three months ended September 30, 2026
Filed Nov 3, 2026Community Healthcare Trust Announces Results for the Three Months Ended September 30, 2026
Third-quarter revenue, net income, FFO per diluted share and AFFO per diluted share increased from the prior-year period, while leased occupancy improved sequentially and general and administrative expense declined sequentially. Results also included a loss on sale of real estate assets, higher interest expense year over year, and rent from a geriatric behavioral hospital operator whose prospective sale remains uncertain.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30GAAP | $32.44M | growth of $1.2 million or 4% | – |
| Rental income, three months ended September 30GAAP | $32.19M | – | – |
| Other operating interest, three months ended September 30GAAP | $250K | – | – |
| Property operating expense, three months ended September 30GAAP | $5.97M | – | – |
| General and administrative expense, three months ended September 30GAAP | $4.19M | decline of $0.7 million or 14.3% | – |
| Depreciation and amortization, three months ended September 30GAAP | $10.67M | – | – |
| Loss on sale and impairment of depreciable real estate assets, net of gains, three months ended September 30GAAP | −$1.04M | – | – |
| Interest expense, three months ended September 30GAAP | −$7.51M | – | – |
| Interest and other income, net, three months ended September 30GAAP | $13K | – | – |
| Net income, three months ended September 30GAAP | $3.07M | – | – |
| Net income per common share, basic and diluted, three months ended September 30GAAP | $0.09 | – | – |
| Weighted average common shares outstanding, basic and diluted, three months ended September 30GAAP | 27.07M | – | – |
| FFO, three months ended September 30non-GAAP | $14.96M | – | – |
| AFFO, three months ended September 30non-GAAP | $16.02M | – | – |
| FFO per common share-diluted, three months ended September 30non-GAAP | $0.54 | – | increased by $0.04 or 8.0% |
| AFFO per common share-diluted, three months ended September 30non-GAAP | $0.58 | – | increased by $0.02 or 3.6% |
| Weighted average common shares outstanding-diluted for FFO and AFFO, three months ended September 30non-GAAP | 27.74M | – | – |
| Total revenue, nine months ended September 30GAAP | $95.19M | – | – |
| Rental income, nine months ended September 30GAAP | $94.43M | – | – |
| Other operating interest, nine months ended September 30GAAP | $758K | – | – |
| Net income (loss), nine months ended September 30GAAP | $7.98M | – | – |
| Net income (loss) per common share, basic and diluted, nine months ended September 30GAAP | $0.22 | – | – |
| Weighted average common shares outstanding-basic and diluted, nine months ended September 30GAAP | 27.03M | – | – |
| Leased occupancy as of September 30, 2026other | 90.1% | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- 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 stockholders of record as of November 13, 2026.
- The quarterly common stock dividend amount is the same as the prior quarter.
- The Company did not issue any shares under its ATM program during the third quarter of 2026.
- Since the close of the second quarter of 2026, the Company completed $32.3 million in property dispositions.
- Subsequent to September 30, 2026, the Company sold two properties for net proceeds totaling approximately $31.5 million.
What drove it
- Total revenue grew by $1.2 million or 4% from the second quarter of 2026 to the third quarter of 2026.
- Leased occupancy increased from 89.8% to 90.1% from the second quarter of 2026 to the third quarter of 2026.
- General and administrative expense declined by $0.7 million or 14.3% sequentially.
- The decrease in deferred compensation expense was generally due to fully amortized restricted stock awards and forfeited performance-based restricted stock units at June 30, 2026 totaling approximately $1.25 million, partially offset by approximately $0.4 million of increased amortization from restricted stock awards and units granted during the third quarter of 2026.
- A geriatric behavioral hospital operator paid approximately $0.5 million in rent during the third quarter of 2026, an increase of approximately $0.2 million from the second quarter of 2026.
Concerns
- Loss on sale and impairment of depreciable real estate assets, net of gains, was $(1,039) (in thousands) in the third quarter of 2026.
- Interest expense was $(7,515) (in thousands) in the third quarter of 2026, compared with $(7,075) (in thousands) in the prior-year period.
- The geriatric behavioral hospital operator's prospective business sale is still subject to due diligence and definitive purchase agreements, and the Company cannot provide assurance on timing or closing certainty.
- The Company sold a property during the third quarter of 2026, received net proceeds of approximately $0.1 million, and recorded a $0.7 million loss on sale.
