Community Healthcare Trust Announces Results for the Three Months Ended December 31, 2023
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 theU.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 duringJanuary 2024 with two separate buyers.GenesisCare has met substantially all of its lease payment obligations due to the Company throughFebruary 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 onMarch 1, 2024 to stockholders of record onFebruary 20, 2024 .
About
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
CONSOLIDATED BALANCE SHEETS (Dollars and shares in thousands, except per share amounts) |
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ASSETS |
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Real estate properties: |
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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 |
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943,167 |
Less accumulated depreciation |
(200,810) |
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(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 |
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— |
Other assets, net |
83,876 |
|
86,531 |
Total assets |
$ 945,412 |
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$ 876,425 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Liabilities |
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Debt, net |
$ 403,256 |
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$ 352,997 |
Accounts payable and accrued liabilities |
12,032 |
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11,377 |
Other liabilities, net |
16,868 |
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15,237 |
Total liabilities |
432,156 |
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379,611 |
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Commitments and contingencies |
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Stockholders' Equity |
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Preferred stock, |
— |
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— |
Common stock, |
276 |
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259 |
Additional paid-in capital |
688,156 |
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625,136 |
Cumulative net income |
88,856 |
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81,142 |
Accumulated other comprehensive gain |
16,417 |
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22,667 |
Cumulative dividends |
(280,449) |
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(232,390) |
Total stockholders' equity |
513,256 |
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496,814 |
Total liabilities and stockholders' equity |
$ 945,412 |
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$ 876,425 |
The Consolidated Balance Sheets do not include all of the information and footnotes required by accounting principles generally accepted in |
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE AND TWELVE MONTHS ENDED MONTHS ENDED ( Dollars and shares in thousands, except per share amounts) |
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Three Months Ended
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Twelve Months Ended
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2023 |
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2022 |
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2023 |
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2022 |
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(Unaudited) |
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REVENUES |
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Rental income |
$ 28,100 |
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$ 24,383 |
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$ 108,682 |
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$ 94,103 |
Other operating interest |
1,024 |
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959 |
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4,163 |
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3,576 |
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29,124 |
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25,342 |
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112,845 |
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97,679 |
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EXPENSES |
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Property operating |
5,598 |
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4,156 |
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20,713 |
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16,636 |
General and administrative (1) |
3,728 |
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4,149 |
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27,338 |
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14,837 |
Depreciation and amortization |
10,248 |
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8,317 |
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39,693 |
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32,339 |
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19,574 |
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16,622 |
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87,744 |
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63,812 |
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OTHER INCOME (EXPENSE) |
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Impairment of real estate asset |
— |
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— |
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(102) |
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— |
Interest expense |
(5,019) |
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(3,464) |
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(17,792) |
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(11,873) |
Deferred income tax expense |
— |
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(21) |
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(306) |
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(41) |
Interest and other income, net |
36 |
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3 |
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813 |
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66 |
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(4,983) |
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(3,482) |
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(17,387) |
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(11,848) |
NET INCOME |
$ 4,567 |
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$ 5,238 |
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$ 7,714 |
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$ 22,019 |
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NET INCOME PER COMMON SHARE (1): |
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Net Income per common share - Basic |
$ 0.15 |
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$ 0.19 |
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$ 0.20 |
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$ 0.81 |
Net Income per common share - Diluted |
$ 0.15 |
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$ 0.19 |
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$ 0.20 |
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$ 0.81 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-BASIC |
25,981 |
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23,787 |
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25,202 |
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23,631 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING-DILUTED |
25,981 |
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23,787 |
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25,202 |
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23,631 |
___________ |
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(1) General and administrative expenses for the twelve months ended |
The Consolidated Statements of Income do not include all of the information and footnotes required by accounting principles generally |
RECONCILIATION OF FFO and AFFO (1) (Unaudited; Dollars and shares in thousands, except per share amounts) |
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Three Months Ended |
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2023 |
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2022 |
Net income |
$ 4,567 |
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$ 5,238 |
Real estate depreciation and amortization |
10,347 |
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8,382 |
Total adjustments |
10,347 |
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8,382 |
FFO |
$ 14,914 |
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$ 13,620 |
Straight-line rent |
(872) |
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(854) |
Stock-based compensation |
2,029 |
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2,645 |
AFFO |
$ 16,071 |
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$ 15,411 |
FFO per Common Share-Diluted |
$ 0.57 |
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$ 0.56 |
AFFO per Common Share-Diluted |
$ 0.61 |
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$ 0.63 |
Weighted Average Common Shares Outstanding-Diluted (2) |
26,346 |
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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
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. |
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(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:
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