Community Healthcare Trust Announces Results for the Three Months Ended December 31, 2021

Rhea-AI Summary

Community Healthcare Trust Incorporated (NYSE: CHCT) reported a net income of $6.1 million, or $0.23 per diluted share, for Q4 2021. Funds from operations (FFO) stood at $0.57, while adjusted funds from operations (AFFO) were $0.61 per diluted share. The company acquired three properties for $9.8 million, 94.1% leased, and has agreements for additional properties totaling approximately $105.7 million, with expected returns between 9.01% and 10.25%. A quarterly dividend of $0.4375 per share was declared, payable on March 1, 2022.

Positive

• Net income of $6.1 million or $0.23 per diluted share.
• FFO at $0.57 and AFFO at $0.61 per diluted share.
• Acquired three properties for $9.8 million, 94.1% leased.
• Expected returns on investments range from 9.01% to 10.25%.
• Declared a quarterly dividend of $0.4375 per share.

Negative

• No assurance of closing on expected acquisitions totaling approximately $105.7 million.

FRANKLIN, Tenn., Feb. 15, 2022 /PRNewswire/ -- Community Healthcare Trust Incorporated (NYSE: CHCT) (the "Company") today announced results for the three months ended December 31, 2021. The Company reported net income for the fourth quarter of approximately $6.1 million, or $0.23 per diluted common share. Funds from operations ("FFO") and adjusted funds from operations ("AFFO") for the three months ended December 31, 2021 totaled $0.57 and $0.61, respectively, per diluted common share. 

Highlights include:

• During the fourth quarter of 2021, the Company acquired three real estate properties for an aggregate purchase price of approximately $9.8 million. Upon acquisition, the properties were 94.1% leased in the aggregate with lease expirations through 2030.
• The Company has three properties under definitive purchase agreements for an expected aggregate purchase price of approximately $11.7 million. The Company's expected aggregate return on these investments is expected to range from approximately 9.01% to 9.36%. The Company expects to close on these properties during the first half of 2022; however, the Company cannot provide assurance as to the timing of when, or whether, these transactions will actually close. The Company expects to fund these acquisitions with cash on hand, proceeds from the Company's ATM Program, or proceeds from the Company's Revolving Credit Facility.
• The Company also has four properties under definitive purchase agreements, to be acquired after completion and occupancy, for an aggregate expected purchase price of approximately $94.0 million. The Company's expected returns on these investments are approximately 10.25%. The Company anticipates closing on these properties from the second quarter of 2022 through the third quarter of 2023; however, the Company cannot provide assurance as to the timing of when, or whether, these transactions will actually close.
• On February 10, 2022, the Company's Board of Directors declared a quarterly common stock dividend in the amount of $0.4375 per share. The dividend is payable on March 1, 2022 to stockholders of record on February 22, 2022.

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, 2021, the Company had investments of approximately $837.1 million in 153 real estate properties (including a portion of one property accounted for as a financing lease). The properties are located in 33 states, totaling approximately 3.4 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

This press release contains statements that are "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", "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 Company's control. 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, the degree and nature of the Company's competition, the ability to consummate acquisitions under contract, effects on global and national markets as well as businesses resulting from the COVID-19 pandemic, 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, 2021 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 release and the Company 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
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars and shares in thousands, except per share amounts)
	December 31, 2021		December 31, 2020
ASSETS
Real estate properties:
Land and land improvements	$                       97,397		$                   83,714
Buildings, improvements, and lease intangibles	736,465		651,398
Personal property	223		247
Total real estate properties	834,085		735,359
Less accumulated depreciation	(133,056)		(102,899)
Total real estate properties, net	701,029		632,460
Cash and cash equivalents	2,351		2,483
Restricted cash	516		409
Other assets, net	50,337		33,050
Total assets	$                     754,233		$                 668,402
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Debt, net	$                     265,625		$                 212,374
Accounts payable and accrued liabilities	7,845		5,743
Other liabilities, net	18,651		20,369
Total liabilities	292,121		238,486
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; 24,983 and 23,888 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively	250		239
Additional paid-in capital	595,624		550,391
Cumulative net income	59,123		36,631
Accumulated other comprehensive loss	(4,980)		(11,846)
Cumulative dividends	(187,905)		(145,499)
Total stockholders' equity	462,112		429,916
Total liabilities and stockholders' equity	$                     754,233		$                 668,402

The Condensed 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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2021 AND 2020
(Amounts in thousands, except per share amounts)
	(Unaudited)
	Three Months Ended December 31,				Twelve Months Ended December 31,
	2021		2020		2021		2020
REVENUES
Rental income	$       22,428		$       19,728		$       87,661		$       73,925
Other operating interest	814		396		2,918		1,759
	23,242		20,124		90,579		75,684
EXPENSES
Property operating	3,535		3,485		15,158		13,614
General and administrative	3,155		2,486		12,113		8,768
Depreciation and amortization	7,825		6,905		30,401		25,378
	14,515		12,876		57,672		47,760
INCOME BEFORE INCOME TAXES AND OTHER ITEMS	8,727		7,248		32,907		27,924
Gain (loss) on sale of real estate	237		—		237		(313)
Interest expense	(2,789)		(2,124)		(10,542)		(8,620)
Deferred income tax expense	(63)		(40)		(167)		(80)
Interest and other income, net	1		156		57		166
NET INCOME	$         6,113		$         5,240		$       22,492		$       19,077
NET INCOME PER COMMON SHARE:
Net income per common share – Basic	$           0.23		$           0.21		$           0.87		$           0.80
Net income per common share – Diluted	$           0.23		$           0.21		$           0.87		$           0.80
WEIGHTED AVERAGE COMMON SHARE OUTSTANDING-BASIC	23,566		22,427		23,263		21,576
WEIGHTED AVERAGE COMMON SHARE OUTSTANDING-DILUTED	23,566		22,427		23,263		21,576

The Condensed 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; Amounts in thousands, except per share amounts)
	Three Months Ended December 31,
	2021		2020
Net income	$                    6,113		$                    5,240
Real estate depreciation and amortization	7,884		6,951
Gain on sale of depreciable real estate	(237)		—
Total adjustments	7,647		6,951
FFO	$                  13,760		$                  12,191
Straight-line rent	(856)		(693)
Stock-based compensation	1,997		1,393
AFFO	$                  14,901		$                  12,891
FFO per Common Share-Diluted	$                      0.57		$                      0.53
AFFO per Common Share-Diluted	$                      0.61		$                      0.56
Weighted Average Common Shares Outstanding-Diluted (2)	24,306		23,068

(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 and FFO per share are operating performance measures 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) a 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:  David H. Dupuy, 615-771-3052

 

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SOURCE Community Healthcare Trust Incorporated

FAQ

What were Community Healthcare Trust's Q4 2021 earnings per share (CHCT)?

The earnings per share for Q4 2021 were $0.23 per diluted common share.

What is the expected return on Community Healthcare Trust's new acquisitions (CHCT)?

The expected return on the new acquisitions ranges from approximately 9.01% to 10.25%.

When will Community Healthcare Trust pay its next dividend (CHCT)?

The next dividend is payable on March 1, 2022, to stockholders of record on February 22, 2022.

What is the total amount of properties Community Healthcare Trust plans to acquire (CHCT)?

The company has agreements for properties totaling approximately $105.7 million.

What were the funds from operations (FFO) for Community Healthcare Trust in Q4 2021 (CHCT)?

The funds from operations were $0.57 per diluted common share for Q4 2021.