- Debt, net increased to $558,382 (in thousands) at September 30, 2026 from $532,199 (in thousands) at December 31, 2025.
What to watch
- Closing of four properties under definitive purchase agreements with an aggregate expected purchase price of approximately $99.0 million and expected returns of approximately 9.1% to 9.75%.
- The Company anticipates closing on the first property in the fourth quarter of 2026, a second in the first quarter of 2027, and the remaining two between mid-2027 and early 2028, although it cannot provide assurance on timing or closing.
- Deployment of approximately $31.5 million of subsequent property-sale proceeds into acquisitions through like-kind exchange under Section 1031 and for general corporate purposes.
- Rent collections and completion of the prospective transaction involving the geriatric behavioral hospital operator that is a tenant in six properties.
- Leased occupancy following the increase to 90.1% as of September 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $1,350 (in thousands) at September 30, 2026, compared with $3,340 (in thousands) at December 31, 2025.
- Debt, net was $558,382 (in thousands) at September 30, 2026, compared with $532,199 (in thousands) at December 31, 2025.
- Total assets were $1,000,411 (in thousands) at September 30, 2026, compared with $990,757 (in thousands) at December 31, 2025.
- Assets held for sale, net were $22,588 (in thousands) at September 30, 2026, compared with $5,265 (in thousands) at December 31, 2025.
- Total stockholders' equity was $413,440 (in thousands) at September 30, 2026, compared with $429,387 (in thousands) at December 31, 2025.
- Cash flow from operating activities and free cash flow were not reported.
Analysis
Community Healthcare Trust reported third-quarter GAAP revenue of $32,443 (in thousands), compared with $31,086 (in thousands) in the prior-year period. Rental income rose to $32,193 (in thousands) from $30,814 (in thousands). The company also reported total revenue growth of $1.2 million or 4% from the second quarter of 2026, alongside an increase in leased occupancy from 89.8% to 90.1%.
GAAP net income rose to $3,068 (in thousands), or $0.09 per diluted common share, from $1,640 (in thousands), or $0.03 per diluted common share. FFO increased to $14,960 (in thousands), or $0.54 per diluted share, from $13,547 (in thousands), or $0.50 per diluted share. AFFO increased to $16,017 (in thousands), or $0.58 per diluted share, from $15,099 (in thousands), or $0.56 per diluted share. The company stated that FFO per share increased by $0.04 or 8.0% year over year and AFFO per share increased by $0.02 or 3.6%.
Expense performance included a sequential $0.7 million or 14.3% decline in general and administrative expense. The company attributed a reduction in deferred compensation expense largely to approximately $1.25 million of fully amortized restricted stock awards and forfeited performance-based restricted stock units at June 30, 2026, partially offset by approximately $0.4 million of increased amortization for third-quarter grants. Property operating expense was $5,975 (in thousands), compared with $5,930 (in thousands) a year earlier, while interest expense increased to $(7,515) (in thousands) from $(7,075) (in thousands).
Real estate sales and tenant developments remain central to the period. The company recorded $(1,039) (in thousands) of loss on sale and impairment of depreciable real estate assets, net of gains, including a third-quarter property sale with approximately $0.1 million of net proceeds and a $0.7 million loss on sale. A behavioral hospital tenant in six properties paid approximately $0.5 million in rent, approximately $0.2 million more than in the second quarter, but the tenant's expected sale remains unclosed and uncertain.
Capital recycling continued after quarter-end, with two property sales generating approximately $31.5 million of net proceeds expected to fund acquisitions through like-kind exchange under Section 1031 and general corporate purposes. The company has four properties under definitive purchase agreements with an aggregate expected purchase price of approximately $99.0 million and expected returns of approximately 9.1% to 9.75%. Net debt was $558,382 (in thousands) at September 30, 2026, while cash and cash equivalents were $1,350 (in thousands). The Board maintained the quarterly common dividend at $0.33 per share.
Not in the filing
stated, not guessed- Financial revenue, gross margin, operating-expense, and tax-rate guidance were not provided.
- Previous-release outlook was not provided, so no comparison against prior guidance is available.
- Cash flow from operating activities was not reported.
- Free cash flow was not reported.
- Gross margin was not reported.
- Segment revenue was not reported.
- No named executive commentary or executive quotes were included.
- Prior-quarter absolute values were not reported for total revenue, general and administrative expense, leased occupancy, net income, FFO, or AFFO.
- A consolidated cash flow statement was not included.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.