Free Cash Flow | 26.89M | 34.24M | 42.40M | 49.90M | 49.13M | 41.38M |
| Operating Cash Flow | 43.92M | 58.88M | 61.38M | 60.28M | 56.35M | 48.37M |
| Investing Cash Flow | -36.46M | -92.66M | -113.67M | -113.77M | -104.43M | -125.06M |
| Financing Cash Flow | -5.92M | 33.53M | 44.86M | 62.69M | 48.05M | 77.56M |
Community Healthcare Technical Analysis
Negative
15.34
Price Trends
16.56
Negative
16.57
Negative
17.17
Negative
Market Momentum
-0.28
Positive
33.24
Neutral
17.38
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHCT, the sentiment is Negative. The current price of 15.34 is below the 20-day moving average (MA) of 16.43, below the 50-day MA of 16.56, and below the 200-day MA of 17.17, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 33.24 is Neutral, neither overbought nor oversold. The STOCH value of 17.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHCT.
Community Healthcare Risk Analysis
Community Healthcare disclosed 84 risk factors in its most recent earnings report. Community Healthcare reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Community Healthcare Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.35B | 38.46 | 2.46% | 6.41% | -2.94% | 46.24% | |
67 Neutral | $126.82M | 17.29 | 36.40% | 5.40% | 22.41% | 37.88% | |
63 Neutral | $6.75B | 14.42 | -1.87% | 7.29% | 3.96% | -36.04% | |
59 Neutral | $489.66M | 215.65 | 1.45% | 11.56% | -1.66% | -86.24% | |
57 Neutral | $534.67M | 29.92 | 10.08% | 7.58% | 0.14% | -0.76% | |
55 Neutral | $435.15M | ― | -2.22% | 12.16% | 2.96% | -877.53% | |
53 Neutral | $788.89M | ― | -13.96% | 1.22% | 5.33% | 10.68% |
* Real Estate Sector Average
Performance Comparison
CHCT
Community Healthcare
15.34
-2.09
-11.99%
DHC
Diversified Healthcare Trust
3.27
0.21
6.86%
GMRE
Global Medical REIT
6.75
-1.50
-18.18%
UHT
Universal Health Realty Income
38.60
-0.19
-0.49%
STRW
Strawberry Fields REIT Inc
10.19
0.70
7.38%
SILA
Sila Realty Trust, Inc.
24.95
3.31
15.30%
Community Healthcare Corporate Events
M&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Community Healthcare Reports Q2 2025 Net Loss
Negative
Jul 29, 2025
Community Healthcare Trust reported a net loss of $12.6 million for the second quarter of 2025, with significant impacts from credit loss reserves and severance charges. The company made strategic acquisitions and disposals, including a behavioral specialty facility and an inpatient rehabilitation facility, and has six properties under purchase agreements, indicating ongoing expansion efforts. The company also declared a quarterly dividend, reflecting its commitment to shareholder returns.
The most recent analyst rating on (CHCT) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Community Healthcare stock, see the CHCT Stock Forecast page.
Executive/Board ChangesBusiness Operations and Strategy
Community Healthcare Appoints New Senior VP for Asset Management
Neutral
May 6, 2025
On May 1, 2025, Community Healthcare Trust Incorporated announced the termination of Timothy L. Meyer, Executive Vice President – Asset Management, effective May 31, 2025, with severance compensation and full vesting of equity awards. The company expects to record a charge of approximately $5.8 million for the quarter ended June 30, 2025, related to this separation. On May 6, 2025, the company announced the appointment of Mark E. Kearns as the new Senior Vice President – Asset Management, effective May 12, 2025. Mr. Kearns brings over 25 years of healthcare real estate experience, which is expected to enhance the company’s operational momentum and focus on portfolio leasing, management, and investment.
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.