FRANKLIN, Tenn., Feb. 13,
2024 /PRNewswire/ -- Community Healthcare Trust
Incorporated (NYSE: CHCT) (the "Company") today announced results
for the three months ended December 31, 2023. The Company
reported net income for the three months ended December 31,
2023 of approximately $4.6 million,
or $0.15 per diluted common share.
Funds from operations ("FFO") and adjusted funds from operations
("AFFO") for the three months ended December 31, 2023 totaled
$0.57 and $0.61, respectively, per diluted common
share.
Items Impacting Our Results include:
- During the three months ended December
31, 2023, the Company acquired two real estate properties
for an aggregate purchase price of approximately $7.1 million. Upon acquisition, the properties
totaling approximately 48,000 square feet, were 97.5% leased in the
aggregate with lease expirations through 2031.
- Subsequent to December 31, 2023,
the Company acquired one long term acute care hospital (LTACH) for
a purchase price of approximately $6.5
million and cash consideration of approximately $6.6 million. Upon acquisition, the property was
100.0% leased with a lease expiration in 2039. The acquisition was
funded with proceeds from the Company's Revolving Credit
Facility.
- The Company has three properties under definitive purchase
agreements for an expected aggregate purchase price of
approximately $27.9 million. The
Company's expected aggregate return on these investments ranges
from approximately 9.08% to 9.20%. The Company expects to close on
these properties during the first half of 2024; however, the
Company cannot provide assurance as to the timing of when, or
whether, these transactions will actually close.
- The Company has seven properties under definitive purchase
agreements, to be acquired after completion and occupancy, for an
aggregate expected purchase price of approximately $166.5 million. The Company's expected returns on
these investments are approximately 9.1% to 9.75%. The Company
anticipates closing on two of these properties in 2024 with the
remainder throughout 2025 and 2026; however, the Company cannot
provide assurance as to the timing of when, or whether, these
transactions will actually close.
- During the fourth quarter of 2023, the Company issued, through
its at-the-market offering program, approximately 348,000 shares of
common stock at an average gross sales price of $27.73 per share for net proceeds of
approximately $9.5 million at an
approximate 6.70% current equity yield.
- The Company has one property under a definitive sale agreement.
The sales price less estimated costs to sell exceed the carrying
value of the property. The Company expects to close on this
property during the second or third quarter of 2024; however, the
Company cannot provide assurance as to the timing of when, or
whether, this transaction will actually close.
- To provide an update on the bankruptcy with one of the
Company's tenants, on November 22,
2023, GenesisCare had its disclosure statement and plan of
reorganization approved by the U.S. Bankruptcy Court. As part of
their plan of reorganization, GenesisCare is expected to assume or
assign to buyers all of the Company's remaining leases with no
material changes to the lease terms. The effective date of the plan
of reorganization is expected to be during the first quarter of
2024; however, GenesisCare already closed on the assignment of two
of the Company's leases during January
2024 with two separate buyers. GenesisCare has met
substantially all of its lease payment obligations due to the
Company through February 2024.
- On February 8, 2024, the
Company's Board of Directors declared a quarterly common stock
dividend in the amount of $0.4575 per
share. The dividend is payable on March 1,
2024 to stockholders of record on February 20, 2024.
About Community Healthcare Trust
Incorporated
Community 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. As of
December 31, 2023, the Company had investments of
approximately $1.1 billion in 193
real estate properties (including a portion of one property
accounted for as a sales-type lease and two properties classified
as held for sale). The properties are located in 34 states,
totaling approximately 4.3 million square feet in the
aggregate.
Additional information regarding the Company, including this
quarter's operations, can be found at www.chct.reit. Please contact
the Company at 615-771-3052 to request a printed copy of this
information.
Cautionary Note Regarding Forward-Looking
Statements
In addition to the historical information
contained within, the matters discussed in this press release may
contain "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements are generally identifiable
by use of forward-looking terminology such as "believes",
"expects", "may", "will," "should", "seeks", "approximately",
"intends", "plans", "estimates", "anticipates" or other similar
words or expressions, including the negative thereof.
Forward-looking statements are based on certain assumptions and can
include future expectations, future plans and strategies, financial
and operating projections or other forward-looking information.
