Community Healthcare Trust Stock Earnings Reports

Community Healthcare Trust (CHCT) reported Q1 2026 results with modest top-line growth and continued portfolio activity. Total revenue rose 4.8% year‑over‑year to $31.5M and FFO increased 5.8% to $13.4M ($0.49 diluted), while AFFO was $15.4M ($0.56 per diluted share), up ~4% YoY. Leased occupancy ticked down to 89.8% from 90.6% due to lease terminations but management expects occupancy to grow next quarter as leasing activity and renewals progress. Weighted average lease term was stable at ~7.1 years. Operationally, three properties are under redevelopment/renovation (one behavioral health facility received certificate of occupancy and is expected to commence contributing NOI in 2026). CHCT acquired an inpatient rehab facility for $28.5M with a new lease to 2044 and an expected cash yield ~9.3%; it also has four definitive purchase-and-sale agreements for properties (~$99M aggregate) expected to yield 9.1%–9.75%, with two closings anticipated in 2026 and two in 2027. The company completed modest dispositions (one building in Fort Myers in 2026 and another in 2025) and continues capital recycling rather than issuing shares under its ATM. Management expects to fund near-term acquisitions from selected asset sales and revolver availability while keeping leverage modest. They raised the quarterly dividend to $0.48 (annualized $1.92), the 10th consecutive quarterly increase since IPO. Key near-term items to monitor: the potential sale/transfer of operations for six behavioral hospitals (tenant Assurance) to a new operator (timing not certain), progress on redevelopment projects coming online in H2 2026, and interest expense sensitivity in Q2 given hedges expiration and revolver usage.