Community Healthcare Trust Reports Growth and Financial Stability for Q3 2026

Community Healthcare Trust Announces Q3 2026 Results

Community Healthcare Trust Incorporated (NYSE: CHCT) has recently revealed its financial performance for the third quarter of 2026, marking a significant step in its strategic execution. The company registered a net income of approximately $3.1 million for the three months ending September 30, resulting in earnings of $0.09 per diluted common share. Notably, the funds from operations (FFO) came in at $0.54 per diluted share, while adjusted funds from operations (AFFO) stood at $0.58 per diluted share.

Key Financial Highlights

The company's results underscore its effective implementation of a strategic plan announced in August 2026, demonstrating marked progress in operational and financial metrics. Comparing the second quarter of 2026 to the third, Community Healthcare Trust achieved an impressive revenue increase of $1.2 million, equivalent to a 4% growth rate. This progress was further evidenced by a rise in leased occupancy from 89.8% to 90.1%. Moreover, general and administrative expenses also saw a reduction, dropping by $0.7 million or 14.3%.

On a year-over-year basis, FFO per share experienced an uptick of $0.04 or 8.0%, with a 3.6% increase in AFFO per share contributing to the overall positive outlook for the company's financial health.

Dividend Declared

On November 3, 2026, the Board of Directors declared a quarterly common stock dividend of $0.33 per share, payable on November 25, 2026, to shareholders of record as of November 13, 2026. Importantly, this amount aligns with the dividend declared in the previous quarter, indicating a steady approach amidst changes in other financial metrics.

Factors Influencing Financial Performance

Several items affected the net income and FFO for the quarter, particularly a reduction in deferred compensation expense - noted as approximately $0.9 million in the third quarter compared to the preceding quarter. This decrease can be largely attributed to fully amortized restricted stock awards and forfeited performance-based restricted stock units from the previous quarter, while an increased amortization cost for awards granted recently partially offset these savings.

During this period, a significant tenant—an operator of a geriatric behavioral hospital across six of Community Healthcare Trust's properties—paid around $0.5 million in rent, which reflected a $0.2 million increase from the second quarter. This tenant had previously entered into a Letter of Intent (LOI) for the sale of its business to a behavioral healthcare provider, which is in the painstaking process of finalizing legal agreements, including leases concerning the mentioned properties. However, due to the complexities involved, the exact timing and surety of the closing remain uncertain.

Additionally, during the third quarter, the company sold one property but reported a net loss of $0.7 million from this transaction. Nonetheless, the company also holds four properties under definitive purchase agreements totaling an expected price of roughly $99 million. The anticipated returns on these investments range from 9.1% to 9.75%.

Expected timelines suggest the first of these acquisitions might close in the fourth quarter of 2026, with subsequent closures following in early 2027 and mid-2028.

Ongoing Capital Recycling Strategy

The company's capital recycling strategy remains proactive; following September 30, 2026, Community Healthcare Trust sold two properties, yielding approximately $31.5 million in net proceeds. These proceeds are earmarked for funding future acquisitions via like-kind exchanges and will also assist in general corporate purposes.

Conclusion

Community Healthcare Trust Incorporated continues to demonstrate resilience and adaptability in a rapidly evolving landscape. With its solid financial results for Q3 2026 and the ongoing execution of its Strategic Plan, the company is poised for robust growth moving forward. As it navigates market uncertainties and aligns its operations with strategic goals, community healthcare investment performance remains a focus area for shareholders and stakeholders alike.

For more detailed information about Community Healthcare Trust Incorporated’s operations and performance, visit www.chct.reit.