Such forward-looking statements reflect management's current
beliefs and are based on information currently available to
management. Because forward-looking statements relate to future
events, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of the control of Community Healthcare Trust
Incorporated (the "Company"). Thus, the Company's actual results
and financial condition may differ materially from those indicated
in such forward-looking statements. Some factors that might cause
such a difference include the following: general volatility of the
capital markets and the market price of the Company's common stock,
changes in the Company's business strategy, availability, terms and
deployment of capital, the Company's ability to refinance existing
indebtedness at or prior to maturity on favorable terms, or at all,
changes in the real estate industry in general, interest rates or
the general economy, adverse developments related to the healthcare
industry, changes in governmental regulations, the degree and
nature of the Company's competition, the ability to consummate
acquisitions under contract, catastrophic or extreme weather and
other natural events and the physical effects of climate change,
the occurrence of cyber incidents, effects on global and national
markets as well as businesses resulting from increased inflation,
rising interest rates, supply chain disruptions, labor conditions,
the conflict between Russia and
Ukraine, and/or new and ongoing
hostilities between Israel and
Hamas, and the other factors described in the section entitled
"Risk Factors" in the Company's Annual Report on Form 10-K for the
year ended December 31, 2023, and the
Company's other filings with the Securities and Exchange Commission
from time to time. Readers are therefore cautioned not to place
undue reliance on the forward-looking statements contained herein
which speak only as of the date hereof. The Company intends these
forward-looking statements to speak only as of the time of this
press release and undertakes no obligation to update
forward-looking statements, whether as a result of new information,
future developments, or otherwise, except as may be required by
law.
COMMUNITY HEALTHCARE
TRUST INCORPORATED
CONSOLIDATED BALANCE
SHEETS
(Dollars and
shares in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
|
|
|
ASSETS
|
|
|
|
Real estate
properties:
|
|
|
|
Land and land
improvements
|
$
136,532
|
|
$
117,657
|
Buildings,
improvements, and lease intangibles
|
913,416
|
|
825,257
|
Personal
property
|
299
|
|
253
|
Total real estate
properties
|
1,050,247
|
|
943,167
|
Less accumulated
depreciation
|
(200,810)
|
|
(165,341)
|
Total real estate
properties, net
|
849,437
|
|
777,826
|
Cash and cash
equivalents
|
3,491
|
|
11,233
|
Restricted
cash
|
1,142
|
|
835
|
Real estate properties
held for sale
|
7,466
|
|
—
|
Other assets,
net
|
83,876
|
|
86,531
|
Total
assets
|
$
945,412
|
|
$
876,425
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Liabilities
|
|
|
|
Debt, net
|
$
403,256
|
|
$
352,997
|
Accounts payable and
accrued liabilities
|
12,032
|
|
11,377
|
Other liabilities,
net
|
16,868
|
|
15,237
|
Total
liabilities
|
432,156
|
|
379,611
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Preferred stock, $0.01
par value; 50,000 shares authorized; none issued and
outstanding
|
—
|
|
—
|
Common stock, $0.01
par value; 450,000 shares authorized; 27,613 and 25,897 shares
issued and outstanding at December 31, 2023 and
December 31, 2022, respectively
|
276
|
|
259
|
Additional paid-in
capital
|
688,156
|
|
625,136
|
Cumulative net
income
|
88,856
|
|
81,142
|
Accumulated other
comprehensive gain
|
16,417
|
|
22,667
|
Cumulative
dividends
|
(280,449)
|
|
(232,390)
|
Total stockholders'
equity
|
513,256
|
|
496,814
|
Total liabilities
and stockholders' equity
|
$
945,412
|
|
$
876,425
|
The Consolidated
Balance Sheets do not include all of the information and footnotes
required by accounting principles generally accepted in
the United States of America for complete financial
statements.
|
COMMUNITY HEALTHCARE
TRUST INCORPORATED
CONSOLIDATED
STATEMENTS OF INCOME
FOR THE THREE
AND TWELVE MONTHS ENDED MONTHS ENDED DECEMBER 31, 2023
AND 2022
( Dollars and
shares in thousands, except per share amounts)
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Rental
income
|
$
28,100
|
|
$
24,383
|
|
$ 108,682
|
|
$
94,103
|
Other operating
interest
|
1,024
|
|
959
|
|
4,163
|
|
3,576
|
|
29,124
|
|
25,342
|
|
112,845
|
|
97,679
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
Property
operating
|
5,598
|
|
4,156
|
|
20,713
|
|
16,636
|
General and
administrative (1)
|
3,728
|
|
4,149
|
|
27,338
|
|
14,837
|
Depreciation and
amortization
|
10,248
|
|
8,317
|
|
39,693
|
|
32,339
|
|
19,574
|
|
16,622
|
|
87,744
|
|
63,812
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
Impairment of real
estate asset
|
—
|
|
—
|
|
(102)
|
|
—
|
Interest
expense
|
(5,019)
|
|
(3,464)
|
|
(17,792)
|
|
(11,873)
|
Deferred income tax
expense
|
—
|
|
(21)
|
|
(306)
|
|
(41)
|
Interest and other
income, net
|
36
|
|
3
|
|
813
|
|
66
|
|
(4,983)
|
|
(3,482)
|
|
(17,387)
|
|
(11,848)
|
NET
INCOME
|
$
4,567
|
|
$
5,238
|
|
$
7,714
|
|
$
22,019
|
|
|
|
|
|
|
|
|
NET INCOME PER
COMMON SHARE (1):
|
|
|
|
|
|
|
|
Net Income per common
share - Basic
|
$
0.15
|
|
$
0.19
|
|
$
0.20
|
|
$
0.81
|
Net Income per common
share - Diluted
|
$
0.15
|
|
$
0.19
|
|
$
0.20
|
|
$
0.81
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING-BASIC
|
25,981
|
|
23,787
|
|
25,202
|
|
23,631
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING-DILUTED
|
25,981
|
|
23,787
|
|
25,202
|
|
23,631
|
___________
|
|
|
|
|
|
|
(1) General
and administrative expenses for the twelve months ended
December 31, 2023 included stock-based compensation
expense
totaling approximately $20.0 million, including the accelerated
amortization of stock-based compensation totaling approximately
$11.8
million, or $0.47 per diluted common share, recognized upon the
passing of our former CEO and President. General and
administrative
expenses for the twelve months ended December 31, 2022
included stock-based compensation expense totaling approximately
$9.4 million.
