• Total Revenue: Increased from $28.7 million in Q3 2023 to $29.6 million in Q3 2024, a 3.1% annual growth.

• Property Operating Expenses: Increased by approximately $414,000 quarter-over-quarter to $6 million.

• General and Administrative Expenses: Increased slightly from $4.8 million in Q2 2024 to $4.9 million in Q3 2024.

• Interest Expense: Increased from $6 million in Q2 2024 to $6.3 million in Q3 2024.

• Funds From Operations (FFO): $12.8 million in Q3 2024, up from $11.6 million in Q2 2024; per diluted share increased from $0.43 to $0.48.

• Adjusted Funds From Operations (AFFO): $14.6 million in Q3 2024, up from $14.3 million in Q2 2024; per diluted share increased from $0.53 to $0.55.

• Dividend: Raised to $0.465 per common share, equating to an annualized dividend of $1.86 per share.

• Occupancy Rate: Decreased from 92.6% to 91.3% during the quarter.

• Weighted Average Remaining Lease Term: Decreased from 7.1 years to 6.8 years.

• Warning! GuruFocus has detected 8 Warning Signs with CHCT.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Community Healthcare Trust Inc (NYSE:CHCT) successfully increased its revolving credit facility from $150 million to $400 million, extended its maturity date by five years, and achieved lower pricing.

• The company reported a 3.1% annual growth in total revenue, increasing from $28.7 million in Q3 2023 to $29.6 million in Q3 2024.

• CHCT declared a dividend for the third quarter and raised it to $0.465 per common share, marking an annualized dividend of $1.86 per share.

• The company acquired one physician clinic for approximately $6.2 million with an expected return of 9.3%, and has four properties under definitive purchase agreements with expected returns ranging from 9.29% to 9.5%.

• CHCT's funds from operations (FFO) increased from $11.6 million in Q2 2024 to $12.8 million in Q3 2024, with FFO per diluted common share rising from $0.43 to $0.48.

Negative Points

• Occupancy decreased from 92.6% to 91.3% during the quarter due to lease terminations and expirations.

• The weighted average remaining lease term decreased slightly from 7.1 years to 6.8 years.

• The company is not yet receiving rent and interest from a geriatric psychiatric hospital operator, a tenant in six properties, representing a base rent of $3.2 million.

• Interest expense increased from $6 million in Q2 2024 to $6.3 million in Q3 2024 due to increased borrowings under the revolving credit facility.

• Despite having access to its ATM, CHCT did not sell equity due to a depressed share price, indicating potential challenges in raising capital through equity markets.