|
The Consolidated
Statements of Income do not include all of the information and
footnotes required by accounting principles generally
accepted in the United States of America for complete financial
statements.
|
COMMUNITY HEALTHCARE
TRUST INCORPORATED
RECONCILIATION OF
FFO and AFFO (1)
(Unaudited;
Dollars and shares in thousands, except per share
amounts)
|
|
|
|
Three Months Ended
December 31,
|
|
2023
|
|
2022
|
Net income
|
$
4,567
|
|
$
5,238
|
Real
estate depreciation and amortization
|
10,347
|
|
8,382
|
Total
adjustments
|
10,347
|
|
8,382
|
FFO
|
$
14,914
|
|
$
13,620
|
Straight-line rent
|
(872)
|
|
(854)
|
Stock-based compensation
|
2,029
|
|
2,645
|
AFFO
|
$
16,071
|
|
$
15,411
|
FFO per
Common Share-Diluted
|
$
0.57
|
|
$
0.56
|
AFFO
per Common Share-Diluted
|
$
0.61
|
|
$
0.63
|
Weighted Average Common
Shares Outstanding-Diluted (2)
|
26,346
|
|
24,471
|
(1)
|
Historical cost
accounting for real estate assets implicitly assumes that the value
of real estate assets diminishes predictably over time.
However, since real estate values have historically risen or fallen
with market conditions, many industry investors deem presentations
of operating results for real estate companies that use historical
cost accounting to be insufficient by themselves. For that reason,
the Company considers funds from operations ("FFO") and adjusted
funds from operations ("AFFO") to be appropriate measures of
operating performance of an equity real estate investment trust
("REIT"). In particular, the Company believes that AFFO is useful
because it allows investors, analysts and Company management to
compare the Company's operating performance to the operating
performance of other real estate companies and between periods on a
consistent basis without having to account for differences caused
by unanticipated items and other events.
The Company uses the
National Association of Real Estate Investment Trusts, Inc.
("NAREIT") definition of FFO. FFO is an operating performance
measure adopted by NAREIT. NAREIT defines FFO as the most commonly
accepted and reported measure of a REIT's operating performance
equal to net income (calculated in accordance with GAAP), excluding
gains or losses from the sale of certain real estate assets, gains
and losses from change in control, impairment write-downs of
certain real estate assets and investments in entities when the
impairment is directly attributable to decreases in the value of
depreciable real estate held by the entity, plus depreciation and
amortization related to real estate properties, and after
adjustments for unconsolidated partnerships and joint ventures.
NAREIT also provides REITs with an option to exclude gains, losses
and impairments of assets that are incidental to the main business
of the REIT from the calculation of FFO.
In addition to FFO, the
Company presents AFFO and AFFO per share. The Company defines AFFO
as FFO, excluding certain expenses related to closing costs of
properties acquired accounted for as business combinations and
mortgages funded, excluding straight-line rent and the amortization
of stock-based compensation, and including or excluding other
non-cash items from time to time. AFFO presented herein may not be
comparable to similar measures presented by other real estate
companies due to the fact that not all real estate companies use
the same definition.
FFO and AFFO should not
be considered as alternatives to net income (determined in
accordance with GAAP) as indicators of the Company's financial
performance or as alternatives to cash flow from operating
activities (determined in accordance with GAAP) as measures of the
Company's liquidity, nor are they necessarily indicative of
sufficient cash flow to fund all of the Company's needs. The
Company believes that in order to facilitate a clear understanding
of the consolidated historical operating results of the Company,
FFO and AFFO should be examined in conjunction with net income as
presented elsewhere herein.
|
|
|
(2)
|
Diluted weighted
average common shares outstanding for FFO and AFFO are calculated
based on the treasury method, rather than the 2-class method used
to calculate earnings per share.
|
CONTACT: Bill Monroe,
615-771-3052
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SOURCE Community Healthcare Trust Incorporated